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Jun 30, 2023

ACI Worldwide Q2 2023 Earnings Report

ACI Worldwide's second quarter results for 2023 exceeded expectations, with recurring revenue and profitability improvements in the Biller segment.

Key Takeaways

ACI Worldwide reported Q2 2023 results with total revenue of $323 million, a 2% decrease compared to the same period in 2022. Recurring revenue grew 5% year-over-year. The company reported a net loss of $7 million and adjusted EBITDA of $57 million. The company is reiterating its full-year 2023 guidance.

Recurring revenue grew 5%, adjusting for FX and divestiture.

Bank segment recurring revenue grew 13%, adjusting for FX and divestiture.

Biller segment revenue grew 5%.

Improvement in Biller segment profitability.

Total Revenue
$323M
Previous year: $340M
-5.0%
EPS
$0.15
Previous year: $0.29
-48.3%
Gross Profit
$142M
Previous year: $161M
-11.9%
Cash and Equivalents
$132M
Previous year: $119M
+11.3%
Free Cash Flow
$15.1M
Previous year: $37.5M
-59.7%
Total Assets
$3.07B
Previous year: $3.22B
-4.7%

ACI Worldwide

ACI Worldwide

ACI Worldwide Revenue by Segment

Forward Guidance

The company expects revenue to be between $335 million and $345 million and adjusted EBITDA of $70 million to $80 million in Q3 2023. For the full year of 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.

Positive Outlook

  • 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 for full year 2023.
  • Expects adjusted EBITDA to be in the range of $380 million to $395 million for full year 2023.
  • Expects net adjusted EBITDA margin expansion for full year 2023.
  • Expects revenue to be between $335 million and $345 million in Q3 2023.
  • Expects adjusted EBITDA of $70 million to $80 million in Q3 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income