Q4 2020 ACI Worldwide Inc Earnings Call
Yes.
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And Mr. Kraft you may begin.
Good morning on.
I'm joined this morning by or Jill on Omega, our president and CEO and Scott Behrens our CFO.
Before we begin please take note that the forward looking statement disclaimer included on our press release issued yesterday and filed with the SEC. We will make forward looking statements on today's call forward looking statements inherently involve risks and uncertainties and reflect our view as of today and we are under no obligation to update.
In addition, the 2020 amounts discussed today are preliminary unaudited estimates based on currently available information and are subject to change as we complete our year end accounting procedures and our audited financial statements. We expect to announce our audited 2020 results in the second half from February 2021.
With that I'll turn it over to owed you on that.
Thank you John Hello, everyone and thank you for joining our call.
At our analyst day in November I shared with you my strong belief in the significant value creation potential on all of ACI.
And every day as we work to capture this potential through the execution of our clearly defined three pillar strategy my confidence continues to grow.
Today I'm pleased to provide an update on the company's performance outlook and the improvement initiatives, we announced on November.
Why are we laid all this plans only a few months ago. The foundation for the new ACI as well as a new laser focus on overall cost began earlier into 'twenty.
As Scott will discuss in a minute our focus on maximizing profitability led us to deliver significant year over year EBITDA growth and margin improvement all despite continued COVID-19 impact.
Looking to 221, we are making significant progress advancing our three pillar fit for growth focus on growth and step change value creation initiatives.
On January one till 'twenty, one we launched our fit for growth organizational plan to become a more nimble and agile company.
These changes included flattening our organizational structure to a centralized sales furthering our goal of becoming a best in class sales organization.
We have hired experienced senior management talent and in October tool 20 expanded our board of directors, we already seen the benefits. This new structure provides like faster decision, making and increase it responsiveness to our customers.
For our focus on growth initiative, we reevaluated our investment spend and then began to reallocate funds to R&D selling and marketing he more target markets, where we expect to experience. The most growth specifically, we see significant opportunity in real time payments E commerce with large sophisticated global merchants and fast growing.
Emerging markets over.
Over the past several months on into 221, we are increasing our sales and marketing investment by 25 per cent and increasing the number of sales associates by 35 per cent.
And finally under our third pillar step change value creation through M&A, we continue to evaluate opportunities for accurately for transactions as well as opportunities to divest underperforming assets.
With that I'll turn it over to Scott to discuss the financials.
Thanks, social on.
Everyone.
As outlined in our press release and based on preliminary information available at this time.
Currently expect revenue for the year ended December 31 2020.
Between 128, and one point to 95 billion.
Up slightly over 2019.
And adjusted EBITDA between $350 million to $360 million.
Up double digits over 2019.
It's always one said we've been very focused on overall costs and maximizing profitability and we were pleased with these results.
Today, we are reaffirming our long term outlook mid single digit organic revenue growth.
Gradual net adjusted EBITDA margin improvement annually.
As discussed at our November 2020 analyst day.
While we currently expect COVID-19 related headwinds to persist through the first half of 2021.
We expect growth to accelerate in the second half of the year.
We will provide you with the detailed 2021 guidance on the Companys Q for 2020 earnings call later in February.
Turning to our rule of 40 metric, which we outlined at our November analyst day and is defined as the combined total company revenue growth and net adjusted EBITDA margin.
In 2019 prior to COVID-19, and our new ACI strategic plan.
Our rule of 40 score was 19%.
As a result for the cost rationalization efforts, we made in 2020 on the revenue acceleration. We expect this year, we will achieve the rule of 40 for the first time in 2021.
We are very proud of this significant achievement.
In summary.
We're happy about our performance in 2020, and we're expecting 2021 to be an important milestone year.
I will now hand, it back over to Ozal on for some closing comments.
So on.
Thanks Scott.
While it is too early until 'twenty. One we are confident that our strategy is already making headway and we remain confident that we are well positioned to excel with our new organizational model above all we know that we have the right team in place to continue to accelerate revenue growth and deliver transformational long term value to our.
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As you know we are in a quiet period, and we will not be taking questions. Today, we look for it to speak with you again next month, when we announce our final Q4 and full year true 'twenty results.
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This concludes today's conference you may now disconnect.
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