Q3 HIGHLIGHTS

• Revenue up 45%
• Net income up 109%
• Adjusted EBITDA up 66%
• Repurchased 1.2 million shares for $35 million

Download full release >
Download full presentation >

“We are pleased with our results in Q3. ACI revenue increased 45%, or 9% excluding the Speedpay contribution, and exceeded the high end of our guidance range. Also importantly, we signed one of the large contracts that was delayed due to a capital markets transaction.  Not only did this customer re-commit to ACI, but the contract is a major expansion in the relationship. Our On Demand segment continues to see strong margin improvement, with net adjusted EBITDA margin in Q3 of 20% compared to 5% last year,” commented Phil Heasley, President and CEO, ACI Worldwide. “The integration and contribution of Speedpay is on track and we remain well positioned in the electronic payments industry.”

Q3 2019 FINANCIAL SUMMARY

In Q3 2019, revenue was $355 million, up 45% from $246 million in Q3 2018. Adjusting for the Speedpay contribution, Q3 revenue grew 9% from last year. Recurring revenue increased 55% in the quarter to $246 million, or 69% of total revenue, from $159 million, or 65% of total revenue last year.

Net income in the quarter was $32 million, up $17 million from last year. Adjusted EBITDA in Q3 was $99 million, up 66% from Q3 2018, or up 39% excluding the Speedpay contribution.

In Q3 2019, revenue from ACI’s On Demand segment was $193 million, up 85% from $105 million last year.  On Demand segment net adjusted EBITDA margin improved to 20% from 5% last year. On Demand segment net adjusted EBITDA margins are adjusted for pass through interchange revenue of $99 million and $39 million, for Q3 2019 and Q3 2018, respectively.

ACI’s On Premise segment revenue was $162 million, up 15% from $141 million last year. On Premise segment adjusted EBITDA margin was 61% in Q3 2019 versus 55% in Q3 2018.

ACI ended Q3 2019 with a 12-month backlog of $1.1 billion and a 60-month backlog of $5.7 billion.  After adjusting for foreign currency fluctuations, our 12-month backlog decreased $37 million and our 60-month backlog increased $21 million from Q2 2019.

Cash flows from operating activities in Q3 2019 were $32 million, versus $29 million in Q3 2018.  ACI ended Q3 2019 with $122 million in cash on hand and a debt balance of $1.4 billion. The company repurchased 1.2 million shares for $35 million, or an average price of $29.05 per share and has $141 million remaining on its share repurchase authorization.

GUIDANCE

We continue to expect 2019 total revenue to be between $1.315 billion and $1.345 billion and adjusted EBITDA to be in a range of $360 million to $380 million.  This excludes between $30 million and $35 million in significant transaction related expenses.

We continue to expect our 2020 adjusted EBITDA to be in a range of $425 million to $445 million.

CONFERENCE CALL TO DISCUSS FINANCIAL RESULTS AND OUTLOOK

Management will host a conference call at 8:30 am ET today to discuss these results as well as 2019 and 2020 guidance. Interested persons may access a real-time audio broadcast of the teleconference at http://investor.aciworldwide.com/ or use the following numbers for dial-in participation: US/Canada: (866) 914-7436, international: +1 (817) 385-9117. Please provide your name, the conference name ACI Worldwide, Inc. and conference code 8599063. There will be a replay of the call available for two weeks on (855) 859-2056 for US/Canada callers and +1 (404) 537-3406 for international participants