8-KEarnings & ResultsOther EventsExhibits & Filings

FISERV INC 8-K Report, Financial Results (Nov 15, 2023)

Filed November 15, 2023For Securities:FISV

Summary

Fiserv Inc. (FISV) announced in this Form 8-K a significant change in its reporting structure, realigning its business into two new reportable segments: Merchant Solutions and Financial Solutions. This change is expected to be effective starting with the first quarter of 2024. The company also provided updated historical revenue information under the new segment structure and introduced preliminary organic revenue growth outlooks for 2024 and the medium term (2025-2026). The new segments are designed to enhance operational performance and better reflect the integrated nature of their offerings to clients. Investors should note that the company is providing non-GAAP measures for revenue and growth, with specific exclusions for foreign currency fluctuations, acquisitions, dispositions, and postage reimbursements. Reconciliations for historical non-GAAP measures are available, though forward-looking reconciliations are not provided due to inherent variability.

Key Highlights

  • 1Fiserv is realigning its business into two new reportable segments: Merchant Solutions and Financial Solutions, effective March 31, 2024.
  • 2The company provided updated historical revenue information under the new segment structure, available in Exhibit 99.1.
  • 3Preliminary organic revenue growth outlook for 2024 is 11% - 13% for the Total Company.
  • 4Medium-term (2025-2026) organic revenue growth outlook for the Total Company is projected at 9% - 12%.
  • 5Merchant Solutions is expected to be the faster-growing segment, with an 18%-20% organic revenue growth outlook for 2024.
  • 6Financial Solutions is projected to grow organically at 5%-7% in 2024.
  • 7Organic revenue growth metrics exclude foreign currency, acquisitions, dispositions, and postage reimbursements.

Frequently Asked Questions

The new segment reporting structure, with Merchant Solutions and Financial Solutions as the primary segments, is expected to be effective for the quarter ending March 31, 2024. Prior periods will be adjusted accordingly in subsequent filings.

The Merchant Solutions segment includes businesses providing commerce-enabling products and services such as merchant acquiring, digital commerce services, mobile payments, security and fraud protection, stored-value solutions, pay-by-bank solutions, serving both small and enterprise businesses, as well as processing services for third-party resellers and financial institutions.

The Financial Solutions segment encompasses products and services for financial institutions, corporate, and public sector clients. This includes processing for customer loan and deposit accounts, digital banking, financial and risk management, check processing, debit and credit card processing, debit network services, bill payment, person-to-person payments, account-to-account transfers, and card production services.

Fiserv's organic revenue growth excludes the impact of foreign currency fluctuations, acquisitions, dispositions, and postage reimbursements. This allows for a focus on the underlying performance and trends of the company's existing businesses.