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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________
FORM 8-K
___________________________
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 27, 2025

Commission File Number 0-25346

ACI WORLDWIDE, INC.
(Exact name of registrant as specified in its charter)
Delaware47-0772104
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
6060 Coventry DriveElkhorn, Nebraska

68022
(Address of Principal Executive Offices)(Zip Code)
(402) 390-7600
(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.005 par valueACIWNasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02. Results of Operation and Financial Condition.
On February 27, 2025, the Company issued a press release announcing its financial results for the three months and year ended December 31, 2024. A copy of this press release is attached hereto as Exhibit 99.1. Following the publication of the earnings release, the Company hosted an earnings call in which its financial results were discussed. The investor presentation materials used for the call are attached as Exhibit 99.2.

The foregoing information (including Exhibits 99.1 and 99.2) is being furnished under “Item 2.02 – Results of Operations and Financial Condition” and “Item 7.01 – Regulation FD Disclosure.” Such information (including Exhibits 99.1 and 99.2) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

The filing of this report and the furnishing of this information pursuant to Items 2.02 and 7.01 do not mean that such information is material or that disclosure of such information is required.

Item 7.01. Regulation FD Disclosure.
See “Item 2.02 – Results of Operation and Financial Condition” above.

Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Press Release dated February 27, 2025
Investor presentation materials dated February 27, 2025
104Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. 
ACI WORLDWIDE, INC.
(Registrant)
Date: February 27, 2025
By:
/s/ SCOTT W. BEHRENS
Scott W. Behrens
Executive Vice President, Chief Financial Officer and Chief Accounting Officer (Principal Financial Officer)


Exhibit 99.1
imagea.jpg




ACI Worldwide, Inc. Reports Financial Results for the
Quarter and Full Year Ended December 31, 2024


2024 HIGHLIGHTS
•Total revenue of $1.594 billion grew 10%
•Net income of $203 million grew 67%
•Total adjusted EBITDA of $466 million grew 18%
•Cash flow from operating activities of $359 million grew 113%
•Expect 7-9% revenue growth in 2025

Omaha, NE — February 27, 2025 — ACI Worldwide (NASDAQ: ACIW), an original innovator in global payments technology, announced financial results today for the quarter and full year ended December 31, 2024.

"We are proud to have finished 2024 with stronger results than we expected across our key financial metrics, and that strength has continued as we start 2025. In 2024, we grew revenue 10%, increased adjusted EBITDA margin by more than 300 basis points to 41%, and more than doubled our cash flow to over $350 million,” said Thomas Warsop, president and CEO of ACI Worldwide. “ACI is executing on the strategy we launched in 2024 to become the global leader in Intelligent Payments Orchestration.”

“Building on our momentum and track record of success, we are entering 2025 from a position of strength, both financially and operationally,” Warsop added. “We are confident in our ability to continue driving strong financial performance and focused on increasing shareholder value.”

FINANCIAL SUMMARY
Full-year 2024 total revenue was $1.594 billion, up 10% from 2023. Net income was $203 million in 2024, up 67% from 2023. Total adjusted EBITDA in 2024 was $466 million, up 18% from 2023. Cash flow from operating activities in 2024 was $359 million, up 113% compared to 2023.
•Bank segment revenue increased 14% and Bank segment adjusted EBITDA grew 20% versus 2023.
•Merchant segment revenue grew 10% and Merchant segment adjusted EBITDA increased 57% versus 2023.
•Biller segment revenue increased 6% and Biller segment adjusted EBITDA decreased 8% versus 2023 due to certain one-time margin benefits that did not recur in 2024.



ACI ended 2024 with $216 million in cash on hand and a debt balance of $933 million, which represents a net debt leverage ratio of 1.5x adjusted EBITDA. In 2024, the company repurchased approximately 3.9 million shares for $128 million in capital. At year end 2024 the company had $373 million remaining available on the share repurchase authorization.
Q1 AND FULL YEAR 2025 GUIDANCE
For the full year of 2025, we expect revenue growth to be in the 7% to 9% range on a constant currency basis, or in the range of $1.685 billion to $1.715 billion. We expect adjusted EBITDA to be in the range of $480 million to $495 million. For Q1 2025, we expect revenue to be between $360 million and $370 million and adjusted EBITDA of $70 million to $80 million.







CONFERENCE CALL TO DISCUSS FINANCIAL RESULTS
Today, management will host a conference call at 8:30 a.m. ET to discuss these results. Interested persons may access a real-time audio broadcast of the teleconference at http://investor.aciworldwide.com/ or use the following number for dial-in participation: toll-free 1 (888) 660-6377 and conference code 3153574.
About ACI Worldwide
ACI Worldwide, an original innovator in global payments technology, delivers transformative software solutions that power intelligent payments orchestration in real time so banks, billers, and merchants can drive growth, while continuously modernizing their payment infrastructures, simply and securely. With nearly 50 years of trusted payments expertise, we combine our global footprint with a local presence to offer enhanced payment experiences to stay ahead of constantly changing payment challenges and opportunities.
© Copyright ACI Worldwide, Inc. 2025.
ACI, ACI Worldwide, ACI Payments, Inc., ACI Pay, Speedpay and all ACI product/solution names are trademarks or registered trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in the United States, other countries or both. Other parties' trademarks referenced are the property of their respective owners.
For more information contact:

Investor Relations
John Kraft
SVP, Head of Strategy and Finance
305-894-2223 / john.kraft@aciworldwide.com



To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude significant transaction-related expenses, as well as other significant non-cash expenses such as depreciation, amortization, and stock-based compensation, that we believe are helpful in understanding our past financial performance and our future results. The presentation of these non-GAAP financial measures should be considered in addition to our GAAP results and are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management generally compensates for limitations in the use of non-GAAP financial measures by relying on comparable GAAP financial measures and providing investors with a reconciliation of non-GAAP financial measures only in addition to and in conjunction with results presented in accordance with GAAP.

We believe that these non-GAAP financial measures reflect an additional way to view aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. Certain non-GAAP measures include:

•Adjusted EBITDA: net income (loss) plus income tax expense (benefit), net interest income (expense), net other income (expense), depreciation, amortization and stock-based compensation, as well as significant transaction-related expenses. Adjusted EBITDA should be considered in addition to, rather than as a substitute for, net income (loss).

•Net Adjusted EBITDA Margin: Adjusted EBITDA divided by revenue net of pass-through interchange revenue. Net Adjusted EBITDA Margin should be considered in addition to, rather than as a substitute for, net income (loss).

•Diluted EPS adjusted for non-cash and significant transaction related items: diluted EPS plus tax effected significant transaction related items, amortization of acquired intangibles and software, and non-cash stock-based compensation. Diluted EPS adjusted for non-cash and significant transaction related items should be considered in addition to, rather than as a substitute for, diluted EPS.

•Recurring Revenue: revenue from software as a service and platform as a service fees and maintenance fees. Recurring revenue should be considered in addition to, rather than as a substitute for, total revenue.

•ARR: New annual recurring revenue expected to be generated from new accounts, new applications, and add-on sales bookings contracts signed in the period.



FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. Generally, forward-looking statements do not relate strictly to historical or current facts and may include words or phrases such as “believes,” “will,” “expects,” “anticipates,” “intends,” and words and phrases of similar impact. The forward-looking statements are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements in this press release include, but are not limited to: (i) our strength continuing as we start 2025, (ii) our execution on the strategy we launched in 2024 to become the global leader in Intelligent Payments Orchestration, (iii) building on our momentum and track record of success, we are entering 2025 from a position of strength, both financially and operationally, (iv) we are confident in our ability to continue driving strong financial performance and focused on increasing shareholder value, and (v) Q1 2025 and full-year 2025 revenue and adjusted EBITDA financial guidance.
All of the foregoing forward-looking statements are expressly qualified by the risk factors discussed in our filings with the Securities and Exchange Commission. Such factors include, but are not limited to, increased competition, business interruptions, cybersecurity incidents or failure of our information technology and communication systems, security breaches, our ability to attract and retain senior management personnel and skilled technical employees, future acquisitions, strategic partnerships and investments, divestitures and other restructuring activities, implementation and success of our strategy, impact if we convert some or all on-premise licenses from fixed-term to subscription model, anti-takeover provisions, exposure to credit or operating risks arising from certain payment funding methods, loss caused by theft or fraud, customer reluctance to switch to a new vendor, our ability to adequately defend our intellectual property, litigation, consent orders and other compliance agreements, our offshore software development activities, risks from operating internationally, including fluctuations in currency exchange rates, events in eastern Europe and the Middle East, adverse changes in the global economy, compliance of our products with applicable legislation, governmental regulations and industry standards, the complexity of our products and services and the risk that they may contain hidden defects, legal and business risks from artificial intelligence technology incorporated into our products, risks to our business from the use of artificial intelligence by our workforce, complex regulations applicable to our payments business, our compliance with privacy and cybersecurity regulations, compliance with requirements of the payment card networks and Nacha, exposure to unknown tax liabilities, changes in tax laws and regulations, consolidations and failures in the financial services industry, volatility in our stock price, demand for our products, failure to obtain renewals of customer contracts or to obtain such renewals on favorable terms, delay or cancellation of customer projects or inaccurate project completion estimates, changes in card association and debit network fees or products, impairment of our goodwill or intangible assets, the accuracy of management’s backlog estimates, the cyclical nature of our revenue and earnings and the accuracy of forecasts due to the concentration of revenue-generating activity during the final weeks of each quarter, restrictions and other financial covenants in our debt agreements, our existing levels of debt, incurring additional debt, events outside of our control including natural disasters, wars, and outbreaks of disease, and revenues or revenue mix below expectations. For a detailed discussion of these risk factors, parties that are relying on the forward-looking statements should review our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q.



ACI WORLDWIDE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited and in thousands)
December 31,
20242023
ASSETS
Current assets
Cash and cash equivalents$216,394 $164,239 
Receivables, net of allowances414,399 452,337 
Settlement assets318,871 723,039 
Prepaid expenses29,218 31,479 
Other current assets11,940 35,551 
Total current assets990,822 1,406,645 
Noncurrent assets
Accrued receivables, net360,079 313,983 
Property and equipment, net35,069 37,856 
Operating lease right-of-use assets28,864 34,338 
Software, net92,893 108,418 
Goodwill1,226,026 1,226,026 
Intangible assets, net165,377 195,646 
Deferred income taxes, net72,713 58,499 
Other noncurrent assets53,450 63,328 
TOTAL ASSETS$3,025,293 $3,444,739 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable$45,422 $45,964 
Settlement liabilities317,484 721,164 
Employee compensation55,567 53,892 
Current portion of long-term debt34,928 74,405 
Deferred revenue75,419 59,580 
Other current liabilities73,808 82,244 
Total current liabilities602,628 1,037,249 
Noncurrent liabilities
Deferred revenue19,304 24,780 
Long-term debt889,649 963,599 
Deferred income taxes, net39,920 40,735 
Operating lease liabilities22,592 29,074 
Other noncurrent liabilities26,873 25,005 
Total liabilities1,600,966 2,120,442 
Stockholders’ equity
Preferred stock— — 
Common stock702 702 
Additional paid-in capital731,927 712,994 
Retained earnings1,598,085 1,394,967 
Treasury stock(784,914)(674,896)
Accumulated other comprehensive loss(121,473)(109,470)
Total stockholders’ equity1,424,327 1,324,297 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$3,025,293 $3,444,739 



ACI WORLDWIDE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands, except per share amounts)
Three Months Ended December 31,Years Ended December 31,
2024202320242023
Revenues
Software as a service and platform as a service$223,481 $223,172 $897,979 $849,147 
License159,322 178,543 412,306 321,224 
Maintenance46,717 51,632 190,763 205,068 
Services23,518 23,216 93,240 77,140 
Total revenues453,038 476,563 1,594,288 1,452,579 
Operating expenses
Cost of revenue (1)200,087 181,689 791,783 719,211 
Research and development38,614 34,636 146,677 140,758 
Selling and marketing34,360 34,473 118,352 132,639 
General and administrative33,437 24,515 118,379 117,190 
Depreciation and amortization24,252 28,934 110,962 122,373 
Total operating expenses330,750 304,247 1,286,153 1,232,171 
Operating income122,288 172,316 308,135 220,408 
Other income (expense)
Interest expense(16,634)(19,845)(72,471)(78,486)
Interest income4,093 3,757 15,926 14,215 
Other, net511 (2,107)(1,181)(8,510)
Total other income (expense)(12,030)(18,195)(57,726)(72,781)
Income before income taxes110,258 154,121 250,409 147,627 
Income tax expense11,703 31,505 47,291 26,118 
Net income$98,555 $122,616 $203,118 $121,509 
Income per common share
Basic$0.94 $1.13 $1.93 $1.12 
Diluted$0.93 $1.12 $1.91 $1.12 
Weighted average common shares outstanding
Basic105,104 108,703 105,491 108,497 
Diluted106,318 109,147 106,493 108,857 

(1) The cost of revenue excludes charges for depreciation and amortization.


ACI WORLDWIDE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited and in thousands)
Three Months Ended December 31,Years Ended
December 31,
2024202320242023
Cash flows from operating activities:
Net income$98,555 $122,616 $203,118 $121,509 
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation3,162 5,017 18,161 23,739 
Amortization21,090 23,918 92,801 98,634 
Amortization of operating lease right-of-use assets2,369 2,430 9,706 11,620 
Amortization of deferred debt issuance costs655 908 2,912 4,323 
Deferred income taxes(10,901)21,122 (13,130)(4,085)
Stock-based compensation expense11,116 7,010 41,281 24,547 
Other1,740 (247)1,920 1,921 
Changes in operating assets and liabilities, net of impact of divestiture:
Receivables(27,282)(105,010)(23,583)(62,998)
Accounts payable(1,026)3,423 (268)(3,775)
Accrued employee compensation14,012 11,025 2,887 8,146 
Deferred revenue10,002 (1,699)11,886 2,705 
Other current and noncurrent assets and liabilities2,990 (4,770)11,057 (57,769)
Net cash flows from operating activities126,482 85,743 358,748 168,517 
Cash flows from investing activities:
Purchases of property and equipment(6,939)(968)(15,402)(8,924)
Purchases of software and distribution rights(6,471)(6,282)(29,649)(28,853)
Net cash flows from investing activities(13,410)(7,250)(45,051)(37,777)
Cash flows from financing activities:
Proceeds from issuance of common stock789 697 2,918 2,819 
Proceeds from exercises of stock options4,375 3,594 6,329 6,726 
Repurchase of stock-based compensation awards for tax withholdings(3,812)(946)(13,111)(5,149)
Repurchases of common stock— (27,587)(127,670)(27,587)
Proceeds from revolving credit facility— 59,000 184,000 134,000 
Repayment of revolving credit facility(61,000)(64,000)(238,000)(115,000)
Proceeds from term portion of credit agreement— — 500,000 — 
Repayment of term portion of credit agreement(9,375)(19,475)(557,198)(73,031)
Payments on or proceeds from other debt, net(5,555)(4,293)(14,854)(16,766)
Payments for debt issuance costs— — (5,141)(2,160)
Net decrease in settlement assets and liabilities(43,174)(10,769)(25,470)(15,404)
Net cash flows from financing activities(117,752)(63,779)(288,197)(111,552)
Effect of exchange rate fluctuations on cash1,028 573 697 4,961 
Net increase (decrease) in cash and cash equivalents(3,652)15,287 26,197 24,149 
Cash and cash equivalents, including settlement deposits, beginning of period268,670 223,534 238,821 214,672 
Cash and cash equivalents, including settlement deposits, end of period$265,018 $238,821 $265,018 $238,821 
Reconciliation of cash and cash equivalents to the Consolidated Balance Sheets
Cash and cash equivalents$216,394 $164,239 $216,394 $164,239 
Settlement deposits48,624 74,582 48,624 74,582 
Total cash and cash equivalents$265,018 $238,821 $265,018 $238,821 



Adjusted EBITDA (millions)Three Months Ended December 31,Years Ended
December 31,
2024202320242023
Net income$98.6 $122.6 $203.1 $121.5 
Plus:
Income tax expense11.7 31.5 47.3 26.1 
Net interest expense12.5 16.1 56.5 64.3 
Net other (income) expense(0.5)2.1 1.2 8.5 
Depreciation expense3.2 5.0 18.2 23.7 
Amortization expense21.1 23.9 92.8 98.6 
Non-cash stock-based compensation expense11.1 7.0 41.3 24.5 
Adjusted EBITDA before significant transaction-related expenses$157.7 $208.2 $460.4 $367.2 
Significant transaction-related expenses:
Cost reduction strategies— 1.3 4.3 21.0 
European datacenter migration— 0.2 — 2.8 
Other— — 1.0 4.4 
Adjusted EBITDA$157.7 $209.7 $465.7 $395.4 
Revenue, net of interchange:
Revenue$453.0 $476.6 $1,594.3 $1,452.6 
Interchange115.7 106.1 469.4 421.1 
Revenue, net of interchange$337.3 $370.5 $1,124.9 $1,031.5 
Net adjusted EBITDA Margin47 %57 %41 %38 %

Segment Information (millions)Three Months Ended December 31,Years Ended
December 31,
2024202320242023
Revenue
Banks$230.8 $254.9 $701.9 $616.1 
Merchants42.0 43.0 165.9 150.6 
Billers180.2 178.7 726.5 685.9 
Total$453.0 $476.6 $1,594.3 $1,452.6 
Recurring revenue
Banks$54.7 $58.2 $221.8 $229.4 
Merchants35.3 37.9 140.4 138.9 
Billers180.2 178.7 726.5 685.9 
Total$270.2 $274.8 $1,088.7 $1,054.2 
Segment adjusted EBITDA
Banks$150.7 $188.2 $425.5 $355.5 
Merchants16.8 17.5 69.5 44.3 
Billers32.1 42.2 131.2 142.3 

Note: Amounts may not recalculate due to rounding.




EPS Impact of Non-cash and Significant Transaction-related Items (millions)Three Months Ended December 31,
20242023
EPS Impact$ in Millions
(Net of Tax)		EPS Impact$ in Millions
(Net of Tax)
GAAP net income$0.93 $98.6 $1.12 $122.6 
Adjusted for:
Significant transaction-related expenses— — 0.01 1.1 
Amortization of acquisition-related intangibles0.04 4.5 0.06 6.4 
Amortization of acquisition-related software0.03 3.3 0.03 3.5 
Non-cash stock-based compensation0.08 8.8 0.05 5.3 
Total adjustments$0.15 $16.6 $0.15 $16.3 
Diluted EPS adjusted for non-cash and significant transaction-related items$1.08 $115.2 $1.27 $138.9 


EPS Impact of Non-cash and Significant Transaction-related Items (millions)Years Ended Years Ended December 31,
20242023
EPS Impact$ in Millions
(Net of Tax)		EPS Impact$ in Millions
(Net of Tax)
GAAP net income$1.91 $203.1 $1.12 $121.5 
Adjusted for:
Significant transaction-related expenses0.07 7.4 0.19 21.1 
Amortization of acquisition-related intangibles0.22 23.3 0.24 25.7 
Amortization of acquisition-related software0.13 13.8 0.14 15.5 
Non-cash stock-based compensation0.31 32.6 0.17 18.7 
Total adjustments$0.73 $77.1 $0.74 $81.0 
Diluted EPS adjusted for non-cash and significant transaction-related items$2.64 $280.2 $1.86 $202.5 


Recurring Revenue (millions)Three Months Ended December 31,Years Ended
December 31,
2024202320242023
SaaS and PaaS fees$223.5 $223.2 $898.0 $849.1 
Maintenance fees46.7 51.6 190.8 205.1 
Recurring revenue$270.2 $274.8 $1,088.7 $1,054.2 


New Bookings (millions)Three Months Ended December 31,Years Ended
December 31,
2024202320242023
Annual recurring revenue (ARR) bookings$35.2 $28.8 $65.7 $73.5 
License and services bookings115.1 106.5 290.0 239.2 

Note: Amounts may not recalculate due to rounding.

Q4 2024 Earnings Presentation February 27, 2025 Exhibit 99.2

 
This presentation contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. The forward-looking statements are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. A discussion of these forward-looking statements and risk factors that may affect them is set forth at the end of this presentation. The Company assumes no obligation to update any forward-looking statement in this presentation, except as required by law. Private Securities Litigation Reform Act of 1995 Safe Harbor for Forward-Looking Statements

 
Powering the world’s payments ecosystem ACI Worldwide, an original innovator in global payments technology, delivers transformative software solutions that power intelligent payments orchestration in real time so banks, billers, and merchants can drive growth, while continuously modernising their payment infrastructures, simply and securely. With nearly 50 years of trusted payments expertise, we combine our global footprint with a local presence to offer enhanced payment experiences to stay ahead of constantly changing payment challenges and opportunities.

 
Full Year 2024 Highlights 4 Consolidated Results Segment Results Other

 
2025 Financial Guidance 5 Q1 2025 financial guidance • Revenue expected to be between $360 million and $370 million and adjusted EBITDA to be between $70 million and $80 million 2024 Actual FX Impact 2024 Pro Forma Low High Revenue 1,594 (13) 1,581 1,685 1,715 Adjusted EBITDA 466 - 466 480 495 $'s in millions Foreign currency rates as of 12/31/24 2025 Guidance

 
Additional 2025 Guidance Metrics 6 • Full year 2025 revenue phasing expected to be ~ 45% in 1H 2025 and 55% in 2H 2025 • Compared to 43% in 1H 2024 and 57% in 2H 2024 • Interest expense, net expected to approximate $40 million • Depreciation and amortization expected to approximate $100 million • Non-cash compensation expense expected to approximate $50 million • Effective tax rate expected to approximate 25% • Diluted share count expected to approximate 107 million shares (excluding future share buy-back activity)

 
Supplemental Financial Data 7Confidential Three Months Ended December 31, Years Ended December 31, Recurring Revenue (millions) 2024 2023 2024 2023 SaaS and PaaS fees $ 223.5 $ 223.2 $ 898.0 $ 849.1 Maintenance fees 46.7 51.6 190.8 205.1 Recurring Revenue $ 270.2 $ 274.8 $ 1,088.7 $ 1,054.2 Three Months Ended December 31, Years Ended December 31, New Bookings (millions) 2024 2023 2024 2023 Annual recurring revenue (ARR) bookings $ 35.2 $ 28.8 $ 65.7 $ 73.5 License and services bookings 115.1 106.5 290.0 239.2 Note: Amounts may not recalculate due to rounding.

 
Supplemental Financial Data 8Confidential Three Months Ended December 31, Years Ended December 31, Adjusted EBITDA (millions) 2024 2023 2024 2023 Net income $ 98.6 $ 122.6 $ 203.1 $ 121.5 Plus: Income tax expense 11.7 31.5 47.3 26.1 Net interest expense 12.5 16.1 56.5 64.3 Net other (income) expense (0.5) 2.1 1.2 8.5 Depreciation expense 3.2 5.0 18.2 23.7 Amortization expense 21.1 23.9 92.8 98.6 Non-cash stock-based compensation expense 11.1 7.0 41.3 24.5 Adjusted EBITDA before significant transaction-related expenses $ 157.7 $ 208.2 $ 460.4 $ 367.2 Significant transaction-related expenses: Cost reduction strategies — 1.3 4.3 21.0 European datacenter migration — 0.2 — 2.8 Other — — 1.0 4.4 Adjusted EBITDA $ 157.7 $ 209.7 $ 465.7 $ 395.4 Revenue, net of interchange Revenue $ 453.0 $ 476.6 $ 1,594.3 $ 1,452.6 Interchange 115.7 106.1 469.4 421.1 Revenue, net of interchange $ 337.3 $ 370.5 $ 1,124.9 $ 1,031.5 Net Adjusted EBITDA Margin 47 % 57 % 41 % 38 % Note: Amounts may not recalculate due to rounding.

 
Supplemental Financial Data 9Confidential Three Months Ended December 31, Years Ended December 31, Segment Information (millions) 2024 2023 2024 2023 Revenue Banks $ 230.8 $ 254.9 $ 701.9 $ 616.1 Merchants 42.0 43.0 165.9 150.6 Billers 180.2 178.7 726.5 685.9 Total Revenue $ 453.0 $ 476.6 $ 1,594.3 $ 1,452.6 Recurring Revenue Banks $ 54.7 $ 58.2 $ 221.8 $ 229.4 Merchants 35.3 37.9 140.4 138.9 Billers 180.2 178.7 726.5 685.9 Total $ 270.2 $ 274.8 $ 1,088.7 $ 1,054.2 Segment Adjusted EBITDA Banks $ 150.7 $ 188.2 $ 425.5 $ 355.5 Merchants 16.8 17.5 69.5 44.3 Billers 32.1 42.2 131.2 142.3 Note: Amounts may not recalculate due to rounding.

 
Supplemental Financial Data 10Confidential EPS Impact of Non-cash and Significant Transaction-related Items (millions) Three Months Ended December 31, 2024 2023 EPS Impact $ in Millions (Net of Tax) EPS Impact $ in Millions (Net of Tax) GAAP net income $ 0.93 $ 98.6 $ 1.12 $ 122.6 Adjusted for: Significant transaction-related expenses — — 0.01 1.1 Amortization of acquisition-related intangibles 0.04 4.5 0.06 6.4 Amortization of acquisition-related software 0.03 3.3 0.03 3.5 Non-cash stock-based compensation 0.08 8.8 0.05 5.3 Total adjustments 0.15 16.6 0.15 16.3 Diluted EPS adjusted for non-cash and significant transaction- related items $ 1.08 $ 115.2 $ 1.27 $ 138.9 Years Ended December 31, 2024 2023 EPS Impact $ in Millions (Net of Tax) EPS Impact $ in Millions (Net of Tax) GAAP net income $ 1.91 $ 203.1 $ 1.12 $ 121.5 Adjusted for: Significant transaction-related expenses 0.07 7.4 0.19 21.1 Amortization of acquisition-related intangibles 0.22 23.3 0.24 25.7 Amortization of acquisition-related software 0.13 13.8 0.14 15.5 Non-cash stock-based compensation 0.31 32.6 0.17 18.7 Total adjustments 0.73 77.1 0.74 81.0 Diluted EPS adjusted for non-cash and significant transaction- related items $ 2.64 $ 280.2 $ 1.86 $ 202.5 Note: Amounts may not recalculate due to rounding.

 
Non-GAAP Financial Measures 11Confidential To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude significant transaction related expenses, as well as other significant non-cash expenses such as depreciation, amortization, and non-cash compensation, that we believe are helpful in understanding our past financial performance and our future results. The presentation of these non-GAAP financial measures should be considered in addition to our GAAP results and are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management generally compensates for limitations in the use of non-GAAP financial measures by relying on comparable GAAP financial measures and providing investors with a reconciliation of non-GAAP financial measures only in addition to and in conjunction with results presented in accordance with GAAP. We believe that these non-GAAP financial measures reflect an additional way to view aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. Certain non-GAAP measures include: ◦ Adjusted EBITDA: net income (loss) plus income tax expense (benefit), net interest income (expense), net other income (expense), depreciation, amortization, and non-cash compensation, as well as significant transaction related expenses. Adjusted EBITDA should be considered in addition to, rather than as a substitute for, net income (loss). ◦ Net Adjusted EBITDA Margin: Adjusted EBITDA divided by revenue net of pass-through interchange revenue. Net Adjusted EBITDA Margin should be considered in addition to, rather than as a substitute for, net income (loss). ◦ Diluted EPS adjusted for non-cash and significant transaction related items: diluted EPS plus tax effected significant transaction related items, amortization of acquired intangibles and software, and non-cash stock-based compensation. Diluted EPS adjusted for non-cash and significant transaction related items should be considered in addition to, rather than as a substitute for, diluted EPS. ◦ Recurring Revenue: revenue from software as a service and platform service fees and maintenance fees. Recurring revenue should be considered in addition to, rather than as a substitute for, total revenue. ◦ ARR: New annual recurring revenue expected to be generated from new accounts, new applications, and add-on sales bookings contracts signed in the period.

 
Forward Looking Statements 12Confidential This presentation contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. Generally, forward- looking statements do not relate strictly to historical or current facts and may include words or phrases such as “believes,” “will,” “expects,” “anticipates,” “intends,” and words and phrases of similar impact. The forward-looking statements are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include, but are not limited to, statements regarding financial guidance, including Q1 2025 and full year 2025 revenue and adjusted EBITDA and additional guidance metrics. All of the foregoing forward-looking statements are expressly qualified by the risk factors discussed in our filings with the Securities and Exchange Commission. Such factors include, but are not limited to, increased competition, business interruptions, cybersecurity incidents or failure of our information technology and communication systems, security breaches, our ability to attract and retain senior management personnel and skilled technical employees, future acquisitions, strategic partnerships and investments, divestitures and other restructuring activities, implementation and success of our strategy, impact if we convert some or all on-premise licenses from fixed-term to subscription model, anti-takeover provisions, exposure to credit or operating risks arising from certain payment funding methods, loss caused by theft or fraud, customer reluctance to switch to a new vendor, our ability to adequately defend our intellectual property, litigation, consent orders and other compliance agreements, our offshore software development activities, risks from operating internationally, including fluctuations in currency exchange rates, events in eastern Europe and the Middle East, adverse changes in the global economy, compliance of our products with applicable legislation, governmental regulations and industry standards, the complexity of our products and services and the risk that they may contain hidden defects, legal and business risks from artificial intelligence incorporated into our products, risks to our business from the use of artificial intelligence by our workforce, complex regulations applicable to our payments business, our compliance with privacy and cybersecurity regulations, compliance with requirements of the payment card networks and Nacha, exposure to unknown tax liabilities, changes in tax laws and regulations, consolidations and failures in the financial services industry, volatility in our stock price, demand for our products, failure to obtain renewals of customer contracts or to obtain such renewals on favorable terms, delay or cancellation of customer projects or inaccurate project completion estimates, changes in card association and debit network fees or products, impairment of our goodwill or intangible assets, the accuracy of management’s backlog estimates, the cyclical nature of our revenue and earnings and the accuracy of forecasts due to the concentration of revenue-generating activity during the final weeks of each quarter, restrictions and other financial covenants in our debt agreements, our existing levels of debt, incurring additional debt, events outside of our control including natural disasters, wars, and outbreaks of disease, and revenues or revenue mix below expectations. For a detailed discussion of these risk factors, parties that are relying on the forward-looking statements should review our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q.

 
13Confidential

 
v3.25.0.1
Document and Entity Information Document
Feb. 27, 2025
Entity Information [Line Items]  
Document Type 8-K
Document Period End Date Feb. 27, 2025
Entity File Number 0-25346
Entity Registrant Name ACI WORLDWIDE, INC.
Entity Central Index Key 0000935036
Amendment Flag false
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 47-0772104
Entity Address, Address Line One 6060 Coventry Drive
Entity Address, City or Town Elkhorn,
Entity Address, State or Province NE
Entity Address, Postal Zip Code 68022
City Area Code 402
Local Phone Number 390-7600
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
NASDAQ/NGS (GLOBAL SELECT MARKET)  
Entity Information [Line Items]  
Title of 12(b) Security Common Stock, $0.005 par value
Trading Symbol ACIW
Security Exchange Name NASDAQ
ACI Worldwide (NASDAQ:ACIW)
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