Release Date: April 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you provide an update on the marketing timeline for the Payments Hub and its readiness for general availability?
A: Thomas Warsop, CEO of ACI Worldwide, explained that active marketing of the Payments Hub is expected by the end of the year. The company is currently engaging with customers to refine the product, aiming to present something tangible that demonstrates clear benefits. Initial customer engagement is already happening, with expectations for early adopters to emerge by late this year.
Q: What drove the significant EBITDA growth in the merchant segment?
A: CEO Thomas Warsop attributed the EBITDA growth primarily to scaling the business, which leverages a relatively fixed cost base, along with some cost initiatives. This scale is driving higher revenue growth and subsequently higher profitability.
Q: Could you elaborate on the growth in real-time payments, particularly which markets are driving this growth and its sustainability?
A: CFO Scott Behrens noted that growth in real-time payments has been robust, especially outside the US, driven by regulatory mandates. He expects this double-digit growth to continue, primarily fueled by international markets. CEO Warsop added that global real-time payment transactions are projected to grow significantly, supporting the sustainability of this growth trend.
Q: Regarding the raised full-year guidance, can you specify the segments contributing to this increased outlook?
A: CEO Warsop indicated that the raised guidance is partly due to better-than-expected performance in the banking segment and strong growth in the biller business. The overperformance in Q1, particularly from new license sales and SaaS-based revenues, has provided confidence in raising the revenue and EBITDA forecasts for the year.
Q: Can you discuss the progress and expectations around the consolidation of legacy platforms within the biller segment?
A: CEO Warsop confirmed that consolidation is on track, with expectations that all new customers will transition to the consolidated platform later in the year. This consolidation is anticipated to speed up implementations and reduce costs over time.
Q: How is the transition towards SaaS models, particularly in the mid-market banking segment, expected to impact the revenue mix?
A: CEO Warsop and CFO Behrens discussed the shift towards more SaaS-based revenues, especially from mid-market banks. This shift is expected to gradually change the revenue mix, increasing the proportion of SaaS revenues in the company's overall revenue structure.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.