Fiserv Reports Fourth Quarter And Full Year 2023 Results

• GAAP revenue growth of 6% in the quarter and 8% for the full year;
• GAAP EPS increased 18% in the quarter and 27% for the full year;
• Operating cash flow increased 12% to $5.16 billion for the full year;
• Organic revenue growth of 12% both in the quarter and for the full year;
• Adjusted EPS increased 15% in the quarter and 16% for the full year;
• Free cash flow increased 14% to $4.02 billion for the full year;
• Company expects 2024 organic revenue growth of 15% to 17% and adjusted EPS of $8.55 to $8.70, or growth of 14% to 16%

Fiserv, Inc. (NYSE: FI), a leading global provider of payments and financial services technology solutions, today reported financial results for the fourth quarter and full year 2023.

Fourth Quarter and Full Year 2023 GAAP Results

GAAP revenue for the company increased 6% to $4.92 billion in the fourth quarter of 2023 compared to the prior year period, with 14% growth in the Acceptance segment, 3% growth in the Payments segment and 3% decline in the Fintech segment. GAAP revenue for the company increased 8% to $19.09 billion for the full year 2023 compared to the prior year, with 12% growth in the Acceptance segment and 7% growth in the Payments segment, while revenue was flat in the Fintech segment.

GAAP earnings per share was $1.45 in the fourth quarter and $4.98 for the full year 2023, an increase of 18% and 27%, respectively, compared to the prior year periods. GAAP operating margin was 29.4% and 26.3% in the fourth quarter and full year 2023, respectively, compared to 25.5% and 21.1% in the fourth quarter and full year 2022, respectively. The full year 2023 includes a $172 million pre-tax gain related to the sale of the company’s financial reconciliation business. Net cash provided by operating activities increased 12% to $5.16 billion for the full year 2023 compared to $4.62 billion in the prior year.

“Fiserv closed out 2023 with accelerated organic revenue growth of 12%, representing our third consecutive year of double-digit growth, as our momentum continued,” said Frank Bisignano, Chairman, President and Chief Executive Officer of Fiserv. “We are proud to have delivered on our commitments, with results that exceeded expectations across key measures of our financial performance – organic revenue growth, adjusted earnings per share, adjusted operating margin and free cash flow.”

Fourth Quarter and Full Year 2023 Non-GAAP Results and Additional Information

• Adjusted revenue increased 6% to $4.64 billion in the fourth quarter and 8% to $18.04 billion for the full year 2023 compared to the prior year periods.
• Organic revenue growth was 12% in the fourth quarter of 2023, led by 24% growth in the Acceptance segment and 4% growth in the Payments segment, partially offset by 1% decline in the Fintech segment.
• Organic revenue growth was 12% for the full year 2023, led by 19% growth in the Acceptance segment, 8% growth in the Payments segment and 2% growth in the Fintech segment.
• Adjusted earnings per share increased 15% to $2.19 in the fourth quarter and 16% to $7.52 for the full year 2023 compared to the prior year periods.
• Adjusted operating margin increased 150 basis points to 40.7% in the fourth quarter and 220 basis points to 37.3% for the full year 2023 compared to the prior year periods.
• Free cash flow increased 14% to $4.02 billion for the full year 2023 compared to $3.52 billion in the prior year.
• The company repurchased 8.6 million shares of common stock for $1.0 billion in the fourth quarter and 40.0 million shares of common stock for $4.7 billion in the full year 2023, reducing its diluted weighted average outstanding shares by 5% for the full year.
• The company launched the Fiserv Small Business Index™, a first-of-its-kind indicator for assessing monthly performance of small businesses in the United States at national, state and industry levels, which was most recently published on February 2, 2024.
• In January 2024, Fiserv was named one of Fortune® World’s Most Admired Companies™, a recognition received by the company for 9 of the past 10 years.

Outlook for 2024

Fiserv expects organic revenue growth of 15% to 17% and adjusted earnings per share of $8.55 to $8.70, representing growth of 14% to 16%, for 2024.

“We are confident in our ability to continue driving strong results and plan to extend our double-digit adjusted earnings per share growth to a 39th consecutive year,” said Bisignano. “Building a track record of sustained, high-level performance takes Fiserv’s unique combination of assets – our industry leading client base, distribution, technology and people. It also requires the financial strength to continue investing, as we do in our market-leading operating systems and hundreds of value-added solutions for small businesses, enterprises and financial institutions.”

Earnings Conference Call

The company will discuss its fourth quarter and full year 2023 results in a live webcast at 7 a.m. CT on Tuesday, February 6, 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.