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Segment Information
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company reports financial performance based on its operating segments, Banks, Merchants, and Billers, and analyzes Segment Adjusted EBITDA as a measure of segment profitability.

The Company’s Chief Executive Officer is also the chief operating decision maker ("CODM"). The CODM, together with other senior management personnel, focus their review on consolidated financial information and the allocation of resources based on operating results, including revenues and Segment Adjusted EBITDA, for each segment, separate from corporate operations. No operating segments have been aggregated to form the reportable segments.

Banks. ACI provides payment solutions to large and mid-size banks globally for retail banking, real time, digital, and other payment services. These solutions transform banks’ complex payment environments to speed time to market, reduce costs, and deliver a consistent experience to customers across channels while enabling them to prevent and rapidly react to fraudulent activity. In addition, they enable banks to meet the requirements of different real-time payments schemes and to quickly create differentiated products to meet consumer, business, and merchant demands.

Merchants. ACI’s support of merchants globally includes Tier 1 and Tier 2 merchants, online-only merchants and the payment service providers, independent selling organizations, value-added resellers, and acquirers who service them. These customers operate in a variety of verticals, including general merchandise, grocery, hospitality, dining, transportation, and others. The Company's solutions provide merchants with a secure, omni-channel payments platform that gives them independence from third-party payment providers. They also offer secure solutions to online-only merchants that provide consumers with a convenient and seamless way to shop.

Billers. Within the billers segment, ACI provides electronic bill presentment and payment (“EBPP”) services to companies operating in the consumer finance, insurance, healthcare, higher education, utility, government, and mortgage categories. The solutions enable these customers to support a wide range of payment options and provide a convenient consumer payments experience that drives consumer loyalty and increases revenue.
Revenue is attributed to the reportable segments based upon customer. Expenses are attributed to the reportable segments in one of three methods: (1) direct costs of the segment, (2) labor costs that can be attributed based upon time tracking for individual projects, or (3) costs that are allocated. Allocated costs are generally marketing and sales related activities.

Segment Adjusted EBITDA is the measure reported to the CODM for purposes of making decisions on allocating resources and assessing the performance of the Company’s segments, and, therefore, Segment Adjusted EBITDA is presented in conformity with ASC 280, Segment Reporting. Segment Adjusted EBITDA is defined as earnings (loss) from operations before interest, income tax expense (benefit), depreciation and amortization (“EBITDA”) adjusted to exclude net other income (expense).

Corporate and unallocated expenses includes global facilities and information technology costs and long-term product roadmap expenses in addition to corporate overhead costs that are not allocated to reportable segments. The overhead costs relate to human resources, finance, legal, accounting, and merger and acquisition activity. These costs along with depreciation and amortization and stock-based compensation are not considered when management evaluates segment performance.

The following is selected financial data for the Company’s reportable segments for the periods indicated (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Revenue
Banks$222,031 $155,684 $471,109 $361,231 
Merchants50,120 36,267 123,865 107,556 
Billers179,601 171,064 546,276 507,229 
Total revenue$451,752 $363,015 $1,141,250 $976,016 
Segment Adjusted EBITDA
Banks$153,944 $91,010 $274,794 $167,313 
Merchants26,711 10,296 52,737 26,751 
Billers30,920 39,186 99,092 100,056 
Depreciation and amortization(31,515)(30,463)(86,710)(93,438)
Stock-based compensation expense(11,346)(6,822)(30,165)(17,537)
Corporate and unallocated expenses(46,128)(41,283)(123,901)(135,053)
Interest, net(14,485)(16,345)(44,004)(48,183)
Other, net(823)1,084 (1,692)(6,403)
Income (loss) before income taxes$107,278 $46,663 $140,151 $(6,494)

Assets are not allocated to segments, and the Company’s CODM does not evaluate operating segments using discrete asset information.
The following is revenue by primary solution category for the Company’s reportable segments for the periods indicated (in thousands):
Three Months Ended September 30, 2024
BanksMerchantsBillersTotal
Primary Solution Categories
Bill Payments$— $— $179,601 $179,601 
Merchant Payments— 50,120 — 50,120 
Fraud Management18,451 — — 18,451 
Real-Time Payments45,376 — — 45,376 
Issuing and Acquiring158,204 — — 158,204 
Total$222,031 $50,120 $179,601 $451,752 
Three Months Ended September 30, 2023
BanksMerchantsBillersTotal
Primary Solution Categories
Bill Payments$— $— $171,064 $171,064 
Merchant Payments— 36,267 — 36,267 
Fraud Management16,543 — — 16,543 
Real-Time Payments26,374 — — 26,374 
Issuing and Acquiring112,767 — — 112,767 
Total$155,684 $36,267 $171,064 $363,015 
Nine Months Ended September 30, 2024
BanksMerchantsBillersTotal
Primary Solution Categories
Bill Payments$— $— $546,276 $546,276 
Merchant Payments— 123,865 — 123,865 
Fraud Management39,145 — — 39,145 
Real-Time Payments96,553 — — 96,553 
Issuing and Acquiring335,411 — — 335,411 
Total$471,109 $123,865 $546,276 $1,141,250 
Nine Months Ended September 30, 2023
BanksMerchantsBillersTotal
Primary Solution Categories
Bill Payments$— $— $507,229 $507,229 
Merchant Payments— 107,556 — 107,556 
Fraud Management38,051 — — 38,051 
Real-Time Payments72,271 — — 72,271 
Issuing and Acquiring250,909 — — 250,909 
Total$361,231 $107,556 $507,229 $976,016 
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Banks
Software as a service and platform as a service$11,697 $10,167 $33,924 $29,158 
License143,338 77,779 235,357 136,980 
Maintenance43,916 48,084 133,215 142,050 
Services23,080 19,654 68,613 53,043 
Total$222,031 $155,684 $471,109 $361,231 
Merchants
Software as a service and platform as a service$32,069 $30,162 $94,298 $89,660 
License14,091 1,900 17,627 5,701 
Maintenance3,643 3,834 10,831 11,314 
Services317 371 1,109 881 
Total$50,120 $36,267 $123,865 $107,556 
Billers
Software as a service and platform as a service$179,601 $171,040 $546,276 $507,157 
License— — — — 
Maintenance— 24 — 72 
Services— — — — 
Total$179,601 $171,064 $546,276 $507,229 

The following is the Company's revenue by geographic location for the periods indicated (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Revenue
United States$241,054 $226,911 $698,704 $633,379 
Other210,698 136,104 442,546 342,637 
Total$451,752 $363,015 $1,141,250 $976,016 

The following is the Company’s long-lived assets by geographic location for the periods indicated (in thousands):
September 30, 2024December 31, 2023
Long-lived Assets
United States$1,155,409 $1,216,158 
Other787,302 763,437 
Total$1,942,711 $1,979,595 

No single customer accounted for more than 10% of the Company's consolidated revenue during the three and nine months ended September 30, 2024 and 2023. The United Kingdom accounted for 12.0% of the Company's consolidated revenues during the three months ended September 30, 2024. No other country outside the United States accounted for more than 10% of the Company's consolidated revenues during the three months ended September 30, 2023 and nine months ended September 30, 2024 and 2023.