Q1 2025 ACI Worldwide Inc Earnings Call

Hello and welcome to ACI Worldwide Inc reports financial results for the quarter ended March 31, 2025

All lines have been placed on mute to prevent any background noise. After the speaker remarks, there will be a question and answer session.

If you would like to ask a question during this time, see the press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again, and please limit yourself to one question and one follow up.

Thank you, and good morning, everyone.

On today's call, we will discuss the company's first quarter 2025 results, as well as our financial outlook for the rest of the year. We will take your questions at the end.

The slides accompanying this call and webcats can be found at aciworldwide.com under the investor relations tab and will remain available after the call.

Today's call is subject to safe harbor and toward looking statements like all of our events.

You can find the full text of both statements in our presentation deck and earnings press released both of which are available on our website and with the SEC.

Speaker Change: On this morning's call is Tom Warsop, our president and CEO , and Scott Behrens, our CSO. But before I turn it over, I wanted to make you aware that ACI will be participating in several conferences in Q2.

Speaker Change: the 20th annual Needham Technology Media and Consumer Conference on May 12.

The annual seaport growth discovery conference on May 15th

Compass Points, Virtual Bus Tour on June 2

Speaker Change: The Baird 2025 Global Consumer Technology and Services Conference in New York City on June 5th.

Speaker Change: and D.A. Davidson's Consumer and Technology Conference in Nashville on June 11th.

With that, I'll turn the call over to Tom.

Thanks John , and good morning everyone.

Thomas: As always, I appreciate you joining our earnings conference called this morning. I'll start with some comments about the quarter and then I'm going to hand it over to Scott and he'll discuss detailed financial results as well as expectations for the rest of 2025. And then we'll open it up for questions.

To begin, Q1 was a very strong start for us.

We grew revenue 25% and EVA.95%

Thomas: You probably recall I've said several times that we have been pushing our teams to sign both renewals and new business earlier in the year.

Thomas: to both de-risk accomplishment of our full-year targets and to allow us to more quickly focus on longer-term, more strategic opportunities.

Thomas: I'm happy to report this pressure continues to yield results. In fact, we were able to sign more revenue in Q1 than I even I expected.

Thomas: As a reminder, renewal contracts yield revenue on the date of their renewal and that doesn't matter how early we signed them.

Thomas: So, I think it's probably clear that the incremental revenue this quarter comes from net new business.

and better than expected transaction volumes, not renewals.

Thomas: Some of the new business we signed was originally expected in Q2 but I'm sure you agree with me that we'd rather have it earlier.

Thomas: Scott's going to walk you through the guidance a bit later, but this strong start positions functions us very well to achieve first half and full-year results in line with our previous indications.

Thomas: So we won't be able to sustain a 25% revenue growth rate throughout the year but I'm very pleased we delivered so much revenue growth so early.

Thomas: On our last earnings call, I mentioned the organizational improvement we made in combining the bank segment and the merchant segment into a single new business unit called Payments Software. As I said, the combination is synergistic and it simplifies our operations in many respects.

Thomas: Further, the software that code, if you will, that we use to serve banks and merchants is very similar.

Thomas: That move has already generated some positives, including generating some new pipeline opportunities and allowing us to more efficiently cover certain geographies where we have customers in both pieces of that segment.

Thomas: So if I turn to the segments, let me start with payments software, revenue grew 42% adjusted EBITDA more than doubled compared to Q1 of last year. As we mentioned previously, we signed the largest new logo and competitive takeaway we have ever had in our Asia-Pacific region.

Thomas: And in addition, we signed another significant new logo in the segment, this one in our Latin America region in South America in fact.

Thomas: We're proud to have signed two completely new bank logos in a single quarter. Both of these wins are using our issuing and acquiring solutions.

Thomas: Before moving on from Payment Software to Billar, I want to provide you an update on our next-generation payments hub solution, and we've now officially named that Kinetic.

Thomas: That's C-O-N-N-E-T-I-C. I often joke that you have to make up a word.

Thomas: in order to get a name through the IP lawyer. And that's what we did here, but I think it's a nice one. The solution to remind you, Cloud Native, it provides a lot of enhanced capabilities.

Thomas: such as automated decisioning, straight through processing, decline transaction reduction, and AI-driven analytics.

Thomas: It simply improved the experience of a bank and its customers.

Thomas: The solution also expands our addressable market beyond our traditional large banks to include mid-size and smaller institutions as well as non-bank financial institutions and payments technology firms and ultimately even global retailers.

Thomas: Kinetic compliments are existing solutions, and it's very helpful as our customers plan to migrate to the cloud.

Kinetic will help customers manage a lower risk modernization journey.

Thomas: I was speaking to the CIO of a very large Middle Eastern bank last week, when I was in the Middle East, and when I finished my description of kinetic, his response to me was...

Thomas: and I'm quoting, I want to be part of this journey. How quickly?

Can you come back to show me how this works?

Thomas: And that's a pretty common reaction to our story, so I remain extremely excited about the possibilities.

Thomas: Just discussing this solution and our technology roadmaps has already contributed to expanding relationships with existing customers, it also helped us to win that competitive take-away in Asia Pacific that I just mentioned.

Thomas: So stay tuned for details regarding an official kinetic launch celebration, which we're going to do in conjunction with our 50th birthday celebration later this year.

Thomas: New logos may not be as rare in the payments as they are in the payment software segment, but they're equally nice of course, our bookings momentum continued in Q1, and our new E. R. Our bookings were up about 40% over last year's Q1.

Thomas: Overall, we're very happy with our progress and our positioning for the future.

Thomas: While the world seems fixated on the tariff and trade discussions our customers are healthy.

Thomas: Our strong start to the year has boosted our confidence in achieving our full year targets and we haven't seen any material impacts from the geopolitical uncertainty that we're all seeing at this point.

Thomas: I would anticipate a question to tell you that while we do business with several Chinese banks, our financial exposure to China is not material.

Thomas: So in this case, that's that's good news.

Thomas: We remain focused on our broader strategy, our sales execution and the development of our next generation kinetic platform.

Thomas: We started the year very strong.

Thomas: We're confident in our full year financial forecast overall, we are optimistic regarding our long term profitable growth and our ability to continue to deliver significant shareholder value.

Thomas: I'll turn it over Scott to discuss financials and our guidance Scott.

Scott Behrens: Thanks, Tom and good morning, everyone I first plan to review our financial results for the quarter and then provide our outlook for the rest of 2025.

Thomas: And approximately 853 million of total debt outstanding. This represents a net debt leverage ratio of 1.2 times, which is below our stated target of two times that we've discussed previously.

Thomas: As of today, we have repurchased approximately 1 million shares of our stock year to date for 52 million and half of 320 million remaining on our share authorization also in the quarter, we sold our non controlling interest.

Thomas: Gate to pay you India. The gain on sale was included in other income and expense on the income statement and even though we'll no longer have a minority investment in my engage we will continue our strategic partnership with them in the region as we look at our outlook for the rest of the year obviously there.

Thomas: A capital markets in recent weeks, but we're comfortable that we're fairly insulated from a lot of the macroeconomic events, meaning on the payment software side of the business. As you know these are mission critical payments systems in most of the revenue for the year is either under long term contracts or subject renewal.

Thomas: Decide the verticals, we serve are really non discretionary bill payments and as a software company, we really don't see a lot of impacts from tariffs on the supply chain.

Thomas: We're really not exposed to China, and with our low leverage and strong cash flow. We are in a tremendously flexible financial position if interest rates stay higher for longer we'll actually see a slight benefit from the moods in the U S. Dollar that we've seen so far this year.

Thomas: So with the strong start to the year in the impact of changes in FX rates, we are raising our guidance for full year revenue. We now expect revenue to be in the range of 1.69 billion to 1.72 billion and we continue to expect the.

Thomas: To be in the range of 480 million to 495 million.

Thomas: For Q2, we expect revenue to be in a range of 375 to 385 million and adjusted EBITDA to be in a range of 55 to 65 million with this guidance, we still expect approximately 46% of our full year revenue for 2020.

Thomas: Here versus the 43% weight at the first half we saw in 2024 and this is really due to the continued efforts as Tom mentioned to sign our new contracts earlier in the year.

Thomas: So in summary in Q1, we saw strong revenue growth contributing to strong EBITDA growth and margin expansion and we continue to see strong cash flow contributing to our ability to both delever and deploy capital to our share repurchase program and we.

Thomas: Two guidance.

Thomas: But before I hand, it back to Tom I want to switch now to a personal note as we look ahead I've begun to plan for my retirement I've been with a Ci now for almost 18 years during that time, we've grown the company from 370 million of revenue and.

Thomas: To our current 2025 projections of 1.7 billion of revenue and nearly 500 million a world class Finance organization.

Thomas: To ensure an orderly and well planned transition I'm announcing today that it is my plan to retire the near future during which time I will work with Tom and the board to accomplish a smooth transition the financial leadership of the company and I told Tom and on the board that I'll be here as long Nanim.

Tom Warsop: So with that I will now hand, it back to Tom for some closing remarks Tom.

Tom Warsop: Thank you very much Scott before I conclude my remarks about the quarter and the year, let me pause to offer my sincere personal thanks to Scott for all of his contributions to a ci.

Tom Warsop: Scott has been working at a C. I for nearly two decades and he's been a true partner to me his leadership and individual contributions have been a key part of our success throughout that time.

Tom Warsop: Scott's transparent approach to his decision to retire gives us the opportunity to execute the robust succession plan, we already had in place and have had in place for a long time I've already begun working on it and Scott is throughout.

Tom Warsop: I'm really pleased for Scott and his family as they enter this next phase I'll keep you informed that our progress in filling these very big shoes.

Tom Warsop: As I conclude it's an exciting time for global electronic payments changes constant and ACI is that the heart of all that excitement we power the world's payments ecosystem, and that's exactly where we want to be.

Tom Warsop: And for the Faith, you show through your ownership and support of a C. I shares operator, we can now take questions.

Speaker Change: [noise], we will now begin the question and answer session. If you would like to ask a question. If you press star followed by the number one on your telephone Keybed. If you would like to return your question Press Star One again and please limit yourself to one question and one follow up.

Speaker Change: And your and your first question comes from the line of driver Williams Whichever is driver. Please go ahead.

Driver Williams: Great. Thanks, Hey, guys, good morning, and Scott Congrats on the retirement well deserved it maybe if I could just ask the first one on the the current environment in Tom you kind of alluded to this in in your prepared remarks. It sounds like you guys aren't seeing anything yet at least.

Driver Williams: Are behaving, but maybe just based on your discussions and over the last month or two time with your customers. I mean is there any kind of waivering that you're seeing just in terms of decision, making timelines willingness to take on kind of more investment in modernization and just kind.

Driver Williams: Potentially playing out over the rest of the year just given the macro uncertainty. Thanks, yeah. So thanks, Sir and.

Speaker Change: No. It's a short answer it's it's interesting I was I was telling Scott and John I, just returned from the Middle East and spoke with many customers and the way those conversations went it was it was almost.

Speaker Change: Three in each each each instance, first you know small talk introduction second what's going on with these tariffs and and and the president and all the changes and you know how's that impacting your business. So we had a good conversation of course.

Speaker Change: Well how.

Speaker Change: Absolutely announced the answer was no. It has no impact on what we're doing in fact, they didn't say it this like they wouldn't of course, but the feeling I get is it may create a little bit more opportunity for us.

Speaker Change: Specifically, you mentioned that and that's that's a good call out because.

Speaker Change: The way that we're thinking about modernization and connected it has so many positive impacts for the customers and their customers that I think most of most of the people I'm talking to see it as a as.

Speaker Change: You know I don't I don't know exactly how big that opportunity will be and exactly when it'll come but we're not seeing negatives at this point at all and we're seeing a little bit of positive momentum. So I feel great about that and then the last point I'll make on this.

Speaker Change: I said, Scott said and we talked about this a lot, but we've been pushing to get deals closed earlier and that absolutely happened in Q1. Some of some of those deals. We expected we were able to get signed in Q1 and.

Speaker Change: So that's what we're seeing at the moment is a little bit of positive and really haven't seen negative at this point.

Speaker Change: Okay, no that that's great. It for my follow up I I wanted to ask on stable coins, it's something that we're starting to hear a lot more about especially as it relates to more cross border B to B money movement first can you just remind us within the banks business what.

Speaker Change: To cross border if at all and then secondarily is this something that's coming up at all in your discussion with your bank's customers, they're willingness to look at stable coins is kind of kind of an alternative rail for money movement, and just where a.

Speaker Change: In that discussion. Thanks, Yeah sure. So just on cross border. We we have a lot of business that facilitates I look our software in many many ways facilitates cross border payments. One example is swiped.

Speaker Change: We we handle I think at least trillions of dollars a day in in those cross border very large payments. So we do a lot with it we're.

Speaker Change: S. A the next days, the and I've probably talked about this several times, but just I I think it's very important the real time payments ecosystem in the world at the moment is almost all.

Speaker Change: Digitally in a couple of places around the world, but there's some super interesting use cases get facilitated once you start you sort of allowing and I'll come back to why I use the word specifically, allowing cross border real times.

Speaker Change: Our technology already is ready for for cross border real time, that's not the issue. The issue is the regulators have to agree on what the rules are and we've seen a little bit of that start to happen in particular so.

Speaker Change: Southward and U T I, India. So in Singapore. There are some limited examples where you can use E. P. I, which is the Indian realtime payment scheme to make payments, while you're traveling in Singapore for an Indian National. So that's one example, but we're gonna start see more of those and I'll get really interested.

Speaker Change: You asked about Sable points I do I get lots of questions and we have lots of discussion around stable coin. It's interesting. It's very interesting, there's certainly potential there but at this point certainly the bank customers, it's mostly a.

Speaker Change: What do we think might happen with stable coin is that is it gonna be a big deal enough I don't I don't know, how big how fast, but I think there's a place for sable coin now.

Speaker Change: It's not exactly responsible to your question Trevor but our software. We we have allowed a facilitated crypto payments for a long time volumes are very very very small, but it's no problem for us.

Speaker Change: We're you know, we're we're carefully and interestedly thinking about what's coming and what what might be possible I think for us it's more about making sure we.

Speaker Change: There's not we're not we're not concerned about being able to handle it facilitated it's it's more about where does the market go and so we're keeping our eye.

Speaker Change: Okay I appreciate all that thanks again guys yeah. Thanks.

Speaker Change: And your next question comes from the line of Jeff Coltwell with Sepert Research Jeff. Please go ahead.

Jeff Coltwell: Hey, Thank you very much first of all congrats Scott I'm, a job well daughter wish you the best of your retirement. Thanks.

Jeff Coltwell: Can you can you talk more to us about payment software that was over a 200 million in the quarter that was up 42%. So if you think about the overall revenue guidance. How are you thinking about that segment over the course of the remain of the year should I just explaining some of the puts and takes as far as revenue and growth expectations for that.

Jeff Coltwell: Sure. So I'll look out comments I mean, the big picture, we're pretty much in the same spot. We were gave guidance. Since you won for the full year, what really happened was and and again I think this is really good is but really happened.

Jeff Coltwell: Quite a bit more of that net new in Q1 than we originally thought we would and so if you look at the first half the guidance. We provide is basically right on where we where we expected to be and so what happen is we were able to shift.

Jeff Coltwell: Those those net resignings into Q1, which is a great thing from my perspective, I Hope I hope you see it that way too we did sign some of the renewals early also but that didn't affect anything because of the way the accountings work. So.

Jeff Coltwell: To call at 7% to 9% constant currency revenue growth and that's in in total plus Bill. If you look at Q1 year over year revenue growth the recurring base of the business that was up 8% in Q1.

Jeff Coltwell: Range Q2's lining up with very similar so that kind of solid predictable revise of recurring revenue is lining up in that you know, 8% range and then where you're gonna have some variability on some of these these bank license.

Speaker Change: [noise] Okay, great. Thank you and then as a follow up during the quarter, you announced a partnership with Ingo payments and speed pay that was around digital disbursements can you maybe talk about that frame that for us help us understand what you're doing strategically and how we might see.

Speaker Change: Filler slash speed, Bob I wish, we think about yourself doing partnerships with Ingo I, maybe read some other so also what's the right way to be thinking about billers growth from here users about that segment given all the changes in macro one of the ask what your thoughts are there for the segment. Thanks, Yeah. So couple.

Speaker Change: Let me start with the second question first so biller, we feel we feel just as good as I made a little bit better about biller now than we did a year.

Speaker Change: We've talked about the the IRS moving from three providers to two us being one of the two so the numbers aren't fully in yet from the from the tax season, but we're we're cautiously optimistic there.

Speaker Change: And just as a reminder, most of the bill payment that we facilitate significant majority of that is non discretionary. So we're it's your car payment. Your your tuition Bill your electric Bill.

Speaker Change: Better.

Speaker Change: You you got to pay those bills and so we're not expecting big certainly not a second big negative impact from from some of this uncertainty.

Speaker Change: Yeah, so be fifth puts and takes but we're not seeing we're not seeing negative impacts and again. It causes me optimistic on the on the I R. S and tax in general. So that's we're feeling we're feeling good about it no no change in our view for you forward.

Speaker Change: So that's that's that piece and then you asked about Angie payments in particular, and let me. Let me just talk about that let me talk about disbursements. We're hopefully it's clear we're really good at the bill payment part so.

Speaker Change: Our customers. The the next big opportunity is disbursements and I give you one quite interesting I used for several years I ran workers compensation Andor healthcare third.

Speaker Change: And the biggest headache that I had was how to efficiently and effectively disperse claim payments to healthcare providers. So this is only one these days, but that was really hard to do it was expensive it was painful and so.

Speaker Change: By partnering to allow the dis.

Speaker Change: That business now is all it's it's a money movement business instead of a bill payment business and that that kind of a lot of incremental opportunity. It's much more interesting the value propositions are much more robust. So that's why we're doing this.

Speaker Change: Small it's a small.

Jeff Coltwell: Great. Thanks, very much yes. Some results. Thank you Jeff.

Speaker Change: And your next question comes from the line of Peter Hackman with D. A Davidson Peter Please go ahead.

Peter Hackman: Hey, good morning, Thanks for taking my questions I wanted to have a few questions, but but on the recent merger divestiture.

Speaker Change: Within merchant acquiring and issuer business of global payments and and FIS.

Peter Hackman: How do you think a C I shakes out there.

Peter Hackman: Something where customers on both sides, who don't envision to change or could there be something that changes there based on the change of ownership of those two businesses.

Peter Hackman: Yeah, I mean it we're it's obviously early days and that we don't we don't have any special insight into how they're thinking about that business going forward, but you're both very good.

Peter Hackman: Yes, we've strong relationships with both of them. So I think.

Peter Hackman: You know again too early to say, but we're actually excited I'm personally excited about as they figured out US trying you know, we're gonna try and be a partner to them. We got how they how can we help them bring the pieces together and.

Speaker Change: Richard Grove I don't you know I don't have anything specific for you at the moment, because we literally haven't spoken to them about it I think there's still they're still getting their feet under the desk. After the announcements and I don't have any specific for you but.

Speaker Change: It's I think it's a good opportunity for us to really show, how we partnering a customer with two customers. Okay. Okay. And then it looks like we're shaking up shaking up to him about 45% of revenue in 2025 in the first half.

Speaker Change: And and.

Speaker Change: Little bit more front end loaded than normal in terms of thinking about the back half and that 55% would you expect maybe 25% revenue in the third quarter and 32% in the fourth or.

Speaker Change: Yeah, I think that'd be yeah, I think that'd be here that goes back to my previous comment if you look at how that model that underlying base.

Speaker Change: At Q4's always a little bit heavier, but excuse me, so I could say that mix for second half.

Speaker Change: February Okay, Okay, Great and then if you if you hear me just on kinetic you know sounds like we're making some nice progress, there and and but but like what milestones should be thinking about this year in terms of you know kind of you know.

Speaker Change: And and and then when do you think you actually start to see some customers go live.

Speaker Change: First customers go live and in a GA version.

Speaker Change: Yeah, so well in terms of I I don't I don't know the exact number people we've already given.

Speaker Change: Our sales people to be out there selling I I call. It sales by Powerpoint you know they're involved seeing this unsure where it's really easy to show somebody a really cool technology. If it's not real and then Powerpoint, we didn't I didn't want to do that we did not.

Speaker Change: We did not get any any demos, we we talked generally about kinetics, we were calling Connecticut in the beginning but we talked generally about it both of you know expect expect more we now at the end of last year as planned we had our.

Speaker Change: Super robust working demos. It's we we can actually show show what look like absolutely real transactions with with test data, that's robust and looks looks like the data they expect.

Speaker Change: Since I think the beginning of December last year on at the end of April as planned we released version 1.0.

Speaker Change: Which is I actually think we quoted it a little differently I think it's 0.1 or something like that but anyway. The first version that could be deployed and so we're using that using that now as the basis of our of our demo so.

Speaker Change: We're gonna have a lot of demos this year I don't know exactly how many we've given I don't know exactly how many we're gonna give this year, but there's a tremendous to me to see more to understand how it works, let's play with it with real you know our real data I get this question alive.

Speaker Change: You you asked about first live customers my expectation I don't know exactly it depends but I think it will be early next year, though have fly, but we're gonna we're gonna I'm absolutely confident we'll have we'll have some sales occur.

Speaker Change: So probably late this year and really the the the interesting thing is we got a lot of demand a lot of people pulling on wanting to be one of those data customers and we're trying to be very thoughtful about which customers are are the right ones to be those data customers that's really what.

Speaker Change: Then each quarter will talk about that in time, we're progressing but we're we're achieving the milestones that we set out so demo late last year.

Speaker Change: Version end of April we we've achieved both of those milestones and we expect to continue achieving those great great well, that's good to hear I'll get back in the queue. I. Appreciate your time, thanks a lot.

Speaker Change: And your next question comes from the line of George Sutton with Creek Halem Capital George. Please go ahead.

Speaker Change: Hey, good morning, guys Logan on for George and congrats on another nice quarter here, maybe to start Tom you called out an increase in the pipeline opportunity as a result of the now combined bank and merchant segments can you just maybe give us any more details on what you mean by that.

Speaker Change: Any benefits you've seen in the go to market motion there sure. So.

Speaker Change: I'll give you an example, I'm gonna give you a generic deal was was traveling in well. This is the middle east as well I make two trips to the middle East in the last six weeks, it's a interesting.

Speaker Change: But what we're what I was talking to I was going to do a very big bank that has a big set of customers that are are large merchants and to historically, we've approached bank customers and bank value.

Speaker Change: Almost completely independently from those merchant opportunities and I'll give you a specific it was it's about fraud and so we had a great variety solutions, but we've tended to create value positions that are specifically aimed at a bank or specifically in.

Speaker Change: This conversation with the with a bank, whose customers are mostly big merchants and they were they were really interested in how we package.

Speaker Change: Our fraud solutions, so that the bank gets the benefit and you know they have specific needs and then they can also use those same basic tools and same approaches to help their merchant customers get better fraud detectio.

Speaker Change: Into what's happening with the with transactions and so [noise] because we've now combined those businesses in that I have one.

Speaker Change: Okay customer success manager. So that's like an account manager that's recall account manager we have one for both the merchant opportunity in the bank opportunity calling on this customer.

Speaker Change: We were able to have a much more comprehensive discussion about the opportunity and so that turned into a pipeline opportunity sitting in our sales force pipeline now and I think in the past that we wouldn't be.

Speaker Change: Maybe we would have had a bank opportunity maybe we would have a merchant opportunity, but this combined thing we wouldn't have had that yet so we might've got an invention. So that's that's a specific example of that but I think the the big the Big thing is we now.

Speaker Change: Screen, our our sales team and our account management team across all of the solutions and payment stock and so now they can have much more robust conversations with customers across all of those products and services and.

Speaker Change: Let me let me bring in one of my colleagues to talk about this other thing we're not having to do that as much. So that that's that's the there's a little bit of an efficiency thing and the last thing I was talking about and what that's leading to is incremental difference.

Speaker Change: Got it appreciate the detail maybe just a quick follow up I was too able to see the numbers when the queue comes out but can you just give us a sense for what the contribution was from real time payments. This quarter and then maybe just broadly kind of.

Speaker Change: How should we think about like the cadence of that revenue I mean, I look at it being I think kind of flat last year relative to fiscal 23, and it feels like that doesn't really represent the true momentum. There. So maybe just kind of help us square that and how we should think about that going forward.

Speaker Change: And it it's called 10% of the overall business and it's gonna grow at double digits. So you're gonna have your based on the timing of the renewals, but if you look at over the course of the year it'll still be.

Speaker Change: N N fraud detection are still gonna be our highest growing segments, both double digit growers over the near.

Speaker Change: Okay got it thanks for taking my questions. Thank you.

Alex Newman: And your final question comes from the line of Alex Newman with Stephens Alex. Please go ahead.

Alex Newman: Morning, Thanks for taking my question just to start off could you discuss where you're seeing traction in different product areas that led to some of the higher net new business this quarter.

Alex Newman: Yeah sure. So a lot of it came from our issue with acquiring solutions, which you know those are those are flagship solutions for us. They are they are absolutely proven technology Cadillac solution or MIT, our clients used to make someb.

Alex Newman: It's really interesting is and if I use that Asia Pacific competitive takeaway that new as the example, we we won that deal for two reasons and we're obviously connected but there.

Alex Newman: Here's a customer that needed a better a better issue and acquiring solution right now.

Alex Newman: N. They they were one of the few very large fans in the world that don't use our base 24 platform and they they wanted to use it it was sort of a historical reason I didn't know all reasons, but they they didn't use it for and they really.

Alex Newman: They knew it was a great solution they were interested but they you know they never decided to to make the effort to switch but then.

Alex Newman: Piece number two happened and I had the first conversation, but smarter people than me followed up and helps this bank understand the journey that we can allow them to make to modernize their payments you.

Alex Newman: L L and so we were able to show them. We can solve your problem right now with the best solution in the market and we allow you to show your board. Your your staff holders of all kinds that you have a very clear clear.

Speaker Change: Four risk.

Speaker Change: Absolutely rational cat to get from where you are to where you wanna be cloud cloud native rapid scalability vertical horizontal all the things that that were able to deliver and so that account.

Speaker Change: So the.

Speaker Change: That that is what is getting prospective customers and or current customers really interested in exploring opportunities going forward.

Speaker Change: Okay makes sense and then what if for one Q what was the uplift on biller this quarter from the reduction vendors for IRS processing and then what are your expectations for FX on growth for 25.

Speaker Change: Biller's total revenue grew 11% in the quarter and we don't describe or we don't call out what any particular customer delivers but it was obviously a contributor to the Q1 grow.

Speaker Change: Further a little bit more in Q2, but that was obviously contributor not just through the IRS, but through our partners that we do bill pay for a tax Corporation software. So I would say, it's more broadly that's the IRS, but our tax part.

Speaker Change: Really.

Speaker Change: Publish what we get from an infinitely contributed to the uptick.

Speaker Change: On the full year of FX, we're probably talk it's gonna give us.

Speaker Change: It's gonna be call it 5 million.

Speaker Change: Great. Thank you taking my questions great. Thanks.

Speaker Change: There's no further question at this time I will now turn the call back to the company.

Speaker Change: Okay well. Thank you first of all thanks for joining US again, and we appreciate the support look forward to continuing to deliver for our shareholders and delivering more and more shareholder value and the very the last thing I want to say is I want to.

Speaker Change: Intense personal thanks to Scott because he has been as I said he's been an amazing partner to me I've known Scott now for about 10 years in multiple ways. You know, we've interacted in multiple ways and each one of those.

Speaker Change: Super positive experience for me and I hope it has for him and after nearly a few decades of service he absolutely deserves to to enter the next days and great great for him great for his family, we'll obviously miss him.

Speaker Change: You said very clear, it's gonna be tremendously support to us since we as we find find his replacement I don't know if replacement is in the right way, but the next CFO of H I and we're well underway in that process and as I said, we'll keep you keep you today, but.

Speaker Change: Thanks, everybody for joining.

Speaker Change: That concludes today's call. Thank you all for joining you may now disconnect. Please wait the conference will begin shortly.