10-QPeriod: Q2 FY2021

FISERV INC Quarterly Report for Q2 Ended Jun 30, 2021

Filed July 28, 2021For Securities:FISV

Summary

Fiserv, Inc. reported strong performance in its Q2 2021 earnings, with total revenue increasing by 17% to $4.1 billion for the quarter and 8% to $7.8 billion for the first six months. This growth was driven by a significant rebound in merchant acquiring and payment volumes, recovering from COVID-19 impacts seen in the prior year. Net income attributable to Fiserv, Inc. saw a substantial rise to $269 million for the quarter, up from $2 million in Q2 2020, and $573 million for the six-month period, up from $394 million in the prior year. The company also demonstrated improved profitability with operating income increasing by 290% in the quarter and 41% year-to-date. Strategic acquisitions in early 2021, including Ondot, Pineapple Payments, and Spend Labs, are expected to further enhance Fiserv's digital capabilities and payment solutions. The company continues to manage its capital effectively, with robust operating cash flow generation and a solid liquidity position. Despite ongoing economic uncertainties related to the pandemic, Fiserv's performance indicates a strong recovery and positive momentum across its key business segments.

Financial Statements
Beta
Revenue$4.05B
SG&A Expenses$1.44B
Operating Expenses$3.41B
Operating Income$644.00M
Interest Expense$176.00M
Net Income$269.00M
EPS (Basic)$0.41
EPS (Diluted)$0.40
Shares Outstanding (Basic)663.70M
Shares Outstanding (Diluted)672.70M

Key Highlights

  • 1Total revenue for Q2 2021 increased 17% year-over-year to $4.1 billion, and 8% for the first six months to $7.8 billion, driven by recovering payment volumes.
  • 2Net income attributable to Fiserv, Inc. surged to $269 million in Q2 2021 from $2 million in Q2 2020, and $573 million year-to-date, up from $394 million.
  • 3Operating income saw a significant increase of 290% in Q2 2021 to $644 million and 41% for the first six months to $1.1 billion, indicating improved profitability and operating leverage.
  • 4The company completed several strategic acquisitions in early 2021, including Ondot, Pineapple Payments, and Spend Labs, to bolster its digital offerings and market position.
  • 5Operating cash flow remained strong at $2.0 billion for the first six months of 2021, an increase of 5% compared to the prior year.
  • 6Fiserv maintained a solid liquidity position with $841 million in cash and cash equivalents and substantial availability under its revolving credit facility.
  • 7The company noted a favorable trend in its merchant acquiring and payment-related businesses, with improved transaction volumes recovering from COVID-19 impacts.

Frequently Asked Questions

Fiserv's total revenue increased by 17% to $4.1 billion in the second quarter of 2021, compared to $3.5 billion in the second quarter of 2020. This growth was primarily attributed to improved payment and transaction volumes in its merchant acquiring and payment-related businesses, which had been negatively impacted by the COVID-19 pandemic in the prior year.

Profitability improved significantly. Net income attributable to Fiserv, Inc. rose to $269 million in the second quarter of 2021 from just $2 million in the second quarter of 2020. Operating income also saw a substantial increase of 290% to $644 million, reflecting improved operating leverage and strong revenue growth.

Yes, Fiserv completed several strategic acquisitions in early 2021. These include Ondot Systems, Inc. (acquiring the remaining ownership interest), Pineapple Payments Holdings, LLC, and Spend Labs Inc. These acquisitions are expected to enhance the company's digital capabilities and payment solutions.

Fiserv maintained a strong liquidity position with $841 million in cash and cash equivalents as of June 30, 2021. The company generated $2.0 billion in operating cash flow for the first six months of 2021. Fiserv also has significant availability under its revolving credit facility. The company reported compliance with all financial debt covenants during the period.