GAAP revenue growth of 6% in the quarter and 8%
for the full year;
GAAP EPS increased 18% in the quarter and 27%
for the full year;
Operating cash flow increased 12% to $5.16
billion for the full year;
Organic revenue growth of 12% both in the
quarter and for the full year;
Adjusted EPS increased 15% in the quarter and
16% for the full year;
Free cash flow increased 14% to $4.02 billion
for the full year;
Company expects 2024 organic revenue growth of
15% to 17%
and adjusted EPS of $8.55 to $8.70, or growth
of 14% to 16%
Fiserv, Inc. (NYSE: FI), a leading global provider of payments
and financial services technology solutions, today reported
financial results for the fourth quarter and full year 2023.
Fourth Quarter and Full Year 2023 GAAP Results
GAAP revenue for the company increased 6% to $4.92 billion in
the fourth quarter of 2023 compared to the prior year period, with
14% growth in the Acceptance segment, 3% growth in the Payments
segment and 3% decline in the Fintech segment. GAAP revenue for the
company increased 8% to $19.09 billion for the full year 2023
compared to the prior year, with 12% growth in the Acceptance
segment and 7% growth in the Payments segment, while revenue was
flat in the Fintech segment.
GAAP earnings per share was $1.45 in the fourth quarter and
$4.98 for the full year 2023, an increase of 18% and 27%,
respectively, compared to the prior year periods. GAAP operating
margin was 29.4% and 26.3% in the fourth quarter and full year
2023, respectively, compared to 25.5% and 21.1% in the fourth
quarter and full year 2022, respectively. The full year 2023
includes a $172 million pre-tax gain related to the sale of the
company’s financial reconciliation business. Net cash provided by
operating activities increased 12% to $5.16 billion for the full
year 2023 compared to $4.62 billion in the prior year.
“Fiserv closed out 2023 with accelerated organic revenue growth
of 12%, representing our third consecutive year of double-digit
growth, as our momentum continued,” said Frank Bisignano, Chairman,
President and Chief Executive Officer of Fiserv. “We are proud to
have delivered on our commitments, with results that exceeded
expectations across key measures of our financial performance –
organic revenue growth, adjusted earnings per share, adjusted
operating margin and free cash flow.”
Fourth Quarter and Full Year 2023 Non-GAAP Results and
Additional Information
- Adjusted revenue increased 6% to $4.64 billion in the fourth
quarter and 8% to $18.04 billion for the full year 2023 compared to
the prior year periods.
- Organic revenue growth was 12% in the fourth quarter of 2023,
led by 24% growth in the Acceptance segment and 4% growth in the
Payments segment, partially offset by 1% decline in the Fintech
segment.
- Organic revenue growth was 12% for the full year 2023, led by
19% growth in the Acceptance segment, 8% growth in the Payments
segment and 2% growth in the Fintech segment.
- Adjusted earnings per share increased 15% to $2.19 in the
fourth quarter and 16% to $7.52 for the full year 2023 compared to
the prior year periods.
- Adjusted operating margin increased 150 basis points to 40.7%
in the fourth quarter and 220 basis points to 37.3% for the full
year 2023 compared to the prior year periods.
- Free cash flow increased 14% to $4.02 billion for the full year
2023 compared to $3.52 billion in the prior year.
- The company repurchased 8.6 million shares of common stock for
$1.0 billion in the fourth quarter and 40.0 million shares of
common stock for $4.7 billion in the full year 2023, reducing its
diluted weighted average outstanding shares by 5% for the full
year.
- The company launched the Fiserv Small Business Index™, a
first-of-its-kind indicator for assessing monthly performance of
small businesses in the United States at national, state and
industry levels, which was most recently published on February 2,
2024.
- In January 2024, Fiserv was named one of Fortune® World’s Most
Admired Companies™, a recognition received by the company for 9 of
the past 10 years.
Outlook for 2024
Fiserv expects organic revenue growth of 15% to 17% and adjusted
earnings per share of $8.55 to $8.70, representing growth of 14% to
16%, for 2024.
“We are confident in our ability to continue driving strong
results and plan to extend our double-digit adjusted earnings per
share growth to a 39th consecutive year,” said Bisignano. “Building
a track record of sustained, high-level performance takes Fiserv’s
unique combination of assets – our industry leading client base,
distribution, technology and people. It also requires the financial
strength to continue investing, as we do in our market-leading
operating systems and hundreds of value-added solutions for small
businesses, enterprises and financial institutions.”
Earnings Conference Call
The company will discuss its fourth quarter and full year 2023
results in a live webcast at 7 a.m. CT on Tuesday, February 6,
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™ 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® cloud-based point-of-sale and business management
platform. Fiserv is a member of the S&P 500® Index and has been
recognized as one of Fortune® World’s Most Admired Companies™ for 9
of the last 10 years. Visit fiserv.com and follow on social media
for more information and the latest company news.
Use of Non-GAAP Financial Measures
In this news release, the company supplements its reporting of
information determined in accordance with generally accepted
accounting principles (“GAAP”), such as revenue, operating income,
operating margin, net income attributable to Fiserv, diluted
earnings per share and net cash provided by operating activities,
with “adjusted revenue,” “adjusted revenue growth,” “organic
revenue,” “organic revenue growth,” “adjusted operating income,”
“adjusted operating margin,” “adjusted net income,” “adjusted
earnings per share,” “adjusted earnings per share growth,” and
“free cash flow.” Management believes that adjustments for certain
non-cash or other items and the exclusion of certain pass-through
revenue and expenses should enhance shareholders' ability to
evaluate the company’s performance, as such measures provide
additional insights into the factors and trends affecting its
business. Therefore, the company excludes these items from its GAAP
financial measures to calculate these unaudited non-GAAP measures.
The corresponding reconciliations of these unaudited non-GAAP
financial measures to the most comparable GAAP measures are
included in this news release, except for forward-looking measures
where a reconciliation to the corresponding GAAP measures is not
available due to the variability, complexity and limited visibility
of the non-cash and other items described below that are excluded
from the non-GAAP outlook measures. See page 15 for additional
information regarding the company’s forward-looking non-GAAP
financial measures.
Examples of non-cash or other items may include, but are not
limited to, non-cash intangible asset amortization expense
associated with acquisitions; non-cash impairment charges;
severance costs; net charges associated with debt financing
activities; merger and integration costs; gains or losses from the
sale of businesses, certain assets or investments; certain discrete
tax benefits and expenses; and non-cash deferred revenue
adjustments relating to the 2019 acquisition of First Data
Corporation. The company excludes these items to more clearly focus
on the factors management believes are pertinent to the company’s
operations, and management uses this information to make operating
decisions, including the allocation of resources to the company’s
various businesses.
The company adjusts its non-GAAP results to exclude amortization
of acquisition-related intangible assets as such amounts are
inconsistent in amount and frequency and are significantly impacted
by the timing and/or size of acquisitions. Management believes that
the adjustment of acquisition-related intangible asset amortization
supplements GAAP information with a measure that can be used to
assess the comparability of operating performance. Although the
company excludes amortization from acquisition-related intangible
assets from its non-GAAP expenses, management believes that it is
important for investors to understand that such intangible assets
were recorded as part of purchase accounting and contribute to
revenue generation.
Management believes organic revenue growth is useful because it
presents adjusted revenue growth excluding the impact of foreign
currency fluctuations, acquisitions, dispositions and the company’s
Output Solutions postage reimbursements and including deferred
revenue purchase accounting adjustments. Management believes free
cash flow is useful to measure the funds generated in a given
period that are available for debt service requirements and
strategic capital decisions. Management believes this supplemental
information enhances shareholders’ ability to evaluate and
understand the company’s core business performance.
These unaudited non-GAAP measures may not be comparable to
similarly titled measures reported by other companies and should be
considered in addition to, and not as a substitute for, revenue,
operating income, operating margin, net income attributable to
Fiserv, diluted earnings per share and net cash provided by
operating activities or any other amount determined in accordance
with GAAP.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements regarding anticipated organic revenue growth,
adjusted earnings per share, adjusted earnings per share growth and
other statements regarding our future financial performance.
Statements can generally be identified as forward-looking because
they include words such as “believes,” “anticipates,” “expects,”
“could,” “should,” “confident,” “likely,” “plan,” or words of
similar meaning. Statements that describe the company’s future
plans, outlook, objectives or goals are also forward-looking
statements.
Forward-looking statements are subject to assumptions, risks and
uncertainties that may cause actual results to differ materially
from those contemplated by such forward-looking statements. The
factors that could cause the company’s actual results to differ
materially include, among others, the following: the company’s
ability to compete effectively against new and existing competitors
and to continue to introduce competitive new products and services
on a timely, cost-effective basis; changes in customer demand for
the company’s products and services; the ability of the company’s
technology to keep pace with a rapidly evolving marketplace; the
success of the company’s merchant alliances, some of which are not
controlled by the company; the impact of a security breach or
operational failure on the company’s business, including
disruptions caused by other participants in the global financial
system; losses due to chargebacks, refunds or returns as a result
of fraud or the failure of the company’s vendors and merchants to
satisfy their obligations; changes in local, regional, national and
international economic or political conditions, including those
resulting from heightened inflation, rising interest rates, a
recession, bank failures, or intensified international hostilities,
and the impact they may have on the company and its employees,
clients, vendors, supply chain, operations and sales; the effect of
proposed and enacted legislative and regulatory actions affecting
the company or the financial services industry as a whole; the
company’s ability to comply with government regulations and
applicable card association and network rules; the protection and
validity of intellectual property rights; the outcome of pending
and future litigation and governmental proceedings; the company’s
ability to successfully identify, complete and integrate
acquisitions, and to realize the anticipated benefits associated
with the same; the impact of the company’s strategic initiatives;
the company’s ability to attract and retain key personnel;
volatility and disruptions in financial markets that may impact the
company’s ability to access preferred sources of financing and the
terms on which the company is able to obtain financing or increase
its costs of borrowing; adverse impacts from currency exchange
rates or currency controls; changes in corporate tax and interest
rates; and other factors included in “Risk Factors” in the
company’s Annual Report on Form 10-K for the year ended December
31, 2022, and in other documents that the company files with the
Securities and Exchange Commission, which are available at
http://www.sec.gov. You should consider these factors carefully in
evaluating forward-looking statements and are cautioned not to
place undue reliance on such statements. The company assumes no
obligation to update any forward-looking statements, which speak
only as of the date of this news release.
Fiserv, Inc.
Condensed Consolidated
Statements of Income
(In millions, except per share
amounts, unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2023
2022
2023
2022
Revenue
Processing and services
$
4,025
$
3,722
$
15,630
$
14,460
Product
892
909
3,463
3,277
Total revenue
4,917
4,631
19,093
17,737
Expenses
Cost of processing and services
1,265
1,390
5,332
5,771
Cost of product
577
590
2,338
2,221
Selling, general and administrative
1,624
1,499
6,576
6,059
Net (gain) loss on sale of businesses and
other assets
5
(27
)
(167
)
(54
)
Total expenses
3,471
3,452
14,079
13,997
Operating income
1,446
1,179
5,014
3,740
Interest expense, net
(284
)
(199
)
(976
)
(733
)
Other expense, net
(59
)
(11
)
(140
)
(94
)
Income before income taxes and (loss)
income from investments in unconsolidated affiliates
1,103
969
3,898
2,913
Income tax provision
(210
)
(169
)
(754
)
(551
)
(Loss) income from investments in
unconsolidated affiliates
(4
)
(2
)
(15
)
220
Net income
889
798
3,129
2,582
Less: net income attributable to
noncontrolling interests
19
16
61
52
Net income attributable to
Fiserv
$
870
$
782
$
3,068
$
2,530
GAAP earnings per share attributable to
Fiserv – diluted
$
1.45
$
1.23
$
4.98
$
3.91
Diluted shares used in computing
earnings per share attributable to Fiserv
602.7
638.6
615.9
647.9
Earnings per share is calculated using
actual, unrounded amounts.
Fiserv, Inc.
Reconciliation of GAAP
to
Adjusted Net Income and
Adjusted Earnings Per Share
(In millions, except per share
amounts, unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2023
2022
2023
2022
GAAP net income attributable to
Fiserv
$
870
$
782
$
3,068
$
2,530
Adjustments:
Merger and integration costs 1
38
58
158
173
Severance costs
22
75
74
209
Amortization of acquisition-related
intangible assets 2
378
426
1,623
1,814
Non wholly-owned entity activities 3
31
28
133
9
Net (gain) loss on sale of businesses and
other assets 4
5
(27
)
(167
)
(54
)
Canadian tax law change 5
—
—
27
—
Tax impact of adjustments 6
(94
)
(123
)
(355
)
(476
)
Argentine Peso devaluation 7
71
—
71
—
Adjusted net income
$
1,321
$
1,219
$
4,632
$
4,205
GAAP earnings per share attributable to
Fiserv - diluted
$
1.45
$
1.23
$
4.98
$
3.91
Adjustments – net of income taxes:
Merger and integration costs 1
0.05
0.07
0.21
0.21
Severance costs
0.03
0.09
0.10
0.25
Amortization of acquisition-related
intangible assets 2
0.50
0.53
2.11
2.21
Non wholly-owned entity activities 3
0.04
0.03
0.17
(0.02
)
Net (gain) loss on sale of businesses and
other assets 4
0.01
(0.03
)
(0.19
)
(0.06
)
Canadian tax law change 5
—
—
0.04
—
Argentine Peso devaluation 7
0.12
—
0.12
—
Adjusted earnings per share
$
2.19
$
1.91
$
7.52
$
6.49
GAAP earnings per share attributable to
Fiserv growth
18
%
27
%
Adjusted earnings per share growth
15
%
16
%
See pages 3-4 for disclosures related to
the use of non-GAAP financial measures.
Earnings per share is calculated using
actual, unrounded amounts.
1
Represents acquisition and related
integration costs incurred in connection with various acquisitions.
Merger and integration costs associated with integration activities
primarily include $35 million and $75 million of share-based
compensation and $70 million and $38 million of third-party
professional service fees for the full year 2023 and 2022,
respectively.
2
Represents amortization of intangible
assets acquired through various acquisitions, including customer
relationships, software/technology and trade names. This adjustment
does not exclude the amortization of other intangible assets such
as contract costs (sales commissions and deferred conversion
costs), capitalized and purchased software, financing costs and
debt discounts. See additional information on page 14 for an
analysis of the company’s amortization expense.
3
Represents the company’s share of
amortization of acquisition-related intangible assets at its
unconsolidated affiliates, as well as the minority interest share
of amortization of acquisition-related intangible assets at its
subsidiaries in which the company holds a controlling financial
interest. This adjustment for the full year 2022 also includes
pre-tax gains totaling $201 million related to certain equity
investment transactions and other net expense of $43 million
associated with joint venture debt guarantees.
4
Represents a net gain primarily associated
with the sale of the company’s financial reconciliation business
during 2023. This adjustment also includes an aggregate net gain on
the sale of Fiserv Costa Rica, S.A. and the company’s Systems
Integration Services operations during the fourth quarter of 2022,
and on the sale of the company’s Korea operations and certain
merchant contracts in conjunction with the mutual termination of
one of the company’s merchant alliance joint ventures during
2022.
5
Represents the impact of a multi-year
retroactive Canadian tax law change, enacted in June 2023, related
to the Goods and Services Tax / Harmonized Sales Tax (GST/HST)
treatment of payment card services.
6
The tax impact of adjustments is
calculated using a tax rate of 20% and 21% for the full year 2023
and 2022, respectively, which approximates the company's annual
effective tax rates, exclusive of actual tax impacts of $48 million
associated with the net gain on sale of businesses during 2023 and
$16 million associated with the net gain on sale of businesses,
other assets and certain equity investment transactions during
2022.
7
On December 12, 2023, the Argentina
government announced economic reforms, including a significant
devaluation of the Argentine Peso. This adjustment represents the
corresponding one-day foreign currency exchange loss from the
remeasurement of the company’s Argentina subsidiary’s monetary
assets and liabilities in Argentina’s highly inflationary
economy.
Fiserv, Inc.
Financial Results by
Segment
(In millions, unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2023
2022
2023
2022
Total Company
Revenue
$
4,917
$
4,631
$
19,093
$
17,737
Adjustments:
Output Solutions postage
reimbursements
(280
)
(277
)
(1,071
)
(989
)
Deferred revenue purchase accounting
adjustments
3
6
19
25
Adjusted revenue
$
4,640
$
4,360
$
18,041
$
16,773
Operating income
$
1,446
$
1,179
$
5,014
$
3,740
Adjustments:
Merger and integration costs 1
38
58
158
173
Severance costs
22
75
74
209
Amortization of acquisition-related
intangible assets
378
426
1,623
1,814
Net (gain) loss on sale of businesses and
other assets
5
(27
)
(167
)
(54
)
Canadian tax law change
—
—
27
—
Adjusted operating income
$
1,889
$
1,711
$
6,729
$
5,882
Operating margin
29.4
%
25.5
%
26.3
%
21.1
%
Adjusted operating margin
40.7
%
39.2
%
37.3
%
35.1
%
Merchant Acceptance (“Acceptance”)
2
Revenue
$
2,114
$
1,860
$
8,132
$
7,292
Operating income
$
819
$
648
$
2,856
$
2,321
Operating margin
38.8
%
34.8
%
35.1
%
31.8
%
Financial Technology (“Fintech”)
2
Revenue
$
800
$
823
$
3,171
$
3,170
Operating income
$
303
$
340
$
1,159
$
1,157
Operating margin
37.9
%
41.3
%
36.6
%
36.5
%
Payments and Network
(“Payments”)
Revenue
$
1,718
$
1,665
$
6,696
$
6,262
Adjustments:
Deferred revenue purchase accounting
adjustments
3
6
19
25
Adjusted revenue
$
1,721
$
1,671
$
6,715
$
6,287
Operating income
$
874
$
805
$
3,189
$
2,823
Adjustments:
Deferred revenue purchase accounting
adjustments
3
6
19
25
Adjusted operating income
$
877
$
811
$
3,208
$
2,848
Operating margin
50.9
%
48.3
%
47.6
%
45.1
%
Adjusted operating margin
51.0
%
48.5
%
47.8
%
45.3
%
Fiserv, Inc.
Financial Results by Segment
(cont.)
(In millions, unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2023
2022
2023
2022
Corporate and Other
Revenue
$
285
$
283
$
1,094
$
1,013
Adjustments:
Output Solutions postage
reimbursements
(280
)
(277
)
(1,071
)
(989
)
Adjusted revenue
$
5
$
6
$
23
$
24
Operating loss
$
(550
)
$
(614
)
$
(2,190
)
$
(2,561
)
Adjustments:
Merger and integration costs
35
52
139
148
Severance costs
22
75
74
209
Amortization of acquisition-related
intangible assets
378
426
1,623
1,814
Net (gain) loss on sale of businesses and
other assets
5
(27
)
(167
)
(54
)
Canadian tax law change
—
—
27
—
Adjusted operating loss
$
(110
)
$
(88
)
$
(494
)
$
(444
)
See pages 3-4 for disclosures related to
the use of non-GAAP financial measures.
Operating margin percentages are
calculated using actual, unrounded amounts.
1
Includes the deferred revenue purchase
accounting adjustments in the Payments segment related to the 2019
acquisition of First Data Corporation. Adjustments for this
residual activity have concluded as of December 31, 2023.
2
For all periods presented in the
Acceptance and Fintech segments, there were no adjustments to GAAP
measures presented and thus the adjusted measures are equal to the
GAAP measures presented.
Fiserv, Inc.
Condensed Consolidated
Statements of Cash Flows
(In millions, unaudited)
Year Ended
December 31,
2023
2022
Cash flows from operating
activities
Net income
$
3,129
$
2,582
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and other amortization
1,479
1,320
Amortization of acquisition-related
intangible assets
1,642
1,849
Amortization of financing costs and debt
discounts
41
43
Share-based compensation
342
323
Deferred income taxes
(511
)
(558
)
Net gain on sale of businesses and other
assets
(167
)
(54
)
Loss (income) from investments in
unconsolidated affiliates
15
(220
)
Distributions from unconsolidated
affiliates
55
73
Non-cash impairment charges
—
14
Other operating activities
49
(10
)
Changes in assets and liabilities, net of
effects from acquisitions and dispositions:
Trade accounts receivable
23
(770
)
Prepaid expenses and other assets
(790
)
(253
)
Contract costs
(246
)
(290
)
Accounts payable and other liabilities
(54
)
511
Contract liabilities
155
58
Net cash provided by operating
activities
5,162
4,618
Cash flows from investing
activities
Capital expenditures, including
capitalized software and other intangibles
(1,388
)
(1,479
)
Net proceeds from sale of businesses and
other assets
234
246
Payments for acquisitions of businesses,
net of cash acquired
(13
)
(988
)
Distributions from unconsolidated
affiliates
136
138
Purchases of investments
(39
)
(52
)
Proceeds from sale of investments
5
23
Other investing activities
(3
)
—
Net cash used in investing
activities
(1,068
)
(2,112
)
Cash flows from financing
activities
Debt proceeds
5,567
1,624
Debt repayments
(3,015
)
(3,315
)
Net (repayments of) proceeds from
commercial paper and short-term borrowings
(1,456
)
1,837
Payments of debt financing costs
(38
)
(10
)
Proceeds from issuance of treasury
stock
101
149
Purchases of treasury stock, including
employee shares withheld for tax obligations
(4,827
)
(2,677
)
Settlement activity, net
(527
)
(78
)
Distributions paid to noncontrolling
interests and redeemable noncontrolling interests
(34
)
(42
)
Payment to acquire noncontrolling interest
of consolidated subsidiary
(56
)
—
Payments of acquisition-related contingent
consideration
(35
)
(2
)
Other financing activities
(36
)
36
Net cash used in financing
activities
(4,356
)
(2,478
)
Effect of exchange rate changes on cash
and cash equivalents
33
(41
)
Net change in cash and cash
equivalents
(229
)
(13
)
Cash and cash equivalents, beginning
balance
3,192
3,205
Cash and cash equivalents, ending
balance
$
2,963
$
3,192
Fiserv, Inc.
Condensed Consolidated Balance
Sheets
(In millions, unaudited)
December 31,
2023
2022
Assets
Cash and cash equivalents
$
1,204
$
902
Trade accounts receivable – net
3,582
3,585
Prepaid expenses and other current
assets
2,344
1,575
Settlement assets
27,681
21,482
Total current assets
34,811
27,544
Property and equipment – net
2,161
1,958
Customer relationships – net
7,075
8,424
Other intangible assets – net
4,135
3,991
Goodwill
37,205
36,811
Contract costs – net
968
905
Investments in unconsolidated
affiliates
2,262
2,403
Other long-term assets
2,273
1,833
Total assets
$
90,890
$
83,869
Liabilities and Equity
Accounts payable and accrued expenses
$
4,355
$
3,883
Short-term and current maturities of
long-term debt
755
468
Contract liabilities
761
625
Settlement obligations
27,681
21,482
Total current liabilities
33,552
26,458
Long-term debt
22,363
20,950
Deferred income taxes
3,078
3,602
Long-term contract liabilities
250
235
Other long-term liabilities
978
936
Total liabilities
60,221
52,181
Redeemable noncontrolling interests
161
161
Fiserv shareholders’ equity
29,857
30,828
Noncontrolling interests
651
699
Total equity
30,508
31,527
Total liabilities and equity
$
90,890
$
83,869
Fiserv, Inc.
Selected Non-GAAP Financial
Measures and Additional Information
(In millions, unaudited)
Organic Revenue Growth 1
Three Months Ended
December 31,
Year Ended
December 31,
2023
2022
Growth
2023
2022
Growth
Total Company
Adjusted revenue
$
4,640
$
4,360
$
18,041
$
16,773
Currency impact 2
226
—
619
—
Acquisition adjustments
(16
)
—
(65
)
—
Divestiture adjustments
(5
)
(18
)
(23
)
(120
)
Organic revenue
$
4,845
$
4,342
12%
$
18,572
$
16,653
12%
Acceptance
Adjusted revenue
$
2,114
$
1,860
$
8,132
$
7,292
Currency impact 2
210
—
557
—
Acquisition adjustments
(16
)
—
(62
)
—
Divestiture adjustments
—
—
—
(47
)
Organic revenue
$
2,308
$
1,860
24%
$
8,627
$
7,245
19%
Fintech
Adjusted revenue
$
800
$
823
$
3,171
$
3,170
Currency impact 2
(1
)
—
1
—
Acquisition adjustments
—
—
(3
)
—
Divestiture adjustments
—
(12
)
—
(49
)
Organic revenue
$
799
$
811
(1)%
$
3,169
$
3,121
2%
Payments
Adjusted revenue
$
1,721
$
1,671
$
6,715
$
6,287
Currency impact 2
17
—
61
—
Organic revenue
$
1,738
$
1,671
4%
$
6,776
$
6,287
8%
Corporate and Other
Adjusted revenue
$
5
$
6
$
23
$
24
Divestiture adjustments
(5
)
(6
)
(23
)
(24
)
Organic revenue
$
—
$
—
$
—
$
—
See pages 3-4 for disclosures related to
the use of non-GAAP financial measures.
Organic revenue growth is calculated using
actual, unrounded amounts.
1
Organic revenue growth is measured as the
change in adjusted revenue (see pages 9-10) for the current period
excluding the impact of foreign currency fluctuations and revenue
attributable to acquisitions and dispositions, divided by adjusted
revenue from the prior period excluding revenue attributable to
dispositions.
2
Currency impact is measured as the
increase or decrease in adjusted revenue for the current period by
applying prior period foreign currency exchange rates to present a
constant currency comparison to prior periods.
Fiserv, Inc.
Selected Non-GAAP Financial
Measures and Additional Information (cont.)
(In millions, unaudited)
Free Cash Flow
Year Ended
December 31,
2023
2022
Net cash provided by operating
activities
$
5,162
$
4,618
Capital expenditures
(1,388
)
(1,479
)
Adjustments:
Distributions paid to noncontrolling
interests and redeemable noncontrolling interests
(34
)
(42
)
Distributions from unconsolidated
affiliates included in cash flows from investing activities
136
138
Severance, merger and integration
payments
169
306
Tax payments on adjustments
(34
)
(64
)
Tax payments on gain on sale of assets and
investments in unconsolidated affiliates
—
49
Other
5
(11
)
Free cash flow
$
4,016
$
3,515
Total Amortization 1
Three Months Ended
December 31,
Year Ended
December 31,
2023
2022
2023
2022
Acquisition-related intangible assets
$
381
$
433
$
1,642
$
1,849
Capitalized software and other
intangibles
133
101
493
359
Purchased software
58
53
225
233
Financing costs and debt discounts
11
10
41
43
Sales commissions
27
27
110
106
Deferred conversion costs
24
18
85
67
Total amortization
$
634
$
642
$
2,596
$
2,657
See pages 3-4 for disclosures related to
the use of non-GAAP financial measures.
1
The company adjusts its non-GAAP results
to exclude amortization of acquisition-related intangible assets as
such amounts are inconsistent in amount and frequency and are
significantly impacted by the timing and/or size of acquisitions.
Management believes that the adjustment of acquisition-related
intangible asset amortization supplements the GAAP information with
a measure that can be used to assess the comparability of operating
performance. Although the company excludes amortization from
acquisition-related intangible assets from its non-GAAP expenses,
management believes that it is important for investors to
understand that such intangible assets were recorded as part of
purchase accounting and contribute to revenue generation.
Amortization of intangible assets that relate to past acquisitions
will recur in future periods until such intangible assets have been
fully amortized. Any future acquisitions may result in the
amortization of additional intangible assets.
Fiserv, Inc. Full Year
Forward-Looking Non-GAAP Financial Measures
Reconciliations of unaudited non-GAAP financial measures to the
most comparable GAAP measures are included in this news release,
except for forward-looking measures where a reconciliation to the
corresponding GAAP measures is not available due to the
variability, complexity and limited visibility of these items that
are excluded from the non-GAAP outlook measures. The company’s
forward-looking non-GAAP financial measures for 2024, including
organic revenue growth, adjusted earnings per share and adjusted
earnings per share growth, are designed to enhance shareholders’
ability to evaluate the company’s performance by excluding certain
items to focus on factors and trends affecting its business.
Organic Revenue Growth - The company’s organic revenue growth
outlook for 2024 excludes the impact of foreign currency
fluctuations, acquisitions, dispositions and the impact of the
company’s postage reimbursements. The currency impact is measured
as the increase or decrease in the expected adjusted revenue for
the period by applying prior period foreign currency exchange rates
to present a constant currency comparison to prior periods.
Growth
2024 Revenue
6.5% - 8.5%
Postage reimbursements
(0.5)%
2024 Adjusted revenue
6% - 8%
Currency impact
8.5%
Acquisition adjustments
0.0%
Divestiture adjustments
0.5%
2024 Organic revenue
15% - 17%
Adjusted Earnings Per Share - The company’s adjusted earnings
per share outlook for 2024 excludes certain non-cash or other items
such as non-cash intangible asset amortization expense associated
with acquisitions; non-cash impairment charges; merger and
integration costs; severance costs; gains or losses from the sale
of businesses, certain assets and investments; and certain discrete
tax benefits and expenses. The company estimates that amortization
expense in 2024 with respect to acquired intangible assets will
decrease approximately 10% compared to the amount incurred in
2023.
Other adjustments to the company’s financial measures that were
incurred in 2023 are presented in this news release; however, they
are not necessarily indicative of adjustments that may be incurred
throughout 2024 or beyond. Estimates of these impacts and
adjustments on a forward-looking basis are not available due to the
variability, complexity and limited visibility of these items.
FISV-E
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240206240094/en/
Media Relations: Britt Zarling Corporate Communications
Fiserv, Inc. 414-526-3107 britt.zarling@fiserv.com
Investor Relations: Julie Chariell Investor Relations
Fiserv, Inc. 212-515-0278 julie.chariell@fiserv.com
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