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Segment Information
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segment Information 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 the 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.

The following is selected financial data for the Company’s reportable segments for the periods indicated (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2023202220232022
Revenue
Banks$155,684 $117,439 $361,231 $391,583 
Merchants36,267 35,609 107,556 113,145 
Billers171,064 153,543 507,229 465,368 
Total revenue$363,015 $306,591 $976,016 $970,096 
Segment Adjusted EBITDA
Banks$91,010 $49,793 $167,313 $184,667 
Merchants10,296 9,781 26,751 32,243 
Billers39,186 26,348 100,056 81,029 
Depreciation and amortization(30,463)(32,140)(93,438)(95,869)
Stock-based compensation expense(6,822)(7,126)(17,537)(21,884)
Corporate and unallocated expenses(41,283)(43,167)(135,053)(124,574)
Interest, net(16,345)(11,341)(48,183)(27,809)
Other, net1,084 41,545 (6,403)45,801 
Income (loss) before income taxes$46,663 $33,693 $(6,494)$73,604 

Assets are not allocated to segments, and the Company’s CODM does not evaluate operating segments using discrete asset information.
The following is revenue by primary solution category for the Company’s reportable segments for the periods indicated (in thousands):
Three Months Ended September 30, 2023
BanksMerchantsBillersTotal
Primary Solution Categories
Bill Payments$— $— $171,064 $171,064 
Digital Business Banking702 — — 702 
Merchant Payments— 36,267 — 36,267 
Fraud Management16,543 — — 16,543 
Real-Time Payments26,374 — — 26,374 
Issuing and Acquiring112,065 — — 112,065 
Total$155,684 $36,267 $171,064 $363,015 
Three Months Ended September 30, 2022
BanksMerchantsBillersTotal
Primary Solution Categories
Bill Payments$— $— $153,543 $153,543 
Digital Business Banking9,001 — — 9,001 
Merchant Payments— 35,609 — 35,609 
Fraud Management14,840 — — 14,840 
Real-Time Payments24,904 — — 24,904 
Issuing and Acquiring68,694 — — 68,694 
Total$117,439 $35,609 $153,543 $306,591 
Nine Months Ended September 30, 2023
BanksMerchantsBillersTotal
Primary Solution Categories
Bill Payments$— $— $507,229 $507,229 
Digital Business Banking2,293 — — 2,293 
Merchant Payments— 107,556 — 107,556 
Fraud Management38,051 — — 38,051 
Real-Time Payments72,271 — — 72,271 
Issuing and Acquiring248,616 — — 248,616 
Total$361,231 $107,556 $507,229 $976,016 
Nine Months Ended September 30, 2022
BanksMerchantsBillersTotal
Primary Solution Categories
Bill Payments$— $— $465,368 $465,368 
Digital Business Banking34,586 — — 34,586 
Merchant Payments— 113,145 — 113,145 
Fraud Management30,169 — — 30,169 
Real-Time Payments71,043 — — 71,043 
Issuing and Acquiring255,785 — — 255,785 
Total$391,583 $113,145 $465,368 $970,096 

As discussed in Note 3, Divestiture, the Company divested its corporate online banking solution assets, which were included in
the Digital Business Banking solution category.
Three Months Ended
September 30,		Nine Months Ended
September 30,
2023202220232022
Banks
Software as a service and platform as a service$10,167 $12,394 $29,158 $40,331 
License77,779 42,188 136,980 159,569 
Maintenance48,084 44,896 142,050 138,983 
Services19,654 17,961 53,043 52,700 
Total$155,684 $117,439 $361,231 $391,583 
Merchants
Software as a service and platform as a service$30,162 $29,626 $89,660 $91,451 
License1,900 1,473 5,701 8,691 
Maintenance3,834 4,244 11,314 12,090 
Services371 266 881 913 
Total$36,267 $35,609 $107,556 $113,145 
Billers
Software as a service and platform as a service$171,040 $153,520 $507,157 $465,298 
License— — — — 
Maintenance24 23 72 70 
Services— — — — 
Total$171,064 $153,543 $507,229 $465,368 

The following is the Company's revenue by geographic location for the periods indicated (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2023202220232022
Revenue
United States$226,911 $195,571 $633,379 $604,345 
Other136,104 111,020 342,637 365,751 
Total$363,015 $306,591 $976,016 $970,096 

The following is the Company’s long-lived assets by geographic location for the periods indicated (in thousands):
September 30, 2023December 31, 2022
Long-lived Assets
United States$1,218,402 $1,286,505 
Other734,268 754,847 
Total$1,952,670 $2,041,352 

No single customer accounted for more than 10% of the Company’s consolidated revenues during the three and nine months ended September 30, 2023 and 2022. No other country outside the United States accounted for more than 10% of the Company's consolidated revenues during the nine months ended September 30, 2023 and 2022.