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Dec 31, 2020

ACI Worldwide Q4 2020 Earnings Report

ACI Worldwide reported strong Q4 2020 financial results, driven by the execution of its three-pillar strategic plan.

Key Takeaways

ACI Worldwide announced financial results for the quarter and full year ended December 31, 2020, with revenue of $1.294 billion for the full year, up 3% from 2019. The company's Q4 performance contributed to a strong finish to the year, and management expressed confidence in achieving the rule of 40 in 2021.

Full year 2020 total bookings were $1.495 billion, up 21% from 2019.

Full year 2020 revenue was $1.29 billion, up 3% from $1.26 billion in 2019.

Net income in 2020 was $73 million, up 8% from $67 million in 2019.

ACI ended 2020 with $165 million in cash on hand and a debt balance of $1.2 billion.

Total Revenue
$387M
Previous year: $400M
-3.2%
EPS
$0.84
Previous year: $0.47
+78.7%
Gross Profit
$236M
Previous year: $227M
+4.2%
Cash and Equivalents
$165M
Previous year: $121M
+36.2%
Free Cash Flow
$141M
Previous year: $44.4M
+216.9%
Total Assets
$3.39B
Previous year: $3.26B
+4.0%

ACI Worldwide

ACI Worldwide

ACI Worldwide Revenue by Segment

Forward Guidance

ACI Worldwide expects COVID-19-related headwinds to persist through the first half of 2021 and for growth to accelerate to the mid-single digits in the second half of the year. For Q1 2021, the company expects revenue to be between $270 million and $280 million and adjusted EBITDA of $25 million to $35 million.

Challenges Ahead

  • COVID-19-related headwinds are expected to persist through the first half of 2021.
  • Revenue to be between $270 million and $280 million in Q1 2021.
  • Adjusted EBITDA of $25 million to $35 million in Q1 2021.

Revenue & Expenses

Visualization of income flow from segment revenue to net income