Slide 1: Second Quarter 2024 Financial Results
Second Quarter 2024 Financial Results July 24, 2024
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements This presentation 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
Slide 3: Second Quarter Highlights
Second Quarter Highlights • Adjusted Revenue of $4.8 billion, up 7% year-over- • Raising our full-year outlook for adjusted EPS by year $0.05 to $8.65 - $8.80 • Organic Revenue Growth of 18% • Clover revenue grew 29% YTD and VAS penetration rate was 20% • Adjusted Earnings Per Share of $2.13, up 18%
Slide 4: Financial Metric Dashboard
Financial Metric Dashboard Organic Revenue Growth: 2Q24 +18% | YTD +19% Adjusted Revenue Adjusted Operating Margin % Adjusted EPS +7% | +7% +160bps | +180bps +18% | +18% $4,794 41.1% $2.19 38.5% 38.4% $2.13 $4,571 $4,600 $4,543 36.8% 35.8% $1.96 $1.88 $1.81 $4,463 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23
Slide 5: Merchant Solutions
Merchant Solutions Adjusted Revenue Adj. Revenue Org. Revenue $2,410 2Q YTD 2Q YTD $2,206 $2,259 $2,261 $2,253 Business Line $ Growth Growth Growth Growth Small Business $1,604 13% 14% 35% 40% Enterprise $542 9% 8% 27% 28% Processing $264 -8% 1% -7% 1% Total $2,410 9% 11% 28% 32% 2Q23 3Q23 4Q23 1Q24
Slide 6: Impact of FX and Excess Argentine Inflation / Interest on Revenue
Impact of FX and Excess Argentine Inflation / Interest on Revenue 1Q24 2Q24 Previous 2024 FY Outlook Updated FY Outlook Excess Excess Excess Excess Inflation/Interest¹ FX² Inflation/Interest¹ FX² Inflation/Interest¹ FX² Inflation/Interest¹ FX² Merchant Solutions 15% (23%) 10% (19%) 14% (17%) 9% (17%
Slide 7: Financial Solutions
Financial Solutions Adjusted Revenue Adj. Revenue Org. Revenue $2,379 2Q YTD 2Q YTD $2,334 $2,307 Business Line $ Growth Growth Growth Growth $2,285 Digital Payments $987 8% 7% 8% 7% $2,250 Issuing $766 4% 4% 9% 9% Banking $626 4% 1% 6% 2% Total $2,379 6% 4% 8% 6% 2Q23 3Q23 4Q23 1Q24 2Q24 Adjusted O
Slide 8: Capital Allocation and Free Cash Flow
Capital Allocation and Free Cash Flow Capital Expenditures Free Cash Flow Share Repurchases Investing in growth… while generating healthy cash flow… and returning value to shareholders. Trailing 12 months | $ millions Trailing 12 months | $ millions Trailing 12 months | $ billions $1,440 $1,477 $5.2
Slide 9: 2024 Performance Outlook
2024 Performance Outlook Key Financial Metrics Previous Updated Organic Revenue Growth 15% – 17% 15% – 17% Adjusted EPS $8.60 – $8.75 $8.65 – $8.80 (14% – 16% growth) (15% – 17% growth) Other Financial Metrics Adjusted Operating Margin Expansion >125bps >135bps Free Cash Flow ~$4.5B ~$4.7B See Appen
Slide 10: Appendix
Appendix Recognized by Fortune® Magazine 10 © 2024 Fiserv, Inc. or its affiliates. World’s Most Admired CompaniesTM 9 of the last 10 years
Slide 11: Non-GAAP Financial Measures
Non-GAAP Financial Measures Use of Non-GAAP Financial Measures This presentation includes the following unaudited non-GAAP financial measures: “adjusted revenue,” “adjusted revenue growth,” “organic revenue,” “organic revenue growth,” “adjusted operating income,” “adjusted operating margin,” “adjust
Slide 12: 2Q24 Revenue Details
2Q24 Revenue Details Merchant Financial Corporate Total Solutions Solutions and Other Company GAAP revenue $2,410 $2,379 $318 $5,107 Postage reimbursements - - (313) (313) Adjusted revenue $2,410 $2,379 $5 $4,794 Currency impact (FX) 413 39 - 452 Acquisitions and divestitures, net (3) - (5) (8) Orga
Slide 13: Adjusted Revenue and Adjusted Operating Income
Adjusted Revenue and Adjusted Operating Income Total Company 2Q24 1Q24 4Q23 3Q23 2Q23 YTD24 YTD23 Revenue $ 5,107 $ 4,883 $ 4,917 $ 4,873 $ 4,756 $ 9,990 $ 9,303 Adjustments: Postage reimbursements (313) (340) (320) (307) (298) (653) (620) Deferred revenue purchase accounting adjustments — — 3 5 5 —
Slide 14: Adjusted Revenue and Adjusted Operating Income by Segment
Adjusted Revenue and Adjusted Operating Income by Segment Merchant Solutions Segment 2Q24 1Q24 4Q23 3Q23 2Q23 YTD24 YTD23 Revenue $ 2,410 $ 2,253 $ 2,261 $ 2,259 $ 2,206 $ 4,663 $ 4,202 Operating income $ 882 $ 769 $ 851 $ 786 $ 745 $ 1,651 $ 1,337 Operating margin 36.6 % 34.1 % 37.7 % 34.8 % 33.7 %
Slide 15: Adjusted Revenue and Adjusted Operating Income by Segment
Adjusted Revenue and Adjusted Operating Income by Segment Financial Solutions Segment 2Q24 1Q24 4Q23 3Q23 2Q23 YTD24 YTD23 Revenue $ 2,379 $ 2,285 $ 2,331 $ 2,302 $ 2,245 $ 4,664 $ 4,468 Adjustments: Deferred revenue purchase accounting adjustments — — 3 5 5 — 11 Adjusted revenue $ 2,379 $ 2,285 $ 2
Slide 16: Adjusted and Organic Revenue by Segment
Adjusted and Organic Revenue by Segment Three Months Ended June 30, Six Months Ended June 30, 2024 2023 Growth 2024 2023 Growth Total Company Revenue $ 5,107 $ 4,756 7% $ 9,990 $ 9,303 7% Postage reimbursements (313) (298) (653) (620) Deferred revenue purchase accounting adjustments — 5 — 11 Adjuste
Slide 17: Adjusted and Organic Revenue by Segment (cont.)
Adjusted and Organic Revenue by Segment (cont.) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Corporate and Other Revenue $ 318 $ 305 $ 663 $ 633 Postage reimbursements (313) (298) (653) (620) Adjusted revenue $ 5 $ 7 $ 10 $ 13 Divestiture adjustments (5) (7) (10) (13) Or
Slide 18: Adjusted and Organic Revenue by Business Line
Adjusted and Organic Revenue by Business Line Three Months Ended June 30, Six Months Ended June 30, 2024 2023 Growth 2024 2023 Growth Small Business Revenue 1 $ 1,604 $ 1,424 13% $ 3,092 $ 2,709 14% Currency impact 2 323 — 695 — Acquisition adjustments (3) — (6) — Organic revenue 3 $ 1,924 $ 1,424 3
Slide 19: Adjusted and Organic Revenue by Business Line (cont.)
Adjusted and Organic Revenue by Business Line (cont.) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 Growth 2024 2023 Growth Digital Payments Revenue 1, 4 $ 987 $ 911 8% $ 1,907 $ 1,784 7% Issuing Revenue $ 766 $ 730 5% $ 1,527 $ 1,461 4% Deferred revenue purchase accounting adjustm
Slide 20: Adjusted and Organic Revenue by Business Line (cont.)
Adjusted and Organic Revenue by Business Line (cont.) 1 For all periods presented, there were no adjustments to the GAAP revenue presented and thus the adjusted revenue is equal to the GAAP revenue. 2 Currency impact is measured as the increase or decrease in adjusted revenue for the current period
Slide 21: Adjusted Net Income and Adjusted EPS
Adjusted Net Income and Adjusted EPS 2Q24 1Q24 4Q23 3Q23 2Q23 YTD24 YTD23 GAAP net income attributable to Fiserv $ 894 $ 735 $ 870 $ 952 $ 683 $ 1,629 $ 1,246 Adjustments: Merger and integration costs 1 22 37 38 30 42 59 90 Severance costs 21 42 22 15 13 63 37 Amortization of acquisition-related int
Slide 22: Adjusted Net Income and Adjusted EPS (cont.)
Adjusted Net Income and Adjusted EPS (cont.) 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 m
Slide 23: Free Cash Flow
Free Cash Flow 2Q24 1Q24 4Q23 3Q23 2Q23 1Q23 4Q22 3Q22 Net cash provided by operating activities $ 1,341 $ 831 $ 1,595 $ 1,559 $ 878 $ 1,130 $ 1,633 $ 1,180 Capital expenditures (348) (420) (354) (355) (340) (339) (331) (430) Adjustments: Distributions paid to noncontrolling interests and (7) (34) (
Slide 24: Additional Information – Amortization Expense
Additional Information – Amortization Expense Total Amortization 2Q24 2Q23 YTD24 YTD23 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 commis
Slide 25: 2024 Performance Outlook - Organic Revenue Growth
2024 Performance Outlook - Organic Revenue Growth Growth 2024 Revenue 6.5% - 8.5% Postage reimbursements (0.5%) 2024 Adjusted revenue 6% - 8% Currency impact 1 8.5% Acquisition adjustments 0.0% Divestiture adjustments 2 0.5% 2024 Organic revenue 3 15% - 17% See “Non-GAAP Financial Measures” for addi
Slide 26: 2023 Adjusted Net Income and Adjusted EPS Reconciliation
2023 Adjusted Net Income and Adjusted EPS Reconciliation 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 b
Slide 27: 2023 Adjusted Net Income and Adjusted EPS Reconciliation (cont.)
2023 Adjusted Net Income and Adjusted EPS Reconciliation (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 mill
Slide 28: 2023 Adjusted Revenue and Adjusted Operating Income Reconciliation
2023 Adjusted Revenue and Adjusted Operating Income Reconciliation 2023 Revenue $ 19,093 Adjustments: Postage reimbursements (1,247) Deferred revenue purchase accounting adjustments 19 2023 Adjusted revenue $ 17,865 2023 Operating income $ 5,014 Adjustments: Merger and integration costs 158 Severanc