Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — FY2019 Earnings Presentation
19 slides from Aci Worldwide's earnings presentation, Feb 27, 2020
Slide 1: Quarterly and Full-Year 2019 Earnings Presentation
Exhibit 99.2 ACI WORLDWIDE February 27, 2020 QUARTERLY AND FULL-YEAR 2019 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: Year in Review
Year in Review Craig Saks Interim President and Chief Executive Officer 3
Slide 4: 2019 Year in Review
2019 Year in Review ◦ 2019 revenue up 25% ◦ Adjusted EBITDA grew 23% ◦ Speedpay acquisition materially improved profitability of ACI On Demand ◦ ACI recurring revenue increased to more than 70% ◦ 2020 pipeline is strong 4
Slide 5: Financial Review
Financial Review Scott Behrens Chief Financial Officer 5
Slide 6: Key Takeaways from the Year
Key Takeaways from the Year • Bookings – Total bookings were $1.2 billion in 2019 • Backlog* – 12-month backlog of $1.1 billion, up $18 million – 60-month backlog of $5.8 billion, up $144 million • Revenue and Adjusted EBITDA – On Demand revenue increased 57% from 2018 – On Demand net adjusted EBITD
Slide 7: 2020 Guidance
2020 Guidance 2019 2020 Guidance Growth 2020 Guidance (millions) Actuals Low High Over 2019 Revenue $1,258 $1,480 $1,510 18-20% Adjusted EBITDA $308 $425 $445 38-44% ◦ 2019 actuals includes partial year contribution of $228 million from Speedpay, acquired May 9, 2019; on a pro forma basis, Speedpay
Slide 8: Appendix
Appendix 8
Slide 9: Recurring Revenue
Recurring Revenue For the Three Months Ended For the Years Ended December 31, December 31, Recurring Revenue (millions) 2019 2018 2019 2018 SaaS and PaaS fees $ 203.7 $ 110.6 $ 677.7 $ 433.0 Maintenance fees 53.7 53.0 213.4 219.1 Recurring Revenue $ 257.4 $ 163.6 $ 891.1 $ 652.1 9
Slide 10: Historic Bookings By Quarter
Historic Bookings By Quarter (thousands) Bookings Mix by Category New Accounts / Add-on Term Quarter-End Total Bookings New Applications Business 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 $213,366 $74,978 $67,818
Slide 11: Adjusted EBITDA and Segmented Data
Adjusted EBITDA and Segmented Data For the Three Months Ended For the Years Ended Adjusted EBITDA (millions) December 31, December 31, 2019 2018 2019 2018 Net income $ 55.5 $ 87.7 $ 67.1 $ 68.9 Plus: Income tax expense 35.2 21.1 5.1 22.9 Net interest expense 15.2 7.0 52.1 30.4 Net other (income) exp
Slide 12: Adjusted Operating Free Cash Flow and 60-Month Backlog
Adjusted Operating Free Cash Flow and 60-Month Backlog For the Three Months Ended For the Years Ended Reconciliation of Adjusted Operating Free Cash Flow (millions) December 31, December 31, 2019 2018 2019 2018 Net cash flows from operating activities $ 48.7 $ 83.5 $ 137.6 $ 183.9 Net after-tax paym
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 For the Three Months Ended December 31, (millions) 2019 2018 $ in Millions $ in Millions EPS Impact (Net of Tax) EPS Impact (Net of Tax) GAAP net income $ 0.47 $ 55.5 $ 0
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, one-time charges to implement cost reduction strategies, as well as other significant non-cash expe
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 and net after-tax payments associated with significant transaction-related expenses, less capital expenditures. Adjusted operating free cash flow is con
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 estimates are derived using the following key assumptions: • License arrangements are assumed to renew at the end of their committed term or under the renewal option st
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