Fiserv, Inc.

Welcome to the FISER 2019 Third Corner Earnings Conference Call. All participants will be on a listen-only mode until the question and answer session begins following the presentation. As a reminder, today's call is being recorded. At this time, I would now like to turn the call over to Peter Polian, Senior Vice President of Investor Relations at FISER. Thank you.

Thank you, Michelle, and good afternoon, everyone. With me today are Jeff Yabuki, our Chairman and Chief Executive, Frank Bisignano, our President and Chief Operating Officer, and Bob Howe, our Chief Financial Officer. Our earnings release and supplemental presentation for the quarter are available on the Investor Relations section of Fiserv.com. Our remarks today will include forward-looking statements about, among other matters, expected operating and financial results, strategic initiatives, and expected benefits and synergies from our recent acquisition of First Data. Forward-looking statements may differ materially from actual results and are subject to a number of risks and uncertainties, you should refer to our earnings release for a discussion of these risk factors. Please refer to our materials for today's call for an explanation of the non-GAAP financial measures discussed in this call, along with a reconciliation of those measures to the nearest applicable GAAP measures. Unless stated otherwise, performance references made throughout this call are year-over-year comparisons, and all references to internal revenue growth are on a constant currency basis. Also note that non-GAAP financial measures included in our earnings release and supplemental materials include the full quarter and year-to-date results for first data, which have been prepared by making certain adjustments to the sum of historical first data and FISER GAAP financial information. For additional historical combined financial information, please refer to the Form 8K, which we filed on October 3rd. Finally, please mark the calendar for our Investor Day to be held on March 25th in New York City. We look forward to seeing you for this important event. And now I'll turn the call over to Jeff.

Thanks, Peter, and good afternoon, everyone. We're very pleased to be with you today as we share our first quarter of combined results, along with our insights and enthusiasm for the future of your company. Financial performance is off to an excellent start following the July 29th close of the first data transaction, led by strong internal revenue growth, expanding adjusted operating margin, and growing free cash flow. Synergy work is progressing well and sales momentum continues to be strong. This performance contributed to increasing our internal revenue growth guidance to 6% for the year and adjusted EPS growth of 16% to 17%, setting us up for an even better 2020. Although we are a larger, more dynamic enterprise, we remain fully committed to delivering upon the key tenets of shareholder value that have underpinned our performance for more than a dozen years. High-quality revenue growth, operating margin expansion, strong free cash flow, and disciplined capital allocation are alive and well in new Fiserv. Along those lines, we reinitiated our share repurchase program late in the third quarter under a 10B5 plan. We are confident in our ability to both meet our debt repayment commitments and repurchase shares. The integration of First Data is top of mind as we focus on building a great company. Yesterday was day 100 of this transformational merger, and we're really excited about the road ahead. Energy is high, teams are coming together, and our integration activities are progressing well. Creating success for our clients is number one on our integration agenda and foundational to the promise of this combination. As I mentioned up front, we're off to a great start financially with internal revenue growth in the quarter up more than 6%. led by a very strong 10% in our GBS merchant business, and adjusted earnings per share was up 17% to $1.02. Adjusted operating margin in the quarter was up 130 basis points to 29.8%, and free cash flow was more than $800 million. For the year to date, internal revenue growth was also 6%, with GBS up again 10% for the period. Adjusted earnings per share was up 16% to $2.87, and and adjusted operating margin was up 100 basis points to 29.1%. Free cash flow through September 30th was up 13% to just over $2.3 billion, and free cash flow conversion was excellent at 116%. We continue to be intently focused on growing high-quality free cash flow and allocating that capital in a way that optimizes value creation on both an overall and on a per-share basis. Now, before I turn the call to Frank to update you on integration and synergy progress, let me share a few proof points on how the combination extends and enriches our strategic position. Account processing is a critically important business, which also provides a strategic hub to further distribute high-quality solutions in a cost-effective manner, such as our new offerings around merchant services. Along those lines, we were pleased to sign another 14 core account processing clients in the quarter, including six on DNA, and assigned 41 clients year-to-date. We will continue to invest in enabling our account processing clients to serve their customers in a real-time, digitally-focused world. Unlocking client value and expanding growth across our market-leading merchant acquiring business is one of our highest priorities. Our cloud-based point-of-sale platform, Clover, crossed the $100 billion threshold in annualized payment volume in the quarter, a more than 40% gain over last year. Add-on Clover services are growing rapidly, and payment devices shift is up 25% through September 30th. We're also seeing significant growth opportunities across our e-commerce merchant business, which on top of strong sales, grew transactions more than 30% in both the quarter and year to date. Additionally, our integrated payments ISV partners expanded by more than 20% in the quarter. We're incredibly optimistic about the future growth potential in these digitally-centric merchant businesses. A key strategic focus is to extend our position as the largest merchant acquirer in the world. The combination of a highly advantaged bank merchant opportunity, rapidly accelerating growth in digital commerce, global distribution, and the continued strength of our Clover platform positions us to further expand market share in this important space. The market continues to embrace payments innovation as the new norm. We believe our scale, with more than 1 billion payment cards in force, and leadership positions in areas such as card network, electronic bill payment, ACH, and Zelle, combine to create meaningful growth today and optionality for tomorrow. Last, we have a significant opportunity to meaningfully participate in global franchise growth. Whether looking at cash-to-card payments in India, gaining acceptance share in Brazil and Argentina, or enabling more e-commerce in Europe, we are more holistically participating in the long tail of global growth. As a complement, we've identified a series of meaningful revenue synergy opportunities outside the U.S., further leveraging the solution breadth and processing scale of the combined company. With that, let me turn the call over to Frank.