Fiserv(FI)2025-05-29 20:30Financial Data and Key Metrics Changes - The company has committed to achieving 15% to 17% EPS growth for the year and aims to hit a target of 4 billion in revenues and is experiencing growth [46] Market Data and Key Metrics Changes - The company holds less than 10% market share in the U.S. for both volume and merchants, with international market share close to zero, indicating significant growth potential [29][30] - The company is expanding into new markets, including Brazil, where it has established partnerships with major banks [39][40] Company Strategy and Development Direction - The strategy remains unchanged, focusing on winning clients and growing with them by providing value-added products and services [10][11] - The company is emphasizing a client-first mindset and operational excellence to enhance average revenue per client [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities in both the merchant and financial institution segments, highlighting the interconnectedness of these businesses [6][60] - The company is well-positioned to assist banks in a competitive landscape dominated by technology [63][64] Other Important Information - The partnership with ADP is expected to enhance Clover's distribution and referral relationships, providing a more integrated suite of services for small businesses [41][44] - The company is focusing on expanding its presence in the healthcare and government sectors, which are seen as attractive growth areas [80][81] Q&A Session Summary Question: What changes to Clover's volume growth can be expected? - Management indicated that Clover's volume growth has been in the low double digits when excluding gateway conversions, with no signs of market saturation [19][20] Question: What is the right growth algorithm for Clover? - Management stated that the revenue mix will depend on customer engagement with Clover, emphasizing the importance of building a highly integrated platform [24][25] Question: How is the SMB book excluding Clover performing? - The non-Clover SMB business is generating approximately $4 billion in revenues and is growing, with plans to increase back book conversion to Clover [46][47] Question: What is the company's capital allocation philosophy? - The company maintains a strong focus on funding its businesses, share buybacks, and strategic M&A opportunities, with no changes to its existing framework [92][95] Question: What are the less understood aspects of Fiserv? - Management highlighted the competitive advantage of having both FI and merchant services under one roof, the global growth opportunity, and the quality of its workforce as underappreciated factors [97][102]