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0000935036false00009350362024-11-072024-11-070000935036exch:XNGS2024-11-072024-11-07

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________
FORM 8-K
___________________________
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 7, 2024

Commission File Number 0-25346

ACI WORLDWIDE, INC.
(Exact name of registrant as specified in its charter)
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)
(402) 390-7600
(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
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

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02. Results of Operation and Financial Condition.
On November 7, 2024, the Company issued a press release announcing its financial results for the three months ended September 30, 2024. A copy of this press release is attached hereto as Exhibit 99.1.

The foregoing information (including the exhibits hereto) is being furnished under “Item 2.02 – Results of Operations and Financial Condition” and “Item 7.01 – Regulation FD Disclosure.” Such information (including the exhibits hereto) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

The filing of this report and the furnishing of this information pursuant to Items 2.02 and 7.01 do not mean that such information is material or that disclosure of such information is required.

Item 7.01. Regulation FD Disclosure.
See “Item 2.02 – Results of Operation and Financial Condition” above.

Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
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)




SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. 
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)


EX-99.1 2 aciw-20241107_exx991.htm EX-99.1 Document
Exhibit 99.1
aciw-logo.jpg



ACI Worldwide, Inc. Reports Financial Results for the
Quarter Ended September 30, 2024


Q3 2024 HIGHLIGHTS
•Revenue up 24% versus Q3 2023
•Net income up 115% versus Q3 2023
•Adjusted EBITDA up 61% versus Q3 2023
•Cash flow from operating activities up 114% versus Q3 2023
•Raising guidance range for full-year 2024

OMAHA, Neb. — November 7, 2024 — ACI Worldwide (NASDAQ: ACIW), an original innovator in global payments technology, announced financial results today for the quarter ended September 30, 2024.

“We are very pleased with our third quarter results and the continued positive momentum in the business. We saw particular strength within our Bank and Merchant segments and are once again raising our full-year outlook,” said Thomas Warsop, president and CEO of ACI Worldwide. “This year the team has done a tremendous job signing renewal contracts earlier in the year. This initiative is enabling our commercial team to spend more time on prospects and winning new business, which has allowed us to outperform our forecasts. Further, signing these new contracts earlier in the year helps reduce the heavy seasonality we have historically seen and simply reduces the risk of attaining our full-year financial guidance.

“Our pipelines remain strong across our segments, and we are well-positioned for future growth as we continue to invest in innovation, execute on our strategy, and deliver value to our customers and shareholders.”

“Our cash flow from operating activities increased 114% over Q3 last year and we exited the quarter with net debt leverage ratio of 1.6x adjusted EBITDA, with approximately $650 million in liquidity,” said Scott Behrens, chief financial officer of ACI Worldwide. “Our strong cash flow growth and our lowest leverage in over a decade, combined with our improved outlook for 2024 and our expectations for continued strength in 2025, enable us to reduce our long-term stated leverage target from 2.5x to 2.0x. We will continue to maintain a disciplined, long-term focused capital allocation strategy that balances re-investment in the business, accretive M&A and share repurchases, while maintaining a strong balance sheet with ample liquidity and financial flexibility.”




FINANCIAL SUMMARY
In Q3 2024, revenue was $452 million, up 24% from Q3 2023. Net income was $81 million, up 115% from $38 million in Q3 2023. Adjusted EBITDA in Q3 2024 was $167 million, up 61% from Q3 2023. Cash flow from operating activities in Q3 2024 was $54 million, up 114% from $25 million in Q3 2023.
•Bank segment revenue increased 43% in Q3 2024 and Bank segment adjusted EBITDA increased 69% versus Q3 2023.
•Merchant segment revenue increased 38% in Q3 2024 and Merchant segment adjusted EBITDA increased 159% versus Q3 2023.
•Biller segment revenue increased 5% in Q3 2024 and Biller segment adjusted EBITDA decreased 21%. Q3 2023 included certain one-time non-recurring margin benefits that did not recur in Q3 2024.

ACI ended Q3 2024 with $178 million in cash on hand and a debt balance of $1 billion, which represents a net debt leverage ratio of 1.6x adjusted EBITDA.

During the quarter the company repurchased approximately 200,000 shares for $8 million in capital and year-to-date 2024 has repurchased approximately 4 million shares for $128 million in capital. At the end of the quarter, the company had $372 million remaining available on the share repurchase authorization.
RAISING 2024 GUIDANCE
For the full year of 2024, we are raising our guidance for both revenue and adjusted EBITDA. We now expect revenue to be in the range of $1.567 billion to $1.601 billion, up from the range of $1.557 billion to $1.591 billion. We now expect adjusted EBITDA to be in the range of $433 million to $448 million, up from the range of $423 million to $438 million.








CONFERENCE CALL TO DISCUSS FINANCIAL RESULTS
Today, management will host a conference call at 8:30 a.m. ET to discuss these results. Interested persons may access a real-time audio broadcast of the teleconference at http://investor.aciworldwide.com/ or use the following number for dial-in participation: toll-free 1 (888) 660-6377 and conference code 3153574.
About ACI Worldwide
ACI Worldwide, an original innovator in global payments technology, delivers transformative software solutions that power intelligent payments orchestration in real time so banks, billers, and merchants can drive growth, while continuously modernizing their payment infrastructures, simply and securely. With nearly 50 years of trusted payments expertise, we combine our global footprint with a local presence to offer enhanced payment experiences to stay ahead of constantly changing payment challenges and opportunities.
© Copyright ACI Worldwide, Inc. 2024.
ACI, ACI Worldwide, ACI Payments, Inc., ACI Pay, Speedpay and all ACI product/solution names are trademarks or registered trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in the United States, other countries or both. Other parties' trademarks referenced are the property of their respective owners.
For more information contact:

Investor Relations
John Kraft
239-403-4627 / john.kraft@aciworldwide.com




SVP, Head of Strategy and Finance To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude significant transaction-related expenses, as well as other significant non-cash expenses such as depreciation, amortization, and stock-based compensation, that we believe are helpful in understanding our past financial performance and our future results. The presentation of these non-GAAP financial measures should be considered in addition to our GAAP results and are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management generally compensates for limitations in the use of non-GAAP financial measures by relying on comparable GAAP financial measures and providing investors with a reconciliation of non-GAAP financial measures only in addition to and in conjunction with results presented in accordance with GAAP.

We believe that these non-GAAP financial measures reflect an additional way to view aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. Certain non-GAAP measures include:

•Adjusted EBITDA: net income (loss) plus income tax expense (benefit), net interest income (expense), net other income (expense), depreciation, amortization and stock-based compensation, as well as significant transaction-related expenses. Adjusted EBITDA should be considered in addition to, rather than as a substitute for, net income (loss).

•Net Adjusted EBITDA Margin: Adjusted EBITDA divided by revenue net of pass-through interchange revenue. Net Adjusted EBITDA Margin should be considered in addition to, rather than as a substitute for, net income (loss).

•Diluted EPS adjusted for non-cash and significant transaction related items: diluted EPS plus tax effected significant transaction related items, amortization of acquired intangibles and software, and non-cash stock-based compensation. Diluted EPS adjusted for non-cash and significant transaction related items should be considered in addition to, rather than as a substitute for, diluted EPS.

•Recurring Revenue: revenue from software as a service and platform as a service fees and maintenance fees. Recurring revenue should be considered in addition to, rather than as a substitute for, total revenue.

•ARR: New annual recurring revenue expected to be generated from new accounts, new applications, and add-on sales bookings contracts signed in the period.




FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. Generally, forward-looking statements do not relate strictly to historical or current facts and may include words or phrases such as “believes,” “will,” “expects,” “anticipates,” “intends,” and words and phrases of similar impact. The forward-looking statements are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements in this press release include, but are not limited to: (i) the continued positive momentum in the business, (ii) our pipelines remain strong across our segments, and we are well-positioned for future growth as we continue to invest in innovation, execute on our strategy, and deliver value to our customers and shareholders, (iii) we will continue to maintain a disciplined, long-term focused capital allocation strategy that balances re-investment in the business, accretive M&A and share repurchases, while maintaining a strong balance sheet with ample liquidity and financial flexibility, and (iv) target leverage and full-year 2024 revenue and adjusted EBITDA financial guidance.
All of the foregoing forward-looking statements are expressly qualified by the risk factors discussed in our filings with the Securities and Exchange Commission. Such factors include, but are not limited to, increased competition, business interruptions or failure of our information technology and communication systems, security breaches or viruses, our ability to attract and retain senior management personnel and skilled technical employees, future acquisitions, strategic partnerships and investments, divestitures and other restructuring activities, implementation and success of our strategy, impact if we convert some or all on-premise licenses from fixed-term to subscription model, anti-takeover provisions, exposure to credit or operating risks arising from certain payment funding methods, customer reluctance to switch to a new vendor, our ability to adequately defend our intellectual property, litigation, consent orders and other compliance agreements, our offshore software development activities, risks from operating internationally, including fluctuations in currency exchange rates, events in eastern Europe and the Middle East, adverse changes in the global economy, compliance of our products with applicable legislation, governmental regulations and industry standards, the complexity of our products and services and the risk that they may contain hidden defects, complex regulations applicable to our payments business, our compliance with privacy and cybersecurity regulations, exposure to unknown tax liabilities, changes in tax laws and regulations, consolidations and failures in the financial services industry, volatility in our stock price, demand for our products, failure to obtain renewals of customer contracts or to obtain such renewals on favorable terms, delay or cancellation of customer projects or inaccurate project completion estimates, impairment of our goodwill or intangible assets, the accuracy of management’s backlog estimates, the cyclical nature of our revenue and earnings and the accuracy of forecasts due to the concentration of revenue-generating activity during the final weeks of each quarter, restrictions and other financial covenants in our debt agreements, our existing levels of debt, events outside of our control including natural disasters, wars, and outbreaks of disease, and revenues or revenue mix. For a detailed discussion of these risk factors, parties that are relying on the forward-looking statements should review our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q.




ACI WORLDWIDE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited and in thousands)
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 





ACI WORLDWIDE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands, except per share amounts)
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 
(1) The cost of revenue excludes charges for depreciation and amortization.



ACI WORLDWIDE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited and in thousands)
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 

Note: Amounts may not recalculate due to rounding.



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 

Note: Amounts may not recalculate due to rounding.

EX-99.2 3 aciw-20241107_ex992.htm EX-99.2 aciw-20241107_ex992
Q3 2024 Earnings Presentation November 7, 2024 Exhibit 99.2


 
This presentation contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. The forward-looking statements are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. A discussion of these forward-looking statements and risk factors that may affect them is set forth at the end of this presentation. The Company assumes no obligation to update any forward-looking statement in this presentation, except as required by law. Private Securities Litigation Reform Act of 1995 Safe Harbor for Forward-Looking Statements


 
Powering the world’s payments ecosystem ACI Worldwide, an original innovator in global payments technology, delivers transformative software solutions that power intelligent payments orchestration in real time so banks, billers, and merchants can drive growth, while continuously modernising their payment infrastructures, simply and securely. With nearly 50 years of trusted payments expertise, we combine our global footprint with a local presence to offer enhanced payment experiences to stay ahead of constantly changing payment challenges and opportunities.


 
Q3 2024 Highlights 4Confidential Balance Sheet* Segment ResultsConsolidated Results


 
Increasing Financial Guidance Range 5Confidential 2024 Guidance Range HighLow 2023 Actual 1,601 1,5671,453 Revenue 448 433 395 Adjusted EBITDA $'s in millions


 
Supplemental Financial Data 6Confidential Nine Months Ended September 30,Three Months Ended September 30, 2023202420232024Recurring Revenue (millions) $ 626.0$ 674.5$ 211.4$ 223.4SaaS and PaaS fees 153.4144.051.947.5Maintenance fees $ 779.4$ 818.5$ 263.3$ 270.9Recurring Revenue TTM Ended September 30,Three Months Ended September 30, 2023202420232024New Bookings (millions) $ 84.9$ 59.3$ 20.5$ 11.1Annual recurring revenue (ARR) bookings 224.5281.554.167.0License and services bookings Note: Amounts may not recalculate due to rounding.


 
Supplemental Financial Data 7Confidential Nine Months Ended September 30,Three Months Ended September 30, 2023202420232024Adjusted EBITDA (millions) $ (1.1)$ 104.6$ 37.9$ 81.4Net income (loss) Plus: (5.4)35.68.725.9Income tax expense (benefit) 48.244.016.414.5Net interest expense 6.41.7(1.1)0.8Net other (income) expense 18.715.05.67.8Depreciation expense 74.771.724.823.7Amortization expense 17.530.26.811.3Non-cash stock-based compensation expense $ 159.0$ 302.8$ 99.1$ 165.4Adjusted EBITDA before significant transaction-related expenses Significant transaction-related expenses: 19.74.33.81.2Cost reduction strategies 2.6—0.4—European datacenter migration 4.41.00.10.3Other $ 185.7$ 308.1$ 103.4$ 166.9Adjusted EBITDA Revenue, net of interchange $ 976.0$ 1,141.3$ 363.0$ 451.8Revenue 315.0353.6102.7117.1Interchange $ 661.0$ 787.7$ 260.3$ 334.7Revenue, net of interchange 28 %39 %40 %50 %Net Adjusted EBITDA Margin Note: Amounts may not recalculate due to rounding.


 
Supplemental Financial Data 8Confidential Nine Months Ended September 30,Three Months Ended September 30, 2023202420232024Segment Information (millions) Revenue $ 361.2$ 471.1$ 155.7$ 222.0Banks 107.6123.936.350.2Merchants 507.2546.3171.0179.6Billers $ 976.0$ 1,141.3$ 363.0$ 451.8Total Revenue Recurring Revenue $ 171.2$ 167.1$ 58.2$ 55.6Banks 101.0105.134.135.7Merchants 507.2546.3171.0179.6Billers $ 779.4$ 818.5$ 263.3$ 270.9Total Segment Adjusted EBITDA $ 167.3$ 274.8$ 91.0$ 153.9Banks $ 26.8$ 52.7$ 10.3$ 26.7Merchants $ 100.1$ 99.1$ 39.2$ 30.9Billers Note: Amounts may not recalculate due to rounding.


 
Supplemental Financial Data 9Confidential Three Months Ended September 30, EPS Impact of Non-cash and Significant Transaction-related Items (millions) 20232024 $ in Millions (Net of Tax)EPS Impact $ in Millions (Net of Tax)EPS Impact $ 37.9$ 0.35$ 81.4$ 0.77GAAP net income Adjusted for: 3.30.034.50.04Significant transaction-related expenses 6.40.065.40.05Amortization of acquisition-related intangibles 3.80.033.40.03Amortization of acquisition-related software 5.20.058.60.08Non-cash stock-based compensation 18.70.1721.90.20Total adjustments $ 56.6$ 0.52$ 103.3$ 0.97 Diluted EPS adjusted for non-cash and significant transaction- related items Nine Months Ended September 30, 20232024 $ in Millions (Net of Tax)EPS Impact $ in Millions (Net of Tax)EPS Impact $ (1.1)$ (0.01)$ 104.6$ 0.98GAAP net income (loss) Adjusted for: 20.40.197.40.07Significant transaction-related expenses 19.30.1818.10.17Amortization of acquisition-related intangibles 12.00.1110.10.09Amortization of acquisition-related software 13.30.1222.90.21Non-cash stock-based compensation 65.00.6058.50.54Total adjustments $ 63.9$ 0.59$ 163.1$ 1.52 Diluted EPS adjusted for non-cash and significant transaction- related items Note: Amounts may not recalculate due to rounding.


 
Non-GAAP Financial Measures 10Confidential To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude significant transaction related expenses, as well as other significant non-cash expenses such as depreciation, amortization, and stock-based compensation, that we believe are helpful in understanding our past financial performance and our future results. The presentation of these non-GAAP financial measures should be considered in addition to our GAAP results and are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management generally compensates for limitations in the use of non-GAAP financial measures by relying on comparable GAAP financial measures and providing investors with a reconciliation of non-GAAP financial measures only in addition to and in conjunction with results presented in accordance with GAAP. We believe that these non-GAAP financial measures reflect an additional way to view aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. Certain non-GAAP measures include: • Adjusted EBITDA: net income (loss) plus income tax expense (benefit), net interest income (expense), net other income (expense), depreciation, amortization, and non-cash compensation, as well as significant transaction related expenses. Adjusted EBITDA should be considered in addition to, rather than as a substitute for, net income (loss). • Net Adjusted EBITDA Margin: Adjusted EBITDA divided by revenue net of pass-through interchange revenue. Net Adjusted EBITDA Margin should be considered in addition to, rather than as a substitute for, net income (loss). • Diluted EPS adjusted for non-cash and significant transaction related items: diluted EPS plus tax effected significant transaction related items, amortization of acquired intangibles and software, and non-cash stock-based compensation. Diluted EPS adjusted for non-cash and significant transaction related items should be considered in addition to, rather than as a substitute for, diluted EPS. • Recurring Revenue: revenue from software as a service and platform service fees and maintenance fees. Recurring revenue should be considered in addition to, rather than as a substitute for, total revenue. • ARR: New annual recurring revenue expected to be generated from new accounts, new applications, and add-on sales bookings contracts signed in the period.


 
Forward Looking Statements 11Confidential This presentation contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. Generally, forward- looking statements do not relate strictly to historical or current facts and may include words or phrases such as “believes,” “will,” “expects,” “anticipates,” “intends,” and words and phrases of similar impact. The forward-looking statements are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include, but are not limited to, statements regarding financial guidance for full year 2024 revenue and adjusted EBITDA. All of the foregoing forward-looking statements are expressly qualified by the risk factors discussed in our filings with the Securities and Exchange Commission. Such factors include, but are not limited to, increased competition, business interruptions or failure of our information technology and communication systems, security breaches or viruses, our ability to attract and retain senior management personnel and skilled technical employees, future acquisitions, strategic partnerships and investments, divestitures and other restructuring activities, implementation and success of our strategy, impact if we convert some or all on- premise licenses from fixed-term to subscription model, anti-takeover provisions, exposure to credit or operating risks arising from certain payment funding methods, customer reluctance to switch to a new vendor, our ability to adequately defend our intellectual property, litigation, consent orders and other compliance agreements, our offshore software development activities, risks from operating internationally, including fluctuations in currency exchange rates, events in eastern Europe and the Middle East, adverse changes in the global economy, compliance of our products with applicable legislation, governmental regulations and industry standards, the complexity of our products and services and the risk that they may contain hidden defects, complex regulations applicable to our payments business, our compliance with privacy and cybersecurity regulations, exposure to unknown tax liabilities, changes in tax laws and regulations, consolidations and failures in the financial services industry, volatility in our stock price, demand for our products, failure to obtain renewals of customer contracts or to obtain such renewals on favorable terms, delay or cancellation of customer projects or inaccurate project completion estimates, impairment of our goodwill or intangible assets, the accuracy of management’s backlog estimates, the cyclical nature of our revenue and earnings and the accuracy of forecasts due to the concentration of revenue-generating activity during the final weeks of each quarter, restrictions and other financial covenants in our debt agreements, our existing levels of debt, events outside of our control including natural disasters, wars, and outbreaks of disease, and revenues or revenue mix. For a detailed discussion of these risk factors, parties that are relying on the forward-looking statements should review our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q.


 
12Confidential