Financial Performance - Revenue for Q3 2024 was $452 million, representing a 24% increase compared to Q3 2023[4] - Net income for Q3 2024 was $81 million, up 115% from $38 million in Q3 2023[4] - Adjusted EBITDA for Q3 2024 was $167 million, a 61% increase from Q3 2023[4] - Cash flow from operating activities increased 114% to $54 million in Q3 2024, compared to $25 million in Q3 2023[4] - Total revenues for the three months ended September 30, 2024, reached $451,752 million, a 24.5% increase from $363,015 million in the same period of 2023[20] - Net income for the three months ended September 30, 2024, was $81,427 million, compared to $37,911 million in the same period of 2023, representing a 114.3% increase[20] - Operating income for the three months ended September 30, 2024, was $122,586 million, up from $61,924 million in the same period of 2023, reflecting a 97.5% increase[20] - Cash flows from operating activities for the three months ended September 30, 2024, were $54,008 million, compared to $25,266 million in the same period of 2023, indicating a 113.0% increase[21] - Net income for the nine months ended September 30, 2024, was $104.6 million, a significant recovery from a net loss of $1.1 million in the same period of 2023[22] Segment Performance - Bank segment revenue increased 43% in Q3 2024, with adjusted EBITDA up 69%[5] - Merchant segment revenue rose 38% in Q3 2024, with adjusted EBITDA increasing 159%[5] - Revenue from the Banks segment for Q3 2024 was $222.0 million, up from $155.7 million in Q3 2023, a 42% increase[23] Guidance and Expectations - Full-year 2024 revenue guidance raised to a range of $1.567 billion to $1.601 billion, up from $1.557 billion to $1.591 billion[7] - Adjusted EBITDA guidance for 2024 increased to a range of $433 million to $448 million, up from $423 million to $438 million[7] - The company expects continued growth in revenue and profitability for the upcoming quarters, driven by strategic market expansions and new product developments[22] Shareholder Actions - Year-to-date 2024, the company repurchased approximately 4 million shares for $128 million[6] Cash and Liquidity - The company ended Q3 2024 with a net debt leverage ratio of 1.6x adjusted EBITDA and approximately $650 million in liquidity[3] - Cash and cash equivalents at the end of the period were $177,860 million, compared to $139,520 million at the end of the same period in 2023, representing a 27.5% increase[21] - Total cash and cash equivalents, including settlement deposits, at the end of the period were $268,670 million, up from $223,534 million in the same period of 2023, indicating a 20.2% increase[21] Expenses and Margins - Research and development expenses for the three months ended September 30, 2024, were $37,660 million, an increase from $33,739 million in the same period of 2023, showing an 8.6% rise[20] - Total operating expenses for the three months ended September 30, 2024, were $329,166 million, up from $301,091 million in the same period of 2023, reflecting a 9.3% increase[20] - The Adjusted EBITDA margin improved to 37% in Q3 2024 from 28% in Q3 2023[22] Other Key Metrics - The company reported a basic income per share of $0.78 for the three months ended September 30, 2024, compared to $0.35 in the same period of 2023, marking a 122.9% increase[20] - Recurring revenue for Q3 2024 was $270.9 million, slightly up from $263.3 million in Q3 2023, indicating a 2% increase[24] - Annual recurring revenue (ARR) bookings for Q3 2024 were $11.1 million, down from $20.5 million in Q3 2023, reflecting a 46% decline[25] - Total bookings for License and services in Q3 2024 were $67.0 million, an increase from $54.1 million in Q3 2023, representing a 24% growth[25] - Significant transaction-related expenses for Q3 2024 amounted to $4.5 million, compared to $3.3 million in Q3 2023[24]

Core Viewpoint - ACI Worldwide (ACIW) has shown significant stock performance, gaining 15% over the past three months, outperforming both the Zacks Computer and Technology Sector and the S&P 500 index [1] Group 1: Company Performance - ACIW's revenues have been consistently growing, particularly in the biller segment, which saw a 13% year-over-year increase in the second quarter of 2024 [3] - The bank segment revenues grew by 22% year-over-year during the same period [3] - ACIW has secured major contracts internationally, enhancing its payment solutions and infrastructure [2] Group 2: Market Position and Competition - ACIW is benefiting from international expansion, especially in the Asia-Pacific market, where competitors are withdrawing support, creating opportunities for ACIW [2] - The company faces intense competition in the electronic payments software space from various players, including Fiserv, NCR Voyix, and Jack Henry & Associates [5][6] - Ongoing macroeconomic challenges, such as inflation and high interest rates, may impact ACIW's growth prospects, although the company is currently navigating these issues with its innovative product portfolio [6] Group 3: Financial Outlook - ACIW expects its 2024 revenues to be between $1.557 billion and $1.591 billion, with a Zacks Consensus Estimate of $1.58 billion, indicating an 8.6% year-over-year growth [6] - The recent increase in share price has led to elevated valuation levels, with a Zacks Value score of C, suggesting that the stock may be overvalued at present [7]

Core Viewpoint - ACI Worldwide (ACIW) has shown significant stock performance, gaining 55.8% year to date, outperforming the Zacks Computer-Software industry's growth of 7.1% [1] Group 1: Performance Metrics - ACIW has outperformed both the Zacks Computer and Technology Sector and the S&P 500 index, which returned 13.6% and 14.4% year to date, respectively [1] - In the second quarter of 2024, ACIW's biller segment revenues increased by 13% year over year, while bank segment revenues grew by 22% year over year [3] Group 2: Business Growth and Opportunities - ACIW has been able to grow its top line through higher transaction volumes in the biller segment and is seeing more deals in its banking segment [2] - The company is capitalizing on international opportunities, particularly in the Asia-Pacific market, where competitors are discontinuing product support [2] - ACI Worldwide has secured major contracts with various organizations to modernize payment solutions and improve instant payment infrastructure [2] Group 3: Competitive Landscape - ACIW faces intense competition in the electronic payment software space from companies like Fiserv, NCR Voyix, Jack Henry & Associates, Payoneer Global, Nuvei Corporation, and Paymentus Holdings [4][5] - In the merchant payments space, NCR Voyix competes with ACI Payments Orchestration Platform, while in bill payments, ACIW competes with Jack Henry & Associates, Paymentus, and Fiserv [5] Group 4: Valuation Concerns - ACIW's stock is currently trading at a forward 12-month price-to-earnings multiple of 30.62X, significantly higher than the industry average of 19.22X and its peers [5] - The impressive year-to-date share price performance has driven ACIW's valuation to elevated levels, suggesting a potential market correction or consolidation could provide better investment opportunities [6]

Group 1 - ACI Worldwide (ACIW) has gained approximately 61.7% year-to-date, significantly outperforming the Computer and Technology sector, which has returned an average of 23.4% [2][3] - The Zacks Consensus Estimate for ACIW's full-year earnings has increased by 2.8% over the past quarter, indicating improved analyst sentiment [2] - ACI Worldwide is part of the Computer - Software industry, which has seen a year-to-date gain of about 10.6%, further highlighting ACIW's strong performance relative to its industry peers [3] Group 2 - Celestica (CLS) has also outperformed the sector with a year-to-date return of 81.5% [2] - The Electronics - Manufacturing Services industry, to which Celestica belongs, has returned +8.7% so far this year, ranking 102 in the Zacks Industry Rank [3] - ACI Worldwide currently holds a Zacks Rank of 2 (Buy), while Celestica has a Zacks Rank of 1 (Strong Buy), indicating strong potential for both stocks [2][3]

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Whi ...

Group 1: Fintech Industry Overview - The demand for digitalized conveniences is increasing, with cash becoming obsolete as consumers seek more efficient payment solutions [1] - The fintech sector is experiencing significant interest as traditional business models struggle to adapt to modern consumer expectations [1] Group 2: PayPal (PYPL) - PayPal reached a peak valuation in 2021 but has since seen a decline in stock price due to unfavorable monetary policy [2] - Currently, PYPL shares trade at 2.17X trailing-year revenue, down from 2.49X earlier this year, indicating potential for reversion to mean valuation [2][3] - Analysts project fiscal 2024 sales to hit $31.93 billion, representing a growth rate of 14.8% from the previous year [3] Group 3: Paysafe (PSFE) - Paysafe provides end-to-end payment solutions across various international markets, including credit and debit card processing and digital wallets [5] - PSFE stock trades at 0.71X trailing-year revenue, significantly lower than the average multiple of 4.14X in the infrastructure software space [5][6] - Analysts forecast fiscal 2024 revenue at $1.71 billion, a 6.6% increase from $1.6 billion in the prior year [6] Group 4: ACI Worldwide (ACIW) - ACI Worldwide develops software solutions for digital payments, including fraud prevention and transaction processing [7] - ACIW shares currently trade at 3.21X sales, which is a premium compared to competitors but still below the sector average [7][8] - Analysts expect revenue of $1.58 billion for fiscal 2024, translating to a growth rate of 10.7% from the previous year [8]

For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Is ACI Worldwide (ACIW) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.ACI Worldwide is a member of our Computer and Technology group, which includes 617 different companies and currently sits at #8 in the Zacks Sector Rank. T ...

Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was $373 million, representing a 16% increase year-over-year, while adjusted EBITDA was $93 million, up 62% from Q2 2023 [13][14] - Cash flow from operations was $55 million, an increase of 215% compared to Q2 last year, with a net debt leverage ratio of 1.9x, down from 2.3x at year-end [14][15] Business Line Data and Key Metrics Changes - In the Biller segment, revenue was $192 million, up 13% year-over-year, and adjusted EBITDA increased by 20% [14][7] - The Bank segment saw revenue growth of 22%, reaching $144 million, with adjusted EBITDA up 53% [14][9] - The Merchant segment's revenue grew 4% to $38 million, while adjusted EBITDA surged 55% [14][12] Market Data and Key Metrics Changes - The company experienced strong tax-related volumes in the government vertical during Q2, contributing to the Biller segment's performance [7] - The Bank segment's growth was driven by significant renewal contracts and strategic expansions, including a partnership with a top bank in Malaysia [9] Company Strategy and Development Direction - The company is focused on its next-generation payments hub program, with investments continuing and development on track for customer evaluation by year-end [10] - There is a strong emphasis on expanding the customer base, particularly in the Asia Pacific and European markets, driven by the demand for real-time payment solutions [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the strong performance and raised guidance for both revenue and adjusted EBITDA for the remainder of 2024 [16][17] - The company highlighted the importance of early contract renewals to derisk the forecast and allow focus on new deals in the second half of the year [9][25] Other Important Information - ACI Worldwide was recognized as one of the world's top FinTech companies for 2024, underscoring its position as an industry leader [18] - The Board of Directors increased the share repurchase authorization to $400 million, with $380 million remaining available [15] Q&A Session Summary Question: How does the company characterize its international opportunity relative to the U.S. market? - Management noted significant interest globally, particularly in Asia Pacific and Europe, driven by competitors removing products from support and regulatory mandates for faster payments [21][22] Question: Can you speak to the pipeline across the three segments for the second half and 2025? - The pipeline is growing, with a strong focus on renewals and new business, particularly in the Bank segment [24][26] Question: What is the outlook for real-time payments over the next two years? - The European Central Bank mandates real-time payments, creating opportunities for upgrades in payment infrastructure across the EU [29][30] Question: What contributed to the strong results in the Bank segment? - The outperformance was primarily driven by the Biller segment, with no significant one-time issues affecting the Bank segment's results [56][57] Question: Can you elaborate on the full-year guidance raise? - The guidance raise is primarily attributed to better-than-expected performance in the Biller segment, with expectations for continued growth in all segments [58][59]

ACI Worldwide (ACIW) reported $373.48 million in revenue for the quarter ended June 2024, representing a year-over-year increase of 15.5%. EPS of $0.47 for the same period compares to $0.15 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $349.95 million, representing a surprise of +6.72%. The company delivered an EPS surprise of +113.64%, with the consensus EPS estimate being $0.22. While investors scrutinize revenue and earnings changes year-over-year and how they compare with ...

Exhibit 99.1 ACI Worldwide, Inc. Reports Financial Results for the Quarter Ended June 30, 2024 Q2 2024 HIGHLIGHTS • Revenue up 16% versus Q2 2023 • Net income of $31 million, up $38 million from Q2 2023 • Adjusted EBITDA up 62% versus Q2 2023 • Cash flow from operating activities of $55 million up 215% versus Q2 2023 • Announced $400 million share repurchase authorization • Repurchased 1.7 million shares for $57 million • Raising guidance range for full-year 2024 Omaha, NE — August 1, 2024 — ACI Worldwide ( ...