aciw-20230331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________

FORM 10-Q

____________________________________________________________________

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 0-25346

___________________________

ACI WORLDWIDE, INC.

(Exact name of registrant as specified in its charter)

___________________________

Delaware

47-0772104

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

2811 Ponce de Leon Blvd

PH 1

Coral Gables,

Florida

33134

(Address of principal executive offices)

(Zip code)

(305) 894-2200

(Registrant’s telephone number, including area code)

______________________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of the Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of May 2, 2023, there were 108,322,311 shares of the registrant’s common stock outstanding.

Securities registered or to be registered pursuant to Section 12(b) of the Act.

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.005 par value

ACIW

Nasdaq Global Select Market

Table of contents


	TABLE OF CONTENTS

		Page
PART I – FINANCIAL INFORMATION

Item 1	Financial Statements (unaudited)
	Condensed Consolidated Balance Sheets as of March 31, 2023, and December 31, 2022	3
	Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2023 and 2022	4
	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended March 31, 2023 and 2022	5
	Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended March 31, 2023 and 2022	6
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2023 and 2022	7
	Notes to Condensed Consolidated Financial Statements	8

Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3	Quantitative and Qualitative Disclosures About Market Risk	32
Item 4	Controls and Procedures	32

PART II – OTHER INFORMATION

Item 1	Legal Proceedings	32
Item 1A	Risk Factors	32
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	33
Item 3	Defaults Upon Senior Securities	33
Item 4	Mine Safety Disclosures	33
Item 5	Other Information	33
Item 6	Exhibits	34

Signature		35

Table of contents

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

ACI WORLDWIDE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands, except share and per share amounts)


	March 31, 2023		December 31, 2022
ASSETS
Current assets
Cash and cash equivalents	$	142,412	$	124,981
Receivables, net of allowances of $3,179 and $3,779, respectively	342,765		403,781
Settlement assets	413,343		540,667
Prepaid expenses	34,017		28,010
Other current assets	21,499		17,366
Total current assets	954,036		1,114,805
Noncurrent assets
Accrued receivables, net	270,332		297,818
Property and equipment, net	48,327		52,499
Operating lease right-of-use assets	38,374		40,031
Software, net	119,801		129,109
Goodwill	1,226,026		1,226,026
Intangible assets, net	220,540		228,698
Deferred income taxes, net	63,345		53,738
Other noncurrent assets	66,020		67,171
TOTAL ASSETS	$	3,006,801	$	3,209,895
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	47,170	$	47,997
Settlement liabilities	412,800		539,087
Employee compensation	29,834		45,289
Current portion of long-term debt	70,443		65,521
Deferred revenue	69,999		58,303
Other current liabilities	70,664		102,645
Total current liabilities	700,910		858,842
Noncurrent liabilities
Deferred revenue	21,639		23,233
Long-term debt	1,010,938		1,024,351
Deferred income taxes, net	38,679		40,371
Operating lease liabilities	32,026		33,910
Other noncurrent liabilities	34,982		36,001
Total liabilities	1,839,174		2,016,708
Commitments and contingencies
Stockholders’ equity
Preferred stock; $0.01 par value; 5,000,000 shares authorized; no shares issued at March 31, 2023, and December 31, 2022	—		—
Common stock; $0.005 par value; 280,000,000 shares authorized; 140,525,055 shares issued at March 31, 2023, and December 31, 2022	702		702
Additional paid-in capital	701,040		702,458
Retained earnings	1,241,150		1,273,458
Treasury stock, at cost, 32,202,744 and 32,456,227 shares at March 31, 2023, and December 31, 2022, respectively	(661,223)		(665,771)
Accumulated other comprehensive loss	(114,042)		(117,660)
Total stockholders’ equity	1,167,627		1,193,187
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	3,006,801	$	3,209,895

The accompanying notes are an integral part of the condensed consolidated financial statements.

Table of contents

ACI WORLDWIDE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited and in thousands, except per share amounts)


	Three Months Ended March 31,
		2023		2022
Revenues
Software as a service and platform as a service		$	204,930	$	194,562
License		18,331		60,285
Maintenance		50,103		51,418
Services		16,312		16,815
Total revenues		289,676		323,080
Operating expenses
Cost of revenue (1)		178,554		166,286
Research and development		37,118		37,807
Selling and marketing		35,435		34,608
General and administrative		31,382		25,875
Depreciation and amortization		31,539		30,838
Total operating expenses		314,028		295,414
Operating income (loss)		(24,352)

SEC Form 10-Q filed by ACI Worldwide Inc.