ACI Worldwide(ACIW) - 2024 Q3 - Quarterly Report

Financial Performance - Total revenues for the three months ended September 30, 2024, increased to $451.8 million, up 24.4$363.0 million in the same period of 2023[9] - Net income for the three months ended September 30, 2024, was $81.4 million, compared to$37.9 million for the same period in 2023, representing a 115.5% increase[9] - Operating income for the nine months ended September 30, 2024, was $185.8 million, significantly higher than$48.1 million for the same period in 2023[9] - Comprehensive income for the three months ended September 30, 2024, was $90.5 million, compared to$31.6 million for the same period in 2023[12] - For the nine months ended September 30, 2024, the net income was $104,563,000, compared to a net loss of$1,107,000 for the same period in 2023[21] - The Company reported income before income taxes of $107,278 thousand, significantly up from$46,663 thousand in the same quarter of the previous year[86] - The Company’s total revenue for the nine months ended September 30, 2024, was $1,141,250 thousand, compared to$976,016 thousand for the same period in 2023, marking a 16.9% increase[86] Cash and Liquidity - Cash and cash equivalents as of September 30, 2024, were $177.9 million, an increase from$164.2 million as of December 31, 2023[8] - Cash and cash equivalents, including settlement deposits, increased to $268,670,000 as of September 30, 2024, up from$223,534,000 in 2023[21] - Total liquidity increased to $644.96 million as of September 30, 2024, primarily due to a$100.0 million increase in the maximum amount available under the revolving credit facility[182] - The company utilized $127.7 million for stock repurchases during the first nine months of 2024, compared to$4.2 million in the same period of 2023, indicating a substantial increase in capital return to shareholders[193] Assets and Liabilities - Total assets decreased to $3.1 billion as of September 30, 2024, down from$3.4 billion as of December 31, 2023[8] - Total liabilities decreased to $1.8 billion as of September 30, 2024, compared to$2.1 billion as of December 31, 2023[8] - The company had total other current liabilities of $75,036,000 as of September 30, 2024, down from$82,244,000 at the end of 2023[25] - The company experienced a decrease in accrued interest liabilities from $9,172,000 to$3,124,000 as of September 30, 2024[25] Revenue Segmentation - Revenue from the Banks segment reached $222,031 thousand, up 42.4$155,684 thousand year-over-year[86] - The Merchants segment generated $50,120 thousand in revenue, a 38.2$36,267 thousand in the prior year[86] - Billers segment revenue was $179,601 thousand, a 5.3$171,064 thousand year-over-year[86] - SaaS and PaaS revenue increased by $12.0 million, or 6$77.8 million, or 98%, during the three months ended September 30, 2024, due to license renewal timing and new license events[137] - Maintenance revenue decreased by $4.4 million, or 8$37.7 million, up from $33.7 million in the same period of 2023[9] - Stock-based compensation expense increased to$30,165,000 for the nine months ended September 30, 2024, compared to $17,537,000 in 2023[21] - Total operating expenses for the three months ended September 30, 2024, increased by$28.1 million, or 9%, compared to the same period in 2023[142] - General and administrative expenses increased by $4.1 million, or 14$128,669,000, during the nine months ended September 30, 2024[21] - The company repurchased 203,317 shares of common stock, totaling $7,976 thousand, as part of its capital management strategy[14] - The company reported a total intrinsic value of stock options exercised of$2.4 million during the nine months ended September 30, 2024, compared to $0.9 million in the same period of 2023[63] Market Presence and Strategy - ACI Worldwide processes$14 trillion in payments daily for over 6,000 organizations, highlighting its significant market presence[111] - The Company is focusing on expanding its international market presence while maintaining growth in the U.S. market[113] - ACI is investing in cloud technology to support customers' transitions, enhancing scalability and operational efficiency[116] - The adoption of real-time payments is accelerating, with ACI positioned as a leader in this space through strategic partnerships[115] - The Company is actively seeking acquisitions to enhance its solution offerings and access new markets, aiming for strategic and financially accretive candidates[122]