Delaware | 47-0772104 | |||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
6060 Coventry Drive | Elkhorn, | Nebraska | 68022 |
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(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 February 27, 2025 | |||||
Investor presentation materials dated February 27, 2025 | |||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
ACI WORLDWIDE, INC.
(Registrant)
|
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Date: February 27, 2025 | By: |
/s/ SCOTT W. BEHRENS | ||||||
Scott W. Behrens | ||||||||
Executive Vice President, Chief Financial Officer and Chief Accounting Officer (Principal Financial Officer) |
December 31, | |||||||||||
2024 | 2023 | ||||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 216,394 | $ | 164,239 | |||||||
Receivables, net of allowances | 414,399 | 452,337 | |||||||||
Settlement assets | 318,871 | 723,039 | |||||||||
Prepaid expenses | 29,218 | 31,479 | |||||||||
Other current assets | 11,940 | 35,551 | |||||||||
Total current assets | 990,822 | 1,406,645 | |||||||||
Noncurrent assets | |||||||||||
Accrued receivables, net | 360,079 | 313,983 | |||||||||
Property and equipment, net | 35,069 | 37,856 | |||||||||
Operating lease right-of-use assets | 28,864 | 34,338 | |||||||||
Software, net | 92,893 | 108,418 | |||||||||
Goodwill | 1,226,026 | 1,226,026 | |||||||||
Intangible assets, net | 165,377 | 195,646 | |||||||||
Deferred income taxes, net | 72,713 | 58,499 | |||||||||
Other noncurrent assets | 53,450 | 63,328 | |||||||||
TOTAL ASSETS | $ | 3,025,293 | $ | 3,444,739 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 45,422 | $ | 45,964 | |||||||
Settlement liabilities | 317,484 | 721,164 | |||||||||
Employee compensation | 55,567 | 53,892 | |||||||||
Current portion of long-term debt | 34,928 | 74,405 | |||||||||
Deferred revenue | 75,419 | 59,580 | |||||||||
Other current liabilities | 73,808 | 82,244 | |||||||||
Total current liabilities | 602,628 | 1,037,249 | |||||||||
Noncurrent liabilities | |||||||||||
Deferred revenue | 19,304 | 24,780 | |||||||||
Long-term debt | 889,649 | 963,599 | |||||||||
Deferred income taxes, net | 39,920 | 40,735 | |||||||||
Operating lease liabilities | 22,592 | 29,074 | |||||||||
Other noncurrent liabilities | 26,873 | 25,005 | |||||||||
Total liabilities | 1,600,966 | 2,120,442 | |||||||||
Stockholders’ equity | |||||||||||
Preferred stock | — | — | |||||||||
Common stock | 702 | 702 | |||||||||
Additional paid-in capital | 731,927 | 712,994 | |||||||||
Retained earnings | 1,598,085 | 1,394,967 | |||||||||
Treasury stock | (784,914) | (674,896) | |||||||||
Accumulated other comprehensive loss | (121,473) | (109,470) | |||||||||
Total stockholders’ equity | 1,424,327 | 1,324,297 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 3,025,293 | $ | 3,444,739 |
Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Software as a service and platform as a service | $ | 223,481 | $ | 223,172 | $ | 897,979 | $ | 849,147 | |||||||||||||||
License | 159,322 | 178,543 | 412,306 | 321,224 | |||||||||||||||||||
Maintenance | 46,717 | 51,632 | 190,763 | 205,068 | |||||||||||||||||||
Services | 23,518 | 23,216 | 93,240 | 77,140 | |||||||||||||||||||
Total revenues | 453,038 | 476,563 | 1,594,288 | 1,452,579 | |||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Cost of revenue (1) | 200,087 | 181,689 | 791,783 | 719,211 | |||||||||||||||||||
Research and development | 38,614 | 34,636 | 146,677 | 140,758 | |||||||||||||||||||
Selling and marketing | 34,360 | 34,473 | 118,352 | 132,639 | |||||||||||||||||||
General and administrative | 33,437 | 24,515 | 118,379 | 117,190 | |||||||||||||||||||
Depreciation and amortization | 24,252 | 28,934 | 110,962 | 122,373 | |||||||||||||||||||
Total operating expenses | 330,750 | 304,247 | 1,286,153 | 1,232,171 | |||||||||||||||||||
Operating income | 122,288 | 172,316 | 308,135 | 220,408 | |||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Interest expense | (16,634) | (19,845) | (72,471) | (78,486) | |||||||||||||||||||
Interest income | 4,093 | 3,757 | 15,926 | 14,215 | |||||||||||||||||||
Other, net | 511 | (2,107) | (1,181) | (8,510) | |||||||||||||||||||
Total other income (expense) | (12,030) | (18,195) | (57,726) | (72,781) | |||||||||||||||||||
Income before income taxes | 110,258 | 154,121 | 250,409 | 147,627 | |||||||||||||||||||
Income tax expense | 11,703 | 31,505 | 47,291 | 26,118 | |||||||||||||||||||
Net income | $ | 98,555 | $ | 122,616 | $ | 203,118 | $ | 121,509 | |||||||||||||||
Income per common share | |||||||||||||||||||||||
Basic | $ | 0.94 | $ | 1.13 | $ | 1.93 | $ | 1.12 | |||||||||||||||
Diluted | $ | 0.93 | $ | 1.12 | $ | 1.91 | $ | 1.12 | |||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||
Basic | 105,104 | 108,703 | 105,491 | 108,497 | |||||||||||||||||||
Diluted | 106,318 | 109,147 | 106,493 | 108,857 |
Three Months Ended December 31, | Years Ended December 31, |
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2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $ | 98,555 | $ | 122,616 | $ | 203,118 | $ | 121,509 | |||||||||||||||
Adjustments to reconcile net income to net cash flows from operating activities: | |||||||||||||||||||||||
Depreciation | 3,162 | 5,017 | 18,161 | 23,739 | |||||||||||||||||||
Amortization | 21,090 | 23,918 | 92,801 | 98,634 | |||||||||||||||||||
Amortization of operating lease right-of-use assets | 2,369 | 2,430 | 9,706 | 11,620 | |||||||||||||||||||
Amortization of deferred debt issuance costs | 655 | 908 | 2,912 | 4,323 | |||||||||||||||||||
Deferred income taxes | (10,901) | 21,122 | (13,130) | (4,085) | |||||||||||||||||||
Stock-based compensation expense | 11,116 | 7,010 | 41,281 | 24,547 | |||||||||||||||||||
Other | 1,740 | (247) | 1,920 | 1,921 | |||||||||||||||||||
Changes in operating assets and liabilities, net of impact of divestiture: | |||||||||||||||||||||||
Receivables | (27,282) | (105,010) | (23,583) | (62,998) | |||||||||||||||||||
Accounts payable | (1,026) | 3,423 | (268) | (3,775) | |||||||||||||||||||
Accrued employee compensation | 14,012 | 11,025 | 2,887 | 8,146 | |||||||||||||||||||
Deferred revenue | 10,002 | (1,699) | 11,886 | 2,705 | |||||||||||||||||||
Other current and noncurrent assets and liabilities | 2,990 | (4,770) | 11,057 | (57,769) | |||||||||||||||||||
Net cash flows from operating activities | 126,482 | 85,743 | 358,748 | 168,517 | |||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Purchases of property and equipment | (6,939) | (968) | (15,402) | (8,924) | |||||||||||||||||||
Purchases of software and distribution rights | (6,471) | (6,282) | (29,649) | (28,853) | |||||||||||||||||||
Net cash flows from investing activities | (13,410) | (7,250) | (45,051) | (37,777) | |||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from issuance of common stock | 789 | 697 | 2,918 | 2,819 | |||||||||||||||||||
Proceeds from exercises of stock options | 4,375 | 3,594 | 6,329 | 6,726 | |||||||||||||||||||
Repurchase of stock-based compensation awards for tax withholdings | (3,812) | (946) | (13,111) | (5,149) | |||||||||||||||||||
Repurchases of common stock | — | (27,587) | (127,670) | (27,587) | |||||||||||||||||||
Proceeds from revolving credit facility | — | 59,000 | 184,000 | 134,000 | |||||||||||||||||||
Repayment of revolving credit facility | (61,000) | (64,000) | (238,000) | (115,000) | |||||||||||||||||||
Proceeds from term portion of credit agreement | — | — | 500,000 | — | |||||||||||||||||||
Repayment of term portion of credit agreement | (9,375) | (19,475) | (557,198) | (73,031) | |||||||||||||||||||
Payments on or proceeds from other debt, net | (5,555) | (4,293) | (14,854) | (16,766) | |||||||||||||||||||
Payments for debt issuance costs | — | — | (5,141) | (2,160) | |||||||||||||||||||
Net decrease in settlement assets and liabilities | (43,174) | (10,769) | (25,470) | (15,404) | |||||||||||||||||||
Net cash flows from financing activities | (117,752) | (63,779) | (288,197) | (111,552) | |||||||||||||||||||
Effect of exchange rate fluctuations on cash | 1,028 | 573 | 697 | 4,961 | |||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | (3,652) | 15,287 | 26,197 | 24,149 | |||||||||||||||||||
Cash and cash equivalents, including settlement deposits, beginning of period | 268,670 | 223,534 | 238,821 | 214,672 | |||||||||||||||||||
Cash and cash equivalents, including settlement deposits, end of period | $ | 265,018 | $ | 238,821 | $ | 265,018 | $ | 238,821 | |||||||||||||||
Reconciliation of cash and cash equivalents to the Consolidated Balance Sheets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 216,394 | $ | 164,239 | $ | 216,394 | $ | 164,239 | |||||||||||||||
Settlement deposits | 48,624 | 74,582 | 48,624 | 74,582 | |||||||||||||||||||
Total cash and cash equivalents | $ | 265,018 | $ | 238,821 | $ | 265,018 | $ | 238,821 |
Adjusted EBITDA (millions) | Three Months Ended December 31, | Years Ended December 31, |
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2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Net income | $ | 98.6 | $ | 122.6 | $ | 203.1 | $ | 121.5 | |||||||||||||||
Plus: | |||||||||||||||||||||||
Income tax expense | 11.7 | 31.5 | 47.3 | 26.1 | |||||||||||||||||||
Net interest expense | 12.5 | 16.1 | 56.5 | 64.3 | |||||||||||||||||||
Net other (income) expense | (0.5) | 2.1 | 1.2 | 8.5 | |||||||||||||||||||
Depreciation expense | 3.2 | 5.0 | 18.2 | 23.7 | |||||||||||||||||||
Amortization expense | 21.1 | 23.9 | 92.8 | 98.6 | |||||||||||||||||||
Non-cash stock-based compensation expense | 11.1 | 7.0 | 41.3 | 24.5 | |||||||||||||||||||
Adjusted EBITDA before significant transaction-related expenses | $ | 157.7 | $ | 208.2 | $ | 460.4 | $ | 367.2 | |||||||||||||||
Significant transaction-related expenses: | |||||||||||||||||||||||
Cost reduction strategies | — | 1.3 | 4.3 | 21.0 | |||||||||||||||||||
European datacenter migration | — | 0.2 | — | 2.8 | |||||||||||||||||||
Other | — | — | 1.0 | 4.4 | |||||||||||||||||||
Adjusted EBITDA | $ | 157.7 | $ | 209.7 | $ | 465.7 | $ | 395.4 | |||||||||||||||
Revenue, net of interchange: | |||||||||||||||||||||||
Revenue | $ | 453.0 | $ | 476.6 | $ | 1,594.3 | $ | 1,452.6 | |||||||||||||||
Interchange | 115.7 | 106.1 | 469.4 | 421.1 | |||||||||||||||||||
Revenue, net of interchange | $ | 337.3 | $ | 370.5 | $ | 1,124.9 | $ | 1,031.5 | |||||||||||||||
Net adjusted EBITDA Margin | 47 | % | 57 | % | 41 | % | 38 | % |
Segment Information (millions) | Three Months Ended December 31, | Years Ended December 31, |
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2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Banks | $ | 230.8 | $ | 254.9 | $ | 701.9 | $ | 616.1 | |||||||||||||||
Merchants | 42.0 | 43.0 | 165.9 | 150.6 | |||||||||||||||||||
Billers | 180.2 | 178.7 | 726.5 | 685.9 | |||||||||||||||||||
Total | $ | 453.0 | $ | 476.6 | $ | 1,594.3 | $ | 1,452.6 | |||||||||||||||
Recurring revenue | |||||||||||||||||||||||
Banks | $ | 54.7 | $ | 58.2 | $ | 221.8 | $ | 229.4 | |||||||||||||||
Merchants | 35.3 | 37.9 | 140.4 | 138.9 | |||||||||||||||||||
Billers | 180.2 | 178.7 | 726.5 | 685.9 | |||||||||||||||||||
Total | $ | 270.2 | $ | 274.8 | $ | 1,088.7 | $ | 1,054.2 | |||||||||||||||
Segment adjusted EBITDA | |||||||||||||||||||||||
Banks | $ | 150.7 | $ | 188.2 | $ | 425.5 | $ | 355.5 | |||||||||||||||
Merchants | 16.8 | 17.5 | 69.5 | 44.3 | |||||||||||||||||||
Billers | 32.1 | 42.2 | 131.2 | 142.3 |
EPS Impact of Non-cash and Significant Transaction-related Items (millions) | Three Months Ended December 31, | ||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
EPS Impact | $ in Millions (Net of Tax) |
EPS Impact | $ in Millions (Net of Tax) |
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GAAP net income | $ | 0.93 | $ | 98.6 | $ | 1.12 | $ | 122.6 | |||||||||||||||
Adjusted for: | |||||||||||||||||||||||
Significant transaction-related expenses | — | — | 0.01 | 1.1 | |||||||||||||||||||
Amortization of acquisition-related intangibles | 0.04 | 4.5 | 0.06 | 6.4 | |||||||||||||||||||
Amortization of acquisition-related software | 0.03 | 3.3 | 0.03 | 3.5 | |||||||||||||||||||
Non-cash stock-based compensation | 0.08 | 8.8 | 0.05 | 5.3 | |||||||||||||||||||
Total adjustments | $ | 0.15 | $ | 16.6 | $ | 0.15 | $ | 16.3 | |||||||||||||||
Diluted EPS adjusted for non-cash and significant transaction-related items | $ | 1.08 | $ | 115.2 | $ | 1.27 | $ | 138.9 |
EPS Impact of Non-cash and Significant Transaction-related Items (millions) | Years Ended Years Ended December 31, | ||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
EPS Impact | $ in Millions (Net of Tax) |
EPS Impact | $ in Millions (Net of Tax) |
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GAAP net income | $ | 1.91 | $ | 203.1 | $ | 1.12 | $ | 121.5 | |||||||||||||||
Adjusted for: | |||||||||||||||||||||||
Significant transaction-related expenses | 0.07 | 7.4 | 0.19 | 21.1 | |||||||||||||||||||
Amortization of acquisition-related intangibles | 0.22 | 23.3 | 0.24 | 25.7 | |||||||||||||||||||
Amortization of acquisition-related software | 0.13 | 13.8 | 0.14 | 15.5 | |||||||||||||||||||
Non-cash stock-based compensation | 0.31 | 32.6 | 0.17 | 18.7 | |||||||||||||||||||
Total adjustments | $ | 0.73 | $ | 77.1 | $ | 0.74 | $ | 81.0 | |||||||||||||||
Diluted EPS adjusted for non-cash and significant transaction-related items | $ | 2.64 | $ | 280.2 | $ | 1.86 | $ | 202.5 |
Recurring Revenue (millions) | Three Months Ended December 31, | Years Ended December 31, |
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2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
SaaS and PaaS fees | $ | 223.5 | $ | 223.2 | $ | 898.0 | $ | 849.1 | |||||||||||||||
Maintenance fees | 46.7 | 51.6 | 190.8 | 205.1 | |||||||||||||||||||
Recurring revenue | $ | 270.2 | $ | 274.8 | $ | 1,088.7 | $ | 1,054.2 |
New Bookings (millions) | Three Months Ended December 31, | Years Ended December 31, |
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2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Annual recurring revenue (ARR) bookings | $ | 35.2 | $ | 28.8 | $ | 65.7 | $ | 73.5 | |||||||||||||||
License and services bookings | 115.1 | 106.5 | 290.0 | 239.2 |