Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from Debt [USD, Millions]

Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

c52c1388a980ea6e1e8fa1c7d4533b550c2c06f12dfe7a621cbd53fa9793c762

Fiserv, Inc. is a leading global provider of payments and financial services technology solutions, catering to a diverse clientele that includes merchants, banks, credit unions, other financial institutions, and corporate clients worldwide **[0000798354-24-000037_fi-20231231.htm:4]** **[0000798354-24-000037_fi-20231231.htm:52]**. The company operates through two main segments: Merchant Solutions and Financial Solutions, offering a range of commerce-enabling products and services **[0001193125-24-077703_d817941d8k.htm:2]** **[0000798354-24-000190_fisv-20240930.htm:37]** **[0000798354-24-000156_fisv-20240630.htm:35]**. Fiserv is committed to innovation and integration, delivering superior value through its technology and services **[0000798354-24-000190_fisv-20240930.htm:37]** **[0000798354-24-000156_fisv-20240630.htm:35]**.

1. **Financial Solutions** - Provides products and services to financial institutions, corporate, and public sector clients, facilitating the processing of customer loan and deposit accounts, digital payments, and card transactions. Includes services like debit and credit card processing, digital banking, financial and risk management, and check processing **[0001193125-24-077703_d817941d8k.htm:2]** **[0000798354-24-000190_fisv-20240930.htm:37]** **[0000798354-24-000156_fisv-20240630.htm:35]**.
2. **Merchant Solutions** - Offers commerce-enabling products and services such as merchant acquiring, digital commerce services, mobile payment services, security and fraud protection solutions, and pay-by-bank solutions. 
   - **Clover®** - A point-of-sale integrated commerce operating system for small businesses.
   - **CaratSM** - An integrated commerce operating system for enterprise clients **[0001193125-24-077703_d817941d8k.htm:2]** **[0000798354-24-000190_fisv-20240930.htm:37]** **[0000798354-24-000156_fisv-20240630.htm:35]**.

bf3f9dc1fe30a74c174de892313dcd082c230e042c150e73e3b94436a5f60623

Aggregate Merchant Credit Loss Expense ($ million)

Merchant Collateral Available ($ million)

Aggregate Merchant Credit Loss Allowance ($ million)

Clover Capital Cash Advances, Net ($ million)

Future Credit Card Receivables Purchased ($ million)

Settlement Advance Cash Payments ($ million)

Subscriber Funds Invested in Short-term Investments ($ million)

d788ebf0255e97c594a61865559743604addb5a9ddc7159d44a7dae4cce5619d

ece3332f51f5dea5d2daff117205a62901a4542e3641c6fffb682106536b86a8

422381cbbf10ee2bab3cad2e7e7589459c66a658a9542056a2987195546fbf43

d621db619617522172139a269b8eb6962df49fb91c1c06258ec37c04b53af908

1. Regarding the SMB bundle, can you elaborate on the specific challenges of integrating products across both the Merchant and Financial Solutions segments, and how you plan to ensure its successful contribution to growth next year?  **[FI_3403173_3]** **[FI_3403173_2]** **[FI_3403173_17]** 

2. As you expand Clover into Latin America and Australia, what risks do you anticipate in these new markets, and what strategies are in place to mitigate potential adoption hurdles?  **[FI_3403173_1]** **[FI_3403173_16]** 

3. With the approval of your merchant acquirer limited purpose bank charter in Georgia, how might this change affect your relationships with existing bank partners, and are there any regulatory concerns that could impact this initiative?  **[FI_3403173_8]** 

4. Given the raised guidance for organic revenue growth and adjusted earnings per share, what key factors are driving this optimism, and what potential headwinds could jeopardize achieving these targets?  **[FI_3403173_3]** 

5. Can you provide more details on the partnership with DoorDash, specifically how this embedded finance application will impact your financial performance, considering the challenges associated with long implementation cycles in such initiatives?  **[FI_3403173_1]** 

42d54549da91593cf2f720bae5795dda917c971c39b05c09a708884e3faab7ab

- Other large, integrated providers of financial services technology and payment systems  **[0000798354-24-000037_fi-20231231.htm:13]** 
- Data processing affiliates of large companies  **[0000798354-24-000037_fi-20231231.htm:13]** 
- Processing centers owned or operated as user cooperatives  **[0000798354-24-000037_fi-20231231.htm:13]** 
- Financial institutions  **[0000798354-24-000037_fi-20231231.htm:13]** 
- Merchant acquirers  **[0000798354-24-000037_fi-20231231.htm:13]** 
- Independent Sales Organizations (ISOs)  **[0000798354-24-000037_fi-20231231.htm:13]** 
- Independent Software Vendors (ISVs)  **[0000798354-24-000037_fi-20231231.htm:13]** 
- Payments companies  **[0000798354-24-000037_fi-20231231.htm:13]** 
- Payment network operators  **[0000798354-24-000037_fi-20231231.htm:13]** 
- Global and local IT product and services companies  **[0000798354-24-000037_fi-20231231.htm:13]** 
- Payment service providers and processors  **[0000798354-24-000037_fi-20231231.htm:13]** 
- Large, diversified software and service companies  **[0000798354-24-000037_fi-20231231.htm:21]** 
- Vendors that offer similar transaction processing products and services to financial institutions  **[0000798354-24-000037_fi-20231231.htm:21]** 
- Large technology, media, and other emerging financial technology providers  **[0000798354-24-000037_fi-20231231.htm:21]** 

88814970865083857d6dd282e8c86580610bf66b1d0ddf5deac2dd2260c0a282

### Q3 2024 Earnings Call
- **Issued Period:** Q3 2024
- **Guided Period:** FY 2024
- **Guidance:**
  1. **Adjusted Earnings Per Share (EPS):** Raised to **$8.73 to $8.80**, representing **16% to 17%** growth  **[FI_3403173_7]** .
  2. **Organic Revenue Growth:** Raised to **16% to 17%**  **[FI_3403173_7]** .
  3. **Adjusted Margin Expansion:** Increased to at least **150 basis points**  **[FI_3403173_7]** .
  4. **Free Cash Flow:** Updated to above **$4.7 billion**  **[FI_3403173_7]** .
  5. **Foreign Currency Exchange Impact:** Forecasted impact remains at **8.5%**  **[FI_3403173_7]** .
  6. **Argentina Impact:** Assumes a **4-point** benefit from excess inflation and interest, with **9 points** for Merchant Solutions  **[FI_3403173_7]** .
  7. **Medium-Term Outlook:** Reiterated **9% to 12%** adjusted revenue growth and **15% to 17%** adjusted EPS growth  **[FI_3403173_8]** .

### Q2 2024 Earnings Call
- **Issued Period:** Q2 2024
- **Guided Period:** FY 2024
- **Guidance:**
  1. **Adjusted Earnings Per Share (EPS):** Raised to **$8.65 to $8.80**, representing **15% to 17%** growth  **[FI_3394096_7]** .
  2. **Organic Revenue Growth:** Maintained at **15% to 17%**  **[FI_3394096_7]** .
  3. **Adjusted Operating Margin Expansion:** Raised to more than **135 basis points**  **[FI_3394096_7]** .
  4. **Free Cash Flow:** Adjusted to **$4.7 billion**  **[FI_3394096_7]** .
  5. **Transitory Benefit from Argentina:** Assumed **4-point** benefit  **[FI_3394096_7]** .
  6. **Normalized Growth:** Expected to be **11% to 13%** excluding Argentina's benefit  **[FI_3394096_7]** .

### Q1 2024 Earnings Call
- **Issued Period:** Q1 2024
- **Guided Period:** FY 2024
- **Guidance:**
  1. **Organic Revenue Growth:** Expected to be **15% to 17%**  **[FI_3380242_6]** .
  2. **Adjusted Operating Margin Expansion:** Anticipated to be more than **125 basis points**  **[FI_3380242_6]** .
  3. **Adjusted Earnings Per Share (EPS):** Raised to **$8.60 to $8.75**, representing **14% to 16%** growth  **[FI_3380242_6]** .
  4. **Free Cash Flow:** Expected to be **$4.5 billion**  **[FI_3380242_4]** .
  5. **Debt to Adjusted EBITDA Ratio:** Slightly increased to **2.8x**  **[FI_3380242_6]** .

### Q4 2023 Earnings Call
- **Issued Period:** Q4 2023
- **Guided Period:** FY 2024
- **Guidance:**
  1. **Organic Revenue Growth:** Expected to be **15% to 17%**, including a 7-point growth from Argentina  **[FI_3371977_3]** .
  2. **Adjusted Operating Margin Expansion:** Anticipated to be more than **100 basis points**  **[FI_3371977_7]** .
  3. **Adjusted Earnings Per Share (EPS):** Expected to grow **14% to 16%**, reaching **$8.55 to $8.70**  **[FI_3371977_7]** .
  4. **Merchant Solutions Organic Revenue Growth:** Expected to be **25% to 28%**, including 14 points from Argentina  **[FI_3371977_7]** .
  5. **Financial Solutions Organic Revenue Growth:** Expected to be **5% to 7%**  **[FI_3371977_7]** .
  6. **Free Cash Flow:** Estimated to be approximately **$4.5 billion**  **[FI_3371977_7]** .

511e84e61dcb73718703ea2f3edc1d44ec4554e64b7df69ffa17c9fad04df39c

Domestic Revenue

International Revenue

- EMEA, LATAM, APAC

Total Revenue

4835d7177fdd906d6ee650c4e5d774e1075465f1816f49631ccfce3b42da21fc

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

| Name              | Position                                      | Start Date | Short Bio                                                                                                                                                                                                 |
|-------------------|-----------------------------------------------|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Frank J. Bisignano | Chairman, President, and Chief Executive Officer | 2019       | Frank J. Bisignano has been serving as the **Chairman of the Board since 2022**, **Chief Executive Officer since 2020**, and **President since 2019** at Fiserv, Inc. He joined Fiserv as part of the acquisition of First Data Corporation in 2019  **[0000798354-24-000037_fi-20231231.htm:46]** **[0001140361-24-017619_ny20017254x1_def14a.htm:9]** . |
| Guy Chiarello     | Chief Operating Officer                       | 2021       | Guy Chiarello has served as the **Chief Operating Officer** of Fiserv since **2021**. He previously held the position of Chief Administrative Officer from 2019 to 2021  **[0000798354-24-000037_fi-20231231.htm:46]** .                                                                      |
| John Gibbons      | Head of Financial Institutions Group          | 2023       | John Gibbons has served as the **Head of the Financial Institutions Group** at Fiserv since **October 2023**. He was the Co-Head of the Financial Institutions Group starting in March 2023  **[0000798354-24-000037_fi-20231231.htm:46]** .                                                |
| Robert W. Hau     | Chief Financial Officer                       | 2016       | Robert W. Hau has served as the **Chief Financial Officer** of Fiserv, Inc. since **2016**  **[0000798354-24-000037_fi-20231231.htm:46]** .                                                                                                                                                  |
| Jennifer LaClair  | Head of Global Business Solutions             | 2024       | Jennifer LaClair has served as the **Head of Global Business Solutions** at Fiserv since **January 2024**. Prior to this role, she was the Chief Revenue Officer from **July 2023**  **[0000798354-24-000037_fi-20231231.htm:47]** **[0000798354-24-000037_fi-20231231.htm:46]** .                                                      |
| Adam L. Rosman    | Chief Administrative Officer and Chief Legal Officer | 2021       | Adam L. Rosman has served as the **Chief Administrative Officer and Chief Legal Officer** at Fiserv since **2021**  **[0000798354-24-000037_fi-20231231.htm:47]** **[0000798354-23-000004_fisv-20221231.htm:45]** .                                                                                                                      |
| Ajei S. Gopal     | Member of the Board of Directors              | 2024       | Ajei S. Gopal has been serving as a member of the Board of Directors at Fiserv, Inc. since **2024**. He is also the President and Chief Executive Officer of ANSYS, Inc.  **[0001140361-24-017619_ny20017254x1_def14a.htm:11]** **[0001140361-24-017619_ny20017254x1_def14a.htm:3]** .                                                                 |

76b204babedb3d1084ba4025f14393dd6557f093f18a5992c3c96ca210e33760

| Program Details          | Program 1            |
|--------------------------|----------------------|
| Approval Date            | February 22, 2023  **[0000798354-24-000190_fisv-20240930.htm:31]** **[0000798354-24-000190_fisv-20240930.htm:50]**  |
| End Date/Duration        | No specified expiration date  **[0000798354-24-000190_fisv-20240930.htm:31]** **[0000798354-24-000190_fisv-20240930.htm:50]**  |
| Total additional amount  | 75.0 million shares  **[0000798354-24-000190_fisv-20240930.htm:31]** **[0000798354-24-000190_fisv-20240930.htm:50]**  |
| Remaining authorization amount | 24.2 million shares (as of 2024-09-30)  **[0000798354-24-000190_fisv-20240930.htm:50]**  |
| Details                  | Part of capital allocation strategy to maintain a strong balance sheet, return cash to shareholders, and pursue acquisitions  **[0000798354-24-000156_fisv-20240630.htm:46]** **[FI_3345329_18]**  |

332cef509fdc774efa5af90db1f7a56714e97e1dc9b10341d80cab824fb64bd4

Acceptance

Fintech

Payments

Corporate and Other

Merchant Segment

- Small Business

- Enterprise

- Processing

Financial Segment

- Digital Payments

- Issuing

- Banking

2b875bed1357263fc081ca0eca8b0cb1f56f6dc96e09cae9390e4a4c16bf9b32

**Annual guidance for FY 2024:**
- **Adjusted EPS**: $8.73 to $8.80  **[FI_3403173_7]**  (raised from $8.65 to $8.80  **[FI_3394096_7]** )  
- **Organic Revenue Growth**: 16% to 17%  **[FI_3403173_7]**  (raised from 15% to 17%  **[FI_3394096_7]** )  
- **Adjusted Margin Expansion**: at least 150 basis points  **[FI_3403173_7]**  (raised from more than 135 basis points  **[FI_3394096_7]** )  
- **Free Cash Flow**: above $4.7 billion  **[FI_3403173_7]**  (raised from $4.7 billion  **[FI_3394096_7]** )  
- **Argentina Impact**: 4-point benefit, with 9 points for Merchant Solutions  **[FI_3403173_7]**  (no change from prior guidance  **[FI_3394096_7]** )  
- **Foreign Currency Exchange Impact**: 8.5%  **[FI_3403173_7]**  (no prior guidance)  
- **Medium-Term Outlook**: 9% to 12% adjusted revenue growth and 15% to 17% adjusted EPS growth  **[FI_3403173_8]**  (no prior guidance)  

91dc60d4d6a18aae86249125333bfd741f0aa49e04775b3bf1edf52b86ea80b0

| Name                   | Start Date | End Date | Reason for Change |
|------------------------|------------|----------|-------------------|
| Deloitte & Touche LLP | 1985  **[0000798354-24-000037_fi-20231231.htm:141]**  | Present  | Current auditor   |

596633bfc66a8e4099af12a664ed05ab688c4c8aca51421530420aea116c3c12

206788a1d272123b0066ad58da0874989c6fbeaf5ce6c991210699e9e3a74cfa

- Total Revenue: $5,215 million (**+7% YoY**)  **[0000798354-24-000190_fisv-20240930.htm:33]** **[0000798354-24-000190_fisv-20240930.htm:2]** **[0000798354-23-000018_fisv-20230930.htm:2]**   
- Operating Income (EBIT): $1,602 million (+7% YoY)  **[0000798354-24-000190_fisv-20240930.htm:2]** **[0000798354-23-000018_fisv-20230930.htm:2]**   
- Net Income: **$564 million (-39% YoY)**  **[0000798354-24-000190_fisv-20240930.htm:2]** **[0000798354-23-000018_fisv-20230930.htm:2]**   
- EPS (Diluted): $0.98 (-37% YoY)  **[0000798354-24-000190_fisv-20240930.htm:2]** **[0000798354-23-000018_fisv-20230930.htm:2]**   
- Corporate & Other: $334 million (+25% YoY)  **[0000798354-24-000190_fisv-20240930.htm:14]** **[0000798354-23-000018_fisv-20230930.htm:32]**   

1973caa278032479d2b8713dfbf677edaeec26249ae35eef6cb81a1b95ce7ade

1. **Margin Outlook**  
   **Q:** What are the sources of upside in the raised margin outlook?  
   **A:** Fiserv raised its margin outlook for the second quarter in a row to greater than **135 basis points**, up from the original guidance of greater than 100 basis points.  **[FI_3394096_11]**  This improvement is driven by increased scale and volume, with additional revenue dropping through at better-than-company-average rates, and ongoing productivity enhancements across the organization.  **[FI_3394096_11]** 

2. **Maintaining Guidance Amid Slowdown**  
   **Q:** How are you maintaining guidance despite industry softness?  
   **A:** Despite some slowing, Fiserv is maintaining its full-year organic growth guidance of **15% to 17%**, with the Merchant segment expected to grow **25% to 28%**.  **[FI_3394096_16]**  This confidence is due to strong performance in Clover sales, value-added solutions, and uptake of Commerce Hub among large enterprise clients.  **[FI_3394096_16]**  Increased anticipation activity in Latin America also contributes to their growth.  **[FI_3394096_16]** 

3. **Small Business and Enterprise Growth**  
   **Q:** Can you discuss the slowdown in small business and enterprise volumes?  
   **A:** Fiserv observed a slight slowdown in July, but it remains within expectations.  **[FI_3394096_12]**  April and May were in line, and they are maintaining their full-year organic growth rate of **15% to 17%**.  **[FI_3394096_12]**  They see growth opportunities globally and believe their diversified portfolio positions them well.  **[FI_3394096_12]** 

4. **Financial Solutions Segment Outlook**  
   **Q:** What drives growth in the Financial Solutions segment into 2025 and 2026?  
   **A:** The Financial Solutions segment is expected to accelerate from **5% to 7%** growth this year to **6% to 8%** in 2025 and 2026.  **[FI_3394096_15]**  Growth drivers include the launch of Cash Flow Central, expansion of their digital banking solution XD, Finxact, and large client wins like Verizon, Target, and Desjardins going live in 2025 and beyond.  **[FI_3394096_15]** 

5. **Clover Growth Strategy**  
   **Q:** How are you advancing Clover growth and maintaining competitiveness?  
   **A:** Fiserv focuses on front-book opportunities for Clover, including international expansion, ISV channels, and verticals like services and restaurants.  **[FI_3394096_17]**  Clover outperforms in attrition rates across the portfolio, and they're investing in value-added services and vertical expertise.  **[FI_3394096_17]**  They anticipate the Merchant business reaching **$10 to $12 billion** and feel on track with this growth.  **[FI_3394096_17]** 

6. **M&A Opportunities**  
   **Q:** Are lower public valuations influencing your M&A strategy toward public peers?  
   **A:** Fiserv doesn't distinguish between public and private companies in its M&A approach.  **[FI_3394096_18]**  They focus on value and long-term value creation, evaluating opportunities that align with their capital deployment philosophy and benefit clients and shareholders.  **[FI_3394096_18]** 

7. **Banking Subunit Growth**  
   **Q:** Is the strong growth in the banking subunit sustainable?  
   **A:** Fiserv sees strong demand from financial institutions for their services beyond merchant and Cash Flow Central.  **[FI_3394096_14]**  Products like XD are winning in the marketplace, and fintech partnerships are growing.  **[FI_3394096_14]**  Enhanced service differentiation and relationship management bolster confidence in sustaining growth.  **[FI_3394096_14]** 

8. **Cash Flow Central Monetization**  
   **Q:** How will Cash Flow Central generate revenue?  
   **A:** Cash Flow Central generates revenue through subscription fees and transaction fees, benefiting both banks and Fiserv.  **[FI_3394096_13]**  It's part of an SMB bundle including Clover and XD, creating a long-term growth engine.  **[FI_3394096_13]**  They've signed six large banks before going live and see strong demand.  **[FI_3394096_13]** 

9. **International Expansion Plans**  
   **Q:** What are your expectations for expansion in Brazil and Mexico?  
   **A:** Fiserv will launch pilots in Brazil and Mexico in August, treating them as "friends and family" phases, with full ramp-up expected in 2025.  **[FI_3394096_9]**  They have strong growth projections for these markets and expect to replicate their prior success.  **[FI_3394096_9]**  Australia is also set for a similar launch in September.  **[FI_3394096_9]** 

d22e37393afdf1820f27563692ce0b4385409e63c622894491563934552e3c68

Portion of total revenue decrease attributed to foreign currency exchange rate fluctuations (percentage)

Portion of Merchant segment revenue growth contributed by Small Business (percentage)

Portion of Merchant segment revenue growth contributed by Enterprise (percentage)

Portion of Financial segment revenue growth contributed by Digital Payments (percentage)

Portion of Financial segment revenue growth contributed by Issuing (percentage)

Portion of Financial segment revenue growth contributed by Banking (percentage)

64b31c856b807c86ffb820e1f3777cef2323117b239018e3a8c7064a9516bf68

- The North American merchant business is experiencing only **high single-digit growth**, which is slower compared to international regions.  **[FI_3371977_21]**
- There is a potential risk of **mean reversion** in the spread between revenue and volume growth, as the company acknowledges that revenue growth may not consistently outpace volume growth.  **[FI_3371977_12]**
- The company does not expect to achieve **30% revenue growth** in Clover every quarter, indicating that the recent acceleration may not be sustainable.  **[FI_3371977_11]**

82553293a4ff5bd258bb7a1baf23f24bb38717ea0fee9a80af1dd49553684bb2

1. **Revenue Guidance Increase Due to Argentina Inflation**  
   **Q:** Why did you raise your organic revenue growth guidance for 2024?  
   **A:** The company increased its organic revenue growth guidance from **11–13%** to **15–17%**, primarily due to higher-than-normal inflation and interest in Argentina, which now contribute about **7 points** to total company growth, up from **3 points** previously. This excess inflation also leads to a higher currency variation or FX headwind, increasing about **4 points** from November. Excluding the Argentina impact, underlying organic growth remains consistent with prior expectations.  **[FI_3371977_10]** 

2. **Clover Revenue Growth Expectations**  
   **Q:** Do you expect continued acceleration in Clover's revenue growth in 2024?  
   **A:** Clover's revenue growth accelerated to **30%** in Q4. While we don't expect to achieve 30% every quarter, we feel good about the overall trajectory towards our goals of **$3.5 billion** for Clover in 2025 and **$4.5 billion** in 2026. Factors driving this growth include international expansion, such as the Brazil rollout in April, and increased penetration of value-added services, with penetration rates up to **19%** this quarter.  **[FI_3371977_11]** 

3. **Revenue Growing Faster Than Volume**  
   **Q:** Will revenue continue to grow faster than transaction volume in the merchant segment?  
   **A:** Yes, we expect revenue to continue outpacing volume growth as we sell more software and value-added services to merchants. This results in higher revenue per transaction. The penetration of value-added services reached **19%** in the quarter, up **3 points** from a year ago, on track towards **27%** by 2026. While the spread between revenue and volume may fluctuate, we see ongoing opportunities to sell additional capabilities.  **[FI_3371977_12]** 

4. **FinTech Segment Dynamics and Revenue Impact**  
   **Q:** Is the shift from license to ASP models in FinTech a broader trend impacting revenues?  
   **A:** Some clients are choosing ASP contracts over traditional license deals, spreading revenue over time rather than recognizing it upfront. While this affects the timing of revenue recognition, it represents better economic transactions for us. We achieved **6%** organic growth in our combined bank and credit union segments in 2023 and expect **5–7%** growth in 2024, accelerating to **6–8%** beyond 2025. We remain confident in our growth outlook for the segment.  **[FI_3371977_14]** **[FI_3371977_19]** 

5. **Value-Added Services Growth and M&A Potential**  
   **Q:** What's driving the 40% growth in value-added services, and are there M&A opportunities?  
   **A:** The significant growth in value-added services is largely driven by software, which constitutes the majority of this growth. We're focused on building out more verticals like retail and services and enhancing our software functionality. While we feel good about our current assets, we're always looking for opportunities to invest and add functionality, including potential tuck-in acquisitions.  **[FI_3371977_15]** **[FI_3371977_17]** 

6. **Regulation II Opportunities for Star and Accel**  
   **Q:** How significant is the opportunity from Regulation II for Star and Accel networks?  
   **A:** Regulation II presents a meaningful opportunity for our debit networks, Star and Accel. We've secured nearly **20 wins** and are competing effectively in the market. While competition is strong, we see more opportunities than before and feel good about the potential benefits from Regulation II as it becomes a reality.  **[FI_3371977_18]** 

7. **Applying for Bank Charter in Georgia**  
   **Q:** Why did Fiserv apply for a bank charter in Georgia, and what are the benefits?  
   **A:** We applied for a specific-purpose bank charter to enable sponsorship of merchant acquiring, as historically required by Visa and MasterCard rules. This allows us to sponsor our own merchant acquiring in certain instances, giving us greater control over outcomes. It's not intended to compete with our banking partners but to support smaller banks lacking sponsorship capabilities.  **[FI_3371977_20]** 

8. **Merchant Growth in North America and International**  
   **Q:** Do both North America and international merchant businesses grow equally?  
   **A:** Our merchant business is experiencing good growth across all regions. International regions like Europe, Latin America, and APAC are growing nicely, with international growth rates higher than North America's high single-digit growth. This is due to the opportunity to add merchants and sell more services in these regions.  **[FI_3371977_21]** 

9. **Foreign Exchange Losses and 2024 Expectations**  
   **Q:** Will you adjust out FX losses in 2024 as you did in Q4?  
   **A:** In 2023, we adjusted out a one-time significant FX impact from a **50%** devaluation in Argentina on December 12. This adjustment was only for the revaluation of the balance sheet due to hyperinflationary accounting rules. We don't anticipate similar adjustments in 2024 unless there are other significant devaluations. We expect to manage ongoing FX impacts within our normal operations.  **[FI_3371977_22]** 

10. **Outlook for New Deal Activity in 2024**  
    **Q:** Should we expect significant new deals or more cross-selling in 2024?  
    **A:** We anticipate both large new deals and cross-selling opportunities. Our pipeline includes new wins and expanding relationships with existing clients. For example, the U.S. Bank deal for Cash Flow Central expands on our existing partnership. We continue to roll out new products and help our clients deliver better technology to their customers.  **[FI_3371977_13]** 

29b207ebc742aca3f2062e8de6a8fc3f83f48e890d003137da33573a12943d1b

f070fe47862d4d2839f125f9b911de6f0da3178d1eff77a8359a70e828326562

1. **Clover Revenue Growth and Path to $4.5B Goal**  
   **Q:** Can Clover revenue growth sustain in high 20s to low 30s?  
   **A:** Management is confident that Clover's revenue growth can sustain in the **high 20% to low 30% range**, emphasizing focus on new products, new markets like Brazil and Argentina, increasing the number of merchants, and delivering more products to merchants.  **[FI_3380242_8]**  To achieve the **$4.5 billion** goal by 2026, they aim for a **28% Clover revenue growth**, with value-added services being a significant contributor.  **[FI_3380242_12]** 

2. **Operating Margin Increase and Outlook**  
   **Q:** What drove the 25 bps operating margin increase?  
   **A:** The **25 basis points** operating margin improvement is driven by continued volume leverage, strong growth, and productivity initiatives.  **[FI_3380242_9]**  The termination fee and processing impacts were relatively small.  **[FI_3380242_9]**  Management expects ongoing benefits from investments in technology and productivity, including the use of AI.  **[FI_3380242_9]** 

3. **M&A Appetite and Market Opportunities**  
   **Q:** What's your M&A appetite given market opportunities?  
   **A:** Management has a strong appetite for acquisitions but is being highly selective to ensure deals fit within their strategy and provide value to shareholders.  **[FI_3380242_15]**  They are always engaged in exploring opportunities but emphasize prudence and discipline in their approach.  **[FI_3380242_15]** 

4. **SMB Growth Excluding Argentina and Clover**  
   **Q:** How is non-Argentina non-Clover SMB growth?  
   **A:** The non-Clover SMB business is growing well.  **[FI_3380242_11]**  While Argentina had a significant impact on organic growth, management continues to see opportunities across the entire SMB business, not just from Clover or Argentina.  **[FI_3380242_11]** 

5. **Impact of Reg II and Digital Growth in Financial Segment**  
   **Q:** Is there more benefit from Reg II ahead?  
   **A:** Management believes there is still more opportunity from **Reg II** ahead.  **[FI_3380242_10]**  They have seen a good uptick in their network business and continued progress in their debit business, which may accelerate growth in that segment.  **[FI_3380242_10]** 

6. **Government Vertical Growth and Strategy**  
   **Q:** How are you approaching the government market?  
   **A:** The government segment is a significant growth area, representing a **$500 million** category.  **[FI_3380242_17]**  They have a dedicated team covering government clients, and their offerings span various products, including merchant acquiring and core financial services.  **[FI_3380242_17]** 

7. **Clover's Competitive Positioning and Market Strategy**  
   **Q:** How are you improving Clover's market positioning?  
   **A:** Clover is experiencing **30% growth** and continues to expand across the SMB market.  **[FI_3380242_18]**  Management is focused on completing vertical integrations, such as in the restaurant sector, and sees great demand outside the U.S., aiming to distribute through new channels like ISVs.  **[FI_3380242_18]** 

8. **Total Merchant Volume Growth and April Performance**  
   **Q:** Can you share total segment volume and April trends?  
   **A:** In Q1, small business volume grew **8%**, and enterprise transactions grew **12%**.  **[FI_3380242_13]**  In April, they observed a small uptick in merchant performance compared to Q1, particularly in nondiscretionary spending categories.  **[FI_3380242_13]** 

9. **Opportunity for Other Operating Systems Beyond Clover**  
   **Q:** What's the opportunity for platforms like Carat and DNA?  
   **A:** While specific targets haven't been articulated, these platforms are embedded in growth expectations.  **[FI_3380242_16]**  Management emphasizes their value-added services across different products, contributing to their overall economics and growth rates.  **[FI_3380242_16]** 

10. **PayEasy Conversion to Clover and Future Plans**  
    **Q:** Can you discuss the PayEasy conversion to Clover?  
    **A:** The PayEasy processing system was retired and migrated to Clover and CommerceHub.  **[FI_3380242_14]**  This multi-year project allowed them to build out CommerceHub and deliver value-added services, with the migration now completed.  **[FI_3380242_14]** 

2e76efe91c8434b84098095480864d5dd44e30085e97215399f08460a0780374

- **Strong Financial Performance:** Fiserv delivered **adjusted earnings per share of $2.30, up 17%**, with **organic revenue growth of 15%** and **free cash flow of $1.9 billion** in the quarter  **[FI_3403173_1]** .
- **Strategic Partnerships and Expansions:** The company announced a comprehensive embedded finance application with **DoorDash**, enabling a full range of financial services for delivery contractors  **[FI_3403173_1]** . Fiserv also completed a proof of concept with **Walmart** for real-time pay by bank transactions over their proprietary NOW Network  **[FI_3403173_1]** .
- **Innovative Product Offerings Driving Future Growth:** Fiserv showcased its **SMB bundle**, integrating products across both Merchant and Financial Solutions segments, expected to start contributing to growth next year  **[FI_3403173_3]** . Additionally, **Clover revenue grew 28%**, with value-added services penetration reaching **21%**  **[FI_3403173_1]** .

26cefe1e4d59872249bce37d33081c796d5526f60c4d81f84a4d548a7409a711

| Year | Amount Due (in millions) | Debt Type                          | Interest Rate (%) | % of Total Debt |
|----------|------------------------------|----------------------------------------|------------------------|---------------------|
| 2024     | 1,200                        | Short-term and current maturities      | N/A                    | 4.7% = (1,200 / 25,285) * 100 **[0000798354-24-000190_fisv-20240930.htm:22]** **[0000798354-24-000190_fisv-20240930.htm:52]** |
| 2025     | 900                          | 3.850% Senior Notes                   | 3.850                 | 3.6% = (900 / 25,285) * 100 **[0000798354-24-000190_fisv-20240930.htm:22]** |
| 2025     | 704                          | 2.250% Senior Notes (GBP-denominated) | 2.250                 | 2.8% = (704 / 25,285) * 100 **[0000798354-24-000190_fisv-20240930.htm:22]** |
| 2026     | 2,000                        | 3.200% Senior Notes                   | 3.200                 | 7.9% = (2,000 / 25,285) * 100 **[0000798354-24-000190_fisv-20240930.htm:22]** |
| 2027     | 750                          | 5.150% Senior Notes                   | 5.150                 | 3.0% = (750 / 25,285) * 100 **[0000798354-24-000190_fisv-20240930.htm:22]** |
| 2027     | 1,000                        | 2.250% Senior Notes                   | 2.250                 | 4.0% = (1,000 / 25,285) * 100 **[0000798354-24-000190_fisv-20240930.htm:22]** |
| 2027     | 559                          | 1.125% Senior Notes (EUR-denominated) | 1.125                 | 2.2% = (559 / 25,285) * 100 **[0000798354-24-000190_fisv-20240930.htm:22]** |
| 2028     | 900                          | 5.450% Senior Notes                   | 5.450                 | 3.6% = (900 / 25,285) * 100 **[0000798354-24-000190_fisv-20240930.htm:22]** |
| 2028     | 700                          | 5.375% Senior Notes                   | 5.375                 | 2.8% = (700 / 25,285) * 100 **[0000798354-24-000190_fisv-20240930.htm:22]** |
| 2028     | 1,000                        | 4.200% Senior Notes                   | 4.200                 | 4.0% = (1,000 / 25,285) * 100 **[0000798354-24-000190_fisv-20240930.htm:22]** |
| 2029     | 3,000                        | 3.500% Senior Notes                   | 3.500                 | 11.9% = (3,000 / 25,285) * 100 **[0000798354-24-000190_fisv-20240930.htm:22]** |
| 2030     | 850                          | 4.750% Senior Notes                   | 4.750                 | 3.4% = (850 / 25,285) * 100 **[0000798354-24-000190_fisv-20240930.htm:22]** |
| 2030     | 1,000                        | 2.650% Senior Notes                   | 2.650                 | 4.0% = (1,000 / 25,285) * 100 **[0000798354-24-000190_fisv-20240930.htm:22]** |
| 2030     | 559                          | 1.625% Senior Notes (EUR-denominated) | 1.625                 | 2.2% = (559 / 25,285) * 100 **[0000798354-24-000190_fisv-20240930.htm:22]** |
| 2031     | 500                          | 5.350% Senior Notes                   | 5.350                 | 2.0% = (500 / 25,285) * 100 **[0000798354-24-000190_fisv-20240930.htm:22]** |
| 2031     | 894                          | 4.500% Senior Notes (EUR-denominated) | 4.500                 | 3.5% = (894 / 25,285) * 100 **[0000798354-24-000190_fisv-20240930.htm:22]** |
| 2031     | 704                          | 3.000% Senior Notes (GBP-denominated) | 3.000                 | 2.8% = (704 / 25,285) * 100 **[0000798354-24-000190_fisv-20240930.htm:22]** |
| 2033     | 900                          | 5.600% Senior Notes                   | 5.600                 | 3.6% = (900 / 25,285) * 100 **[0000798354-24-000190_fisv-20240930.htm:22]** |
| 2033     | 1,300                        | 5.625% Senior Notes                   | 5.625                 | 5.1% = (1,300 / 25,285) * 100 **[0000798354-24-000190_fisv-20240930.htm:22]** |
| 2034     | 750                          | 5.450% Senior Notes                   | 5.450                 | 3.0% = (750 / 25,285) * 100 **[0000798354-24-000190_fisv-20240930.htm:22]** |
| 2034     | 900                          | 5.150% Senior Notes                   | 5.150                 | 3.6% = (900 / 25,285) * 100 **[0000798354-24-000190_fisv-20240930.htm:22]** |
| 2049     | 2,000                        | 4.400% Senior Notes                   | 4.400                 | 7.9% = (2,000 / 25,285) * 100 **[0000798354-24-000190_fisv-20240930.htm:22]** |

ba7f43e083d0b72aab63f13f2dfdb1a6802ec3972b838d6e936a945e1c07c1bd

- **Strong international growth in Merchant Solutions**, with regions like Europe, Latin America, and APAC growing significantly higher than North America, demonstrating increased market share and global expansion opportunities.  **[FI_3371977_21]**
- **Clover revenue grew by 30% in Q4**, and the company expects continued acceleration due to international rollouts like the **Brazil launch in April**. Fiserv aims for **$4.5 billion in Clover revenue by 2026**, driven by increased penetration of value-added services and expansion into new channels such as ISV partnerships.  **[FI_3371977_11]**
- Fiserv is capitalizing on the **Reg II opportunity**, securing nearly **20 new wins** for its debit networks **Star and Accel**, including notable companies like **Hello Fresh and Lyft**, which can drive significant growth in their Payments segment.  **[FI_3371977_12]**

73042f28664c2ac8f95b3528a22f0670be6e45e35970e6da5a96bd0115388ba3

- **Strong demand and growth in the Financial Solutions segment**, particularly in the banking subunit, driven by increased demand from financial institutions, successful fintech wins, and improved service delivery.  **[FI_3394096_14]**
- **Raised adjusted operating margin outlook** due to operational efficiencies, scale, and ongoing productivity improvements, leading to enhanced profitability.  **[FI_3394096_11]**
- **Resilience in maintaining organic growth guidance** despite macroeconomic headwinds, supported by strong performance in key areas like Clover and value-added solutions, showcasing the adaptability of Fiserv's business model.  **[FI_3394096_16]**

0c39d0f3153e9e435aabda769ed940e13f3af1e2ac02aba356b78cc6372bef18

- **The company's new products, such as Clover Go and Clover Compact, are still in early stages**, and may face challenges in gaining traction, especially in international markets.  **[FI_3403173_16]**
- **The STAR and Accel networks are not expected to experience rapid growth**; the company anticipates only steady volume share gains rather than significant increases, which may limit future revenue growth from these networks.  **[FI_3403173_12]**
- **The anticipated acceleration in the Financial Solutions segment's revenue growth relies heavily on future projects and initiatives**, which may carry execution risks and uncertainty in achieving the projected growth rates.  **[FI_3403173_15]**

78d4dada3969dd4b386d531257fb5189a6a7b46ec68b2ce843b588d81c5896d7

- **Volume Declines in Processing Contracts:** Fiserv experienced volume declines in its merchant processing business in Q2, particularly from clients who own the merchant contracts, including banks acting as wholesale ISOs.  **[FI_3394096_11]**
- **Slowing Growth in Small Business and Enterprise Lines:** There was a slowdown in small business volume growth and enterprise transaction growth in Q2, with July showing continued slowness, though slightly ahead of June.  **[FI_3394096_12]**
- **Decreasing Transitory Benefits from Argentina:** The transitory benefit from excess inflation and interest in Argentina is declining faster than expected, reducing its contribution to organic growth from an anticipated **14 percentage points** to **9 percentage points**.  **[FI_3394096_16]** **[FI_3394096_12]**

7aefffce6a074ba75252cdb4d5f27acfcd1b5c50f48a088dc02a386d4cc2436a

- **Clover revenue grew by 30%** in the quarter, with plans to sustain high growth rates through new product launches, market expansion into Brazil and Argentina, and increasing value-added services penetration from **20%** in Q1 to **27%** by 2026. The company aims to achieve **$4.5 billion** in Clover revenue by 2026.  **[FI_3380242_8]** **[FI_3380242_12]** **[FI_3380242_18]**
- **Increased operating margin outlook**: The company raised its full-year outlook for adjusted operating margin expansion from at least **100 basis points** to more than **125 basis points**, driven by volume leverage, strong growth, and productivity improvements through investments in technology and AI.  **[FI_3380242_9]**
- **Strong capital allocation and M&A strategy**: Fiserv has a **strong balance sheet** and continues to generate significant **cash flow**, allowing for strategic investments and acquisitions that fit within their business model, leading to growth and value creation for shareholders.  **[FI_3380242_15]**

ade93d5f450bf0ef3a4450f6313e4bf0ece9804486068c7aa4032d6eea63d572

1. **Clover Growth Expectations**

   **Q:** What are your expectations for Clover's revenue and volume growth?

   **A:** Fiserv continues to see strong overall revenue and volume growth from Clover. They have a target of **$4.5 billion by 2026**, requiring about a **28% compound growth rate**, which they matched this quarter and year-to-date.  **[FI_3403173_13]**  Value-added services increased to **21%** of revenue, up 1 point.  **[FI_3403173_13]**  While volume growth remains good, it's not as strong as last year due to tough comparisons and slightly eased consumer spending.  **[FI_3403173_13]** 

2. **Financial Solutions Growth Acceleration**

   **Q:** What drives the acceleration in Financial Solutions revenue in 2025?

   **A:** Fiserv expects Financial Solutions revenue growth to accelerate from **5–7%** this year to **6–8%** next year.  **[FI_3403173_15]**  This confidence is driven by added pipeline and opportunities to grow the client base, including projects like **Finxact**, the **DoorDash partnership**, and the **SMB bundle**.  **[FI_3403173_15]**  They also see opportunities outside the U.S. and potential in AI and data services for financial institutions.  **[FI_3403173_15]** 

3. **Impact of Argentina and FX on Growth**

   **Q:** How are Argentina and FX impacting your SMB segment growth?

   **A:** The Argentina tailwind has eased significantly, impacting SMB revenue growth.  **[FI_3403173_14]**  The tailwind decreased from a **15% benefit** in Q1 to **6%** in Q3.  **[FI_3403173_14]**  Adjusted revenue faced a **15-point negative impact** from FX in the Merchant segment.  **[FI_3403173_14]**  These factors contribute to the lower SMB growth rate of **9%** this quarter despite Clover's high growth.  **[FI_3403173_14]** 

4. **Cross-Sell Opportunities and Strategic Integration**

   **Q:** How is strategic integration driving cross-sell opportunities?

   **A:** Fiserv has constructed a strategic set of complementary assets over the past five years, enhancing cross-sell opportunities.  **[FI_3403173_11]**  The integration of merchant and financial institution services, including Clover on the front end and owning a debit network, allows them to deliver capabilities to large institutions and SMBs.  **[FI_3403173_11]**  Initiatives like the **SMB bundle**, **international expansion**, and partnerships with companies like **Walmart** and **DoorDash** exemplify this strategy.  **[FI_3403173_11]** 

5. **Clover International Expansion**

   **Q:** What are your plans and timelines for Clover's international expansion?

   **A:** Fiserv is launching Clover in **Brazil and Mexico** in December.  **[FI_3403173_18]**  While they expect immediate merchant adoption, scaling to peak levels is a multiyear build and ramp.  **[FI_3403173_18]**  The expansion will affect growth rates in **2025**, with Brazil contributing to next year's numbers at some level, though not reaching full potential for another three years.  **[FI_3403173_18]** 

6. **Clover Go and Compact Strategy**

   **Q:** What's the strategy and traction for Clover Go and Clover Compact?

   **A:** Clover Go and Clover Compact are seen as augmentation products for Fiserv's client base.  **[FI_3403173_16]**  They aim to provide existing clients with more mobile solutions and to cater to different markets, including international ones.  **[FI_3403173_16]**  These products may offer software and value-added services but are also designed to reach a broader set of merchants through various distribution channels.  **[FI_3403173_16]** 

7. **SMB Bundle Impact on Clover Targets**

   **Q:** How does the SMB bundle affect your Clover growth targets?

   **A:** The SMB bundle allows Fiserv to deliver more capabilities to the SMB space, integrating products like **Clover**, **XD**, and acquisitions like **SpendLabs**.  **[FI_3403173_17]**  This broader offering may capture more of the back book but remains within natural merchant churn rates.  **[FI_3403173_17]**  The increased capabilities enhance the opportunity to impact Clover's growth more than before.  **[FI_3403173_17]** 

8. **Enterprise Transaction Growth**

   **Q:** Can you elaborate on the enterprise transaction growth and PayFac conversion?

   **A:** Transaction growth in the enterprise segment was up **12%** over the prior year, matching Q1 and up from **8%** in Q2.  **[FI_3403173_10]**  This increase is partly due to onboarding new clients, including a large **PayFac** that began ramping in Q3.  **[FI_3403173_10]**  The PayFac will continue to contribute in Q4 before volumes return to more normal levels.  **[FI_3403173_10]** 

9. **STAR and Accel Networks Positioning**

   **Q:** How are STAR and Accel positioned for growth amid U.S. market changes?

   **A:** STAR and Accel are strategic assets that allow Fiserv to compete for transactions for client benefit.  **[FI_3403173_12]**  They offer a dual messaging capability and provide merchants and issuers choices to compete for transactions at every level.  **[FI_3403173_12]**  While not expecting meteoric transaction growth, they anticipate continued volume share gains.  **[FI_3403173_12]** 

9880ecdd86d2de7d60c3d59d5389f6838461bf2c1d62aae070eb70f84567685a

- *1. Slowdown in Digital Payments Growth:** The company's digital payments revenue growth slowed to **5%** in the first quarter, down from **7-8%** in previous quarters, indicating potential challenges in sustaining growth momentum in this key segment.  **[FI_3380242_10]**
- *2. Reliance on Transitory Benefits in Argentina:** The small business segment's organic revenue growth of **45%** was significantly boosted by excess inflation and interest in Argentina, which are expected to **ease into the balance of the year**. This suggests that the high growth rate may not be sustainable moving forward.  **[FI_3380242_11]**
- *3. Non-Recurring Revenue and Margin Risks:** The increase in processing revenue was driven by a **termination fee** from a client who canceled planned expansion into new geographies. Excluding this periodic revenue, processing revenue **declined 2%** in the quarter, raising concerns about ongoing revenue and margin strength in this area.  **[FI_3380242_8]**

052aa5e275abe87ac388e29cd74cdf1a8d20b334e27c2c46f3871d6648af6be7

Fiserv Inc (FI)

Financials