Fiserv Financial Technologies maintain triple-digit profit growth

Financial technology company Fiserv, Inc. (FISV) has published a report for the second quarter of 2022, in which the company again demonstrated triple-digit profit growth. Since the beginning of the year, FISV stock has gained less than 1% to $104.46 at auction on July 27. The market capitalization was $67.06 billion. In the last quarter, Fiserv’s revenue grew 10% year-on-year to $4.45 billion, while revenue in the payment acceptance segment increased by 14%. GAAP profit increased by 130% to $0.92 per share, and the operating margin exceeded 19%. 

The stock of cash and equivalents in the first half of the year amounted to just over $1.8 billion (last year, it was about $ 2 billion). The company bought 10.2 million shares for $1 billion in six months. Fiserv’s organic revenue growth was 11%, and free cash flow was $1.26 billion allowed Fiserv to maintain its forecast for the current year and even expect to receive revenue at the upper limit of the forecast range. End of 2022, the company expects organic revenue growth of 9-11% and adjusted profit of $6.45—$6.55, which means an increase of 16-17%. One of the drivers of improving Fiserv’s financial performance is the Clover payment platform for small and medium-sized businesses. 

It includes a large set of tools and services for retail, allowing you to quickly launch various services, for example, issue gift cards or provide club bonuses. Clover’s revenue in the second quarter increased by 24%, and financial volumes on the platform increased by 27% to $58 billion. Fiserv has a history of about 40 years. Its business concept is similar to Block Inc.’s services– providing modern payment instruments for small organizations. The difference is that Fiserv makes extensive use of partnerships and third-party software. Currently, Fiserv is expanding the capabilities of its Clover platform, in particular, offering new accounting and inventory management tools.