On February 6, 2024, Fiserv Inc (FI, Financial), a leading global provider of payments and financial services technology solutions, announced its financial results for the fourth quarter and full year 2023. The company reported a solid performance with significant growth in revenue and earnings per share (EPS). Fiserv Inc (FI) released its 8-K filing detailing these results, which reflect the company's continued focus on innovation and excellence in the financial technology sector.
Fiserv is renowned for its comprehensive suite of services including electronic funds transfer, payment processing, loan processing, and merchant acquiring and processing. The company's merger with First Data in 2019 has further solidified its position as a powerhouse in payment processing for merchants, with a notable international presence contributing to approximately 10% of its revenue.
Financial Highlights and Achievements
The company's GAAP revenue saw a 6% increase to $4.92 billion in Q4 and an 8% increase to $19.09 billion for the full year, with the Acceptance segment leading the growth. GAAP EPS also showed a remarkable uptick, with an 18% increase in Q4 and a 27% increase for the full year, reaching $1.45 and $4.98 respectively. This growth in EPS is particularly significant for a company in the software and financial services industry, as it indicates efficient cost management and profitability.
Operating cash flow, a critical indicator of a company's financial health and its ability to sustain and invest in its operations, rose by 12% to $5.16 billion for the full year. Organic revenue growth, which excludes the effects of acquisitions and currency fluctuations, was a robust 12% for both Q4 and the full year, showcasing the company's strong underlying performance.
Adjusted EPS, which excludes certain non-cash and other items to provide a clearer picture of the company's operational efficiency, increased by 15% in Q4 and 16% for the full year. Free cash flow, an important measure of financial flexibility, also saw a 14% increase to $4.02 billion for the full year. These financial achievements are crucial as they demonstrate Fiserv's ability to generate and manage cash effectively, allowing for strategic investments and shareholder returns.
Performance Analysis and Future Outlook
Fiserv's performance in 2023 was marked by significant achievements across various financial metrics. The company's chairman, president, and CEO, Frank Bisignano, highlighted the momentum and commitment to delivering on key financial performance measures. He stated:
"Fiserv closed out 2023 with accelerated organic revenue growth of 12%, representing our third consecutive year of double-digit growth, as our momentum continued. 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."
Looking ahead, Fiserv is optimistic about its prospects for 2024, projecting organic revenue growth of 15% to 17% and an adjusted EPS of $8.55 to $8.70, which would represent a growth of 14% to 16%. This confidence is underpinned by the company's diverse assets, including its leading client base, technology, and financial strength, which enable sustained investment in its operating systems and solutions for businesses and financial institutions.
For a more detailed understanding of Fiserv's financial performance and future outlook, investors and interested parties are encouraged to review the full earnings release and listen to the earnings conference call, which can be accessed through the investor relations section of the Fiserv website.
As Fiserv continues to innovate and lead in the financial services technology space, its financial results demonstrate a strong trajectory for growth and shareholder value creation.
Explore the complete 8-K earnings release (here) from Fiserv Inc for further details.
