Fiserv Sees 21% Adjusted EPS Increase in Q4 2021

Fiserv, Inc. (NASDAQ: FISV), a leading global provider of payments and financial services technology, has reported financial results for the fourth quarter and full year 2021.

Fourth Quarter and Full Year 2021 GAAP Results

GAAP revenue for the company increased 11% to $4.26 billion in the fourth quarter of 2021 compared to the prior year period, with 18% growth in the Acceptance segment, 4% growth in the Fintech segment and 9% growth in the Payments segment. GAAP revenue for the company increased 9% to $16.23 billion for the full year of 2021 compared to the prior year, with 17% growth in the Acceptance segment, 4% growth in the Fintech segment and 6% growth in the Payments segment.

GAAP earnings per share was $0.50 in the fourth quarter and $1.99 for the full year of 2021, an increase of 14% and 42%, respectively, compared to the prior year periods. GAAP operating margin was 12.5% and 14.1% in the fourth quarter and full year of 2021, respectively, compared to 13.5% and 12.5% in the fourth quarter and full year of 2020, respectively. Net cash provided by operating activities was $4.03 billion for the full year of 2021 compared to $4.15 billion in the prior year.

"We are pleased with our fourth quarter results as we delivered another quarter of strong organic revenue and adjusted EPS growth," said Frank Bisignano, President and Chief Executive Officer of Fiserv. "For 2021, Fiserv had another successful year of delivering on our growth agenda - attaining the high end of our original organic revenue growth outlook and coming in well above our original adjusted EPS outlook, all while investing in the business to fuel further growth as we innovate to provide value for our clients."

Fourth Quarter and Full Year 2021 Non-GAAP Results and Additional Information

• Adjusted revenue increased 11% to $4.02 billion in the fourth quarter and increased 11% to $15.39 billion for the full year of 2021 compared to the prior year periods.

• Organic revenue growth was 11% in the fourth quarter of 2021, led by 19% growth in the Acceptance segment, 4% growth in the Fintech segment and 8% growth in the Payments segment.

• Organic revenue growth was 11% for the full year of 2021, led by 20% growth in the Acceptance segment, 4% growth in the Fintech segment and 6% growth in the Payments segment.

• Adjusted earnings per share increased 21% to $1.57 in the fourth quarter and 26% to $5.58 for the full year of 2021 compared to the prior year periods.

• Adjusted operating margin was flat in the fourth quarter at 35.6% and increased 250 basis points to 33.9% for the full year of 2021 compared to the prior year periods.

• Free cash flow was $3.53 billion for the full year of 2021 compared to $3.65 billion in the prior year.

The company repurchased 9.9 million shares of common stock for $1.00 billion in the fourth quarter and 23.3 million shares of common stock for $2.57 billion in the full year of 2021.

The company commenced the issuance of Euro commercial paper during the fourth quarter of 2021, lowering its effective cost of debt.

In February 2022, the company entered into a definitive agreement to acquire Finxact, Inc., a leading developer of cloud-native digital banking solutions powering digital transformation throughout financial services. The company expects the transaction to close later this year, subject to customary approvals and closing conditions.

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In January 2022, Fiserv was named to the 2022 Bloomberg Gender-Equality Index, marking the sixth consecutive year that the company has been recognized for its efforts to build and maintain an inclusive and equitable working environment.

​Source: Business Wire