The following is a summary of the ACI Worldwide Inc. (ACIW) Q1 2024 Earnings Call Transcript:
Financial Performance:
ACI Worldwide reported a 9% YoY revenue increase to $316 million in Q1 2024, higher than expected.
They reported the early signing of $20 million in high-margin license contracts, which will impact the income statement later in the year.
Segment revenue for banking increased by 20%. Revenues from issuing and acquiring, fraud management, and real-time payment products grew by 17%, 23%, and 28%, respectively. This resulted in a 69% YoY EBITDA growth.
Merchant segment revenue and EBITDA showed growth at 3% and 63% respectively.
Biller segment revealed a 5% revenue growth and a 4% EBITDA growth.
Business Progress:
ACI continued to secure many contracts, including expansion deals with new and existing global clients.
Demand for SaaS in the banking segment is accelerating, particularly from smaller institutions that want to benefit from ACI's scalable and reliable solutions.
Development on the payments hub is progressing well, with significant productivity improvements thanks to the application of AI-powered tools.
ACI's AI-powered solutions in the fraud detection and prevention business continue to gain appeal and positive feedback from stakeholders.
Due to a strong start of the year, guidance for 2024 increased with a projected revenue range of $1.547 billion to $1.581 billion, and an EBITDA between $418 million and $433 million.
More details: ACI Worldwide IR
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