ACI WORLDWIDE, INC. Q1 FY2025 earnings call

• Q1 was a very strong start with 25% revenue growth and 95% EBITDA growth. Teams signed renewals and new business earlier to derisk full-year targets. - Combined Bank and Merchant segments into Payment Software unit, generating new pipeline and efficient coverage in geographies. - Introduced next-generation payments hub solution named Connetic, which is cloud native with enhanced capabilities. - Scott Behrens announced retirement, with plans to transition financial leadership smoothly.

Payment Software: Revenue grew 42%, adjusted EBITDA more than doubled compared to Q1 of last year. Signed the largest new logo and competitive takeaway in Asia Pacific, and another significant new logo in Latin America. Both wins use issuing and acquiring solutions. Biller: Revenue was up 11%, adjusted EBITDA increased 1% from Q1 2024. Bookings momentum continued with new ARR bookings up about 40% over last year’s Q1.

• Raised full-year revenue guidance to $1.69 billion to $1.72 billion and adjusted EBITDA to $480 million to $495 million. - Q2 revenue expected $375 million to $385 million, adjusted EBITDA $55 million to $65 million. - Strong start and FX rate impacts led to guidance revision.

Q: How is the current environment affecting customer behavior?

A: Tom Warsop said no negative impact seen, with some positive momentum, and deals being closed earlier due to uncertainty.

Q: What is ACI's exposure to cross-border and Stablecoins?

A: ACI has significant cross-border business facilitating payments like SWIFT. Talks with bank customers about Stablecoins as an alternative rail, with ACI potentially fitting in.

Q: Thoughts on Payment Software segment growth for remainder of year?

A: Tom Warsop and Scott Behrens said Q1 had more net new signings than expected, with full-year expectations still on track, and recurring revenue growing in the 8% range.

Q: Details on Payment Software partnership with Ingo Payments and Speedpay?

A: Partnership focuses on disbursements, an area of opportunity for more robust value propositions beyond bill payment.

Q: Milestones for Connetic?

A: Had a robust working demo end of last year, released version 1.0 end of April, with demos and deployment plans ongoing.

Q: Pipeline opportunities from combined segments?

A: Example of a bank with merchant customers leading to a pipeline opportunity by having more comprehensive conversations across products.

Q: Biller uplift from IRS processing and FX impact?

A: Biller revenue growth contributed by IRS and tax partners, FX rate moves expected to add $5 million to full-year growth.