ACI Worldwide, Inc. (NASDAQ:ACIW) Q1 2023 Earnings Conference Call May 4, 2023 8:30 AM ET

Company Participants

John Kraft - SVP of Finance and Strategy

Tom Warsop - Interim President and CEO

Scott Behrens - CFO

Conference Call Participants

Peter Heckmann - D.A. Davidson

Will Johnston - Canaccord Genuity

Samuel Salvas - Needham & Company

Operator

Good morning. My name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the ACI Worldwide, Inc. First Quarter 2023 Financial Results Conference Call. [Operator Instructions]

At this time, I would like to turn the conference over to John Kraft. Please go ahead.

John Kraft

Thank you, and good morning, everyone. On today's call, we will discuss the company's first quarter 2023 results and financial outlook for the rest of the year. We will take your questions at the end. The slides accompanying this call and webcast 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 forward-looking statements like all of our events. You can find the full text of both statements on the first and final pages of our presentation deck, a copy of which is available on our website and with the SEC.

On this morning's call is Tom Warsop, our Interim President and CEO; and Scott Behrens, our CFO.

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

Tom Warsop

Thanks, John. Good morning, and thank you all for joining our first quarter 2023 earnings conference call. I'll start this morning with some brief comments on the quarter, and then I'll hand it over to Scott to discuss the detailed financials and our outlook for Q2 and the remainder of the year. We'll then open the line for questions.

We delivered first quarter results that were consistent with our expectations and reflect our team's strong execution despite an uncertain economic environment. Total recurring revenue grew 9%, driven by the growth in Biller and Bank segments, while consolidated revenue was $290 million, down 5% year-over-year, and that was due mainly to the timing of license-based renewals as we discussed last call.

Both growth rates are adjusted for foreign exchange impact and the corporate online banking business divestiture. Total adjusted EBITDA was $25 million, down 59%. As you may recall, these license renewals tend to be extremely high margin. New ARR bookings for the quarter were $11 million. When looking at the new ARR bookings on a trailing 12 months basis, which is how I like to look at it, this removes some of the quarterly fluctuations. Trailing 12-month ARR as of Q1 was $100 million, which is up 8% compared to the same metric from March 2022.