Annual Report






Valued Shareholders

Dear Fellow Shareholders,

I am pleased to present the Annual Report for ACI Worldwide. I am extremely proud of what we have accomplished during my first year as the company's CEO. We reached our financial targets and delivered on our commitments to the investors, customers, business partners, employees, and communities we serve. ACI is leading the global real-time payments revolution and positioning its customers for successful financial services and payments modernization.

In 2023, we delivered 10% EBITDA growth, and we expect revenue growth to accelerate to 7-9% in 2024.

In the Banking segment, we saw global growth in our real-time payments and payments intelligence solutions, including the introduction of ACI's digital central infrastructure solution that enables banks and financial institutions to capitalize on real- time payments growth. Recurring revenue from Banking also continued to accelerate throughout the year. In our Biller segment, new customer onboarding and progress with our interchange management program generated notable profitability.

We signed several important real-time payment contracts during the year, including partnerships with Colombia's central bank, Banco de la República de Colombia, which chose ACI's state-of-the-art payments technology to drive real-time transformation of the country's payments ecosystem.

ACI now supports more than 26 domestic and pan-regionalreal-time payment schemes and

11 central infrastructures across six continents.

ACI was a key partner in the launch of the U.S. FedNow® Service, being one of the first service providers to facilitate and protect real-time payment transactions for financial institutions, as well as supporting connectivity to The Clearing House's Real-Time Payments network.

Innovation remains at the core of ACI's identity, and 2023 was no exception. We continued to invest in differentiation technology, such as ACI's award-winning,AI-based payments intelligence services, digital identity, and fraud prevention solutions to enhance our proven technology offerings.

The bar for payments modernization is being raised every day, and ACI's cutting-edge cloud strategy aims to responsibly guide financial institutions and payment providers on their journey to the cloud and the ongoing shift to cloud-native applications.

I am very pleased with where we are as a company. Our balance sheet is healthy, with a leverage ratio below our target. We are accelerating our top line, as long promised, and we are managing our expenses well. We have the right team and strategy in place and are well-positioned to achieve the results we have promised.

In 2025, ACI will celebrate 50 years of providing the largest-scale, proven payment software solutions to the world.

Together, we will continue to shape the future of digital payments, set new standards in intelligent payments orchestration, and transform the industry.

Thank you for your continued support.

Thomas W. Warsop, III

President and CEO

The digital payments landscape is dynamic, and ACI Worldwide is poised to capitalize on emerging opportunities and challenges. We remain committed to driving innovation, expanding our global footprint, and delivering shareholder value.

Notable Awards

  • Juniper Research Future Digital Awards

  • 2023 - Instant Payment Innovation Platinum Award - ACI® Instant Pay™
  • Juniper Research Future Digital Awards

  • 2023 - Payment Innovation of the Year - ACI Payments Orchestration Platform™
  • CFO Tech Outlook - Top Financial Fraud Detection Solution Providers - ACI Fraud Management™
  • Merchant Payments Ecosystem Awards 2023
    • Best Payments Orchestration Platform - ACI Payments Orchestration Platform
  • Paytech Awards U.S. - Best Consumer Payments Solution - ACI Payments Orchestration Platform
  • Global Payments Innovation Awards 2023
    • Highly Acclaimed: Best Payments-Led Financial Inclusion Initiative by a Vendor - Digital Central Infrastructure
  • Fintech Finance - Best Real-Time Payments
    • ACI Low Value Real-Time Payments™
  • Fintech Finance - Cross-Border Payments - ACI Low Value Real-Time Payments
  • Fintech Finance - Artificial Intelligence - ACI Fraud Management
  • Retail Tech Innovation Hub - Payments Innovation of the Year - ACI Fraud Management
  • Retail Systems - Omnichannel Solution of the Year - ACI Payments Orchestration Platform
  • Retail Systems - Alternative Payments Solution - ACI Wallet Hub™
  • Retail Systems - Payments System of the Year - ACI Payments Orchestration Platform
  • Retail Systems - Payments Innovation Award
    • ACI Instant Pay
  • Fintech B2B Marketing - Best Use of Innovation Technology Platform - ACI Worldwide
  • Limerick Chamber Regional Business Awards
    • Best Business Innovation Excellence Award
  • AI Awards - Best Application of AI in Large Enterprise
  • National Technology Award - Security Innovation of the Year - ACI Fraud Management
  • National Technology Award - Retail Tech of the Year - ACI Payments Orchestration Platform
  • Payments Award - Best Marketing Campaign of the Year
  • Pay 360 Awards - Best Lending Initiative - ACI Pay After™



Washington, D.C. 20549



For the fiscal year ended December 31, 2023



For the transition period from to

Commission File Number 0-25346


(Exact name of registrant as specified in its charter)



(State or other jurisdiction of

(I.R.S. Employer

incorporation or organization)

Identification No.)

6060 Coventry Drive Elkhorn, Nebraska


(Address of principal executive offices)

(Zip code)

(402) 390-7600

(Registrant's telephone number, including area code)

Securities 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 value


Nasdaq Global Select Market

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes ' No È

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes ' No È

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 È No '

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes È 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 the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Act. (Check one):

Large accelerated filer Non-accelerated filer Emerging growth company


Accelerated filer



Smaller reporting 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 has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. È

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. '

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b).' Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ' No È

The aggregate market value of the Company's voting common stock held by non-affiliates on June 30, 2023 (the last business day of the registrant's most recently completed second fiscal quarter), based upon the last sale price of the common stock on that date of $23.17 was $1,932,768,415. For purposes of this calculation, executive officers, directors, and holders of 10% or more of the outstanding shares of the registrant's common stock are deemed to be affiliates of the registrant and are excluded from the calculation.

As of February 27, 2024, there were 106,412,716 shares of the registrant's common stock outstanding.

Documents Incorporated by Reference - Portions of the registrant's definitive Proxy Statement for the Annual Meeting of Shareholders to be held on or about June 4, 2024, are incorporated by reference in Part III of this report. This registrant's Proxy Statement will be filed with the Securities and Exchange Commission pursuant to Regulation 14A.




Item 1.



Item 1A.

Risk Factors


Item 1B.

Unresolved Staff Comments


Item 1C.



Item 2.



Item 3.

Legal Proceedings


Item 4.

Mine Safety Disclosures



Item 5.

Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity



Item 6.



Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations


Item 7A.

Quantitative and Qualitative Disclosures About Market Risk


Item 8.

Financial Statements and Supplementary Data


Item 9.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure


Item 9A.

Controls and Procedures


Item 9B.

Other Information



Item 10. Directors, Executive Officers, and Corporate Governance


Item 11.

Executive Compensation


Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters


Item 13.

Certain Relationships and Related Transactions, and Director Independence


Item 14.

Principal Accounting Fees and Services



Item 15. Exhibits, Financial Statement Schedules




Forward-Looking Statements

For purposes of this Annual Report on Form 10-K, the terms "ACI," "ACI Worldwide," the "Company," "we," "us," and "our" refer to ACI Worldwide, Inc. and its consolidated subsidiaries. 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 I, Item 1A of this Form 10-K.

Trademarks and Service Marks

ACI, ACI Worldwide, ACI Payments, Inc., ACI Pay, Speedpay, and all ACI product/solution names are trademarks or registered trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in the United States, other countries or both. Other parties' trademarks referenced are the property of their respective owners.

Global Economy and Inflation

Since 2022 and during the year ended December 31, 2023, 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 2023 financial performance. Specifically, inflation had impacted our interchange costs associated with the Biller segment.





ACI develops, markets, installs, and supports a broad line of software products and solutions primarily focused on facilitating real-time digital payments. ACI's enterprise payments capabilities target any channel, any network, and any payment type and our solutions empower customers to regain control, choice, and flexibility in today's complex payments environment, get to market more quickly, and reduce operational costs.

ACI's solutions and services are used globally by banks, intermediaries, merchants, and billers, such as third-party digital payment processors, payment associations, switch interchanges, and a wide range of transaction-generating endpoints, including automated teller machines ("ATM"), merchant point-of-sale ("POS") terminals, bank branches, mobile phones, tablets, corporations, and internet commerce sites. The authentication, authorization, switching, settlement, fraud-checking, and reconciliation of digital payments is a complex activity due to the large number of locations and variety of sources from which transactions can be generated, the large number of participants in the market, high transaction volumes, geographically dispersed networks, differing types of authorization, and varied reporting requirements. These activities are typically performed online and are conducted 24 hours a day, seven days a week.

ACI combines a global perspective with local presence to tailor digital payment solutions for our customers. We believe that we have one of the most diverse and robust digital payment solution portfolios in the industry with application software spanning the entire payments value chain. We also believe that our financial performance has been attributable to our ability to design and deliver quality products and solutions coupled with our ability to identify and successfully complete and integrate strategic acquisitions.

ACI is a Delaware corporation incorporated in November 1993 under the name ACI Holding, Inc. We are largely the successor to Applied Communications, Inc. and Applied Communications Inc. Limited, acquired from Tandem Computers Incorporated on December 31, 1993. On July 24, 2007, we changed our corporate name from "Transaction Systems Architects, Inc." to "ACI Worldwide, Inc." We have been marketing our products and services under the ACI Worldwide brand since 1993 and have gained significant market recognition under this brand name.

Fiscal 2022 Divestiture

Corporate Online Banking Solutions

On September 1, 2022, we sold our corporate online banking solutions related assets and liabilities to One Equity Partners for $100.0 million, and a net working capital adjustment. The sale included employees and customer contracts as well as technology assets and intellectual property.

Target Markets

ACI's comprehensive digital payment solutions serve three key markets:


ACI provides payment solutions to large and mid-size banks globally for both retail banking, digital, and other payment services. Our 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, we enable banks to meet the requirements of different real-time payment schemes and to quickly create differentiated products to meet consumer, business, and merchant demands.

ACI's payment solutions support intermediaries, such as processors, networks, payment service providers ("PSPs"), and new financial technology ("fintech") entrants. We offer these customers scalable solutions that strategically position them to innovate and achieve growth and cost efficiency, while protecting them against fraud. Our solutions also allow new entrants in the digital marketplace to access innovative payment schemes, such as the U.S. FedNow and RTP from The Clearing House, the U.K. Faster Payments New Access Model, Singapore FAST, India Unified Payments Interface ("UPI"), the Payments Network Malaysia ("PayNet"), Real-time Retail Payments Platform ("RPP"), and others.



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ACI Worldwide Inc. published this content on 22 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 April 2024 12:21:06 UTC.