Fiserv Inc Q4 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Tien-Tsin Huang - JPMorgan - Analyst : I have to ask a question for Mike. Glad to have him on the call, of course. Just I'm curious to hear your response to what surprised you about Fiserv as you did your diligence to join the company? What was different from maybe what you thought looking at it as an investor and of course, as a client and partner? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 05, 2025 / 1:00PM, FI.N - Q4 2024 Fiserv Inc Earnings Call

Question: Darrin Peller - Wolfe Research, LLC - Analyst : Mike, congrats. And it's been a while, but welcome. I guess we'll just start off with Clover. I mean, the sustainability of growth has been outstanding. And so when you look at the trend line into next year, even against enough comps, just remind us of what you expect the more nuanced building blocks that can keep that afloat at that level, which I know it kind of needs to be to meet your targets. And then just thinking about that in the cross-sell, when considering what you have in terms of new direct sales and new international markets, how is that going to contribute? So maybe just once again revisit the build blocks to the sustainability. Thanks guys.

Question: Timothy Chiodo - UBS Equities - Analyst : Great. Thank you, and congratulations to Mike as well. On DoorDash, so big contract and certainly supports the acceleration in Financial Solutions this year, and you mentioned a pipeline of other embedded finance opportunities. So I was hoping that you could talk a little bit about the PayFare acquisition and how that plays into that. I gather that it brings on program management capabilities and previously, Fiserv was working smaller third-party program managers and now you have that in-house. Maybe just talk about what this means for the revenue opportunity, not only with your existing clients but also might help you help you with some of those RFPs, particularly in light of those comments around the pipeline.

Question: Harshita Rawat - Bernstein Institutional Services LLC - Analyst : Congratulations, Mike. Bob, can you talk about January trends? Are you seeing continuation of what you saw in December and the fourth quarter? And then separately, can you also expand upon your comments in Clover GPV growth? It kind of decelerated a little bit. We've seen some acceleration in US volume growth by the network. So if you can maybe unpack the growth for us and comment on US versus international dynamics there. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 05, 2025 / 1:00PM, FI.N - Q4 2024 Fiserv Inc Earnings Call

Question: Dave Koning - Robert W. Baird & Co. Incorporated - Analyst : Great year. And I guess my question is within Financial Solutions, issuer slowed, you talked about that a little bit. I guess, was that because Financial Solutions product revenue was really strong in Q2, Q3, that fall in issuer, and maybe that's why it slowed a little? And then when does that pick up? When does like Verizon, et cetera, target kind of hit in 2025 to reaccelerate that?

Question: Dan Dolev - Mizuho Securities USA, LLC - Analyst : Great results. Great year. Congrats again, Frank. So can we talk strategically a little bit about your Walmart partnership? Like how do you envision this very exciting, using the Now network and FedNow and all these things, to actually maybe change the way people pay? Any early observations from your conversations there would be really helpful. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 05, 2025 / 1:00PM, FI.N - Q4 2024 Fiserv Inc Earnings Call

Question: Jason Kupferberg - BofA Global Research - Analyst : Congrats, Mike. Congrats, Frank. I wanted to ask on Clover. Just, Bob, you mentioned that spread between the revenue volume growth. It did widen out a little bit. And I know you talked about the VAS penetration, the pricing and the hardware sales. I was hoping you could maybe break down the contribution to the spread among those three and then any thoughts on how that spread may evolve in 2025. Thank you.

Question: Ramsey El-Assal - Barclays Capital Inc. - Analyst : And nice to meet you, Mike, over the phone. I wanted to ask about CashFlow Central. Could you give us your latest thoughts, Frank or Bob, on when it will become a material contributor to the P&L? Will it gain enough momentum to be felt in 2025? And also just help us understand the sort of economic model there? Is it bps on volume, fixed fee, subscription fee? How do you actually price the thing? Thank you.