Fiserv Inc. (FISV) Q1 2023 Earnings Call Transcript

Fiserv Inc. (NASDAQ:FISV) Q1 2023 Results Conference Call April 25, 2023 8:00 AM ET

Company Participants

Julie Chariell - Senior Vice President, Investor Relations

Bob Hau - Chief Financial Officer

Frank Bisignano - Chairman, President & Chief Executive Officer

Conference Call Participants

Tien-Tsin Huang - JPMorgan

Ramsey El-Assal - Barclays

Lisa Ellis - MoffettNathanson

Timothy Chiodo - Credit Suisse

Dave Togut - Evercore ISI

Dave Koning - Baird

Operator

Welcome to the Fiserv 2023 First Quarter Earnings Conference Call. [Operator Instructions]. As a reminder, today's call is being recorded. At this time, I will turn the call over to Julie Chariell, Senior Vice President of Investor Relations at Fiserv.

Julie Chariell

Thank you, and good morning. With me on the call today are Frank Bisignano, our Chairman, President, and Chief Executive Officer; and Bob Hau, our Chief Financial Officer. Our earnings release and supplemental materials for the quarter are available on the Investor Relations section of fiserv.com. Please refer to these materials for an explanation of the non-GAAP financial measures discussed on this call, along with the reconciliation of those measures to the nearest applicable GAAP measures. Unless otherwise stated, performance references are year-over-year comparisons.

Our remarks today will include forward-looking statements about, among other matters, expected operating and financial results and strategic initiatives. Forward-looking statements may differ materially from actual results and are subject to a number of risks and uncertainties. You should refer to our earnings release for a discussion of these risk factors.

And now over to Frank.

Frank Bisignano

Thank you, Julie, and thank you all for joining us today. Fiserv is off to a strong start in 2023 with first quarter adjusted revenue growth of 10% and adjusted earnings per share of $1.58, up 13%. Adjusted operating margin of 33.6% was up 160 basis points. Organic revenue growth was 13%, above our 7% to 9% outlook for the full year, demonstrating our ability to sustain accelerated growth. Importantly, the growth was multidimensional.

It included elevated contributions from card processing, noncard payments, and digital banking solutions. Growth was also strong in all three of our international regions and in merchant acceptance. Investment on behalf of our clients and with our partners is paying off. We believe that accelerating our investment over the last three years, both organic and via M&A, has extended our leadership position among fintech’s. This counters the narrative over the last few years that many start-ups in the payments and fintech space would disrupt and potentially replace the legacy companies.