Core Viewpoint - Fiserv's stock plummeted 44%, marking the largest single-day drop in nearly 40 years, primarily due to the new CEO's withdrawal of previous earnings guidance, revealing deeper management failures such as pricing strategy missteps and a sluggish response to customer needs [1][3][4]. Financial Performance - The adjusted earnings per share (EPS) forecast was revised down from $10.15-$10.30 to $8.50-$8.60, a reduction of over 16%. Revenue growth expectations were cut by more than half, from 10% to 3.5%-4% [3][5]. - Q3 revenue grew only about 1% year-over-year to $4.92 billion, falling short of the expected $5.36 billion by over 8%. The adjusted EPS was $2.04, nearly 23% below the anticipated $2.64 [5]. Management Issues - The crisis is attributed to management failures rather than technical failures, with the previous CEO setting overly aggressive growth targets and implementing a pricing strategy that led to significant customer attrition [5][6]. - The new CEO, Mike Lyons, acknowledged that the challenges faced were largely self-inflicted, stemming from short-term focused strategies that compromised product delivery capabilities [7]. Customer Response and Pricing Strategy - Customers expressed dissatisfaction with high fees associated with Clover, leading many to switch to cheaper alternatives like Square or Toast. This pricing strategy, initially aimed at boosting revenue, ultimately harmed long-term competitiveness [6][9]. - Analysts noted that Clover's revenue growth was outpacing the growth in payment processing volume, indicating potential issues with the product's value proposition [6]. Analyst Reactions - Analysts reacted swiftly, with BTIG describing the financial results as "astonishingly poor" and William Blair stating that the performance was shocking enough to warrant a reevaluation of recommendations for Fiserv [9]. - Some analysts maintained a cautiously optimistic view, suggesting that recovery is possible if the company can navigate through its current challenges [9]. Leadership Changes - Fiserv announced significant leadership changes, including the appointment of a new COO and CFO, as well as new board members, in an effort to stabilize the company and address the ongoing crisis [10].