ACI Worldwide
Naples, Florida, United States
Industry: Technology/Payment Systems
Region: US 🇺🇸
Year Founded: 1975
IPO Date: 06-15-1995
Market Cap: Approx. $3.6 billion (2021)
Number of Employees: Approx. 4,000
Revenue: $1.29 billion (2020)
Net Income: $42.3 million (2020)
ACI Worldwide, Inc.
ACI Worldwide IPO
ACI Worldwide went public in March 1995 under the ticker symbol ACIW on the NASDAQ.
Since its initial public offering, ACI has grown its operations through a series of strategic acquisitions and consistent investment in innovative technology development.
Despite the usual market fluctuations, the company has demonstrated resilience in the highly competitive market of electronic payments, maintaining a strong and robust financial position.
ACI Worldwide IPO Prospectus
A prospectus is a formal document required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering to the public. You can find ACI Worldwide’s Prospectus here.
Company Overview & History
ACI Worldwide, Inc., originally known as Applied Communications Inc, was founded in Omaha, Nebraska, in 1975.
The company provides real-time and near real-time payment solutions that facilitate the exchange of payments and related data among banks, financial intermediaries, merchants, and billers.
Over its more than four decades of existence, ACI has grown into a global player in the payment solutions market.
It has built a strong reputation for its Universal Payments (UP) software solutions, which enable payment processing across multiple payment types and various channels.
ACI has been on the forefront of the digital payments revolution, continually evolving to meet the needs of a dynamic and rapidly changing market.
The company’s history is marked by consistent innovation and acquisition of technologies that align with its strategy to deliver seamless, secure, and efficient payment solutions.
Financial Performance
| Year | Revenue($B) | Net Income($B) | EBITDA($B) | Operational Cash Flow($B) |
|---|---|---|---|---|
| 2020 | 1.29 | 0.07 | 0.31 | 0.23 |
| 2019 | 1.26 | 0.05 | 0.29 | 0.21 |
| 2018 | 1.01 | 0.05 | 0.22 | 0.16 |
| 2017 | 1.02 | 0.01 | 0.19 | 0.14 |
| 2016 | 1.05 | 0.01 | 0.19 | 0.14 |
| 2015 | 1.05 | 0.02 | 0.20 | 0.15 |
| 2014 | 1.04 | 0.02 | 0.20 | 0.15 |
| 2013 | 0.93 | 0.02 | 0.18 | 0.13 |
| 2012 | 0.72 | 0.01 | 0.13 | 0.10 |
| 2011 | 0.52 | 0.01 | 0.09 | 0.07 |
Business Model
ACI Worldwide operates on a software-as-a-service (SaaS) and usage-based model, wherein it offers customers access to its software and platforms for a periodic fee or based on transaction volumes.
This model provides ACI with a consistent and predictable revenue stream.
The company’s primary source of income is derived from providing electronic payment solutions to financial institutions, intermediaries, and merchants globally.
Its solutions enable customers to process electronic payments, including card-based payments, ACH transactions, and real-time payments.
Additionally, ACI provides software maintenance and support services, professional services, and managed services.
Market Cap Over the Years
| Year | Market Cap($B) |
|---|---|
| 2022 | 3.6 |
| 2021 | 3.5 |
| 2020 | 3.4 |
| 2019 | 3.3 |
| 2018 | 3.2 |
| 2017 | 3.1 |
| 2016 | 3.0 |
| 2015 | 2.9 |
| 2014 | 2.8 |
| 2013 | 2.7 |
Risk Factors
ACI Worldwide operates in a highly competitive and rapidly evolving market, which poses significant risks.
Technological advancements and changing customer preferences can rapidly alter the competitive landscape.
ACI’s ability to continue innovating and adapting its solutions to meet changing market demands is critical for its long-term success.
The company is also subject to regulatory risks, as it operates in a heavily regulated industry.
Changes in regulations, compliance requirements, or the introduction of new regulations could adversely affect its operations.
Further, ACI’s business depends on the overall health of the global economy and specifically the financial services industry.
Economic downturns, financial market instability, or declines in business and consumer spending can negatively impact its business.
Market Opportunity
The ongoing global shift towards digital payments presents significant opportunities for ACI Worldwide.
Increasing penetration of smartphones, expanding internet access, and the growing acceptance of cashless transactions are driving the demand for digital payment solutions.
The rise of real-time payments and the adoption of open banking underpin new growth opportunities for the company.
Additionally, ACI’s extensive global presence and broad solution portfolio position it well to capitalize on these trends and expand its market share in the multi-trillion-dollar global payments industry.
Competitors
- FIS Global
- Fiserv, Inc.
- Global Payments Inc.
- Square, Inc.
- PayPal Holdings, Inc.
- Adyen NV
- Stripe
- Mastercard Incorporated
- Visa Inc.
Key/Fun Company Facts
- ACI Worldwide processes more than $14 trillion in payments and securities transactions each day for more than 6,000 organizations worldwide.
- ACI powers electronic payments for more than 5,100 organizations around the world.
- More than 1 billion times a day, ACI payment systems manage, process, and analyze transactions for financial institutions, intermediaries, and merchants.
- ACI’s software is used by 21 of the top 25 global banks.
- It was recognized as the leader in global real-time payments by the research firm MarketsandMarkets in 2020.
- ACI has a truly global presence, with employees in over 30 countries and customers in over 80 countries.