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Mar 31, 2023

ACI Worldwide Q1 2023 Earnings Report

ACI Worldwide's Q1 2023 financial results were announced, revealing a mix of growth and challenges. Recurring revenue increased, driven by the Biller segment, while overall revenue was down slightly due to FX and divestiture adjustments.

Key Takeaways

ACI Worldwide reported Q1 2023 financial results, showing a decrease in total revenue to $290 million, a net loss of $32 million, and adjusted EBITDA of $25 million. Recurring revenue grew, particularly in the Biller segment, but was offset by declines in the Bank and Merchant segments. The company reiterated its full-year 2023 guidance.

Recurring revenue grew by 9%, adjusting for FX and divestiture.

Biller segment revenue increased by 11%.

Cash flow from operations was up 39%.

Full-year 2023 guidance was reiterated.

Total Revenue
$290M
Previous year: $323M
-10.3%
EPS
-$0.07
Previous year: $0.28
-125.0%
Gross Profit
$111M
Previous year: $157M
-29.1%
Cash and Equivalents
$142M
Previous year: $115M
+24.1%
Free Cash Flow
$37.8M
Previous year: $26.6M
+42.2%
Total Assets
$3.01B
Previous year: $3.21B
-6.3%

ACI Worldwide

ACI Worldwide

ACI Worldwide Revenue by Segment

Forward Guidance

For the full-year 2023, the Company expects revenue growth to be in the mid-single-digits on a constant currency and divestiture-adjusted basis, or in the range of $1.436 billion to $1.466 billion. The Company expects adjusted EBITDA to be in the range of $380 million to $395 million with net adjusted EBITDA margin expansion. The Company expects revenue to be between $300 million and $310 million and adjusted EBITDA of $35 million to $45 million in Q2 2023.

Positive Outlook

  • Revenue growth expected in the mid-single-digits for full-year 2023.
  • Adjusted EBITDA expected to be in the range of $380 million to $395 million for full-year 2023.
  • Net adjusted EBITDA margin expansion expected for full-year 2023.
  • Revenue expected to be between $300 million and $310 million in Q2 2023.
  • Adjusted EBITDA expected to be between $35 million and $45 million in Q2 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income