Q3 2024 ACI Worldwide Inc Earnings Call
Third quarter 'twenty 'twenty four financial results all lines have been placed on mute to prevent any background noise.
After the Speakers' remarks, there will be a question and answer session. If you would like to ask a question. During this time simply press the star followed by the number one on your telephone keypad. If you would like to withdraw your question Press Star one again, thank you.
Speaker Change: I would now like to turn the call over to John Kraft.
John Kraft: Please go ahead.
John Kraft: Thank you.
John Kraft: And good morning, everyone.
John Kraft: On today's call, we will discuss the company's third quarter 2024 results and financial outlook for the rest of the year.
John Kraft: We will take your questions at the end.
John Kraft: The slides accompanying this call and webcast can be found in ACI worldwide Dot com under the Investor Relations tab and will remain available after the call.
John Kraft: Today's call is subject to both safe Harbor and forward looking statements like all of our events.
John Kraft: Can find the full text of both statements in our presentation deck and earnings release, both of which are available on our website and with the SEC.
John Kraft: On this morning's call is Tom Warsaw, our president and CEO and Scott Behrens our CFO.
Tom Warsaw: With that I'll turn the call over to Tom.
Tom Warsaw: Thanks, John and good morning, everyone I.
Tom: I appreciate you joining our third quarter 2024 earnings conference call.
John Kraft: Going to start this morning, with some comments on the quarter and then I'm going to hand, it over to Scott to discuss detailed financial results and our increased expectations for the remainder of 2024.
John Kraft: Then we'll open the line for questions.
John Kraft: Q3 results were ahead of expectations and of the guidance, we provided with total revenue up 24% year over year.
John Kraft: As we've discussed on recent calls we are making a conscious effort to accelerate the signing of contracts, both renewal and new and bring those in earlier in the year.
John Kraft: As you know revenue from our renewal contract cannot be recognized earlier than the renewal date.
John Kraft: But getting those renewals out of the way allows us to focus on new customer wins.
John Kraft: And net new contracts are recognized as they are signed.
John Kraft: I had very high expectations of the team with respect to this initiative.
John Kraft: And they have significantly exceeded those expectations.
John Kraft: And that continues to allow us to outperform our guidance.
John Kraft: Further finding these new contracts earlier in the year of reduced the heavy seasonality, we've historically seen and it simply de risks attaining our full year financial guidance.
On today's call, we will discuss the company's third quarter 2024 results and financial outlook for the rest of the year if.
John Kraft: I'm pleased to let you know we have more than 99% of our full year 2024 revenue forecast either already signed and contracted.
We will take your questions at the end of this.
Slides accompanying this call and webcast can be found in ACI worldwide Dot com under the Investor Relations tab and will remain available after the call.
John Kraft: Or covered by a fourth quarter renewal that is well into the final approval process from the customer side.
John Kraft: Our pipeline momentum is notably higher than we've typically recorded by November and that allows us to raise our outlook for 2020 for it yet.
Today's call is subject to both safe Harbor and forward looking statements like all of our events.
You can find the full text of both statements in our presentation deck and earnings release, both of which are available on our website and with the SEC.
John Kraft: And probably most important to me that allows us to turn our attention to 2025 and beyond.
John Kraft: Speaking of 2025, the large sales pipeline and momentum we have as we exit the year sets us up well for continued strength in revenue and EBITDA growth as we go into 2025, even consider the significant outperformance this year.
On this morning's call is Tom Warsaw, our president and CEO.
Scott Behrens our CFO.
Speaker Change: With that I'll turn the call over to Tom.
Tom Warsaw: Thanks, John and good morning, everyone.
I appreciate you joining our third quarter 2024 earnings conference call.
John Kraft: We'll provide further guidance details regarding 2025, when we host our fourth quarter 2024 call in February.
Going to start this morning, with some comments on the quarter and then I'll hand, it over to Scott to discuss detailed financial results and our increased expectations for the remainder of 2024.
John Kraft: But I did want to make sure you heard our preliminary view.
John Kraft: Let me give you a little more color on each segment.
Then we'll open the line for questions.
John Kraft: And the bank segment revenue was up 43% and EBITDA was up 16, 9% compared to Q3 last year.
Speaker Change: Q3 results were ahead of expectations and the guidance, we provided with total revenue up 24% year over year.
John Kraft: We saw strength in real time payments with revenue growth of 72%.
As we've discussed on recent calls we are making a conscious effort to accelerate the signing of contracts, both renewal and new bringing those in earlier in the year.
John Kraft: Our real time product revenues can be lumpy, we're clearly seeing good momentum in this space, including another central infrastructure win in Mexico, and some industry leading offerings in South Africa.
As you know revenue from our renewal contract cannot be recognized earlier than the renewal date.
John Kraft: Our real time solutions are a great business for ACI and they're also a win for the world.
Speaker Change: But getting those renewals out of the way allows us to focus on new customer wins.
John Kraft: Hopefully you saw our recent press release, highlighting how real time payment adoption is expected to boost global economic growth by speeding the movement of money and increasing financial inclusion, helping millions emerge from poverty via access to lower cost financial services.
Net new contracts are recognized as they are soft.
Speaker Change: I had very high expectations of the team with respect to this initiative.
And they have significantly exceeded those expectations.
Speaker Change: That continues to allow us to outperform our guidance.
Further finding these new contracts earlier in the year helps reduce the heavy seasonality, we've historically seen and it simply de risks attaining our full year financial guidance.
John Kraft: I really encourage you to take take a look at that press release in the report that we referred to in it.
John Kraft: Powerful data in that report.
John Kraft: It's certainly generating lots of attention was in Beijing, a few weeks ago attending some of us and that's for those of you haven't been sub losses, I believe the world's largest payments conference financial services.
I'm pleased to let you know we have more than 99% of our full year 2024 revenue forecast either already signed and contracted.
Speaker Change: Or covered by a fourth quarter renewal that is well into the final approval process from the customer side.
John Kraft: This year as I said in China.
John Kraft: In other areas of our banking segment, our issuing and acquiring solution revenues were also up nicely growing 40% from last year's level.
Speaker Change: Our pipeline momentum is notably higher than we've typically recorded by November and that allows us to raise our outlook for 2020 for it yet.
John Kraft: These proven solutions are powering some of the largest most innovative financial services companies in the world.
And probably most important to me that allows us to turn our attention to 2025 and beyond.
John Kraft: During Q3, we renewed and expanded relationships with leaders such as world pay and a very large payment facilitator and South America.
Speaker Change: Speaking of 2025, the large sales pipeline and momentum we have as we exit the year sets us up well for continued strength in revenue and EBITDA growth as we go into 2025, even consider the significant outperformance this year.
John Kraft: And speaking of next generation solutions, our payments hub technology investments are continuing development is on track and we remain extremely focused.
We will provide further guidance details regarding 2025, when we host our fourth quarter 2024 call in February.
John Kraft: As discussed throughout the year, we expect to have tangible solution for customers to review by yearend.
Speaker Change: But I did want to make sure you heard our preliminary view.
John Kraft: Our offering will be cloud data, increasing flexibility in terms of how customers utilize the tools and in terms of the breadth of customer segments. We can target not just our traditional very large bank segment.
Let me give you a little more color on each segment.
Speaker Change: In the Bank segment revenue was up 43% and EBITDA was up 69% compared to Q3 last year.
John Kraft: Conversations with customers continue to be encouraging.
Speaker Change: We saw strength in real time payments with revenue growth of 72%.
John Kraft: I met with a very large south American financial institution, CEO recently and explain the advantages of our approach.
Speaker Change: Our real time product revenues can be lumpy, we're clearly seeing good momentum in this space, including another central infrastructure win in Mexico, and some industry leading offerings in South Africa.
John Kraft: As is often the case when I do this he asked if he could be an early adopter.
Speaker Change: Our real time solutions are a great business for ACI and they're also a win for the world.
John Kraft: Unfortunately, I have to tell them or beta client list is already full.
Speaker Change: Hopefully you saw our recent press release, highlighting how real time payment adoption is expected to boost global economic growth.
John Kraft: No earnings call and technology would be complete without a mention of artificial intelligence. So let me reiterate.
Speaker Change: Speeding the movement of money.
John Kraft: We're using AI in multiple ways.
Speaker Change: And increasing financial inclusion, helping millions of virtual poverty, you access to lower cost financial services.
John Kraft: Driving productivity and software development testing customer service and fraud detection.
John Kraft: As I've mentioned before we're taking a co work approach with AI essentially pairing our team members with an AI colleague I'm doing air quotes there to give the benefits of AI tool and the human expertise, we are well known for.
Speaker Change: I really encourage you to take take a look at that press release in the report that we referred to in it.
Speaker Change: Powerful data in that report.
Speaker Change: It certainly generate lots of attention was in Beijing, a few weeks ago attending Sky boss.
Speaker Change: For those of you haven't been shy boss is I believe the world's largest payments conference financial services.
John Kraft: I'll move on to the builder segment, where revenue was up 5%.
John Kraft: Recall that we discussed last quarter's record revenue growth would not continue at double digit rates due mainly to higher than expected volumes with the IRS.
Speaker Change: This year as I said in China.
Speaker Change: In other areas of our banking segment, our issuing and acquiring solution revenues were also up nicely growing 40% from last year's level.
John Kraft: Last year's third quarter, there was a very tough compare that included high margin revenue from certain customers that won't recur as were one off items.
Speaker Change: These proven solutions are powering some of the largest most innovative financial services companies in the world.
John Kraft: In Q3, we signed many important renewal and expansion contracts, including with one of the largest utilities in the United States.
Speaker Change: During Q3, we renewed and expanded relationships with leaders such as world pay at a very large payment facilitator and South America.
John Kraft: Overall, the builder segment is performing well.
Speaker Change: And speaking of next generation solutions, our payments hub technology investments are continuing development is on track and we remain extremely focused.
John Kraft: Moving to the merchant segment.
John Kraft: Revenue grew 38% and EBITA grew 159% compared to Q3 last year.
Speaker Change: As discussed throughout the year, we expect to have tangible solution for customers to review by yearend.
John Kraft: This growth was partially driven by licensed software renewals and encouragingly our transaction based recurring revenue continued decline growing 5% in the quarter.
Speaker Change: Our offering will be cloud data, increasing flexibility in terms of how customers utilize the tools and in terms of the breadth of customer segments. We can target not just our traditional very large bank segment.
John Kraft: It's not quite at our target yet.
John Kraft: But we're going in the right direction with improvements each quarter this year as we projected.
John Kraft: I also want to highlight a couple of items that occurred subsequent to quarter end.
Speaker Change: Conversations with customers continued to be encouraging.
John Kraft: First I hope you saw our press release announcing the hire of Eric Glitch as our new head of merchant solutions.
Speaker Change: And that was a very large south American financial institution, CEO recently and explain the advantages of our approach as.
John Kraft: I've known Eric for years dating back to our days at Pfizer and I'm convinced he is the right leader for this very important business.
Speaker Change: As is often the case when I do this he asked if he could be an early adopter.
John Kraft: Second a few days ago, ACI signed a very significant contract with Kwik trip Kwik trip is one of the largest convenience store and fuel store retailers in the United States.
Speaker Change: Unfortunately, I had to tell him a beta client list is already full.
Speaker Change: No earnings call and technology would be complete without a mention of artificial intelligence. So let me reiterate.
John Kraft: A quick trip chose Aci's hosted Omnichannel solutions, because of our class, leading scalability reliability and a reputation for exceeding service level commitments.
Speaker Change: We're using AI in multiple ways.
Speaker Change: Driving productivity and software development testing customer service and fraud detection.
Speaker Change: As I mentioned before were taking a co work approach with AI essentially pairing our team members with an AI called me you get them doing air quotes there give the benefits of AI tool and the human expertise, we are well known for.
John Kraft: Excited about our opportunity in the merchant space into 2025 and beyond.
John Kraft: Overall, I'm quite pleased with our progress and I remain excited about our opportunity we're focused on sales execution and the development of our next generation payments hub platform, both of which position the company for long term profitable growth and significant incremental shareholder value.
Speaker Change: I'll move on to the builder segment, where revenue was up 5%.
Speaker Change: Recall that we discussed last quarter's record revenue growth would not continue at double digit rates due mainly to higher than expected volumes with the IRS.
John Kraft: I'll turn it over to Scott to discuss financials and our guidance Scott.
Scott Behrens: Thanks, Tom and good morning, everyone.
Speaker Change: Last year's third quarter.
Scott Behrens: I first plan to review our financial results for Q3, and then provide our outlook for the rest of 2024.
Speaker Change: Very tough compare that included high margin revenue from certain customers that won't recur as were one off items.
Scott Behrens: We will then open the line for questions.
Scott Behrens: Revenue in the quarter was 452 million up 24% compared to Q3 2023, and adjusted EBITDA was $167 million up 61% from Q3 2023.
Speaker Change: In Q3, we signed many important renewal and expansion contracts, including with one of the largest utilities in the United States.
Speaker Change: Overall, the Biller segment is performing well.
Speaker Change: Moving to the merchant segment.
Speaker Change: As Tom mentioned, we had particular strength in the bank segment and more specifically with real time payments, which was up 72% from last year.
Speaker Change: Revenue grew 38% and EBITDA grew 159% compared to Q3 last year.
Speaker Change: This growth was partially driven by licensed software renewals and encouragingly our transaction based recurring revenue continued decline growing 5% in the quarter.
Scott Behrens: In the bank segment revenue of $222 million was up 43% compared to Q3 last year.
Scott Behrens: Segment, adjusted EBITDA of $154 million was up 69% compared to Q3 last year.
Speaker Change: It's not quite at our target yet.
Speaker Change: But we're going in the right direction with improvements each quarter this year as we projected.
Scott Behrens: And banks as well as smaller portion of the total grew 15% in the quarter.
Speaker Change: I also want to highlight a couple of items that occurred subsequent to quarter end.
Scott Behrens: Our merchant segment revenue was $50 million up 38% compared to Q3 last year and adjusted EBITDA was $27 million up 159% compared to Q3 last year.
Scott Behrens: While we did benefit from license based customer renewals in the quarter. Our recurring revenue in this segment has continued to steadily improve throughout this year.
Scott Behrens: Lastly, our biller segment revenue was $180 million up 5% compared to Q3 last year adjusted.
Scott Behrens: Adjusted EBITDA was $31 million down compared to Q3 last year due to a particularly strong quarter last year, which included certain one time nonrecurring margin benefits that did not recur here in Q3 2024.
Scott Behrens: And we continue to see strong cash flow generation with cash flow from operations of $54 million more than double Q3 last year.
Scott Behrens: We ended the quarter with $178 million in cash on hand.
John Kraft: Debt balance of 1 billion and a net.
John Kraft: Debt leverage ratio of one six times and approximately $650 million and liquidity.
John Kraft: With our strong cash flow growth and our lowest leverage in well over a decade combined with our improved outlook for 2024, and our expectations of continued strength in 2025 enable us to reduce our long term stated leverage target from two five times down to two times.
John Kraft: We'll continue to maintain a disciplined long term focused capital allocation strategy that balances reinvestment in the business accretive M&A and share repurchases, while maintaining a strong balance sheet with ample liquidity and financial flexibility.
John Kraft: During the quarter, we repurchased approximately 200000 shares for $8 million of capital, which brings our year to date total to approximately 4 million shares for $128 million of capital.
John Kraft: And at the end of the quarter, we had approximately $372 million remaining available on the share repurchase authorization.
John Kraft: So turning next to our outlook, having made significant progress in advancing our full year bookings pipeline with more than 99% of our full year 2020 for revenue outlook already signed and contracted or representing license contracts renewing here before the end of the year.
John Kraft: We are raising our guidance range for both revenue and adjusted EBITDA. We now expect revenue to be in the range of 156 7 billion to $1 601 billion and.
John Kraft: And adjusted EBITDA to be in the range of 433 million to 448 million.
John Kraft: And notably we are currently tracking to the high end of both the revenue and EBITDA ranges.
John Kraft: Our improved outlook for 2024 combined with a strong sales pipeline. We are seeing exiting the year gives us confidence of continued strength in revenue and EBITDA growth in 2025.
John Kraft: We'll provide further guidance details regarding 2025, when we host our Q4 2024 call later in February.
John Kraft: So in summary, a really strong.
John Kraft: Quarter of revenue EBITDA, and cash flow growth, allowing us to ricky's our outlook for this year and we really have a lot of momentum as we exit 2024 that gives us confidence of continued strength as we look into 2025.
Tom Warsaw: So with that I'll pass it back to Tom for some closing remarks, Tom Thanks, Scott.
Tom Warsaw: In summary.
Tom Warsaw: We are pleased to continue delivering results that are in line with or above expectations.
Tom Warsaw: Looking forward our pipeline is strong and we're focused and optimistic regarding both our growth and our ability to deliver significant shareholder value.
Tom Warsaw: We look forward to catching up with you in the coming weeks. Thank you for joining our call operator, we can now take questions.
Tom Warsaw: Yeah.
Tom Warsaw: At this time I would now.
Speaker Change: To remind everyone in order to ask a question press Star then the number one on your telephone keypad.
Speaker Change: Please be reminded that youre only allowed to ask one question and one follow up question only.
Speaker Change: We will pause for just a moment to compile the Q&A Russell.
Speaker Change: Okay.
Speaker Change: Got it.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Your first question comes from the line of Traveler Williams.
Speaker Change: With the Justice.
Speaker Change: Go ahead, Hey, Jeremy.
Speaker Change: Thanks, Robert Hey, guys. Good morning. Thanks.
Speaker Change: Yeah, I wanted to ask a bigger picture question on the medium term outlook for growth in banks, Tom maybe if you could maybe help us distill down the main drivers behind this segment staying as a big of an upper single digit grower over the medium term what structurally changed here over the last few years, whether that's.
Speaker Change: Products that changes to go to market end market health any more detail there on kind of what underpins your confidence in the medium term outlook for banks would be great. Thanks.
Tom Warsaw: Yes sure sure so.
Speaker Change: Lots of things as you can imagine, but I think I think you mentioned market market strength there's.
Tom Warsaw: We're definitely having different types of conversations with our customers net I'm going to come at that from two angles. One is our customers are thinking about.
Tom Warsaw: Their business is healthy.
Tom Warsaw: They are they are investing.
Tom Warsaw: Quite quite heavily in new products and Theyre looking for.
Tom Warsaw: They're looking for a partner that can help them figure out how do they apply technology to make to make the entire business more.
Speaker Change: More efficient.
Speaker Change: Faster to market and <unk>.
Speaker Change: ACI, given our history and.
Speaker Change: The long relationships, we have with most of these financial institutions were a natural choice I think historically.
Speaker Change: We have probably spent most of the time with our customers on renewals and I'm talking about eight.
Speaker Change: Five years from now we need to talk about our renewal well now we're talking to them.
Speaker Change: Consistently throughout the.
Speaker Change: Throughout the year throughout the five year period of the license and were talking about the future.
Speaker Change: And as we've as we've begun to ramp up discussions around the payments hub.
Speaker Change: That's even building on this and so now I mean I heard from a very very large Asia Pacific customer I was in I was in Asia as I mentioned on the.
Speaker Change: Earlier I was in Asia recently, and I was talking to this customer and they said ACI is showing up differently.
Speaker Change: We're having these conversations about how you can help us achieve our objectives. Your products are critical to what we do there is that's always been the case. It continues to be the case, but they feel like we are much more of a partner. So that's a lot of words driver, but I think we.
Speaker Change: Have we have a really important role with these customers.
Speaker Change: We are we are continuing to exercise.
Speaker Change: Some pricing power that we have we've always had.
Speaker Change: But I think most importantly, we are being perceived as a as a partner and we're talking about how we help them achieve their objectives and they are much more.
Speaker Change: I'm not going to say, they're happy about paying paying more than about continuing to do more business with us but they are.
Speaker Change: They are comfortable with that because they see us as part of the solution to their future.
Speaker Change: Okay.
Speaker Change: Okay No I appreciate all that thanks, and then the.
Speaker Change: Just when you guys are talking about having that.
Speaker Change: Most all of this year's renewals either contracted or signed in that and you're shifting focus to 2025 aside from just giving us better visibility into what revenue looks like over the next year or two is there anything else strategically that enables when you get more of the renewal activity.
Speaker Change: <unk> done earlier in the year, whether that's freeing up more sales focus for cross sell and upsell just how we should think about that.
Speaker Change: That's kind of strategic impact and how that can.
Speaker Change: Have an impact on the growth algo for banks. Thanks, Yeah, So I'll make I'll make a comment then.
Speaker Change: Scott May have a thought on this too but I think there are two main benefits one is and you just said it we.
Speaker Change: We have almost no discussion in fact, I don't expect Scott and myself to have a single conversation about a renewal for the remainder of this year, we're talking about how do we help our sales and account management team structure.
Speaker Change: New business in 2025 and beyond that's all we're talking about now so.
Speaker Change: Whereas normally we spend quite a bit of time thinking about how do we answer customer questions. How do we get these these renewals sign up we.
Speaker Change: We don't have to do that at all so we're focused on the pipeline and setting up <unk>.
Speaker Change: Q1, Q2, Q3 Q4 of next year, So that's probably the biggest thing.
Speaker Change: Second thing, though is.
Speaker Change: As I mentioned, the payments hub and we've made great progress on that.
Speaker Change: We're we're very close to having.
Speaker Change: A solution that we can start to actually demonstrate to our customers and now what I'm spending most of my time on right now is sitting down with customers and potential customers and giving them much more insight into what that payment help looks like what the benefits, they're going to get will be.
Speaker Change: And I think I was as I tried to be a little bit funny.
Speaker Change: Our beta clients, we have so many customers asking to be early adopters you. Obviously can't have them. All you have to you have to narrow the list. So.
Speaker Change: Yeah. So on the one hand, it's allowed us really to focus on next year, which we are in on the on the other hand.
Speaker Change: It's allowed me in particular, but our sales team as a whole to focus on helping customers understand where we're going and how they can leverage the investments that we're making.
Speaker Change: Yes, the only thing I'd add to that I have been around a long time.
Speaker Change: ACI has a history of well first of all the bank, especially in the bank side, it's a long sales cycle.
Speaker Change: And we have a history of that sales cycle coming to fruition in the fourth quarter late in the fourth quarter and I think what you see here is two things one is yes.
Speaker Change: We have substantially completed this years new business really the end of September I mean, it's not now in November. It was it was really earlier in the year and that allows us to turn our focus to accelerate.
Speaker Change: That pipeline again, a pipeline that otherwise may have came to fruition in the fourth quarter of next year is now may be pushed to the third quarter of next year and potentially earlier, so what it really frees us up to do like Tom said it is listen we can accelerated spend time.
Speaker Change: Accelerating next year's pipeline and what that allows us to do not just for 'twenty five 'twenty six that allows us to continue on the path towards our long term stated.
Speaker Change: <unk>.
Speaker Change: Perfect Alright, thanks, guys I appreciate it.
Speaker Change: Thanks Trevor.
Speaker Change: Yeah.
Speaker Change: Our next question comes from the line of Peter Heckmann with D. A Davidson. Please go ahead.
Speaker Change: Okay.
Speaker Change: Thanks for taking my question.
Speaker Change: Hey, good morning, I apologize I missed it.
Speaker Change: The beginning of the call I had some trouble getting online.
Speaker Change: But can you repeat your comments on 2025, I mean that that was going to be kind of my leading question after a year where you.
Speaker Change: It looks like a software licensees could be up 20% on the year.
Speaker Change: It does seem to prevent present, a pretty tough comparison continue strong overall growth rates at least in certain quarters next year and so just wanted to see if you could repeat that real quick.
Speaker Change: Yes, no I mean I think this is Pete.
Speaker Change: Pete disposals over the last question.
Speaker Change: We're able to do now is really focused on pulling that pipeline forward. So what we're looking at is probably as strong a pipeline for 'twenty five.
Speaker Change: Exiting this year is probably we've had at this point in time going into any of the years. So Tom's comments.
Speaker Change: On the introductory report where that even even in even though we are outperforming this year our pipeline for next year as it sits today is healthy enough to keep us on our growth.
Speaker Change: Yes, I mean, specifically, we didn't give any specific numbers, Pete but what what I said was that we.
Speaker Change: We are well positioned to continue to see strength.
Speaker Change: In 2025 and beyond even with the outperformance.
Speaker Change: Okay got it that's helpful and then.
Speaker Change: And again I apologize if I missed it.
Speaker Change: We can accelerate it spend time.
Speaker Change: Okay.
Speaker Change: Connection problems.
Speaker Change: Accelerating next year's pipeline and what that allows us to do not just for 'twenty five 'twenty six that allows us to continue on the path towards our long term stated.
Speaker Change: I heard you say that the payments hub is on track.
Speaker Change: And you hope to have that.
Speaker Change: Our product you can show them.
Speaker Change: By year end, but where do you think you might start the pilots.
Speaker Change: Both goals.
Speaker Change: Perfect Alright, thanks, guys I appreciate it.
Speaker Change: And then.
Speaker Change: Thanks, Jeremy.
Speaker Change: Have the hub go into general availability.
Speaker Change: Okay.
Speaker Change: Yes, I would expect to see the initial pilot implementations, probably the beginning of second quarter next year and then.
Speaker Change: Our next question comes from the line of Peter Heckmann.
Speaker Change: D. A davidson. Please go ahead.
Speaker Change: Yeah.
Speaker Change: I don't know exactly.
Speaker Change: Thanks for taking my question, Hey, good morning, I apologize I missed.
Speaker Change: <unk> Wen.
Speaker Change: Full scale general availability will be we want to be very very thoughtful about making sure that it's you know it's working exactly as we want and get those initial initial pilots really solid so I won't make I won't make a put a stake in the ground on that but but we feel really good about it and it's not.
Speaker Change: At the beginning of the call I had some trouble getting online.
Speaker Change: Can you repeat your comments on 2025, I mean that was going to be kind of my leading question after a year where.
Speaker Change: It looks like software licensees could be up 20% on the year.
Speaker Change: It does seem to prevent present, a pretty tough comparison continue strong overall growth rates at least in certain quarters next year.
Speaker Change: It's not something that's.
Speaker Change: We don't acquire very much of that for our next year expectations.
Speaker Change: Okay Alright.
Speaker Change: I wanted to see if you could repeat that real quick.
Speaker Change: Alright, I will get back in the queue I appreciate it.
Pete: Yes, I think this is Pete.
Speaker Change: Thanks Pete.
Speaker Change: Pete disposals over the last question as we're able to do now is really focus on pulling that pipeline forward. So what we're looking at is probably a stronger pipeline for 'twenty five.
Speaker Change: Okay.
Speaker Change: Your next question comes from the line of Jeff Cantwell with <unk> Research. Please go ahead.
Speaker Change: Hi, Thanks for taking my question Hi, Good morning. Thank you.
Speaker Change: Exiting this year is probably we've had at this point in time going to give any two years. So Tom's comments.
Speaker Change: I wanted to ask you post election can you talk about the current administration change here in the U S. And you gave us some of your early thoughts in terms of how you think that might impact your business as far as next year about a year.
Speaker Change: On the introductory part where that even even in even though we are outperforming this year our pipeline for next year as it sits today is healthy enough to keep us on our growth.
Speaker Change: When you provided the medium term guidance back in March that was under different leadership here do you guys, maybe tell us what some of your initial reactions are here it seems like.
Speaker Change: Yes, I mean, specifically, we didn't give any specific numbers, but what what I said was that we.
Speaker Change: Perhaps your regulation taxation and the other things that could potentially be shifting a little more positively it may give us.
Speaker Change: The banking sector was up a lot of the market yesterday, particularly many of the larger U G Sibs and clearly that's an important customer segment for you guys. So could you help frame. This perhaps you might increase the pipeline or could see more transaction growth things like that would you love to get your initial thoughts in areas, where there could potentially be some impact down the road. Thanks.
Speaker Change: We are well positioned to continue to see strength.
Speaker Change: In 2025 and beyond even with the outperformance.
Speaker Change: Okay got it that's helpful and then.
Speaker Change: And again I apologize if I missed it.
Speaker Change: Okay.
Speaker Change: Connection problems.
Speaker Change: I heard you say that the payments hub is on track.
Speaker Change: Hey, Jeff you mentioned an election was there an election.
Speaker Change: And you hope to have.
Speaker Change: No sorry, just trying to be funny, but.
Speaker Change: Our product you can show them.
Speaker Change: By year end, but where do you think you might start the pilots.
Speaker Change: Yes, I mean look I don't I don't.
Speaker Change: Don't have a solid view on it but I think the.
Speaker Change: And and then.
Speaker Change: Hey, Bob go into general availability.
Speaker Change: I think there is definitely potential good news as the as the market thinks given what happened yesterday with the banking segment.
Speaker Change: Yes, I would expect to see the initial pilot implementations, probably the beginning of second quarter next year and then.
Speaker Change: We certainly hope that there is maybe a little bit less regulation in the U S.
Speaker Change: I don't know exactly when.
Speaker Change: Hopefully, we see a little more transaction growth as you said.
Speaker Change: Full scale general availability will be we want to be very very thoughtful about making sure that it's it's working exactly as we want and get those initial initial pilots really solid so I won't make I won't make a put a stake in the ground on that but but we feel really good about it and it's not it's.
Speaker Change: That's all that would all be upside for us and we but we havent, obviously built any of that into our forecast because it's so new and we just don't have a handle on it yet, but I do want to just make sure that I say, we're obviously a global company and.
Speaker Change: Not something Thats.
Speaker Change: So the U S is a big part of our business, it's not the majority of our business. So.
Speaker Change: We don't acquire very much of that for our next year expectations.
Speaker Change: Even though we probably see a little bit.
Speaker Change: Okay Alright.
Speaker Change: Alright, I will get back in the queue I appreciate it.
Speaker Change: It's a little bit easier if that's even the right word.
Speaker Change: Thanks Pete.
Speaker Change: Okay.
Speaker Change: <unk> environment in the U S.
Speaker Change: Don't really see much change in in the rest of the World I think it will continue the way we were expecting Europe is usually at the vanguard of of of regulation on many things and we're there.
Speaker Change: Your next question comes from the line of Jeff Cantwell with Seaport Research. Please go ahead.
Speaker Change: Hi, Thanks for taking my question Hi, Good morning. Thank you.
Speaker Change: I wanted to ask you post election can you talk about the current administration change here in the U S. Can you give us some of your early thoughts.
Speaker Change: There are things that have to be done there and that's not changing given the U S election, but I'm cautiously optimistic, but I don't I don't have I don't have a lot to tell you quantitatively, Jeff and I think the only thing I'd add to that is that I mean, obviously, if you look at the results last few years banks have really opened up the wallet.
Speaker Change: In terms of how you think that might impact your business as far as next year about a year.
Speaker Change: When you provided the medium term guidance back in March that was under different leadership here do you guys, maybe tell us what some of your initial reactions are here it seems like.
Speaker Change: She regulation taxation and other things that could potentially be shifting a little more positively. It may give us saw the banking sector was up a lot of the market yesterday, particularly many of the larger G. Sibs and clearly that's an important customer segment for you guys. So could you help frame. This perhaps you might increase the pipeline or could see more transaction growth things like that would you.
Speaker Change: Big Spenders and buyers of technology buyers of Mark Theyre going through modernization efforts.
Speaker Change: I think if you look at recent developments I think it's really that banks have a lot of tailwind right now and whether it's regulatory economic the overall marketplace. So we would just expect that to contribute to more spending on the part of banks. So.
Speaker Change: Love to get your initial thoughts in areas, where there could potentially be some impact down the road. Thanks.
Speaker Change: Hey, Jeff you mentioned an election was there an election.
Speaker Change: Pretty encouraged by what.
Speaker Change: No sorry, just trying to be funny, but.
Speaker Change: What opportunities, we have with that customer base.
Speaker Change: Yes, I mean look I don't I don't have a solid view on it but I think the.
Speaker Change: Yeah.
Speaker Change: Got it okay, great and then just to follow up on an earlier question that I wanted to hit Empire I was I also drink a little bit.
Speaker Change: There is definitely potential good news as the as the market thinks given what happened yesterday with the banking segment. We certainly hope that there is maybe a little bit less regulation in the U S.
Speaker Change: Could you talk about.
Speaker Change: As you think about the guidance that you provided.
Speaker Change: For the medium term has there been any change under the Hood.
Speaker Change: The segments themselves do you mind, just walking us through it seems like banks is performing very strongly and so forth. So curious if you could help us understand that.
Speaker Change: Hopefully, we see a little more transaction growth as you said.
Speaker Change: That's all that would all be upside for us, but we havent, obviously built any of that into our forecast because it's so new and we just don't have a handle on it yet.
Speaker Change: The revenue outlook for each segment.
Speaker Change: Where expectations might be shifting thank you.
Speaker Change: Oh I want banks banks has been strong banks, we expectations going to continue to be strong.
Speaker Change: But I do want to just make sure that I would say, we're obviously a global company and so the U S is a big part of our business, it's not the majority of our business. So.
Speaker Change: Pillars have some seasonality in that business. If you recall from the second quarter, we had a strong.
Speaker Change: Even though we probably see a little bit.
Speaker Change: Tax.
Speaker Change: It's a little bit easier if that's even the right word regulatory environment in the U S. I don't really see much change in in the rest of the World I think it will continue the way we were expecting Europe is usually at the vanguard of.
Speaker Change: Order in terms of the tax transactions.
Speaker Change: We got a favorable award in terms of the go forward business that we have with the IRS going forward.
Speaker Change: That to begin to contribute here next year, the exit rate for the door business.
Speaker Change: Of regulation on many things and we're there.
Speaker Change: Should accelerate a bit on a sequential basis quarter over quarter in our merchant business has been you know if you recall last year early part of the year.
Speaker Change: There are things that have to be done there and that's not changing given the U S election, but I am cautiously optimistic, but I don't I don't have I don't know.
Speaker Change: We're seeing a bit of decline in that business.
Speaker Change: Have a lot to tell you quantitatively, yes, Jeff and I think the only thing I'd add to that is that I mean, obviously, if you look at the results last few years banks have.
Speaker Change: Flip positive in the second half and we've been incrementally more positive each quarter. This year. So.
Speaker Change: I think going back to our comments without providing 2025.
Speaker Change: It really opened up the wallet and have been spenders and buyers of technology buyers.
Speaker Change: Outlook by by segment I think all will nicely contribute to growth next year, yes.
Speaker Change: They're going through modernization efforts.
Speaker Change: I think if you look at recent developments I think it's really that banks have a lot of tailwind right now.
Speaker Change: Yes.
Speaker Change: Asking about if theres anything under the Hood, that's changed I really don't think so.
Speaker Change: The businesses are performing generally in line with where we thought banks has been extremely strong and that's.
Speaker Change: Whether it's regulatory economic the overall marketplace. So we would just expect that to.
Speaker Change: To contribute to more spending on the part of banks so.
Speaker Change: That's been one of the primary drivers of our over performance this year and we expect it to continue to be strong.
Speaker Change: Pretty encouraged by.
Speaker Change: What opportunities, we have with that customer base.
Speaker Change: Okay, great. Thanks very much.
Speaker Change: Yeah.
Speaker Change: Got it okay, great and then just to follow up on.
Speaker Change: Thanks, Jim.
Speaker Change: Okay.
Speaker Change: To your question that I wanted to ask I apologize I was I also joined a little bit a.
Speaker Change: Again, if he would like to ask a question press star one on your telephone keypad.
Speaker Change: A few minutes.
Speaker Change: Could you talk about as you think about the guidance that you provided.
Speaker Change: Your next question comes from the line of George Sutton from Craig Hallum Capital. Please go ahead.
Speaker Change: For the medium term has there been any change under the Hood.
Speaker Change: Okay.
Speaker Change: Hey, George Good morning, guys. Good morning. This is actually Logan on for George Thanks for taking my question.
Speaker Change: As far as the segments themselves you mind, just walking us through it seems like banks is performing very strongly and so forth. So curious if you could help us understand in terms of the revenue outlook for each segment, where expectations might be shifting thank you.
Speaker Change: First of all I wanted to kind of stay on the topic of the banks there.
Speaker Change: You guys have talked about those midsize banks being kind of an incremental opportunity for you guys.
Speaker Change: I'm just wondering if you can give us any more color on sort of how much are those now if any contributing to the segment and where do you think that could go in the future.
Speaker Change: Thanks, Thanks, there's been strong banks, we expectation is going to continue to be strong.
Speaker Change: Yes, I mean, we have specifically not spin.
Speaker Change: Builders have some seasonality in that business. If you recall from the second quarter, we had a strong.
Speaker Change: Driving.
Speaker Change: Far into the sales process with the payments hub, which is where that opportunity primarily comes from and I've talked about that a lot.
Speaker Change: Tax.
Speaker Change: Quarter in terms of the tax transactions.
Speaker Change: We got a favorable award in terms of the go forward business that we have with the IRS going forward.
Speaker Change: I do not want us to get ahead, I do not want to be selling Powerpoint, which companies do and probably ACI has done in the past. So we're not doing that we're talking about.
Speaker Change: That should begin to contribute here next year, the exit rate for the door business.
Speaker Change: Should accelerate a bit on a sequential basis quarter over quarter and in the merchant business has been if you recall last year early part of the year.
Speaker Change: Here's where we're going these are the advantages that will be there here's the schedule that we're on will will show it to you when it's ready to be shown.
Speaker Change: <unk> been a decline in that business flow.
Speaker Change: We've got lots of interest.
Speaker Change: Flip positive in the second half and we've been incrementally more positive each quarter. This year. So.
Speaker Change: But in terms of what that segment is contributing its small its very small we have some business with mid tier banks, but in terms of our flagship products not very much.
Speaker Change: I think going back to our comments without providing 2025.
Speaker Change: We tend to focus those through.
Speaker Change: Outlook by segment I think all will nicely contribute to growth next year, yes.
Speaker Change: Through Fintech partners historically, so not a whole lot of contribution directly from that segment at this point, but a lot of interest.
Speaker Change: Yes.
Speaker Change: Asking about if there is anything under the Hood, that's changed I really don't think so.
Speaker Change: Yeah, and I think Logan that Scott I think where you see the bank strength. We're seeing today is not a result of us going downstream into that I mean, thats really coming from our core <unk>.
Speaker Change: The businesses are performing generally in line with where we thought banks has been extremely strong and that's.
Speaker Change: That's been one of the primary drivers of our over performance this year and we expect it to continue to be strong.
Speaker Change: <unk> segment, and I think even when we get into the mid tier, it's really going to manifest itself more on the SaaS side than on the license software side. So.
Speaker Change: Okay, great. Thanks very much.
Speaker Change: Thanks, Jeff.
Speaker Change: That market will be more served bierbarror, our SaaS market, so really what youre seeing in the strength and banks is really done really buying technology on premise licensed software and that's that's really still the big banks, but mid tier should start to kick in next year and.
Speaker Change: Okay.
Speaker Change: Again, if he would like to ask a question press star one on your telephone keypad.
Speaker Change: Your next question comes from the line of George Sutton from Craig Hallum Capital. Please go ahead.
Speaker Change: Most likely from a SaaS delivery model.
Speaker Change: Okay.
Speaker Change: Hey, George Good morning, guys. Good morning. This is actually Logan on for George Thanks for taking any longer.
Speaker Change: Got it. Thank you and then just one follow up.
Speaker Change: First of all I wanted to kind of stay on the topic of the banks there.
Speaker Change: Can you, maybe just touch a little bit on sort of the competitive environment you see in the real time payment space I mean, it is more of that.
Speaker Change: You guys have talked about those midsize banks being kind of an incremental opportunity for you guys.
Speaker Change: Business coming from kind of up selling with current customers or are you looking at new customers and then maybe Kevin with those new customers are you seeing any change in the competition out there for winning those.
Speaker Change: I'm just wondering if you can give us any more color on sort of how much are those now if any contributing to the segment and where do you think that could go in the future.
Speaker Change: Yes, I mean, we have specifically not spin.
Speaker Change: Yes so.
Speaker Change: That's <unk>.
Speaker Change: Most of the new new business, we're getting it's not it's not usually expansion in that particular area. If we're talking about real time payments.
Speaker Change: Driving.
Speaker Change: Far into the sales process with the payments hub, which is where that opportunity primarily comes from and I've talked about that a lot.
Speaker Change: So.
Speaker Change: I mentioned earlier, we have another central infrastructure when so when we say central infrastructure. What we mean is our software is actually powering the entire country's instant payments are a real time payment scheme and.
Speaker Change: I do not want us to get ahead, I do not want to be selling Powerpoint, which companies do and probably ACI has done in the past. So we're not doing that we're talking about.
Speaker Change: Here's where we're going these are the advantages that will be there here's the schedule that we're on will will show it to you when it's ready to be shown.
Speaker Change: We signed we signed another one in Mexico.
Speaker Change: In the third quarter, so we're up to 11 cents.
Speaker Change: We've got lots of interest.
Speaker Change: Central infrastructures and those are all net new I mean, they're not they're not just new new to us those are brand new period. So there was no.
Speaker Change: But in terms of what that segment is contributing its small its very small we have some business with mid tier banks, but in terms of our flagship products not very much.
Speaker Change: There was no central infrastructure in many of these places and we've we are helping typically at the central bank, but sometimes an agent of the central Bank, we're helping them set the program up when we do our central infrastructure deal and again, we have 11 of those around the world.
Speaker Change: We tend to focus those through.
Speaker Change: Through Fintech partners historically, so no.
Speaker Change: Not a whole lot of contribution directly from that segment at this point, but a lot of interest.
Speaker Change: Yeah, and I think Logan this is Scott I think so yes.
Speaker Change: And then the other the other side on a real time payments is when we when we help.
Speaker Change: Yeah, obviously the bank strength, we're seeing today is not a result of us going downstream into that I mean, thats really coming from our core large bank segment and I think even when we get into the mid tier, it's really going to manifest itself more on the SaaS side than on the license software side. So.
Speaker Change: Individuals payment schemes so.
Speaker Change: They're each country has one or sometimes more than one of these payment schemes and so will our software often powers those schemes. So we've got the central infrastructure, we've got the real time payments schemes in an individual country and then we have the work that we do for banks.
Speaker Change: That that market will be more served bierbarror SaaS market, so really what youre seeing in the strength and banks is really really buying technology on premise licensed software.
Speaker Change: Still the big banks, but mid tier should start to kick in next year and most likely from a SaaS delivery model.
Speaker Change: And ultimately for merchants to connect into those real time payment schemes. So we kind of have three angles on this all of them are performing well the vast majority of that business is new to us. It is not expansion, sometimes we have an existing relationship with the bank and we will add on.
Speaker Change: Got it. Thank you and then just one follow up could.
Speaker Change: Can you, maybe just touch a little bit on sort of the competitive environment and you see in the real time payment space I mean as more of that.
Speaker Change: <unk> business coming from kind of Upselling with current customers or are you looking at new customers and then maybe kind of with those new customers are you seeing any change in the competition out there for winning those.
Speaker Change: On real time payments, so that in a way that cross sell.
Speaker Change: But most of that business is is net new.
Speaker Change: Now there are other things other than real time payments instant payments in our in a real time numbers for example, wire transfers and sometimes we do expand those so theres a variety of things, but when we're talking about instant payments in the U S. It's fed now in the T C H.
Speaker Change: Yes so.
Speaker Change: That's <unk>.
Speaker Change: Most of the new new business, we're getting it's not it's not usually expansion in that particular area. If we're talking about real time payments.
Speaker Change: So.
Speaker Change: I mentioned earlier, we have another central infrastructure when so when we say central infrastructure. What we mean is our software is actually powering the entire countries.
Speaker Change: Rails, when we're talking about those that's almost all net new.
Speaker Change: Yes, I think the only thing I'd add to that is really from a competitive environment standpoint, nothing has really changed and I think if you look at the the results of our real time segment, even Q3 up 70% over last year Big Big part of that is there is just tremendous growth there because there's a lot there's a lot of land grab.
Speaker Change: Instant payments are a real time payment scheme.
Speaker Change: And we signed we signed another one in Mexico.
Speaker Change: In the third quarter, so we're up to 11 cents.
Speaker Change: Central infrastructures and those are all net new I mean, theyre not theyre not just new new to US those are brand new period. So there was no.
Speaker Change: We've got the technology, we have the relationships so.
Speaker Change: It's definitely delivering results and again, the competitive environment really hasn't changed yes.
Speaker Change: There was no central infrastructure in many of these places and we were helping typically at the central bank, but sometimes an agent of the Central Bank, we're helping them set the program up when we do our central infrastructure deal and again, we have 11 of those around the world.
Speaker Change: And sorry, I forgot to answer that part of your question. Thank you Scott.
Speaker Change: There was an example recently I think it was actually in fourth quarter than it was announced but Mastercard actually made an announcement in south Africa around real time payments and Mastercard driving adoption of real time payments and they are they are using our software to do that and they they acknowledged.
Speaker Change: And then the other the other side on a real time payments is when we when we help.
Speaker Change: Individuals payment schemes so.
Speaker Change: Each country has one or sometimes more than one of these payment schemes and so will our software often powers those schemes. So we got the central infrastructure, we've got the real time payments schemes and individual country and then we have the work that we do for banks.
Speaker Change: The partnership that we have so even sometimes when it looks like there's a there's a new competitor here or there is a.
Speaker Change: Maybe we didn't win something oftentimes, we're part of that solution anyway, and that's a great example of that and that's a great partnership we have with Mastercard in various places around the world.
Speaker Change: And ultimately for merchants to connect into those real time payment scheme. So we kind of three angles on this all of them are performing well the vast majority of that business is new to us. It is not expansion, sometimes we have an existing relationship with the bank and we will add on.
Speaker Change: Got it thanks for all the color.
Speaker Change: Yes, Thanks Louise.
Speaker Change: Okay.
Speaker Change: Churn comes from the line of Peter Heckmann with David D. A Davidson. Please go ahead.
Speaker Change: Okay I just had a follow up on that last one it reminded me.
Speaker Change: On real time payments, so that in that cross sell.
Speaker Change: Tom you were talking about kind of the.
Speaker Change: But most of that business is is net new.
Speaker Change: The current seat at the table that kind of gives you are right.
Speaker Change: Okay.
Speaker Change: Now there are other things other than real time payments instant payments in our in a real time numbers for example, wire transfers and sometimes we do expand those so there is a variety of things, but when we're talking about instant payments in the U S fed now in the th.
Speaker Change: The bid on these payment types of opportunities.
Speaker Change: Can we talk a lot about with ACI American can you remind us I think on like wires I think ACI powers some.
Speaker Change: A high percentage 25, okay.
Speaker Change: 30% of a wires and then also our attach rates to switch systems can you talk a little bit about those systems and how you've talked about.
Speaker Change: Rails, when we're talking about those that's almost all net new.
Speaker Change: Yes, I think the only thing I'd add to that is really from a competitive environment standpoint, nothing has really changed and I think if you look at the.
Speaker Change: Many of these institutions.
Speaker Change: Do you have a relationship with you either can be back to real time or through.
Speaker Change: The results of our real time segment EBIT in Q3 up 70% over last year Big Big part of that is there's just tremendous growth there because there's a lot. There's a lot of land graph. We've got the technology, we have the relationships. So.
Speaker Change: The core.
Speaker Change: Debit ATM switch.
Speaker Change: Yes sure Pete.
Speaker Change: So.
Speaker Change: We just.
Speaker Change: Let me give you just a couple of of.
Speaker Change: It's definitely delivering results and again, the competitive environment really hasn't changed yes.
Speaker Change: Figures, just just to set a little context.
Speaker Change: Our our wires system, our wireless platform.
Speaker Change: And sorry, I forgot to answer that part of your question. Thank you Scott.
Speaker Change: Banks around the world use that to process trillions of dollars, that's trillions with a T M.
Speaker Change: There was an example recently I think it was actually in fourth quarter that it was announced but Mastercard actually made an announcement in south Africa around real time payments and Mastercard driving adoption of real time payments and date, they're using our software to do that and they they acknowledged.
Speaker Change: Every day.
Speaker Change: So and it's highly reliable incredibly scalable.
Speaker Change: And it's it is what we.
Speaker Change: We often I often talk about ACI.
Speaker Change: <unk> the world's payments ecosystem, there's a big there's a big part of it similarly are.
Speaker Change: The partnership that we have so even sometimes when it looks like there is a there's a new competitor or theirs.
Speaker Change: Our issuing and acquiring platforms handle also trillions of dollars of payments every single day.
Speaker Change: Maybe we didn't win something oftentimes, we're part of that solution anyway and that is a great example of that that's a great partnership we have with Mastercard in various places around the world.
Speaker Change: And we do business with all of the 20 largest banks in the world.
Speaker Change: And the majority of the significant majority of the largest hundreds and you could even go down to 200 largest banks in the world. So our platforms have a very important places in.
Speaker Change: Got it thanks for all the color.
Speaker Change: Yes, Thanks Luke.
Speaker Change: Yeah.
Speaker Change: Churn comes from the line of Peter Heckmann with David D. A Davidson. Please go ahead.
Speaker Change: In the the payments infrastructure of the largest financial institutions in the world and that's where my comment comes from.
Speaker Change: Okay I just had a follow up on that last point it reminded me Todd.
Speaker Change: Tom you were talking about.
Speaker Change: Current seat at the table that kind of gives you are right.
Speaker Change: Okay.
Speaker Change: I met with one of the largest banks in the world I met with their CEO about a month ago.
Speaker Change: The bid on.
Speaker Change: Paid in types of opportunities.
Speaker Change: Can we talk a lot about with ACI American can you remind us I think on like wires I think ACI powers some.
Speaker Change: And we had this we had a fantastic conversation the conversation was about the future how does ACI help them just like I was talking about earlier, but he made a fascinating comment to me he said.
Speaker Change: High percentage 25.
Speaker Change: 30% of wires in it.
Speaker Change: You know, we haven't talked in like nine months and he said.
Speaker Change: That's a really good thing and I kind of looked at it and then I said well wait I don't know if that's a good thing. He said no no No Trust me that's a good thing because.
Speaker Change: If if we were talking more often that means something was wrong.
Speaker Change: He said I really enjoyed this conversation about the future and I want to have more of those but I don't have to think about ACI your products just work.
Speaker Change: And I'm not losing any sleep my team isn't losing any sleep.
Speaker Change: That's the the fact that we have these long relationships that our platforms are so important to their infrastructure.
Speaker Change: And that they don't worry about us they know our our stuff is going to work.
Speaker Change: That all of that together is why we have the we are one of the usual suspects when they need help and when theyre thinking about the future and how they deal with things.
Speaker Change: Things that are changing in their environment. So.
Speaker Change: That's where I'm coming from on that you mentioned real time payment. That's another one that tends to be relatively new not not the wires part, but the the the instant payments pieces those are relatively new but it's I think the fact that we.
Speaker Change: We keep winning these deals is further evidence of that.
Speaker Change: They look to us even though that's a new thing they say well I rely on ACI. So much for my payments and other areas. Obviously there are they are a great partner or potential partner on real time payments.
Speaker Change: Oh no that's it that's what really makes the.
Speaker Change: <unk>.
Speaker Change: Thinking about developing and payments on platform, a little bit easier to get to because ACI already have systems that are doing wires cross border real time debit EMEA H H.
Speaker Change: It's really just having to add maybe a couple of other modalities.
Speaker Change: Modalities and you really have a whole package.
Speaker Change: That's exactly right Pete and on the payments hub. That's why these conversations are so straightforward.
Speaker Change: For me because no no customer or prospective customer ever has said to me or even hinted to me that it doesn't make sense to have the conversation with ACI.
Speaker Change: Obviously, we should have that conversation given our history and your presence in the market.
Speaker Change: Okay, Alright, I appreciate it.
Speaker Change: You bet Thanks, Steve.
Speaker Change: Yeah.
Speaker Change: Ladies and gentlemen that concludes today's call. Thank you all for Jean you May now disconnect.