Fiserv, Inc. (FISV) Earnings Call Transcript & Summary

Okay. Thanks, everyone, for joining. My name is Tien-Tsin Huang. I cover payments and IT services here at JPM. This is the Fiserv discussion. I know there's a lot to talk about with Fiserv, a fun name to cover. So with us from Fiserv, we've got Bob Hau, the CFO. Julie is here also in the audience. But thank you both for being here. Bob?

Absolutely. Happy to be here.

Yes. I know you've been really busy with a lot of things going on. But I figured we'd just start -- just given the harsh stock reaction to the first quarter, give you an opportunity to address that, what might be understood? What's been the learning from that in terms of the questions you've been receiving?

Yes. So maybe obvious, but I'll state the obvious. Certainly disappointed with the reaction, unexpected. And what we have learned through this is there is an intense focus on Clover volume. So over and over and over again, as we've talked to investors since that earnings call, it comes back to what's going on with Clover volume. They get the revenue, they get the rest of the company, but what's happening there. And so lots of conversations about kind of all the puts and takes in that number. And specifically, as I suspect most of you know, we reported an 8% Clover volume growth, which is slower than what we reported last year. Lots of conversation about the sequential move of that. Fourth quarter of last year, we reported 14%. And so when you look at it sequentially, it looks like a 6-point drop. And there were a couple of things that we talked about on the earnings call and extensively since. And 2 very specific things. One is last year, particularly in the first quarter of last year, we had a gateway conversion. So we had a gateway that was non-Clover clients that we converted over to the Clover Gateway. And so we saw a pickup of volume from that last year that doesn't repeat this year. And so that was about 2 points of headwind against the growth rate. So 8% kind of becomes 10%. The other item we talked about is, obviously, Q1 last year, we had leap year, 1 day out of 91 days last year, 90 days this year. That's a little more than 1 point of growth. So 8% becomes 10% becomes 11%. And then we had a couple of other items we talked about, the timing of Easter was Q1 of last year, Q2 of this year, March to April. We did see some slowing of Canada, which is our largest international market in the first quarter. Fast forward to today, right now, and I don't give quarterly guidance period, let alone on one key performance indicator around Clover. But given the lots of discussion and questions around it, we expect second quarter to be generally similar to first quarter in terms of the reported growth rate from a volume standpoint. We do see that Gateway headwind actually increasing a bit in the second quarter. And that's a dynamic of during first quarter, we've been converting that gateway for about a year [indiscernible] probably about 2 quarters heading into first quarter, got a big chunk in first quarter and then a little bit more in second and third quarter, but it was ramping through the first quarter. So Q2 is when you have the full quarter impact of what was going on in Q1. And then we expect that to subside going forward, Q3 and Q4. A couple of important points that we're trying to make sure people understand is, number one, we reported 27% growth in Clover revenue with that 8% volume. And volume, certainly important. It is an element of the growth. Hardware, value-added services are also key growth drivers or key drivers of that revenue growth. And we saw good hardware sales in the second quarter, which actually followed very good hardware sales in the fourth quarter, and we saw a very good value-added service penetration, went from 22% in the fourth quarter to 24% in the first quarter of this year. And we continue to see opportunities to see additional revenue from all 3 of those elements: Volume, hardware, value-added services. So we remain confident in delivering on the $3.5 billion of revenue by the end of the year. First quarter was in line with our expectations, 27% in the quarter gets us in the right path to deliver on that $3.5 billion and what we see in terms of international expansion. We added 4 new countries in the first quarter. We announced that we will be launching actually on Saturday, this coming Saturday, new Clover Hospitality, which is a solution targeted for high-end restaurants, and just broad continued expansion of value-added services and the Clover solution gives us confidence of delivering $3.5 billion this year. And of course, $4.5 billion is the target that we laid out for 2026 and on path for that.

Great. So we're done then, right? All right. So that's great. I'm glad you went through all of that. I know there's a lot of detail in there, and it's crazy how it attracts so much attention, but that's the learning from it.

Well, yes, absolutely. And obviously, Clover is a key growth driver of the company, and it's part of our small business ecosystem, our integrated solution that we're selling. It's a key element of it. We're quite excited of that being an important element. We've got the new partnership with ADP that's going incredibly well. That is actually now, as of the first week of May, we have ADP's RUN solution integrated into Clover. We've been cross-selling that, so to speak, providing each other referrals, but now that's actually integrated in. Another solution that actually came to market formally. We launched our first client on CashFlow Central in the first quarter. We've got 53 more clients to ramp on to that already in backlog and obviously continue to sell more. Again, part of that small business integrated suite that leads with Clover, can lead with CashFlow Central. It's got ADP in it. It's got XD, which is our digital banking solution. So we're quite excited about the opportunity to ahead.

I mean, Bob, we've been talking about a lot of different themes and growth drivers over the years, right? And it does feel like just within this Clover and SMB piece that this list of things you're going through is long within you. Is that fair? I know it's hard to get into the detail on the stage, but is it reasonable to say that product launches, geography expansion, the distribution deal with ADP, I mean, there is quite a bit in front of you.

Yes, absolutely. And I've been the CFO at Fiserv for just over 9 years now, and I was telling a group earlier, unbelievable number of new products within Clover, within the small business suite in merchant, in financial solutions, all of them investments we've been making over the last several years coming to market. And one of the things that I was quite pleased with and excited for as we went through the first quarter, there were a number of key milestones that had to happen in order for us to continue to drive additional growth. When we originally provided guidance for the full year 2025 back in February, one of the things I talked about in that February earnings call is we don't give quarterly guidance, but I felt it was important to not only give you our full year outlook, which was 10% to 12% organic growth for the company, but lay out a little bit of the cadence. And because we have so many new products, new opportunities for growth, we expect the first quarter to start out a little bit slower and that we will ramp into that, particularly in the second half. And so important for me inside the company to say, okay, I've now laid that out. Am I on track for CashFlow Central? When I said that in February, it's a great product, product was available. It was in production, but it was not yet in production with a client, no revenue yet. And so I'm telling everybody, no, no, it's coming. We're good. Well, we did it. We now have our first. Now it's only our first, but it's our first client live. We got to get ADP integrated into Clover. It wasn't done at the earnings call. It took us an extra week, which was, by the way, the plan, first week of May. And so we keep clicking across all of those individual milestones. And one of the, I think, secret sauces to Fiserv is I don't have a product or 2 products that have to be a home run. I got lots of different opportunities, and I expect all of them to hit. And I expect all of them to hit on time at the ramp that I expect. But unfortunately, that's not reality. So some things come a little bit faster, some things come a little bit slower. But I don't have the $500 million product that if something goes bump, whether a client isn't ready to implement or we're a little bit slow or whatever the dynamic is, we've got lots of different opportunities. And as I said earlier, we had a number of very important milestones come across in Q1. We've got more that will happen in Q2, but I have a good degree of confidence that we'll continue to deliver along that long laundry list. And if you rewind, in 2020, as a proxy, we spent $900 million on CapEx. A lot of that is new product development, technology spend. In 2021, that went up to about $1.4 billion, $1.5 billion. And we've held at that level, 2022, '23, '24 and expect to be at that '25. So that increased spending manifests itself in all of these new products and capabilities that we're now seeing today.

Got it. From learning, we should have listened harder on the slower start to the year comment and also not used to seeing a long list of things as well. We did hear from ADP and Maria did talk about that's live and they're excited about it. So that fits on that side. So yes, we'll see how it plays out. One more. I don't want to spend all the time on this, but I've heard you say also before that Fiserv can solve for volume if you wanted to, right? But instead, you're trying to build up this quality book and through different sources. Is that -- did I hear that correctly?

Yes. As you might suspect, there's been a lot of soul searching internally on my part to understand why it was such a surprise. Again, we delivered on what we expected. And I actually -- as we are entering the earnings call, I went back and pulled out the last quarter's script and reread, okay, what did I say? And I was clear on cadence. I was not clear on cadence within merchant. It was a broad statement because it was true in both segments. And I certainly wasn't clear on Clover volume. Clover volume is important, no doubt about it. And clearly, from an investor standpoint, an important part of value creation. But it is one of the drivers of growth. And I need volume, no doubt about it. But I am focused on getting volume through signing up more merchants, which then allows us to sell hardware and sell value-added services. That is the Clover recipe. It is a software and hardware solution that enables payments and enables a small business to better operate. We've had this discussion since around, well, why did that slow so much? Again, if you go through all the puts and takes, which I should have been clear on in the earnings call, we did decel from fourth quarter to first quarter. But I think if you look at a lot of our peers, we're in line with the kind of 2% to 4% -- 2 to 4 points slowdown from Q4 to Q1. So we're in line with our expectation. We could get lots more volume. I could discount the heck out of my hardware. We could flood the market. I could get a lot of micro merchants, but it wouldn't be value-added volume. It would be volume for volume's sake. And I have scaled volume between our Clover device, which is very well received in the marketplace and widespread. I also have large enterprise, I have large processing clients. And so we have very scaled volume. So I don't need volume for the sake of volume. And so we are focused on, yes, getting volume, but getting the volume that can add value to the company long term.

Okay. Good. Thanks for going through that. So zooming out a little bit, thinking about, of course, let's hope you hit on all these list of things that are coming through. But what about the consumer spend side of it? We've generally heard about things being stable, but how cyclical is that business, right, whether it be from the consumer side, the SMB side or enterprise front? How much flex can there be in order for you to hit your targets? What do you see on the ground?

Yes. I think a few important points here. Number one, from a merchant standpoint, we've got a very diverse client base. If you look at the spending, the volume, the activity that we have inside of merchant, we're roughly 50-50 split between discretionary spending and nondiscretionary spending. So yes, we have a big restaurant business, but we're also very deep in groceries. So in a difficult economic time, people go out less. And you actually tend to see a trade down. I don't go to the high-end restaurant as much. I might go to a quick service or mid-market, whatever, or I go all the way down to grocery. I can capture that business across the board. And so there's a natural hedge or benefit from that standpoint. If you look at Clover specifically, it's a little bit more 60-40, a little bit more discretionary, and that's the strength of the restaurant business. But again, very broad capability to withstand a slowdown in the consumer. An interesting element, particularly in the small business space because I am volume-based, a little bit of inflation is actually a good thing for me. And it's got to be a little bit. If it's too much, obviously, that has a macro impact, but a slightly faster inflation will give me slightly more revenue. And again, we think we can weather a storm quite well if there is one. From what we're seeing today, consumer continues to hold steady. If you saw our Fiserv Small Business Index that we released, I guess, a couple of weeks ago now for the month of April. It's an index that we use that gives an indication of what's going on across small business in the United States. It is based on our data, but it is not our results. It's what we're seeing if we apply all of that very wide set of data across the U.S. marketplace, we saw about 3 points of growth year-over-year. That's slower than what we saw in March, a little bit slower than what we saw for the full quarter -- first quarter, but still good spending levels. If you listen to the news shows, the financial news shows in the morning, which I unfortunately do when I travel. When I'm at home, I don't tend to watch those. So I get a little bit more depressed when I travel these days. There's a lot of doom and gloom. The word recession has crept back in. Now this week, that's a little bit lower risk or lower probability than it was last week. But all of that is more prognostication, and we're not seeing it right now. I would tell you, though, because of that discretionary and nondiscretionary split and because of the way we operate the company, we can manage through downturns. And 2025, if we deliver on the 15% to 17% EPS growth this year, this will be our 40th consecutive year of double-digit earnings growth. There's some really tough economic times in that 40 years. So I think we've demonstrated the ability to weather the storm.

That's the hallmark of Fiserv.

Right.

Okay. So we talked about the volume stuff. We talked about the execution against the list. We talked about consumer spending. Let's do competition and what's happening around you. We've heard from a bunch of companies, right, Square said they're back and they're going to be more competitive. I'm sure you field the questions on that. You also have Global Payments and Worldpay, 2 very scaled processors coming together, perhaps driving some distraction that could create opportunity for Fiserv. What do you see there competitively? Anything that changes your thinking around competitiveness or where you might want to lean harder or maybe be a little bit more careful?

Yes. This is an extremely competitive market and has been for forever. Nobody came to us and said 2 years ago, Square is stumbled, you guys must be really doing well. Yes, Square may have stumbled, but you never count them out. I'm not going to bet against Jack. I'm going to compete with them. And we're going to continue to invest in new products and new hardware. Last year, we launched 5 new pieces of hardware or upgraded hardware, and we launched a slew of new software capabilities focused not only on our specific verticals, restaurant, retail and services, but also on vertical capability. We'll form partnerships like we did with ADP. We have a tremendous distribution channel, and we continue to maximize that opportunity. I think it is unmatched in the marketplace. Others are trying to compete in that space. It's not easy to do. It's certainly not easy to manage. It's also not easy to create. And so yes, we'll have competitors ebb and flow and some will have a resurgence or doubling down or an increased investment and some of that will work. There's still lots of share in the market. For someone else to win doesn't mean I lose. I think we continue to do quite well in a share standpoint across the board. And I think there's still massive opportunities. We believe we're the partner of choice. We think that's why Maria decided to join forces with us with a leading solution with Clover. Our bank channel, 1,000 banks have chosen to sign up with us to help us distribute Clover and our merchant solutions. We have a tremendous ISO partnership. We have a, quite honestly, still relatively new and growing direct channel. And ISV is still early stages, and we see tremendous opportunity. So we're 100% not standing still, and we'll compete head-to-head with anybody.

Okay. One more on Clover. You are entering 5 countries. Brazil is one that's very ripe probably is the word I choose to penetrate with Clover. And you are working with banks. It's very bank-centric in terms of distribution. How big could these countries -- how quickly could these countries ramp? I know you're not completely new to Brazil, but Clover is new. But it does feel like as the take rates are healthy, you can drive anticipation revenue there as well. I don't want to underestimate or oversell it, but how quickly could that ramp is the question?

Yes. Yes, 2 very important and distinct questions. One is how big could it be? And two, how fast. None of these suddenly explode. And again, it's part of the, I think, the secret sauce and the success recipe for Fiserv. Brazil will add good growth for us. and I think it is going to be a tremendous capability for us over time. And same with Australia, same with Mexico, same with Singapore, 4 of the 5 countries, all launched in some fashion in the first quarter. And I say in some fashion, we'll go to Brazil, for example. We had the official launch back in December, early December. That official launch was the party. Come to market, invite our clients, invite our existing small business clients, non-Clover clients, invite our partners, bring the press out and formally launch it. Then we then spent the next 90 days, the whole of first quarter, training those bank partners. What is Clover? How do you sell Clover? What's the value recipe, et cetera, and then formally launched at the end of the first quarter. And we'll see -- I've got a curve that shows the number of merchants, the volume from those merchants and the revenue, and we're clicking off, but it's a curve that meaningfully accelerates. And we think it's a great opportunity for us. We have been in Brazil for a lot of years. And in fact, all 4 of those countries, we have meaningful presence, both from a merchant standpoint as well as from a financial solutions standpoint. We're well known in the market. We have established partnerships. In Brazil, we have both Caixa and Sicredi, tremendous reach, tens of thousands of branches that will now be selling Clover, and that's kind of the secret recipe. The fifth one, you mentioned 5, is Belgium. Now we're entering Belgium through the acquisition of CCV that we announced in the first quarter. They have a good presence in Belgium that will allow us to bring Clover into that space. So we're entering markets new to Clover, but not new to us, and we think that gives us a real opportunity not only to move with some pace, but also really have a strong success.

Okay. Let me ask one more, and then we'll open it up. On the financial side, the first quarter grew 6%, lower end of your 6% to 8% target. Can you build up what would it take to accelerate growth there? But more importantly, just to ask them all together for the benefit of time, just timely implementation seems like it's really, really important to get these deals up and running. And we've heard from some of the IT services and BPO companies that there's been some signs of delays and there is a lot of activity in general. So how dependent is your outlook on timely implementations? And are you seeing them tracking on schedule?

Yes. So if you look across the Financial Solutions segment, many of the products and solutions we sell are long cycle time, long cycle time to sign the contract. And then can be, if you're thinking of a core account processing solution or a credit issuing solution, can be 12 to 18 months. And it's dependent upon a significant amount of data transmission and implementation, and it's reliant upon work we do, but also what the client does. And so it is paced by the client's pace and how quickly they want to implement. In some cases, we've got an agreement with our former supplier, and so that one finishes on x date. And so we're not going to -- we don't need to be ready until then, but man, we better be ready until then. And so it's one of those where it's 18 months out, we got our time and all of a sudden or 18 months later, it's we better hurry. I've heard the same story about slowdown, but I've heard that from outside the company, and we're not seeing that in our space. We've got a number of large implementations, a long backlog of things that we are currently working on. We have not seen a slowing pace of that in our organization yet. In the early March, we went live with Target, a large credit issuing client that we announced, I think, 24 months ago where they finally went live. We've got Verizon on the horizon for later this year, second half of the year. Actually, beyond that is Desjardins, a large credit union consortium up in Canada. I can't remember the firing order offhand, but we announced Desjardins about the same time we announced Target. Target is now live. Desjardins is a year, maybe a little less than that, but give or take, a year out. That's not our timing. That's when they are prepared to go live. But that was scheduled that way at contract signing essentially. So we continue to see the opportunities to implement on the issuer side, implement on the core account processing side. When you get into some of the digital payments cycle, it's much faster, and we feel good about the opportunity. We're at the bottom end of the range. Our guidance for this year is 6% to 8%. That's up 1 point from our guidance last year for 5% to 7%. We did 6% last year. We did 6% in the first quarter. We feel good about being 6% to 8% this year.

Good. Questions. Happy to take questions. If any, we have the mic here.

Pat Burton, Winslow Capital. The question about generally similar volume growth for Clover in the second quarter, is that comparing to the 8% number you reported or the kind of adjustment number you gave us that got us up to about 12%?

Yes. So my -- generally similar is against the reported 8%. And then I think I said -- I hope I said that the headwind that we saw in Q1, which was about 2 points from the gateway conversion will grow slightly in second quarter and then diminish in the third and fourth quarter. And that's just driven by the number of merchants that were converted last year. And another important point that I probably didn't mention is when we talked about these adjustments to the volume, we didn't talk about them from a revenue standpoint. There's not a lot of revenue implication. So 27% revenue, we continue to expect that to accelerate to deliver the $3.5 billion. But the volume comment was similar from a reported standpoint. There'll be slightly bigger headwind from the gateway conversion in Q2 and then ease. At the end of the day, we think we need kind of low double-digit volume growth to deliver on that $3.5 billion. And if you take the reported number in Q1, you take what I just said about Q2 on a pro forma basis, it's low double digits. And so we're right in line with what we need for the full year.

Thank you, Pat. Anyone else? So maybe building on that, I know people submitted this question to me a lot then since you answered it that way. That spread between the low double-digit volume and then getting to the top line growth, what's -- can you bridge the difference in the spread between those 2?

Yes. So the spread, the 8% versus 27%, it's really driven by 2 large items for the most part. It's hardware sales and it's value-added services. Value-added services continues to grow quite nicely for us. We closed out fourth quarter of 2023 at 19%, grew to 22% by the fourth quarter of last year. We did 24% in the first quarter. Our guidance for the year at that $3.5 billion is 25% value-added service. We continue to see good growth, good opportunity in that value-added service. And as the total revenue number grows, as a percent of that revenue, that's growing. So there's a meaningful growth rate in that value-added services. And then from a hardware standpoint, we talked a lot about this really during the earnings call and subsequent. We had quite a bit of hardware sales in the fourth quarter and the first quarter. And what we're seeing around some of our bank partners and some of our ISOs seeing the power of that hardware, the new hardware that we're putting into the market and they see the opportunity to sell that into the market. That's actually kind of a leading indicator for us because that hardware becomes software, becomes value-added service, it becomes volume for us. And these guys are not -- they're not buying hardware to put it in a store room, to put it in a warehouse. I've joked about this. I hope they're tripping over it every day and reminding themselves they've got it and they're selling it. So we see that as sell-through opportunity going forward. And it's also an indication of their confidence in the ability to sell Clover.

Yes. No, we've seen the kiosk a lot. So it's definitely in the field. Any last questions on Clover before I keep going. Yes.

I just quickly wanted to ask about Canada, which you mentioned was weak in 4Q. Is that also driving some of the flat volume in 2Q? Or have you seen some improvement there?

So we did talk briefly during Q1 about Canada. We did see a slowing in Canada. As I mentioned, that's our largest international market. We actually have seen that rebound. One of the hypotheses that I laid out back 3, 4 weeks ago was that we felt that could be a temporary thing. Obviously, there's a lot of discussions going on between the 2 countries. And I think there was a bit of a reaction of, I've got my nice winter home down in Florida, I'm not going there. And things have calmed down a little bit. Perhaps I've decided I really missed my winter home down in Florida. I'm going to go. And so we've seen a pickup. If you look at the April results for Canada, it's essentially come back to where it was. Now that wasn't a huge driver, but it was an element. And it was one that we were paying attention to is that an early indication of a softening macro environment. And we saw it rebound back to kind of more normal levels in April.

Anyone else? So we did a piece on CashFlow Central, Bob, sort of doing a deep dive on CashFlow Central with the inspiration being, hey, could that be the next Clover kind of thing? And I think you disclosed a $2 billion medium-term TAM for CashFlow Central just by selling it into your existing base. I'm curious if your thoughts have changed on that now that you have some clients live. I think you mentioned 54 mandates since the launch. Has your excitement or enthusiasm about CashFlow Central changed at all here since you guys first gave that $2 billion?

Yes. When we launched, we were quite enthusiastic about the opportunity. And I would say, honestly, it's probably grown from there. It continues to be -- as we've been going through the development, it is meeting our expectations. And when you lay this out, what I think we're going to be able to do, can we really do it? And yes, we've been able to do that. I feel great that it's finally in the first bank. That has actually created a bit of a race, so to speak, for the other 53. In a lot of cases, you don't want to be first. And so we now have the first one live. And so we think there's an opportunity to step quickly through the other 53 as well as a number of banks who may have been sitting on the sidelines, okay, that sounds really interesting. I'd really love to see it. You can do a demo, but it's a demo. And now that it's live, I think some renewed interest or accelerated interest in that. From $2 billion, that's a TAM. It's not our outlook ourselves, but we do think it's a quite meaningful opportunity. There's been lots and lots and lots of attempts to really simplify cash flow management, treasury management for small businesses. And we think we've got a great partnership with Melio that brings that not only to the Clover system, but also to the bank channel. So there's a broad distribution capability. We are integrating it directly into XD, which is a digital banking solution. We're integrating it into Clover. And so there's a variety of different mechanisms small business can use it. And the goal is to make it easier for a small business operator to operate their business. It's what Clover is all about. Clover, yes, is a point-of-sale device, but we love to talk about it as an operating system. This is one more element of that operating system. And if we can make it easy for a small business that doesn't have a treasury department to operate their business. And if we can bring that capability to the bank client partner who wants the deep relationship with those small businesses, there are many very large banks that have a tremendous treasury management system if you're a large corporate. But to take that down to a small business, it's just too heavy. Number one, they can't pay for it. And number two, it's too heavy to operate. They don't have a treasury organization. And so this is custom built for a small business. It gives them great cash management. We've got a lot of banks that are very excited to be able to sell that into their small business client. It enables us to help a financial institution generate revenue, quite helpful. It helps them deepen their relationship. In a lot of cases, they are also our Clover partners. And so there's a lot of additional opportunity. It makes us a more important partner for those financial institutions. It also makes us a more important partner for those small businesses. So that at the end of the day, I love making pizza. I want to make pizza and the hassle of operating and figuring out cash management and figuring out how to schedule my wait staff and that sort of a thing, you got an operating system that makes it easy and allows you to make your pies.

Good. No, we're excited about it. That's why we put a little effort into researching it. And I think there's a lot of opportunity. We're almost out of time. I had 2 more questions I wanted to sneak in. I don't know if we can do them both. I was going to ask about STAR and Accel, especially in the wake of Capital One Discover. It feels like there's an opportunity there on the debit network side. I don't know if you can answer that in 10 seconds. But I thought it was important to ask you just your early impressions with CEO, Mike Lyons, coming in. I've known Mike a long time, early impressions, but more fun question, maybe what are you going to miss the most about, Frank?

Yes. So I'll try to knock out both. From Capital One Discover and our STAR and Accel, there are 3 large transactions took place in the last 90 days. A lot of people are talking about global TSYS, FIS, Worldpay, but there's really a third one that matters to us. And we think that's positive opportunity for us. And so we're actually looking deep at opportunities across the board. We operate the third largest debit network in the United States, and it's a close second. So our goal is to make that #2, and we think there's some real opportunity. On the second part of your question, I've worked for Frank for 6 years now. I happen to be one of the few people on the management committee that didn't know Mike before he joined. But I tell folks, I feel like I knew Mike. When Frank called me up right before we made the announcement and said, "Hey, the Board selected a CEO. His name is Mike Lyons," and he started to explain to me who he was. I said, "Frank, I know Mike." He said, "I didn't realize you knew him." I said, "Well, I don't. But I've heard all of you guys talk about him because he's been a large client of ours." So he walked in the door knowing probably half of the management team quite well. And the other half he's gotten to know quite quickly. I spent a lot of time with him, as you might suspect. I really enjoy working with him. I think he's a great add to the organization. The transition has been incredibly smooth. It went very quickly from Frank's announcement in December to Mike joining at the end of January to having a 90-day transition period. Frank officially left last Tuesday. I still talk to him, 3 texts this morning on a variety of other things. You build a relationship with the guy for a lot of years. I'm not going to miss the 4:30 a.m. text messages. And I think the transition has enabled a very, very smooth movement. On Tuesday, when Frank officially left, it was a bit of a yawn. It's like, okay, good. Not good he's gone. But okay, I'm to the next, where we've been operating. It went from Frank with Mike in the background in the end of January to Frank and Mike side-by-side to Mike and then getting back to Frank, and it's been an incredibly smooth transition. My hats off to the Board for moving quickly. My hats off to Frank for enabling a very strong transition, and Mike has jumped in. He knows the company. If he were here, he'd tell you, at PNC, he ran 92 different pieces of software from Fiserv. He knows the company quite well, and it's made for a great transition.

Yes. That was great. Thanks for the time. Please say hi to Frank for me.

I'll do that.

Bob, thank you for the time, as always.

Great. Thank you very much.