ACI Worldwide, a software company specializing in digital payments, has recently released its 10-K report. The company operates in three segments: Banks, Merchants, and Billers, offering a range of software products and solutions for facilitating digital payments in the United States and internationally. ACI's offerings include solutions for credit, debit, and prepaid card transactions, real-time payments, fraud prevention, and digital billing services across various sectors such as consumer finance, insurance, healthcare, and more.
In the 10-K report, ACI Worldwide emphasizes its focus on global payments technology, aiming to deliver intelligent payments orchestration in real time. The company sells and supports its products directly and through distribution networks in the Americas, EMEA, and Asia Pacific. ACI's products and solutions are used by banks, merchants, billers, third-party digital payment processors, payment associations, and a wide range of transaction-generating endpoints.
The report also highlights key trends impacting ACI's strategies and operations, including the increasing adoption of digital payment transaction volumes, real-time payments, cloud technology, payments intelligence, fraud, compliance, omni-commerce, and open banking. ACI sees significant opportunities for growth in international markets, particularly in Asia Pacific, Latin America, and the Middle East, where real-time payments modernization initiatives are gaining momentum.
Additionally, the report mentions ACI's divestiture of its corporate online banking solutions related assets and liabilities to One Equity Partners for $100.0 million, resulting in a gain of $38.5 million for the year ended December 31, 2022. The company also entered into a Transition Services Agreement with One Equity Partners, which ended in 2024.
ACI provides a breakdown of its backlog, which includes committed backlog and renewal backlog estimates. The 60-month backlog estimates, by reportable segment, as of December 31, 2024, indicate the company's anticipated future revenues from contracted and assumed contract renewals. The backlog estimates are derived based on key assumptions such as license arrangements renewals, maintenance fees, SaaS and PaaS arrangements, and foreign currency exchange rates.
As a result of these announcements, the company's shares have moved 7.4% on the market, and are now trading at a price of $54.34. For more information, read the company's full 10-K submission here.
