Name: Fiserv Inc. (NASDAQ:FISV) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Fiserv Inc., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Processing and services	13,307)	12,215)	8,573)	4,975)	4,833)
Product	2,919)	2,637)	1,614)	848)	863)
Revenue	16,226)	14,852)	10,187)	5,823)	5,696)
Cost of processing and services	(6,084)	(5,841)	(4,016)	(2,324)	(2,291)
Cost of product	(2,044)	(1,971)	(1,293)	(745)	(733)
Cost of revenue	(8,128)	(7,812)	(5,309)	(3,069)	(3,024)
Gross profit	8,098)	7,040)	4,878)	2,754)	2,672)
Selling, general and administrative	(5,810)	(5,652)	(3,284)	(1,228)	(1,150)
Gain on sale of businesses	—)	464)	15)	227)	10)
Operating income	2,288)	1,852)	1,609)	1,753)	1,532)
Interest expense	(696)	(716)	(507)	(193)	(176)
Interest income	3)	7)	34)	4)	1)
Interest expense, net	(693)	(709)	(473)	(189)	(175)
Debt financing activities	—)	—)	(47)	(14)	—)
Other income (expense)	71)	28)	(6)	5)	1)
Income from continuing operations before income taxes and income from investments in unconsolidated affiliates	1,666)	1,171)	1,083)	1,555)	1,358)
Income tax provision	(363)	(196)	(198)	(378)	(158)
Income from investments in unconsolidated affiliates	100)	—)	29)	10)	32)
Income from continuing operations	1,403)	975)	914)	1,187)	1,232)
Income from discontinued operations, net of income taxes	—)	—)	—)	—)	14)
Net income	1,403)	975)	914)	1,187)	1,246)
Net income attributable to noncontrolling interests and redeemable noncontrolling interests	(69)	(17)	(21)	—)	—)
Net income attributable to Fiserv, Inc.	1,334)	958)	893)	1,187)	1,246)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Revenue experienced substantial growth between 2017 and 2021, increasing from 5,696 million US$ to 16,226 million US$. A significant acceleration in top-line growth occurred in 2019 and 2020, with total revenue nearly tripling over the five-year period. This expansion was driven by both processing and services and product segments, though processing and services remained the primary contributor to total revenue.

Gross Profitability and Margin Trends: Gross profit grew from 2,672 million US$ in 2017 to 8,098 million US$ in 2021. The gross profit margin remained relatively stable, hovering around 47% for most of the period before expanding to approximately 50% by 2021. This indicates that the cost of revenue scaled proportionally with the rapid increase in sales.
Operating Expenses and Operating Income: Selling, general and administrative expenses rose sharply from 1,150 million US$ in 2017 to 5,810 million US$ in 2021. This rapid increase in overhead coincided with the revenue surge, particularly in 2019 and 2020. Operating income showed more volatility, dipping in 2019 to 1,609 million US$ before recovering to 2,288 million US$ by 2021, suggesting a period of high integration or operational costs following the 2019 expansion.
Financial Costs and Leverage: Net interest expense increased significantly, rising from 175 million US$ in 2017 to a peak of 709 million US$ in 2020, before slightly decreasing to 693 million US$ in 2021. This upward trend in interest obligations suggests an increase in debt levels to fund growth or acquisitions during the 2019-2020 window.
Net Income and Bottom Line Performance: Net income attributable to Fiserv, Inc. followed a U-shaped trajectory, starting at 1,246 million US$ in 2017, declining to a low of 893 million US$ in 2019, and recovering to 1,334 million US$ by 2021. The decline in net income during a period of massive revenue growth indicates that the costs associated with expansion, increased interest expenses, and higher administrative overhead temporarily offset the gains in gross profit.

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