Core Insights - ACI Worldwide has been selected by Nepal Clearing House (NCHL) to implement the National Payment Switch (NPS) and the NEPALPAY card scheme, enhancing domestic payment capabilities in Nepal [1][2] - The NPS initiative aims to create a comprehensive payment ecosystem that supports both card and non-card transactions, with a rollout expected in the last quarter of 2024 [2][3] - The transition to digital payments in Nepal has significantly increased financial inclusion, with the percentage of adults using formal financial services rising from 61% in 2014 to 90% in 2022 [3] Company Overview - ACI Worldwide is a global leader in real-time payments software, providing scalable solutions for digital payments and financial services [5][8] - The ACI Enterprise Payments Platform serves as an end-to-end payments hub, supporting various payment schemes across six continents and reaching approximately 1.8 billion people [5] Industry Context - The establishment of the NPS and NEPALPAY is seen as a transformative step for Nepal's payment landscape, promoting secure and efficient payment methods [2][4] - NCHL plays a crucial role in advancing digital payments in Nepal, aiming to improve the efficiency and productivity of banking and financial institutions through technology-oriented services [6][7]

Core Insights - ACI Worldwide has successfully migrated Co-op's full stack of payments and fraud prevention technology to its multi-tenant cloud platform hosted on Microsoft Azure, enhancing operational efficiency and security [1][2] - The partnership with Microsoft has expanded ACI's cloud payment offerings, allowing for improved scalability and data protection [1][2] - Co-op aims to leverage ACI's technology to deliver seamless and secure payment experiences to its customers, emphasizing the importance of data security [2] Company Overview - ACI Worldwide is a global leader in real-time payments software, providing solutions for digital payments, omni-commerce payments, bill payments, and fraud management [3] - Co-op is one of the largest consumer co-operatives globally, operating over 2,400 food stores and employing nearly 60,000 people, with an annual turnover exceeding £11 billion [4]

Earnings Presentation Q3 2023 Private Securities Litigation Reform Act of 1995 Safe Harbor for Forward-Looking Statements ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2023 was $363 million, representing a 21% year-over-year increase, while recurring revenue was $263 million, up 10% after adjusting for foreign exchange and divestiture impacts [4][11] - New ARR bookings for the quarter were $21 million, with trailing 12-month bookings at $85 million, and total bookings increased by 20% [6] - Adjusted EBITDA for Q3 was $103 million, more than double the amount generated in Q3 last year [12] Business Line Data and Key Metrics Changes - Bank segment revenue reached $156 million, up 42%, with adjusted EBITDA of $91 million, also up 100% year-over-year [12] - Biller segment revenue grew 11% to $171 million, with adjusted EBITDA increasing by 48% [13] - Merchant segment revenue and EBITDA were flat compared to Q3 last year, but growth is expected in Q4 and into 2024 [8][13] Market Data and Key Metrics Changes - The banking sector showed strong demand, with recurring revenue growth of 13% year-over-year [6][12] - The anti-fraud solutions segment experienced 12% growth, driven by AI-enhanced fraud prevention solutions [9] Company Strategy and Development Direction - The company is focusing on modernizing core solutions and expanding public cloud delivery options, targeting mid-tier financial institutions [7][27] - Investments are being made in intelligent payments orchestration and real-time payments, with a new CTO appointed to lead these initiatives [10][27] - The company aims to balance capital allocation between debt reduction and share repurchases, with $200 million remaining on its share repurchase authorization [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 7% to 9% revenue growth in 2024, supported by strong recurring revenue and visibility on license renewals [15][19] - The company is optimistic about the performance of its Biller segment, attributing recent growth to successful interchange improvement initiatives [22][34] Other Important Information - The company ended the quarter with $140 million in cash and a net debt leverage ratio of 2.4 times, down from 2.9 times at the end of Q2 [13][14] - The company is focused on delivering shareholder value and plans to share more insights during the next Analyst Day in March 2024 [16] Q&A Session Summary Question: Dynamics supporting revenue growth in 2024 - Management highlighted that the underlying recurring revenue business is up 8% year-to-date, with stronger growth in the second half, providing a stable base for next year's revenue [19][20] Question: Sustainability of Biller's revenue growth - Management indicated that the recent growth in the Biller segment is sustainable due to ongoing initiatives and improvements in interchange pricing [22] Question: Immediate opportunities in the bank segment - Management discussed targeting mid-tier financial institutions, which are increasingly interested in SaaS and cloud delivery models [27] Question: Performance of real-time payment business - Management noted growth in real-time payments across regions, with a significant pipeline of financial institutions preparing for FedNow transactions [30] Question: Biller's growth drivers and future performance - Management clarified that while recent growth was strong, future growth is expected to be in the upper single digits, driven by existing contracts and new customer ramp-ups [34] Question: Investment focus across segments - Management confirmed continued investment in all segments, with a short-term focus on banking due to its growth potential, while still supporting Biller and Merchant segments [42]

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 ...

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=ITEM%201.%20Financial%20Statements) Presents ACI Worldwide's unaudited Q1 2023 consolidated financial statements, detailing financial position, performance, and cash flows [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$3.01 billion** from **$3.21 billion**, with liabilities and equity also declining as of March 31, 2023 Condensed Consolidated Balance Sheets (in thousands) | Account | March 31, 2023 (in thousands) | December 31, 2022 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $954,036 | $1,114,805 | | **Total Assets** | **$3,006,801** | **$3,209,895** | | **Total Current Liabilities** | $700,910 | $858,842 | | **Total Liabilities** | **$1,839,174** | **$2,016,708** | | **Total Stockholders' Equity** | **$1,167,627** | **$1,193,187** | | **Total Liabilities and Stockholders' Equity** | **$3,006,801** | **$3,209,895** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2023 saw a **net loss of $32.3 million** and an operating loss, primarily due to a **10% revenue decrease** and higher operating expenses Statements of Operations Highlights (in thousands, except per share data) | Metric | Q1 2023 (in thousands) | Q1 2022 (in thousands) | | :--- | :--- | :--- | | **Total Revenues** | $289,676 | $323,080 | | *License Revenue* | $18,331 | $60,285 | | *SaaS and PaaS Revenue* | $204,930 | $194,562 | | **Operating Income (Loss)** | $(24,352) | $27,666 | | **Net Income (Loss)** | **$(32,308)** | **$15,490** | | **Diluted EPS** | **$(0.30)** | **$0.13** | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) Q1 2023 resulted in a **comprehensive loss of $28.7 million**, primarily driven by the net loss, partially offset by foreign currency translation adjustments Comprehensive Income (Loss) (in thousands) | Metric | Q1 2023 (in thousands) | Q1 2022 (in thousands) | | :--- | :--- | :--- | | Net Income (Loss) | $(32,308) | $15,490 | | Foreign currency translation adjustments | $3,618 | $(2,100) | | **Comprehensive Income (Loss)** | **$(28,690)** | **$13,390** | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Stockholders' equity decreased to **$1.17 billion** by March 31, 2023, primarily due to the net loss, partially offset by stock-based compensation - Total stockholders' equity decreased by **$25.6 million** in Q1 2023, from **$1,193.2 million** to **$1,167.6 million**[16](index=16&type=chunk) - Key changes in Q1 2023 included a **net loss of $32.3 million** and **stock-based compensation of $5.3 million**[16](index=16&type=chunk) - In the comparable period of Q1 2022, the company repurchased **$37.9 million** of common stock[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities increased to **$40.1 million** in Q1 2023, leading to a **$13.6 million** increase in cash and cash equivalents for the quarter Cash Flow Summary (in thousands) | Activity | Q1 2023 (in thousands) | Q1 2022 (in thousands) | | :--- | :--- | :--- | | **Net cash from operating activities** | **$40,068** | **$28,874** | | Net cash from investing activities | $(8,739) | $(8,487) | | Net cash from financing activities | $(20,326) | $(25,998) | | Effect of exchange rate fluctuations | $2,557 | $(2,464) | | **Net increase (decrease) in cash** | **$13,560** | **$(8,075)** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes explain accounting policies, debt structure, segment performance, and legal contingencies impacting the financial statements - As of March 31, 2023, the company had a goodwill balance of **$1.2 billion**, allocated to Banks (**$671.7 million**), Merchants (**$137.3 million**), and Billers (**$417.0 million**)[32](index=32&type=chunk) - Total debt outstanding as of March 31, 2023, was approximately **$1.1 billion**, consisting of a Revolving Credit Facility, Term Loans, and Senior Notes[44](index=44&type=chunk) - The company is involved in legal proceedings and investigations following an inadvertent ACH file transmission in April 2021, with a proposed settlement fund of **$5.0 million** for class action lawsuits, subject to court approval[90](index=90&type=chunk)[91](index=91&type=chunk) - Revenue allocated to remaining performance obligations was **$651.4 million** as of March 31, 2023, with about **50%** expected to be recognized in the next 12 months[41](index=41&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2023 financial results, highlighting a **10% revenue decrease** and net loss, along with key business trends, segment performance, and liquidity [Overview and Key Trends](index=23&type=section&id=Overview%20and%20Key%20Trends) ACI Worldwide's strategy is shaped by key trends in digital payments, cloud adoption, fraud prevention, and omni-commerce - Key operational trends shaping the company's strategy include: - Increasing **digital payment transaction volumes** - Adoption of **real-time payments**, with ACI positioned as a leader through partnerships with Mastercard and Microsoft - Industry transition to **public and private cloud technology** - Growing demand for advanced **fraud prevention** and **payments intelligence** - Rise of **omni-commerce experiences** across multiple channels - Emergence of **Request for Payment (RfP) technology**[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) [Backlog](index=25&type=section&id=Backlog) The 60-month backlog increased to **$6.37 billion** as of March 31, 2023, composed of committed contracts and assumed renewals 60-Month Backlog by Segment (in millions) | Segment | March 31, 2023 (in millions) | December 31, 2022 (in millions) | | :--- | :--- | :--- | | Banks | $2,154 | $2,095 | | Merchants | $821 | $810 | | Billers | $3,395 | $3,390 | | **Total** | **$6,370** | **$6,295** | 60-Month Backlog by Type (in millions) | Type | March 31, 2023 (in millions) | December 31, 2022 (in millions) | | :--- | :--- | :--- | | Committed | $2,266 | $2,338 | | Renewal | $4,104 | $3,957 | | **Total** | **$6,370** | **$6,295** | [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Q1 2023 total revenue fell **10%** to **$289.7 million**, resulting in an operating loss, primarily due to a sharp decline in license revenue Q1 2023 vs Q1 2022 Performance (in thousands) | Metric | Q1 2023 (in thousands) | Q1 2022 (in thousands) | Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$289,676** | **$323,080** | **$(33,404)** | **(10)%** | | License Revenue | $18,331 | $60,285 | $(41,954) | (70)% | | SaaS & PaaS Revenue | $204,930 | $194,562 | $10,368 | 5% | | **Total Operating Expenses** | **$314,028** | **$295,414** | **$18,614** | **6%** | | **Operating Income (Loss)** | **$(24,352)** | **$27,666** | **$(52,018)** | **(188)%** | | **Net Income (Loss)** | **$(32,308)** | **$15,490** | **$(47,798)** | **(309)%** | - The divestiture of the corporate online banking solutions business resulted in a **$12.4 million** decrease in total revenue for Q1 2023[119](index=119&type=chunk) - Weakening foreign currencies against the U.S. dollar led to a **$4.9 million** decrease in total revenue[119](index=119&type=chunk) [Segment Results](index=31&type=section&id=Segment%20Results) In Q1 2023, Banks and Merchants segments saw revenue and Adjusted EBITDA declines, while the Billers segment grew due to higher transaction volumes Segment Revenue (in thousands) | Segment | Q1 2023 (in thousands) | Q1 2022 (in thousands) | | :--- | :--- | :--- | | Banks | $88,040 | $132,198 | | Merchants | $34,781 | $41,002 | | Billers | $166,855 | $149,880 | | **Total** | **$289,676** | **$323,080** | Segment Adjusted EBITDA (in thousands) | Segment | Q1 2023 (in thousands) | Q1 2022 (in thousands) | | :--- | :--- | :--- | | Banks | $24,681 | $64,714 | | Merchants | $6,544 | $14,713 | | Billers | $29,641 | $26,357 | [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2023, total liquidity was **$530.9 million**, comprising cash and available revolving credit, with no share repurchases in Q1 2023 Available Liquidity (in thousands) | Component | March 31, 2023 (in thousands) | December 31, 2022 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $142,412 | $124,981 | | Availability under revolving credit facility | $388,440 | $393,500 | | **Total liquidity** | **$530,852** | **$518,481** | - The company did not repurchase any shares under its program in Q1 2023. As of March 31, 2023, **$200.0 million** remained authorized for future repurchases[154](index=154&type=chunk)[71](index=71&type=chunk) - Cash flow from operating activities increased to **$40.1 million** in Q1 2023 from **$28.9 million** in Q1 2022, primarily due to better customer receipt collections[157](index=157&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency fluctuations and interest rate changes, with a significant portion of its debt at floating rates - The company is exposed to **foreign currency risk** as it conducts business globally, with the U.S. dollar being the primary currency for revenue contracts[165](index=165&type=chunk) - The company has **$1.1 billion** in debt, with **$688.1 million** under a floating-rate Credit Facility; a **10%** change in effective interest rates would alter interest expense by about **$4.7 million** annually[166](index=166&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of March 31, 2023, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2023[167](index=167&type=chunk) - No material changes were made to the internal control over financial reporting during the first quarter of 2023[168](index=168&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=35&type=section&id=ITEM%201.%20Legal%20Proceedings) The company faces class action lawsuits and regulatory investigations related to an April 2021 ACH file transmission, with a proposed settlement fund - The company is a defendant in seven class action lawsuits following an inadvertent ACH file transmission in April 2021[91](index=91&type=chunk) - A settlement agreement, subject to court approval, has been reached to establish a **$5.0 million** fund for class members[91](index=91&type=chunk) - The company is also under investigation by the U.S. Consumer Financial Protection Bureau (CFPB) and state authorities regarding the same incident[92](index=92&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=ITEM%201A.%20Risk%20Factors) There have been no material changes to the risk factors disclosed in the company's Form 10-K for the fiscal year ended December 31, 2022 - No material changes to risk factors were reported for the quarter[170](index=170&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase shares in Q1 2023 but withheld shares for RSU tax obligations, with **$200.0 million** remaining authorized for repurchase - No shares were repurchased under the publicly announced program during Q1 2023[173](index=173&type=chunk) - The company withheld **114,492 shares** to satisfy tax withholding obligations for employees on vested RSUs[173](index=173&type=chunk) - On February 24, 2023, the board authorized a new **$200.0 million** stock repurchase program, which is the amount remaining available as of March 31, 2023[174](index=174&type=chunk) [Item 6. Exhibits](index=37&type=section&id=ITEM%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate documents, credit facility agreements, and officer certifications - Key exhibits filed include an Extension Agreement for the credit facility dated April 28, 2023, and CEO/CFO certifications[178](index=178&type=chunk)

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 ...