Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — Q3 2020 Earnings Presentation
17 slides from Aci Worldwide's earnings presentation, Nov 5, 2020
Slide 1: ACI Worldwide Q3 2020 Quarterly Earnings Presentation
Exhibit 99.2 ACI WORLDWIDE Q3 2020 QUARTERLY EARNINGS PRESENTATION November 5, 2020
Slide 2: Safe Harbor for Forward-Looking Statements
Private Securities Litigation Reform Act of 1995 Safe Harbor for Forward-Looking Statements This presentation contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. The forward-looking statements are made pursuant to safe harbor provisions
Slide 3: Quarter in Review
Quarter in Review Odilon Almeida President and Chief Executive Officer
Slide 4: YTD Results
YTD Results $907M $203M $192M Revenue Adjusted EBITDA Cash Flow From Operations 6% 25% 116% +158% YTD 2019 YTD 2020 YTD 2019 YTD 2020 YTD 2019 YTD 2020
Slide 5: Three Pillar Strategy for the New ACI
Three Pillar Strategy for the New ACI FIT FOR FOCUSED ON STEP CHANGE GROWTH GROWTH VALUE CREATION Drive Focus Accretive organic growth R&D on M&A to drive through operational growth-rich solutions additional growth discipline and a strong supported and value creation sales culture by innovation • Fi
Slide 6: Financial Review
Financial Review Scott Behrens Chief Financial Officer
Slide 7: Key Takeaways from the Quarter
Key Takeaways from the Quarter $316M $87M $67M Revenue Adjusted EBITDA Cash Flow From Operations +107% -11% -13% Q3 2019 Q3 2020 Q3 2019 Q3 2020 Q3 2019 Q3 2020 - Recurring revenue was 77% of total revenue in Q3 versus 69% in Q3 2019 - ACI On Demand revenue decreased 1% while net adjusted EBITDA mar
Slide 8: Key Takeaways from the Quarter: Liquidity Up and Debt Down
Key Takeaways from the Quarter Despite COVID Headwinds, Liquidity Up and Debt Down • Cash flow from operating activities of $67 million, up 107% compared to Q3 2019 • Ended Q3 with $134 million in cash and $340 million of available credit facility • Paid down $50 million in debt in the quarter • Deb
Slide 9: Appendix
Appendix 9
Slide 10: Supplemental Financial Data: Segment Information
Supplemental Financial Data Three Months Ended Nine Months Ended Segment Information (millions) September 30, September 30, 2020 2019 2020 2019 Revenue ACI On Demand $ 190.4 $ 193.0 $ 563.9 $ 475.3 ACI On Premise 125.5 161.9 343.4 383.1 Total Revenue $ 315.9 $ 354.9 $ 907.3 $ 858.4 Interchange ACI O
Slide 11: Supplemental Financial Data: Adjusted EBITDA
Supplemental Financial Data Three Months Ended Nine Months Ended Adjusted EBITDA (millions) September 30, September 30, 2020 2019 2020 2019 Net income $ 15.9 $ 31.8 $ 5.5 $ 11.6 Plus: Income tax expense (benefit) 6.7 5.1 1.7 (30.0) Net interest expense 10.0 16.0 35.5 36.9 Net other income (expense)
Slide 12: Supplemental Financial Data: Adjusted Operating Free Cash Flow
Supplemental Financial Data Three Months Ended Reconciliation of Adjusted Operating Free Cash Flow (millions) September 30, 2020 2019 Net cash flows from operating activities $ 66.5 $ 32.1 Net after-tax payments associated with significant transaction-related expenses 6.5 2.8 Less: capital expenditu
Slide 13: Supplemental Financial Data: EPS Impact of Non-cash Items
Supplemental Financial Data EPS Impact of Non-cash and Significant Transaction-related Items (millions) Three Months Ended September 30, 2020 2019 $ in Millions $ in Millions EPS Impact (Net of Tax) EPS Impact (Net of Tax) GAAP net income $ 0.13 $ 15.9 $ 0.27 $ 31.8 Adjusted for: Significant transac
Slide 14: Supplemental Financial Data: Bookings, Recurring Revenue, Backlog
Supplemental Financial Data Three Months Ended Nine Months Ended September 30, September 30, Bookings by Type (millions) 2020 2019 2020 2019 New Account & New Application $ 41.1 $ 62.9 $ 167.7 $ 157.9 Add-on 92.3 76.7 222.0 180.2 Term Extensions 185.0 82.6 487.1 296.5 Total Bookings $ 318.4 $ 222.2
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude significant transaction related expenses, as well as other significant non-cash expenses such as depreciation, amortization, and non-cash com
Slide 16: Non-GAAP Financial Measures: Backlog
Non-GAAP Financial Measures ACI also includes backlog estimates, which include all license, maintenance, and services revenue (including SaaS and PaaS) specified in executed contracts, as well as revenues from assumed contract renewals to the extent that we believe recognition of the related revenue
Slide 17: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. Generally, forward-looking statements do not relate strictly to historical or current facts and may include words or phrases such as “belie