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ACIW Nasdaq· ACI Worldwide Inc.
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ACIW Nasdaq· ACI Worldwide Inc.
Earnings report Q4 2023

ACIW Reports Steady Revenue Growth in Latest Quarter

Segments of Revenue

ACI Worldwide, Inc. reported total revenues of $1.45 billion in the latest quarter. The breakdown of revenue by segment is as follows:

  • Software as a service and platform as a service (SaaS and PaaS): $849.1 million
  • License: $321.2 million
  • Maintenance: $205.1 million
  • Services: $77.1 million

Strengths

ACIW demonstrated steady revenue growth in the latest quarter. The SaaS and PaaS segment saw a significant increase of $63.8 million, or 8%, compared to the same period in the previous year. This growth can be attributed to higher transaction volumes and new customer go-lives since the end of the previous year. The company's management highlighted the positive impact of these factors on the overall revenue performance.

Challenges

While ACIW's overall revenue showed growth, the license revenue segment experienced a slight decline. The revenue decreased from $348.1 million in the previous year to $321.2 million in the latest quarter. This decline may be attributed to various factors, such as changes in customer demand or competitive pressures. It is important for ACIW to address these challenges and focus on strategies to stabilize and potentially increase license revenue in the future.

Noteworthy

ACIW's revenue growth in the SaaS and PaaS segment was adjusted for the impact of divestiture and foreign currency. The adjusted revenue increase of $63.8 million indicates the underlying strength of the company's core business. Additionally, the company's management highlighted the positive impact of higher transaction volumes and new customer go-lives on the revenue growth.

Summary

ACIW reported steady revenue growth in the latest quarter, driven by a significant increase in the SaaS and PaaS segment. The company's management attributed this growth to higher transaction volumes and new customer go-lives. However, the license revenue segment experienced a slight decline, indicating potential challenges in customer demand or competitive pressures. ACIW should focus on addressing these challenges and leveraging the strength of its core business to drive future revenue growth.

Source documents

Form 10-K  filed on Feb 29, 2024
131 pages scanned

Reference data

Company financials Q4 revenue 477M
Analyst estimates Q4 EPS beat by 348.24%
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