Financial Performance - Total revenue for the three months ended September 30, 2023, increased by $56.4 million, or 18%, compared to the same period in 2022[125]. - SaaS and PaaS revenue increased by $15.8 million, or 8%, during the three months ended September 30, 2023, compared to the same period in 2022[128]. - License revenue increased by $36.0 million, or 82%, during the three months ended September 30, 2023, compared to the same period in 2022[131]. - Maintenance revenue increased by $2.8 million, or 6%, during the three months ended September 30, 2023, compared to the same period in 2022[132]. - Services revenue increased by $1.8 million, or 10%, during the three months ended September 30, 2023, compared to the same period in 2022[135]. - Total revenue for the nine months ended September 30, 2023, increased by $5.9 million, or 1%, compared to the same period in 2022[151]. - SaaS and PaaS revenue increased by $28.9 million, or 5%, during the nine months ended September 30, 2023, compared to the same period in 2022[153]. - License revenue decreased by $25.6 million, or 15%, during the nine months ended September 30, 2023, compared to the same period in 2022[154]. - Maintenance revenue increased by $2.3 million, or 2%, during the nine months ended September 30, 2023, compared to the same period in 2022[155]. - Total revenue for the nine months ended September 30, 2023, was $976.0 million, compared to $970.1 million for the same period in 2022[168]. Operating Expenses - Total operating expenses decreased by $2.0 million, or 1%, during the three months ended September 30, 2023, compared to the same period in 2022[136]. - Cost of revenue increased by $5.9 million, or 3%, during the three months ended September 30, 2023, compared to the same period in 2022[138]. - R&D expenses decreased by $2.2 million, or 6%, during the three months ended September 30, 2023, compared to the same period in 2022[140]. - Selling and marketing expense decreased by $3.4 million, or 10%, for the three months ended September 30, 2023, compared to the same period in 2022[142]. - General and administrative expense decreased by $0.7 million, or 2%, for the three months ended September 30, 2023, compared to the same period in 2022[144]. - Total operating expenses increased by $13.4 million, or 1%, for the nine months ended September 30, 2023, compared to the same period in 2022[158]. - Cost of revenue increased by $20.2 million, or 4%, during the nine months ended September 30, 2023, compared to the same period in 2022[159]. - R&D expenses decreased by $8.2 million, or 7%, for the nine months ended September 30, 2023, compared to the same period in 2022[160]. - Selling and marketing expenses decreased by $4.6 million, or 5%, for the nine months ended September 30, 2023, compared to the same period in 2022[161]. - General and administrative expenses increased by $7.9 million, or 9%, for the nine months ended September 30, 2023, compared to the same period in 2022[167]. Income and Profitability - Operating income for the three months ended September 30, 2023, was $61.9 million, representing an 18% margin[1]. - Net income for the three months ended September 30, 2023, was $37.9 million, a 12% increase compared to the same period in 2022[1]. - Net income for the nine months ended September 30, 2023, was a loss of $1.1 million, compared to a net income of $51.9 million for the same period in 2022[150]. Cash Flow and Debt - Cash and cash equivalents as of September 30, 2023, were $139.5 million, with $40.1 million held by foreign subsidiaries[173]. - Operating cash flows were $82.8 million for the nine months ended September 30, 2023, a decrease of $19.2 million compared to the same period in 2022[177]. - The company did not repurchase any shares under the stock repurchase program during the nine months ended September 30, 2023, with a remaining authorization of approximately $200.0 million[175]. - During the first nine months of 2023, the company repaid $53.6 million on Term Loans and $12.5 million of other debt payments[181]. - The company received net proceeds of $24.0 million on the Revolving Credit Facility and $5.3 million from stock options exercise[181]. - As of September 30, 2023, the company had approximately $1.1 billion of debt outstanding, with $668.2 million under the Credit Facility and $400.0 million in 2026 Notes[187]. - The Credit Facility had a floating rate of 7.42% as of September 30, 2023, while the 2026 Notes had a fixed interest rate of 5.750%[187]. - A hypothetical ten percent increase or decrease in effective interest rates would increase or decrease interest income by $0.1 million annually[187]. - Interest expense increased by $5.5 million, or 38%, for the three months ended September 30, 2023, primarily due to higher interest rates[146]. - Interest expense increased by $21.6 million, or 58%, for the nine months ended September 30, 2023, primarily due to higher interest rates[164]. Strategic Initiatives - ACI Worldwide processes $14 trillion in payments daily for over 6,000 organizations globally[105]. - The company's 60-month backlog as of September 30, 2023, is $6.435 billion, with committed backlog at $2.147 billion and renewal backlog at $4.288 billion[122]. - Digital payment transaction volumes are increasing, driven by eCommerce growth and the adoption of real-time payments[108]. - ACI's strategic partnerships with Mastercard, Microsoft, and Mindgate Solutions enhance its position in the real-time payments market[109]. - The company recognizes the shift to cloud technology, optimizing its products on Microsoft Azure to support customer cloud strategies[110]. - ACI aims to grow through acquisitions, seeking candidates that improve solution breadth and access to new markets[115]. - The company sold its corporate online banking solutions for $100 million in September 2022, recognizing a gain of $38.5 million[116]. - The adoption of Request for Payment (RfP) technology is expanding globally, enhancing secure payment requests between consumers and billers[113]. - ACI's focus on omni-commerce aims to provide seamless payment experiences across various channels, increasing customer loyalty and satisfaction[112]. Market Risks - Inflationary pressures have impacted financial performance, particularly in interchange costs associated with the Biller segment[104]. - The company has not entered into any foreign currency hedging transactions, exposing it to market risks related to fluctuations in foreign currency exchange rates[186]. - There were no significant changes to the company's critical accounting policies and estimates during the nine months ended September 30, 2023[185]. - The company used $4.2 million for stock-based compensation awards repurchase for tax withholdings during the first nine months of 2023[181]. - The company had $90.9 million used for common stock repurchase during the first nine months of 2022[181]. - There have been no material changes to the contractual obligations and commercial commitments for the nine months ended September 30, 2023[182].

Financial Data and Key Metrics Changes - Total revenue for Q2 2023 was $323 million, down 2% year-over-year [8][19] - Recurring revenue was $261 million, up 5% when adjusted for foreign exchange impact and divestiture [8] - New ARR bookings for the quarter were $13 million, with trailing 12 months bookings at $91 million, up 2% from the previous year [8] - Adjusted EBITDA for Q2 was $57 million, with a net debt leverage ratio of 2.9 times [19][20] Business Line Data and Key Metrics Changes - Biller segment revenue increased by 5% year-over-year, with adjusted EBITDA up 10% [10][20] - Bank segment revenue was $118 million, with adjusted EBITDA of $52 million [20] - Merchant segment revenue was flat, but EBITDA increased by 23% on a constant currency basis [11][20] Market Data and Key Metrics Changes - The MEASA region showed strong results and a robust pipeline, contributing to new license bookings [9] - The U.S. is expected to see a four-fold increase in real-time payments over the next four years [12] Company Strategy and Development Direction - The company aims to focus on accelerating growth, optimizing its portfolio, and maximizing shareholder value [6][17] - ACI is committed to achieving a revenue growth target of 7% to 9% in 2024 [17][21] - The company is exploring opportunities in real-time payments and AI technologies to enhance its offerings [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving guidance for the second half of the year, citing early contract signings as a de-risking factor [7][21] - The CEO emphasized the importance of focusing investments in areas that deliver results quickly, particularly in the Biller segment [28] Other Important Information - ACI plans to attend several investor conferences to increase engagement with the investment community [4][22] - The company has $200 million remaining on its share repurchase authorization [20] Q&A Session Summary Question: Expectations for Merchant segment growth - Management expects accelerating growth in the Merchant segment, primarily from international markets [25] Question: Potential major shifts in business model - Management does not anticipate major shifts but will focus on concentrating investments in high-potential areas [28] Question: Insights on Biller segment win rates and opportunities - Management noted that while win rates are not publicly disclosed, they believe they are gaining market share and expect more impact from larger deals in the second half of the year [31][32]

Table of contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________ FORM 10-Q ____________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Or For the transition period from to Commission File Number 0-25346 __________ ...

ACI Worldwide, Inc. (NASDAQ:ACIW) Q1 2023 Earnings Conference Call May 4, 2023 8:30 AM ET Company Participants John Kraft - SVP of Finance and Strategy Tom Warsop - Interim President and CEO Scott Behrens - CFO Conference Call Participants Peter Heckmann - D.A. Davidson Will Johnston - Canaccord Genuity Samuel Salvas - Needham & Company Operator Good morning. My name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the ACI Worldwide, Inc. First Quarte ...

Table of contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________ FORM 10-Q ____________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Or For the transition period from to Commission File Number 0-25346 _________ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________ FORM 10-K _________________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-25346 _________________________________ ACI WORLDWIDE, INC. (Exact name of reg ...

Table of contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________ FORM 10-Q ____________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-25346 _____ ...

Table of contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________ FORM 10-Q ____________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-25346 __________ ...

Table of contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________ FORM 10-Q ____________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-25346 _________ ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________ FORM 10-K _________________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-25346 _________________________________ ACI WORLDWIDE, INC. ...