ACI Worldwide , Inc. (NASDAQ:ACIW), a leader in prepackaged software services, has announced the departure of Chief Product Officer Debbie Guerra. According to a recent SEC filing, Guerra will be leaving her position effective August 12, 2024. Scotty Perkins, currently Head of Product Management Innovation and Modernization, will assume the role of interim Chief Product Officer as the company searches for a permanent successor.
The announcement made on Thursday marks a significant change in the company's leadership team. Guerra's resignation and the transition to an interim CPO could signal a shift in product strategy or management approach for ACI Worldwide. The company, headquartered in Elkhorn, Nebraska, has not provided specific reasons for Guerra's departure or details on the search for a new Chief Product Officer.
ACI Worldwide, with a history of rebranding from its former name, Transaction Systems Architects Inc., has been a major player in the software services sector, classified under the Standard Industrial Classification code 7372. The company's fiscal year ends on December 31, and it is incorporated in Delaware.
The news of Guerra's resignation and the appointment of an interim CPO comes directly from the company's filings with the SEC, ensuring transparency and adherence to regulatory requirements. Investors and stakeholders in ACI Worldwide will be watching closely as the company navigates this leadership transition and continues its operations in the competitive software services industry.
In other recent news, ACI Worldwide has announced a stock buyback program worth $400 million, including the $65 million remaining from its previous authorization. The buyback program, which does not have an expiration date, will be conducted either on the open market or through privately negotiated transactions.
In its first quarter of 2024, ACI Worldwide reported a 9% increase in total revenue, amounting to $316 million. The company's bank segment saw a significant 20% increase in revenue, while the merchant and biller segments reported revenue growth of 3% and 5% respectively. Following these strong results, ACI Worldwide revised its full-year 2024 guidance upwards, expecting revenue to fall between $1.547 billion and $1.581 billion, and adjusted EBITDA to range from $418 million to $433 million.
In response to ACI Worldwide's robust performance, DA Davidson maintained a Buy rating on the company's stock and raised its price target from $36.00 to $42.00. The firm's analysts noted the company's strong first-quarter achievements, with revenue and adjusted EBITDA exceeding their forecasts. These recent developments, including the planned stock buyback and the strong Q1 performance, underline ACI Worldwide's ongoing commitment to delivering value to its investors.
InvestingPro Insights
In light of recent leadership changes at ACI Worldwide, Inc. (NASDAQ:ACIW), investors may be seeking additional context to assess the company's performance and potential future direction. According to InvestingPro data, ACI Worldwide boasts a market capitalization of $4.48 billion, and as of the last twelve months leading up to Q1 2024, the company has seen a revenue growth of 6.51%. This indicates a steady upward trend in the company's financial performance. Additionally, the stock has experienced significant price appreciation, with a one-year total return of 74.69%, trading near its 52-week high at 98.65% of the peak price.
An InvestingPro Tip suggests that ACI Worldwide's stock is currently in overbought territory based on the Relative Strength Index (RSI), which could be of interest to investors considering the timing of their investments. Furthermore, the company's low PEG ratio of 0.5 during the same period suggests that the stock is trading at a potentially attractive price relative to its earnings growth. For those looking to delve deeper into the company's financials and future prospects, InvestingPro offers additional tips and insights. There are 11 more InvestingPro Tips available, which could provide valuable information for making informed investment decisions. Investors can access these tips and take advantage of a special offer using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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