ACI Worldwide(ACIW) - 2024 Q4 - Annual Results

Financial Performance - Total revenue for 2024 was $1.594 billion, representing a 10% increase from 2023[4] - Net income for 2024 was $203 million, up 67% compared to 2023[4] - Adjusted EBITDA for 2024 was $466 million, an 18% increase from 2023[4] - Cash flow from operating activities in 2024 was $359 million, up 113% from 2023[4] - Total revenues for 2024 reached $1,594.3 million, a 9.8% increase from $1,452.6 million in 2023[20] - Net income for 2024 was $203.1 million, compared to $121.5 million in 2023, representing a 67.2% increase[20] - Adjusted EBITDA for 2024 was $465.7 million, up from $395.4 million in 2023, reflecting a 17.7% growth[23] - Cash flows from operating activities for 2024 were $358.7 million, significantly higher than $168.5 million in 2023, marking an increase of 112.5%[22] - GAAP net income for the year 2024 was $203.1 million, resulting in an EPS of $1.91, a significant increase from $121.5 million and an EPS of $1.12 in 2023[25] - Total adjustments for the year 2024 were $77.1 million, leading to an adjusted EPS of $2.64, compared to $81.0 million in adjustments and an adjusted EPS of $1.86 in 2023[25] Segment Performance - The bank segment revenue increased by 14% and adjusted EBITDA grew by 20% compared to 2023[6] - The merchant segment revenue grew by 10% and adjusted EBITDA increased by 57% compared to 2023[6] - Revenue from the Banks segment for 2024 was $701.9 million, up from $616.1 million in 2023, a growth of 13.9%[23] - The company reported a total of $898.0 million in SaaS and PaaS fees for the year 2024, an increase from $849.1 million in 2023[25] Future Outlook - For 2025, the company expects revenue growth in the range of 7% to 9%, translating to $1.685 billion to $1.715 billion[8] - The company anticipates adjusted EBITDA for 2025 to be in the range of $480 million to $495 million[8] Cash and Debt Management - The company ended 2024 with $216 million in cash and a debt balance of $933 million, resulting in a net debt leverage ratio of 1.5x adjusted EBITDA[7] - Total cash and cash equivalents at the end of 2024 were $265.0 million, an increase from $238.8 million at the end of 2023[22] Shareholder Actions - ACI repurchased approximately 3.9 million shares for $128 million in capital during 2024[7] Operating Metrics - Operating income decreased to $308.1 million in 2024 from $220.4 million in 2023, a decline of 39.7%[20] - The company reported a net adjusted EBITDA margin of 41% for 2024, compared to 38% in 2023[23] Revenue Streams - The company experienced a decrease in license revenue to $412.3 million in 2024 from $321.2 million in 2023, a decline of 28.4%[20] - Recurring revenue for Q4 2024 was $270.2 million, slightly down from $274.8 million in Q4 2023, while total recurring revenue for the year increased to $1,088.7 million from $1,054.2 million[25] - Annual recurring revenue (ARR) bookings for Q4 2024 were $35.2 million, up from $28.8 million in Q4 2023, indicating a growth of approximately 22.2%[25] - License and services bookings for Q4 2024 reached $115.1 million, compared to $106.5 million in Q4 2023, reflecting a growth of about 4.9%[25] Non-Cash Expenses - Non-cash stock-based compensation for Q4 2024 was $8.8 million, up from $5.3 million in Q4 2023, indicating a rise of approximately 66.0%[24] - Amortization of acquisition-related intangibles for the year 2024 was $23.3 million, slightly down from $25.7 million in 2023[25]