10-KPeriod: FY2021

FISERV INC Annual Report, Year Ended Dec 31, 2021

Filed February 24, 2022For Securities:FISV

Summary

Fiserv Inc. reported a strong year for 2021, demonstrating significant revenue growth driven by increased transaction volumes across its core segments. The company's 'Acceptance' segment, which serves merchants, saw a substantial 17% revenue increase, largely due to improved payment and transaction volumes. The 'Fintech' and 'Payments' segments also experienced healthy growth, contributing to a 9% overall revenue increase to $16.2 billion. Despite a challenging macroeconomic environment impacted by COVID-19, Fiserv's diversified business model and essential services provided to clients have allowed for robust performance. The company continues to focus on strategic acquisitions and innovation, evident in its ongoing integration of recently acquired businesses and development of new solutions, positioning it well for continued growth in the dynamic financial technology landscape. The company also highlighted its strong operational effectiveness, noting cost synergies achieved from the First Data acquisition and a decrease in selling, general, and administrative expenses as a percentage of revenue.

Financial Highlights

51 data points
Beta

Revenue

$16.23B

Net Income

$1.33B

8.2% Net Margin

EPS (Diluted)

$1.99

Total Assets

$76.25B

Cash & Equivalents

$835.00M

Free Cash Flow

$2.87B

Financial Statements
Beta
Revenue$16.23B
SG&A Expenses$5.81B
Operating Expenses$13.94B
Operating Income$2.29B
Interest Expense$696.00M
Net Income$1.33B
EPS (Basic)$2.01
EPS (Diluted)$1.99
Shares Outstanding (Basic)662.60M
Shares Outstanding (Diluted)671.60M

Key Highlights

  • 1Total revenue increased by 9% to $16.2 billion in 2021, driven by broad-based transaction volume growth.
  • 2The Acceptance segment, serving merchants, saw a significant 17% revenue increase, reflecting a rebound in transaction volumes.
  • 3Operating income grew by 24% to $2.3 billion, with operating margins improving by 160 basis points to 14.1%, showcasing strong operating leverage.
  • 4The company achieved significant cost synergies from the First Data acquisition, completing integration activities for cost synergies and realizing 80% of its revenue synergy target.
  • 5Fiserv continued its strategic growth through several acquisitions in 2021, including BentoBox, Pineapple Payments, and Ondot Systems, to enhance its offerings in key areas.
  • 6The company maintained a strong liquidity position, with operating cash flow of $4.0 billion and ending cash and cash equivalents of $835 million.
  • 7Share repurchases remained a focus, with $2.6 billion of common stock repurchased in 2021.

Frequently Asked Questions

In 2021, Fiserv reported a 9% increase in total revenue to $16.2 billion and a 24% increase in operating income to $2.3 billion. This growth was driven by strong performance across its Acceptance, Fintech, and Payments segments, reflecting improved transaction volumes and operational efficiencies.

While the pandemic continued to present challenges, Fiserv's operating performance in 2021 was less adversely affected than in 2020, particularly in its merchant acquiring and payment-related businesses. Transaction volumes recovered and grew, demonstrating the essential nature of Fiserv's services. The company also implemented safety measures for its employees.

Fiserv's strategy focuses on delivering superior value through leading technology, targeted innovation, and operational excellence. This includes active portfolio management through acquisitions and divestitures, enhancing client relationships with a focus on digital and payment solutions, and driving integration value from acquisitions. The company also emphasizes innovation in its product development to meet evolving client needs.

Fiserv maintains a strong liquidity position with significant operating cash flow and cash reserves. The company actively manages its debt, utilizing a mix of fixed and variable rate instruments. It repurchased $2.6 billion of its common stock in 2021 and plans to continue allocating capital towards strategic initiatives, debt repayment, and share repurchases.