Slide 1: Fourth Quarter 2023 Financial Results
Fourth Quarter 2023 Financial Results February 6, 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: Fourth Quarter and Full-Year Highlights
Fourth Quarter and Full-Year Highlights • Adjusted Revenue of $4.6 billion, up 6% for the quarter • Achieved third consecutive year of double-digit organic revenue growth, and 38th consecutive year of double-digit • Organic Revenue Growth of 12% for both the quarter and adjusted earnings per share g
Slide 4: Financial Metric Dashboard
Financial Metric Dashboard Organic Growth: 4Q23 +12% | FY23 +12% Adjusted Revenue Adjusted Operating Margin % +6% +8% +150bps +220bps $16,773 $18,041 35.1% 37.3% $4,506 $4,615 $4,640 39.2% 36.5% 38.1% 40.7% $4,360 $4,280 33.6% 4Q22 1Q23 2Q23 3Q23 4Q23 FY22 FY23 4Q22 1Q23 2Q23 3Q23 4Q23 FY22 FY23 Adj
Slide 5: Full-Year Segment Metric Dashboard
Full-Year Segment Metric Dashboard Merchant Acceptance Payments and Network Financial Technology Organic +19% +8% +2% Growth Adjusted +12% +7% flat Revenue $8,132 $6,287 $6,715 $3,170 $3,171 $7,292 FY22 FY23 FY22 FY23 FY22 FY23 +330bps +250bps +10bps 31.8% 35.1% 47.8% Adjusted 45.3% 36.5% 36.6% Oper
Slide 6: Merchant Acceptance Segment
Merchant Acceptance Segment Organic Growth: 4Q23 +24% Adjusted Revenue Fourth Quarter Highlights +14% 30% Clover revenue growth, with ® $2,065 $2,106 $2,114 VAS penetration of 19% $1,860 $1,847 $271 billion Clover annualized GPV, up 17% 5% and 8% volume and transaction growth 4Q22 1Q23 2Q23 3Q23 4Q2
Slide 7: Payments and Network Segment
Payments and Network Segment Organic Growth: 4Q23 +4% Adjusted Revenue Fourth Quarter Highlights Signed first CashFlow Central +3% SM bank as pipeline builds $1,671 $1,635 $1,650 $1,709 $1,721 44% and 23% growth in Zelle transactions and ® number of clients, respectively 7% debit transaction growth
Slide 8: Financial Technology Segment
Financial Technology Segment Organic Growth: 4Q23 -1% Adjusted Revenue Fourth Quarter Highlights -3% 4% full-year organic revenue growth, $823 $792 $784 $795 $800 excluding periodic revenue 12 core wins, including 4 with >$1B in assets 4Q22 1Q23 2Q23 3Q23 4Q23 Shift from software license sales to Ad
Slide 9: 2024 Performance Outlook
2024 Performance Outlook Key Financial Metrics Guidance Organic Revenue Growth 15% – 17% Adjusted EPS $8.55 – $8.70 (14% – 16% growth) Other Financial Metrics Adjusted Operating Margin Expansion >100bps Free Cash Flow ~$4.5B See Appendix for information regarding non-GAAP financial measures. Recogni
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: 4Q23 Revenue Details
4Q23 Revenue Details Merchant Payments Financial Corporate Total Acceptance and Network Technology and Other Company GAAP revenue $2,114 $1,718 $800 $285 $4,917 Output solutions postage reimbursements - - - (280) (280) Deferred revenue adjustments - 3 - - 3 Adjusted revenue $2,114 $1,721 $800 $5 $4,
Slide 13: Adjusted Revenue and Adjusted Operating Income
Adjusted Revenue and Adjusted Operating Income Total Company 4Q23 3Q23 2Q23 1Q23 4Q22 YTD23 YTD22 Revenue $ 4,917 $ 4,873 $ 4,756 $ 4,547 $ 4,631 $ 19,093 $ 17,737 Adjustments: Output Solutions postage reimbursements (280) (263) (255) (273) (277) (1,071) (989) Deferred revenue purchase accounting ad
Slide 14: Adjusted Revenue and Adjusted Operating Income by Segment
Adjusted Revenue and Adjusted Operating Income by Segment Merchant Acceptance Segment 4Q23 3Q23 2Q23 1Q23 4Q22 YTD23 YTD22 Revenue $ 2,114 $ 2,106 $ 2,065 $ 1,847 $ 1,860 $ 8,132 $ 7,292 Operating income $ 819 $ 757 $ 718 $ 562 $ 648 $ 2,856 $ 2,321 Operating margin 38.8 % 35.9 % 34.7 % 30.5 % 34.8
Slide 15: Adjusted Revenue and Adjusted Operating Income by Segment
Adjusted Revenue and Adjusted Operating Income by Segment Payments and Network Segment 4Q23 3Q23 2Q23 1Q23 4Q22 YTD23 YTD22 Revenue $ 1,718 $ 1,704 $ 1,645 $ 1,629 $ 1,665 $ 6,696 $ 6,262 Adjustments: Deferred revenue purchase accounting adjustments 3 5 5 6 6 19 25 Adjusted revenue $ 1,721 $ 1,709 $
Slide 16: Adjusted Revenue and Adjusted Operating Income by Segment
Adjusted Revenue and Adjusted Operating Income by Segment Financial Technology Segment 4Q23 3Q23 2Q23 1Q23 4Q22 YTD23 YTD22 Revenue $ 800 $ 795 $ 784 $ 792 $ 823 $ 3,171 $ 3,170 Operating income $ 303 $ 291 $ 285 $ 280 $ 340 $ 1,159 $ 1,157 Operating margin 37.9 % 36.7 % 36.3 % 35.4 % 41.3 % 36.6 %
Slide 17: Adjusted and Organic Revenue by Segment
Adjusted and Organic Revenue by Segment Three Months Ended December 31, Year Ended December 31, 2023 2022 Growth 2023 2022 Growth Total Company Revenue $ 4,917 $ 4,631 6% $ 19,093 $ 17,737 8% Output Solutions postage reimbursements (280) (277) (1,071) (989) Deferred revenue purchase accounting adjus
Slide 18: Adjusted and Organic Revenue by Segment (cont.)
Adjusted and Organic Revenue by Segment (cont.) Three Months Ended December 31, Year Ended December 31, 2023 2022 Growth 2023 2022 Growth Payments and Network Revenue $ 1,718 $ 1,665 3% $ 6,696 $ 6,262 7% Deferred revenue purchase accounting adjustments 3 6 19 25 Adjusted revenue $ 1,721 $ 1,671 3%
Slide 19: Adjusted Net Income and Adjusted EPS
Adjusted Net Income and Adjusted EPS 4Q23 3Q23 2Q23 1Q23 4Q22 YTD23 YTD22 GAAP net income attributable to Fiserv $ 870 $ 952 $ 683 $ 563 $ 782 $ 3,068 $ 2,530 Adjustments: Merger and integration costs 1 38 30 42 48 58 158 173 Severance costs 22 15 13 24 75 74 209 Amortization of acquisition-related
Slide 20: 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 various acquisitions. Merger and integration costs associated with integration activities primarily include $35 million of share-based compensation and $70 million of third
Slide 21: Free Cash Flow
Free Cash Flow 4Q23 3Q23 2Q23 1Q23 4Q22 YTD23 YTD22 Net cash provided by operating activities $ 1,595 $ 1,559 $ 878 $ 1,130 $ 1,633 $ 5,162 $ 4,618 Capital expenditures (354) (355) (340) (339) (331) (1,388) (1,479) Adjustments: Distributions paid to noncontrolling interests and (12) (8) (6) (8) (12)
Slide 22: Additional Information – Amortization Expense
Additional Information – Amortization Expense Total Amortization 4Q23 4Q22 YTD23 YTD22 Acquisition-related intangible assets $ 381 $ 433 $ 1,642 $ 1,849 Capitalized software and other intangibles 133 101 493 359 Purchased software 58 53 225 233 Financing costs and debt discounts 11 10 41 43 Sales co
Slide 23: 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 slide titled “Non-GAAP Financial Measu
Slide 24: 2024 Future View Performance Outlook – Organic Revenue Growth
2024 Future View Performance Outlook – Organic Revenue Growth Organic Revenue Growth 2024 Outlook Merchant Solutions 25% - 28% Financial Solutions 5% - 7% Total Company 15% - 17% The company is effecting changes in its business designed to further enhance operational performance in the delivery of i