10-KPeriod: FY2022

FISERV INC Annual Report, Year Ended Dec 31, 2022

Filed February 23, 2023For Securities:FISV

Summary

Fiserv, Inc. (FISV) reported a strong year in 2022, with total revenue increasing by 9% to $17.7 billion, driven by growth across all its key segments: Acceptance, Fintech, and Payments. The company demonstrated improved profitability, with operating income rising significantly by 63% to $3.7 billion, leading to a substantial increase in net income attributable to Fiserv, Inc. by 90% to $2.53 billion. This financial performance reflects effective revenue growth strategies, including expansion in merchant acquiring volumes and growth in its Clover operating system, coupled with improvements in operational effectiveness and favorable impacts from acquisition-related expense reductions. Fiserv continues to execute on its strategy of acquiring complementary businesses, with several strategic acquisitions in 2022 aimed at enhancing its payment and digital banking solutions. The company also generated a net gain from the sale of businesses and other assets, contributing to its financial results. Management remains focused on client relationship value, innovation, and operational effectiveness. Despite a challenging macroeconomic environment, Fiserv's core business model, characterized by non-discretionary, recurring revenue, positions it well for continued performance. The company's robust operating cash flow supports its capital allocation priorities, including share repurchases and strategic investments.

Financial Highlights

51 data points
Beta

Revenue

$17.74B

Net Income

$2.53B

14.3% Net Margin

EPS (Diluted)

$3.91

Total Assets

$83.87B

Cash & Equivalents

$902.00M

Free Cash Flow

$3.14B

Financial Statements
Beta
Revenue$17.74B
SG&A Expenses$6.06B
Operating Expenses$14.00B
Operating Income$3.74B
Interest Expense$746.00M
Net Income$2.53B
EPS (Basic)$3.94
EPS (Diluted)$3.91
Shares Outstanding (Basic)642.30M
Shares Outstanding (Diluted)647.90M

Key Highlights

  • 1Total revenue grew 9% to $17.7 billion, driven by strong performance across all segments (Acceptance, Fintech, Payments).
  • 2Operating income increased significantly by 63% to $3.7 billion, reflecting revenue growth and cost efficiencies.
  • 3Net income attributable to Fiserv, Inc. surged by 90% to $2.53 billion.
  • 4The company completed several strategic acquisitions in 2022, including Finxact, Merchant One, NexTable, and City POS, to bolster its payment and digital banking capabilities.
  • 5Operating cash flow increased by 14% to $4.6 billion, demonstrating strong cash generation.
  • 6Fiserv actively repurchased its common stock, repurchasing approximately $2.5 billion in 2022, and announced a new $75 billion repurchase authorization.

Frequently Asked Questions

In 2022, Fiserv reported total revenue of $17.7 billion, a 9% increase year-over-year. Operating income rose 63% to $3.7 billion, and net income attributable to Fiserv, Inc. increased by 90% to $2.53 billion. The company also generated $4.6 billion in net cash from operating activities.

All three segments demonstrated growth. The Acceptance segment saw revenue increase by 13% due to higher merchant acquiring volumes and growth in its Clover platform. The Fintech segment's revenue grew 5%, driven by increased processing revenue and license fees. The Payments segment experienced a 7% revenue increase, primarily from its debit and credit processing businesses.

Fiserv continues to pursue a strategy of acquiring businesses that align with its market, product, or financial strategies, or that address a compelling strategic need. In 2022, the company made several acquisitions, including Finxact, Merchant One, NexTable, and City POS, to enhance its digital banking and payment solutions and expand its market reach.

Fiserv maintained a strong liquidity position with $902 million in cash and cash equivalents and significant availability under its revolving credit facility. The company's current policy is to use operating cash flow primarily for capital expenditures, share repurchases, acquisitions, and debt repayment, rather than dividends. In 2022, Fiserv repurchased approximately $2.5 billion of its common stock and announced a new repurchase authorization of $75 billion.