10-KPeriod: FY2023

FISERV INC Annual Report, Year Ended Dec 31, 2023

Filed February 22, 2024For Securities:FISV

Summary

Fiserv, Inc. (FISV) reported a strong financial performance for the year ended December 31, 2023, with total revenue increasing by 8% to $19.1 billion, driven primarily by growth in its Acceptance segment. Operating income saw a substantial 34% increase, reaching $5.0 billion, reflecting improved operating margins across all segments and benefits from cost management initiatives, including reduced amortization and severance costs, as well as a gain from a business divestiture. The company generated robust operating cash flow of $5.2 billion, demonstrating its ability to fund operations, debt obligations, and strategic investments. Fiserv continues to focus on its core strategy of delivering value through technology and innovation, expanding its product and service offerings to merchants and financial institutions. The company's diverse business segments—Acceptance, Fintech, and Payments—collectively contribute to its stable, recurring revenue model. Despite a challenging macroeconomic environment with rising interest rates and inflation, Fiserv has demonstrated resilience and strategic execution, with a clear focus on client relationship value, innovation, and operational effectiveness. The company also actively manages its capital through share repurchases and strategic acquisitions, reinforcing its commitment to long-term shareholder value.

Financial Highlights

51 data points
Beta

Revenue

$19.09B

Net Income

$3.07B

16.1% Net Margin

EPS (Diluted)

$4.98

Total Assets

$90.89B

Cash & Equivalents

$1.20B

Free Cash Flow

$3.77B

Financial Statements
Beta
Revenue$19.09B
SG&A Expenses$6.58B
Operating Expenses$14.08B
Operating Income$5.01B
Interest Expense$1.00B
Net Income$3.07B
EPS (Basic)$5.02
EPS (Diluted)$4.98
Shares Outstanding (Basic)611.70M
Shares Outstanding (Diluted)615.90M

Key Highlights

  • 1Total revenue increased by 8% to $19.1 billion in 2023, driven by strong performance in the Acceptance segment (+12%).
  • 2Operating income surged by 34% to $5.0 billion, with operating margin expanding by 520 basis points to 26.3%, reflecting improved efficiency and strategic cost management.
  • 3Net income attributable to Fiserv, Inc. increased by 21% to $3.1 billion, resulting in diluted earnings per share of $4.98.
  • 4Operating cash flow was robust at $5.2 billion, a 12% increase from the prior year, underscoring strong operational cash generation.
  • 5The company completed several strategic acquisitions in 2023, including Skytef and Sled, to expand its reach and capabilities in key markets.
  • 6Fiserv continues to actively repurchase its shares, repurchasing $4.7 billion in 2023, demonstrating a commitment to returning capital to shareholders.
  • 7The company maintained compliance with all financial debt covenants, highlighting financial stability despite a significant debt load of approximately $23.1 billion.

Frequently Asked Questions

Fiserv's total revenue increased by 8% to $19.1 billion in 2023. This growth was primarily driven by a 12% increase in the Acceptance segment, fueled by higher merchant acquiring payment volumes and contributions from its Clover and Carat operating systems. The Payments segment also saw a 7% increase, largely due to growth in debit and credit processing businesses.

Fiserv demonstrated significant profitability improvements in 2023. Operating income rose by 34% to $5.0 billion, and operating margin expanded by 520 basis points to 26.3%. This was attributed to strong operating leverage, effective expense management, reduced amortization of acquisition-related intangible assets, and a gain from the sale of its financial reconciliation business.

Fiserv generated a strong $5.2 billion in operating cash flow in 2023, a 12% increase from the prior year, indicating healthy cash generation capabilities. As of December 31, 2023, the company had approximately $1.2 billion in cash and cash equivalents and total debt of $23.1 billion, with the company maintaining compliance with all its debt covenants. Fiserv's liquidity appears sufficient to meet its short-term and long-term financial obligations.

Fiserv's strategic priorities include enhancing client relationship value, driving innovation, achieving operational effectiveness, disciplined portfolio management (including acquisitions and divestitures), and maintaining capital discipline. These are evident in the company's consistent revenue growth, investment in new products and services like Clover and Carat, successful integration of acquisitions, and active share repurchase programs. The company is also planning a segment realignment effective March 31, 2024, to further enhance operational performance.