GAAP revenue growth of 7% both in the quarter
and for the full year; GAAP EPS increased 13% in the quarter and 8%
for the full year; Operating cash flow was $6.63 billion for the
full year; Organic revenue growth of 13% in the quarter and 16% for
the full year; Adjusted EPS increased 15% in the quarter and 17%
for the full year; Free cash flow was $5.23 billion for the full
year; Company expects 2025 organic revenue growth of 10% to 12% and
adjusted EPS of $10.10 to $10.30, or growth of 15% to 17%
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 2024.
Fourth Quarter and Full Year 2024 GAAP Results
GAAP revenue for the company increased 7% to $5.25 billion in
the fourth quarter of 2024 compared to the prior year period, with
11% growth in the Merchant Solutions segment and 3% growth in the
Financial Solutions segment. GAAP revenue for the company increased
7% to $20.46 billion for the full year 2024 compared to the prior
year, with 10% growth in the Merchant Solutions segment and 4%
growth in the Financial Solutions segment.
GAAP earnings per share was $1.64 in the fourth quarter and
$5.38 for the full year 2024, an increase of 13% and 8%,
respectively, compared to the prior year periods. The full year
2024 included a $595 million non-cash impairment charge related to
one of the company’s equity method investments, as well as a $147
million non-cash settlement charge in the fourth quarter for
terminated pension plans. The full year 2023 included a $172
million gain related to the sale of the company’s financial
reconciliation business.
GAAP operating margin was 31.8% and 28.7% in the fourth quarter
and full year 2024 compared to 29.4% and 26.3% in the fourth
quarter and full year 2023. GAAP operating margin in the Merchant
Solutions segment was 39.2% and 37.0% in the fourth quarter and
full year 2024 compared to 37.7% and 34.1% in the fourth quarter
and full year 2023. GAAP operating margin in the Financial
Solutions segment was 51.7% and 47.3% in the fourth quarter and
full year 2024 compared to 48.4% and 45.9% in the fourth quarter
and full year 2023. Net cash provided by operating activities was
$6.63 billion for the full year 2024.
“Fiserv’s track record of growth and consistency continued
through 2024 — our fourth year in a row of double-digit organic
revenue growth and 39th consecutive year of double-digit adjusted
earnings per share growth,” said Frank Bisignano, Chairman and
Chief Executive Officer of Fiserv. “The strength and sustainability
of Fiserv’s performance is a testament to our unparalleled business
model which generates high recurring revenue, strong incremental
margin, and healthy free cash flow.”
Fourth Quarter and Full Year 2024 Non-GAAP Results and
Additional Information
- Adjusted revenue increased 7% to $4.90 billion in the fourth
quarter and 7% to $19.12 billion for the full year 2024 compared to
the prior year periods.
- Organic revenue growth was 13% in the fourth quarter of 2024,
led by 23% growth in the Merchant Solutions segment and 4% growth
in the Financial Solutions segment.
- Organic revenue growth was 16% for the full year 2024, led by
27% growth in the Merchant Solutions segment and 6% growth in the
Financial Solutions segment.
- Adjusted earnings per share increased 15% to $2.51 in the
fourth quarter and 17% to $8.80 for the full year 2024 compared to
the prior year periods.
- Adjusted operating margin increased 180 basis points to 42.9%
in the fourth quarter and 170 basis points to 39.4% for the full
year 2024 compared to the prior year periods.
- Adjusted operating margin increased 150 basis points to 39.2%
in the Merchant Solutions segment and 320 basis points to 51.7% in
the Financial Solutions segment in the fourth quarter of 2024,
compared to the prior year period.
- Adjusted operating margin increased 290 basis points to 37.0%
in the Merchant Solutions segment and 130 basis points to 47.3% in
the Financial Solutions segment for the full year 2024, compared to
the prior year.
- The company repurchased 6.1 million shares of common stock for
$1.3 billion in the fourth quarter and 33.9 million shares of
common stock for $5.5 billion in the full year 2024.
- In January 2025, Fiserv was named one of Fortune® World’s Most
Admired Companies™, a recognition received by the company for 10 of
the last 11 years.
Outlook for 2025
Fiserv expects organic revenue growth of 10% to 12% and adjusted
earnings per share of $10.10 to $10.30, representing growth of 15%
to 17%, for 2025.
“We are confident in our ability to meet or beat the medium-term
outlook provided at our November 2023 investor conference, as
ongoing Merchant and Financial Solutions initiatives are having
early success,” said Bisignano. “Our 2025 guidance reflects a
continuation of our product, client and distribution strategies and
our commitment to operational excellence to drive
outperformance.”
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 and full year ended December
31, 2023 have been recast to reflect the Segment Realignment.
Earnings Conference Call
The company will discuss its fourth quarter and full year 2024
results in a live webcast at 7 a.m. CT on Wednesday, February 5,
2025. 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 one of
Fortune® World’s Most Admired Companies™. 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 and terminated
pension plan settlement charges; severance costs; merger and
integration costs; gains or losses from the sale of businesses,
certain assets or investments; and certain discrete tax benefits
and expenses. 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 revenue growth excluding the impact of foreign currency
fluctuations, acquisitions, dispositions and the impact of the
company’s postage reimbursements. 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 in 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, 2023, 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,
2024
2023
2024
2023
Revenue
Processing and services
$
4,260
$
4,025
$
16,637
$
15,630
Product
991
892
3,819
3,463
Total revenue
5,251
4,917
20,456
19,093
Expenses
Cost of processing and services
1,320
1,265
5,363
5,332
Cost of product
699
577
2,650
2,338
Selling, general and administrative
1,564
1,624
6,564
6,576
Net (gain) loss on sale of businesses and
other assets
—
5
—
(167
)
Total expenses
3,583
3,471
14,577
14,079
Operating income
1,668
1,446
5,879
5,014
Interest expense, net
(323
)
(284
)
(1,195
)
(976
)
Other expense, net
(161
)
(59
)
(178
)
(140
)
Income before income taxes and loss
from investments in unconsolidated affiliates
1,184
1,103
4,506
3,898
Income tax provision
(193
)
(210
)
(641
)
(754
)
Loss from investments in unconsolidated
affiliates
(43
)
(4
)
(685
)
(15
)
Net income
948
889
3,180
3,129
Less: net income attributable to
noncontrolling interests
10
19
49
61
Net income attributable to
Fiserv
$
938
$
870
$
3,131
$
3,068
GAAP earnings per share attributable to
Fiserv – diluted
$
1.64
$
1.45
$
5.38
$
4.98
Diluted shares used in computing
earnings per share attributable to Fiserv
571.4
602.7
582.1
615.9
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,
2024
2023
2024
2023
GAAP net income attributable to
Fiserv
$
938
$
870
$
3,131
$
3,068
Adjustments:
Merger and integration costs 1
22
38
81
158
Severance costs
80
22
157
74
Amortization of acquisition-related
intangible assets 2
335
378
1,420
1,623
Non wholly-owned entity activities 3
22
31
100
133
Impairment of equity method investments
4
25
—
635
—
Non-cash settlement charge for terminated
pension plans 5
147
—
147
—
Net (gain) loss on sale of businesses and
other assets 6
—
5
—
(167
)
Canadian tax law change 7
—
—
—
27
Tax impact of adjustments 8
(132
)
(94
)
(548
)
(355
)
Argentine Peso devaluation 9
—
71
—
71
Adjusted net income
$
1,437
$
1,321
$
5,123
$
4,632
GAAP earnings per share attributable to
Fiserv - diluted
$
1.64
$
1.45
$
5.38
$
4.98
Adjustments – net of income taxes:
Merger and integration costs 1
0.03
0.05
0.11
0.21
Severance costs
0.11
0.03
0.22
0.10
Amortization of acquisition-related
intangible assets 2
0.47
0.50
1.95
2.11
Non wholly-owned entity activities 3
0.03
0.04
0.14
0.17
Impairment of equity method investments
4
0.07
—
0.85
—
Non-cash settlement charge for terminated
pension plans 5
0.16
—
0.16
—
Net (gain) loss on sale of businesses and
other assets 6
—
0.01
—
(0.19
)
Canadian tax law change 7
—
—
—
0.04
Argentine Peso devaluation 9
—
0.12
—
0.12
Adjusted earnings per share
$
2.51
$
2.19
$
8.80
$
7.52
GAAP earnings per share attributable to
Fiserv growth
13
%
8
%
Adjusted earnings per share growth
15
%
17
%
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 acquisitions. Merger
and integration costs associated with integration activities for
the full year 2024 primarily include $23 million of third-party
professional service fees, $22 million of share-based compensation,
and $14 million related to a legal settlement. Merger and
integration costs associated with integration activities for the
full year 2023 primarily include $70 million of third-party
professional service fees and $35 million of share-based
compensation.
2
Represents amortization of intangible
assets acquired through acquisition, 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.
4
Represents a non-cash impairment of
certain equity method investments during 2024, primarily related to
the company’s Wells Fargo Merchant Services joint venture, recorded
within loss from investments in unconsolidated affiliates in the
consolidated statement of income.
5
Represents a non-cash settlement charge
associated with the terminations of the company’s defined benefit
pension plans in the United Kingdom and United States. Settlements
of the terminated plans were completed in the fourth quarter of
2024.
6
Represents a net gain for the full year
primarily associated with the sale of the company’s financial
reconciliation business during 2023.
7
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.
8
The tax impact of adjustments is
calculated using a tax rate of 20% for both the full year 2024 and
2023, which approximates the company’s annual effective tax rate,
exclusive of actual tax impacts of an aggregate $196 million
benefit associated with the impairment of certain equity method
investments and the settlement charge for terminated pension plans
during 2024, and a $48 million provision associated with the net
gain on sale of businesses during 2023.
9
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,
2024
2023
2024
2023
Total Company
Revenue
$
5,251
$
4,917
$
20,456
$
19,093
Adjustments:
Postage reimbursements
(349
)
(320
)
(1,333
)
(1,247
)
Deferred revenue purchase accounting
adjustments
—
3
—
19
Adjusted revenue
$
4,902
$
4,600
$
19,123
$
17,865
Operating income
$
1,668
$
1,446
$
5,879
$
5,014
Adjustments:
Merger and integration costs 1
22
38
81
158
Severance costs
80
22
157
74
Amortization of acquisition-related
intangible assets
335
378
1,420
1,623
Net (gain) loss on sale of businesses and
other assets
—
5
—
(167
)
Canadian tax law change
—
—
—
27
Adjusted operating income
$
2,105
$
1,889
$
7,537
$
6,729
Operating margin
31.8
%
29.4
%
28.7
%
26.3
%
Adjusted operating margin
42.9
%
41.1
%
39.4
%
37.7
%
Merchant Solutions (“Merchant”)
2
Revenue
$
2,499
$
2,261
$
9,631
$
8,722
Operating income
$
979
$
851
$
3,561
$
2,974
Operating margin
39.2
%
37.7
%
37.0
%
34.1
%
Financial Solutions
(“Financial”)
Revenue
$
2,401
$
2,331
$
9,477
$
9,101
Adjustments:
Deferred revenue purchase accounting
adjustments
—
3
—
19
Adjusted revenue
$
2,401
$
2,334
$
9,477
$
9,120
Operating income
$
1,241
$
1,128
$
4,485
$
4,178
Adjustments:
Deferred revenue purchase accounting
adjustments
—
3
—
19
Adjusted operating income
$
1,241
$
1,131
$
4,485
$
4,197
Operating margin
51.7
%
48.4
%
47.3
%
45.9
%
Adjusted operating margin
51.7
%
48.5
%
47.3
%
46.0
%
Fiserv, Inc.
Financial Results by Segment
(cont.)
(In millions, unaudited)
Three Months Ended December
31,
Year Ended December 31,
2024
2023
2024
2023
Corporate and Other
Revenue
$
351
$
325
$
1,348
$
1,270
Adjustments:
Postage reimbursements
(349
)
(320
)
(1,333
)
(1,247
)
Adjusted revenue
$
2
$
5
$
15
$
23
Operating loss
$
(552
)
$
(533
)
$
(2,167
)
$
(2,138
)
Adjustments:
Merger and integration costs
22
35
81
139
Severance costs
80
22
157
74
Amortization of acquisition-related
intangible assets
335
378
1,420
1,623
Net (gain) loss on sale of businesses and
other assets
—
5
—
(167
)
Canadian tax law change
—
—
—
27
Adjusted operating loss
$
(115
)
$
(93
)
$
(509
)
$
(442
)
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 deferred revenue purchase
accounting adjustments within the Financial segment related to the
2019 acquisition of First Data Corporation. Adjustments for this
residual activity concluded as of December 31, 2023.
2
For all periods presented in the Merchant
segment, 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,
2024
2023
Cash flows from operating
activities
Net income
$
3,180
$
3,129
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and other amortization
1,672
1,479
Amortization of acquisition-related
intangible assets
1,423
1,642
Amortization of financing costs and debt
discounts
43
41
Share-based compensation
367
342
Deferred income taxes
(662
)
(511
)
Net gain on sale of businesses and other
assets
—
(167
)
Loss from investments in unconsolidated
affiliates
685
15
Distributions from unconsolidated
affiliates
39
55
Non-cash settlement charge for terminated
pension plans
147
—
Non-cash foreign currency exchange
loss
92
76
Other operating activities
(17
)
(27
)
Changes in assets and liabilities, net of
effects from acquisitions and dispositions:
Trade accounts receivable
(169
)
23
Prepaid expenses and other assets
(398
)
(790
)
Contract costs
(267
)
(246
)
Accounts payable and other liabilities
426
(54
)
Contract liabilities
70
155
Net cash provided by operating
activities
6,631
5,162
Cash flows from investing
activities
Capital expenditures, including
capitalized software and other intangibles
(1,569
)
(1,388
)
Net proceeds from sale of businesses and
other assets
—
234
Merchant cash advances, net
(801
)
—
Payments for acquisitions of businesses,
net of cash acquired
—
(13
)
Distributions from unconsolidated
affiliates
60
136
Purchases of investments
(155
)
(39
)
Proceeds from sale of investments
61
5
Other investing activities
—
(3
)
Net cash used in investing
activities
(2,404
)
(1,068
)
Cash flows from financing
activities
Debt proceeds
6,783
5,567
Debt repayments
(5,396
)
(3,015
)
Net borrowings from (repayments of)
commercial paper and short-term borrowings
278
(1,456
)
Payments of debt financing costs
(28
)
(38
)
Proceeds from issuance of treasury
stock
97
101
Purchases of treasury stock, including
employee shares withheld for tax obligations
(5,837
)
(4,827
)
Settlement activity, net
—
(527
)
Distributions paid to noncontrolling
interests and redeemable noncontrolling interest
(55
)
(34
)
Payment to acquire noncontrolling interest
of consolidated subsidiary
—
(56
)
Payments of acquisition-related contingent
consideration
(3
)
(35
)
Other financing activities
(4
)
(36
)
Net cash used in financing
activities
(4,165
)
(4,356
)
Effect of exchange rate changes on cash
and cash equivalents
(32
)
33
Net change in cash and cash
equivalents
30
(229
)
Cash and cash equivalents, beginning
balance
2,963
3,192
Cash and cash equivalents, ending
balance
$
2,993
$
2,963
Fiserv, Inc.
Condensed Consolidated Balance
Sheets
(In millions, unaudited)
December 31,
2024
2023
Assets
Cash and cash equivalents
$
1,236
$
1,204
Trade accounts receivable – net
3,725
3,582
Prepaid expenses and other current
assets
3,087
2,344
Settlement assets
15,429
27,681
Total current assets
23,477
34,811
Property and equipment – net
2,374
2,161
Customer relationships – net
5,868
7,075
Other intangible assets – net
4,072
4,135
Goodwill
36,584
37,205
Contract costs – net
996
968
Investments in unconsolidated
affiliates
1,506
2,262
Other long-term assets
2,299
2,273
Total assets
$
77,176
$
90,890
Liabilities and Equity
Accounts payable and other current
liabilities
$
4,799
$
4,355
Short-term and current maturities of
long-term debt
1,110
755
Contract liabilities
819
761
Settlement obligations
15,429
27,681
Total current liabilities
22,157
33,552
Long-term debt
23,730
22,363
Deferred income taxes
2,477
3,078
Long-term contract liabilities
263
250
Other long-term liabilities
863
978
Total liabilities
49,490
60,221
Redeemable noncontrolling interest
—
161
Fiserv shareholders’ equity
27,068
29,857
Noncontrolling interests
618
651
Total equity
27,686
30,508
Total liabilities and equity
$
77,176
$
90,890
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,
2024
2023
Growth
2024
2023
Growth
Total Company
Adjusted revenue
$
4,902
$
4,600
$
19,123
$
17,865
Currency impact 2
294
—
1,621
—
Acquisition adjustments
(1
)
—
(10
)
—
Divestiture adjustments
(2
)
(5
)
(15
)
(46
)
Organic revenue
$
5,193
$
4,595
13
%
$
20,719
$
17,819
16
%
Merchant
Adjusted revenue
$
2,499
$
2,261
$
9,631
$
8,722
Currency impact 2
274
—
1,499
—
Acquisition adjustments
(1
)
—
(10
)
—
Organic revenue
$
2,772
$
2,261
23
%
$
11,120
$
8,722
27
%
Financial
Adjusted revenue
$
2,401
$
2,334
$
9,477
$
9,120
Currency impact 2
20
—
122
—
Divestiture adjustments
—
—
—
(23
)
Organic revenue
$
2,421
$
2,334
4
%
$
9,599
$
9,097
6
%
Corporate and Other
Adjusted revenue
$
2
$
5
$
15
$
23
Divestiture adjustments
(2
)
(5
)
(15
)
(23
)
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,
2024
2023
Net cash provided by operating
activities
$
6,631
$
5,162
Capital expenditures
(1,569
)
(1,388
)
Adjustments:
Distributions paid to noncontrolling
interests and redeemable noncontrolling interest
(55
)
(34
)
Distributions from unconsolidated
affiliates included in cash flows from investing activities
60
136
Severance, merger and integration
payments
179
169
Tax payments on adjustments
(36
)
(34
)
Other
23
5
Free cash flow
$
5,233
$
4,016
Total Amortization 1
Three Months Ended December
31,
Year Ended December 31,
2024
2023
2024
2023
Acquisition-related intangible assets
$
334
$
381
$
1,423
$
1,642
Capitalized software and other
intangibles
167
133
631
493
Purchased software
57
58
232
225
Financing costs and debt discounts
10
11
43
41
Sales commissions
29
27
113
110
Deferred conversion costs
26
24
108
85
Total amortization
$
623
$
634
$
2,550
$
2,596
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 2025, 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 2025 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
2025 Revenue
9% - 11%
Postage reimbursements
(0.5)%
2025 Adjusted revenue
8.5% - 10.5%
Currency impact
1.5%
Acquisition adjustments
—%
Divestiture adjustments
—%
2025 Organic revenue
10% - 12%
Adjusted Earnings Per Share - The company’s adjusted earnings
per share outlook for 2025 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 2025 with respect to acquired intangible assets will
decrease approximately 10% compared to the amount incurred in
2024.
Other adjustments to the company’s financial measures that were
incurred in 2024 are presented in this news release; however, they
are not necessarily indicative of adjustments that may be incurred
throughout 2025 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.
FI-G
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250205957861/en/
Media Relations: Sophia Marshall Senior Vice President,
Communications Fiserv, Inc. 470-351-9908
sophia.marshall@fiserv.com
Investor Relations: Julie Chariell Senior Vice President,
Investor Relations Fiserv, Inc. 212-515-0278
julie.chariell@fiserv.com
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