Q2 2024 Fiserv Inc Earnings Call Transcript
Key Points
- Fiserv Inc (FI) reported strong second-quarter results with adjusted earnings per share of $2.13, up 18% year-over-year.
- The company achieved 7% adjusted revenue growth and a 160 basis point increase in adjusted operating margin to 38.4%.
- Clover revenue grew by 28%, driven by new product rollouts and international expansion plans in Brazil, Mexico, and Australia.
- Fiserv Inc (FI) signed multiple high-profile clients, including Verizon and Apple, and expanded into new verticals such as Petro Gaming, government, and healthcare.
- The company generated $1 billion in free cash flow for the quarter and returned $1.5 billion to shareholders through share repurchases.
- The merchant processing segment experienced a decline in volumes and revenue from a few large processing clients.
- Organic revenue growth was partially driven by a transitory contribution from Argentina, which is expected to decline faster than anticipated.
- The company maintained its full-year revenue outlook despite a more rapid return to historic average inflation and interest rates in Argentina, which could impact future growth.
- There was a noted slowdown in small business volume growth and enterprise transaction growth in Q2, attributed to various macroeconomic factors.
- The company faces ongoing challenges in maintaining growth in the processing business line, which is expected to remain flat over the medium term.
Welcome to the Fiserv second-quarter 2024 earnings conference call. (Operator Insructions) 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.
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 a 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
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