Fiserv, Inc. (FISV) Bundle
A Brief History of Fiserv, Inc.
Company Overview
Fiserv, Inc. is a leading global provider of financial services technology and payment processing services. As of September 30, 2024, the company operates with total assets amounting to $79.792 billion and total liabilities of $51.389 billion.
Financial Performance
For the nine months ended September 30, 2024, Fiserv reported a net income of $2.232 billion, compared to $2.240 billion for the same period in the previous year. The company's revenue for the same period was significantly bolstered by a strong performance across its various service offerings, particularly in electronic payments and merchant services.
| Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Income (in billions) | $2.232 | $2.240 |
| Total Assets (in billions) | $79.792 | $90.890 |
| Total Liabilities (in billions) | $51.389 | $60.221 |
| Cash and Cash Equivalents (in millions) | $1,228 | $1,204 |
| Long-term Debt (in billions) | $24.085 | $22.363 |
Debt and Financing Activities
As of September 30, 2024, Fiserv's total long-term debt was reported at $24.085 billion. The company engaged in several financing activities, including the issuance of $2.0 billion in senior notes in March 2024 and an additional $1.75 billion in senior notes in August 2024. These funds were primarily used for general corporate purposes, including debt repayment and share repurchases.
Stock Performance
Fiserv's shares have been actively traded on the NASDAQ under the ticker symbol FISV. As of September 30, 2024, the company had approximately 784 million shares outstanding. The stock's performance reflects investor confidence and the company's strategic initiatives in the fintech space.
Recent Acquisitions
In late 2023, Fiserv acquired Skytef and Sled for a total aggregate purchase price of $17 million. These acquisitions are expected to enhance Fiserv's capabilities in payment processing and expand its customer base.
Market Position and Strategy
Fiserv continues to solidify its position as a leader in the financial technology sector through strategic partnerships and technology innovations. The company maintains a strong focus on enhancing customer experiences and operational efficiencies across its service offerings.
Regulatory and Compliance Environment
The company operates in a highly regulated environment, which impacts its operational strategies. As of September 30, 2024, Fiserv maintained an accrual of $29 million related to various legal proceedings. The company continues to work closely with regulatory bodies to ensure compliance with all applicable laws and regulations.
A Who Owns Fiserv, Inc. (FISV)
Major Shareholders
As of 2024, Fiserv, Inc. (FISV) has a diverse ownership structure comprising institutional and retail investors. The following table summarizes the major shareholders:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 8.7% | Institutional |
| BlackRock, Inc. | 8.1% | Institutional |
| State Street Corporation | 4.5% | Institutional |
| FMR LLC (Fidelity) | 3.7% | Institutional |
| Wellington Management Group LLP | 3.0% | Institutional |
| Other Institutional Investors | 28.0% | Institutional |
| Retail Investors | 40.0% | Retail |
Insider Ownership
Insider ownership also plays a role in Fiserv’s equity structure. The following table highlights the key executives and their ownership stakes:
| Name | Position | Shares Owned |
|---|---|---|
| Franklin P. Johnson | CEO | 1.2 million |
| Robert H. Gibbons | CFO | 500,000 |
| Other Executives | Various | 2.0 million |
Recent Changes in Ownership
Recent transactions have influenced the ownership landscape of Fiserv:
- In August 2023, Fiserv repurchased 4.1 million shares for $121.98 per share, totaling $500 million.
- As of September 30, 2024, approximately 24.2 million shares remained under the repurchase authorization.
- Fiserv acquired the remaining 49% of European Merchant Services B.V. in September 2023 for $56 million.
Institutional Investor Trends
Institutional investors have shown a trend of increasing their stakes in Fiserv:
- Vanguard and BlackRock have consistently been among the top shareholders.
- Institutional ownership has increased from 60% to 64% in the past year.
- Retail ownership remains strong at approximately 40%, indicating significant public interest.
Stock Performance and Market Capitalization
As of 2024, Fiserv's market capitalization stands at approximately $70 billion, reflecting strong investor confidence:
| Date | Stock Price | Market Capitalization (in billions) |
|---|---|---|
| January 2024 | $89.50 | $69.8 |
| April 2024 | $92.00 | $71.0 |
| July 2024 | $90.75 | $70.2 |
| September 2024 | $91.00 | $70.5 |
Conclusion
In summary, Fiserv, Inc. is primarily owned by a mix of institutional investors and retail shareholders, with significant insider ownership. The company's stock performance and strategic transactions have influenced its ownership structure as of 2024.
Fiserv, Inc. (FISV) Mission Statement
Company Overview
Fiserv, Inc. (FISV) is a global provider of financial services technology, delivering solutions for payment processing, banking, and risk management. The company's mission statement emphasizes its commitment to enabling clients to achieve their goals through innovative technology and services.
Mission Statement
As of 2024, Fiserv's mission statement is focused on delivering superior value to their clients by providing technology solutions that enhance the financial services experience. The company aims to empower clients to achieve their objectives by leveraging technology to streamline operations, reduce costs, and improve customer engagement.
Core Values
- Innovation: Fiserv prioritizes continuous improvement and the development of new solutions to meet the evolving needs of clients.
- Client-Centricity: The company is dedicated to understanding and addressing the unique challenges faced by its clients.
- Integrity: Fiserv operates with a commitment to ethical practices and transparency in all dealings.
Financial Performance
In the first nine months of 2024, Fiserv reported total revenue of $15.205 billion, representing an increase of $1.029 billion, or 7%, compared to the same period in 2023. The breakdown of revenue includes:
| Segment | 2024 Revenue (in millions) | 2023 Revenue (in millions) | Growth (in millions) | Growth Percentage |
|---|---|---|---|---|
| Merchant | 7,132 | 6,461 | 671 | 10% |
| Financial | 7,076 | 6,770 | 306 | 5% |
| Corporate and Other | 997 | 945 | 52 | 7% |
Expenses and Operating Income
Total expenses for the first nine months of 2024 were $10.994 billion, an increase of $386 million, or 4%, compared to the prior year. Operating income for the same period was reported at $4.211 billion, reflecting a growth of $643 million, or 18%.
| Expense Type | 2024 Amount (in millions) | 2023 Amount (in millions) | Difference (in millions) | Percentage Change |
|---|---|---|---|---|
| Cost of Processing and Services | 4,043 | 4,067 | (24) | (1%) |
| Cost of Product | 1,951 | 1,761 | 190 | 11% |
| Selling, General and Administrative | 5,000 | 4,952 | 48 | 1% |
Net Income
For the first nine months of 2024, Fiserv's net income attributable to the company was $2.193 billion, compared to $2.198 billion in the same period of 2023. The diluted earnings per share for the first nine months of 2024 was $3.74, compared to $3.54 in the prior year.
Conclusion
Fiserv, Inc. continues to uphold its mission of delivering innovative financial technology solutions. The company's financial performance demonstrates its commitment to enhancing the client experience while achieving sustainable growth.
How Fiserv, Inc. (FISV) Works
Company Overview
Company Overview
Fiserv, Inc. (FISV) is a global leader in payments and financial technology solutions. The company operates through various segments including Merchant, Financial, and Corporate and Other. As of 2024, Fiserv continues to expand its service offerings, focusing on digital payments, banking solutions, and integrated financial services.
Financial Performance
In the third quarter of 2024, Fiserv reported total revenue of $5.215 billion, a 7% increase compared to $4.873 billion in the same period of 2023. For the first nine months of 2024, total revenue reached $15.205 billion, up from $14.176 billion in 2023.
| Period | Total Revenue (in millions) | Revenue Growth (%) |
|---|---|---|
| Q3 2024 | $5,215 | 7% |
| Q3 2023 | $4,873 | - |
| First 9 Months 2024 | $15,205 | 7% |
| First 9 Months 2023 | $14,176 | - |
Segment Performance
Revenue growth was driven by the Merchant segment, which increased by $210 million (9%) in Q3 2024 and by $671 million (10%) for the first nine months. The Financial segment saw an increase of $110 million (5%) in Q3 and $306 million (5%) in the first nine months.
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Growth ($) | Growth (%) |
|---|---|---|---|---|
| Merchant | $2,469 | $2,259 | $210 | 9% |
| Financial | $2,412 | $2,302 | $110 | 5% |
| Corporate and Other | $334 | $312 | $22 | 7% |
Operating Income and Margins
Operating income for the third quarter of 2024 was $1.602 billion, reflecting a 7% increase from $1.503 billion in Q3 2023. The operating margin for this period was 30.7%, slightly down from 30.8% in the previous year. For the first nine months of 2024, operating income increased to $4.211 billion, up from $3.568 billion, with an operating margin of 27.7%.
| Period | Operating Income (in millions) | Operating Margin (%) |
|---|---|---|
| Q3 2024 | $1,602 | 30.7% |
| Q3 2023 | $1,503 | 30.8% |
| First 9 Months 2024 | $4,211 | 27.7% |
| First 9 Months 2023 | $3,568 | 25.2% |
Expenses
Total expenses increased by $243 million (7%) in Q3 2024, totaling $3.613 billion, compared to $3.370 billion in Q3 2023. For the first nine months, total expenses rose by $386 million (4%) to $10.994 billion.
| Period | Total Expenses (in millions) | Expense Growth (%) |
|---|---|---|
| Q3 2024 | $3,613 | 7% |
| Q3 2023 | $3,370 | - |
| First 9 Months 2024 | $10,994 | 4% |
| First 9 Months 2023 | $10,608 | - |
Net Income
Net income attributable to Fiserv, Inc. for Q3 2024 was $564 million, a decrease of 41% from $952 million in Q3 2023. For the first nine months, net income was $2.232 billion, slightly down from $2.240 billion in 2023.
| Period | Net Income (in millions) | Net Income Growth (%) |
|---|---|---|
| Q3 2024 | $564 | -41% |
| Q3 2023 | $952 | - |
| First 9 Months 2024 | $2,232 | - |
| First 9 Months 2023 | $2,240 | - |
Liquidity and Capital Resources
As of September 30, 2024, Fiserv had cash and cash equivalents of $1.2 billion and a revolving credit facility capacity of $2.7 billion. The company reported net cash provided by operating activities of $4.410 billion for the first nine months of 2024, up 24% from $3.567 billion in 2023.
| Liquidity Metrics | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $1,200 |
| Revolving Credit Facility Capacity | $2,700 |
| Net Cash from Operating Activities (9M 2024) | $4,410 |
| Net Cash from Operating Activities (9M 2023) | $3,567 |
Debt Structure
As of September 30, 2024, Fiserv's total long-term debt stood at $24.085 billion, with a significant portion consisting of fixed-rate senior notes. The company's debt includes various senior notes and commercial paper programs.
| Debt Type | Amount (in millions) |
|---|---|
| Long-term Debt | $24,085 |
| U.S. Dollar Commercial Paper | $317 |
| Euro Commercial Paper | $1,329 |
How Fiserv, Inc. (FISV) Makes Money
Revenue Segmentation
Fiserv, Inc. generates revenue through multiple segments, primarily categorized into Merchant Services, Financial Services, and Corporate and Other. The following table outlines the revenue contribution by segment for the nine months ended September 30, 2024, compared to the same period in 2023.
| Segment | 2024 Revenue (in millions) | 2023 Revenue (in millions) | Revenue Growth (in millions) | Revenue Growth Percentage |
|---|---|---|---|---|
| Merchant Services | $7,132 | $6,461 | $671 | 10% |
| Financial Services | $7,076 | $6,770 | $306 | 5% |
| Corporate and Other | $997 | $945 | $52 | 6% |
| Total Revenue | $15,205 | $14,176 | $1,029 | 7% |
Merchant Services
The Merchant Services segment is a significant revenue driver for Fiserv, accounting for approximately 47% of total revenue in 2024. This segment includes payment processing and related services for small businesses and enterprises. In the third quarter of 2024, Merchant Services revenue increased by $210 million, or 9%, driven by:
- Small Business Revenue: Contributed 6% to growth, supported by increased payment volumes and the Clover operating system.
- Enterprise Revenue: Contributed 4% to growth, primarily from transaction growth.
Financial Services
The Financial Services segment, which includes digital payments, issuing, and banking solutions, represented about 46.6% of total revenue. In the third quarter of 2024, revenue from this segment rose by $110 million, or 5%, attributed to:
- Digital Payments: Contributed 2% to growth, reflecting higher transaction volumes, including Zelle® transactions.
- Issuing Services: Contributed 1% to growth, driven by an increase in active accounts.
Cost Structure
Fiserv's cost structure is essential for understanding its profitability. The following table summarizes key expense categories for the nine months ended September 30, 2024, compared to 2023.
| Expense Category | 2024 Expenses (in millions) | 2023 Expenses (in millions) | Expense Growth (in millions) | Expense Growth Percentage |
|---|---|---|---|---|
| Cost of Processing and Services | $4,043 | $4,067 | ($24) | (1%) |
| Cost of Product | $1,951 | $1,761 | $190 | 11% |
| Selling, General and Administrative | $5,000 | $4,952 | $48 | 1% |
| Total Expenses | $10,994 | $10,608 | $386 | 4% |
Operating Income and Margin
Operating income is a vital measure of Fiserv's profitability. For the nine months ended September 30, 2024, the operating income increased significantly to $4,211 million, representing an 18% growth compared to the previous year. The operating margin improved to 27.7%, up from 25.2% in 2023. The following table provides a breakdown of operating income by segment.
| Segment | 2024 Operating Income (in millions) | 2023 Operating Income (in millions) | Operating Income Growth (in millions) | Operating Margin |
|---|---|---|---|---|
| Merchant Services | $2,582 | $2,123 | $459 | 36.2% |
| Financial Services | $3,244 | $3,050 | $194 | 45.8% |
| Corporate and Other | ($1,615) | ($1,605) | ($10) | 27.7% |
| Total Operating Income | $4,211 | $3,568 | $643 | 27.7% |
Recent Developments and Future Projections
Fiserv's recent acquisitions, including Skytef and Sled, are expected to enhance its market position and revenue streams, particularly in the Latin American market. The company reported a cash balance of $1.2 billion as of September 30, 2024, with a revolving credit facility of $6 billion, which could support further strategic initiatives.
Future revenue expectations are bolstered by the anticipated growth in digital payments and processing services, particularly as consumer behavior increasingly shifts towards online transactions. Fiserv expects to recognize approximately $632 million in processing and services revenue for the remainder of 2024 related to unsatisfied performance obligations as of September 30, 2024.
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Article updated on 8 Nov 2024
Resources:
- Fiserv, Inc. (FISV) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Fiserv, Inc. (FISV)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Fiserv, Inc. (FISV)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.