Slide 1: Quarterly and Year-End Results December 31, 2014
Exhibit 99.2 Quarterly and Year-End Results December 31, 2014 ACI Worldwide February 26, 2015
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: Annual Overview
ANNUAL OVERVIEW Phil Heasley Chief Executive Officer
Slide 4: 2014 in Review
2014 in Review • SNET bookings up 17% • Strong market interest in Universal Payments • Better-than-expected demand for new applications and hosted solutions • Large UP contracts in pipeline progressing • Completed acquisition of Retail Decisions (ReD) • Non-GAAP Revenue up 17% • Adjusted EBITDA up 9
Slide 5: Financial Review
FINANCIAL REVIEW Scott Behrens Chief Financial Officer
Slide 6: Key Takeaways from the Quarter
Key Takeaways from the Quarter • Sales Bookings Q4 SNET up 10% • Backlog 60-month backlog of $4.2 billion, up $79 million from Q3 2014, after adjusting for foreign currency fluctuations 12-month backlog of $903 million, up $13 million from Q3 2014, after adjusting for foreign currency fluctuations •
Slide 7: Key Takeaways from the Year
Key Takeaways from the Year • Sales Bookings 2014 new sales bookings up 17%, or 10% excluding Official Payments and ReD Total sales bookings exceed $1 billion Hosted bookings growth up 61% over last year Impacts timing of revenue recognition • Revenue Growth Non-GAAP revenue growth of 17%, down 2% o
Slide 8: 2015 Guidance
2015 Guidance 2014 Incremental FX 2014 2015 Non-GAAP Key Metrics Actual ReD ImpactImpact* Pro Forma Guidance Low High Non-GAAP Revenue 1,018 28 (23) 1,023 1,050 1,080 Adjusted EBITDA 261 6 - 267 280 290 $s in millions, foreign currency rates as of 12/31/14 • Guidance - 2014 Pro forma adjusted to ref
Slide 9: Appendix
UNIVERSAL PAYMENTS hC APPENDIX
Slide 10: Monthly Recurring Revenue
Monthly Recurring Revenue Quarter Ended Monthly Recurring Revenue (millions) December 31, 2014 2013 Monthly Software license fees $22.9 $23.4 Maintenance fees 67.4 60.3 Processing services 112.6 91.9 Monthly Recurring Revenue $202.8 $175.6 MEETS THE CHALLENGE OF CHANGE 10
Slide 11: Historic Sales Bookings By Quarter 2012-2014
Historic Sales Bookings By Quarter 2012-2014 Sales Mix by Category Add-on Business inc. Capacity Total Economic New Accounts / Upgrades & Quarter-End Value of Sales New Applications Services Term Extension 12/31/2012 $309,143 $52,206 $145,917 $111,020 12% 53% 34% 3/31/2013 $111,588 $5,778 $70,736 $3
Slide 12: Sales Bookings, Net of Term Extensions (SNET)
Sales Bookings, Net of Term Extensions (SNET) Sales Net of Term Extensions Qtr Ended Qtr Ended % Growth or Channel Dec 14 Dec 13 Decline Americas $144,422 $117,011 23.4% EMEA 105,631 104,408 1.2% Asia-Pacific 22,306 25,175 -11.4% Total Sales (Net of Term Ext.) $272,358 $246,594 10.4% MEETS THE CHALL
Slide 13: Non-GAAP Operating Income
Non-GAAP Operating Income Quarter Ended Non-GAAP Operating Income (millions) December 31, 2014 2013 Operating income $79.3 $86.0 Plus: Deferred revenue fair value adjustment 0.3 0.9 Employee related actions 3.4 1.2 Facility closure costs - 1.2 Significant transaction related expenses 2.9 4.5 Non-GAA
Slide 14: Adjusted EBITDA
Adjusted EBITDA Quarter Ended Adjusted EBITDA (millions) December 31, 2014 2013 Net income $46.4 $50.4 Plus: Income tax expense 23.3 24.1 Net interest expense 10.7 9.7 Net other expense (income) (1.1) 1.8 Depreciation expense 5.4 5.2 Amortization expense 18.0 15.0 Non-cash compensation expense (2.7)
Slide 15: Operating Free Cash Flow
Operating Free Cash Flow Reconciliation of Operating Free Cash Flow (millions) Quarter Ended December 31, 2014 2013 Net cash provided by operating activities $77.0 $51.9 Payments associated with cash settlement of acquisition related options - 10.2 Payments associated with acquired opening balance s
Slide 16: 60-Month Backlog
60-Month Backlog Quarter Ended Backlog 60-Month (millions) December 31, December 31, 2014 2013 Americas $3,014 $2,831 EMEA 855 747 Asia/Pacific 291 283 Backlog 60-Month $4,160 $3,861 Deferred Revenue $181 $168 Other 3,979 3,693 Backlog 60-Month $4,160 $3,861 MEETS THE CHALLENGE OF CHANGE 16
Slide 17: Backlog as a Contributor of Quarterly Revenue
Backlog as a Contributor of Quarterly Revenue Backlog as Contributor of Revenue (thousands) Quarter Ended December 31, % Growth 2014 2013 Revenue from Backlog $ 268,586 $ 268,845 -0.1% Revenue from Sales 21,638 14,317 51.1% Total Revenue $ 290,224 $ 283,162 2.5% Revenue from Backlog 93% 95% Revenue
Slide 18: Non-Cash Compensation, Acquisition Intangibles and Software, and Significant Transaction Related Expenses
Non-Cash Compensation, Acquisition Intangibles and Software, and Significant Transaction Related Expenses Acquisition Intangibles & Software, Non-cash equity based compensation Quarter Ended (millions) December 31, 2014 2013 $ in Millions $ in Millions EPS Impact EPS Impact (Net of Tax) (Net of Tax)
Slide 19: Contract Duration Metric
Contract Duration Metric • Represents dollar average remaining contract life (in years) for term license software contracts • Excludes perpetual contracts (primarily heritage S1 licensed software contracts) • Excludes all hosted contracts as both cash and revenue are ratable over the contract term M
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement our financial results presented on a GAAP basis, we use the non-GAAP measure indicated in the tables, which exclude certain business combination accounting entries related to the acquisitions of Online Resources and S1 and significant transaction related exp
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures ACI is also presenting operating free cash flow, which is defined as net cash provided by operating activities, plus payments associated with cash settlement of acquisition related options and opening balance sheet liabilities, net after- tax payments associated with empl
Slide 22: 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 23: 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 24: 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 performance of our strategic product, U
Slide 25: Universal Payments
UNIVERSAL PAYMENTS hC