ACI Worldwide Inc (ACIW) Q3 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic ...

GuruFocus.com11-08

Total Revenue: $452 million, up 24% year-over-year. Adjusted EBITDA: $167 million, up 61% year-over-year. Bank Segment Revenue: $222 million, up 43% year-over-year. Bank Segment Adjusted EBITDA: $154 ...

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charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>ACI Worldwide Inc (ACIW) Q3 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic ...</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; 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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nACI Worldwide Inc (ACIW) Q3 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-08 15:10 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/aci-worldwide-inc-aciw-q3-071047865.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Total Revenue: $452 million, up 24% year-over-year.\nAdjusted EBITDA: $167 million, up 61% year-over-year.\nBank Segment Revenue: $222 million, up 43% year-over-year.\nBank Segment Adjusted EBITDA: $154 ...</p>\n\n<a href=\"https://finance.yahoo.com/news/aci-worldwide-inc-aciw-q3-071047865.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ACI","symbol_name":"艾伯森","start_time":0,"source_url":"https://finance.yahoo.com/news/aci-worldwide-inc-aciw-q3-071047865.html","article_id":"2481148523","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/NOgY_EnvKl_Yzdsdyg70og--~B/aD00MDA7dz00MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/2a82ed419090fcc943064cd261503d15"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481148523","pubTimestamp":1731049847,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Bank Segment Revenue: $222 million, up 43% year-over-year.Bank Segment Adjusted EBITDA: $154 million, up 69% year-over-year.Merchant Segment Revenue: $50 million, up 38% year-over-year.Merchant Segment Adjusted EBITDA: $27 million, up 159% year-over-year.Biller Segment Revenue: $180 million, up 5% year-over-year.Cash Flow from Operations: $54 million, more than double year-over-year.Share Repurchases: 200,000 shares for $8 million in Q3; year-to-date total of 4 million shares for $128 million.2024 Revenue Guidance: $1.567 billion to $1.601 billion.2024 Adjusted EBITDA Guidance: $433 million to $448 million.GuruFocus has detected 4 Warning Sign with ACIW.ACI Worldwide Inc  reported a 24% year-over-year increase in total revenue for Q3 2024, exceeding expectations and guidance.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"ACI":"艾伯森","ACIW":"ACI环球"},"translate_title":"ACI Worldwide Inc(ACIW)2024年第三季度收益看涨期权亮点：强劲的收入增长和战略……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ACI":1,"ACIW":1},"content_text":"Total Revenue: $452 million, up 24% year-over-year.\nAdjusted EBITDA: $167 million, up 61% year-over-year.\nBank Segment Revenue: $222 million, up 43% year-over-year.\nBank Segment Adjusted EBITDA: $154 million, up 69% year-over-year.\nReal-Time Payments Revenue Growth: 72% year-over-year.\nMerchant Segment Revenue: $50 million, up 38% year-over-year.\nMerchant Segment Adjusted EBITDA: $27 million, up 159% year-over-year.\nBiller Segment Revenue: $180 million, up 5% year-over-year.\nCash Flow from Operations: $54 million, more than double year-over-year.\nCash on Hand: $178 million.\nDebt Balance: $1 billion.\nNet Debt Leverage Ratio: 1.6x.\nLiquidity: Approximately $650 million.\nShare Repurchases: 200,000 shares for $8 million in Q3; year-to-date total of 4 million shares for $128 million.\n2024 Revenue Guidance: $1.567 billion to $1.601 billion.\n2024 Adjusted EBITDA Guidance: $433 million to $448 million.\n\n\nWarning! GuruFocus has detected 4 Warning Sign with ACIW.\n\nRelease Date: November 07, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nACI Worldwide Inc (NASDAQ:ACIW) reported a 24% year-over-year increase in total revenue for Q3 2024, exceeding expectations and guidance.\nThe company has successfully accelerated the signing of both renewal and new contracts, reducing seasonality and derisking full-year financial guidance.\nMore than 99% of the full-year 2024 revenue forecast is already signed and contracted, allowing the company to focus on 2025 and beyond.\nThe bank segment saw a 43% increase in revenue and a 69% increase in EBITDA, driven by strong performance in real-time payments.\nThe merchant segment experienced a 38% revenue growth and a 159% increase in EBITDA, with improvements in transaction-based recurring revenue.\n\n Negative Points \n\nThe Biller segment only grew by 5%, with a decline in adjusted EBITDA due to nonrecurring margin benefits from the previous year.\nDespite strong performance, the real-time product revenues can be lumpy, indicating potential volatility in future quarters.\nThe company faces a tough comparison for 2025 due to the significant outperformance in 2024, which may challenge maintaining growth rates.\nThere is uncertainty regarding the impact of the U.S. election on regulatory and economic conditions, which could affect the banking sector.\nThe Payments hub is still in development, with pilot implementations expected in Q2 2025, indicating a delay in full-scale availability.\n\n Q & A Highlights \nQ: Can you discuss the medium-term growth outlook for the bank segment and the main drivers behind it? A: Thomas Warsop, President and CEO, explained that the bank segment's growth is driven by strong market health and increased customer investment in new products. ACI is seen as a partner in helping banks apply technology to improve efficiency and market speed. The company is leveraging its long-standing relationships to engage in more strategic discussions with customers, focusing on future growth and the development of the payments hub.\nQ: How does completing renewals earlier in the year impact your strategic focus and growth? A: Warsop noted that completing renewals early allows ACI to focus on new business for 2025 and beyond. It frees up resources to accelerate the sales pipeline and engage with customers about future offerings, such as the payments hub. This strategic shift is expected to enhance growth and align with long-term goals.\nQ: What are your expectations for 2025, given the strong performance in 2024? A: Scott Behrens, CFO, stated that ACI has a strong pipeline for 2025, which positions the company to maintain growth despite the high performance in 2024. The focus is on pulling the pipeline forward to ensure continued strength in revenue and EBITDA growth.\nQ: Can you provide an update on the development and rollout of the payments hub? A: Warsop mentioned that the payments hub is on track, with pilot implementations expected in early Q2 2025. The company is focused on ensuring the solution works as intended before full-scale availability. The payments hub is not a significant factor in next year's expectations but is a strategic focus for future growth.\nQ: How might the recent U.S. election impact ACI's business, particularly in the banking sector? A: Warsop expressed cautious optimism about potential regulatory and economic tailwinds for banks following the election. While the U.S. is a significant market, ACI's global presence means that changes in the U.S. regulatory environment are not expected to have a major impact on the overall business. The company remains focused on leveraging opportunities with its banking customers.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481148523"}