Thu, May 8, 3:49 PM (7 days ago)
**ACI Worldwide, Inc. (ACIW) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $394.6 million, up 25% YoY, driven by SaaS, license, and services revenue growth. - **Net Income:** $58.9 million, a significant improvement from a loss of $7.8 million in Q1 2024. - **Operating Income:** $58.5 million, up from $9.6 million in Q1 2024. - **Cash Flow from Operations:** $78.2 million, down from $123.2 million in Q1 2024 due to lower collections and higher taxes. - **Cash and Cash Equivalents:** $230.1 million, with $117.3 million held by foreign subsidiaries. - **Debt:** $845.9 million, with $453.1 million under term loans and $400 million in senior notes. **Profit Margins:** - **Operating Margin:** 14.8% (up from 3.0% in Q1 2024). - **Net Margin:** 14.9% (up from -2.5% in Q1 2024). **Segment Performance:** - **Payment Software:** Revenue up 42% YoY to $200.7 million, driven by license and services growth. - **Biller:** Revenue up 11% YoY to $193.8 million, with increased transaction volumes. **Trends and Uncertainties:** - **Growth Drivers:** Digital payment adoption, real-time payments, cloud technology, and payments intelligence. - **Uncertainties:** Economic conditions, regulatory changes, and foreign currency fluctuations. **Future Operations Impact:** - **Investments:** Continued focus on R&D, strategic acquisitions, and cloud technology. - **Liquidity:** Strong liquidity position with $828.2 million in total liquidity. - **Stock Repurchase:** $14.4 million spent on stock repurchases, with $358.1 million remaining under the program. **Market Risks:** - **Foreign Currency:** Exposure to fluctuations in foreign currency exchange rates. - **Interest Rates:** Floating rate debt exposes the company to interest rate changes. **Controls and Procedures:** - Effective disclosure controls and procedures as of March 31, 2025. - No material changes in internal control over financial reporting. **Legal and Risk Factors:** - No material legal proceedings or changes in risk factors from the previous year. **Stock Performance:** - Basic EPS: $0.56 (up from -$0.07 in Q1 2024). - Diluted EPS: $0.55 (up from -$0.07 in Q1 2024). **Conclusion:** ACI Worldwide demonstrated strong financial performance in Q1 2025, with significant revenue and earnings growth. The company's strategic focus on digital payments, real-time payments, and cloud technology positions it well for future growth. However, it faces uncertainties related to economic conditions, regulatory changes, and foreign currency fluctuations.