10-KPeriod: FY2024

FISERV INC Annual Report, Year Ended Dec 31, 2024

Filed February 20, 2025For Securities:FISV

Summary

Fiserv, Inc. (FISV) reported strong performance for the year ended December 31, 2024, with total revenue reaching $20.5 billion, a 7% increase year-over-year. Operating income also saw a substantial 17% rise to $5.9 billion, indicating improved profitability and operational leverage. The company's strategic focus on integrating solutions, driving innovation, and maintaining operational effectiveness continues to yield positive results across its Merchant and Financial Solutions segments. Key drivers for revenue growth included increased payment volumes in the Merchant segment, particularly from Small Business and Enterprise offerings, and growth in transaction volumes in the Financial segment's Digital Payments and Issuing businesses. The company also made significant strides in managing expenses, with total expenses as a percentage of revenue decreasing due to operational efficiencies. Fiserv is actively pursuing growth through strategic acquisitions, with pending acquisitions of CCV Group B.V. and Payfare Inc. expected to close in early 2025, further bolstering its capabilities in POS payment solutions and workforce financial solutions, respectively. The company's robust operating cash flow of $6.6 billion supports its capital allocation strategy, which includes ongoing share repurchases and strategic investments.

Financial Highlights

50 data points
Beta

Revenue

$20.46B

Net Income

$3.13B

15.3% Net Margin

EPS (Diluted)

$5.38

Total Assets

$77.18B

Cash & Equivalents

$1.24B

Free Cash Flow

$5.06B

Financial Statements
Beta
Revenue$20.46B
SG&A Expenses$6.56B
Operating Expenses$14.58B
Operating Income$5.88B
Net Income$3.13B
EPS (Basic)$5.41
EPS (Diluted)$5.38
Shares Outstanding (Basic)578.70M
Shares Outstanding (Diluted)582.10M

Key Highlights

  • 1Total revenue increased by 7% to $20.5 billion in 2024, driven by growth in both Merchant and Financial segments.
  • 2Operating income grew by 17% to $5.9 billion, reflecting strong operational leverage and efficiency gains.
  • 3The Merchant segment saw a 10% revenue increase, with Small Business and Enterprise solutions performing well.
  • 4The Financial segment reported a 4% revenue increase, with Digital Payments and Issuing businesses showing positive trends.
  • 5Fiserv generated $6.6 billion in net cash provided by operating activities, demonstrating strong cash generation.
  • 6The company continues to return capital to shareholders through share repurchases, with $5.5 billion repurchased in 2024.
  • 7Two strategic acquisitions, CCV Group B.V. and Payfare Inc., are pending and expected to close in the first quarter of 2025, enhancing the company's service offerings.

Frequently Asked Questions

Fiserv's revenue growth in 2024 was primarily driven by increased global processing revenue across its businesses. Specifically, the Merchant segment benefited from higher payment volumes in Small Business and transaction growth in Enterprise solutions. The Financial segment saw growth from increased transaction volumes in Digital Payments, including Zelle® transactions, and growth in active accounts within Issuing.

Fiserv improved its expense management in 2024, with total expenses as a percentage of total revenue decreasing by 240 basis points to 71.3%. This improvement was attributed to operating leverage across its businesses, a reduction in amortization of acquisition-related intangible assets, and effective expense management initiatives. Cost of processing and services as a percentage of revenue also decreased due to strong operating leverage.

Fiserv's strategy focuses on client relationship value through integration and innovation, operational effectiveness leveraging its scale, disciplined portfolio management including acquisitions and divestitures, and capital discipline. The company aims to enhance client value by introducing new and integrated products and services, and to drive operational efficiency and cost reduction.

Fiserv continues to pursue strategic acquisitions to bolster its offerings, with pending acquisitions of CCV Group B.V. and Payfare Inc. expected to close in the first quarter of 2025. The company plans to use its operating cash flow to fund capital expenditures, share repurchases, acquisitions, and debt repayment, rather than paying dividends.