Slide 1: First Quarter 2024 Financial Results
First Quarter 2024 Financial Results April 23, 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: First Quarter Highlights
First Quarter Highlights • Adjusted Revenue of $4.5 billion, up 7% year-over- • Results are tracking ahead of our full-year outlook on year adjusted operating margin and adjusted EPS growth, with strong organic revenue growth • Organic Revenue Growth of 20% • Second consecutive quarter of 30% Clover
Slide 4: Financial Metric Dashboard
Financial Metric Dashboard Organic Revenue Growth: 1Q24 +20% Adjusted Revenue Adjusted Operating Margin % Adjusted EPS +7% +180bps +19% $4,571 $4,600 $4,543 41.1% $2.19 $4,463 36.8% 38.5% 35.8% $1.96 34.0% $1.81 $1.88 $4,231 $1.58 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23
Slide 5: Merchant Solutions
Merchant Solutions Organic Adjusted Revenue Adjusted Revenue Revenue $2,259 $2,261 $2,253 $2,206 Business Line $ Growth Growth Small Business $1,488 16% 45% $1,996 Enterprise $463 6% 29% Processing $302 10% 9%* Total $2,253 13% 36% 1Q23 2Q23 3Q23 4Q23 1Q24 *Processing organic revenue declined 2% ex-
Slide 6: Impact of FX and Excess Argentine Inflation / Interest on Revenue
Impact of FX and Excess Argentine Inflation / Interest on Revenue 2023 Actual 1Q24 Actual 2024 Full Year Outlook Excess Excess Excess Inflation/Interest¹ FX² Inflation/Interest¹ FX² Inflation/Interest¹ FX² Merchant Solutions 8% (8%) 15% (23%) 14% (17%) Total Company 4% (4%) 7% (12%) 7% (8.5%) • For
Slide 7: Financial Solutions
Financial Solutions Organic Adjusted Revenue Adjusted Revenue Revenue $2,334 Business Line $ Growth Growth $2,307 $2,285 Digital Payments $920 5% 5% $2,250 Issuing $761 3% 8% $2,229 Banking $604 -3% -1%* Total $2,285 2% 5% *Banking organic revenue grew 2% ex-periodic revenue 1Q23 2Q23 3Q23 4Q23 1Q24
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 $1,487 $4.7 $1,469
Slide 9: 2024 Performance Outlook
2024 Performance Outlook Key Financial Metrics Previous Updated Organic Revenue Growth 15% – 17% 15% – 17% Adjusted EPS $8.55 – $8.70 $8.60 – $8.75 (14% – 16% growth) (14% – 16% growth) Other Financial Metrics Adjusted Operating Margin Expansion >100bps >125bps Free Cash Flow ~$4.5B ~$4.5B 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: 1Q24 Revenue Details
1Q24 Revenue Details Merchant Financial Corporate Total Solutions Solutions and Other Company GAAP revenue $2,253 $2,285 $345 $4,883 Postage reimbursements - - (340) (340) Adjusted revenue $2,253 $2,285 $5 $4,543 Currency impact (FX) 468 36 - 504 Acquisitions and divestitures, net (3) - (5) (8) Orga
Slide 13: Adjusted Revenue and Adjusted Operating Income
Adjusted Revenue and Adjusted Operating Income Total Company 1Q24 4Q23 3Q23 2Q23 1Q23 Revenue $ 4,883 $ 4,917 $ 4,873 $ 4,756 $ 4,547 Adjustments: Postage reimbursements (340) (320) (307) (298) (322) Deferred revenue purchase accounting adjustments — 3 5 5 6 Adjusted revenue $ 4,543 $ 4,600 $ 4,571
Slide 14: Adjusted Revenue and Adjusted Operating Income by Segment
Adjusted Revenue and Adjusted Operating Income by Segment Merchant Solutions Segment 1Q24 4Q23 3Q23 2Q23 1Q23 Revenue $ 2,253 $ 2,261 $ 2,259 $ 2,206 $ 1,996 Operating income $ 769 $ 851 $ 786 $ 745 $ 592 Operating margin 34.1 % 37.7 % 34.8 % 33.7 % 29.7 % $ in millions, unaudited. Operating margin
Slide 15: Adjusted Revenue and Adjusted Operating Income by Segment
Adjusted Revenue and Adjusted Operating Income by Segment Financial Solutions Segment 1Q24 4Q23 3Q23 2Q23 1Q23 Revenue $ 2,285 $ 2,331 $ 2,302 $ 2,245 $ 2,223 Adjustments: Deferred revenue purchase accounting adjustments — 3 5 5 6 Adjusted revenue $ 2,285 $ 2,334 $ 2,307 $ 2,250 $ 2,229 Operating in
Slide 16: Adjusted and Organic Revenue by Segment
Adjusted and Organic Revenue by Segment Three Months Ended March 31, 2024 2023 Growth Total Company Revenue $ 4,883 $ 4,547 7% Postage reimbursements (340) (322) Deferred revenue purchase accounting adjustments — 6 Adjusted revenue $ 4,543 $ 4,231 7% Currency impact 1 504 — Acquisition adjustments (
Slide 17: Adjusted and Organic Revenue by Segment (cont.)
Adjusted and Organic Revenue by Segment (cont.) Three Months Ended March 31, 2024 2023 Corporate and Other Revenue $ 345 $ 328 Postage reimbursements (340) (322) Adjusted revenue $ 5 $ 6 Divestiture adjustments (5) (6) Organic revenue 2 $ — $ — $ in millions, unaudited. Revenue growth is calculated
Slide 18: Adjusted and Organic Revenue by Business Line
Adjusted and Organic Revenue by Business Line Three Months Ended March 31, 2024 2023 Growth Small Business Revenue 1 $ 1,488 $ 1,285 16% Currency impact 2 372 — Acquisition adjustments (3) — Organic revenue 3 $ 1,857 $ 1,285 45% Enterprise Revenue 1 $ 463 $ 437 6% Currency impact 2 98 — Organic reve
Slide 19: Adjusted and Organic Revenue by Business Line (cont.)
Adjusted and Organic Revenue by Business Line (cont.) Three Months Ended March 31, 2024 2023 Growth Digital Payments Revenue 1, 4 $ 920 $ 873 5% Issuing Revenue $ 761 $ 731 4% Deferred revenue purchase accounting adjustments — 6 Adjusted revenue $ 761 $ 737 3% Currency impact 2 36 — Organic revenue
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 1Q24 4Q23 3Q23 2Q23 1Q23 GAAP net income attributable to Fiserv $ 735 $ 870 $ 952 $ 683 $ 563 Adjustments: Merger and integration costs 1 37 38 30 42 48 Severance costs 42 22 15 13 24 Amortization of acquisition-related intangible assets 2 369 378 388 430 427 Non
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 primarily include $14 million of third-party professional service fees and $9 million of s
Slide 23: Free Cash Flow
Free Cash Flow 1Q24 4Q23 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22 Net cash provided by operating activities $ 831 $ 1,595 $ 1,559 $ 878 $ 1,130 $ 1,633 $ 1,180 $ 990 Capital expenditures (420) (354) (355) (340) (339) (331) (430) (387) Adjustments: Distributions paid to noncontrolling interests and (34) (12) (8
Slide 24: Additional Information – Amortization Expense
Additional Information – Amortization Expense Total Amortization 1Q24 1Q23 Acquisition-related intangible assets $ 373 $ 433 Capitalized software and other intangibles 144 108 Purchased software 59 54 Financing costs and debt discounts 11 10 Sales commissions 28 28 Deferred conversion costs 24 20 To
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