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Segment Information
 3 Months Ended
Mar. 31, 2024
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):
Three Months Ended March 31,
20242023
Revenue
Banks$105,429 $88,040 
Merchants35,728 34,781 
Billers174,862 166,855 
Total revenue$316,019 $289,676 
Segment Adjusted EBITDA
Banks$41,638 $24,681 
Merchants10,651 6,544 
Billers30,737 29,641 
Depreciation and amortization(27,609)(31,539)
Stock-based compensation expense(8,099)(5,301)
Corporate and unallocated expenses(37,758)(48,378)
Interest, net(15,001)(15,387)
Other, net(2,025)(3,395)
Loss before income taxes
$(7,466)$(43,134)

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 March 31, 2024
BanksMerchantsBillersTotal
Primary Solution Categories
Bill Payments$— $— $174,862 $174,862 
Merchant Payments— 35,728 — 35,728 
Fraud Management11,507 — — 11,507 
Real-Time Payments24,748 — — 24,748 
Issuing and Acquiring69,174 — — 69,174 
Total$105,429 $35,728 $174,862 $316,019 
Three Months Ended March 31, 2023
BanksMerchantsBillersTotal
Primary Solution Categories
Bill Payments$— $— $166,855 $166,855 
Merchant Payments— 34,781 — 34,781 
Fraud Management9,355 — — 9,355 
Real-Time Payments19,398 — — 19,398 
Issuing and Acquiring59,287 — — 59,287 
Total$88,040 $34,781 $166,855 $289,676 

Three Months Ended March 31,
20242023
Banks
Software as a service and platform as a service$10,518 $9,249 
License28,533 16,316 
Maintenance44,326 46,342 
Services22,052 16,133 
Total$105,429 $88,040 
Merchants
Software as a service and platform as a service$30,352 $28,850 
License1,440 2,015 
Maintenance3,428 3,737 
Services508 179 
Total$35,728 $34,781 
Billers
Software as a service and platform as a service$174,862 $166,831 
License— — 
Maintenance— 24 
Services— — 
Total$174,862 $166,855 
The following is the Company's revenue by geographic location for the periods indicated (in thousands):
Three Months Ended March 31,
20242023
Revenue
United States$228,107 $201,269 
Other87,912 88,407 
Total$316,019 $289,676 

The following is the Company’s long-lived assets by geographic location for the periods indicated (in thousands):
March 31, 2024December 31, 2023
Long-lived Assets
United States$1,209,207 $1,216,158 
Other736,375 763,437 
Total$1,945,582 $1,979,595 

No single customer accounted for more than 10% of the Company’s consolidated revenues during the three months ended March 31, 2024 and 2023. No other country outside the United States accounted for more than 10% of the Company's consolidated revenues during the three months ended March 31, 2024 and 2023.