Fiserv Reports First Quarter 2024 Results

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Fiserv Reports First Quarter 2024 Results

GAAP revenue growth of 7% and organic revenue growth of 20%;

GAAP EPS increased 39% and adjusted EPS increased 19%;

Company affirms 2024 organic revenue growth outlook of 15% to 17%

and raises adjusted EPS outlook to $8.60 to $8.75

MILWAUKEEMILWAUKEE--(BUSINESS WIRE)--April 23, 2024--

Fiserv, Inc. (NYSE: FI), a leading global provider of payments and financial services technology solutions, today reported financial results for the first quarter of 2024.

First Quarter 2024 GAAP Results

GAAP revenue for the company increased 7% to $4.88 billion in the first quarter of 2024 compared to the prior year period, with 13% growth in the Merchant Solutions segment and 3% growth in the Financial Solutions segment.

GAAP earnings per share was $1.24 in the first quarter of 2024, an increase of 39% compared to the prior year period. GAAP operating margin was 24.2% in the first quarter of 2024 compared to 20.5% in the first quarter of 2023. GAAP operating margin was 34.1% in the Merchant Solutions segment and 44.1% in the Financial Solutions segment in the first quarter of 2024, compared to 29.7% and 42.4% in the first quarter of 2023, respectively. Net cash provided by operating activities was $831 million in the first quarter of 2024 compared to $1.13 billion in the prior year period.

“Fiserv extended its strong revenue growth and margin expansion into 2024 leading to 19% adjusted earnings per share growth in the first quarter,” said Frank Bisignano, Chairman, President and Chief Executive Officer of Fiserv. “We continued to execute on our resilient business model by improving productivity, delivering innovative products and services, and cross-selling into our diverse and high-quality client base.”

First Quarter 2024 Non-GAAP Results and Additional Information

   --  Adjusted revenue increased 7% to $4.54 billion in the first quarter of 
      2024 compared to the prior year period. 
   --  Organic revenue growth was 20% in the first quarter of 2024, led by 36% 
      growth in the Merchant Solutions segment and 5% growth in the Financial 
      Solutions segment. 
   --  Adjusted earnings per share increased 19% to $1.88 in the first quarter 
      of 2024 compared to the prior year period. 
   --  Adjusted operating margin increased 180 basis points to 35.8% in the 
      first quarter of 2024 compared to the prior year period. 
   --  Adjusted operating margin increased 440 basis points to 34.1% in the 
      Merchant Solutions segment and increased 160 basis points to 44.1% in the 
      Financial Solutions segment in the first quarter of 2024, compared to the 
      prior year period. 
   --  Free cash flow was $454 million in the first quarter of 2024 compared 
      to $861 million in the prior year period. 
   --  The company repurchased 10.2 million shares of common stock for $1.5 
      billion in the first quarter of 2024. 
   --  The company completed a public offering of $2.0 billion of 3-year, 
      7-year and 10-year senior notes with a weighted average interest rate of 
      5.313%. 
   --  Fiserv was named to Fortune(R) America's Most Innovative Companies for 
      the second consecutive year. 
   --  Clover(R) was named "Best Overall Commerce Platform" in the 2024 Annual 
      FinTech Breakthrough Awards.

Outlook for 2024

Fiserv continues to expect organic revenue growth of 15% to 17% and raises adjusted earnings per share outlook to $8.60 to $8.75, representing growth of 14% to 16%, for 2024.

“Fiserv remains committed to our virtuous cycle of investment, revenue growth, operating leverage, capital return and re-investment for further growth, reinforced with a focus on clients, operational excellence, and a strong balance sheet,” said Bisignano. “This proven model, along with our strong first quarter results, led us to raise our 2024 adjusted earnings per share outlook for the full year.”

Segment Realignment

The company realigned its reportable segments during the first quarter of 2024 to correspond with changes in its business designed to further enhance operational performance in the delivery of its integrated portfolio of products and solutions to its financial institution clients (“Segment Realignment”). The company’s new reportable segments are Merchant Solutions and Financial Solutions. Segment results for the three months ended March 31, 2023 have been recast to reflect the Segment Realignment. Additional information regarding the Segment Realignment is available in the Current Report on Form 8-K filed by the company on March 26, 2024.

Earnings Conference Call

The company will discuss its first quarter 2024 results in a live webcast at 7 a.m. CT on Tuesday, April 23, 2024. The webcast, along with supplemental financial information, can be accessed on the investor relations section of the Fiserv website at investors.fiserv.com. A replay will be available approximately one hour after the conclusion of the live webcast.

About Fiserv

Fiserv, Inc. (NYSE: FI), a Fortune 500(TM) company, aspires to move money and information in a way that moves the world. As a global leader in payments and financial technology, the company helps clients achieve best-in-class results through a commitment to innovation and excellence in areas including account processing and digital banking solutions; card issuer processing and network services; payments; e-commerce; merchant acquiring and processing; and the Clover(R) cloud-based point-of-sale and business management platform. Fiserv is a member of the S&P 500(R) Index and has been recognized as one of Fortune(R) World’s Most Admired Companies(TM) for 9 of the last 10 years. Visit fiserv.com and follow on social media for more information and the latest company news.

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