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2020 ACI Worldwide Annual Report

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2020 ACI Worldwide Annual Report 2020 Annual Report 2020 Financial Highlights ACI Worldwide is a global software company that provides mission-critical real-time payment solutions to corporations. Customers use our proven, scalable and secure solutions to process and manage digital payments, enable omni-commerce payments, present and process bill payments, and manage fraud and risk. We combine our global footprint with local presence to drive the real-time digital transformation of payments and commerce. Our Mission To accelerate global commerce through real-time payments Our Vision To be a global leader in real-time payments Our Purpose To create global prosperity through real-time payments Valued Shareholders I am exceptionally proud of what our team achieved in improve local execution. We launched our Fit for Growth 2020 — a year like no other in our company’s 45+ years operating model in January 2021 and have already seen of driving digital payments. improved productivity and efficiency. We have also generated significant cost savings to reinvest into the Weeks after I joined ACI in March 2020, we pivoted business, including to fund expanded sales capacity. in response to the emerging pandemic. This included transitioning our nearly 4,000 employees and contractors Focused on Growth to work from home, focusing in on operational discipline The second pillar of our strategy is Focused on Growth. to strengthen profitability in an uncertain macro- To drive increased organic growth, we committed to a environment and evolving our solutions as global greater focus on high-growth market opportunities. For acceptance of digital payment systems accelerated. ACI, these opportunities include real-time payments, Against this backdrop, we also began taking initial steps global merchants and emerging markets — areas that will toward a significant business transformation using all yield double-digit growth in the years ahead. We are a three-pillar strategy to position ACI for continuous already well positioned to take advantage of increasing profitable growth and value creation in the years ahead. real-time payment volumes, particularly those volumes The ACI of early 2020 was a real-time payments leader moving through global banks and central infrastructures. in a large, dynamic and growing market with blue chip In the merchant space, sophisticated global merchants customers, mission-critical products, an R&D center are our center of attention. We have the solutions to help of excellence and a successful track record of value them capitalize on the rapid digital transformation of creation through M&A. Alongside these strengths, we commerce. Emerging markets are growing at two times acknowledged the need to accelerate organic growth, the rate of mature markets, so we are strengthening how improve our go-to-market execution, increase our we go to market in Africa, Asia, Latin America and the predictability, and simplify our story and operating model. Middle East. Through this heightened focus on high- Today our strengths remain key to our success, and we growth opportunities, we are positioning ACI for solid have made significant progress addressing our areas of organic revenue acceleration in 2021. improvement through our three-pillar strategy. Step-Change Value Creation Fit for Growth The third pillar of our strategy is Step-Change Value The first pillar of our strategy is Fit for Growth. We Creation. We will continue ACI’s legacy of successful developed a more efficient, nimble and agile functional inorganic growth by identifying accretive investments operating model to unleash ACI’s growth potential. and divestitures to drive significant value creation. We This model results in a flat, lean organization with fewer seek software-led payment assets with actionable, layers. It empowers ACIers by clarifying accountabilities realistic synergies that will bolster organic revenue and giving them broader responsibilities, and it brings growth and/or enhance scale. Our areas of focus include our senior leaders closer to our customers so they can bill payments, cloud capabilities, and value-added make faster, better-informed decisions. Our functional services in real-time, acquiring and omni-commerce. operating model also strengthens how we go to market We are committed to valuation discipline and strive through a new, centralized commercial function with for superior execution as required to unlock true step- sales teams organized by geography and segment to change value creation from our M&A activities. A Simpler Story To support our three-pillar strategy, we also addressed ACI’s positioning in the market with three goals in mind: simplify our story, differentiate from competitors 2020 and modernize our brand. This work has introduced “Worldwide” to our logo for the first time, put the spotlight Financial on our bold, blue corporate color, made customer needs the focus of our story and simplified our message to help Highlights all stakeholders more easily understand what we do. Our new message is built around real-time payments. ACI is the number one brand in terms of awareness and preference in real-time, and real-time is important to $1.29B customers across all our segments. Today, if you ask us Total Revenue who ACI is, we will say, “ACI Worldwide is a global software company that delivers mission-critical real-time payment solutions to corporations.” It is a simple and powerful +3% statement that carves out our place in the evolving digital vs. 2019 payments landscape. Looking Ahead In a business environment transformed by the pandemic, $359M ACI delivered strong financial results in 2020, generating Adjusted EBITDA $1.29 billion in revenue, $359 million in adjusted EBITDA and $336 million of cash flows from operations. We also expect to achieve our Rule of 40 metric for the first time +17% ever in 2021. These results and the continued execution vs. 2019 of our three-pillar strategy position us well for continuous profitable growth and value creation in the years ahead. We are Fit for Growth, Focused on Growth and ready for Step-Change Value Creation, and I am confident 2021 $336M will be a milestone year for ACI. Cash Flows I am also aware that stakeholder relationships are key to a from Operations successful business, and I want to thank our customers, suppliers, employees and shareholders for their support of ACI throughout 2020 and into the future. ACI is proud +144% to be the payments provider of choice for the world’s vs. 2019 leading banks, merchants and billers, and our entire team looks forward to continuing to deliver the mission-critical real-time payment solutions our customers and the world depend on to accelerate global commerce. $737M Thank you for being part of our growth story. New Bookings +36% vs. 2019 Odilon Almeida President and Chief Executive Officer Notable Awards Frost & Sullivan Innovation Excellence Award for ACI® Fraud ManagementTM Global Banking & Finance Awards Best Information Security and Fraud Management Technology Provider North America 2020 2020 Asia-Pacific Stevie Awards Gold Stevie Award for Innovation in Technology Development Aite Group AIM Evaluation: The Leading Providers of U.S. Cash Management Technology, 2020 ACI Digital Business BankingTM receives “Best-in-Class” status FStech Awards Best Use of IT in Retail Banking & Insurance IDC MarketScape Worldwide Integrated Payment Platforms 2019-2020 Vendor Assessment names ACI a Leader IDC Financial Insights 2020 FinTech Rankings ACI named among top 20 largest providers of financial technology UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K È ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 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) Delaware 47-0772104 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 3520 Kraft Rd, Suite 300 Naples, Florida 34105 (Address of principal executive offices) (Zip code) (239) 403-4660 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.005 par value ACIW 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 È 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.
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