OMAHA - ACI Worldwide (NASDAQ: NASDAQ:ACIW) shares jumped 6% following the release of their second quarter financial results, which surpassed analyst expectations on both earnings and revenue fronts.
The company reported an adjusted EPS of $0.47, significantly outperforming the consensus estimate of $0.07. Revenue also exceeded forecasts, coming in at $373 million against the predicted $349.58 million.
The robust financial performance represents a 16% increase in revenue compared to the same quarter last year, with net income showing a remarkable turnaround from a $7 million loss in Q2 2023 to a profit of $31 million in Q2 2024. Adjusted EBITDA saw a substantial rise of 62% YoY, and the company's cash flow from operating activities surged by 215% compared to the previous year.
ACI Worldwide's president and CEO, Thomas Warsop, expressed satisfaction with the results, stating, "We are pleased to report another quarter of strong growth in revenue and adjusted EBITDA, with both exceeding our financial guidance." He attributed the successful quarter to the company's strategic focus and execution, including key initiatives and investments aimed at positioning ACI Worldwide for sustainable, profitable growth.
In light of the strong performance, ACI Worldwide has raised its full-year 2024 guidance, now expecting revenue to fall between $1.557 billion and $1.591 billion, compared to the previous range of $1.547 billion to $1.581 billion. The midpoint of the updated guidance range stands above the analyst consensus of $1.56 billion.
The company also anticipates adjusted EBITDA to reach between $423 million and $438 million. For the third quarter of 2024, ACI Worldwide forecasts revenue to be between $400 million and $410 million.
The positive earnings news was further bolstered by the announcement of a $400 million share repurchase authorization, with the company having already repurchased 1.7 million shares for approximately $57 million in the second quarter.
ACI Worldwide's financial health is further evidenced by its cash position of $157 million and a net debt leverage ratio of 1.9x. The company's segments also reported growth, with the Bank segment's revenue up 22% and the Merchant and Biller segments' revenues up 4% and 13%, respectively.
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