ACI Worldwide is among the leading companies that make software products for facilitating electronic payments. It works with financial institutions and intermediaries as well as global merchants to facilitate more than $14 trillion of payments every day. ACI Worldwide has a distribution network that spans Europe, Asia-Pacific, the Americas, Africa, and the Middle East. ACI processes payments for retail banks, healthcare providers, credit unions, utilities, and many other entities. Most of its revenues are generated in the US, Europe, the Middle East, and Africa regions. ACI Worldwide is headquartered in Naples, Florida.
ACI Worldwide’s 3Q2020 earnings
ACI Worldwide recently reported its third-quarter 2020 earnings this November. Revenues decreased by almost 11% on a year-on-year basis to $315.88 million. Analyst estimates for revenues were quite close at $315.79 million. Earnings per share, however, were up a significant 44% year-on-year to $0.39. Analysts had estimated earnings to be around $0.14.
According to company CEO Odilon Almeida, “We are pleased to report 500 basis points of year-to-date margin improvement in this challenging year. The bookings are up 15% year-to-date from the same period last year. Despite bookings being up 67% in our on-demand business, new bookings were down 12% in our very profitable on-premise license software business due to COVID-related temporary delays in purchasing decisions by our bank customers. The delays are not impacting renewals but are impacting new business in on-premise and the related license fee revenue. We expect this trend to continue in Q4.”
Why ACI Worldwide Is Among The Software Stocks To Buy In 2020
ACI Worldwide has a 5-year backlog of about $5.9 billion which provides revenue visibility. Its total bookings for the third quarter grew by 43%. Operating cash flows for Q3 were $67 million, a jump of 100% as compared to the operating cash flows from Q3 in 2019. ACI Worldwide’s stock is also up almost 14% in just the last month. It has recovered some 56% since hitting a low in March 2020.