Fiserv grows 15% revenue following key DoorDash deal

In the third quarter of fiscal year 2023, Fiserv, Inc., a financial technology provider based in the United States, reported a year-over-year revenue increase of 7%, totaling $5.22 billion, surpassing the anticipated $4.91 billion. Adjusted earnings per share (EPS) also rose by 17% to $2.30, outpacing the expected $2.26. A significant driver for this growth was the organic revenue increase of 15%, particularly propelled by a 24% increase in Merchant Solutions and 6% growth in Financial Solutions. Adjusted operating margins also improved, reaching 40.2% overall, with notable increases in both major segments of the company. As part of its strategic initiatives, Fiserv announced a partnership with DoorDash to integrate financial services within the delivery platform. This collaboration involves leveraging Fiserv's capabilities in merchant acquiring, account processing, and card issuing, aimed at enhancing the financial tools available for Dashers, the delivery drivers on the platform. Starion Bank will support this initiative as the Sponsor Bank for accounts created through this integration. Looking to the future, Fiserv has adjusted its fiscal year 2024 guidance, raising its organic revenue growth outlook to a range of 16%-17% and predicting an adjusted EPS between $8.73 and $8.80. The recent partnership and positive financial results reflect Fiserv’s ongoing adaptability and commitment to expanding its market presence. The stock performance has been strong, showing an 80% increase over the last year. The company’s overall performance indicates a solid foundation for continued growth amidst a changing market landscape for financial services.