GAAP revenue growth of 7% both in the quarter
and year to date;
GAAP EPS increased 39% both in the quarter and
year to date;
Organic revenue growth of 18% in the quarter
and 19% year to date;
Adjusted EPS increased 18% both in the quarter
and year to date;
Company affirms 2024 organic revenue growth
outlook of 15% to 17%
and raises adjusted EPS outlook to $8.65 to
$8.80
Fiserv, Inc. (NYSE: FI), a leading global provider of payments
and financial services technology solutions, today reported
financial results for the second quarter of 2024.
Second Quarter 2024 GAAP Results
GAAP revenue for the company increased 7% to $5.11 billion in
the second quarter of 2024 compared to the prior year period, with
9% growth in the Merchant Solutions segment and 6% growth in the
Financial Solutions segment. GAAP revenue for the company increased
7% to $9.99 billion in the first six months of 2024 compared to the
prior year period, with 11% growth in the Merchant Solutions
segment and 4% growth in the Financial Solutions segment.
GAAP earnings per share was $1.53 in the second quarter and
$2.76 in the first six months of 2024, an increase of 39% compared
to both the second quarter and first six months of 2023. GAAP
operating margin was 28.0% and 26.1% in the second quarter and
first six months of 2024 compared to 23.8% and 22.2% in the second
quarter and first six months of 2023. GAAP operating margin in the
Merchant Solutions segment was 36.6% and 35.4% in the second
quarter and first six months of 2024 compared to 33.7% and 31.8% in
the second quarter and first six months of 2023. GAAP operating
margin in the Financial Solutions segment was 45.9% and 45.0% in
the second quarter and first six months of 2024 compared to 45.8%
and 44.1% in the second quarter and first six months of 2023. Net
cash provided by operating activities increased 8% to $2.17 billion
in the first six months of 2024 compared to $2.01 billion in the
prior year period.
“Fiserv once again delivered strong performance across the
business with 18% growth in both organic revenue and adjusted
earnings per share,” said Frank Bisignano, Chairman, President and
Chief Executive Officer of Fiserv. “Fiserv’s integrated solutions,
deep client relationships, and strategic positioning continue to
drive our industry leadership.”
Second Quarter 2024 Non-GAAP Results and Additional
Information
- Adjusted revenue increased 7% to $4.79 billion in the second
quarter and 7% to $9.34 billion in the first six months of 2024
compared to the prior year periods.
- Organic revenue growth was 18% in the second quarter of 2024,
led by 28% growth in the Merchant Solutions segment and 8% growth
in the Financial Solutions segment.
- Organic revenue growth was 19% in the first six months of 2024,
led by 32% growth in the Merchant Solutions segment and 6% growth
in the Financial Solutions segment.
- Adjusted earnings per share increased 18% to $2.13 in the
second quarter and 18% to $4.00 in the first six months of 2024
compared to the prior year periods.
- Adjusted operating margin increased 160 basis points to 38.4%
in the second quarter and 180 basis points to 37.2% in the first
six months of 2024 compared to the prior year periods.
- Adjusted operating margin increased 290 basis points to 36.6%
in the Merchant Solutions segment and was flat at 45.9% in the
Financial Solutions segment in the second quarter of 2024, compared
to the prior year period.
- Adjusted operating margin increased 360 basis points to 35.4%
in the Merchant Solutions segment and 80 basis points to 45.0% in
the Financial Solutions segment in the first six months of 2024,
compared to the prior year period.
- Free cash flow was $1.48 billion in the first six months of
2024 compared to $1.47 billion in the prior year period.
- The company repurchased 10.0 million shares of common stock for
$1.5 billion in the second quarter and 20.2 million shares of
common stock for $3.0 billion in the first six months of 2024.
Outlook for 2024
Fiserv continues to expect organic revenue growth of 15% to 17%
and raises adjusted earnings per share outlook to $8.65 to $8.80,
representing growth of 15% to 17%, for 2024.
“Encouraged by the strong results achieved in the first half of
the year, we are raising our full year 2024 adjusted earnings per
share outlook,” said Bisignano. “We expect to extend our track
record of sustainable growth and profitability given the strength
of our client franchise and continued wins in the marketplace.”
Segment Realignment
The company realigned its reportable segments during the first
quarter of 2024 to correspond with changes in its business designed
to further enhance operational performance in the delivery of its
integrated portfolio of products and solutions to its financial
institution clients (“Segment Realignment”). The company’s new
reportable segments are Merchant Solutions and Financial Solutions.
Segment results for the three and six months ended June 30, 2023
have been recast to reflect the Segment Realignment. Additional
information regarding the Segment Realignment is available in the
Current Report on Form 8-K filed by the company on March 26,
2024.
Earnings Conference Call
The company will discuss its second quarter 2024 results in a
live webcast at 7 a.m. CT on Wednesday, July 24, 2024. The webcast,
along with supplemental financial information, can be accessed on
the investor relations section of the Fiserv website at
investors.fiserv.com. A replay will be available approximately one
hour after the conclusion of the live webcast.
About Fiserv
Fiserv, Inc. (NYSE: FI), a Fortune 500™ company, aspires to move
money and information in a way that moves the world. As a global
leader in payments and financial technology, the company helps
clients achieve best-in-class results through a commitment to
innovation and excellence in areas including account processing and
digital banking solutions; card issuer processing and network
services; payments; e-commerce; merchant acquiring and processing;
and the Clover® cloud-based point-of-sale and business management
platform. Fiserv is a member of the S&P 500® Index and has been
recognized as one of Fortune® World’s Most Admired Companies™ for 9
of the last 10 years. Visit fiserv.com and follow on social media
for more information and the latest company news.
Use of Non-GAAP Financial Measures
In this news release, the company supplements its reporting of
information determined in accordance with generally accepted
accounting principles (“GAAP”), such as revenue, operating income,
operating margin, net income attributable to Fiserv, diluted
earnings per share and net cash provided by operating activities,
with “adjusted revenue,” “adjusted revenue growth,” “organic
revenue,” “organic revenue growth,” “adjusted operating income,”
“adjusted operating margin,” “adjusted net income,” “adjusted
earnings per share,” “adjusted earnings per share growth,” and
“free cash flow.” Management believes that adjustments for certain
non-cash or other items and the exclusion of certain pass-through
revenue and expenses should enhance shareholders' ability to
evaluate the company’s performance, as such measures provide
additional insights into the factors and trends affecting its
business. Therefore, the company excludes these items from its GAAP
financial measures to calculate these unaudited non-GAAP measures.
The corresponding reconciliations of these unaudited non-GAAP
financial measures to the most comparable GAAP measures are
included in this news release, except for forward-looking measures
where a reconciliation to the corresponding GAAP measures is not
available due to the variability, complexity and limited visibility
of the non-cash and other items described below that are excluded
from the non-GAAP outlook measures. See pages 14-16 for additional
information regarding the company’s forward-looking non-GAAP
financial measures.
Examples of non-cash or other items may include, but are not
limited to, non-cash intangible asset amortization expense
associated with acquisitions; non-cash impairment charges;
severance costs; net charges associated with debt financing
activities; merger and integration costs; gains or losses from the
sale of businesses, certain assets or investments; and certain
discrete tax benefits and expenses. The company excludes these
items to more clearly focus on the factors management believes are
pertinent to the company’s operations, and management uses this
information to make operating decisions, including the allocation
of resources to the company’s various businesses.
The company adjusts its non-GAAP results to exclude amortization
of acquisition-related intangible assets as such amounts are
inconsistent in amount and frequency and are significantly impacted
by the timing and/or size of acquisitions. Management believes that
the adjustment of acquisition-related intangible asset amortization
supplements GAAP information with a measure that can be used to
assess the comparability of operating performance. Although the
company excludes amortization from acquisition-related intangible
assets from its non-GAAP expenses, management believes that it is
important for investors to understand that such intangible assets
were recorded as part of purchase accounting and contribute to
revenue generation.
Management believes organic revenue growth is useful because it
presents adjusted revenue growth excluding the impact of foreign
currency fluctuations, acquisitions and dispositions. Management
believes free cash flow is useful to measure the funds generated in
a given period that are available for debt service requirements and
strategic capital decisions. Management believes this supplemental
information enhances shareholders’ ability to evaluate and
understand the company’s core business performance.
These unaudited non-GAAP measures may not be comparable to
similarly titled measures reported by other companies and should be
considered in addition to, and not as a substitute for, revenue,
operating income, operating margin, net income attributable to
Fiserv, diluted earnings per share and net cash provided by
operating activities or any other amount determined in accordance
with GAAP.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements regarding anticipated organic revenue growth,
adjusted earnings per share, adjusted earnings per share growth and
other statements regarding our future financial performance.
Statements can generally be identified as forward-looking because
they include words such as “believes,” “anticipates,” “expects,”
“could,” “should,” “confident,” “likely,” “plan,” or words of
similar meaning. Statements that describe the company’s future
plans, outlook, objectives or goals are also forward-looking
statements.
Forward-looking statements are subject to assumptions, risks and
uncertainties that may cause actual results to differ materially
from those contemplated by such forward-looking statements. The
factors that could cause the company’s actual results to differ
materially include, among others, the following: the company’s
ability to compete effectively against new and existing competitors
and to continue to introduce competitive new products and services
on a timely, cost-effective basis; changes in customer demand for
the company’s products and services; the ability of the company’s
technology to keep pace with a rapidly evolving marketplace; the
success of the company’s merchant alliances, some of which are not
controlled by the company; the impact of a security breach or
operational failure in the company’s business, including
disruptions caused by other participants in the global financial
system; losses due to chargebacks, refunds or returns as a result
of fraud or the failure of the company’s vendors and merchants to
satisfy their obligations; changes in local, regional, national and
international economic or political conditions, including those
resulting from heightened inflation, rising interest rates, a
recession, bank failures, or intensified international hostilities,
and the impact they may have on the company and its employees,
clients, vendors, supply chain, operations and sales; the effect of
proposed and enacted legislative and regulatory actions affecting
the company or the financial services industry as a whole; the
company’s ability to comply with government regulations and
applicable card association and network rules; the protection and
validity of intellectual property rights; the outcome of pending
and future litigation and governmental proceedings; the company’s
ability to successfully identify, complete and integrate
acquisitions, and to realize the anticipated benefits associated
with the same; the impact of the company’s strategic initiatives;
the company’s ability to attract and retain key personnel;
volatility and disruptions in financial markets that may impact the
company’s ability to access preferred sources of financing and the
terms on which the company is able to obtain financing or increase
its costs of borrowing; adverse impacts from currency exchange
rates or currency controls; changes in corporate tax and interest
rates; and other factors included in “Risk Factors” in the
company’s Annual Report on Form 10-K for the year ended December
31, 2023, and in other documents that the company files with the
Securities and Exchange Commission, which are available at
http://www.sec.gov. You should consider these factors carefully in
evaluating forward-looking statements and are cautioned not to
place undue reliance on such statements. The company assumes no
obligation to update any forward-looking statements, which speak
only as of the date of this news release.
Fiserv, Inc.
Condensed Consolidated
Statements of Income
(In millions, except per share
amounts, unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Revenue
Processing and services
$
4,140
$
3,924
$
8,140
$
7,597
Product
967
832
1,850
1,706
Total revenue
5,107
4,756
9,990
9,303
Expenses
Cost of processing and services
1,343
1,351
2,697
2,756
Cost of product
639
578
1,290
1,178
Selling, general and administrative
1,697
1,696
3,394
3,300
Net loss on sale of businesses and other
assets
—
—
—
4
Total expenses
3,679
3,625
7,381
7,238
Operating income
1,428
1,131
2,609
2,065
Interest expense, net
(285
)
(232
)
(546
)
(434
)
Other expense, net
(5
)
(26
)
(12
)
(46
)
Income before income taxes and (loss)
income from investments in unconsolidated affiliates
1,138
873
2,051
1,585
Income tax provision
(221
)
(181
)
(374
)
(305
)
(Loss) income from investments in
unconsolidated affiliates
(8
)
3
(16
)
(9
)
Net income
909
695
1,661
1,271
Less: net income attributable to
noncontrolling interests
15
12
32
25
Net income attributable to
Fiserv
$
894
$
683
$
1,629
$
1,246
GAAP earnings per share attributable to
Fiserv — diluted
$
1.53
$
1.10
$
2.76
$
1.99
Diluted shares used in computing
earnings per share attributable to Fiserv
585.4
619.2
590.1
625.3
Earnings per share is calculated using
actual, unrounded amounts.
Fiserv, Inc.
Reconciliation of GAAP
to
Adjusted Net Income and
Adjusted Earnings Per Share
(In millions, except per share
amounts, unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
GAAP net income attributable to
Fiserv
$
894
$
683
$
1,629
$
1,246
Adjustments:
Merger and integration costs 1
22
42
59
90
Severance costs
21
13
63
37
Amortization of acquisition-related
intangible assets 2
370
430
739
857
Non wholly-owned entity activities 3
26
33
54
71
Net loss on sale of businesses and other
assets
—
—
—
4
Canadian tax law change 4
—
27
—
27
Tax impact of adjustments 5
(88
)
(109
)
(183
)
(217
)
Adjusted net income
$
1,245
$
1,119
$
2,361
$
2,115
GAAP earnings per share attributable to
Fiserv - diluted
$
1.53
$
1.10
$
2.76
$
1.99
Adjustments - net of income taxes:
Merger and integration costs 1
0.03
0.05
0.08
0.12
Severance costs
0.03
0.02
0.09
0.05
Amortization of acquisition-related
intangible assets 2
0.50
0.55
1.00
1.10
Non wholly-owned entity activities 3
0.04
0.04
0.07
0.09
Net loss on sale of businesses and other
assets
—
—
—
0.01
Canadian tax law change 4
—
0.04
—
0.03
Adjusted earnings per share
$
2.13
$
1.81
$
4.00
$
3.38
GAAP earnings per share attributable to
Fiserv growth
39
%
39
%
Adjusted earnings per share growth
18
%
18
%
See pages 3-4 for disclosures related to
the use of non-GAAP financial measures.
Earnings per share is calculated using
actual, unrounded amounts.
1
Represents acquisition and
related integration costs incurred in connection with acquisitions.
Merger and integration costs associated with integration activities
in the second quarter and first six months of 2024 primarily
include $13 million and $22 million of share-based compensation and
associated taxes, as well as $13 million of third-party
professional service fees in the first six months of 2024. Merger
and integration costs associated with integration activities in the
second quarter and first six months of 2023 primarily include $19
million and $39 million of share-based compensation and $19 million
and $33 million of third-party professional service fees,
respectively.
2
Represents amortization of
intangible assets acquired through acquisition, including customer
relationships, software/technology and trade names. This adjustment
does not exclude the amortization of other intangible assets such
as contract costs (sales commissions and deferred conversion
costs), capitalized and purchased software, financing costs and
debt discounts. See additional information on page 13 for an
analysis of the company's amortization expense.
3
Represents the company’s share of
amortization of acquisition-related intangible assets at its
unconsolidated affiliates, as well as the minority interest share
of amortization of acquisition-related intangible assets at its
subsidiaries in which the company holds a controlling financial
interest.
4
Represents the impact of a
multi-year retroactive Canadian tax law change, enacted in June
2023, related to the Goods and Services Tax / Harmonized Sales Tax
(GST/HST) treatment of payment card services.
5
The tax impact of adjustments is
calculated using a tax rate of 20% in both the first six months of
2024 and 2023, which approximates the company's anticipated annual
effective tax rate.
Fiserv, Inc.
Financial Results by
Segment
(In millions, unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Total Company
Revenue
$
5,107
$
4,756
$
9,990
$
9,303
Adjustments:
Postage reimbursements
(313
)
(298
)
(653
)
(620
)
Deferred revenue purchase accounting
adjustments
—
5
—
11
Adjusted revenue
$
4,794
$
4,463
$
9,337
$
8,694
Operating income
$
1,428
$
1,131
$
2,609
$
2,065
Adjustments:
Merger and integration costs 1
22
42
59
90
Severance costs
21
13
63
37
Amortization of acquisition-related
intangible assets
370
430
739
857
Net loss on sale of businesses and other
assets
—
—
—
4
Canadian tax law change
—
27
—
27
Adjusted operating income
$
1,841
$
1,643
$
3,470
$
3,080
Operating margin
28.0
%
23.8
%
26.1
%
22.2
%
Adjusted operating margin
38.4
%
36.8
%
37.2
%
35.4
%
Merchant Solutions (“Merchant”)
2
Revenue
$
2,410
$
2,206
$
4,663
$
4,202
Operating income
$
882
$
745
$
1,651
$
1,337
Operating margin
36.6
%
33.7
%
35.4
%
31.8
%
Financial Solutions
(“Financial”)
Revenue
$
2,379
$
2,245
$
4,664
$
4,468
Adjustments:
Deferred revenue purchase accounting
adjustments
—
5
—
11
Adjusted revenue
$
2,379
$
2,250
$
4,664
$
4,479
Operating income
$
1,093
$
1,028
$
2,101
$
1,971
Adjustments:
Deferred revenue purchase accounting
adjustments
—
5
—
11
Adjusted operating income
$
1,093
$
1,033
$
2,101
$
1,982
Operating margin
45.9
%
45.8
%
45.0
%
44.1
%
Adjusted operating margin
45.9
%
45.9
%
45.0
%
44.2
%
Fiserv, Inc.
Financial Results by Segment
(cont.)
(In millions, unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Corporate and Other
Revenue
$
318
$
305
$
663
$
633
Adjustments:
Postage reimbursements
(313
)
(298
)
(653
)
(620
)
Adjusted revenue
$
5
$
7
$
10
$
13
Operating loss
$
(547
)
$
(642
)
$
(1,143
)
$
(1,243
)
Adjustments:
Merger and integration costs
22
37
59
79
Severance costs
21
13
63
37
Amortization of acquisition-related
intangible assets
370
430
739
857
Net loss on sale of businesses and other
assets
—
—
—
4
Canadian tax law change
—
27
—
27
Adjusted operating loss
$
(134
)
$
(135
)
$
(282
)
$
(239
)
See pages 3-4 for disclosures related to
the use of non-GAAP financial measures.
Operating margin percentages are
calculated using actual, unrounded amounts.
1
Includes deferred revenue
purchase accounting adjustments within the Financial segment
related to the 2019 acquisition of First Data Corporation.
Adjustments for this residual activity concluded as of December 31,
2023.
2
For all periods presented in the
Merchant segment, there were no adjustments to GAAP measures
presented and thus the adjusted measures are equal to the GAAP
measures presented.
Fiserv, Inc.
Condensed Consolidated
Statements of Cash Flows
(In millions, unaudited)
Six Months Ended
June 30,
2024
2023
Cash flows from operating
activities
Net income
$
1,661
$
1,271
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and other amortization
815
717
Amortization of acquisition-related
intangible assets
744
868
Amortization of financing costs and debt
discounts
22
20
Share-based compensation
185
199
Deferred income taxes
(207
)
(186
)
Net loss on sale of businesses and other
assets
—
4
Loss from investments in unconsolidated
affiliates
16
9
Distributions from unconsolidated
affiliates
19
30
Non-cash impairment charges
14
—
Other operating activities
21
(1
)
Changes in assets and liabilities, net of
effects from acquisitions and dispositions:
Trade accounts receivable
(176
)
131
Prepaid expenses and other assets
(420
)
(430
)
Contract costs
(104
)
(116
)
Accounts payable and other liabilities
(448
)
(573
)
Contract liabilities
30
65
Net cash provided by operating
activities
2,172
2,008
Cash flows from investing
activities
Capital expenditures, including
capitalized software and other intangibles
(768
)
(679
)
Merchant cash advances, net
(451
)
—
Distributions from unconsolidated
affiliates
39
79
Purchases of investments
(35
)
(11
)
Proceeds from sale of investments
8
—
Other investing activities
—
(2
)
Net cash used in investing
activities
(1,207
)
(613
)
Cash flows from financing
activities
Debt proceeds
3,189
3,160
Debt repayments
(1,457
)
(978
)
Net borrowings from (repayments of)
commercial paper and short-term borrowings
532
(767
)
Payments of debt financing costs
(14
)
(21
)
Proceeds from issuance of treasury
stock
58
53
Purchases of treasury stock, including
employee shares withheld for tax obligations
(3,230
)
(2,603
)
Settlement activity, net
(150
)
(515
)
Distributions paid to noncontrolling
interests and redeemable noncontrolling interest
(41
)
(14
)
Payments of acquisition-related contingent
consideration
—
(30
)
Other financing activities
(1
)
(35
)
Net cash used in financing
activities
(1,114
)
(1,750
)
Effect of exchange rate changes on cash
and cash equivalents
(12
)
19
Net change in cash and cash
equivalents
(161
)
(336
)
Cash and cash equivalents, beginning
balance
2,963
3,192
Cash and cash equivalents, ending
balance
$
2,802
$
2,856
Fiserv, Inc.
Condensed Consolidated Balance
Sheets
(In millions, unaudited)
June 30,
December 31,
2024
2023
Assets
Cash and cash equivalents
$
1,195
$
1,204
Trade accounts receivable – net
3,744
3,582
Prepaid expenses and other current
assets
3,263
2,344
Settlement assets
30,125
27,681
Total current assets
38,327
34,811
Property and equipment – net
2,285
2,161
Customer relationships – net
6,434
7,075
Other intangible assets – net
4,118
4,135
Goodwill
36,867
37,205
Contract costs – net
938
968
Investments in unconsolidated
affiliates
2,210
2,262
Other long-term assets
2,238
2,273
Total assets
$
93,417
$
90,890
Liabilities and Equity
Accounts payable and other current
liabilities
$
4,187
$
4,355
Short-term and current maturities of
long-term debt
1,108
755
Contract liabilities
781
761
Settlement obligations
30,125
27,681
Total current liabilities
36,201
33,552
Long-term debt
24,401
22,363
Deferred income taxes
2,862
3,078
Long-term contract liabilities
262
250
Other long-term liabilities
913
978
Total liabilities
64,639
60,221
Redeemable noncontrolling interest
—
161
Fiserv shareholders' equity
28,154
29,857
Noncontrolling interests
624
651
Total equity
28,778
30,508
Total liabilities and equity
$
93,417
$
90,890
Fiserv, Inc.
Selected Non-GAAP Financial
Measures and Additional Information
(In millions, unaudited)
Organic Revenue Growth 1
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
Growth
2024
2023
Growth
Total Company
Adjusted revenue
$
4,794
$
4,463
$
9,337
$
8,694
Currency impact 2
452
—
956
—
Acquisition adjustments
(3
)
—
(6
)
—
Divestiture adjustments
(5
)
(19
)
(10
)
(34
)
Organic revenue
$
5,238
$
4,444
18%
$
10,277
$
8,660
19%
Merchant
Adjusted revenue
$
2,410
$
2,206
$
4,663
$
4,202
Currency impact 2
413
—
881
—
Acquisition adjustments
(3
)
—
(6
)
—
Organic revenue
$
2,820
$
2,206
28%
$
5,538
$
4,202
32%
Financial
Adjusted revenue
$
2,379
$
2,250
$
4,664
$
4,479
Currency impact 2
39
—
75
—
Divestiture adjustments
—
(12
)
—
(21
)
Organic revenue
$
2,418
$
2,238
8%
$
4,739
$
4,458
6%
Corporate and Other
Adjusted revenue
$
5
$
7
$
10
$
13
Divestiture adjustments
(5
)
(7
)
(10
)
(13
)
Organic revenue
$
—
$
—
$
—
$
—
See pages 3-4 for disclosures related to the use of non-GAAP
financial measures.
Organic revenue growth is calculated using
actual, unrounded amounts.
1
Organic revenue growth is
measured as the change in adjusted revenue (see pages 8-9) for the
current period excluding the impact of foreign currency
fluctuations and revenue attributable to acquisitions and
dispositions, divided by adjusted revenue from the prior period
excluding revenue attributable to dispositions.
2
Currency impact is measured as
the increase or decrease in adjusted revenue for the current period
by applying prior period foreign currency exchange rates to present
a constant currency comparison to prior periods.
Fiserv, Inc.
Selected Non-GAAP Financial
Measures and Additional Information (cont.)
(In millions, unaudited)
Free Cash Flow
Six Months Ended
June 30,
2024
2023
Net cash provided by operating
activities
$
2,172
$
2,008
Capital expenditures
(768
)
(679
)
Adjustments:
Distributions paid to noncontrolling
interests and redeemable noncontrolling interest
(41
)
(14
)
Distributions from unconsolidated
affiliates included in cash flows from investing activities
39
79
Severance, merger and integration
payments
96
85
Tax payments on adjustments
(19
)
(17
)
Other
—
7
Free cash flow
$
1,479
$
1,469
Total Amortization 1
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Acquisition-related intangible assets
$
371
$
435
$
744
$
868
Capitalized software and other
intangibles
156
119
300
227
Purchased software
59
60
118
114
Financing costs and debt discounts
11
10
22
20
Sales commissions
27
27
55
55
Deferred conversion costs
25
20
49
40
Total amortization
$
649
$
671
$
1,288
$
1,324
See pages 3-4 for disclosures related to
the use of non-GAAP financial measures.
1
The company adjusts its non-GAAP
results to exclude amortization of acquisition-related intangible
assets as such amounts are inconsistent in amount and frequency and
are significantly impacted by the timing and/or size of
acquisitions. Management believes that the adjustment of
acquisition-related intangible asset amortization supplements the
GAAP information with a measure that can be used to assess the
comparability of operating performance. Although the company
excludes amortization from acquisition-related intangible assets
from its non-GAAP expenses, management believes that it is
important for investors to understand that such intangible assets
were recorded as part of purchase accounting and contribute to
revenue generation. Amortization of intangible assets that relate
to past acquisitions will recur in future periods until such
intangible assets have been fully amortized. Any future
acquisitions may result in the amortization of additional
intangible assets.
Fiserv, Inc. Full Year
Forward-Looking Non-GAAP Financial Measures
Reconciliations of unaudited non-GAAP financial measures to the
most comparable GAAP measures are included in this news release,
except for forward-looking measures where a reconciliation to the
corresponding GAAP measures is not available due to the
variability, complexity and limited visibility of these items that
are excluded from the non-GAAP outlook measures. The company’s
forward-looking non-GAAP financial measures for 2024, including
organic revenue growth, adjusted earnings per share and adjusted
earnings per share growth, are designed to enhance shareholders’
ability to evaluate the company’s performance by excluding certain
items to focus on factors and trends affecting its business.
Organic Revenue Growth - The company's organic revenue growth
outlook for 2024 excludes the impact of foreign currency
fluctuations, acquisitions, dispositions and the impact of the
company's postage reimbursements. The currency impact is measured
as the increase or decrease in the expected adjusted revenue for
the period by applying prior period foreign currency exchange rates
to present a constant currency comparison to prior periods.
Growth
2024 Revenue
6.5% - 8.5%
Postage reimbursements
(0.5)%
2024 Adjusted revenue
6% - 8%
Currency impact
8.5%
Acquisition adjustments
0.0%
Divestiture adjustments
0.5%
2024 Organic revenue
15% - 17%
Adjusted Earnings Per Share - The company's adjusted earnings
per share outlook for 2024 excludes certain non-cash or other items
such as non-cash intangible asset amortization expense associated
with acquisitions; non-cash impairment charges; non-cash pension
plan termination charges; merger and integration costs; severance
costs; gains or losses from the sale of businesses, certain assets
and investments; and certain discrete tax benefits and expenses.
The company estimates that amortization expense in 2024 with
respect to acquired intangible assets will decrease approximately
15% compared to the amount incurred in 2023.
Other adjustments to the company’s financial measures that were
incurred in 2023 and for the three and six months ended June 30,
2024 are presented in this news release; however, they are not
necessarily indicative of adjustments that may be incurred
throughout the remainder of 2024 or beyond. Estimates of these
impacts and adjustments on a forward-looking basis are not
available due to the variability, complexity and limited visibility
of these items.
Fiserv, Inc.
Full Year Forward-Looking
Non-GAAP Financial Measures (cont.)
The company's adjusted earnings per share
growth outlook for 2024 is based on 2023 adjusted earnings per
share performance.
2023 GAAP net income attributable to
Fiserv
$
3,068
Adjustments:
Merger and integration costs 1
158
Severance costs
74
Amortization of acquisition-related
intangible assets 2
1,623
Non wholly-owned entity activities 3
133
Net gain on sale of businesses and other
assets 4
(167
)
Canadian tax law change 5
27
Tax impact of adjustments 6
(355
)
Argentine Peso devaluation 7
71
2023 adjusted net income
$
4,632
Weighted average common shares outstanding
- diluted
615.9
2023 GAAP earnings per share attributable
to Fiserv - diluted
$
4.98
Adjustments - net of income taxes:
Merger and integration costs 1
0.21
Severance costs
0.10
Amortization of acquisition-related
intangible assets 2
2.11
Non wholly-owned entity activities 3
0.17
Net gain on sale of businesses and other
assets 4
(0.19
)
Canadian tax law change 5
0.04
Argentine Peso devaluation 7
0.12
2023 adjusted earnings per share
$
7.52
2024 adjusted earnings per share
outlook
$8.65 - $8.80
2024 adjusted earnings per share growth
outlook
15% - 17%
In millions, except per share amounts,
unaudited. Earnings per share is calculated using actual, unrounded
amounts.
See pages 3-4 for disclosures related to
the use of non-GAAP financial measures.
Fiserv, Inc.
Full Year Forward-Looking
Non-GAAP Financial Measures (cont.)
1
Represents acquisition and
related integration costs incurred in connection with acquisitions.
Merger and integration costs associated with integration activities
primarily include $35 million of share-based compensation and $70
million of third-party professional service fees.
2
Represents amortization of
intangible assets acquired through acquisition, including customer
relationships, software/technology and trade names. This adjustment
does not exclude the amortization of other intangible assets such
as contract costs (sales commissions and deferred conversion
costs), capitalized and purchased software, financing costs and
debt discounts.
3
Represents the company’s share of
amortization of acquisition-related intangible assets at its
unconsolidated affiliates, as well as the minority interest share
of amortization of acquisition-related intangible assets at its
subsidiaries in which the company holds a controlling financial
interest.
4
Represents a net gain primarily
associated with the sale of the company’s financial reconciliation
business.
5
Represents the impact of a
multi-year retroactive Canadian tax law change, enacted in June
2023, related to the Goods and Services Tax / Harmonized Sales Tax
(GST/HST) treatment of payment card services.
6
The tax impact of adjustments is
calculated using a tax rate of 20%, which approximates the
company's annual effective tax rate, exclusive of actual tax
impacts of $48 million associated with the net gain on sale of
businesses.
7
On December 12, 2023, the
Argentina government announced economic reforms, including a
significant devaluation of the Argentine Peso. This adjustment
represents the corresponding one-day foreign currency exchange loss
from the remeasurement of the company’s Argentina subsidiary’s
monetary assets and liabilities in Argentina’s highly inflationary
economy.
FI-G
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240724177295/en/
Media Relations: Chase Wallace Director, Communications
Fiserv, Inc. 470-481-2555 chase.wallace@fiserv.com Investor
Relations: Julie Chariell Investor Relations Fiserv, Inc.
212-515-0278 julie.chariell@fiserv.com
Fiserv (NYSE:FI)
과거 데이터 주식 차트
부터 8월(8) 2024 으로 9월(9) 2024
Fiserv (NYSE:FI)
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부터 9월(9) 2023 으로 9월(9) 2024