Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — Q3 2019 Earnings Presentation
19 slides from Aci Worldwide's earnings presentation, Nov 7, 2019
Slide 1: Q3 2019 Quarterly Earnings Presentation
Exhibit 99.2 ACI WORLDWIDE November 7, 2019 Q3 2019 QUARTERLY EARNINGS PRESENTATION
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 Phil Heasley Chief Executive Officer 3
Slide 4: Quarterly Review
Quarterly Review ◦ New bookings up 12% ◦ Q3 revenue grew 45% ◦ Adjusted EBITDA grew 66% ◦ ACI On Demand margin improvement continues ◦ Repurchased 1.2 million shares 4
Slide 5: Financial Review
Financial Review Scott Behrens Chief Financial Officer 5
Slide 6: Key Takeaways from the Quarter
Key Takeaways from the Quarter • New Bookings – New bookings were $140 million, up 12% from Q3 2018 • Backlog* – 12-month backlog of $1.1 billion, down $37 million from Q2 2019 – 60-month backlog of $5.7 billion, up $21 million from Q2 2019 • Revenue and Adjusted EBITDA – On Demand revenue increased
Slide 7: 2019 Guidance
2019 Guidance 2019 Guidance Low High Revenue 1,315 1,345 Adjusted EBITDA 360 380 $'s in millions ◦ 2019 adjusted operating free cash flow expected to be in the range of $190 million to $200 million ◦ 2019 guidance excludes between $30 million and $35 million in one-time significant transaction-relat
Slide 8: Appendix
Appendix 8
Slide 9: Recurring Revenue
Recurring Revenue Three Months Ended September 30, Recurring Revenue (millions) 2019 2018 SaaS and PaaS fees $ 193.0 $ 104.5 Maintenance fees 52.6 54.4 Recurring Revenue $ 245.6 $ 158.9 9
Slide 10: Historic Bookings By Quarter
Historic Bookings By Quarter Bookings Mix by Category Add-on Business inc. New Accounts Capacity Total / New Upgrades & Term Quarter-End Bookings Applications Services Extension 3/31/2017 $184,492 $20,759 $68,044 $95,689 11% 37% 52% 6/30/2017 $206,094 $53,521 $83,363 $69,209 26% 40% 34% 9/30/2017 $2
Slide 11: Adjusted EBITDA and Segmented Data
Adjusted EBITDA and Segmented Data Three Months Ended Adjusted EBITDA (millions) September 30, 2019 2018 Net income $ 31.8 $ 15.2 Plus: Income tax expense 5.1 2.0 Net interest expense 16.0 9.8 Net other expense 2.4 1.3 Depreciation expense 6.1 6.0 Amortization expense 27.8 17.5 Non-cash stock-based
Slide 12: Adjusted Operating Free Cash Flow and 60-Month Backlog
Adjusted Operating Free Cash Flow and 60-Month Backlog Three Months Ended Reconciliation of Adjusted Operating Free Cash Flow (millions) September 30, 2019 2018 Net cash flows from operating activities $ 32.1 $ 29.4 Net after-tax payments associated with significant transaction-related expenses 2.8
Slide 13: EPS Impact of Non-Cash and Significant Transaction-Related Items
EPS Impact of Non-Cash and Significant Transaction-Related Items EPS impact of non-cash and significant transaction- related items (millions) Three Months Ended September 30, 2019 2018 $ in Millions $ in Millions EPS Impact (Net of Tax) EPS Impact (Net of Tax) GAAP net income $ 0.27 $ 31.8 $ 0.13 $
Slide 14: Contract Duration Metric
Contract Duration Metric ◦ Represents dollar average remaining contract life (in years) for term license software contracts ◦ Excludes perpetual contracts (primarily acquired software contracts) ◦ Excludes all On Demand contracts as both cash and revenue are ratable over the contract term 14
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
Non-GAAP Financial Measures ACI is also presenting adjusted operating free cash flow, which is defined as net cash provided by operating activities, plus net after-tax payments associated with employee-related actions and facility closures, plus net after-tax payments associated with significant tra
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures Backlog is considered a non-GAAP financial measure as defined by SEC Regulation G. Our 60-month backlog estimate represents expected revenues from existing customers using the following key assumptions: ◦ Maintenance fees are assumed to exist for the duration of the licen
Slide 18: 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
Slide 19: Forward-Looking Statements
Forward-Looking Statements All of the foregoing forward-looking statements are expressly qualified by the risk factors discussed in our filings with the Securities and Exchange Commission. Such factors include, but are not limited to, increased competition, the success of our Universal Payments stra