Delaware | 47-0772104 | |||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
6060 Coventry Drive | Elkhorn, | Nebraska | 68022 |
|||||||||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, $0.005 par value | ACIW | Nasdaq Global Select Market |
Press Release dated November 7, 2024 | |||||
Investor presentation materials dated November 7, 2024 | |||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
ACI WORLDWIDE, INC.
(Registrant)
|
||||||||
Date: November 7, 2024 | By: |
/s/ SCOTT W. BEHRENS |
||||||
Scott W. Behrens |
||||||||
Executive Vice President, Chief Financial Officer and Chief Accounting Officer
(Principal Financial Officer)
|
September 30, 2024 | December 31, 2023 | ||||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 177,860 | $ | 164,239 | |||||||
Receivables, net of allowances | 424,518 | 452,337 | |||||||||
Settlement assets | 428,479 | 723,039 | |||||||||
Prepaid expenses | 31,878 | 31,479 | |||||||||
Other current assets | 22,865 | 35,551 | |||||||||
Total current assets | 1,085,600 | 1,406,645 | |||||||||
Noncurrent assets | |||||||||||
Accrued receivables, net | 338,977 | 313,983 | |||||||||
Property and equipment, net | 31,441 | 37,856 | |||||||||
Operating lease right-of-use assets | 29,181 | 34,338 | |||||||||
Software, net | 90,313 | 108,418 | |||||||||
Goodwill | 1,226,026 | 1,226,026 | |||||||||
Intangible assets, net | 172,310 | 195,646 | |||||||||
Deferred income taxes, net | 64,674 | 58,499 | |||||||||
Other noncurrent assets | 54,463 | 63,328 | |||||||||
TOTAL ASSETS | $ | 3,092,985 | $ | 3,444,739 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 47,912 | $ | 45,964 | |||||||
Settlement liabilities | 428,080 | 721,164 | |||||||||
Employee compensation | 42,806 | 53,892 | |||||||||
Current portion of long-term debt | 34,910 | 74,405 | |||||||||
Deferred revenue | 68,550 | 59,580 | |||||||||
Other current liabilities | 75,036 | 82,244 | |||||||||
Total current liabilities | 697,294 | 1,037,249 | |||||||||
Noncurrent liabilities | |||||||||||
Deferred revenue | 19,315 | 24,780 | |||||||||
Long-term debt | 959,387 | 963,599 | |||||||||
Deferred income taxes, net | 38,439 | 40,735 | |||||||||
Operating lease liabilities | 23,601 | 29,074 | |||||||||
Other noncurrent liabilities | 25,319 | 25,005 | |||||||||
Total liabilities | 1,763,355 | 2,120,442 | |||||||||
Commitments and contingencies | |||||||||||
Stockholders’ equity | |||||||||||
Preferred stock | — | — | |||||||||
Common stock | 702 | 702 | |||||||||
Additional paid-in capital | 725,724 | 712,994 | |||||||||
Retained earnings | 1,499,530 | 1,394,967 | |||||||||
Treasury stock | (791,353) | (674,896) | |||||||||
Accumulated other comprehensive loss | (104,973) | (109,470) | |||||||||
Total stockholders’ equity | 1,329,630 | 1,324,297 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 3,092,985 | $ | 3,444,739 |
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Software as a service and platform as a service | $ | 223,367 | $ | 211,369 | $ | 674,498 | $ | 625,975 | |||||||||||||||
License | 157,429 | 79,679 | 252,984 | 142,681 | |||||||||||||||||||
Maintenance | 47,559 | 51,942 | 144,046 | 153,436 | |||||||||||||||||||
Services | 23,397 | 20,025 | 69,722 | 53,924 | |||||||||||||||||||
Total revenues | 451,752 | 363,015 | 1,141,250 | 976,016 | |||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Cost of revenue (1) | 197,351 | 177,625 | 591,696 | 537,522 | |||||||||||||||||||
Research and development | 37,660 | 33,739 | 108,063 | 106,122 | |||||||||||||||||||
Selling and marketing | 28,691 | 29,442 | 83,992 | 98,166 | |||||||||||||||||||
General and administrative | 33,949 | 29,821 | 84,942 | 92,675 | |||||||||||||||||||
Depreciation and amortization | 31,515 | 30,464 | 86,710 | 93,439 | |||||||||||||||||||
Total operating expenses | 329,166 | 301,091 | 955,403 | 927,924 | |||||||||||||||||||
Operating income | 122,586 | 61,924 | 185,847 | 48,092 | |||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Interest expense | (18,356) | (19,840) | (55,837) | (58,641) | |||||||||||||||||||
Interest income | 3,871 | 3,495 | 11,833 | 10,458 | |||||||||||||||||||
Other, net | (823) | 1,084 | (1,692) | (6,403) | |||||||||||||||||||
Total other income (expense) | (15,308) | (15,261) | (45,696) | (54,586) | |||||||||||||||||||
Income (loss) before income taxes | 107,278 | 46,663 | 140,151 | (6,494) | |||||||||||||||||||
Income tax expense (benefit) | 25,851 | 8,752 | 35,588 | (5,387) | |||||||||||||||||||
Net income (loss) | $ | 81,427 | $ | 37,911 | $ | 104,563 | $ | (1,107) | |||||||||||||||
Income (loss) per common share | |||||||||||||||||||||||
Basic | $ | 0.78 | $ | 0.35 | $ | 0.99 | $ | (0.01) | |||||||||||||||
Diluted | $ | 0.77 | $ | 0.35 | $ | 0.98 | $ | (0.01) | |||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||
Basic | 104,770 | 108,667 | 105,651 | 108,428 | |||||||||||||||||||
Diluted | 106,018 | 108,933 | 106,552 | 108,428 |
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income (loss) | $ | 81,427 | $ | 37,911 | $ | 104,563 | $ | (1,107) | |||||||||||||||
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||||||||||||||||||||||
Depreciation | 7,804 | 5,631 | 14,999 | 18,722 | |||||||||||||||||||
Amortization | 23,711 | 24,832 | 71,711 | 74,716 | |||||||||||||||||||
Amortization of operating lease right-of-use assets | 2,338 | 2,699 | 7,337 | 9,190 | |||||||||||||||||||
Amortization of deferred debt issuance costs | 659 | 923 | 2,257 | 3,415 | |||||||||||||||||||
Deferred income taxes | (3,745) | (2,566) | (2,229) | (25,207) | |||||||||||||||||||
Stock-based compensation expense | 11,346 | 6,822 | 30,165 | 17,537 | |||||||||||||||||||
Other | 2,247 | 1,857 | 180 | 2,168 | |||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||
Receivables | (95,899) | (39,844) | 3,699 | 42,012 | |||||||||||||||||||
Accounts payable | (4,091) | (5,244) | 758 | (7,198) | |||||||||||||||||||
Accrued employee compensation | 8,759 | 1,749 | (11,125) | (2,879) | |||||||||||||||||||
Deferred revenue | (6,433) | (8,296) | 1,884 | 4,404 | |||||||||||||||||||
Other current and noncurrent assets and liabilities | 25,885 | (1,208) | 8,067 | (52,999) | |||||||||||||||||||
Net cash flows from operating activities | 54,008 | 25,266 | 232,266 | 82,774 | |||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Purchases of property and equipment | (3,509) | (3,380) | (8,463) | (7,956) | |||||||||||||||||||
Purchases of software and distribution rights | (4,154) | (7,550) | (23,178) | (22,571) | |||||||||||||||||||
Net cash flows from investing activities | (7,663) | (10,930) | (31,641) | (30,527) | |||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from issuance of common stock | 732 | 696 | 2,129 | 2,122 | |||||||||||||||||||
Proceeds from exercises of stock options | 1,202 | 263 | 1,954 | 3,132 | |||||||||||||||||||
Repurchase of stock-based compensation awards for tax withholdings | (2,960) | (883) | (9,299) | (4,203) | |||||||||||||||||||
Repurchases of common stock | (7,996) | — | (127,670) | — | |||||||||||||||||||
Proceeds from revolving credit facility | 20,000 | 20,000 | 184,000 | 75,000 | |||||||||||||||||||
Repayment of revolving credit facility | (25,000) | (6,000) | (177,000) | (51,000) | |||||||||||||||||||
Proceeds from term portion of credit agreement | — | — | 500,000 | — | |||||||||||||||||||
Repayment of term portion of credit agreement | (9,375) | (19,475) | (547,823) | (53,556) | |||||||||||||||||||
Payments on or proceeds from other debt, net | (630) | (643) | (9,299) | (12,473) | |||||||||||||||||||
Payments for debt issuance costs | — | — | (5,141) | (2,160) | |||||||||||||||||||
Net increase (decrease) in settlement assets and liabilities | 23,855 | 19,452 | 17,704 | (4,635) | |||||||||||||||||||
Net cash flows from financing activities | (172) | 13,410 | (170,445) | (47,773) | |||||||||||||||||||
Effect of exchange rate fluctuations on cash | (1,621) | (1,039) | (331) | 4,388 | |||||||||||||||||||
Net increase in cash and cash equivalents | 44,552 | 26,707 | 29,849 | 8,862 | |||||||||||||||||||
Cash and cash equivalents, including settlement deposits, beginning of period | 224,118 | 196,827 | 238,821 | 214,672 | |||||||||||||||||||
Cash and cash equivalents, including settlement deposits, end of period | $ | 268,670 | $ | 223,534 | $ | 268,670 | $ | 223,534 | |||||||||||||||
Reconciliation of cash and cash equivalents to the Consolidated Balance Sheets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 177,860 | $ | 139,520 | $ | 177,860 | $ | 139,520 | |||||||||||||||
Settlement deposits | 90,810 | 84,014 | 90,810 | 84,014 | |||||||||||||||||||
Total cash and cash equivalents | $ | 268,670 | $ | 223,534 | $ | 268,670 | $ | 223,534 |
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||||||||
Adjusted EBITDA (millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Net income (loss) | $ | 81.4 | $ | 37.9 | $ | 104.6 | $ | (1.1) | |||||||||||||||
Plus: | |||||||||||||||||||||||
Income tax expense (benefit) | 25.9 | 8.7 | 35.6 | (5.4) | |||||||||||||||||||
Net interest expense | 14.5 | 16.4 | 44.0 | 48.2 | |||||||||||||||||||
Net other (income) expense | 0.8 | (1.1) | 1.7 | 6.4 | |||||||||||||||||||
Depreciation expense | 7.8 | 5.6 | 15.0 | 18.7 | |||||||||||||||||||
Amortization expense | 23.7 | 24.8 | 71.7 | 74.7 | |||||||||||||||||||
Non-cash stock-based compensation expense | 11.3 | 6.8 | 30.2 | 17.5 | |||||||||||||||||||
Adjusted EBITDA before significant transaction-related expenses | $ | 165.4 | $ | 99.1 | $ | 302.8 | $ | 159.0 | |||||||||||||||
Significant transaction-related expenses: | |||||||||||||||||||||||
Cost reduction strategies | 1.2 | 3.8 | 4.3 | 19.7 | |||||||||||||||||||
European datacenter migration | — | 0.4 | — | 2.6 | |||||||||||||||||||
Other | 0.3 | 0.1 | 1.0 | 4.4 | |||||||||||||||||||
Adjusted EBITDA | $ | 166.9 | $ | 103.4 | $ | 308.1 | $ | 185.7 | |||||||||||||||
Revenue, net of interchange: | |||||||||||||||||||||||
Revenue | $ | 451.8 | $ | 363.0 | $ | 1,141.3 | $ | 976.0 | |||||||||||||||
Interchange | 117.1 | 102.7 | 353.6 | 315.0 | |||||||||||||||||||
Revenue, net of interchange | $ | 334.7 | $ | 260.3 | $ | 787.7 | $ | 661.0 | |||||||||||||||
Net Adjusted EBITDA Margin | 50 | % | 40 | % | 39 | % | 28 | % |
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||||||||
Segment Information (millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Revenue | |||||||||||||||||||||||
Banks | $ | 222.0 | $ | 155.7 | $ | 471.1 | $ | 361.2 | |||||||||||||||
Merchants | 50.2 | 36.3 | 123.9 | 107.6 | |||||||||||||||||||
Billers | 179.6 | 171.0 | 546.3 | 507.2 | |||||||||||||||||||
Total | $ | 451.8 | $ | 363.0 | $ | 1,141.3 | $ | 976.0 | |||||||||||||||
Recurring Revenue | |||||||||||||||||||||||
Banks | $ | 55.6 | $ | 58.2 | $ | 167.1 | $ | 171.2 | |||||||||||||||
Merchants | 35.7 | 34.1 | 105.1 | 101.0 | |||||||||||||||||||
Billers | 179.6 | 171.0 | 546.3 | 507.2 | |||||||||||||||||||
Total | $ | 270.9 | $ | 263.3 | $ | 818.5 | $ | 779.4 | |||||||||||||||
Segment Adjusted EBITDA | |||||||||||||||||||||||
Banks | $ | 153.9 | $ | 91.0 | $ | 274.8 | $ | 167.3 | |||||||||||||||
Merchants | 26.7 | 10.3 | 52.7 | 26.8 | |||||||||||||||||||
Billers | 30.9 | 39.2 | 99.1 | 100.1 | |||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
EPS Impact of Non-cash and Significant Transaction-related Items (millions) | EPS Impact | $ in Millions (Net of Tax) |
EPS Impact | $ in Millions (Net of Tax) |
|||||||||||||||||||
GAAP net income | $ | 0.77 | $ | 81.4 | $ | 0.35 | $ | 37.9 | |||||||||||||||
Adjusted for: | |||||||||||||||||||||||
Significant transaction-related expenses | 0.04 | 4.5 | 0.03 | 3.3 | |||||||||||||||||||
Amortization of acquisition-related intangibles | 0.05 | 5.4 | 0.06 | 6.4 | |||||||||||||||||||
Amortization of acquisition-related software | 0.03 | 3.4 | 0.03 | 3.8 | |||||||||||||||||||
Non-cash stock-based compensation | 0.08 | 8.6 | 0.05 | 5.2 | |||||||||||||||||||
Total adjustments | $ | 0.20 | $ | 21.9 | $ | 0.17 | $ | 18.7 | |||||||||||||||
Diluted EPS adjusted for non-cash and significant transaction-related items | $ | 0.97 | $ | 103.3 | $ | 0.52 | $ | 56.6 | |||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
EPS Impact of Non-cash and Significant Transaction-related Items (millions) | EPS Impact | $ in Millions (Net of Tax) |
EPS Impact | $ in Millions (Net of Tax) |
|||||||||||||||||||
GAAP net income (loss) | $ | 0.98 | $ | 104.6 | $ | (0.01) | $ | (1.1) | |||||||||||||||
Adjusted for: | |||||||||||||||||||||||
Significant transaction-related expenses | 0.07 | 7.4 | 0.19 | 20.4 | |||||||||||||||||||
Amortization of acquisition-related intangibles | 0.17 | 18.1 | 0.18 | 19.3 | |||||||||||||||||||
Amortization of acquisition-related software | 0.09 | 10.1 | 0.11 | 12.0 | |||||||||||||||||||
Non-cash stock-based compensation | 0.21 | 22.9 | 0.12 | 13.3 | |||||||||||||||||||
Total adjustments | $ | 0.54 | $ | 58.5 | $ | 0.60 | $ | 65.0 | |||||||||||||||
Diluted EPS adjusted for non-cash and significant transaction-related items | $ | 1.52 | $ | 163.1 | $ | 0.59 | $ | 63.9 | |||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||||||||
Recurring Revenue (millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
SaaS and PaaS fees | $ | 223.4 | $ | 211.4 | $ | 674.5 | $ | 626.0 | |||||||||||||||
Maintenance fees | 47.5 | 51.9 | 144.0 | 153.4 | |||||||||||||||||||
Recurring Revenue | $ | 270.9 | $ | 263.3 | $ | 818.5 | $ | 779.4 |
New Bookings (millions) | Three Months Ended September 30, |
TTM Ended September 30, | |||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Annual recurring revenue (ARR) bookings | $ | 11.1 | $ | 20.5 | $ | 59.3 | $ | 84.9 | |||||||||||||||
License and services bookings | 67.0 | 54.1 | 281.5 | 224.5 |