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].

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 for significant growth, driven by consumer behavior shifting towards digital platforms for convenience and cost-effectiveness [4] Catalysts for Growth - The performance of the fintech sector is inversely related to interest rates; a recent reduction in the Federal Reserve's benchmark interest rates is expected to benefit fintech companies [3] - The rise of artificial intelligence (AI) and machine learning is revolutionizing banking, payments, and investments, providing efficient and secure financial solutions [5] Recommended Stocks - Five fintech stocks are recommended for long-term investment: Affirm Holdings Inc. (AFRM), StoneCo Ltd. (STNE), ACI Worldwide Inc. (ACIW), Coinbase Global Inc. (COIN), and OppFi Inc. (OPFI) [2][6] Company-Specific Insights Affirm Holdings Inc. (AFRM) - Affirm has strong revenue growth from diverse income streams, expecting revenues of $3.13-$3.19 billion in fiscal 2025, driven by growing active merchant numbers and improving gross merchandise value [7] - Key partnerships, including those with Apple Pay and Hotels.com, are crucial for Affirm's expansion, including a recent entry into the UK market [8] - Affirm's expected revenue and earnings growth rates are 36.9% and 96.4%, respectively, with a 60% improvement in earnings estimates over the last 30 days [9] - The average short-term price target indicates a potential increase of 70.6% from the last closing price of $40.76, suggesting a maximum upside of 111% [10] StoneCo Ltd. (STNE) - StoneCo is a leading provider of point-of-sale payment processing services, enabling businesses to accept various payment methods [11] - The company offers a full suite of products for e-commerce transactions and client management, utilizing transaction data for credit assessment [12] - StoneCo's expected revenue and earnings growth rates are 4.1% and -6.7%, respectively, with a 9.6% improvement in earnings estimates over the last 30 days [13] - The average short-term price target suggests a potential increase of 12.2% from the last closing price of $11.83, indicating a maximum upside of 86% [13] ACI Worldwide Inc. (ACIW) - ACI Worldwide provides software solutions for digital payments, powering electronic payments for over 5,000 organizations globally, including major financial institutions [15][16] - The company offers real-time payment capabilities and a comprehensive omni-channel payments experience [17] - ACIW's expected revenue and earnings growth rates are 6.8% and 6.1%, respectively, with a 2.6% improvement in earnings estimates over the last 30 days [18] - The average short-term price target indicates a potential increase of 22.9% from the last closing price of $51.31, suggesting a maximum upside of 38.4% [18] Coinbase Global Inc. (COIN) - Coinbase provides financial infrastructure for the crypto economy, offering a user-friendly platform for consumers and sophisticated trading features for experienced users [19][20] - The expected revenue and earnings growth rates for Coinbase are 26.2% and 0.7%, respectively, with a 2.7% improvement in earnings estimates over the last 30 days [21] - The average short-term price target indicates a potential increase of 62.7% from the last closing price of $172.21, suggesting a maximum upside of 179.1% [22] OppFi Inc. (OPFI) - OppFi operates a financial technology platform that helps banks provide credit access to consumers, focusing on those turned away by mainstream options [23] - The expected revenue and earnings growth rates for OppFi are 9.7% and 12.6%, respectively, with a 10.3% improvement in earnings estimates over the last 60 days [25] - The average short-term price target indicates a potential increase of 38.4% from the last closing price of $8.35, suggesting a maximum upside of 55.7% [25]

Core Insights - ACI Worldwide (ACIW) has partnered with NationsBenefits to enhance health and retail benefits for consumers, integrating payment processing solutions with a prepaid card for seamless transactions [1][2][3] Partnership and Strategic Positioning - The collaboration aims to improve consumer access to health-related products and services, marking a significant step in integrating healthcare benefits with payment solutions [3][4] - This partnership positions ACIW strategically within the growing healthcare payments ecosystem, expanding its merchant footprint beyond traditional retail [4][5] Financial Performance and Market Position - ACIW shares have increased by 55.1% over the past 12 months, outperforming the broader Zacks Computer and Technology sector's 1.4% return and the Zacks Computer - Software industry's decline of 5.5% [6] - The company's revenue grew by 10% year-over-year, with net income surging by 67%, driven by strong growth across core segments and early contract wins [7] Future Outlook - ACIW anticipates total revenues of $1.685-$1.715 billion for 2025, reflecting a year-over-year growth of 7-9% [11] - The company expects adjusted EBITDA of $480-$495 million, indicating a 3-6% increase over 2024 performance [12] - ACIW's proactive approach in securing early contract wins is expected to enhance revenue visibility and contribute significantly to first-quarter 2025 revenues [9][10]

Core Insights - The Zacks Computer Software industry is positioned to benefit from the global digital transformation, particularly through cloud transition and advancements in AI and machine learning [1][3][4] Industry Overview - The Zacks Computer Software industry encompasses companies providing software applications in AI, cloud computing, digital media, customer relationship management, cybersecurity, and more [2] Trends Influencing the Industry - Increased enterprise spending on AI and cloud computing is expected to drive growth, with a projected 14.2% growth in software by 2025 due to generative AI hardware upgrades [3][4] - The demand for cybersecurity software is rising due to increased cyber threats, leading to a focus on cloud security and performance monitoring tools [5] Macroeconomic Factors - Global macroeconomic challenges and supply chain volatility are concerns, with potential impacts on software pricing and spending, particularly among small and medium-sized businesses [6] Industry Performance - The Zacks Computer Software industry ranks 135, placing it in the bottom 45% of over 246 Zacks industries, indicating dull near-term prospects [7][8] - The industry has underperformed compared to the broader Zacks Computer and Technology sector and the S&P 500, declining 2% over the past year while the S&P 500 and sector increased by 10.5% and 10.4%, respectively [9] Valuation Metrics - The industry is currently trading at a forward 12-month P/E ratio of 28.19X, higher than the S&P 500's 20.92X and the sector's 24.25X [11] Company Highlights - **ACI Worldwide (ACIW)**: Expected revenue growth of 10% in 2024, with adjusted EBITDA of $466 million up 18% and cash flow from operations up 113% [14][15] - **Open Text Corporation (OTEX)**: Focused on cloud, security, and AI, with fiscal 2025 earnings projected at $3.86 per share [18] - **Microsoft (MSFT)**: Dominates the PC software market with over 73% market share, fiscal 2025 earnings expected at $13.08 per share, indicating a year-over-year growth of 10.9% [20][22]

Core Viewpoint - ACI Worldwide (ACIW) is experiencing solid improvement in earnings estimates, which is likely to positively impact its stock price momentum [1][2]. Earnings Estimates - The current quarter's earnings estimate for ACI Worldwide is projected at $0.33 per share, reflecting a significant increase of +230% compared to the same quarter last year [5]. - Over the past 30 days, the Zacks Consensus Estimate for ACI Worldwide has risen by 283.33%, with no negative revisions reported [5]. - For the full year, the expected earnings per share is $2.73, indicating a year-over-year growth of +3.41% [6]. - The consensus estimate for the current year has increased by 5.77% due to two upward revisions and no negative changes [7]. Analyst Sentiment - There is strong agreement among analysts in raising earnings estimates for ACI Worldwide, contributing to a more favorable outlook [3]. - The Zacks Rank system currently rates ACI Worldwide as 1 (Strong Buy), indicating a positive sentiment among analysts [8]. Stock Performance - ACI Worldwide shares have appreciated by 8% over the past four weeks, suggesting investor confidence in the company's earnings growth prospects [9].

Market Overview - The S&P 500 and Nasdaq are in correction territory, down over 10% from recent peaks, as investors react to tariff uncertainties and their potential impact on the global economy [1] - Wall Street is awaiting the Federal Reserve's interest-rate decision and comments from Jay Powell [1] Investment Opportunities - There are numerous value stocks available for purchase, particularly given the strong earnings outlook for the S&P 500 [2] - ACI Worldwide is highlighted as a must-buy tech stock due to its strong value and growth potential [7][8] Stock Screening Methodology - The screening process focuses on stocks with Zacks Rank 1 (Strong Buy) or 2 (Buy), P/E ratios under the industry median, and P/S ratios under the industry median [5][9] - The screen also considers quarterly earnings rates above the industry median and utilizes a blend of upgrades and estimate revisions to identify the top seven stocks [6] ACI Worldwide Performance - ACI Worldwide has a significant client base, including over 6,000 organizations and 1,000 large financial institutions, processing billions of transactions daily [10] - The company achieved 10% sales growth in 2024 and 42% adjusted earnings growth, with projections of 7% revenue growth and 9% higher sales in 2025 [11] - ACI's consensus earnings estimate for FY26 increased by 10% since February 27, contributing to its Zacks Rank 1 [12] Stock Valuation - ACI Worldwide's stock has increased by 450% over the past 25 years, outperforming the Zacks Tech Sector's 415% growth [12] - Despite recent performance, ACIW trades 11% below its November records and 20% below its average Zacks price target, indicating potential for further appreciation [15]

Earnings Presentation Q4 2024 February 27, 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 ...

Financial Data and Key Metrics Changes - Total revenue for 2024 was $1.6 billion, up 10% from 2023, exceeding previous guidance [7][24] - Adjusted EBITDA for the year grew 18% to $466 million, with an adjusted EBITDA margin of 41%, representing over 300 basis points of margin expansion [8][24] - Cash flow from operating activities was $359 million, more than double the previous year [8][25] - Total debt outstanding decreased by over $100 million to $932 million, with a net debt leverage ratio of 1.5x [25][26] Business Line Data and Key Metrics Changes - The Bank segment revenue increased by 14% with an adjusted EBITDA margin of 61% [24][25] - The Merchant segment revenue grew by 10% with an adjusted EBITDA margin of 42% [24][25] - The Biller segment revenue was up 6%, with adjusted EBITDA margin at 51% [24][25] Market Data and Key Metrics Changes - The company reported strong bookings momentum, with ARR bookings in Q4 up more than 20% over Q4 2023 [20] - A significant new contract was signed in the Asia Pacific region, yielding over $50 million in first quarter revenue [21][26] Company Strategy and Development Direction - The company combined the Bank and Merchant segments into a new business called Payment Software to streamline operations and enhance synergies [11][12] - The focus remains on the development and rollout of the next-generation payments hub, Kinetic, with a launch expected in 2025 [17][80] - The company aims to improve customer satisfaction and operational efficiency through a general manager structure [50][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the 2025 outlook, citing a strong start to the year and a healthy pipeline [10][30] - The company is optimistic about long-term profitable growth and delivering significant shareholder value [31][32] Other Important Information - The company repurchased nearly 4 million shares, representing approximately 4% of shares outstanding, with $373 million remaining on the repurchase authorization [26] - The company is focused on reducing seasonality by signing contracts earlier in the year [9][29] Q&A Session Summary Question: Comments on net revenue dynamics within Biller - Management indicated that the decline in EBITDA was primarily due to certain one-time margin benefits in 2023 that did not recur in 2024 [35][36] Question: Details on the competitive takeaway in the first quarter - The competitive takeaway involved a flagship issuing and acquiring solution for a large bank that was not previously using the company's products [38][39] Question: Impetus for the reorganization and expected benefits - The reorganization aimed to create accountability and streamline operations, with expectations of improved customer satisfaction and internal efficiency [48][54] Question: Factors influencing adjusted EBITDA guidance - The high end of the EBITDA range would be driven by successful new license deals, while the lower end could result from a less favorable mix of revenue sources [71][73] Question: Insights on the sales environment and renewals - Management noted a positive sales environment, with a focus on modernization and proven technology as key drivers for customer decisions [78][80]

ACI Worldwide, Inc. (NASDAQ:ACIW) Q4 2024 Earnings Conference Call February 27, 2025 8:30 AM ET Company Participants John Kraft – Senior Vice President, Head-Strategy and Finance Tom Warsop – President and Chief Executive Officer Scott Behrens – Chief Financial Officer Conference Call Participants Peter Heckmann – D.A. Davidson Trevor Williams – Jefferies Jeff Cantwell – Seaport Research Partners George Sutton – Craig-Hallum Operator Good morning. My name is John, and I will be your conference operator toda ...