false2024Q20000935036--12-310.5P3Yxbrli:sharesiso4217:USDiso4217:USDxbrli:sharesxbrli:pure00009350362024-01-012024-06-3000009350362024-07-3000009350362024-06-3000009350362023-12-310000935036aciw:SoftwareAsServiceAndPlatformAsServiceMember2024-04-012024-06-300000935036aciw:SoftwareAsServiceAndPlatformAsServiceMember2023-04-012023-06-300000935036aciw:SoftwareAsServiceAndPlatformAsServiceMember2024-01-012024-06-300000935036aciw:SoftwareAsServiceAndPlatformAsServiceMember2023-01-012023-06-300000935036us-gaap:LicenseMember2024-04-012024-06-300000935036us-gaap:LicenseMember2023-04-012023-06-300000935036us-gaap:LicenseMember2024-01-012024-06-300000935036us-gaap:LicenseMember2023-01-012023-06-300000935036us-gaap:MaintenanceMember2024-04-012024-06-300000935036us-gaap:MaintenanceMember2023-04-012023-06-300000935036us-gaap:MaintenanceMember2024-01-012024-06-300000935036us-gaap:MaintenanceMember2023-01-012023-06-300000935036us-gaap:TechnologyServiceMember2024-04-012024-06-300000935036us-gaap:TechnologyServiceMember2023-04-012023-06-300000935036us-gaap:TechnologyServiceMember2024-01-012024-06-300000935036us-gaap:TechnologyServiceMember2023-01-012023-06-3000009350362024-04-012024-06-3000009350362023-04-012023-06-3000009350362023-01-012023-06-300000935036us-gaap:CommonStockMember2024-03-310000935036us-gaap:AdditionalPaidInCapitalMember2024-03-310000935036us-gaap:RetainedEarningsMember2024-03-310000935036us-gaap:TreasuryStockCommonMember2024-03-310000935036us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-3100009350362024-03-310000935036us-gaap:RetainedEarningsMember2024-04-012024-06-300000935036us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-04-012024-06-300000935036us-gaap:AdditionalPaidInCapitalMember2024-04-012024-06-300000935036us-gaap:TreasuryStockCommonMember2024-04-012024-06-300000935036us-gaap:CommonStockMember2024-06-300000935036us-gaap:AdditionalPaidInCapitalMember2024-06-300000935036us-gaap:RetainedEarningsMember2024-06-300000935036us-gaap:TreasuryStockCommonMember2024-06-300000935036us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-300000935036us-gaap:CommonStockMember2023-03-310000935036us-gaap:AdditionalPaidInCapitalMember2023-03-310000935036us-gaap:RetainedEarningsMember2023-03-310000935036us-gaap:TreasuryStockCommonMember2023-03-310000935036us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-3100009350362023-03-310000935036us-gaap:RetainedEarningsMember2023-04-012023-06-300000935036us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-012023-06-300000935036us-gaap:AdditionalPaidInCapitalMember2023-04-012023-06-300000935036us-gaap:TreasuryStockCommonMember2023-04-012023-06-300000935036us-gaap:CommonStockMember2023-06-300000935036us-gaap:AdditionalPaidInCapitalMember2023-06-300000935036us-gaap:RetainedEarningsMember2023-06-300000935036us-gaap:TreasuryStockCommonMember2023-06-300000935036us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-3000009350362023-06-300000935036us-gaap:CommonStockMember2023-12-310000935036us-gaap:AdditionalPaidInCapitalMember2023-12-310000935036us-gaap:RetainedEarningsMember2023-12-310000935036us-gaap:TreasuryStockCommonMember2023-12-310000935036us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310000935036us-gaap:RetainedEarningsMember2024-01-012024-06-300000935036us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-06-300000935036us-gaap:AdditionalPaidInCapitalMember2024-01-012024-06-300000935036us-gaap:TreasuryStockCommonMember2024-01-012024-06-300000935036us-gaap:CommonStockMember2022-12-310000935036us-gaap:AdditionalPaidInCapitalMember2022-12-310000935036us-gaap:RetainedEarningsMember2022-12-310000935036us-gaap:TreasuryStockCommonMember2022-12-310000935036us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-3100009350362022-12-310000935036us-gaap:RetainedEarningsMember2023-01-012023-06-300000935036us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-06-300000935036us-gaap:AdditionalPaidInCapitalMember2023-01-012023-06-300000935036us-gaap:TreasuryStockCommonMember2023-01-012023-06-300000935036us-gaap:FairValueInputsLevel2Memberus-gaap:SeniorNotesMemberaciw:SeniorNotes5750Due2026Member2024-06-300000935036us-gaap:FairValueInputsLevel2Memberus-gaap:SeniorNotesMemberaciw:SeniorNotes5750Due2026Member2023-12-310000935036aciw:BanksMember2024-06-300000935036aciw:MerchantsMember2024-06-300000935036aciw:BillersMember2024-06-300000935036aciw:IndiaPaymentTechnologyAndServicesCompanyMember2019-07-012019-07-310000935036aciw:IndiaPaymentTechnologyAndServicesCompanyMember2019-07-310000935036aciw:IndiaPaymentTechnologyAndServicesCompanyMember2024-06-300000935036aciw:IndiaPaymentTechnologyAndServicesCompanyMember2023-12-3100009350362024-07-012024-06-3000009350362025-07-012024-06-300000935036us-gaap:RevolvingCreditFacilityMemberaciw:CreditAgreementMember2024-06-300000935036aciw:CreditAgreementMemberaciw:TermLoansMember2024-06-300000935036aciw:SeniorNotesFivePointSevenFivePercentDueTwoThousandTwentySixMemberus-gaap:SeniorNotesMember2024-06-300000935036us-gaap:LetterOfCreditMemberus-gaap:RevolvingCreditFacilityMemberaciw:CreditAgreementMember2020-08-120000935036us-gaap:SecuredDebtMemberaciw:RefinanceAmendmentMemberus-gaap:LineOfCreditMember2024-02-260000935036aciw:RefinanceAmendmentMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2024-02-260000935036aciw:SeniorNotesFivePointSevenFivePercentDueTwoThousandTwentySixMemberus-gaap:SeniorNotesMember2024-02-260000935036us-gaap:LetterOfCreditMemberaciw:RefinanceAmendmentMemberus-gaap:LineOfCreditMember2024-02-260000935036aciw:RefinanceAmendmentMemberus-gaap:BridgeLoanMemberus-gaap:LineOfCreditMember2024-02-260000935036aciw:VariableRateOptionOneMemberus-gaap:FederalFundsEffectiveSwapRateMemberaciw:CreditAgreementMember2024-01-012024-06-300000935036aciw:VariableRateOptionOneMemberaciw:CreditAgreementMemberus-gaap:SecuredOvernightFinancingRateSofrMember2024-01-012024-06-300000935036aciw:VariableRateOptionOneMemberaciw:CreditAgreementMember2024-01-012024-06-300000935036us-gaap:BaseRateMembersrt:MinimumMemberaciw:VariableRateOptionOneMemberaciw:CreditAgreementMember2024-01-012024-06-300000935036us-gaap:BaseRateMemberaciw:VariableRateOptionOneMemberaciw:CreditAgreementMembersrt:MaximumMember2024-01-012024-06-300000935036srt:MinimumMemberaciw:VariableRateOptionTwoMemberaciw:CreditAgreementMemberus-gaap:SecuredOvernightFinancingRateSofrMember2024-01-012024-06-300000935036aciw:VariableRateOptionTwoMemberaciw:CreditAgreementMemberus-gaap:SecuredOvernightFinancingRateSofrMembersrt:MaximumMember2024-01-012024-06-300000935036aciw:CreditAgreementMember2024-06-300000935036aciw:ParentCompanyAndDomesticSubsidiariesMemberaciw:CreditAgreementMember2024-02-260000935036aciw:ForeignSubsidiariesMemberaciw:CreditAgreementMember2024-02-260000935036aciw:CreditAgreementMembersrt:MaximumMember2024-02-260000935036aciw:CreditAgreementMembersrt:MaximumMemberaciw:TermLoansMember2024-02-260000935036aciw:SeniorNotesFivePointSevenFivePercentDueTwoThousandTwentySixMemberus-gaap:SeniorNotesMember2018-08-210000935036aciw:TermLoansMember2024-06-300000935036aciw:TermLoansMember2023-12-310000935036us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2024-06-300000935036us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2023-12-310000935036aciw:SeniorNotesFivePointSevenFivePercentDueTwoThousandTwentySixMemberus-gaap:SeniorNotesMember2023-12-310000935036us-gaap:FederalFundsEffectiveSwapRateMemberaciw:CreditAgreementMemberaciw:OverdraftFacilityMember2024-01-012024-06-300000935036aciw:CreditAgreementMemberaciw:OverdraftFacilityMember2024-06-300000935036aciw:CreditAgreementMemberaciw:OverdraftFacilityMember2023-12-310000935036aciw:MultiYearLicenseAgreementMemberus-gaap:NotesPayableOtherPayablesMember2024-06-300000935036aciw:MultiYearLicenseAgreementMemberus-gaap:NotesPayableOtherPayablesMember2023-12-310000935036aciw:SoftwareAcquiredOrDevelopedForInternalUseMember2024-06-300000935036aciw:SoftwareAcquiredOrDevelopedForInternalUseMember2023-12-310000935036srt:MinimumMemberaciw:SoftwareAcquiredOrDevelopedForInternalUseMember2024-06-300000935036aciw:SoftwareAcquiredOrDevelopedForInternalUseMembersrt:MaximumMember2024-06-300000935036aciw:SoftwareAcquiredOrDevelopedForInternalUseMember2024-04-012024-06-300000935036aciw:SoftwareAcquiredOrDevelopedForInternalUseMember2023-04-012023-06-300000935036aciw:SoftwareAcquiredOrDevelopedForInternalUseMember2024-01-012024-06-300000935036aciw:SoftwareAcquiredOrDevelopedForInternalUseMember2023-01-012023-06-300000935036us-gaap:CustomerRelationshipsMember2024-06-300000935036us-gaap:CustomerRelationshipsMember2023-12-310000935036us-gaap:TrademarksAndTradeNamesMember2024-06-300000935036us-gaap:TrademarksAndTradeNamesMember2023-12-310000935036aciw:OtherFiniteLivedIntangibleAssetsMember2024-06-300000935036aciw:OtherFiniteLivedIntangibleAssetsMember2023-12-310000935036us-gaap:ComputerSoftwareIntangibleAssetMember2024-06-300000935036us-gaap:OtherIntangibleAssetsMember2024-06-300000935036aciw:EmployeeStockPurchasePlanTwentySeventeenMember2024-01-012024-06-300000935036aciw:EmployeeStockPurchasePlanTwentySeventeenMember2023-01-012023-06-300000935036us-gaap:EmployeeStockOptionMember2024-01-012024-06-300000935036us-gaap:EmployeeStockOptionMember2023-01-012023-06-300000935036srt:MinimumMemberaciw:TotalShareholderReturnMember2024-01-012024-06-300000935036aciw:TotalShareholderReturnMembersrt:MaximumMember2024-01-012024-06-300000935036aciw:TotalShareholderReturnMember2024-01-012024-06-300000935036aciw:TotalShareholderReturnMember2023-12-310000935036aciw:TotalShareholderReturnMember2024-06-300000935036aciw:TotalShareholderReturnMember2024-01-012024-03-310000935036aciw:TotalShareholderReturnMemberaciw:MonteCarloSimulationValuationModelMember2024-01-012024-06-300000935036aciw:TotalShareholderReturnMemberaciw:MonteCarloSimulationValuationModelMember2023-01-012023-06-300000935036us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-06-300000935036us-gaap:RestrictedStockUnitsRSUMember2023-12-310000935036us-gaap:RestrictedStockUnitsRSUMember2024-06-3000009350362023-02-240000935036aciw:BanksMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300000935036aciw:BanksMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300000935036aciw:BanksMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300000935036aciw:BanksMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300000935036aciw:MerchantsMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300000935036aciw:MerchantsMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300000935036aciw:MerchantsMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300000935036aciw:MerchantsMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300000935036aciw:BillersMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300000935036aciw:BillersMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300000935036aciw:BillersMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300000935036aciw:BillersMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300000935036aciw:BanksMemberus-gaap:OperatingSegmentsMemberaciw:BillerPaymentsMember2024-04-012024-06-300000935036aciw:MerchantsMemberus-gaap:OperatingSegmentsMemberaciw:BillerPaymentsMember2024-04-012024-06-300000935036aciw:BillersMemberus-gaap:OperatingSegmentsMemberaciw:BillerPaymentsMember2024-04-012024-06-300000935036aciw:BillerPaymentsMember2024-04-012024-06-300000935036aciw:BanksMemberaciw:MerchantPaymentsMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300000935036aciw:MerchantPaymentsMemberaciw:MerchantsMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300000935036aciw:MerchantPaymentsMemberaciw:BillersMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300000935036aciw:MerchantPaymentsMember2024-04-012024-06-300000935036aciw:BanksMemberaciw:FraudManagementMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300000935036aciw:FraudManagementMemberaciw:MerchantsMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300000935036aciw:FraudManagementMemberaciw:BillersMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300000935036aciw:FraudManagementMember2024-04-012024-06-300000935036aciw:RealTimePaymentsMemberaciw:BanksMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300000935036aciw:RealTimePaymentsMemberaciw:MerchantsMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300000935036aciw:RealTimePaymentsMemberaciw:BillersMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300000935036aciw:RealTimePaymentsMember2024-04-012024-06-300000935036aciw:BanksMemberaciw:IssuingAndAcquiringMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300000935036aciw:IssuingAndAcquiringMemberaciw:MerchantsMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300000935036aciw:IssuingAndAcquiringMemberaciw:BillersMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300000935036aciw:IssuingAndAcquiringMember2024-04-012024-06-300000935036aciw:BanksMemberus-gaap:OperatingSegmentsMemberaciw:BillerPaymentsMember2023-04-012023-06-300000935036aciw:MerchantsMemberus-gaap:OperatingSegmentsMemberaciw:BillerPaymentsMember2023-04-012023-06-300000935036aciw:BillersMemberus-gaap:OperatingSegmentsMemberaciw:BillerPaymentsMember2023-04-012023-06-300000935036aciw:BillerPaymentsMember2023-04-012023-06-300000935036aciw:BanksMemberaciw:MerchantPaymentsMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300000935036aciw:MerchantPaymentsMemberaciw:MerchantsMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300000935036aciw:MerchantPaymentsMemberaciw:BillersMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300000935036aciw:MerchantPaymentsMember2023-04-012023-06-300000935036aciw:BanksMemberaciw:FraudManagementMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300000935036aciw:FraudManagementMemberaciw:MerchantsMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300000935036aciw:FraudManagementMemberaciw:BillersMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300000935036aciw:FraudManagementMember2023-04-012023-06-300000935036aciw:RealTimePaymentsMemberaciw:BanksMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300000935036aciw:RealTimePaymentsMemberaciw:MerchantsMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300000935036aciw:RealTimePaymentsMemberaciw:BillersMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300000935036aciw:RealTimePaymentsMember2023-04-012023-06-300000935036aciw:BanksMemberaciw:IssuingAndAcquiringMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300000935036aciw:IssuingAndAcquiringMemberaciw:MerchantsMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300000935036aciw:IssuingAndAcquiringMemberaciw:BillersMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300000935036aciw:IssuingAndAcquiringMember2023-04-012023-06-300000935036aciw:BanksMemberus-gaap:OperatingSegmentsMemberaciw:BillerPaymentsMember2024-01-012024-06-300000935036aciw:MerchantsMemberus-gaap:OperatingSegmentsMemberaciw:BillerPaymentsMember2024-01-012024-06-300000935036aciw:BillersMemberus-gaap:OperatingSegmentsMemberaciw:BillerPaymentsMember2024-01-012024-06-300000935036aciw:BillerPaymentsMember2024-01-012024-06-300000935036aciw:BanksMemberaciw:MerchantPaymentsMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300000935036aciw:MerchantPaymentsMemberaciw:MerchantsMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300000935036aciw:MerchantPaymentsMemberaciw:BillersMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300000935036aciw:MerchantPaymentsMember2024-01-012024-06-300000935036aciw:BanksMemberaciw:FraudManagementMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300000935036aciw:FraudManagementMemberaciw:MerchantsMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300000935036aciw:FraudManagementMemberaciw:BillersMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300000935036aciw:FraudManagementMember2024-01-012024-06-300000935036aciw:RealTimePaymentsMemberaciw:BanksMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300000935036aciw:RealTimePaymentsMemberaciw:MerchantsMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300000935036aciw:RealTimePaymentsMemberaciw:BillersMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300000935036aciw:RealTimePaymentsMember2024-01-012024-06-300000935036aciw:BanksMemberaciw:IssuingAndAcquiringMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300000935036aciw:IssuingAndAcquiringMemberaciw:MerchantsMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300000935036aciw:IssuingAndAcquiringMemberaciw:BillersMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300000935036aciw:IssuingAndAcquiringMember2024-01-012024-06-300000935036aciw:BanksMemberus-gaap:OperatingSegmentsMemberaciw:BillerPaymentsMember2023-01-012023-06-300000935036aciw:MerchantsMemberus-gaap:OperatingSegmentsMemberaciw:BillerPaymentsMember2023-01-012023-06-300000935036aciw:BillersMemberus-gaap:OperatingSegmentsMemberaciw:BillerPaymentsMember2023-01-012023-06-300000935036aciw:BillerPaymentsMember2023-01-012023-06-300000935036aciw:BanksMemberaciw:MerchantPaymentsMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300000935036aciw:MerchantPaymentsMemberaciw:MerchantsMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300000935036aciw:MerchantPaymentsMemberaciw:BillersMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300000935036aciw:MerchantPaymentsMember2023-01-012023-06-300000935036aciw:BanksMemberaciw:FraudManagementMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300000935036aciw:FraudManagementMemberaciw:MerchantsMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300000935036aciw:FraudManagementMemberaciw:BillersMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300000935036aciw:FraudManagementMember2023-01-012023-06-300000935036aciw:RealTimePaymentsMemberaciw:BanksMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300000935036aciw:RealTimePaymentsMemberaciw:MerchantsMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300000935036aciw:RealTimePaymentsMemberaciw:BillersMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300000935036aciw:RealTimePaymentsMember2023-01-012023-06-300000935036aciw:BanksMemberaciw:IssuingAndAcquiringMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300000935036aciw:IssuingAndAcquiringMemberaciw:MerchantsMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300000935036aciw:IssuingAndAcquiringMemberaciw:BillersMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300000935036aciw:IssuingAndAcquiringMember2023-01-012023-06-300000935036aciw:BanksMemberus-gaap:OperatingSegmentsMemberaciw:SoftwareAndPlatformServiceMember2024-04-012024-06-300000935036aciw:BanksMemberus-gaap:OperatingSegmentsMemberaciw:SoftwareAndPlatformServiceMember2023-04-012023-06-300000935036aciw:BanksMemberus-gaap:OperatingSegmentsMemberaciw:SoftwareAndPlatformServiceMember2024-01-012024-06-300000935036aciw:BanksMemberus-gaap:OperatingSegmentsMemberaciw:SoftwareAndPlatformServiceMember2023-01-012023-06-300000935036aciw:BanksMemberus-gaap:OperatingSegmentsMemberus-gaap:LicenseMember2024-04-012024-06-300000935036aciw:BanksMemberus-gaap:OperatingSegmentsMemberus-gaap:LicenseMember2023-04-012023-06-300000935036aciw:BanksMemberus-gaap:OperatingSegmentsMemberus-gaap:LicenseMember2024-01-012024-06-300000935036aciw:BanksMemberus-gaap:OperatingSegmentsMemberus-gaap:LicenseMember2023-01-012023-06-300000935036us-gaap:MaintenanceMemberaciw:BanksMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300000935036us-gaap:MaintenanceMemberaciw:BanksMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300000935036us-gaap:MaintenanceMemberaciw:BanksMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300000935036us-gaap:MaintenanceMemberaciw:BanksMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300000935036aciw:BanksMemberus-gaap:ServiceMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300000935036aciw:BanksMemberus-gaap:ServiceMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300000935036aciw:BanksMemberus-gaap:ServiceMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300000935036aciw:BanksMemberus-gaap:ServiceMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300000935036aciw:MerchantsMemberus-gaap:OperatingSegmentsMemberaciw:SoftwareAndPlatformServiceMember2024-04-012024-06-300000935036aciw:MerchantsMemberus-gaap:OperatingSegmentsMemberaciw:SoftwareAndPlatformServiceMember2023-04-012023-06-300000935036aciw:MerchantsMemberus-gaap:OperatingSegmentsMemberaciw:SoftwareAndPlatformServiceMember2024-01-012024-06-300000935036aciw:MerchantsMemberus-gaap:OperatingSegmentsMemberaciw:SoftwareAndPlatformServiceMember2023-01-012023-06-300000935036aciw:MerchantsMemberus-gaap:OperatingSegmentsMemberus-gaap:LicenseMember2024-04-012024-06-300000935036aciw:MerchantsMemberus-gaap:OperatingSegmentsMemberus-gaap:LicenseMember2023-04-012023-06-300000935036aciw:MerchantsMemberus-gaap:OperatingSegmentsMemberus-gaap:LicenseMember2024-01-012024-06-300000935036aciw:MerchantsMemberus-gaap:OperatingSegmentsMemberus-gaap:LicenseMember2023-01-012023-06-300000935036us-gaap:MaintenanceMemberaciw:MerchantsMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300000935036us-gaap:MaintenanceMemberaciw:MerchantsMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300000935036us-gaap:MaintenanceMemberaciw:MerchantsMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300000935036us-gaap:MaintenanceMemberaciw:MerchantsMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300000935036us-gaap:ServiceMemberaciw:MerchantsMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300000935036us-gaap:ServiceMemberaciw:MerchantsMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300000935036us-gaap:ServiceMemberaciw:MerchantsMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300000935036us-gaap:ServiceMemberaciw:MerchantsMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300000935036aciw:BillersMemberus-gaap:OperatingSegmentsMemberaciw:SoftwareAndPlatformServiceMember2024-04-012024-06-300000935036aciw:BillersMemberus-gaap:OperatingSegmentsMemberaciw:SoftwareAndPlatformServiceMember2023-04-012023-06-300000935036aciw:BillersMemberus-gaap:OperatingSegmentsMemberaciw:SoftwareAndPlatformServiceMember2024-01-012024-06-300000935036aciw:BillersMemberus-gaap:OperatingSegmentsMemberaciw:SoftwareAndPlatformServiceMember2023-01-012023-06-300000935036aciw:BillersMemberus-gaap:OperatingSegmentsMemberus-gaap:LicenseMember2024-04-012024-06-300000935036aciw:BillersMemberus-gaap:OperatingSegmentsMemberus-gaap:LicenseMember2023-04-012023-06-300000935036aciw:BillersMemberus-gaap:OperatingSegmentsMemberus-gaap:LicenseMember2024-01-012024-06-300000935036aciw:BillersMemberus-gaap:OperatingSegmentsMemberus-gaap:LicenseMember2023-01-012023-06-300000935036us-gaap:MaintenanceMemberaciw:BillersMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300000935036us-gaap:MaintenanceMemberaciw:BillersMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300000935036us-gaap:MaintenanceMemberaciw:BillersMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300000935036us-gaap:MaintenanceMemberaciw:BillersMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300000935036us-gaap:ServiceMemberaciw:BillersMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300000935036us-gaap:ServiceMemberaciw:BillersMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300000935036us-gaap:ServiceMemberaciw:BillersMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300000935036us-gaap:ServiceMemberaciw:BillersMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300000935036country:US2024-04-012024-06-300000935036country:US2023-04-012023-06-300000935036country:US2024-01-012024-06-300000935036country:US2023-01-012023-06-300000935036us-gaap:NonUsMember2024-04-012024-06-300000935036us-gaap:NonUsMember2023-04-012023-06-300000935036us-gaap:NonUsMember2024-01-012024-06-300000935036us-gaap:NonUsMember2023-01-012023-06-300000935036country:US2024-06-300000935036country:US2023-12-310000935036us-gaap:NonUsMember2024-06-300000935036us-gaap:NonUsMember2023-12-31
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________
FORM 10-Q
____________________________________________________________________
(Mark One)
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2024
Or
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 0-25346
___________________________
ACI WORLDWIDE, INC.
(Exact name of registrant as specified in its charter)
___________________________
Delaware47-0772104
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
6060 Coventry Drive

Elkhorn,
Nebraska
68022
(Address of principal executive offices)(Zip code)
(402) 390-7600
(Registrant’s telephone number, including area code)
______________________________________________________
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of the Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer☒Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒
As of July 30, 2024, there were 104,657,257 shares of the registrant’s common stock outstanding.
Securities registered or to be registered pursuant to Section 12(b) of the Act.
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.005 par valueACIWNasdaq Global Select Market


TABLE OF CONTENTS
Page
Item 1

2
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
ACI WORLDWIDE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited and in thousands, except share and per share amounts)
June 30, 2024December 31, 2023
ASSETS
Current assets
Cash and cash equivalents
$156,983 $164,239 
Receivables, net of allowances of $1,307 and $4,295, respectively
369,171 452,337 
Settlement assets
792,745 723,039 
Prepaid expenses
30,485 31,479 
Other current assets
31,826 35,551 
Total current assets1,381,210 1,406,645 
Noncurrent assets
Accrued receivables, net
290,348 313,983 
Property and equipment, net
34,943 37,856 
Operating lease right-of-use assets
31,119 34,338 
Software, net
100,200 108,418 
Goodwill
1,226,026 1,226,026 
Intangible assets, net
178,601 195,646 
Deferred income taxes, net
61,230 58,499 
Other noncurrent assets
60,995 63,328 
TOTAL ASSETS$3,364,672 $3,444,739 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable
$48,798 $45,964 
Settlement liabilities
792,166 721,164 
Employee compensation
33,446 53,892 
Current portion of long-term debt34,892 74,405 
Deferred revenue
72,659 59,580 
Other current liabilities
62,160 82,244 
Total current liabilities1,044,121 1,037,249 
Noncurrent liabilities
Deferred revenue19,292 24,780 
Long-term debt973,121 963,599 
Deferred income taxes, net41,052 40,735 
Operating lease liabilities25,237 29,074 
Other noncurrent liabilities25,093 25,005 
Total liabilities2,127,916 2,120,442 
Commitments and contingencies
Stockholders’ equity
Preferred stock; $0.01 par value; 5,000,000 shares authorized; no shares issued at June 30, 2024, and December 31, 2023
— — 
Common stock; $0.005 par value; 280,000,000 shares authorized; 140,525,055 shares issued at June 30, 2024, and December 31, 2023
702 702 
Additional paid-in capital718,559 712,994 
Retained earnings1,418,103 1,394,967 
Treasury stock, at cost, 35,664,418 and 32,447,317 shares at June 30, 2024, and December 31, 2023, respectively
(786,526)(674,896)
Accumulated other comprehensive loss(114,082)(109,470)
Total stockholders’ equity1,236,756 1,324,297 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$3,364,672 $3,444,739 
The accompanying notes are an integral part of the condensed consolidated financial statements.
3
ACI WORLDWIDE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands, except per share amounts)
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Revenues
Software as a service and platform as a service
$235,399 $209,676 $451,131 $414,606 
License
65,582 44,671 95,555 63,002 
Maintenance
48,733 51,391 96,487 101,494 
Services
23,765 17,587 46,325 33,899 
Total revenues
373,479 323,325 689,498 613,001 
Operating expenses
Cost of revenue (1)
203,238 181,343 394,345 359,897 
Research and development
35,410 35,265 70,403 72,383 
Selling and marketing
28,551 33,289 55,301 68,724 
General and administrative
24,993 31,472 50,993 62,854 
Depreciation and amortization
27,586 31,436 55,195 62,975 
Total operating expenses
319,778 312,805 626,237 626,833 
Operating income (loss)
53,701 10,520 63,261 (13,832)
Other income (expense)
Interest expense
(18,471)(19,909)(37,481)(38,801)
Interest income
3,953 3,458 7,962 6,963 
Other, net
1,156 (4,092)(869)(7,487)
Total other income (expense)(13,362)(20,543)(30,388)(39,325)
Income (loss) before income taxes40,339 (10,023)32,873 (53,157)
Income tax expense (benefit)9,452 (3,313)9,737 (14,139)
Net income (loss)$30,887 $(6,710)$23,136 $(39,018)
Income (loss) per common share
Basic
$0.29 $(0.06)$0.22 $(0.36)
Diluted$0.29 $(0.06)$0.22 $(0.36)
Weighted average common shares outstanding
Basic105,395 108,455 106,097 108,306 
Diluted106,166 108,455 106,815 108,306 

(1) The cost of revenue excludes charges for depreciation and amortization.

The accompanying notes are an integral part of the condensed consolidated financial statements.
4
ACI WORLDWIDE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(unaudited and in thousands)
 
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Net income (loss)$30,887 $(6,710)$23,136 $(39,018)
Other comprehensive income (loss):
Foreign currency translation adjustments(2,208)2,990 (4,612)6,608 
Total other comprehensive income (loss)(2,208)2,990 (4,612)6,608 
Comprehensive income (loss)$28,679 $(3,720)$18,524 $(32,410)

The accompanying notes are an integral part of the condensed consolidated financial statements.
5
ACI WORLDWIDE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(unaudited and in thousands, except share amounts)
Three Months Ended June 30, 2024
Common StockAdditional
Paid-in Capital		Retained EarningsTreasury StockAccumulated Other
Comprehensive Loss		Total
Balance as of March 31, 2024$702 $714,936 $1,387,216 $(733,927)$(111,874)$1,257,053 
Net income
— — 30,887 — — 30,887 
Other comprehensive loss
— — — — (2,208)(2,208)
Stock-based compensation
— 10,720 — — — 10,720 
Shares issued and forfeited, net, under stock plans
— (7,097)— 8,066 — 969 
Repurchase of 1,682,787 shares of common stock
— — — (57,628)— (57,628)
Repurchase of stock-based compensation awards for tax withholdings
— — — (3,037)— (3,037)
Balance as of June 30, 2024$702 $718,559 $1,418,103 $(786,526)$(114,082)$1,236,756 
Three Months Ended June 30, 2023
Common StockAdditional
Paid-in Capital		Retained EarningsTreasury StockAccumulated Other
Comprehensive Loss		Total
Balance as of March 31, 2023$702 $701,040 $1,241,150 $(661,223)$(114,042)$1,167,627 
Net loss
— — (6,710)— — (6,710)
Other comprehensive income
— — — — 2,990 2,990 
Stock-based compensation
— 5,414 — — — 5,414 
Shares issued and forfeited, net, under stock plans
— (2,358)— 5,882 — 3,524 
Repurchase of stock-based compensation awards for tax withholdings
— — — (319)— (319)
Balance as of June 30, 2023$702 $704,096 $1,234,440 $(655,660)$(111,052)$1,172,526 
The accompanying notes are an integral part of the condensed consolidated financial statements.
6
ACI WORLDWIDE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(unaudited and in thousands, except share amounts)
Six Months Ended June 30, 2024
Common Stock
Additional
Paid-in Capital
Retained EarningsTreasury Stock
Accumulated Other
Comprehensive Loss
Total
Balance as of December 31, 2023$702 $712,994 $1,394,967 $(674,896)$(109,470)$1,324,297 
Net income
— — 23,136 — 23,136 
Other comprehensive loss
— — — — (4,612)(4,612)
Stock-based compensation
— 18,819 — — — 18,819 
Shares issued and forfeited, net, under stock plans
— (13,254)— 15,402 — 2,148 
Repurchase of 3,743,220 shares of common stock
— — — (120,693)— (120,693)
Repurchase of stock-based compensation awards for tax withholdings
— — — (6,339)— (6,339)
Balance as of June 30, 2024$702 $718,559 $1,418,103 $(786,526)$(114,082)$1,236,756 
Six Months Ended June 30, 2023
Common Stock
Additional
Paid-in Capital
Retained Earnings
Treasury Stock
Accumulated Other
Comprehensive Loss
Total
Balance as of December 31, 2022$702 $702,458 $1,273,458 $(665,771)$(117,660)$1,193,187 
Net loss
— — (39,018)— — (39,018)
Other comprehensive income
— — — — 6,608 6,608 
Stock-based compensation
— 10,715 — — — 10,715 
Shares issued and forfeited, net, under stock plans
— (9,077)— 13,431 — 4,354 
Repurchase of stock-based compensation awards for tax withholdings
— — — (3,320)— (3,320)
Balance as of June 30, 2023$702 $704,096 $1,234,440 $(655,660)$(111,052)$1,172,526 
The accompanying notes are an integral part of the condensed consolidated financial statements.
7
ACI WORLDWIDE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited and in thousands)
Six Months Ended
June 30,
20242023
Cash flows from operating activities:
Net income (loss)$23,136 $(39,018)
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Depreciation
7,195 13,091 
Amortization
48,000 49,884 
Amortization of operating lease right-of-use assets
4,999 6,491 
Amortization of deferred debt issuance costs
1,598 2,492 
Deferred income taxes
1,516 (22,641)
Stock-based compensation expense
18,819 10,715 
Other
(2,067)311 
Changes in operating assets and liabilities:
Receivables
99,598 81,856 
Accounts payable
4,849 (1,954)
Accrued employee compensation
(19,884)(4,628)
Deferred revenue
8,317 12,700 
Other current and noncurrent assets and liabilities
(17,818)(51,791)
Net cash flows from operating activities
178,258 57,508 
Cash flows from investing activities:
Purchases of property and equipment
(4,954)(4,576)
Purchases of software and distribution rights
(19,024)(15,021)
Net cash flows from investing activities
(23,978)(19,597)
Cash flows from financing activities:
Proceeds from issuance of common stock
1,397 1,426 
Proceeds from exercises of stock options
752 2,869 
Repurchase of stock-based compensation awards for tax withholdings(6,339)(3,320)
Repurchases of common stock
(119,674)— 
Proceeds from revolving credit facility
164,000 55,000 
Repayment of revolving credit facility
(152,000)(45,000)
Proceeds from term portion of credit agreement
500,000 — 
Repayment of term portion of credit agreement
(538,448)(34,081)
Payments on or proceeds from other debt, net(8,669)(11,830)
Payments for debt issuance costs(5,141)(2,160)
Net decrease in settlement assets and liabilities
(6,151)(24,087)
Net cash flows from financing activities
(170,273)(61,183)
Effect of exchange rate fluctuations on cash1,290 5,427 
Net decrease in cash and cash equivalents
(14,703)(17,845)
Cash and cash equivalents, including settlement deposits, beginning of period238,821 214,672 
Cash and cash equivalents, including settlement deposits, end of period$224,118 $196,827 
Reconciliation of cash and cash equivalents to the Consolidated Balance Sheets
Cash and cash equivalents$156,983 $132,391 
Settlement deposits67,135 64,436 
Total cash and cash equivalents, including settlement deposits$224,118 $196,827 
Supplemental cash flow information
Income taxes paid
$14,686 $33,907 
Interest paid
$36,142 $36,102 
The accompanying notes are an integral part of the condensed consolidated financial statements.
8

ACI WORLDWIDE, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
1. Condensed Consolidated Financial Statements
The unaudited condensed consolidated financial statements include the accounts of ACI Worldwide, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). All intercompany balances and transactions have been eliminated. The condensed consolidated financial statements as of June 30, 2024, and for the three and six months ended June 30, 2024 and 2023, are unaudited and reflect all adjustments of a normal recurring nature, which are, in the opinion of management, necessary for a fair presentation, in all material respects, of the financial position and operating results for the interim periods. The condensed consolidated balance sheet as of December 31, 2023, is derived from the audited financial statements.

The condensed consolidated financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2023, filed on February 29, 2024. Results for the three and six months ended June 30, 2024, are not necessarily indicative of results that may be attained in the future.

The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make judgments, estimates, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions are affected by management’s application of accounting policies, as well as uncertainty in the current economic environment. Actual results could differ from those estimates.

Other Current Liabilities
The components of other current liabilities are included in the following table (in thousands):
June 30, 2024December 31, 2023
Operating lease liabilities$9,250 $9,348 
Accrued interest9,082 9,172 
Vendor financed licenses8,563 12,702 
Other35,265 51,022 
Total other current liabilities$62,160 $82,244 

Settlement Assets and Liabilities
Individuals and businesses settle their obligations to the Company’s various Biller clients using credit or debit cards or via automated clearing house (“ACH”) payments. The Company creates a receivable for the amount due from the credit or debit card processor and an offsetting payable to the client. Upon confirmation that the funds have been received, the Company settles the obligation to the client. Due to timing, in some instances, the Company may (1) receive the funds into bank accounts controlled by and in the Company’s name that are not disbursed to its clients by the end of the day, resulting in a settlement deposit on the Company’s books and (2) disburse funds to its clients in advance of receiving funds from the credit or debit card processor, resulting in a net settlement receivable position.

9
Off Balance Sheet Settlement Accounts
The Company also enters into agreements with certain Biller clients to process payment funds on their behalf. When an ACH or automated teller machine network payment transaction is processed, a transaction is initiated to withdraw funds from the designated source account and deposit them into a settlement account, which is a trust account maintained for the benefit of the Company’s clients. A simultaneous transaction is initiated to transfer funds from the settlement account to the intended destination account. These “back to back” transactions are designed to settle at the same time, usually overnight, such that the Company receives the funds from the source at the same time as it sends the funds to their destination. However, due to the transactions being with various financial institutions there may be timing differences that result in float balances. These funds are maintained in accounts for the benefit of the client which is separate from the Company’s corporate assets. As the Company does not take ownership of the funds, these settlement accounts are not included in the Company’s balance sheet. The Company is entitled to interest earned on the fund balances. The collection of interest on these settlement accounts is considered in the Company’s determination of its fee structure for clients and represents a portion of the payment for services performed by the Company. The amount of settlement funds as of June 30, 2024, and December 31, 2023, was $202.6 million and $273.2 million, respectively.

Fair Value
The fair value of the Company’s Credit Agreement approximates the carrying value due to the floating interest rate (Level 2 of the fair value hierarchy). The Company measures the fair value of its Senior Notes based on Level 2 inputs, which include quoted market prices and interest rate spreads of similar securities. The fair value of the Company’s 5.750% Senior Notes due 2026 (“2026 Notes”) was $397.9 million and $398.5 million as of June 30, 2024, and December 31, 2023, respectively.

The fair values of cash and cash equivalents approximate the carrying values due to the short period of time to maturity (Level 2 of the fair value hierarchy).

Goodwill
In accordance with the Accounting Standards Codification ("ASC") 350, Intangibles – Goodwill and Other, the Company assesses goodwill for impairment annually during the fourth quarter of its fiscal year using October 1 balances or when there is evidence that events or changes in circumstances indicate that the carrying amount of the asset may not be recovered. The Company evaluates goodwill at the reporting unit level and has identified its operating segments, Banks, Merchants, and Billers, as the reporting units. As of June 30, 2024, the Company's goodwill balance of $1.2 billion was allocated $671.7 million to Banks, $137.3 million to Merchants, and $417.0 million to Billers.

Recoverability of goodwill is measured using a discounted cash flow model incorporating discount rates commensurate with the risks involved. Use of a discounted cash flow model is common practice in impairment testing in the absence of available transactional market evidence to determine the fair value. The calculated fair value was substantially in excess of the current carrying value for all reporting units based upon the October 1, 2023, annual impairment test and there have been no indications of impairment in the subsequent periods.

Equity Method Investment
In July 2019, the Company invested $18.3 million for a 30% non-controlling financial interest in a payment technology and services company in India. The Company accounted for this investment using the equity method in accordance with ASC 323, Investments - Equity Method and Joint Ventures. The Company records its share of earnings and losses in the investment on a one-quarter lag basis. Accordingly, the Company recorded an investment of $19.3 million and $18.5 million, which is included in other noncurrent assets in the condensed consolidated balance sheet as of June 30, 2024, and December 31, 2023, respectively.

Recently Issued Accounting Standards Not Yet Effective
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024, and early application is permitted. The Company is currently assessing the impact the adoption of ASU 2023-07 will have on its segment reporting disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, to enhance the transparency and decision usefulness of income tax disclosures. The amendments in this update will require disclosure of more disaggregated information about a reporting entity's effective tax rate reconciliation and income taxes paid.
10
ASU 2023-09 is effective for annual periods beginning after December 15, 2024, and early application is permitted for annual financial statements that have not yet been issued or made available for issuance. The Company is currently assessing the impact the adoption of ASU 2023-09 will have on its income tax disclosures.

2. Revenue
In accordance with ASC 606, Revenue From Contracts With Customers, revenue is recognized upon transfer of control of promised products and/or services to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products and services. Revenue is recognized net of any taxes collected from customers and subsequently remitted to governmental authorities. See Note 9, Segment Information, for additional information, including disaggregation of revenue based on primary solution category.

Total receivables represent amounts billed and amounts earned that are to be billed in the future (i.e., accrued receivables). Included in accrued receivables are services, software as a service ("SaaS"), and platform as a service ("PaaS") revenues earned in the current period but billed in the following period, and amounts due under multi-year software license arrangements with extended payment terms for which the Company has an unconditional right to invoice and receive payment subsequent to invoicing.

Total receivables, net is comprised of the following (in thousands):
June 30, 2024December 31, 2023
Billed receivables$161,552 $250,423 
Allowance for doubtful accounts(1,307)(4,295)
Billed receivables, net160,245 246,128 
Current accrued receivables, net208,926 206,209 
Long-term accrued receivables, net290,348 313,983 
Total accrued receivables, net499,274 520,192 
Total receivables, net$659,519 $766,320 

No customer accounted for more than 10% of the Company’s consolidated receivables balance as of June 30, 2024 and December 31, 2023.

Deferred revenue includes amounts due or received from customers for software licenses, maintenance, services, and/or SaaS and PaaS services in advance of recording the related revenue.

Changes in deferred revenue were as follows (in thousands):
Balance, December 31, 2023
$84,360 
Deferral of revenue65,257 
Recognition of deferred revenue(57,076)
Foreign currency translation(590)
Balance, June 30, 2024
$91,951 

Revenue allocated to remaining performance obligations represents contracted revenue that will be recognized in future periods, which is comprised of deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. This does not include:
•Revenue that will be recognized in future periods from capacity overages that are accounted for as a usage-based royalty.
•SaaS and PaaS revenue from variable consideration that will be recognized in accordance with the ‘right to invoice’ practical expedient or meets the allocation objective.

11
Revenue allocated to remaining performance obligations was $731.0 million as of June 30, 2024, of which the Company expects to recognize approximately 53% over the next 12 months and the remainder thereafter.

During the three and six months ended June 30, 2024, and 2023, revenue recognized by the Company from performance obligations satisfied in previous periods was not significant.
3. Debt
As of June 30, 2024, the Company had $136.0 million, $481.3 million, and $400.0 million outstanding under its Revolving Credit Facility, Term Loans, and Senior Notes, respectively, with up to $462.1 million of unused borrowings under the Revolving Credit Facility portion of the Credit Agreement, as amended, and up to $1.9 million of unused borrowings under Letter of Credit agreements. The amount of unused borrowings actually available varies in accordance with the terms of the agreement.

Credit Agreement
On February 26, 2024, ACI Worldwide, Inc. (the “Company”) entered into a Refinance Amendment (the “Amendment”) to the Second Amended and Restated Credit Agreement, dated as of April 5, 2019 (as amended, restated, supplemented or otherwise modified from time to time, including by the Amendment, the “Credit Agreement”) among the Company, the subsidiary borrowers from time to time party thereto, the lenders from time to time party thereto, Bank of America, N.A., as administrative agent and a lender, BofA Securities, Inc., PNC Capital Markets LLC, Wells Fargo Securities, LLC, and TD Securities (USA) LLC, as Joint Lead Arrangers and Joint Bookrunners, and the other financial institutions party thereto.

The Amendment (i) provides a senior secured term loan facility (the “Term Loan Facility”) in an aggregate principal amount of $500 million, (ii) provides a senior secured revolving credit facility (the “Revolving Loan Facility” and together with the Term Loan Facility, the “Credit Facilities”) of up to $600 million, and (iii) extends the maturity date of the Facilities to February 26, 2029 (the “Maturity Date”), provided that if any of the Company’s 5.750% Senior Notes due 2026 are outstanding on the date that is 91 days before the maturity thereof (the “Springing Maturity Date”), and the Company does not have sufficient liquidity as of such date, the Maturity Date will be the Springing Maturity Date. The Revolving Loan Facility includes a $35 million sublimit for the issuance of standby letters of credit and a $20 million sublimit for swingline loans. Amounts repaid under the Revolving Facility may be reborrowed.

Borrowings under the Credit Facilities bear interest at a rate equal to, at borrower's option, either (A) a base rate determined by reference to the highest of (1) the rate of interest per annum publicly announced by Bank of America as its prime rate, (2) the federal funds effective rate plus 0.5%, (3) term Secured Overnight Financing Rate ("SOFR") plus 1%, and (4) 1% or (B) term SOFR for applicable interest period relevant to such borrowing, in each case plus an applicable margin. The applicable margin for borrowings under the Credit Facilities is, based on the calculation of the applicable consolidated total leverage ratio, between 0.5% to 1.5% with respect to base rate borrowings and between 1.5% and 2.5% with respect to term SOFR rate borrowings. Interest is due and payable monthly. The interest rate in effect for the Credit Facility as of June 30, 2024, was 7.44%.

The Company is also required to pay (a) a commitment fee related to the unutilized commitments under the Revolving Credit Facility, payable quarterly in arrears, (b) letter of credit fees on the maximum amount available to be drawn under all outstanding letters of credit in an amount equal to the applicable margin on SOFR rate borrowings under the Revolving Credit Facility on an annual basis, payable quarterly in arrears, and (c) customary fronting fees for the issuance of letters of credit fees and agency fees.

The Company’s subsidiaries, ACI Worldwide Corp. and ACI Payments, Inc. are co-borrowers under the Credit Agreement. The obligations of the borrowers under the Credit Facilities and the obligations of the Company and its subsidiaries under cash management arrangements entered into with lenders under the Credit Facilities (or affiliates thereof) are jointly and severally guaranteed by the Company and all of its existing and future material domestic subsidiaries, subject to certain exclusions. The obligations of the borrowers in respect of the Credit Facilities are secured by first-priority security interests in substantially all assets of the borrowers, including 100% of the capital stock of each domestic subsidiary of the borrower and 65% of the voting capital stock of each foreign subsidiary that is directly owned by a borrower, in each case subject to certain exclusions set forth in the Credit Agreement.

The Credit Agreement contains customary negative covenants that, among other things, restrict the Company’s ability to incur additional indebtedness, grant additional liens, and make certain acquisitions, investments, asset dispositions, and restricted payments. In addition, the Credit Agreement contains financial covenants that require the Company to maintain, as of the end of any fiscal quarter, (i) a consolidated total net leverage ratio of less than or equal to 4.25 to 1.00, (ii) a consolidated senior
12
secured net leverage ratio of less than or equal to 3.75 to 1.00, and (iii) a minimum consolidated interest coverage ratio of greater than or equal to 3.00 to 1.00, in each case subject to certain exclusions as set forth in the Credit Agreement.

The Credit Agreement also contains certain customary affirmative covenants and events of default. If an event of default, as specified in the Credit Agreement, shall occur and be continuing, the Company may be required to repay all amounts outstanding under the Credit Facilities.

Senior Notes
On August 21, 2018, the Company completed a $400.0 million offering of the 2026 Notes at an issue price of 100% of the principal amount in a private placement for resale to qualified institutional buyers. The 2026 Notes bear interest at an annual rate of 5.750%, payable semi-annually in arrears on February 15 and August 15 of each year. The 2026 Notes will mature on August 15, 2026.

Maturities on debt outstanding as of June 30, 2024, are as follows (in thousands):
Fiscal Year Ending December 31,
Remainder of 2024$18,750 
202537,500 
2026437,500 
202737,500 
202837,500 
Thereafter448,500 
Total$1,017,250 

As of June 30, 2024, and at all times during the period, the Company was in compliance with its financial debt covenants.

Total debt is comprised of the following (in thousands):
June 30, 2024December 31, 2023
Term loans$481,250 $519,698 
Revolving credit facility136,000 124,000 
5.750% Senior notes, due August 2026
400,000 400,000 
Debt issuance costs(9,237)(5,694)
Total debt1,008,013 1,038,004 
Less: current portion of term loans37,500 77,900 
Less: current portion of debt issuance costs(2,608)(3,495)
Total long-term debt$973,121 $963,599 

Overdraft Facility
In 2019, the Company and ACI Payments, Inc. entered in to an uncommitted overdraft facility with Bank of America, N.A. The overdraft facility bears interest at the federal funds effective rate plus 2.25% based on the Company’s average outstanding balance and the frequency in which overdrafts occur. The overdraft facility acts as a secured loan under the terms of the Credit Agreement to provide an additional funding mechanism for timing differences that can occur in the bill payment settlement process. Amounts outstanding on the overdraft facility are included in other current liabilities in the condensed consolidated balance sheet. As of June 30, 2024, there was $75.0 million available and no amount outstanding on the overdraft facility. As of December 31, 2023, there was no amount outstanding on the overdraft facility.

Other
The Company finances certain multi-year license agreements for internal-use software. Upon execution, these arrangements are treated as a non-cash investing and financing activity for purposes of the condensed consolidated statements of cash flows. As of June 30, 2024, no amount was outstanding on these agreements. As of December 31, 2023, $3.6 million was outstanding on these agreements, all of which was included in other current liabilities in the consolidated balance sheet.
13
4. Software and Other Intangible Assets
The carrying amount and accumulated amortization of the Company's software assets subject to amortization at each balance sheet date are as follows (in thousands):
June 30, 2024December 31, 2023
Gross Carrying AmountAccumulated AmortizationNet BalanceGross Carrying AmountAccumulated AmortizationNet Balance
Software for internal use$479,657 $(379,457)$100,200 $469,325 $(360,907)$108,418 

Amortization of software for internal use is computed using the straight-line method over an estimated useful life of generally three to eight years. Software for internal use amortization expense recorded during the three months ended June 30, 2024 and 2023, totaled $15.8 million and $16.0 million, respectively. Software for internal use amortization expense recorded during the six months ended June 30, 2024 and 2023, totaled $31.3 million and $33.0 million, respectively. These software amortization expense amounts are reflected in depreciation and amortization in the condensed consolidated statements of operations.

The carrying amount and accumulated amortization of the Company’s other intangible assets subject to amortization at each balance sheet date are as follows (in thousands):
June 30, 2024December 31, 2023
Gross Carrying AmountAccumulated AmortizationNet BalanceGross Carrying AmountAccumulated AmortizationNet Balance
Customer relationships$446,262 $(267,661)$178,601 $447,654 $(252,828)$194,826 
Trademarks and trade names21,795 (21,795)— 21,899 (21,079)820 
Total other intangible assets$468,057 $(289,456)$178,601 $469,553 $(273,907)$195,646 

Other intangible assets amortization expense recorded during the three months ended June 30, 2024 and 2023, totaled $8.2 million and $8.5 million, respectively. Other intangible assets amortization expense recorded during the six months ended June 30, 2024 and 2023, totaled $16.7 million and $16.9 million, respectively.

Based on capitalized intangible assets as of June 30, 2024, estimated amortization expense amounts in future fiscal years are as follows (in thousands):
Fiscal Year Ending December 31,Software AmortizationOther Intangible Assets Amortization
Remainder of 2024$29,342 $12,785 
202542,369 20,977 
202621,689 20,977 
20275,281 20,713 
20281,517 18,315 
Thereafter2 84,834 
Total$100,200 $178,601 

5. Stock-Based Compensation Plans
Employee Stock Purchase Plan
Shares issued under the 2017 Employee Stock Purchase Plan during the six months ended June 30, 2024 and 2023, totaled 51,397 and 65,770, respectively.

14
Stock Options
A summary of stock option activity is as follows:
Number of
Shares		Weighted Average
Exercise Price ($)		Weighted Average
Remaining Contractual
Term (Years)		Aggregate Intrinsic Value
of In-the-Money
Options ($)
Outstanding as of December 31, 2023873,512 $18.76 
Exercised(40,307)18.69 
Outstanding as of June 30, 2024833,205 $18.76 1.52$17,356,237 
Exercisable as of June 30, 2024833,205 $18.76 1.52$17,356,237 

The total intrinsic value of stock options exercised during the six months ended June 30, 2024 and 2023, was $0.6 million and $0.8 million, respectively. There were no stock options granted during the six months ended June 30, 2024 or 2023.

Performance Share Awards
During the six months ended June 30, 2024, pursuant to the Company's 2020 Equity and Incentive Compensation Plan, the Company granted performance share awards with a total shareholder return component ("TSRs"). These performance share awards are earned, if at all, based upon achievement, over a specified period that must not be less than one year and is typically a three-year performance period. The awards have operating performance goals that include (i) adjusted EBITDA metrics and (ii) revenue growth rates as determined by the Company with a TSR multiplier up to plus or minus 20%. Up to 200% of the performance shares could be earned upon achievement of the performance goals, including the multiplier. On a quarterly basis, management evaluates the probability that the threshold performance goals will be achieved, if at all, and the anticipated level of attainment to determine the amount of compensation expense to record in the consolidated financial statements.
A summary of nonvested TSRs is as follows:
Number of
Shares		Weighted Average
Grant Date Fair Value
Nonvested as of December 31, 2023673,126 $40.73 
Granted561,471 34.00 
Forfeited(18,241)34.48 
Change in payout rate(203,945)50.60 
Nonvested as of June 30, 20241,012,411 $35.13 

In the first quarter of 2024, the TSRs granted in 2021 were earned by the employees. However, the performance goals were not met and no shares were issued.

The fair value of TSRs granted during the six months ended June 30, 2024 and 2023, were estimated on the date of grant using the Monte Carlo simulation model, acceptable under ASC 718, Compensation - Stock Compensation, using the following weighted average assumptions:
Six months ended June 30,
20242023
Expected life (years)2.72.9
Risk-free interest rate4.4 %3.6 %
Expected volatility36.8 %37.1 %
Expected dividend yield— — 

15
Restricted Share Units
A summary of nonvested restricted share unit awards ("RSUs") is as follows:
Number of
Shares		Weighted Average
Grant Date Fair Value
Nonvested as of December 31, 20231,574,883 $26.81 
Granted1,297,577 32.06 
Vested(624,487)28.78 
Forfeited(86,941)27.77 
Nonvested as of June 30, 20242,161,032 $29.36 

During the six months ended June 30, 2024, a total of 624,487 RSUs vested. The Company withheld 190,072 of those shares to pay the employees’ portion of the minimum payroll withholding taxes.

As of June 30, 2024, there was unrecognized compensation expense of $58.0 million related to RSUs and $21.9 million related to TSRs, which the Company expects to recognize over a weighted average period of 2.3 years and 2.2 years, respectively.

The Company recorded stock-based compensation expense recognized under ASC 718 for the three months ended June 30, 2024 and 2023, of $10.7 million and $5.4 million, respectively, with corresponding tax benefits of $1.7 million and $1.0 million, respectively. The Company recorded stock-based compensation expense recognized under ASC 718 for the six months ended June 30, 2024 and 2023, of $18.8 million and $10.7 million, respectively, with corresponding tax benefits of $3.1 million and $2.0 million, respectively.
6. Common Stock and Treasury Stock
In 2005, the board approved a stock repurchase program authorizing the Company, as market and business conditions warrant, to acquire its common stock and periodically authorize additional funds for the program. In June 2024, the board approved the repurchase of the Company's common stock of up to $400.0 million, in place of the remaining purchase amounts previously authorized.

The Company repurchased 3,743,220 shares for $120.7 million during the six months ended June 30, 2024. Under the program to date, the Company has repurchased 62,664,520 shares for approximately $1.1 billion. As of June 30, 2024, the maximum remaining amount authorized for purchase under the stock repurchase program was $380.3 million.

7. Earnings (Loss) Per Share
Basic earnings (loss) per share is computed in accordance with ASC 260, Earnings Per Share, based on weighted average outstanding common shares. Diluted earnings (loss) per share is computed based on basic weighted average outstanding common shares adjusted for the dilutive effect of stock options, RSUs, and certain contingently issuable shares for which performance targets have been achieved.

The following table reconciles the weighted average share amounts used to compute both basic and diluted earnings (loss) per share (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Weighted average shares outstanding:
Basic weighted average shares outstanding105,395 108,455 106,097 108,306 
Add: Dilutive effect of stock options and RSUs771 — 718 — 
Diluted weighted average shares outstanding106,166 108,455 106,815 108,306 

16
The diluted earnings (loss) per share computation excludes 1.0 million and 3.7 million options to purchase shares, RSUs, and contingently issuable shares during the three months ended June 30, 2024 and 2023, respectively, as their effect would be anti-dilutive. The diluted earnings (loss) per share computation excludes 1.7 million and 3.1 million options to purchase shares, RSUs, and contingently issuable shares during the six months ended June 30, 2024 and 2023, respectively, as their effect would be anti-dilutive.

Common stock outstanding as of June 30, 2024, and December 31, 2023, was 104,860,637 and 108,077,738, respectively.
8. Other, Net
Other, net is primarily comprised of foreign currency transaction gains and losses. Other, net was $1.2 million of income and $4.1 million of expense for the three months ended June 30, 2024 and 2023, respectively. Other, net was $0.9 million and $7.5 million of expense for the six months ended June 30, 2024 and 2023, respectively.
9. Segment Information
The Company reports financial performance based on its operating segments, Banks, Merchants, and Billers, and analyzes Segment Adjusted EBITDA as a measure of segment profitability.

The Company’s Chief Executive Officer is also the chief operating decision maker ("CODM"). The CODM, together with other senior management personnel, focus their review on consolidated financial information and the allocation of resources based on operating results, including revenues and Segment Adjusted EBITDA, for each segment, separate from corporate operations. No operating segments have been aggregated to form the reportable segments.

Banks. ACI provides payment solutions to large and mid-size banks globally for retail banking, real time, digital, and other payment services. These solutions transform banks’ complex payment environments to speed time to market, reduce costs, and deliver a consistent experience to customers across channels while enabling them to prevent and rapidly react to fraudulent activity. In addition, they enable banks to meet the requirements of different real-time payments schemes and to quickly create differentiated products to meet consumer, business, and merchant demands.

Merchants. ACI’s support of merchants globally includes Tier 1 and Tier 2 merchants, online-only merchants and the payment service providers, independent selling organizations, value-added resellers, and acquirers who service them. These customers operate in a variety of verticals, including general merchandise, grocery, hospitality, dining, transportation, and others. The Company's solutions provide merchants with a secure, omni-channel payments platform that gives them independence from third-party payment providers. They also offer secure solutions to online-only merchants that provide consumers with a convenient and seamless way to shop.

Billers. Within the billers segment, ACI provides electronic bill presentment and payment (“EBPP”) services to companies operating in the consumer finance, insurance, healthcare, higher education, utility, government, and mortgage categories. The solutions enable these customers to support a wide range of payment options and provide a convenient consumer payments experience that drives consumer loyalty and increases revenue.

Revenue is attributed to the reportable segments based upon customer. Expenses are attributed to the reportable segments in one of three methods: (1) direct costs of the segment, (2) labor costs that can be attributed based upon time tracking for individual projects, or (3) costs that are allocated. Allocated costs are generally marketing and sales related activities.

Segment Adjusted EBITDA is the measure reported to the CODM for purposes of making decisions on allocating resources and assessing the performance of the Company’s segments, and, therefore, Segment Adjusted EBITDA is presented in conformity with ASC 280, Segment Reporting. Segment Adjusted EBITDA is defined as earnings (loss) from operations before interest, income tax expense (benefit), depreciation and amortization (“EBITDA”) adjusted to exclude net other income (expense).

Corporate and unallocated expenses includes global facilities and information technology costs and long-term product roadmap expenses in addition to corporate overhead costs that are not allocated to reportable segments. The overhead costs relate to human resources, finance, legal, accounting, and merger and acquisition activity. These costs along with depreciation and amortization and stock-based compensation are not considered when management evaluates segment performance.

17
The following is selected financial data for the Company’s reportable segments for the periods indicated (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Revenue
Banks$143,649 $117,507 $249,078 $205,547 
Merchants38,017 36,508 73,745 71,289 
Billers191,813 169,310 366,675 336,165 
Total revenue$373,479 $323,325 $689,498 $613,001 
Segment Adjusted EBITDA
Banks$79,212 $51,622 $120,850 $76,303 
Merchants15,375 9,911 26,026 16,455 
Billers37,435 31,229 68,172 60,870 
Depreciation and amortization(27,586)(31,436)(55,195)(62,975)
Stock-based compensation expense(10,720)(5,414)(18,819)(10,715)
Corporate and unallocated expenses(40,015)(45,392)(77,773)(93,770)
Interest, net(14,518)(16,451)(29,519)(31,838)
Other, net1,156 (4,092)(869)(7,487)
Income (loss) before income taxes$40,339 $(10,023)$32,873 $(53,157)

Assets are not allocated to segments, and the Company’s CODM does not evaluate operating segments using discrete asset information.

18
The following is revenue by primary solution category for the Company’s reportable segments for the periods indicated (in thousands):
Three Months Ended June 30, 2024
BanksMerchantsBillersTotal
Primary Solution Categories
Bill Payments$— $— $191,813 $191,813 
Merchant Payments— 38,017 — 38,017 
Fraud Management9,187 — — 9,187 
Real-Time Payments26,429 — — 26,429 
Issuing and Acquiring108,033 — — 108,033 
Total$143,649 $38,017 $191,813 $373,479 
Three Months Ended June 30, 2023
BanksMerchantsBillersTotal
Primary Solution Categories
Bill Payments$— $— $169,310 $169,310 
Merchant Payments— 36,508 — 36,508 
Fraud Management12,153 — — 12,153 
Real-Time Payments26,499 — — 26,499 
Issuing and Acquiring78,855 — — 78,855 
Total$117,507 $36,508 $169,310 $323,325 
Six Months Ended June 30, 2024
BanksMerchantsBillersTotal
Primary Solution Categories
Bill Payments$— $— $366,675 $366,675 
Merchant Payments— 73,745 — 73,745 
Fraud Management20,694 — — 20,694 
Real-Time Payments51,177 — — 51,177 
Issuing and Acquiring177,207 — — 177,207 
Total$249,078 $73,745 $366,675 $689,498 
Six Months Ended June 30, 2023
BanksMerchantsBillersTotal
Primary Solution Categories
Bill Payments$— $— $336,165 $336,165 
Merchant Payments— 71,289 — 71,289 
Fraud Management21,508 — — 21,508 
Real-Time Payments45,897 — — 45,897 
Issuing and Acquiring138,142 — — 138,142 
Total$205,547 $71,289 $336,165 $613,001 


19
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Banks
Software as a service and platform as a service$11,709 $9,742 $22,227 $18,991 
License63,486 42,885 92,019 59,201 
Maintenance44,973 47,624 89,299 93,966 
Services23,481 17,256 45,533 33,389 
Total$143,649 $117,507 $249,078 $205,547 
Merchants
Software as a service and platform as a service$31,877 $30,648 $62,229 $59,498 
License2,096 1,786 3,536 3,801 
Maintenance3,760 3,743 7,188 7,480 
Services284 331 792 510 
Total$38,017 $36,508 $73,745 $71,289 
Billers
Software as a service and platform as a service$191,813 $169,286 $366,675 $336,117 
License— — — — 
Maintenance— 24 — 48 
Services— — — — 
Total$191,813 $169,310 $366,675 $336,165 

The following is the Company's revenue by geographic location for the periods indicated (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Revenue
United States$229,543 $205,199 $457,650 $406,468 
Other143,936 118,126 231,848 206,533 
Total$373,479 $323,325 $689,498 $613,001 

The following is the Company’s long-lived assets by geographic location for the periods indicated (in thousands):
June 30, 2024December 31, 2023
Long-lived Assets
United States$1,182,509 $1,216,158 
Other739,723 763,437 
Total$1,922,232 $1,979,595 

No single customer accounted for more than 10% of the Company’s consolidated revenues during the three and six months ended June 30, 2024 and 2023. No other country outside the United States accounted for more than 10% of the Company's consolidated revenues during the six months ended June 30, 2024 and 2023.
20
10. Income Taxes

For the three and six months ended June 30, 2024, the Company's effective tax rate was 23% and 30%, respectively. The Company reported a tax charge on pretax income for both the three and six months ended June 30, 2024, with foreign entities recognizing earnings of $51.7 million and $40.5 million, respectively.

For the three and six months ended June 30, 2023, the Company's effective tax rate was 33% and 27%, respectively. The Company reported tax benefit on pretax loss for both the three and six months ended June 30, 2023, with foreign entities recognizing earnings of $24.3 million and $17.1 million, respectively.

The Company’s effective tax rate could fluctuate on a quarterly basis due to the occurrence of significant and unusual or infrequent items, such as vesting of stock-based compensation or foreign currency gains and losses. The Company’s effective tax rate could also fluctuate due to changes in the valuation of its deferred tax assets or liabilities, or by changes in tax laws, regulations, accounting principles, or interpretations thereof. In addition, the Company is occasionally subject to examination of its income tax returns by tax authorities in the jurisdictions it operates. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes.

The Organization for Economic Co-operation and Development Inclusive Framework on Base Erosion and Profit Shifting released Pillar Two Model Rules (“Pillar Two”) for a global minimum tax. Many countries have enacted certain aspects of the Pillar Two framework with effective dates in 2024. Entities operating in countries where Pillar Two has been enacted are required to estimate Pillar Two top-up tax obligations beginning in the first quarter of 2024.

For the six months ended June 30, 2024, the Company did not have material Pillar Two top-up tax obligations impacting the Company’s estimated annual effective tax rate. The Company will continue to evaluate the impact of proposed and enacted legislation as new guidance becomes available.

As of June 30, 2024, and December 31, 2023, the amount of unrecognized tax benefits for uncertain tax positions was $20.9 million, excluding related liabilities for interest and penalties of $0.5 million.

The Company believes it is reasonably possible that the total amount of unrecognized tax benefits will decrease within the next 12 months by approximately $2.2 million, due to the settlement of various audits and the expiration of statutes of limitation.
21
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Forward-Looking Statements
This report contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. Generally, forward-looking statements do not relate strictly to historical or current facts and may include words or phrases such as “believes,” “will,” “expects,” “anticipates,” “intends,” and words and phrases of similar impact. The forward-looking statements are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended.

Forward-looking statements in this report include, but are not limited to, statements regarding future operations, business strategy, business environment, key trends, and, in each case, statements related to expected financial and other benefits. Many of these factors will be important in determining our actual future results. Any or all of the forward-looking statements in this report may turn out to be incorrect. They may be based on inaccurate assumptions or may not account for known or unknown risks and uncertainties. Consequently, no forward-looking statement can be guaranteed. Actual future results may vary materially from those expressed or implied in any forward-looking statements, and our business, financial condition and results of operations could be materially and adversely affected. In addition, we disclaim any obligation to update any forward-looking statements after the date of this report, except as required by law.

All forward-looking statements in this report are expressly qualified by the risk factors discussed in our filings with the Securities and Exchange Commission (“SEC”). The cautionary statements in this report expressly qualify all of our forward-looking statements. Factors that could cause actual results to differ from those expressed or implied in the forward-looking statements include, but are not limited to, those discussed in our Risk Factors in Part 1, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and in Part 2, Item 1A of this Form 10-Q.

The following discussion should be read together with our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and with our financial statements and related notes contained in this Form 10-Q. Results for the three and six months ended June 30, 2024, are not necessarily indicative of results that may be attained in the future.

Global Economy and Inflation
Since 2022, the global economy has experienced high inflation, increased interest rates, and pressures on gross domestic product. While we believe our business is resilient and can generally weather unusually high levels of inflation, inflationary pressures have had some impact on our financial performance. Specifically, inflation impacted our interchange costs associated with the Biller segment.

Overview
ACI Worldwide powers digital payments for more than 6,000 organizations around the world. More than 1,000 of the largest banks and intermediaries, as well as thousands of global merchants, rely on ACI to execute $14 trillion each day in payments and securities. In addition, myriad organizations utilize our electronic bill presentment and payment services. Through our comprehensive suite of software solutions delivered on customers' premises, through the public cloud or through ACI's private cloud, we provide real-time, immediate payments capabilities and enable the industry's most complete omni-channel payments experience.

Our products are sold and supported directly and through distribution networks covering three geographic regions – the Americas; Europe, Middle East, and Africa (“EMEA”); and Asia Pacific. Each region has its own globally coordinated sales force, supplemented with local independent reseller and/or distributor networks. Our products and solutions are marketed under the ACI Worldwide brand and used globally by banks and intermediaries, merchants, and billers, such as third-party electronic payment processors, payment associations, switch interchanges, and a wide range of transaction-generating en