Fiserv, Inc. (NYSE: FI), a provider of payments and financial services technology solutions, announced its financial results for the first quarter of 2024 on Tuesday. The company reported an uptick of 7% in GAAP revenue and an elevation of 20% in organic revenue compared to the same period last year.
Fiserv Reports Strong First Quarter 2024 Results
According to the report, total revenues reached $4.88 billion, compared to $4.56 billion in the same period last year. As a result, operating income rose to $1.18 billion, and net income was $752 million, compared to $576 million in Q1 2023. Adjusted net income was $1.12 billion, up from $996 million in the previous period.
The company remains focused on its "virtuous cycle of investment, revenue growth, operating leverage, capital return and re-investment for further growth," according to Frank Bisignano, the CEO of Fiserv.
GAAP earnings per share (EPS) rose 39% to $1.24 in the first quarter of 2024, while adjusted EPS grew 19% to $1.88. Fiserv's GAAP operating margin improved to 24.2% from 20.5% in the previous year's quarter.
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Segment Performance and Cash Flow
The Merchant Solutions segment saw a significant increase in GAAP operating margin, reaching 34.1% compared to 29.7% in Q1 2023, and the Financial Solutions segment's margin improved to 44.1% from 42.4%.
The company's Merchant Solutions segment experienced an upscale of 13% in GAAP revenue, while the Financial Solutions segment saw a slight move of 3%. Adjusted revenue grew 7% overall, with organic revenue growth reaching 36% in Merchant Solutions and 5% in Financial Solutions.
Net cash provided by operating activities amounted to $831 million in Q1 2024, a fall from $1.13 billion in the prior year period. Free cash flow declined to $454 million from $861 million in Q1 2023.
Outlook and Strategic Initiatives
Fiserv affirmed its 2024 organic revenue growth outlook of 15% to 17% and raised its adjusted EPS outlook of $8.60 to $8.75, representing a growth of 14% to 16%.
“Current model, along with our strong first quarter results, led us to raise our 2024 adjusted earnings per share outlook for the full year,” added Bisignano.
During the first quarter, Fiserv repurchased 10.2 million shares of common stock for $1.5 billion and completed a public offering of $2.0 billion in senior notes.
A month ago, Fiserv and Amadeus IT Group entered a competition to purchase Shift4 Payments, a payment processor valued at nearly $7 billion. Reuters reported that both companies are gearing up to submit their final offers for the acquisition in the coming weeks. Concurrently, Fiserv has collaborated with NCR Atleos Corporation to allow consumers to pay for utilities, phone, cable, and other bills in cash through thousands of ATMs situated in US retailers, grocery stores, convenience stores, and pharmacies.
