ACI Worldwide hosted its Analyst Day 2024, with President and CEO Thomas W. Warsop III highlighting the company's focus on accelerating growth in response to market discontinuities. The company aims to deliver 7-9% revenue growth in 2024, pointing to significant changes in its strategy and focus.
ACI's products currently facilitate the movement of trillions of dollars through over one billion transactions daily, serving all ten of the world's largest financial institutions by asset value and customers in 94 countries. The company supports 26 regional or national instant payment schemes, 10 central infrastructures, and approximately 400 participant banks, with its fraud detection and prevention solutions protecting about 30% of all real-time payments.
In terms of customer base, ACI serves around 80,000 of the largest enterprise retailers globally, including six of the top 10 global merchants as ranked by the National Retail Federation. Additionally, its biller solutions cater to approximately 3,000 billers, including six of the top 10 auto lenders in the U.S.
The company's strategic shift has seen a focus on the massive opportunity within its Banks business, with plans to modernize complex systems and processes for its bank customers. ACI is expanding its target market to include mid-tier financial institutions with assets ranging from $50 to $250 billion.
ACI's growth drivers include upselling and cross-selling to existing customers, targeting new customers, and increasing electronic bill payments and transaction volumes. The company anticipates high single-digit organic revenue growth for 2024 and beyond, with a focus on maintaining leverage around 2.5x and deploying cash for share buy-backs, debt repayments, and growth capex.
Today the company's shares have moved -0.1% to a price of $32.16. For the full picture, make sure to review ACI Worldwide's 8-K report.
