ACI Worldwide - $ACIW - Earnings Analysis: Total revenue of $1.594 billion grew 10% in 2024.
Business Model
ACI Worldwide generates revenue through software as a service (SaaS), platform as a service (PaaS), license fees, maintenance fees, and services.
Revenue Sources
- Software as a service and platform as a service fees
- License fees
- Maintenance fees
- Services
Income Statement Analysis
- Total revenues decreased by 4.94% from Q4 2023 to Q4 2024.
- Operating income decreased by 29.03% from Q4 2023 to Q4 2024.
- Net income decreased by 19.62% from Q4 2023 to Q4 2024.
Balance Sheet Analysis
- Total assets decreased by 12.17% from 2023 to 2024.
- Total stockholders' equity increased by 7.55% from 2023 to 2024.
- Total liabilities decreased from $2,120,442 in 2023 to $1,600,966 in 2024.
Cash Flow Analysis
- Net cash flows from operating activities increased by 47.52% from Q4 2023 to Q4 2024.
- Net cash flows from investing activities decreased by 85.07% from Q4 2023 to Q4 2024.
- Net cash flows from financing activities decreased by 84.64% from Q4 2023 to Q4 2024.
Capital Allocation
ACI Worldwide repurchased approximately 3.9 million shares for $128 million in 2024. At the end of 2024, the company had $373 million remaining available on the share repurchase authorization. The company's net debt leverage ratio is 1.5x adjusted EBITDA.
Management Commentary
We are proud to have finished 2024 with stronger results than we expected across our key financial metrics, and that strength has continued as we start 2025.
Building on our momentum and track record of success, we are entering 2025 from a position of strength, both financially and operationally.
Biller segment adjusted EBITDA decreased 8% versus 2023 due to certain one-time margin benefits that did not recur in 2024.
Overall Sentiment: Positive, with confidence in the company's ability to continue driving strong financial performance and increasing shareholder value.
Disclaimer: This report is for informational purposes only and not investment advice. The analysis is based on limited information and subject to change. Investing in securities involves risks, including potential loss of principal. Past performance doesn't guarantee future results. Always conduct your own research, understand the risks, and consult a financial professional before making investment decisions.