ACI Worldwide Inc (ACIW) Q2 2024 Earnings Call Highlights: Strong Revenue Growth and Raised Guidance

GuruFocus News
4 min read

In This Article:

  • Total Revenue: $373 million, up 16% year-over-year.

  • Adjusted EBITDA: $93 million, up 62% year-over-year.

  • Biller Segment Revenue: $192 million, up 13% year-over-year.

  • Biller Segment Adjusted EBITDA: $37 million, up 20% year-over-year.

  • Bank Segment Revenue: $144 million, up 22% year-over-year.

  • Bank Segment Adjusted EBITDA: $79 million, up 53% year-over-year.

  • Merchant Segment Revenue: $38 million, up 4% year-over-year.

  • Merchant Segment Adjusted EBITDA: $15 million, up 55% year-over-year.

  • Cash Flow from Operations: $55 million, up 215% year-over-year.

  • Cash on Hand: $157 million.

  • Debt Balance: $1 billion.

  • Net Debt Leverage Ratio: 1.9x, down from 2.3x at year-end.

  • Share Repurchase: 1.7 million shares for $57 million in Q2; 3.7 million shares for $120 million over the last 6 months.

  • 2024 Revenue Guidance: $1.557 billion to $1.591 billion.

  • 2024 Adjusted EBITDA Guidance: $423 million to $438 million.

  • Q3 2024 Revenue Guidance: $400 million to $410 million.

  • Q3 2024 Adjusted EBITDA Guidance: $110 million to $120 million.

Release Date: August 01, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • ACI Worldwide Inc (NASDAQ:ACIW) reported a 16% year-over-year increase in total revenue for Q2 2024, surpassing expectations.

  • The Biller segment saw a record 13% increase in gross revenue and a 20% rise in EBITDA, driven by onboarding new customer transaction volumes and strong tax-related volumes.

  • The Bank segment experienced a 22% increase in revenue and a 53% rise in EBITDA, with significant renewal contracts and strategic expansions, including a partnership with a top bank in Malaysia.

  • The company raised its full-year guidance for both revenue and adjusted EBITDA, reflecting confidence in continued strong performance.

  • ACI Worldwide Inc (NASDAQ:ACIW) was recognized by CNBC as one of the world's top FinTech companies for 2024, highlighting its industry leadership and innovation.

Negative Points

  • The Biller segment's outperformance in Q2 is not expected to continue at the same level in Q3 or Q4 due to its seasonal nature.

  • The Merchant segment's revenue growth was only 4%, which is slower than desired, although EBITDA grew by 55%.

  • Despite early renewal signings, revenue from these contracts cannot be recognized until later in the year, which may affect short-term financial results.

  • The company faces challenges in maintaining the momentum of new logo acquisitions, particularly in the Biller segment.

  • There is uncertainty regarding the timing and impact of cross-border real-time payments, which could affect future growth projections.

Recommended Stories