Fiserv Posts 10% YoY Increase in Revenue in Q1 2022

Fiserv, Inc., a leading global provider of payments and financial services technology solutions, reported financial results for the first quarter of 2022.

GAAP revenue for the company grew 10% to $4.14 billion in the first quarter of 2022 compared to the prior year period, with 18% growth in the Acceptance segment, 6% growth in the Fintech segment and 4% growth in the Payments segment.

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GAAP earnings per share was $1.02 in the first quarter of 2022, an increase of 127% compared to the prior year period. GAAP operating margin was 20.5% in the first quarter of 2022, compared to 12.6% in the prior year period. The first quarter of 2022 includes a $147 million pre-tax gain from the previously disclosed sale of certain merchant contracts from a merchant alliance joint venture. Net cash provided by operating activities was $815 million in the first quarter of 2022 compared to $952 million in the prior year period.

"We had a strong start to the year as we posted double-digit organic revenue and adjusted earnings per share growth, both above the outlook range we provided for the year,"said Frank Bisignano, President and Chief Executive Officer of Fiserv."We delivered these results while continuing our strategy of investing in innovation for growth."

First Quarter 2022 Non-GAAP Results and Additional Information

• ​Adjusted revenue increased 10% to $3.91 billion in the first quarter of 2022 compared to the prior year period.

• ​Organic revenue growth was 11% in the first quarter of 2022, led by 20% growth in the Acceptance segment, 6% growth in the Fintech segment and 5% growth in the Payments segment.

• ​Adjusted earnings per share increased 20% to $1.40 in the first quarter of 2022 compared to the prior year period.

• ​Adjusted operating margin increased 60 basis points to 32.0% in the first quarter of 2022 compared to the prior year period.

• ​Free cash flow was $603 million in the first quarter of 2022 compared to $821 million in the prior year period.

• ​The company repurchased 5.1 million shares of common stock for $500 million in the first quarter of 2022.

• ​In April 2022, the company completed its previously announced acquisition of Finxact, Inc., a developer of cloud-native banking solutions powering digital transformation throughout the financial services sector.

Fiserv continues to expect organic revenue growth of 7% to 9% and adjusted earnings per share in a range of $6.40 to $6.55, representing growth of 15% to 17%, for 2022.

"We remain confident in our 2022 outlook in spite of challenging macroeconomic factors that create some uncertainty,"said Bisignano."We believe the resilience of our business, the strength and breadth of our assets and our robust pipeline of innovation provide the tools to deliver value in any environment."