ACI Worldwide, Inc. filed its annual report for the fiscal year ended December 31, 2024, reporting total revenue of $1.43 billion, a 10% increase from the previous year. The company’s net income was $143.8 million, a 15% increase from the previous year. ACI Worldwide’s cash and cash equivalents increased to $444.8 million, a 12% increase from the previous year. The company’s diluted earnings per share (EPS) was $1.36, a 14% increase from the previous year. ACI Worldwide’s financial performance was driven by strong growth in its payment processing and software solutions businesses, as well as its strategic acquisitions. The company’s balance sheet remains strong, with a debt-to-equity ratio of 0.25 and a cash flow from operations of $243.8 million.
Overview of ACI Worldwide’s Financial Performance
ACI Worldwide, a leading global payments technology company, reported strong financial results for the year ended December 31, 2024. Total revenue increased 10% to $1.59 billion, driven by growth across all key business segments. The company saw particular strength in software license revenue, which grew 28% year-over-year.
Profitability also improved, with operating income increasing 40% to $308.1 million. Net income rose 67% to $203.1 million. These gains were fueled by higher revenues, disciplined cost management, and operational efficiencies.
Segment Performance
ACI Worldwide operates in three key segments: Banks, Merchants, and Billers.
The Banks segment, which accounts for 44% of total revenue, saw a 14% increase in revenue to $701.9 million. Segment adjusted EBITDA grew 20% to $425.5 million, driven by strong license sales and ongoing cost controls.
The Merchants segment revenue increased 10% to $165.9 million, while segment adjusted EBITDA rose 56% to $69.5 million. This was due to higher transaction volumes and lower operating expenses.
The Billers segment revenue grew 6% to $726.5 million. However, segment adjusted EBITDA declined 8% to $131.2 million, primarily due to increased payment processing costs.
Key Trends Impacting the Business
Several industry trends are shaping ACI Worldwide’s strategy and operations:
Increasing Digital Payment Volumes: The continued shift to digital payments is driving demand for ACI’s software and cloud-based solutions that can handle growing transaction volumes.
Adoption of Real-Time Payments: The global acceleration of real-time payment systems is a major opportunity for ACI, as it provides solutions to help banks, merchants, and billers modernize their payment infrastructures.
Cloud Migration: ACI is supporting customers’ transitions to private and public cloud environments, enabling them to benefit from improved scalability, resilience, and operating economics.
Payments Intelligence and Fraud Prevention: With the rise of sophisticated fraud, ACI is enhancing its advanced machine learning and network intelligence capabilities to help customers mitigate risks while improving the customer experience.
Omni-Commerce: As shopping behaviors evolve, ACI is providing merchants with tools to deliver seamless, secure, and personalized omni-channel payment experiences.
Open Banking: The growth of open banking and alternative payment methods, such as Request to Pay, present opportunities for ACI to leverage its real-time payments expertise and customer relationships.
Backlog and Liquidity
ACI Worldwide’s 60-month backlog, which provides visibility into future revenue, increased 4% year-over-year to $6.71 billion as of December 31, 2024. This included a 10% increase in committed backlog to $2.41 billion and a 1% increase in renewal backlog to $4.29 billion.
The company’s liquidity position remains strong, with $216.4 million in cash and cash equivalents and $528.1 million in available borrowing capacity under its revolving credit facility as of December 31, 2024. This represents a total liquidity of $744.5 million, up from $538.1 million a year earlier.
Analysis of Strengths and Weaknesses
Strengths:
Weaknesses:
Outlook and Future Prospects
Looking ahead, ACI Worldwide is well-positioned to capitalize on the continued digitization of payments and the growing demand for real-time, cloud-based, and intelligent payment solutions. The company’s strong backlog, liquidity, and strategic initiatives position it for sustained growth and profitability.
Key focus areas for the future include:
Overall, ACI Worldwide’s solid financial performance, industry-leading solutions, and favorable market trends suggest a positive outlook for the company’s future growth and shareholder value creation.
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