Core Viewpoint - ACI Worldwide (ACIW) has shown significant stock performance, gaining 55.8% year to date, outperforming the Zacks Computer-Software industry's growth of 7.1% [1] Group 1: Performance Metrics - ACIW has outperformed both the Zacks Computer and Technology Sector and the S&P 500 index, which returned 13.6% and 14.4% year to date, respectively [1] - In the second quarter of 2024, ACIW's biller segment revenues increased by 13% year over year, while bank segment revenues grew by 22% year over year [3] Group 2: Business Growth and Opportunities - ACIW has been able to grow its top line through higher transaction volumes in the biller segment and is seeing more deals in its banking segment [2] - The company is capitalizing on international opportunities, particularly in the Asia-Pacific market, where competitors are discontinuing product support [2] - ACI Worldwide has secured major contracts with various organizations to modernize payment solutions and improve instant payment infrastructure [2] Group 3: Competitive Landscape - ACIW faces intense competition in the electronic payment software space from companies like Fiserv, NCR Voyix, Jack Henry & Associates, Payoneer Global, Nuvei Corporation, and Paymentus Holdings [4][5] - In the merchant payments space, NCR Voyix competes with ACI Payments Orchestration Platform, while in bill payments, ACIW competes with Jack Henry & Associates, Paymentus, and Fiserv [5] Group 4: Valuation Concerns - ACIW's stock is currently trading at a forward 12-month price-to-earnings multiple of 30.62X, significantly higher than the industry average of 19.22X and its peers [5] - The impressive year-to-date share price performance has driven ACIW's valuation to elevated levels, suggesting a potential market correction or consolidation could provide better investment opportunities [6]

Group 1 - ACI Worldwide (ACIW) has gained approximately 61.7% year-to-date, significantly outperforming the Computer and Technology sector, which has returned an average of 23.4% [2][3] - The Zacks Consensus Estimate for ACIW's full-year earnings has increased by 2.8% over the past quarter, indicating improved analyst sentiment [2] - ACI Worldwide is part of the Computer - Software industry, which has seen a year-to-date gain of about 10.6%, further highlighting ACIW's strong performance relative to its industry peers [3] Group 2 - Celestica (CLS) has also outperformed the sector with a year-to-date return of 81.5% [2] - The Electronics - Manufacturing Services industry, to which Celestica belongs, has returned +8.7% so far this year, ranking 102 in the Zacks Industry Rank [3] - ACI Worldwide currently holds a Zacks Rank of 2 (Buy), while Celestica has a Zacks Rank of 1 (Strong Buy), indicating strong potential for both stocks [2][3]

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For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Is ACI Worldwide (ACIW) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.ACI Worldwide is a member of our Computer and Technology group, which includes 617 different companies and currently sits at #8 in the Zacks Sector Rank. T ...

ACI Worldwide Inc. (NASDAQ:ACIW) Q2 2024 Results Conference Call August 1, 2024 8:30 AM ET Company Participants John Kraft - Head of Strategy & Finance Tom Warsop - CEO, President & Director Scott Behrens - Executive VP, CFO & Chief Accounting Officer Conference Call Participants Pallav Saini - Canaccord Genuity Peter Heckmann - D.A. Davidson Charles Nabhan - Stephens George Sutton - Craig-Hallum Capital Group Trevor Williams - Jefferies Jeff Cantwell - Seaport Research Operator Ladies and gentlemen, thank ...

ACI Worldwide (ACIW) reported $373.48 million in revenue for the quarter ended June 2024, representing a year-over-year increase of 15.5%. EPS of $0.47 for the same period compares to $0.15 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $349.95 million, representing a surprise of +6.72%. The company delivered an EPS surprise of +113.64%, with the consensus EPS estimate being $0.22. While investors scrutinize revenue and earnings changes year-over-year and how they compare with ...

Exhibit 99.1 ACI Worldwide, Inc. Reports Financial Results for the Quarter Ended June 30, 2024 Q2 2024 HIGHLIGHTS • Revenue up 16% versus Q2 2023 • Net income of $31 million, up $38 million from Q2 2023 • Adjusted EBITDA up 62% versus Q2 2023 • Cash flow from operating activities of $55 million up 215% versus Q2 2023 • Announced $400 million share repurchase authorization • Repurchased 1.7 million shares for $57 million • Raising guidance range for full-year 2024 Omaha, NE — August 1, 2024 — ACI Worldwide ( ...

Financial Performance - Total revenue for the three months ended June 30, 2024, increased by $50.2 million, or 16%, compared to the same period in 2023[120]. - Total revenue for the six months ended June 30, 2024, increased by $76.5 million, or 12%, compared to the same period in 2023[145]. - Total revenue for the three months ended June 30, 2024, was $373.5 million, a 15.6% increase from $323.3 million in the same period of 2023[163]. - Adjusted for foreign currency impact, total revenue for the six months ended June 30, 2024, increased by $77.0 million, or 13%, compared to the same period in 2023[145]. - Net income for the six months ended June 30, 2024, was $23.1 million, compared to a net loss of $39.0 million in the same period in 2023[144]. Revenue Breakdown - SaaS and PaaS revenue increased by $25.7 million, or 12%, during the three months ended June 30, 2024, driven by new customer go-lives and higher transaction volumes[123]. - License revenue increased by $20.9 million, or 47%, during the three months ended June 30, 2024, primarily due to license renewal timing and new license events[126]. - Maintenance revenue decreased by $2.7 million, or 5%, during the three months ended June 30, 2024, attributed to customers reducing premium support on non-strategic products[127]. - Services revenue increased by $6.2 million, or 35%, during the three months ended June 30, 2024, driven by project-related work[129]. - SaaS and PaaS revenue increased by $36.5 million, or 9%, during the six months ended June 30, 2024, compared to the same period in 2023[147]. - License revenue increased by $32.6 million, or 52%, during the six months ended June 30, 2024, compared to the same period in 2023[148]. - Maintenance revenue decreased by $5.0 million, or 5%, during the six months ended June 30, 2024, compared to the same period in 2023[149]. - Services revenue increased by $12.4 million, or 37%, during the six months ended June 30, 2024, compared to the same period in 2023[150]. Operating Expenses - Total operating expenses increased by $7.0 million, or 2%, during the three months ended June 30, 2024, with significant transaction-related expenses impacting the total[130]. - Total operating expenses for the six months ended June 30, 2024, decreased by $0.6 million compared to the same period in 2023[151]. - General and administrative expense decreased by $11.9 million, or 19%, during the six months ended June 30, 2024, compared to the same period in 2023[157]. - Interest expense for the six months ended June 30, 2024, decreased by $1.3 million, or 3%, compared to the same period in 2023[159]. Cash Flow and Liquidity - Cash flows from operating activities for the six months ended June 30, 2024, were $178.3 million, significantly higher than $57.5 million in the same period of 2023[172]. - Cash and cash equivalents as of June 30, 2024, totaled $157.0 million, with $61.0 million held by foreign subsidiaries[167]. - Total liquidity increased to $619.1 million as of June 30, 2024, primarily due to a $100.0 million increase in the revolving credit facility[168]. - The company used $24.0 million for capital expenditures during the first six months of 2024, compared to $19.6 million in the same period of 2023[175]. - The company repaid a net $38.4 million on the Term Loan during the first six months of 2024[177]. Debt and Interest Rates - As of June 30, 2024, the company had approximately $1.0 billion of debt outstanding[182]. - The Credit Facility had $617.3 million outstanding with a floating interest rate of 7.44% as of June 30, 2024[182]. - The 2026 Notes are fixed-rate long-term debt obligations with a 5.750% interest rate[182]. - A hypothetical 10% increase or decrease in effective interest rates would change interest income by $0.2 million annually[182]. - A hypothetical 10% increase or decrease in effective interest rates would affect interest expense related to the Credit Facility by approximately $4.6 million[182]. Strategic Initiatives - ACI Worldwide processes $14 trillion in payments daily for over 6,000 organizations globally[100]. - The company's 60-month backlog as of June 30, 2024, totals $6.368 billion, with committed backlog at $2.362 billion and renewal backlog at $4.006 billion[116]. - Digital payment transaction volumes are increasing, driven by the digitization of cash and the growth of eCommerce, with COVID-19 accelerating this trend[103]. - ACI is positioned as a leader in real-time payments, leveraging partnerships with Mastercard, Microsoft, and Mindgate Solutions to enhance connectivity and security[104]. - The adoption of cloud technology is a key focus, with ACI optimizing its products on Microsoft Azure to support customer cloud strategies[105]. - The company is actively pursuing acquisitions to enhance its solution offerings and access new markets[111]. - ACI's omni-commerce strategy aims to provide seamless payment experiences across various channels, responding to changing consumer behaviors[107]. - The Request for Payment (RfP) service is being introduced globally, enhancing secure payment requests between consumers and billers[108]. - ACI's financial results are subject to risks including currency fluctuations and customer contract renewals, which may affect revenue recognition[110]. Market Conditions - Inflationary pressures have impacted financial performance, particularly in interchange costs associated with the Biller segment[99].

ACI Worldwide (ACIW) came out with quarterly earnings of $0.47 per share, beating the Zacks Consensus Estimate of $0.22 per share. This compares to earnings of $0.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 113.64%. A quarter ago, it was expected that this maker of software for electronic payments would post a loss of $0.03 per share when it actually produced earnings of $0.10, delivering a surprise of 433.33%.Over the ...