Q4 2023 HIGHLIGHTS
- Total revenue of $477 million grew 5%1
- Total recurring revenue grew 7%1
- Net income of $123 million grew 36%
- Total EBITDA of $210 million grew 8%
- Cash flow from operating activities of $86 million grew
107%
- Repurchased 1 million shares for $28 million
- Expect 7-9% revenue growth in 2024
ACI Worldwide (NASDAQ: ACIW), a global leader in
mission-critical, real-time payments software, announced financial
results today for the quarter and full year ended December 31,
2023.
"2023 was another year of progress for ACI, with steady revenue
growth and improving margins,” said Thomas Warsop, president and
CEO of ACI Worldwide. “In the Bank segment, we saw particular
strength in our real-time payments and anti-fraud product lines,
and our Bank recurring revenue continues to accelerate, which
positions us very well for 2024 and beyond. Our Biller business is
also performing well as we benefit from new customer onboarding and
interchange improvement efforts put in place last year.”
“We are also pleased to welcome two new members to our
already-strong board of directors: Katrinka McCallum, who spent
many years at SaaS software company Red Hat; and Juan Benitez, the
former President of GoFundMe and GM of Braintree Payments,” Warsop
added. “Katrinka and Juan will provide great support as we expand
our SaaS businesses and use of artificial intelligence, things both
of them have overseen before. Looking forward, our pipeline is
strong, and we are focused and optimistic about our growth
acceleration.”
FINANCIAL SUMMARY
In Q4 2023, revenue was $477 million, up 5% from Q4 2022.
Recurring revenue of $275 million in Q4 was up 7% from Q4
20221. Net income was $123 million versus $90 million in Q4
2022. Adjusted EBITDA in Q4 2023 was $210 million, up 8% from Q4
2022. Cash flow from operating activities in Q4 2023 was $86
million, up 107% compared to Q4 2022.
- Bank segment revenue increased 3% in Q4 2023, while Bank
segment recurring revenue, consisting of maintenance and SaaS
revenue, grew 8%, and Bank segment adjusted EBITDA grew 1% versus
Q4 20221.
- Merchant segment revenue improved throughout the year, as
expected, growing 4% in Q4 20231. Merchant segment adjusted
EBITDA increased 2% versus Q4 20221.
- Biller segment revenue increased 9% in Q4 2023. Biller segment
adjusted EBITDA increased 60% versus Q4 2022, driven by new
customer onboarding and progress with our interchange improvement
program.
Full-year 2023 total revenue was $1.45 billion, up 5% from 2022
adjusted for FX and the divestiture1. Recurring revenue of
$1.1 billion in 2023 was up 8% from 20221. Net income was
$122 million in 2023. After adjusting for the gain on the
divestiture of our Corporate Online Banking business, this was a 7%
increase from 2022. Total adjusted EBITDA in 2023 was $395 million
compared to $373 million in 2022, up 10%1. Cash flow from
operating activities in 2023 was $169 million, up 18% compared to
2022.
ACI ended 2023 with $164 million in cash on hand and a debt
balance of $1 billion, which represents a net debt leverage ratio
of 2.2x, down from 2.4x last quarter. For 2023, the company
repurchased approximately 1 million shares for $28 million in
capital and repurchased an additional 2 million shares for $62
million in capital year-to-date in 2024. The company has $110
million remaining available on the share repurchase
authorization.
2024 GUIDANCE
For the full year of 2024, we expect revenue growth to be in the
7% to 9% range on a constant currency basis, or in the range of
$1.547 billion to $1.576 billion. We expect adjusted EBITDA to be
in the range of $418 million to $428 million with net adjusted
EBITDA margin expansion. For Q1 2024, we expect revenue to be
between $300 million and $310 million and adjusted EBITDA of $25
million to $30 million. This excludes one-time costs to implement
certain efficiency strategies.
1 Adjusted for foreign currency
fluctuations and the divestiture of Corporate Online Banking in
September 2022
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 (800) 715-9871 and conference
code 3153574.
About ACI Worldwide
ACI Worldwide is a global leader in mission-critical, real-time
payments software. Our proven, secure and scalable software
solutions enable leading corporations, fintechs, and financial
disruptors to process and manage digital payments, power
omni-commerce payments, present and process bill payments, and
manage fraud and risk. We combine our global footprint with a local
presence to drive the real-time digital transformation of payments
and commerce.
© 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:
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) our positioning for 2024 and beyond, (ii)
benefits from new customer onboarding and interchange improvement
efforts put in place last year, (iii) new board members providing
great support as we expand our SaaS businesses and use of
artificial intelligence, (iv) our pipeline strength and focus and
optimism about our growth acceleration, and (v) statements
regarding Q1 2024 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
CONSOLIDATED BALANCE
SHEETS
(unaudited and in
thousands)
December 31,
2023
2022
ASSETS
Current assets
Cash and cash equivalents
$
164,239
$
124,981
Receivables, net of allowances
452,337
403,781
Settlement assets
723,039
540,667
Prepaid expenses
31,479
28,010
Other current assets
35,551
17,366
Total current assets
1,406,645
1,114,805
Noncurrent assets
Accrued receivables, net
313,983
297,818
Property and equipment, net
37,856
52,499
Operating lease right-of-use assets
34,338
40,031
Software, net
108,418
129,109
Goodwill
1,226,026
1,226,026
Intangible assets, net
195,646
228,698
Deferred income taxes, net
58,499
53,738
Other noncurrent assets
63,328
67,171
TOTAL ASSETS
$
3,444,739
$
3,209,895
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities
Accounts payable
$
45,964
$
47,997
Settlement liabilities
721,164
539,087
Employee compensation
53,892
45,289
Current portion of long-term debt
74,405
65,521
Deferred revenue
59,580
58,303
Other current liabilities
82,244
102,645
Total current liabilities
1,037,249
858,842
Noncurrent liabilities
Deferred revenue
24,780
23,233
Long-term debt
963,599
1,024,351
Deferred income taxes, net
40,735
40,371
Operating lease liabilities
29,074
33,910
Other noncurrent liabilities
25,005
36,001
Total liabilities
2,120,442
2,016,708
Stockholders’ equity
Preferred stock
—
—
Common stock
702
702
Additional paid-in capital
712,994
702,458
Retained earnings
1,394,967
1,273,458
Treasury stock
(674,896
)
(665,771
)
Accumulated other comprehensive loss
(109,470
)
(117,660
)
Total stockholders’ equity
1,324,297
1,193,187
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
3,444,739
$
3,209,895
ACI WORLDWIDE, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS
(unaudited and in thousands,
except per share amounts)
Three Months Ended December
31,
Years Ended December
31,
2023
2022
2023
2022
Revenues
Software as a service and platform as a
service
$
223,172
$
205,800
$
849,147
$
802,880
License
178,543
179,874
321,224
348,134
Maintenance
51,632
48,902
205,068
200,045
Services
23,216
17,229
77,140
70,842
Total revenues
476,563
451,805
1,452,579
1,421,901
Operating expenses
Cost of revenue (1)
181,689
178,699
719,211
696,071
Research and development
34,636
31,963
140,758
146,311
Selling and marketing
34,473
32,019
132,639
134,812
General and administrative
24,515
29,441
117,190
114,194
Depreciation and amortization
28,934
31,460
122,373
126,678
Total operating expenses
304,247
303,582
1,232,171
1,218,066
Operating income
172,316
148,223
220,408
203,835
Other income (expense)
Interest expense
(19,845
)
(16,179
)
(78,486
)
(53,193
)
Interest income
3,757
3,342
14,215
12,547
Other, net
(2,107
)
(2,355
)
(8,510
)
43,446
Total other income (expense)
(18,195
)
(15,192
)
(72,781
)
2,800
Income before income taxes
154,121
133,031
147,627
206,635
Income tax expense
31,505
42,803
26,118
64,458
Net income
$
122,616
$
90,228
$
121,509
$
142,177
Income per common share
Basic
$
1.13
$
0.81
$
1.12
$
1.25
Diluted
$
1.12
$
0.81
$
1.12
$
1.24
Weighted average common shares
outstanding
Basic
108,703
111,077
108,497
113,700
Diluted
109,147
111,354
108,857
114,238
(1) The cost of revenue excludes charges
for depreciation but includes amortization of purchased and
developed software for resale.
ACI WORLDWIDE, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(unaudited and in
thousands)
Three Months Ended December
31,
Years Ended December
31,
2023
2022
2023
2022
Cash flows from operating activities:
Net income
$
122,616
$
90,228
$
121,509
$
142,177
Adjustments to reconcile net income to net
cash flows from operating activities:
Depreciation
5,017
6,129
23,739
23,181
Amortization
23,918
25,330
98,634
104,147
Amortization of operating lease
right-of-use assets
2,430
2,740
11,620
11,036
Amortization of deferred debt issuance
costs
908
1,126
4,323
4,561
Deferred income taxes
21,122
10,662
(4,085
)
1,603
Stock-based compensation expense
7,010
7,869
24,547
29,753
Gain on divestiture
—
—
—
(38,452
)
Other
(247
)
545
1,921
3,028
Changes in operating assets and
liabilities, net of impact of divestiture:
Receivables
(105,010
)
(137,961
)
(62,998
)
(132,194
)
Accounts payable
3,423
10,777
(3,775
)
7,730
Accrued employee compensation
11,025
711
8,146
(3,161
)
Deferred revenue
(1,699
)
3,390
2,705
(2,977
)
Other current and noncurrent assets and
liabilities
(4,770
)
19,869
(57,769
)
(7,051
)
Net cash flows from operating
activities
85,743
41,415
168,517
143,381
Cash flows from investing activities:
Purchases of property and equipment
(968
)
(4,980
)
(8,924
)
(13,103
)
Purchases of software and distribution
rights
(6,282
)
(8,396
)
(28,853
)
(26,790
)
Proceeds from divestiture
—
—
—
100,139
Net cash flows from investing
activities
(7,250
)
(13,376
)
(37,777
)
60,246
Cash flows from financing activities:
Proceeds from issuance of common stock
697
780
2,819
3,581
Proceeds from exercises of stock
options
3,594
2,792
6,726
4,584
Repurchase of stock-based compensation
awards for tax withholdings
(946
)
(1,163
)
(5,149
)
(6,983
)
Repurchases of common stock
(27,587
)
(115,603
)
(27,587
)
(206,537
)
Proceeds from revolving credit
facility
59,000
95,000
134,000
180,000
Repayment of revolving credit facility
(64,000
)
—
(115,000
)
(75,000
)
Repayment of term portion of credit
agreement
(19,475
)
(14,606
)
(73,031
)
(85,431
)
Payments on or proceeds from other debt,
net
(4,293
)
(2,017
)
(16,766
)
(12,123
)
Payments for debt issuance costs
—
—
(2,160
)
—
Net increase (decrease) in settlement
assets and liabilities
(10,769
)
6,765
(15,404
)
26,849
Net cash flows from financing
activities
(63,779
)
(28,052
)
(111,552
)
(171,060
)
Effect of exchange rate fluctuations on
cash
573
(1,977
)
4,961
(2,037
)
Net increase (decrease) in cash and cash
equivalents
15,287
(1,990
)
24,149
30,530
Cash and cash equivalents, including
settlement deposits, beginning of period
223,534
216,662
214,672
184,142
Cash and cash equivalents, including
settlement deposits, end of period
$
238,821
$
214,672
$
238,821
$
214,672
Reconciliation of cash and cash
equivalents to the Consolidated Balance Sheets
Cash and cash equivalents
$
164,239
$
124,981
$
164,239
$
124,981
Settlement deposits
74,582
89,691
74,582
89,691
Total cash and cash equivalents
$
238,821
$
214,672
$
238,821
$
214,672
Adjusted EBITDA (millions)
Three Months Ended December
31,
Years Ended December
31,
2023
2022
2023
2022
Net income
$
122.6
$
90.2
$
121.5
$
142.2
Plus:
Income tax expense (benefit)
31.5
42.8
26.1
64.5
Net interest expense
16.1
12.8
64.3
40.6
Net other (income) expense
2.1
2.4
8.5
(43.4
)
Depreciation expense
5.0
6.1
23.7
23.2
Amortization expense
23.9
25.3
98.6
104.1
Non-cash stock-based compensation
expense
7.0
7.9
24.5
29.8
Adjusted EBITDA before significant
transaction-related expenses
$
208.2
$
187.5
$
367.2
$
361.0
Significant transaction-related
expenses:
CEO transition
—
3.6
—
3.6
Cost reduction strategies
1.3
—
21.0
—
European datacenter migration
0.2
2.4
2.8
5.8
Other
—
0.4
4.4
3.0
Adjusted EBITDA
$
209.7
$
193.9
$
395.4
$
373.4
Revenue, net of interchange:
Revenue
$
476.6
$
451.8
$
1,452.6
$
1,421.9
Interchange
106.1
111.2
421.1
406.6
Revenue, net of interchange
$
370.5
$
340.6
$
1,031.5
$
1,015.3
Net adjusted EBITDA Margin
57
%
57
%
38
%
37
%
Segment Information (millions)
Three Months Ended December
31,
Years Ended December
31,
2023
2022
2023
2022
Revenue
Banks
$
254.9
$
247.0
$
616.1
$
638.6
Merchants
43.0
40.8
150.6
153.9
Billers
178.7
164.0
685.9
629.4
Total
$
476.6
$
451.8
$
1,452.6
$
1,421.9
Recurring revenue
Banks
$
58.2
$
53.6
$
229.4
$
232.9
Merchants
37.9
37.1
138.9
140.6
Billers
178.7
164.0
685.9
629.4
Total
$
274.8
$
254.7
$
1,054.2
$
1,002.9
Segment adjusted EBITDA
Banks
$
188.2
$
186.3
$
355.5
$
371.0
Merchants
17.5
16.8
44.3
49.0
Billers
42.2
26.4
142.3
107.4
EPS Impact of Non-cash and Significant
Transaction-related Items (millions)
Three Months Ended December
31,
2023
2022
EPS Impact
$ in Millions (Net of
Tax)
EPS Impact
$ in Millions (Net of
Tax)
GAAP net income
$
1.12
$
122.6
$
0.81
$
90.2
Adjusted for:
Significant transaction-related
expenses
0.01
1.1
0.04
4.9
Amortization of acquisition-related
intangibles
0.06
6.4
0.06
6.4
Amortization of acquisition-related
software
0.03
3.5
0.04
4.5
Non-cash stock-based compensation
0.05
5.3
0.05
6.0
Total adjustments
$
0.15
$
16.3
$
0.19
$
21.8
Diluted EPS adjusted for non-cash and
significant transaction-related items
$
1.27
$
138.9
$
1.00
$
112.0
EPS Impact of Non-cash and Significant
Transaction-related Items (millions)
Years Ended Years Ended
December 31,
2023
2022
EPS Impact
$ in Millions (Net of
Tax)
EPS Impact
$ in Millions (Net of
Tax)
GAAP net income
$
1.12
$
121.5
$
1.24
$
142.2
Adjusted for:
Gain on divestiture
—
—
(0.26
)
(29.2
)
Significant transaction-related
expenses
0.19
21.1
0.08
9.6
Amortization of acquisition-related
intangibles
0.24
25.7
0.24
27.0
Amortization of acquisition-related
software
0.14
15.5
0.16
18.6
Non-cash stock-based compensation
0.17
18.7
0.20
22.6
Total adjustments
$
0.74
$
81.0
$
0.42
$
48.6
Diluted EPS adjusted for non-cash and
significant transaction-related items
$
1.86
$
202.5
$
1.66
$
190.8
Recurring Revenue (millions)
Three Months Ended December
31,
Years Ended December
31,
2023
2022
2023
2022
SaaS and PaaS fees
$
223.2
$
205.8
$
849.1
$
802.9
Maintenance fees
51.6
48.9
205.1
200.0
Recurring revenue
$
274.8
$
254.7
$
1,054.2
$
1,002.9
New Bookings (millions)
Three Months Ended December
31,
Years Ended December
31,
2023
2022
2023
2022
Annual recurring revenue (ARR)
bookings
$
28.8
$
40.2
$
73.5
$
109.7
License and services bookings
106.5
91.8
239.2
204.7
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240229357302/en/
Investor Relations John Kraft SVP, Head of Strategy and
Finance 239-403-4627 / john.kraft@aciworldwide.com
ACI Worldwide (NASDAQ:ACIW)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
ACI Worldwide (NASDAQ:ACIW)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024