ACI Worldwide Inc (ACIW) stock surged 5.12% on Friday's trading session after the company reported strong financial results for the fourth quarter and full year 2024. The company's robust performance, driven by solid revenue growth, significant margin expansion, and improved cash flow generation, fueled investor optimism and contributed to the stock's upward movement.
The company's fourth-quarter and full-year 2024 financial highlights included a 10% increase in total revenue to $1.6 billion, an 18% growth in adjusted EBITDA to $466 million, and a 300 basis point expansion in adjusted EBITDA margin to 41%. Additionally, cash flow from operating activities more than doubled to $359 million, reflecting the company's strong cash generation capabilities.
ACI Worldwide's positive outlook for 2025, including revenue guidance between $1.685 billion and $1.715 billion (representing 7% to 9% growth) and adjusted EBITDA guidance between $480 million and $495 million, further boosted investor confidence. The company's focus on executing its sales strategy, developing its next-generation payments hub platform, and expanding its customer base contributed to the optimistic market sentiment.
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