Q2 2024 ACI Worldwide Inc Earnings Call Transcript
Key Points
- ACI Worldwide Inc (ACIW) reported a 16% year-over-year increase in total revenue for Q2 2024, surpassing expectations.
- The Biller segment saw a record 13% increase in gross revenue and a 20% rise in EBITDA, driven by onboarding new customer transaction volumes and strong tax-related volumes.
- The Bank segment experienced a 22% increase in revenue and a 53% rise in EBITDA, with significant renewal contracts and strategic expansions, including a partnership with a top bank in Malaysia.
- The company raised its full-year guidance for both revenue and adjusted EBITDA, reflecting confidence in continued strong performance.
- ACI Worldwide Inc (ACIW) was recognized by CNBC as one of the world's top FinTech companies for 2024, highlighting its industry leadership and innovation.
- The Biller segment's outperformance in Q2 is not expected to continue at the same level in Q3 or Q4 due to its seasonal nature.
- The Merchant segment's revenue growth was only 4%, which is slower than desired, although EBITDA grew by 55%.
- Despite early renewal signings, revenue from these contracts cannot be recognized until later in the year, which may affect short-term financial results.
- The company faces challenges in maintaining the momentum of new logo acquisitions, particularly in the Biller segment.
- There is uncertainty regarding the timing and impact of cross-border real-time payments, which could affect future growth projections.
Ladies and gentlemen, thank you for standing by. At this time, I would like to welcome everyone to ACI Worldwide, Inc. Second Quarter 2024 Financial Results. (Operator Instructions) Thank you.
I would now like to turn the conference over to John Kraft. Please go ahead.
Thank you, and good morning, everyone. On today's call, we will discuss the company's second quarter 2024 results and financial outlook for the rest of the year. We will take your questions at the end. The slides accompanying this call and webcast can be found at aciworldwide.com under the Investor Relations tab and will remain available after the call.
Today's call is subject to safe harbor and forward-looking statements like all of our events. You can find the full text of both statements in our presentation deck and earnings release, both of which are available on our website and with the SEC.
On this morning's call is Tom Warsop, our President and CEO; and Scott Behrens, our CFO. Before I turn it over, I
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