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Sep 30, 2022

ACI Worldwide Q3 2022 Earnings Report

ACI Worldwide's Q3 2022 financial results were reported.

Key Takeaways

ACI Worldwide reported Q3 2022 revenue of $307 million, a 1% increase adjusted for FX and divestiture. Net income was $23 million, and new ARR bookings increased by 35%. The company reaffirmed its full-year 2022 revenue guidance on a constant currency basis.

Revenue was $307 million, up 1% adjusted for FX and Corporate Online Banking divestiture.

Net income reached $23 million.

New ARR bookings increased by 35% compared to Q3 2021.

Full-year 2022 revenue guidance was reaffirmed on a constant currency basis.

Total Revenue
$307M
Previous year: $317M
-3.3%
EPS
$0.11
Previous year: $0.31
-64.5%
Gross Profit
$135M
Previous year: $158M
-14.8%
Cash and Equivalents
$135M
Previous year: $141M
-4.7%
Free Cash Flow
$29.7M
Previous year: $34.8M
-14.5%
Total Assets
$3.26B
Previous year: $3.18B
+2.5%

ACI Worldwide

ACI Worldwide

Forward Guidance

ACI is reiterating its full-year 2022 revenue guidance on a constant currency basis, expecting revenue to be in the range of $1.39 billion to $1.405 billion. Adjusted EBITDA is expected to be in the range of $365 million to $380 million.

Positive Outlook

  • Reaffirming full-year 2022 revenue guidance on a constant currency basis.
  • Actions to mitigate the impact of inflationary pressures are beginning to pay off.
  • Continued strong new ARR bookings.
  • New business momentum across segments enhances confidence in accelerating growth.
  • On track to launch next-generation, real-time payments cloud platform in 2023.

Challenges Ahead

  • Foreign exchange rates are impacting EBITDA in the near term.
  • Inflationary pressures on the interchange component of the Biller segment are impacting EBITDA in the near term.
  • Bank segment revenue declined 11%, or 4% adjusted for FX and the divestiture.
  • Merchant segment revenue decreased 9%, or 3% adjusted for FX.
  • Biller segment adjusted EBITDA was down 18%.