10-KPeriod: FY2020

FISERV INC Annual Report, Year Ended Dec 31, 2020

Filed February 26, 2021For Securities:FISV

Summary

Fiserv, Inc.'s (FISV) 2020 Form 10-K highlights a year marked by significant growth driven by the acquisition of First Data Corporation in July 2019. Total revenue increased substantially to $14.85 billion, reflecting a 46% rise year-over-year. While the company navigated the economic impacts of the COVID-19 pandemic, its diversified business segments, including Merchant Acceptance, Fintech, and Payments, demonstrated resilience. The company focused on integrating First Data, achieving synergies, and managing operational effectiveness. The report details significant investments in technology and ongoing efforts to enhance client relationships through innovation and digital solutions. Despite the challenges posed by the pandemic, Fiserv maintained a strong financial position with $4.1 billion in operating cash flow and a substantial debt load primarily due to the First Data acquisition. The company's strategy centers on delivering value through technology, innovation, and operational excellence. Key areas of focus include expanding digital capabilities, driving revenue growth, and managing costs effectively while maintaining a strong competitive position in the dynamic financial technology landscape. Investors can look to Fiserv's continued integration of First Data and its strategic investments in new technologies as key drivers for future performance.

Financial Highlights

51 data points
Beta

Revenue

$14.85B

Net Income

$958.00M

6.5% Net Margin

EPS (Diluted)

$1.40

Total Assets

$74.62B

Cash & Equivalents

$906.00M

Free Cash Flow

$3.25B

Financial Statements
Beta
Revenue$14.85B
SG&A Expenses$5.65B
Operating Expenses$13.00B
Operating Income$1.85B
Interest Expense$716.00M
Net Income$958.00M
EPS (Basic)$1.42
EPS (Diluted)$1.40
Shares Outstanding (Basic)672.10M
Shares Outstanding (Diluted)683.40M

Key Highlights

  • 1Fiserv reported total revenue of $14.85 billion for 2020, a 46% increase from 2019, largely driven by the acquisition of First Data Corporation.
  • 2The company generated $4.1 billion in net cash provided by operating activities, demonstrating strong cash flow generation.
  • 3Fiserv's business is segmented into Acceptance, Fintech, and Payments, with the First Data acquisition significantly bolstering the Acceptance and Payments segments.
  • 4The company actively manages its portfolio through strategic acquisitions and divestitures, as evidenced by several smaller acquisitions in 2020.
  • 5Fiserv is focused on integrating First Data, achieving cost synergies, and enhancing operational efficiency to drive long-term value.
  • 6The company acknowledges the impact of the COVID-19 pandemic on its operations, particularly transaction volumes in its merchant acquiring business, but notes signs of recovery.
  • 7Fiserv continues to invest in innovation, with a focus on digital banking, e-commerce, and point-of-sale solutions like its Clover platform.

Frequently Asked Questions

The acquisition of First Data Corporation in July 2019 significantly boosted Fiserv's total revenue, contributing $5.07 billion in 2020 and driving a 46% overall revenue increase to $14.85 billion. This integration was a primary focus for the company, with efforts concentrated on realizing synergies and optimizing operations across the combined entity.

The First Data acquisition was financed through a combination of cash, debt issuance (senior notes), and credit facilities. As of December 31, 2020, Fiserv had approximately $20.7 billion in long-term debt. The company actively manages its debt through refinancing and adheres to its debt covenants, utilizing its strong operating cash flow to service its obligations.

Fiserv's strategy centers on delivering superior value through leading technology and targeted innovation. Key strategic priorities include successfully integrating First Data, building high-quality revenue, enhancing client relationships with a focus on digital and payment solutions, and driving innovation. The company aims to capitalize on evolving industry trends like the growth of digital payments and e-commerce.

The COVID-19 pandemic adversely impacted Fiserv's merchant acquiring and payment-related businesses due to reduced transaction volumes. However, the company saw a partial recovery in payment volumes starting in May 2020. Fiserv also implemented measures to protect its employees and maintain business continuity, including remote work and enhanced safety protocols.