ACI Worldwide Rises 6% on Earnings Beat and Positive Guidance

OMAHA – ACI Worldwide (NASDAQ: ACIW) saw its shares surge by 6% after announcing its second quarter financial results, which exceeded analysts’ expectations in both earnings and revenue.

The company reported an adjusted earnings per share (EPS) of $0.47, vastly outperforming the consensus estimate of $0.07. Revenue for the quarter reached $373 million, surpassing the anticipated $349.58 million.

This strong performance represents a 16% increase in revenue compared to the same quarter last year. Additionally, net income showed a significant recovery, moving from a $7 million loss in Q2 2023 to a profit of $31 million in Q2 2024. Adjusted EBITDA also rose substantially, increasing by 62% year-over-year, while cash flow from operating activities jumped by 215% from the previous year.

Thomas Warsop, President and CEO of ACI Worldwide, expressed his satisfaction with the financial results, stating, "We are pleased to report another quarter of strong growth in revenue and adjusted EBITDA, with both exceeding our financial guidance." He credited the successful quarter to the company’s strategic focus and execution, which included key initiatives and investments designed to position ACI Worldwide for sustainable, profitable growth.

In response to this strong performance, ACI Worldwide has updated its full-year 2024 guidance, now expecting revenue between $1.557 billion and $1.591 billion, an increase from the previous range of $1.547 billion to $1.581 billion. The midpoint of the revised guidance is above the analyst consensus of $1.56 billion.

Furthermore, the company expects adjusted EBITDA to be in the range of $423 million to $438 million. For the third quarter of 2024, ACI Worldwide is forecasting revenue between $400 million and $410 million.

The positive earnings announcement was complemented by a $400 million share repurchase authorization, with ACI already having repurchased 1.7 million shares for about $57 million during the second quarter.

ACI Worldwide’s financial stability is illustrated by a cash position of $157 million and a net debt leverage ratio of 1.9x. Furthermore, the company’s various segments demonstrated growth, with revenue from the Bank segment increasing by 22% and the Merchant and Biller segments seeing revenue growth of 4% and 13%, respectively.