XML 34 R19.htm IDEA: XBRL DOCUMENT v3.24.0.1
Segment Information
 12 Months Ended
Dec. 31, 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 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):
Years Ended December 31,
202320222021
Revenues
Banks$616,051 $638,585 $625,125 
Merchants150,616 153,905 152,988 
Billers685,912 629,411 592,485 
Total revenue
$1,452,579 $1,421,901 $1,370,598 
Segment Adjusted EBITDA
Banks$355,489 $371,017 $372,949 
Merchants44,345 49,029 54,266 
Billers142,343 107,371 129,048 
Depreciation and amortization
(122,373)(127,328)(133,393)
Stock-based compensation expense
(24,547)(29,753)(27,242)
Corporate and unallocated expenses
(174,849)(166,501)(185,731)
Interest, net
(64,271)(40,646)(33,538)
Other, net
(8,510)43,446 (1,294)
Income before income taxes$147,627 $206,635 $175,065 

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):
Year Ended December 31, 2023
BanksMerchantsBillersTotal
Primary Solution Categories
Bill Payments$— $— $685,912 $685,912 
Digital Business Banking2,792 — — 2,792 
Merchant Payments— 150,616 — 150,616 
Fraud Management63,503 — — 63,503 
Real-Time Payments128,957 — — 128,957 
Issuing and Acquiring420,799 — — 420,799 
Total$616,051 $150,616 $685,912 $1,452,579 
Year Ended December 31, 2022
BanksMerchantsBillersTotal
Primary Solution Categories
Bill Payments$— $— $629,411 $629,411 
Digital Business Banking35,504 — — 35,504 
Merchant Payments— 153,905 — 153,905 
Fraud Management47,421 — — 47,421 
Real-Time Payments104,777 — — 104,777 
Issuing and Acquiring450,883 — — 450,883 
Total$638,585 $153,905 $629,411 $1,421,901 
Year Ended December 31, 2021
BanksMerchantsBillersTotal
Primary Solution Categories
Bill Payments$— $— $592,485 $592,485 
Digital Business Banking60,398 — — 60,398 
Merchant Payments— 152,988 — 152,988 
Fraud Management43,704 — — 43,704 
Real-Time Payments77,922 — — 77,922 
Issuing and Acquiring443,101 — — 443,101 
Total$625,125 $152,988 $592,485 $1,370,598 
As discussed in Note 3, Divestiture, in 2022 the Company divested its corporate online banking solution assets, which were included in the Digital Business Banking solution category.
The following is revenue by the Company's reportable segments for the periods indicated (in thousands):
Year Ended December 31,
202320222021
Banks
Software as a service and platform as a service$39,803 $48,932 $57,339 
License311,549 336,028 310,758 
Maintenance189,650 184,017 193,332 
Services75,049 69,608 63,696 
Total$616,051 $638,585 $625,125 
Merchants
Software as a service and platform as a service$123,528 $124,631 $124,933 
License9,675 12,106 9,015 
Maintenance15,322 15,934 16,846 
Services2,091 1,234 2,194 
Total$150,616 $153,905 $152,988 
Billers
Software as a service and platform as a service$685,816 $629,317 $592,070 
License— — 94 
Maintenance96 94 321 
Services— — — 
Total$685,912 $629,411 $592,485 

The following is the Company's revenue by geographic location for the periods indicated (in thousands):
Year Ended December 31,
202320222021
Revenue
United States$887,168 $851,712 $869,081 
Other565,411 570,189 501,517 
Total$1,452,579 $1,421,901 $1,370,598 

The following is the Company’s long-lived assets by geographic location for the periods indicated (in thousands):
December 31,
20232022
Long-lived Assets
United States$1,216,158 $1,286,505 
Other763,437 754,847 
Total$1,979,595 $2,041,352 

No single customer accounted for more than 10% of the Company’s consolidated revenues during the years ended December 31, 2023, 2022, and 2021. No other country outside the United States accounted for more than 10% of the Company’s consolidated revenues during the years ended December 31, 2023, 2022, and 2021.