ACI Worldwide, Inc.

Thank you, and good morning, everyone. 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 the first and final pages of our presentation deck today, a copy of which is available on our website as well as with the SEC. On this morning's call is Ocalan Almeida, our president and CEO, and Scott Behrens, our CFO. With that, I'd like to turn the call over to Ocalan.

Thank you, John. Hello, everyone, and thank you for joining our call. When we discussed our preliminary 2020 results in January, I shared my excitement about our strong performance and reinforced my confidence in the significant value creation potential of ACI. Today, we'll provide you with a more detailed update on the 2020 results, 2021 outlook, and growth initiatives. Let me start by providing some additional color on our financial results for 2020. Our laser focus on rationalizing costs and maximizing profitability has driven significant year-over-year EBITDA growth and net margin improvements, even against the backdrop of COVID-19. We are also pleased to be reaffirming the outlook we provided previously, including the Rule 40 for the first time ever in 2021. In 2020, our revenue grew 3% in a business environment highly affected by the pandemic, Our adjusted BTDA grew 17%, and our net adjusted BTDA margin grew more than 450 base points, which shows our focus on shareholder value creation. Further, our consolidated new bookings grew 36%, and in particular, under Yves Aritakis' management, our demand segment bookings more than doubled. These results position the company extremely well to achieve our organic growth goals in the coming years. Turning to our strategic initiatives, we have made excellent headway advancing the Fit for Growth, Focus on Growth, and Step Change Value Creation initiatives we announced in November. On January 1, we launched our Fit for Growth organizational plan to become a more nimble and agile company. we have successfully flattened our organizational structure and centralized sales. We are excited about the benefits of this new structure and we are already seeing positive results, including faster decision-making and increased responsiveness to our customers. We look forward to continuing to drive efficiency, productivity, and customer responsiveness through this flatter, leaner model. As part of our Focus on Growth initiative, We have been targeting our investment span on high-growth product areas, such as real-time payments, e-commerce with large, sophisticated global merchants, and fast-growing emerging markets. We are on track to meet our goal of increasing sales and market investment by 25% and increasing the number of sales associates by 35% in 2021. And we already deliver improved results demonstrated by our recent bookings wins across the globe with both new customers and contract renewals from existing customers. Notable Q4 deals for our issuing and acquiring solutions include the top UK retail bank and the leading Japanese international payments brand. In immersion and e-commerce, we expanded our relationship with a leading European retailer and pharmacy chain. and one of the largest global furniture conglomerates. In the building space, we signed many new customers, including a large U.S. financial services and insurance company and a leading U.S. auto finance company. In Latin America, we also had an important real-time payment win as a result of our new partnership with MasterCard. It was our first one through our MasterCard alliance, and it happened in Peru. Finally, under our third pillar of the strategic plan, we continue to sharpen our focus by evaluating and pursuing opportunities for accurate transactions, and we will undertake a complete review of our business portfolio to maximize HCI's growth profile and deliver transformational long-term value to our shareholders. I am incredibly proud of the work we are doing. And I am confident that the new foundation we have built for ACI will empower us to deliver continuous profitable organic growth and stamp change value creation through M&A. With our strong fourth quarter performance and our continued momentum, I am confident that 2021 will be an important milestone year for ACI. In summary, we expect to achieve for the first time ever the Rule of 40 in 2021 And in parallel, we are actively looking into investments and divesters to maximize our growth profile and deliver transformational value to our shareholders. Before I turn the call over to Scott to discuss the financials, I'd like to briefly touch on an announcement we made today. Pursuant to an agreement we reached with one of our shareholders, Starboard Value, our nominating and corporate governance committee will work with Starboard to identify two new independent directors to be appointed to the HCI board in March 2021. This announcement builds on our board's track record of refreshment following the appointment of two additional independent directors over the past two years. We are pleased to have reached this agreement and expect these new directors will offer fresh and valued perspectives as we continue our efforts to maximize profitability and create significant shareholder value. With that, I will turn it over to Scott to discuss the foundations. Scott?

Thanks, Ocalan, and good morning, everyone. I first plan to go through our financial results for 2020 and then provide some additional commentary regarding our outlook for 2021. We will then open the line for questions. For the full year 2020, total bookings were up 21%, while new bookings were up 36% compared to 2019. New bookings in our on-demand business more than doubled over last year, while new bookings in our on-premise licensed software business declined, primarily due to COVID-related delays. purchasing decisions by our bank customers, which impacted significantly our license fee revenues. 2020 revenue was $1.29 billion, up 3% from 2019, largely due to having a full year of speed pay results offset by declines in non-recurring license fee revenue. Recurring revenue grew 10%, significantly above total company revenue growth, and now represents 76% of total revenue in 2020, up from 71% in 2019. Revenue from our on-premise business was down 9% in 2020 due to lower non-recurring license revenue from new sales, primarily resulting from COVID-related purchasing delays As you know, our products are mission critical, so it didn't impact our existing customer renewals, meaning we are not losing customers, but it did impact license revenue from new sales, in particular from our bank customers. Revenue from our on-demand business was up 13% in 2020, primarily due to the contribution from SpeedPay. In addition, On an organic basis, we saw higher e-commerce volumes and omnichannel merchant payments helping offset COVID-related slowing of certain verticals in our biller solution. Obviously, in 2020, we had little control over the macro-related headwinds impacting the purchasing behaviors of our bank customers and transaction volumes in our biller business, but we were laser-focused on the areas we could control, including profitability and liquidity. Our efforts to improve our operational discipline helped generate significant profitability growth in 2020, with adjusted EBITDA of $359 million, up 17% from 2019. Consolidated, not adjusted EBITDA margin expanded to 37%, up from 33% in 2019. And it's important to note that this growth is not just a result of the incremental speed pay contribution, as EBITDA also grew on an organic basis. We saw significant profitability improvement in our on-demand business from 19% in 2019 to 34% in 2020. We are very pleased with our profitability improvements in our on-demand business. And even with the revenue decline in our on-premise business, our cost control efforts were able to maintain our 55% margins in 2020, which were in line with 2019. Our EBITDA growth contributed to strong cash flow growth in 2020, with cash flow from operating activities of $336 million up more than double from 2019. And we ended the year with significant liquidity, including $165 million in cash and $444 million available on our revolver. During the year, we paid down $223 million in debt and repurchased 1 million shares of our stock for $29 million. We ended the year with 1.2 billion of debt, representing a net debt leverage ratio of 2.8 times. And finally, turning to our outlook for 2021, while we currently expect COVID-19 related headwinds to persist through the first half of 2021, we expect growth to accelerate to the mid single digits in the second half of the year. For the full year 2021, we expect adjusted EBITDA to be in a range of 375 to 385 million. which assumes net adjusted EBITDA margin expansion. This excludes one-time costs related to cost reduction initiatives we discussed at our analyst day in November. For Q1 2021, we expect revenue to be in a range of 270 to 280 million and adjusted EBITDA to be in a range of 25 to 35 million. So with that, I will now pass it back over to Ocalan for some closing comments. Ocalan?