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Jun 30, 2021

ACI Worldwide Q2 2021 Earnings Report

ACI Worldwide's financial results for the quarter ended June 30, 2021, were announced, revealing a mix of growth and decline across different segments.

Key Takeaways

ACI Worldwide reported a slight increase in total revenue, up 1% to $302 million, with recurring revenue growing by 7%. The company signed a multi-year strategic alliance with Microsoft and repurchased 1 million shares. However, net income decreased to $7 million, and adjusted EBITDA also declined due to the timing of non-recurring, high-margin license renewals.

Recurring revenue increased by 7% compared to Q2 2020, reaching $250 million.

Total revenue saw a modest increase of 1% compared to Q2 2020, totaling $302 million.

A strategic alliance was formed with Microsoft to enhance cloud-based payment solutions.

The company repurchased 1 million shares and reduced debt by $25 million.

Total Revenue
$302M
Previous year: $300M
+0.6%
EPS
$0.23
Previous year: $0.33
-30.3%
Gross Profit
$143M
Previous year: $153M
-6.2%
Cash and Equivalents
$146M
Previous year: $129M
+13.1%
Free Cash Flow
$34.7M
Previous year: $61M
-43.1%
Total Assets
$3.18B
Previous year: $3.14B
+1.2%

ACI Worldwide

ACI Worldwide

ACI Worldwide Revenue by Segment

Forward Guidance

For the full year 2021, ACI Worldwide expects revenue to be in the range of $1.335 billion to $1.345 billion and adjusted EBITDA to be in the range of $375 million to $385 million. For Q3 2021, the company expects revenue to be between $310 million and $320 million and adjusted EBITDA of $70 million to $80 million.

Positive Outlook

  • Revenue expected to be between $1.335 billion and $1.345 billion for full year 2021.
  • Adjusted EBITDA expected to be in the range of $375 million to $385 million for full year 2021.
  • Revenue expected to be between $310 million and $320 million in Q3 2021.
  • Adjusted EBITDA expected to be between $70 million and $80 million in Q3 2021.

Revenue & Expenses

Visualization of income flow from segment revenue to net income