ACI Worldwide, Inc. Reports Financial Results for the Quarter Ended September 30, 2022

Q3 Highlights

Revenue of $307 million, up 1% adjusted for FX and Corporate Online Banking divestiture, versus Q3 2021

Net income of $23 million

Repurchased 1.2 million shares

Reaffirming full-year 2022 revenue guidance on a constant currency basis

MIAMI–(BUSINESS WIRE)–ACI Worldwide (NASDAQ: ACIW), a global leader in mission-critical, real-time payments software, announced financial results today for the quarter ending September 30, 2022. ACI delivered revenue of $307 million and adjusted EBITDA of $46 million. New ARR1 bookings were up 35% versus Q3 2021 and up 40% on a year-to-date basis.

“In the third quarter, we again delivered revenue in line with guidance and saw notable bookings success across all segments, providing visibility into future revenue growth,” said Odilon Almeida, president and CEO of ACI Worldwide. “However, inflationary pressures on the interchange component of our Biller segment and foreign exchange rates are impacting our EBITDA in the near term. Our actions to mitigate the impact of these pressures, especially the Biller interchange component, are beginning to pay off. Despite these challenging market conditions, we are pleased to maintain our full-year revenue guidance on a constant currency basis.”

Almeida continued, “The disciplined execution of ACI’s three-pillar strategy remains intrinsic to our performance and provides the flexibility to invest in growth and return capital to shareholders through share repurchases. Our continued strong new ARR bookings and new business momentum across our segments enhance our confidence in our accelerating growth trajectory. We are also on track to launch our next-generation, real-time payments cloud platform in 2023, driving new growth across our business segments.”

FINANCIAL SUMMARY

In Q3 2022, revenue was $307 million, down 3%, or up 1% compared to Q3 2021 adjusted for FX and the divestiture of ACI’s Corporate Online Banking division, which was completed in September. Adjusted EBITDA in Q3 was $46 million, down 38%, compared to Q3 2021, or 36% adjusted for FX and the divestiture2. Net adjusted EBITDA margin in Q3 2022 was 22%, or 21% adjusted for FX and the divestiture2. Q3 new ARR bookings of $30 million were up 35% compared to Q3 2021 and up 40% year to date.

  • Bank segment revenue declined 11%, or 4% adjusted for FX and the divestiture2; segment adjusted EBITDA decreased 26%, or 23% adjusted for FX and the divestiture2, versus Q3 2021.
  • Merchant segment revenue decreased 9%, or 3% adjusted for FX; segment adjusted EBITDA was down 31%, or 26% adjusted for FX, versus Q3 2021.
  • Biller segment revenue grew 5% and segment adjusted EBITDA was down 18%, versus Q3 2021.

ACI ended the quarter with $135 million cash on hand and a debt balance of $1 billion, representing a net debt leverage ratio of 2.3x. The company has repurchased 3.2 million shares for $91 million year-to-date. As of September 30, 2022, ACI has $125 million remaining on its share repurchase authorization and expects to use approximately 50% of its cash flow to complete additional share repurchases over the remainder of the year.

REITERATING REVENUE GUIDANCE FOR 2022 ON A CONSTANT CURRENCY BASIS

On a constant currency basis, ACI is reiterating its full-year 2022 guidance provided on September 1, 2022. The company is adjusting its revenue guidance only to account for FX fluctuations. ACI expects 2022 revenue to be in a range of $1.39 billion to $1.405 billion.

Despite the solid revenue performance, FX and inflation are pressuring EBITDA in the near term. The impact of inflation is limited to the interchange component of the company’s Biller segment. As a result, ACI expects full-year 2022 adjusted EBITDA to be in the range of $365 million to $380 million.

CONFERENCE CALL TO DISCUSS FINANCIAL RESULTS

Today, management will host a conference call at 8:00 AM ET to discuss these results. Interested persons may access a real-time teleconference webcast at http://investor.aciworldwide.com/ or use the following number for dial-in participation: toll-free 1 (888) 660-6377; Conference ID: 3153574. Please provide your name and the conference name of ACI Worldwide, Inc.

About ACI Worldwide

ACI Worldwide is a global leader in mission-critical, real-time payments software. Our proven, secure and scalable software solutions enable leading corporations, fintechs, financial disruptors and merchants to process and manage digital payments, power omni-commerce payments, present and process bill payments, and address fraud and risk. We combine our global footprint with a local presence to drive the real-time digital transformation of payments and commerce.

© Copyright ACI Worldwide, Inc. 2022.

ACI, ACI Worldwide, ACI Payments, Inc., ACI Pay, Speedpay and all ACI product/solution names are trademarks or registered trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in the United States, other countries or both. Other parties’ trademarks referenced are the property of their respective owners.

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, as well as other significant non-cash expenses such as depreciation, amortization, and stock-based compensation, that we believe are helpful in understanding our past financial performance and our future results. The presentation of these non-GAAP financial measures should be considered in addition to our GAAP results and are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management generally compensates for limitations in the use of non-GAAP financial measures by relying on comparable GAAP financial measures and providing investors with a reconciliation of non-GAAP financial measures only in addition to and in conjunction with results presented in accordance with GAAP.

We believe that these non-GAAP financial measures reflect an additional way to view aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. Certain non-GAAP measures include:

  • Adjusted EBITDA: net income (loss) plus income tax expense (benefit), net interest income (expense), net other income (expense), depreciation, amortization and stock-based compensation, as well as significant transaction-related expenses. Adjusted EBITDA should be considered in addition to, rather than as a substitute for, net income (loss).
  • Net Adjusted EBITDA Margin: Adjusted EBITDA divided by revenue net of pass-through interchange revenue. Net Adjusted EBITDA Margin should be considered in addition to, rather than as a substitute for, net income (loss).
  • Diluted EPS adjusted for non-cash and significant transaction related items: diluted EPS plus tax effected significant transaction related items, amortization of acquired intangibles and software, and non-cash stock-based compensation. Diluted EPS adjusted for non-cash and significant transaction related items should be considered in addition to, rather than as a substitute for, diluted EPS.
  • Recurring revenue: revenue from software as a service and platform as a service fees and maintenance fees. Recurring revenue should be considered in addition to, rather than as a substitute for, total revenue.
  • * ARR: Annual recurring revenue expected to be generated from new accounts, new applications, and add-on sales bookings contracts signed in the quarter.

FORWARD-LOOKING STATEMENTS

This press release 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 “believes,” “will,” “expects,” “anticipates,” “intends,” and words and phrases of similar impact. The forward-looking statements are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements in this press release include, but are not limited to: (i) expectations regarding notable bookings success across all segments, providing visibility into future revenue growth, (ii) expectations regarding inflationary pressures on the interchange component of our Biller segment and foreign exchange rates impacting our EBITDA in the near term, (iii) expectations that our actions to mitigate the impact of these pressures, especially the biller interchange component, are beginning to pay off, (iv) expectations that our continued strong new ARR bookings and new business momentum across our segments enhance our confidence in our accelerating growth trajectory, (v) expectations that the launch of our next generation real-time payments cloud platform will drive new growth across our business segments and (vi) expectations regarding 2022 revenue and adjusted EBITDA.

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, business interruptions or failure of our information technology and communication systems, security breaches or viruses, our ability to attract and retain senior management personnel and skilled technical employees, future acquisitions, strategic partnerships and investments, implementation and success of our three-pillar strategy, impact if we convert some or all on-premise licenses from fixed-term to subscription model, anti-takeover provisions, exposure to credit or operating risks arising from certain payment funding methods, customer reluctance to switch to a new vendor, our ability to adequately defend our intellectual property, litigation, our offshore software development activities, risks from operating internationally, including fluctuations in currency exchange rates, adverse changes in the global economy, compliance of our products with applicable legislation, governmental regulations and industry standards, the complexity of our products and services and the risk that they may contain hidden defects, complex regulations applicable to our payments business, our compliance with privacy regulations, our involvement in investigations, lawsuits and other expense and time-consuming legal proceedings, exposure to unknown tax liabilities, consolidations and failures in the financial services industry, volatility in our stock price, demand for our products, failure to obtain renewals of customer contracts or to obtain such renewals on favorable terms, delay or cancellation of customer projects or inaccurate project completion estimates, impairment of our goodwill or intangible assets, the accuracy of management’s backlog estimates, the cyclical nature of our revenue and earnings and the accuracy of forecasts due to the concentration of revenue-generating activity during the final weeks of each quarter, restrictions and other financial covenants in our debt agreements, our existing levels of debt, the COVID-19 pandemic, and events outside of our control including natural disasters, wars, and outbreaks of disease. For a detailed discussion of these risk factors, parties that are relying on the forward-looking statements should review our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q.

ACI WORLDWIDE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands)

 

 

September 30,

2022

 

December 31,

2021

ASSETS

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

134,799

 

 

$

122,059

 

Receivables, net of allowances

 

302,301

 

 

 

320,405

 

Settlement assets

 

727,754

 

 

 

452,396

 

Prepaid expenses

 

29,766

 

 

 

24,698

 

Other current assets

 

16,342

 

 

 

17,876

 

Total current assets

 

1,210,962

 

 

 

937,434

 

Noncurrent assets

 

 

 

Accrued receivables, net

 

248,285

 

 

 

276,164

 

Property and equipment, net

 

54,328

 

 

 

63,050

 

Operating lease right-of-use assets

 

37,916

 

 

 

47,825

 

Software, net

 

134,942

 

 

 

157,782

 

Goodwill

 

1,226,026

 

 

 

1,280,226

 

Intangible assets, net

 

235,053

 

 

 

283,004

 

Deferred income taxes, net

 

55,454

 

 

 

50,778

 

Other noncurrent assets

 

60,174

 

 

 

62,478

 

TOTAL ASSETS

$

3,263,140

 

 

$

3,158,741

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities

 

 

 

Accounts payable

$

38,227

 

 

$

41,312

 

Settlement liabilities

 

727,237

 

 

 

451,575

 

Employee compensation

 

43,637

 

 

 

51,379

 

Current portion of long-term debt

 

60,603

 

 

 

45,870

 

Deferred revenue

 

53,163

 

 

 

84,425

 

Other current liabilities

 

75,107

 

 

 

79,594

 

Total current liabilities

 

997,974

 

 

 

754,155

 

Noncurrent liabilities

 

 

 

Deferred revenue

 

22,440

 

 

 

25,925

 

Long-term debt

 

947,750

 

 

 

1,019,872

 

Deferred income taxes, net

 

30,465

 

 

 

36,122

 

Operating lease liabilities

 

32,235

 

 

 

43,346

 

Other noncurrent liabilities

 

34,060

 

 

 

34,544

 

Total liabilities

 

2,064,924

 

 

 

1,913,964

 

Commitments and contingencies

 

 

 

Stockholders’ equity

 

 

 

Preferred stock

 

 

 

 

 

Common stock

 

702

 

 

 

702

 

Additional paid-in capital

 

697,763

 

 

 

688,313

 

Retained earnings

 

1,183,230

 

 

 

1,131,281

 

Treasury stock

 

(555,753

)

 

 

(475,972

)

Accumulated other comprehensive loss

 

(127,726

)

 

 

(99,547

)

Total stockholders’ equity

 

1,198,216

 

 

 

1,244,777

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

3,263,140

 

 

$

3,158,741

 

 

 

ACI WORLDWIDE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited and in thousands, except per share amounts)

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Revenues

 

 

 

 

 

 

 

Software as a service and platform as a service

$

195,540

 

 

$

191,456

 

 

$

597,080

 

 

$

583,530

 

License

 

43,661

 

 

 

54,454

 

 

 

168,260

 

 

 

110,383

 

Maintenance

 

49,163

 

 

 

53,519

 

 

 

151,143

 

 

 

159,037

 

Services

 

18,227

 

 

 

17,485

 

 

 

53,613

 

 

 

50,819

 

Total revenues

 

306,591

 

 

 

316,914

 

 

 

970,096

 

 

 

903,769

 

Operating expenses

 

 

 

 

 

 

 

Cost of revenue (1)

 

171,753

 

 

 

158,712

 

 

 

517,372

 

 

 

476,811

 

Research and development

 

35,899

 

 

 

35,248

 

 

 

114,348

 

 

 

104,791

 

Selling and marketing

 

32,794

 

 

 

33,413

 

 

 

102,793

 

 

 

90,211

 

General and administrative

 

30,516

 

 

 

29,717

 

 

 

84,753

 

 

 

89,429

 

Depreciation and amortization

 

32,140

 

 

 

31,845

 

 

 

95,218

 

 

 

95,434

 

Total operating expenses

 

303,102

 

 

 

288,935

 

 

 

914,484

 

 

 

856,676

 

Operating income

 

3,489

 

 

 

27,979

 

 

 

55,612

 

 

 

47,093

 

Other income (expense)

 

 

 

 

 

 

 

Interest expense

 

(14,336

)

 

 

(11,208

)

 

 

(37,014

)

 

 

(33,943

)

Interest income

 

2,995

 

 

 

2,834

 

 

 

9,205

 

 

 

8,553

 

Other, net

 

41,545

 

 

 

(1,088

)

 

 

45,801

 

 

 

(1,036

)

Total other income (expense)

 

30,204

 

 

 

(9,462

)

 

 

17,992

 

 

 

(26,426

)

Income before income taxes

 

33,693

 

 

 

18,517

 

 

 

73,604

 

 

 

20,667

 

Income tax expense (benefit)

 

10,576

 

 

 

4,753

 

 

 

21,655

 

 

 

2,347

 

Net income

$

23,117

 

 

$

13,764

 

 

$

51,949

 

 

$

18,320

 

Income per common share

 

 

 

 

 

 

 

Basic

$

0.20

 

 

$

0.12

 

 

$

0.45

 

 

$

0.16

 

Diluted

$

0.20

 

 

$

0.12

 

 

$

0.45

 

 

$

0.15

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

Basic

 

113,812

 

 

 

117,512

 

 

 

114,584

 

 

 

117,574

 

Diluted

 

114,348

 

 

 

118,540

 

 

 

115,211

 

 

 

118,817

 

 
 

(1)

The cost of revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale.

ACI WORLDWIDE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited and in thousands)

 

 

Three Months Ended

September 30,

 

Nine Months Ended
September 30,

 

 

2022

 

2021

 

2022

 

2021

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

$

23,117

 

 

$

13,764

 

 

$

51,949

 

 

$

18,320

 

 

Adjustments to reconcile net income to net cash flows from operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

6,044

 

 

 

5,130

 

 

 

17,052

 

 

 

15,838

 

 

Amortization

 

26,096

 

 

 

28,250

 

 

 

78,817

 

 

 

84,528

 

 

Amortization of operating lease right-of-use assets

 

2,807

 

 

 

2,752

 

 

 

8,296

 

 

 

7,752

 

 

Amortization of deferred debt issuance costs

 

1,136

 

 

 

1,168

 

 

 

3,435

 

 

 

3,525

 

 

Deferred income taxes

 

(2,674

)

 

 

(2,184

)

 

 

(9,059

)

 

 

(11,742

)

 

Stock-based compensation expense

 

7,126

 

 

 

6,367

 

 

 

21,884

 

 

 

20,790

 

 

Gain on divestiture

 

(38,452

)

 

 

 

 

 

(38,452

)

 

 

 

 

Other

 

1,359

 

 

 

(463

)

 

 

2,483

 

 

 

(27

)

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Receivables

 

19,807

 

 

 

(20,801

)

 

 

5,767

 

 

 

55,953

 

 

Accounts payable

 

(1,728

)

 

 

(2,540

)

 

 

(3,047

)

 

 

(5,080

)

 

Accrued employee compensation

 

6,329

 

 

 

7,261

 

 

 

(3,872

)

 

 

(1,140

)

 

Deferred revenue

 

(11,899

)

 

 

10,042

 

 

 

(6,367

)

 

 

10,339

 

 

Other current and noncurrent assets and liabilities

 

(4,865

)

 

 

(9,248

)

 

 

(26,920

)

 

 

(54,573

)

 

Net cash flows from operating activities

 

34,203

 

 

 

39,498

 

 

 

101,966

 

 

 

144,483

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

(4,466

)

 

 

(4,893

)

 

 

(8,123

)

 

 

(12,968

)

 

Purchases of software and distribution rights

 

(7,656

)

 

 

(4,389

)

 

 

(18,394

)

 

 

(20,041

)

 

Proceeds from divestiture

 

100,139

 

 

 

 

 

 

100,139

 

 

 

 

 

Net cash flows from investing activities

 

88,017

 

 

 

(9,282

)

 

 

73,622

 

 

 

(33,009

)

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from issuance of common stock

 

839

 

 

 

878

 

 

 

2,801

 

 

 

2,526

 

 

Proceeds from exercises of stock options

 

395

 

 

 

208

 

 

 

1,792

 

 

 

7,252

 

 

Repurchase of stock-based compensation awards for tax withholdings

 

(18

)

 

 

(37

)

 

 

(5,820

)

 

 

(14,833

)

 

Repurchases of common stock

 

(28,227

)

 

 

 

 

 

(90,934

)

 

 

(39,411

)

 

Proceeds from revolving credit facility

 

25,000

 

 

 

 

 

 

85,000

 

 

 

 

 

Repayment of revolving credit facility

 

(55,000

)

 

 

(25,000

)

 

 

(75,000

)

 

 

(55,000

)

 

Repayment of term portion of credit agreement

 

(49,606

)

 

 

(9,737

)

 

 

(70,825

)

 

 

(29,212

)

 

Payments on or proceeds from other debt, net

 

(737

)

 

 

(1,915

)

 

 

(10,106

)

 

 

(10,187

)

 

Net decrease in settlement assets and liabilities

 

24,659

 

 

 

22,611

 

 

 

20,084

 

 

 

(55,470

)

 

Net cash flows from financing activities

 

(82,695

)

 

 

(12,992

)

 

 

(143,008

)

 

 

(194,335

)

 

Effect of exchange rate fluctuations on cash

 

1,002

 

 

 

472

 

 

 

(60

)

 

 

84

 

 

Net increase (decrease) in cash and cash equivalents

 

40,527

 

 

 

17,696

 

 

 

32,520

 

 

 

(82,777

)

 

Cash and cash equivalents, including settlement deposits, beginning of period

 

176,135

 

 

 

164,909

 

 

 

184,142

 

 

 

265,382

 

 

Cash and cash equivalents, including settlement deposits, end of period

$

216,662

 

 

$

182,605

 

 

$

216,662

 

 

$

182,605

 

 

Reconciliation of cash and cash equivalents to the Consolidated Balance Sheets

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

134,799

 

 

$

141,482

 

 

$

134,799

 

 

$

141,482

 

 

Settlement deposits

 

81,863

 

 

 

41,123

 

 

 

81,863

 

 

 

41,123

 

 

Total cash and cash equivalents

$

216,662

 

 

$

182,605

 

 

$

216,662

 

 

$

182,605

 

 

 
 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

Adjusted EBITDA (millions)

2022

 

2021

 

2022

 

2021

Net income

$

23.1

 

 

 

$

13.8

 

 

$

51.9

 

 

 

$

18.3

 

 

Plus:

 

 

 

 

 

 

 

Income tax expense

 

10.6

 

 

 

 

4.7

 

 

 

21.7

 

 

 

 

2.3

 

 

Net interest expense

 

11.3

 

 

 

 

8.4

 

 

 

27.8

 

 

 

 

25.4

 

 

Net other income (expense)

 

(41.4

 

)

 

 

1.1

 

 

 

(45.8

 

)

 

 

1.0

 

 

Depreciation expense

 

6.0

 

 

 

 

5.1

 

 

 

17.1

 

 

 

 

15.9

 

 

Amortization expense

 

26.1

 

 

 

 

28.2

 

 

 

78.8

 

 

 

 

84.5

 

 

Non-cash stock-based compensation expense

 

7.1

 

 

 

 

6.4

 

 

 

21.9

 

 

 

 

20.8

 

 

Adjusted EBITDA before significant transaction-related expenses

$

42.8

 

 

 

$

67.7

 

 

$

173.4

 

 

 

$

168.2

 

 

Significant transaction-related expenses:

 

 

 

 

 

 

 

Employee related actions

 

 

 

 

 

4.4

 

 

 

 

 

 

 

8.1

 

 

European datacenter migration

 

1.7

 

 

 

 

 

 

 

3.4

 

 

 

 

 

 

Divestiture transaction related

 

1.2

 

 

 

 

 

 

 

2.6

 

 

 

 

 

 

Other

 

 

 

 

 

1.6

 

 

 

 

 

 

 

2.5

 

 

Adjusted EBITDA

$

45.7

 

 

 

$

73.7

 

 

$

179.4

 

 

 

$

178.8

 

 

Revenue, net of interchange:

 

 

 

 

 

 

 

Revenue

$

306.6

 

 

 

$

316.9

 

 

$

970.1

 

 

 

$

903.8

 

 

Interchange

 

98.4

 

 

 

 

87.8

 

 

 

295.4

 

 

 

 

262.6

 

 

Revenue, net of interchange

$

208.2

 

 

 

$

229.1

 

 

$

674.7

 

 

 

$

641.2

 

 

Net Adjusted EBITDA Margin

 

22

 

%

 

 

32

%

 

 

27

 

%

 

 

28

 

%

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

Segment Information (millions)

2022

 

2021

 

2022

 

2021

Revenue

 

 

 

 

 

 

 

Banks

$

117.5

 

$

131.7

 

$

391.6

 

$

341.7

Merchants

 

35.6

 

 

39.0

 

 

113.1

 

 

115.1

Billers

 

153.5

 

 

146.2

 

 

465.4

 

 

447.0

Total

$

306.6

 

$

316.9

 

$

970.1

 

$

903.8

Recurring Revenue

 

 

 

 

 

 

 

Banks

$

57.3

 

$

63.6

 

$

179.3

 

$

189.6

Merchants

 

33.8

 

 

35.2

 

 

103.5

 

 

106.0

Billers

 

153.6

 

 

146.2

 

 

465.4

 

 

446.9

Total

$

244.7

 

$

245.0

 

$

748.2

 

$

742.6

Segment Adjusted EBITDA

 

 

 

 

 

 

 

Banks

$

49.8

 

$

67.6

 

$

184.7

 

$

159.3

Merchants

 

9.8

 

 

14.2

 

 

32.2

 

 

42.0

Billers

 

26.3

 

 

32.0

 

 

81.0

 

 

100.6

 
 

 

Three Months Ended September 30,

 

2022

 

2021

EPS Impact of Non-cash and Significant Transaction-related Items (millions)

EPS Impact

 

$ in Millions

(Net of Tax)

 

EPS Impact

 

$ in Millions

(Net of Tax)

GAAP net income

$

0.20

 

 

$

23.1

 

 

$

0.12

 

$

13.8

Adjusted for:

 

 

 

 

 

 

 

Gain on divestiture

 

(0.26

)

 

 

(29.2

)

 

 

 

 

Significant transaction-related expenses

 

0.02

 

 

 

2.2

 

 

 

0.04

 

 

4.5

Amortization of acquisition-related intangibles

 

0.06

 

 

 

6.7

 

 

 

0.06

 

 

7.0

Amortization of acquisition-related software

 

0.04

 

 

 

4.5

 

 

 

0.05

 

 

6.0

Non-cash stock-based compensation

 

0.05

 

 

 

5.4

 

 

 

0.04

 

 

4.8

Total adjustments

$

(0.09

)

 

$

(10.4

)

 

$

0.19

 

$

22.3

Diluted EPS adjusted for non-cash and significant transaction-related items

$

0.11

 

 

$

12.7

 

 

$

0.31

 

$

36.1

 

Nine Months Ended September 30,

 

2022

 

2021

EPS Impact of Non-cash and Significant Transaction-related Items (millions)

EPS Impact

 

$ in Millions

(Net of Tax)

 

EPS Impact

 

$ in Millions

(Net of Tax)

GAAP net income

$

0.45

 

 

$

51.9

 

 

$

0.15

 

$

18.3

Adjusted for:

 

 

 

 

 

 

 

Gain on divestiture

 

(0.25

)

 

 

(29.2

)

 

 

 

 

Significant transaction-related expenses

 

0.04

 

 

 

4.7

 

 

 

0.07

 

 

8.0

Amortization of acquisition-related intangibles

 

0.18

 

 

 

20.6

 

 

 

0.18

 

 

21.1

Amortization of acquisition-related software

 

0.12

 

 

 

14.1

 

 

 

0.16

 

 

19.1

Non-cash stock-based compensation

 

0.14

 

 

 

16.6

 

 

 

0.13

 

 

15.8

Total adjustments

$

0.23

 

 

$

26.8

 

 

$

0.54

 

$

64.0

Diluted EPS adjusted for non-cash and significant transaction-related items

$

0.68

 

 

$

78.7

 

 

$

0.69

 

$

82.3

 
 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

Recurring Revenue (millions)

2022

 

2021

 

2022

 

2021

SaaS and PaaS fees

$

195.5

 

$

191.5

 

$

597.1

 

$

583.5

Maintenance fees

 

49.2

 

 

53.5

 

 

151.1

 

 

159.1

Recurring Revenue

$

244.7

 

$

245.0

 

$

748.2

 

$

742.6

 
 

Annual Recurring Revenue* (ARR) Bookings (millions)

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

2022

 

2021

 

2022

 

2021

ARR bookings

$

30.3

 

$

22.4

 

$

69.5

 

$

49.7

_________________________________

1
“ARR”’ is annual recurring revenue expected to be generated from new accounts, new applications and add-on sales bookings contracts signed in the quarter

2 Corporate Online Banking divestiture

Contacts

Investors
John Kraft

SVP, Head of Strategy and Finance

[email protected]

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