ACI Worldwide, Inc. (NASDAQ: ACIW) reported Q2 EPS of ($0.13), $0.03 worse than the analyst estimate of ($0.10). Revenue for the quarter came in at $235 million versus the consensus estimate of $233.1 million.

HIGHLIGHTS

• Cash flows from operating activities of $26 million, up from $13 million in Q2 2017
• Repurchased 1 million shares for $23 million
• Reiterating full year 2018 guidance

“ACI signed several exciting contracts in the quarter, including the largest credit card company in Japan, a top US grocery chain, and 14 Immediate Payments deals. New bookings so far in 2018 are up 52% over the first half of 2017 and the pipeline remains substantial,” commented Phil Heasley, President and CEO, ACI Worldwide. “Financial results in Q2 were in line with our expectations and we remain confident in achieving our full year guidance.”

REITERATING GUIDANCE

The company expects the adoption of ASC 606 to impact the timing and amount of revenue recognition for its on-premise licensing arrangements. The company does not expect the adoption of ASC 606 to have a significant impact on its other revenue streams or cash flows from operations. The company has provided its full year and second quarter outlook under both ASC 606 and ASC 605 in order to provide additional transparency. The company will continue to provide actual results under both ASC 606 and ASC 605 throughout 2018.

For the full year 2018 under ASC 606, the company expects revenue to be between $1.03 billion and $1.055 billion and adjusted EBITDA to be in a range of $255 million to $270 million, which excludes approximately $7 million in significant transaction-related expenses. We expect between $230 million and $240 million of revenue under ASC 606 in the third quarter.

For the full year 2018 under ASC 605, the company expects revenue to be between $1.05 billion and $1.075 billion, which represents 3-5% growth over 2017 on a comparable GAAP basis. Adjusted EBITDA is expected to be in a range of $270 million to $285 million, which excludes approximately $7 million in significant transaction-related expenses. We expect between $235 million and $245 million of revenue under ASC 605 in the third quarter. We expect full year 2018 new bookings growth to be in the low double digits.

For earnings history and earnings-related data on ACI Worldwide, Inc. (ACIW) click here.