ACI Worldwide, Inc. Q3 FY2025 earnings call

• ACI has spent years investing in software and reshaping for growth and financial predictability. Q3 had 7% total revenue growth and double-digit recurring revenue growth. Year-to-date, total revenue and adjusted EBITDA are up 12%.
• Biller business performing well with 10% Q3 growth, strong in utility and government verticals. Payment Software segment up 4% Q3, 12% year-to-date, strong demand from banks, processors, fintechs.
• Signed first ACI Connetic customer, Solaris, a German fintech and bank. Connetic's architecture resonating with customers modernizing payments infrastructure.
• Acquired European-based fintech Payment Components to augment AI-first initiatives and accelerate ACI Connetic development.
• Increased share repurchase authorization to $500 million; year-to-date, 3.1 million shares repurchased for $150 million.
• Partnership with BitPay to support digital currency innovation, expanding payments orchestration platforms.
• Payments Unleashed event celebrated 50th anniversary, discussed topics like stablecoins, real-time payments, AI.
• Appointed Todd Ford and welcomed back Didier Lamouche as independent directors.

The Biller business had Q3 revenue of $198 million, up 10% year-over-year, with segment adjusted EBITDA of $32 million, a 4% increase. Year-to-date, Biller revenue is up 12%. The Payment Software segment had Q3 revenue of $284 million, up 4% year-over-year, with adjusted EBITDA of $182 million, up 1%. Year-to-date, Payment Software revenue is up 12%. Recurring revenue in Q3 was $298 million, up 10%, representing 62% of total revenue.

• Raised full-year 2025 total revenue guidance to $1.73 billion to $1.754 billion (previously $1.71 billion to $1.74 billion).
• Raised full-year 2025 adjusted EBITDA guidance to $495 million to $510 million (previously $490 million to $505 million).
• Strong year-to-date performance and healthy Q4 pipeline contribute to the guidance raise.

Q: Trevor Williams asked about pricing as a lever and renewal cadence.

A: Tom Warsop and Bobby Leibrock discussed pricing as an important lever, with renewals spread out and expected to be balanced in 2026.

Q: Jeffrey Cantwell inquired about ACI Connetic progression and payments components acquisition.

A: Tom Warsop and Bobby Leibrock talked about Connetic's pipeline, first customer Solaris, and the acquisition of Payment Components to enhance ACI Connetic capabilities.

Q: Alexander Neumann asked about Biller business growth drivers and Payment Software segment growth.

A: Robert Leibrock discussed Biller growth driven by new customers, retention, and untapped pricing potential, and Payment Software segment growth across key solution areas