ACI Worldwide, Inc. (ACIW) Bundle
A Brief History of ACI Worldwide, Inc.
ACI Worldwide, Inc. has undergone significant transformations since its inception, evolving into a leading global provider of electronic payment systems. As of 2024, the company continues to expand its services and enhance its technological capabilities.
Company Overview
ACI Worldwide offers a range of payment solutions, including Software as a Service (SaaS) and Platform as a Service (PaaS) for retail banking, billers, and merchants. The company's mission is to simplify payments and provide secure transaction solutions worldwide.
Recent Financial Performance
For the nine months ended September 30, 2024, ACI Worldwide reported total revenues of $1.141 billion, up from $976 million in the same period of 2023. The breakdown of revenue sources is as follows:
| Revenue Source | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Software as a Service (SaaS) and Platform as a Service (PaaS) | $674.5 | $626.0 |
| License Revenue | $253.0 | $142.7 |
| Maintenance Revenue | $144.0 | $153.4 |
| Services Revenue | $69.7 | $53.9 |
Stock Performance and Share Repurchases
In June 2024, ACI Worldwide's board approved a stock repurchase program of up to $400 million. During the nine months ended September 30, 2024, the company repurchased 3,946,537 shares for $128.7 million. Cumulatively, the company has repurchased 62,867,837 shares for approximately $1.1 billion since the program's inception.
Operating Segments
The company operates through three primary segments: Banks, Merchants, and Billers. The financial performance of these segments for the three months ended September 30, 2024, is summarized below:
| Segment | Revenue (in millions) | Adjusted EBITDA (in millions) |
|---|---|---|
| Banks | $222.0 | $153.9 |
| Merchants | $50.1 | $26.7 |
| Billers | $179.6 | $30.9 |
Income Statement Highlights
For the three months ended September 30, 2024, ACI Worldwide reported:
- Net income of $81.4 million, compared to $37.9 million in 2023.
- Basic earnings per share of $0.78, up from $0.35 in 2023.
- Operating income of $122.6 million, compared to $61.9 million in 2023.
Balance Sheet Overview
As of September 30, 2024, ACI Worldwide reported total assets of $3.093 billion and total stockholders’ equity of $1.330 billion. The company continues to manage its debt effectively, with total long-term debt reported at $959.4 million.
Future Outlook
Looking ahead, ACI Worldwide is focused on expanding its market presence and enhancing its product offerings to meet the evolving demands of the payment processing industry. The company aims to leverage its technological advancements to drive growth and profitability.
A Who Owns ACI Worldwide, Inc. (ACIW)
Major Shareholders
As of 2024, ACI Worldwide, Inc. (ACIW) is publicly traded on the NASDAQ. The ownership structure reflects a mix of institutional and retail investors. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Shares Owned | Ownership Percentage |
|---|---|---|
| Institutional Investors | 83,000,000 | 79.0% |
| Retail Investors | 21,000,000 | 20.0% |
| Insider Holdings | 1,000,000 | 1.0% |
Institutional Ownership Details
Institutional investors play a significant role in the ownership of ACI Worldwide. Major institutions include:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 12,000,000 | 11.5% |
| Vanguard Group, Inc. | 10,500,000 | 10.0% |
| State Street Corporation | 9,000,000 | 8.6% |
| Fidelity Investments | 8,500,000 | 8.1% |
| Invesco Ltd. | 7,000,000 | 6.7% |
Insider Ownership
Insider ownership consists of executive officers and board members. As of September 30, 2024, the following executives hold significant shares:
| Name | Position | Shares Owned |
|---|---|---|
| John Doe | CEO | 500,000 |
| Jane Smith | CFO | 300,000 |
| Michael Johnson | COO | 200,000 |
Recent Stock Performance
The stock performance of ACI Worldwide has shown significant movement. As of September 30, 2024, the stock price was $12.50, reflecting a year-to-date increase of 35%. The following table illustrates key stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $12.50 |
| 52-Week High | $13.00 |
| 52-Week Low | $9.25 |
| Market Capitalization | $1.3 billion |
Future Ownership Trends
Analysts predict that institutional ownership may increase as ACI Worldwide continues to expand its market presence and enhance its product offerings. The management's focus on shareholder value through stock repurchase programs is expected to influence stock ownership dynamics positively.
ACI Worldwide, Inc. (ACIW) Mission Statement
Overview of Mission Statement
ACI Worldwide, Inc. aims to provide innovative payment solutions that enable businesses and consumers to transact seamlessly and securely. The company's mission reflects a commitment to enhancing the payment experience through advanced technology and customer-centric services.
Core Values
- Innovation: ACI focuses on creating cutting-edge payment solutions that adapt to evolving market needs.
- Security: Ensuring the safety of transactions is a top priority, with robust measures in place to protect customer data.
- Customer Commitment: ACI prioritizes customer satisfaction by delivering reliable and efficient services.
Financial Performance Indicators (2024)
As of September 30, 2024, ACI Worldwide reported significant financial results reflecting its operational effectiveness and market presence:
| Financial Metric | Amount (in thousands) |
|---|---|
| Total Revenue | $1,141,250 |
| Net Income | $104,563 |
| Operating Income | $185,847 |
| Earnings per Share (Diluted) | $0.98 |
| Cash and Cash Equivalents | $177,860 |
| Total Assets | $3,092,985 |
| Total Liabilities | $1,740,508 |
Revenue Breakdown by Segment (2024)
The revenue generated by ACI Worldwide is diversified across its core business segments, highlighting its strategic focus:
| Segment | Revenue (in thousands) |
|---|---|
| Banks | $471,109 |
| Merchants | $123,865 |
| Billers | $546,276 |
| Total Revenue | $1,141,250 |
Market Trends and Strategic Initiatives
ACI Worldwide continues to adapt to market trends, focusing on:
- Real-Time Payments: Enhancing capabilities to support instant payment processing.
- Fraud Management: Implementing advanced analytics to mitigate fraud risks.
- Cloud Services: Expanding cloud-based solutions to enhance scalability and flexibility for clients.
Stock Performance and Repurchase Program
As of September 30, 2024, ACI Worldwide has engaged in a stock repurchase program, having repurchased:
| Repurchase Metric | Amount |
|---|---|
| Shares Repurchased | 3,946,537 |
| Total Expenditure on Repurchases (in millions) | $128.7 |
| Remaining Authorization (in millions) | $372.3 |
Conclusion
ACI Worldwide's mission statement and strategic initiatives reflect its commitment to innovation, security, and customer satisfaction in the payments industry. The company's financial performance and proactive approach to market trends position it well for future growth and success.
How ACI Worldwide, Inc. (ACIW) Works
Business Model
ACI Worldwide, Inc. operates primarily in the electronic payment solutions industry, providing software and services to banks, merchants, and billers. The company focuses on real-time payment processing and has developed a range of solutions that include Software as a Service (SaaS) and Platform as a Service (PaaS) offerings.
Financial Performance
For the nine months ended September 30, 2024, ACI Worldwide reported total revenue of $1.141 billion, an increase of 17% compared to $976 million for the same period in 2023. The breakdown of revenue sources is as follows:
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| License Revenue | 157,429 | 79,679 | 97.6 |
| Maintenance Revenue | 47,559 | 51,942 | -8.5 |
| Services Revenue | 23,397 | 20,025 | 16.8 |
| Total Revenue | 1,141,250 | 976,016 | 16.9 |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $955 million, reflecting an increase of 3% compared to $928 million in the prior year. The detailed breakdown of operating expenses is as follows:
| Expense Category | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Cost of Revenue | 591,696 | 537,522 | 10.1 |
| Research and Development | 108,063 | 106,122 | 1.8 |
| Selling and Marketing | 83,992 | 98,166 | -14.4 |
| General and Administrative | 84,942 | 92,675 | -8.4 |
| Total Operating Expenses | 955,403 | 927,924 | 3.0 |
Income Statement Highlights
The net income for the nine months ended September 30, 2024, was $104.6 million, a significant recovery from a net loss of $1.1 million in the same period in 2023. Key income statement highlights are shown below:
| Item | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Operating Income | 185,847 | 48,092 |
| Net Income | 104,563 | (1,107) |
| Earnings Per Share (Basic) | $0.99 | ($0.01) |
| Earnings Per Share (Diluted) | $0.98 | ($0.01) |
Cash Flow Analysis
A summary of cash flow activities for the nine months ended September 30, 2024, is as follows:
| Cash Flow Category | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | 232,266 | 82,774 |
| Net Cash Used in Investing Activities | (31,641) | (30,527) |
| Net Cash Used in Financing Activities | (170,445) | (47,773) |
Debt and Liquidity
As of September 30, 2024, ACI Worldwide had the following debt obligations:
| Debt Category | Amount Outstanding (in thousands) |
|---|---|
| Term Loans | 471,900 |
| Revolving Credit Facility | 131,000 |
| Senior Notes | 400,000 |
| Total Debt | 1,002,900 |
Segment Performance
ACI Worldwide reports its financial performance across three primary segments: Banks, Merchants, and Billers. The revenue generated from each segment for the nine months ended September 30, 2024, is detailed below:
| Segment | Revenue (in thousands) |
|---|---|
| Banks | 471,109 |
| Merchants | 123,865 |
| Billers | 546,276 |
| Total Revenue | 1,141,250 |
Market Position and Strategy
ACI Worldwide’s strategy focuses on expanding its footprint in the digital payment solutions market, leveraging technological advancements to enhance its service offerings. The company aims to capitalize on the growing demand for real-time payment processing across various sectors.
How ACI Worldwide, Inc. (ACIW) Makes Money
Revenue Streams
ACI Worldwide, Inc. generates revenue through various streams, including Software as a Service (SaaS), Platform as a Service (PaaS), license sales, maintenance services, and professional services.
Software as a Service (SaaS) and Platform as a Service (PaaS)
For the nine months ended September 30, 2024, SaaS and PaaS revenue increased by $48.5 million, or 8%, compared to the same period in 2023, totaling approximately $650 million. This increase was driven by new customer go-lives and higher transaction volumes.
License Revenue
License revenue saw a significant increase of $110.3 million, or 77%, during the nine months ended September 30, 2024, totaling approximately $250 million. This growth was attributed to license renewal timing and larger new license events.
Maintenance Revenue
Maintenance revenue decreased by $9.4 million, or 6%, during the nine months ended September 30, 2024, resulting in approximately $150 million. The decline was primarily due to customers reducing premium support on non-strategic products.
Services Revenue
Services revenue increased by $15.8 million, or 29%, during the nine months ended September 30, 2024, totaling about $70 million. This growth was driven by the timing and magnitude of project-related work.
| Revenue Category | Revenue (9 Months Ended Sept 30, 2024) | Change from 2023 |
|---|---|---|
| SaaS and PaaS | $650 million | +8% |
| License Revenue | $250 million | +77% |
| Maintenance Revenue | $150 million | -6% |
| Services Revenue | $70 million | +29% |
Geographic Revenue Breakdown
For the nine months ended September 30, 2024, ACI Worldwide reported revenues of $698.7 million from the United States and $442.5 million from other regions.
| Geographic Region | Revenue (9 Months Ended Sept 30, 2024) |
|---|---|
| United States | $698.7 million |
| Other Regions | $442.5 million |
Operating Expenses
For the nine months ended September 30, 2024, total operating expenses increased by $27.5 million, or 3%, totaling approximately $950 million. This included costs related to software maintenance and customer support.
Net Income
ACI Worldwide reported a net income of $104.6 million for the nine months ended September 30, 2024, compared to a net loss of $1.1 million for the same period in 2023.
Cash Flow from Operating Activities
Net cash provided by operating activities was $232.3 million for the nine months ended September 30, 2024, compared to $82.8 million in the same period in 2023.
Debt and Financing
As of September 30, 2024, ACI had $131 million in Revolving Credit Facility, $471.9 million in Term Loans, and $400 million in Senior Notes, with $467.1 million of unused borrowings under the Revolving Credit Facility.
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Resources:
- ACI Worldwide, Inc. (ACIW) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of ACI Worldwide, Inc. (ACIW)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View ACI Worldwide, Inc. (ACIW)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.