ACI Worldwide, Inc. (NASDAQ:ACIW) Q3 2019 Earnings Conference Call Transcript
Nov 07, 2019 • 08:30 am ET
Ladies and gentlemen, thank you for standing by and welcome to the ACI Worldwide Q3 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions]
Thank you. I would now like to hand the conference over to your speaker today, Mr. John Kraft. Please go ahead, sir.
Thank you, Patricia, and good morning, everybody. Today's call like all of our events is subject to both Safe Harbor and forward-looking statements. You can find the full text of both statements on our website as well as with the SEC.
On this morning's call is our CEO, Phil Heasley; our CFO, Scott Behrens; and we also have Craig Saks, our COO.
Before we begin, I'd like to let everybody know that ACI will be attending Citi's 2019 Financial Technology Conference in New York next Tuesday and Wednesday, November 12th and 13th. We will also be attending Stephens' 2019 Nashville Investment Conference in Nashville next Thursday, November 14th. In addition, we will be hosting our own ACI Analyst Days both in New York and in London on Tuesday, November 19th and Thursday November 21.
With that, I'd like to turn it over to Phil.
Philip G. Heasley
Yeah. Thank you, John, and thank you, everyone, for joining today's call. I'm pleased to report that quarter three was a strong quarter for ACI as the digital transformation of payments accelerates around the globe. ACI's vision of Any Payment, Every Possibility continues to resonate with the market. We are growing our business organically across our two P&Ls. The acquisition of Speedpay, which closed in May further propelled our results, bringing notable improvement in profitability and scale to our ACI On Demand platform. In addition, one of our delayed contracts from 2018 closed in quarter three with the major renewal and expansion, validating ACI's important role in the new payments' ecosystem. We fully expect another one of these deals to close in the fourth quarter. Also notable in the quarter, we have partnered with Microsoft and secured two significant acquirer clients running retail payments solution in the cloud on Azure, following the successful proof of concepts. One client will go live next week and the other will follow shortly. In addition, our development of sandbox in Azure is also gaining traction as a way for our customers to build and test new solutions via our APIs.
As John mentioned, Craig Saks, ACI's Chief Operating Officer is also with us today, and I'm going to have him spend the next few minutes providing additional commentary on the quarter and sharing a sampling of Q3 wins, which demonstrates ACI's momentum within our bank intermediary, merchant and corporate customer segments. Craig will then turn over the call to Scott to cover the details of our Q3 financials. Craig?
Thank you very much, Phil, and good morning, everyone. So I'll start with our ACI On Demand business. As Phil mentioned, we continue to grow organically and then layered on the Speedpay acquisition which has bought improved scale and profitability