Bank Segment Adjusted EBITDA: $42 million, up nearly 70% compared to Q1 2023.
Merchant Segment Adjusted EBITDA: $11 million, up 63% compared to Q1 last year.
Biller Segment Adjusted EBITDA: $31 million, up 4% compared to Q1 last year.
Cash Flow from Operations: $123 million, approximately 3x compared to Q1 last year.
Share Repurchase: Approximately 2 million shares for $63 million in capital in Q1; 1 million additional shares repurchased in April Q2 2024.
Future Guidance
Revised Revenue Guidance for 2024: Now expected to be in the range of $1.547 billion to $1.581 billion, up from the previous range.
Adjusted EBITDA Guidance for 2024: Now expected to be in the range of $418 million to $433 million.
Q2 2024 Revenue Forecast: Expected to be in the range of $345 million to $355 million.
Q2 2024 Adjusted EBITDA Forecast: Expected to be $60 million to $70 million.
Share Repurchase Authorization Remaining: $110 million as of the end of Q1.
Trends, Market Conditions, Sentiment
SaaS Demand Acceleration: There is an accelerating demand for SaaS solutions, particularly from mid-sized banking institutions, leading to overperformance in SaaS transaction-based business.
Real-Time Payments Growth: Significant growth, especially outside the U.S., is seen in real-time payments, driven by regulatory mandates, with an expected compound annual growth rate of 16.7% globally through 2028.
Focus on Bank Segment: The bank segment remains a key focus, with noted increases in issuing and acquiring solutions as well as fraud management and real-time payment products, indicating a strong market demand and ACI’s competitive positioning.
AI Application: Substantial productivity improvements are being driven by AI-powered tools across the company, especially in fraud detection and prevention, highlighting the technological evolution and innovation within ACI’s product offerings.
Platform Consolidation: In the Biller segment, platform consolidation efforts are progressing well, expected to lead to productivity gains and cost efficiencies.
Notable Quotes
Thomas Warsop: “We’re delivering on our promises to the investment community and I remain confident in the team and our ability to achieve our goals.”
Scott Behrens: “We’re seeing pretty strong growth in our Biller business…and that’s where we have regulatory mandates that require the implementation of real-time systems.”
Thomas Warsop on AI & Fraud Detection: “Our fraud detection and prevention businesses continue to gain traction…these solutions are all AI-powered and we believe, best-in-class.”
Thomas Warsop on Banking Opportunities: “We’re seeing accelerating SaaS demand…These institutions are seeking the highest levels of scalability and reliability that ACI is so well known for.”
