c04430e66f054650806ca8c813ffe9d2ea3f26083dbd7342b0778f8e9199301f

The jump in cash in Q1 2024 was primarily driven by **strong cash flow from operating activities**—with the company generating about **$123 million** in cash flow, representing a significant increase over the prior year—and a notable **debt reduction of $34 million**, both of which substantially boosted cash levels. Additionally, while share repurchases and an expanded revolving credit facility played roles in the overall cash management strategy, it was the robust operating performance that was the main catalyst behind the cash increase.  **[0000935036-24-000018_aciw-20240331.htm:2]** **[0000935036-24-000016_aciw-20240430ex_991.htm:3]** **[0000935036-24-000016_aciw-20240430ex_991.htm:0]** **[ACIW_3381474_3]** 

What drove the jump in cash in Q1 2024?

ACI Worldwide's total assets were notably lower in Q3 2024 primarily due to significant reductions in several key asset areas. **Settlement assets** experienced the largest decline, dropping from **$723,039 thousand** at the end of 2023 to **$428,479 thousand** in Q3 2024, which greatly contributed to the overall decrease. Additionally, **receivables** (net of allowances) fell from **$452,337 thousand** to **$424,518 thousand**, and **other current assets** decreased from **$35,551 thousand** to **$22,865 thousand**. Reductions were also seen in **noncurrent assets** like **software, net** (from **$108,418 thousand** to **$90,313 thousand**) and **intangible assets, net** (from **$195,646 thousand** to **$172,310 thousand**). These declines, partially offset by a slight uptick in **cash and cash equivalents**, collectively led to the notably lower total assets in Q3 2024.  **[0000935036-24-000038_aciw-20240930.htm:2]** **[0000935036-24-000036_aciw-20241107_exx991.htm:3]** 

Why were total assets notably lower in Q3 2024?

The near **50% drop** in the current portion of long-term debt is primarily due to the **scheduled repayments of term loans** during Q1 2024. This repayment reduced the current debt from **$74,405 thousand as of December 31, 2023**, to **$34,875 thousand as of March 31, 2024**, and was accompanied by an overall decrease in the total term loans outstanding from **$519,698 thousand** to **$490,625 thousand** during the same period.  **[0000935036-24-000016_aciw-20240430ex_991.htm:3]** **[0000935036-24-000018_aciw-20240331.htm:2]** 

What explains the near 50% drop in current debt in Q1 2024?

3e092c7dd70d7d604981873b8e28196ff599b358ac08ea660e32d20fcf7f147f

The **surge in Q3 2024 total revenues** was primarily driven by several factors. **License revenue nearly doubled**, increasing by **$77.8 million (98%)**, which was a major contributor. Additionally, **Software as a Service (SaaS) and Platform as a Service (PaaS) revenues grew by $12.0 million (6%)**, and **services revenue increased by $3.4 million (17%)**, reflecting strong recurring revenue and rising demand for professional services. The growth was also reinforced by impressive performance across key segments—with the **bank segment increasing by 43%** (notably due to real-time payments and issuing/acquiring solutions), the **merchant segment growing by 38%** from license-based renewals, and modest growth in the biller segment. Strategic initiatives that accelerated renewals and new contract signings, as well as robust geographic contributions from regions outside the United States, further bolstered total revenues in Q3 2024.  **[0000935036-24-000036_aciw-20241107_exx991.htm:0]** **[0000935036-24-000038_aciw-20240930.htm:30]** **[0000935036-24-000036_aciw-20241107_exx991.htm:4]** **[0000935036-24-000036_aciw-20241107_exx991.htm:0]** **[ACIW_3406630_1]** **[ACIW_3406630_3]** **[0000935036-24-000038_aciw-20240930.htm:20]** 

Why did Total revenues surge in Q3 2024?

The spike in Q3 2024 operating income was driven by **significant revenue growth** and **effective cost management**. Total revenue rose by **24%** year-over-year, with license revenue nearly **doubling (98% increase)**, complemented by **17% growth in services revenue** and a **6% increase in SaaS/PaaS revenue**. Additionally, controlled increases in operating expenses allowed for improved margins, further enhancing operating income.  **[0000935036-24-000038_aciw-20240930.htm:30]** **[0000935036-24-000038_aciw-20240930.htm:3]** 

What drove the spike in Operating Income in Q3 2024?

The boost in **Q3 2024 Net Income** was primarily driven by a **24% increase in total revenue**, which was powered by strong performance across all segments. In particular, the **Bank segment** saw a **43% increase** in revenue, further aided by a **72% rise in real-time payments**. Additionally, **operating income** almost doubled from **$61.9 million** to **$122.6 million**, supported by efficient **cost management** that also led to a **61% growth in adjusted EBITDA**. Other contributing elements included a **slight reduction in interest expense** and the tax impact reflective of higher pre-tax income, though the revenue and operating gains more than offset the increased tax expense.  **[0000935036-24-000036_aciw-20241107_exx991.htm:0]** **[ACIW_3406630_3]** **[ACIW_3406630_1]** **[0000935036-24-000038_aciw-20240930.htm:3]** 

What factors boosted Net Income in Q3 2024?

ACI Worldwide’s EPS jumped to **0.77** in Q3 2024 primarily due to a combination of factors. The company experienced a substantial increase in **net income**—up **115%** year-over-year—driven by a **24% revenue increase** and improved operational efficiency, which significantly boosted profitability. Additionally, the firm’s **share repurchase program** resulted in a lower **weighted average shares outstanding**, further enhancing the EPS. These elements, along with strengthened margins in high-performing segments like real‑time payments and license-based renewals, collectively contributed to the EPS jump.  **[0000935036-24-000036_aciw-20241107_exx991.htm:0]** **[ACIW_3406630_3]** 

Why did EPS jump to 0.77 in Q3 2024?

69e510e0172606ab8607a7f46c511980b12313d9e4b8ce22185d37c9f27f522f

3194e632690bfdb2cfa39b58014a8ca55a305d24855cd5ba21c2091b44dbfc73

Software as a service and platform as a service revenue (USD, thousands)

License revenue (USD, thousands)

Maintenance revenue (USD, thousands)

Services revenue (USD, thousands)

Total revenues (USD, thousands)

Cost of revenue (USD, thousands)

Research and development expense (USD, thousands)

Selling and marketing expense (USD, thousands)

General and administrative expense (USD, thousands)

Depreciation and amortization expense (USD, thousands)

Total operating expenses (USD, thousands)

Operating income (USD, thousands)

Interest expense (USD, thousands)

Interest income (USD, thousands)

Other, net (USD, thousands)

Total other income (expense) (USD, thousands)

Income (loss) before income taxes (USD, thousands)

Income tax expense (benefit) (USD, thousands)

Net income (loss) (USD, thousands)

Basic income (loss) per common share (USD)

Diluted income (loss) per common share (USD)

Weighted average common shares outstanding Basic (thousands)

Weighted average common shares outstanding Diluted (thousands)

cdf74d1d410c6682e553aa5aad1f50c257fbee5a78492d33383cee2a79ae0379

eda50ce0df866ebdf401a7a7a4ca0ed33fc17a0290a86aa4667db330596b0ef1

4158d9ddda59b8e64b3404685e7e3f5f17dd2723e4e79b133b812dccc5a3defd

6ed21803afe754d2a5434496e2512bae0843e0d569158abaa3ee5f91ec14e928

abfa73170f00d15d9d4ccc01b8fa31da129c8170447834ca02368260715fcf02

United States

Other

- Americas - Other

- EMEA

- Asia Pacific

Total Revenue

8a2a43c819d32895b8850c6470b1edbcd650d6383f03f400e71912270f1f5a37

ACI WORLDWIDE (ACIW)

Financials