Core Viewpoint - ACI Worldwide (ACIW) has experienced a downtrend with a 7.8% decline over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from analysts [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a momentum oscillator that indicates whether a stock is oversold, with readings below 30 typically signaling this condition [2]. - ACIW's current RSI reading is 28.04, indicating that heavy selling may be exhausting itself, which could lead to a price rebound [5]. Group 2: Fundamental Analysis - Analysts have shown strong agreement in raising earnings estimates for ACIW, with a 0.1% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [7]. - ACIW holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8].

Industry Overview - Financial technology (fintech) is a transformative investment space merging finance and technology, offering services like online banking, peer-to-peer payments, insurance, cryptocurrency, and cybersecurity [1] - The fintech space is expected to benefit from expanding transaction volumes due to the widespread adoption of digital means, accelerated by the pandemic [2] - The innovative nature of fintech positions it favorably in the evolving financial landscape, with significant growth potential driven by mobile and broadband network expansion [3] Catalysts for Growth - Consumer behavior is shifting towards digital platforms, driven by convenience and cost-effectiveness, which supports fintech's adaptability to changing technological needs [3] - The rise of artificial intelligence (AI) and machine learning is revolutionizing banking, payments, and investments, providing efficient and secure financial solutions [4] Company Highlights BILL Holdings Inc. (BILL) - BILL primarily serves small and medium businesses (SMB) with its AI-enabled financial software platform, benefiting from an expanding clientele and diversified business model [7] - Expected revenue and earnings growth rates for BILL are 13.7% and 11.2%, respectively, for the next year, with a Zacks Consensus Estimate for next-year earnings improving by 5.6% in the last 60 days [10] ACI Worldwide Inc. (ACIW) - ACIW develops software products for facilitating digital payments, powering electronic payments for over 5,000 organizations globally, executing $14 trillion in payments daily [12][13] - Expected revenue and earnings growth rates for ACIW are 7.1% and 7.2%, respectively, for the current year, with a Zacks Consensus Estimate for current-year earnings improving by 1.1% in the last 60 days [13] Shift4 Payments Inc. (FOUR) - Shift4 Payments provides software and payment processing solutions, offering omni-channel card acceptance and processing across multiple payment types [14] - Expected revenue and earnings growth rates for FOUR are 26% and 43.4%, respectively, for the current year, with a Zacks Consensus Estimate for current-year earnings improving by 17.2% in the last 60 days [16] OppFi Inc. (OPFI) - OppFi operates as a specialty finance platform for community banks, providing access to credit for consumers turned away by mainstream options [17] - Expected revenue and earnings growth rates for OPFI are 10% and 29.5%, respectively, for the current year, with a Zacks Consensus Estimate for current-year earnings improving by 15% in the last 60 days [18] StoneCo Ltd. (STNE) - StoneCo is a leading provider of point-of-sale payment processing services, empowering businesses to accept various payment methods and manage accounts [20] - Expected revenue and earnings growth rates for STNE are 10.9% and 4.4%, respectively, for the current year, with a Zacks Consensus Estimate for current-year earnings improving by 11.9% in the last 60 days [21]

Core Viewpoint - ACI Worldwide (ACIW) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][2]. - Changes in earnings estimates are strongly correlated with near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [4][5]. Recent Performance and Future Outlook - For the fiscal year ending December 2025, ACI Worldwide is expected to earn $2.83 per share, with a 4.6% increase in the Zacks Consensus Estimate over the past three months [8]. - The upgrade to Zacks Rank 2 places ACI Worldwide in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The system maintains a balanced distribution of ratings, ensuring that only the top 20% of stocks are positioned for superior earnings estimate revisions [9][10].

Financial Performance - Total revenues for the three months ended March 31, 2025, increased to $394.6 million, up 25% from $316.0 million in the same period of 2024[15] - Net income for the first quarter of 2025 was $58.9 million, compared to a net loss of $7.8 million in the first quarter of 2024[15] - Operating income rose significantly to $58.5 million, compared to $9.6 million in the prior year, reflecting improved operational efficiency[15] - The company reported a comprehensive income of $66.7 million for the first quarter of 2025, compared to a comprehensive loss of $10.2 million in the prior year[17] - Basic earnings per share for the first quarter of 2025 were $0.56, compared to a loss of $0.07 per share in the same quarter of 2024[15] - Net income for the three months ended March 31, 2025, was $58.87 million, a significant improvement compared to a net loss of $7.75 million in the same period of 2024[23] - Segment Adjusted EBITDA for the Payment Software segment was $106.6 million, while the Biller segment reported $30.9 million for the three months ended March 31, 2025[83] - The company’s diluted earnings per share for the three months ended March 31, 2025, was calculated based on 106,827 thousand weighted average shares outstanding[72] Cash and Liquidity - Cash and cash equivalents increased to $230.1 million as of March 31, 2025, from $216.4 million at the end of 2024[12] - Total cash and cash equivalents, including settlement deposits, increased to $366.77 million as of March 31, 2025, compared to $238.10 million at the end of the same period in 2024, representing a growth of approximately 54%[23] - Net cash flows from operating activities decreased to $78.22 million from $123.24 million year-over-year, reflecting a decline of approximately 36.5%[23] - The company had $598.1 million of unused borrowings under the revolving credit facility as of March 31, 2025[47] Assets and Liabilities - Total assets grew to $3.20 billion as of March 31, 2025, up from $3.03 billion at December 31, 2024[12] - Total liabilities increased to $1.72 billion, compared to $1.60 billion at the end of 2024, primarily due to higher settlement liabilities[12] - The company’s stockholders' equity increased to $1.48 billion as of March 31, 2025, from $1.42 billion at the end of 2024, reflecting strong financial performance[12] - Total receivables, net, decreased to $739.85 million as of March 31, 2025, down from $774.48 million at the end of 2024, indicating a decline of about 4.4%[42] - Deferred revenue as of March 31, 2025, was $90.89 million, down from $94.72 million at the end of 2024, a decrease of approximately 4.4%[44] Research and Development - Research and development expenses for the first quarter of 2025 were $38.9 million, up from $35.0 million in the same quarter of 2024, indicating continued investment in innovation[15] Taxation - The effective tax rate for the three months ended March 31, 2025, was 18%, positively impacted by excess tax deductions on stock-based compensation[88] - The company paid $12.70 million in income taxes during the three months ended March 31, 2025, compared to $2.52 million in the same period of 2024[23] - Unrecognized tax benefits for uncertain tax positions were $21.1 million as of March 31, 2025, with a potential decrease of approximately $0.8 million expected within the next 12 months[91] Stock and Compensation - The Company granted 459,741 performance share awards during the three months ended March 31, 2025, with a grant date fair value of $59.78[65] - As of March 31, 2025, there were 2,180,947 nonvested restricted share units (RSUs) with a weighted average grant date fair value of $39.24[66] - The company reported stock-based compensation expense of $11.63 million for the three months ended March 31, 2025, compared to $8.10 million in 2024[23] - The unrecognized compensation expense related to RSUs was $80.3 million, expected to be recognized over 2.4 years, and $37.9 million related to TSRs over 1.9 years[67] Debt and Interest - As of March 31, 2025, total debt amounted to $845.9 million, a decrease from $924.6 million as of December 31, 2024[57] - The Company had $453.1 million in term loans and $400.0 million in senior notes outstanding, with no amounts drawn under the revolving credit facility[47] - The interest rate for the Credit Facility as of March 31, 2025, was 6.17%[50] Segment Performance - Revenue for the Payment Software segment was $200.7 million, while the Biller segment generated $193.8 million, totaling $394.6 million for the three months ended March 31, 2025[83] - Revenue from the United States was $236.754 million, up from $228.107 million, while revenue from other regions increased significantly to $157.811 million from $87.912 million[87] - The Company’s revenue from Bill Payments was $193.840 million for the three months ended March 31, 2025, up from $174.862 million in 2024[86] - The Company’s revenue from Merchant Payments increased to $37.659 million in Q1 2025 from $35.728 million in Q1 2024[86] - The Company’s revenue from Fraud Management decreased to $9.574 million in Q1 2025 from $11.507 million in Q1 2024[86]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $395 million, representing a 25% increase from Q1 2024, while adjusted EBITDA was $94 million, up 95% from the previous year [18][19] - The company ended the quarter with $230 million in cash and a net debt leverage ratio of 1.2x, below the target of 2x [19][20] Business Line Data and Key Metrics Changes - Payment Software segment revenue grew 42% year-over-year, with adjusted EBITDA more than doubling compared to Q1 2024 [10][18] - Biller segment revenue increased by 11%, with adjusted EBITDA rising by 1% from Q1 2024 [18][19] Market Data and Key Metrics Changes - The company reported strong cash flow growth with operating cash flow of $78 million for the quarter [19] - The company has not seen material impacts from geopolitical uncertainties, including trade discussions, and remains focused on broader strategies [16][20] Company Strategy and Development Direction - The company has combined its Bank and Merchant segments into a new business unit called Payments Software, which has generated new pipeline opportunities and improved operational efficiency [9][10] - The launch of the next-generation payments hub solution, named Kinetic, aims to expand the addressable market to include midsize banks and non-bank financial institutions [11][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving full-year targets, citing a strong start to the year and healthy customer demand despite macroeconomic uncertainties [16][17] - The company raised its full-year revenue guidance to a range of $1.69 billion to $1.72 billion, with adjusted EBITDA expected between $480 million and $495 million [22] Other Important Information - The company repurchased approximately 1 million shares year-to-date for $52 million, with $320 million remaining on its share repurchase authorization [19] - Scott Behrens, the CFO, announced plans for retirement, which will be managed through a succession plan [24][26] Q&A Session Summary Question: Current environment and customer behavior - Management noted no negative impacts from macroeconomic uncertainties, with customers showing a willingness to invest in modernization [31][35] Question: Exposure to stablecoins and cross-border payments - The company facilitates cross-border payments and is exploring stablecoin opportunities, although current volumes are small [39][42] Question: Payment Software segment growth expectations - Management expects continued growth in the Payment Software segment, with a focus on recurring revenue and license deals [50][55] Question: Partnership with Ingo Payments and Speedpay - The partnership aims to enhance digital disbursements, expanding the company's capabilities beyond bill payments [56][62] Question: Impact of recent mergers in the industry - Management expressed optimism about potential opportunities arising from the mergers of Global Payments and FIS, emphasizing strong existing relationships [64][65] Question: Revenue contribution from real-time payments - Real-time payments account for about 10% of overall business and are expected to grow at double digits, though with some quarter-to-quarter volatility [86][87] Question: Traction in different product areas - The company saw significant traction in issuing and acquiring solutions, particularly in the Asia Pacific region [92][95]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $395 million, representing a 25% increase from Q1 2024, while adjusted EBITDA was $94 million, up 95% from the previous year [15][16] - Cash flow from operating activities was $78 million, with a net debt leverage ratio of 1.2x, below the target of 2x [16][19] Business Line Data and Key Metrics Changes - Payment Software segment revenue grew 42% with adjusted EBITDA more than doubling compared to Q1 2024 [15][16] - Biller segment revenue increased by 11%, while adjusted EBITDA rose by 1% from Q1 2024 [15][16] Market Data and Key Metrics Changes - The company reported strong cash flow growth and ended the quarter with $230 million in cash on hand and approximately $853 million in total debt outstanding [16][19] - The company has not seen material impacts from geopolitical uncertainties, including exposure to China, which is considered non-material [14][19] Company Strategy and Development Direction - The company has combined its Bank and Merchant segments into a new business unit called Payments Software, which has generated new pipeline opportunities and improved operational efficiency [7][8] - The launch of the next-generation payments hub solution, named Kinetic, aims to expand the addressable market to include midsize and smaller institutions, as well as non-bank financial institutions [9][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding long-term profitable growth and the ability to deliver significant shareholder value, despite macroeconomic uncertainties [15][19] - The company raised its full-year revenue guidance to a range of $1.69 billion to $1.72 billion, expecting adjusted EBITDA to be between $480 million and $495 million [20][21] Other Important Information - The company sold its non-controlling interest in India-based Mindgate to PayU India, with the gain included in other income [17] - The CFO announced plans for retirement, emphasizing a smooth transition in financial leadership [22][23] Q&A Session Summary Question: Current environment and customer behavior - Management noted no negative impacts on customer decision-making timelines, with some customers pushing to finalize deals sooner due to uncertainty [29][33] Question: Exposure to stablecoins and cross-border payments - The company facilitates cross-border payments and is exploring the potential of stablecoins, although current volumes are small [36][42] Question: Payment Software segment growth expectations - Management expects the Payment Software segment to continue tracking a 7-9% constant currency revenue growth for the year, with variability based on timing of license fees [52][54] Question: Partnership with Ingo Payments and Speedpay - The partnership aims to enhance digital disbursements, expanding the company's capabilities beyond bill payments [55][58] Question: Impact of recent mergers in the industry - Management expressed optimism about potential opportunities arising from the mergers of Global Payments and FIS, emphasizing strong existing relationships [64][66] Question: Kinetic platform milestones - The company has achieved key milestones with the Kinetic platform, including successful demos and plans for beta customers by late this year or early next year [75][76]

Financial Performance - Q1 2025 revenue was $395 million, up 25% from Q1 2024[4] - Net income for Q1 2025 was $59 million compared to a net loss of $8 million in Q1 2024[4] - Adjusted EBITDA in Q1 2025 was $94 million, reflecting a 95% increase from Q1 2024[4] - Total revenues for Q1 2025 reached $394.6 million, a 25.0% increase from $316.0 million in Q1 2024[20] - Net income for Q1 2025 was $58.9 million, compared to a net loss of $7.8 million in Q1 2024, marking a significant turnaround[20] - Adjusted EBITDA for Q1 2025 was $94.1 million, up from $48.1 million in Q1 2024, reflecting a strong operational performance[23] - The company achieved a net adjusted EBITDA margin of 36% in Q1 2025, up from 24% in Q1 2024[23] - The company reported a basic earnings per share (EPS) of $0.56 in Q1 2025, compared to a loss per share of $0.07 in Q1 2024[20] Revenue Breakdown - Recurring revenue reached $286 million, growing 8% and representing 72% of total revenue[4] - Recurring revenue for Q1 2025 totaled $285.7 million, a 8.9% increase from $263.5 million in Q1 2024[24] - The newly formed Payment Software segment grew revenue by 42% in Q1 2025[7] - Annual recurring revenue (ARR) bookings for Q1 2025 were $8.9 million, an increase from $6.4 million in Q1 2024[24] - License and services bookings for Q1 2025 were $50.0 million, significantly higher than $27.2 million in Q1 2024[24] Cash Flow and Guidance - Cash flow from operating activities in Q1 2025 was $78 million, down from $123 million in Q1 2024[4] - The company reported a net cash flow from operating activities of $78.2 million in Q1 2025, down from $123.2 million in Q1 2024[22] - The company ended Q1 2025 with $230 million in cash and a net debt leverage ratio of 1.2x adjusted EBITDA[5] - Cash and cash equivalents at the end of Q1 2025 were $366.8 million, compared to $238.1 million at the end of Q1 2024[22] - ACI raised its full-year 2025 revenue guidance to a range of $1.690 billion to $1.720 billion[8] - For Q2 2025, revenue is expected to be between $375 million and $385 million[8] Share Repurchase - ACI repurchased 1 million shares for approximately $52 million year-to-date[6]

Company Performance - ACI Worldwide reported quarterly earnings of $0.51 per share, exceeding the Zacks Consensus Estimate of $0.33 per share, and showing a significant increase from $0.10 per share a year ago, representing an earnings surprise of 54.55% [1] - The company achieved revenues of $394.57 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 8.14%, and up from $316.02 million year-over-year [2] - ACI Worldwide has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Stock Performance - ACI Worldwide shares have increased approximately 5.7% since the beginning of the year, contrasting with the S&P 500's decline of 4.3% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for it to outperform the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.50, with projected revenues of $398.35 million, and for the current fiscal year, the consensus EPS estimate is $2.80 on revenues of $1.7 billion [7] - The Computer - Software industry, to which ACI Worldwide belongs, is currently ranked in the top 29% of over 250 Zacks industries, suggesting a favorable outlook for the sector [8]

Earnings Presentation Q1 2025 May 8, 2025 Private Securities Litigation Reform Act of 1995 Safe Harbor for Forward-Looking Statements 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 o ...

Core Viewpoint - ACI Worldwide (ACIW) is expected to report significant growth in quarterly earnings and revenues, indicating strong performance compared to the previous year [1]. Financial Performance - Quarterly earnings are predicted to be $0.33 per share, reflecting a 230% increase year-over-year [1]. - Revenues are forecasted to reach $364.85 million, representing a 15.5% increase compared to the same period last year [1]. - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [1]. Revenue Breakdown - 'Revenues- Banks' are expected to reach $134.10 million, a change of +27.2% from the prior-year quarter [4]. - 'Revenues- Billers' are projected to be $192.40 million, indicating a +10% change from the year-ago quarter [4]. - 'Revenues- Merchants' are anticipated to come in at $38.40 million, reflecting a +7.6% change from the previous year [4]. Market Performance - ACI Worldwide shares have increased by +13.4% in the past month, outperforming the Zacks S&P 500 composite's +10.6% increase [5]. - The company holds a Zacks Rank 2 (Buy), suggesting it is expected to outperform the overall market in the near term [5].