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Segment Information
 6 Months Ended
Jun. 30, 2023
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 the 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 June 30,Six Months Ended June 30,
2023202220232022
Revenue
Banks$117,507 $141,946 $205,547 $274,144 
Merchants36,508 36,534 71,289 77,536 
Billers169,310 161,945 336,165 311,825 
Total revenue$323,325 $340,425 $613,001 $663,505 
Segment Adjusted EBITDA
Banks$51,622 $70,160 $76,303 $134,874 
Merchants9,911 7,749 16,455 22,462 
Billers31,229 28,324 60,870 54,681 
Depreciation and amortization(31,436)(32,240)(62,975)(63,729)
Stock-based compensation expense(5,414)(6,800)(10,715)(14,758)
Corporate and unallocated expenses(45,392)(42,736)(93,770)(81,407)
Interest, net(16,451)(8,733)(31,838)(16,468)
Other, net(4,092)2,006 (7,487)4,256 
Income (loss) before income taxes$(10,023)$17,730 $(53,157)$39,911 

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 June 30, 2023
BanksMerchantsBillersTotal
Primary Solution Categories
Bill Payments$— $— $169,310 $169,310 
Digital Business Banking742 — — 742 
Merchant Payments— 36,508 — 36,508 
Fraud Management12,153 — — 12,153 
Real-Time Payments26,499 — — 26,499 
Issuing and Acquiring78,113 — — 78,113 
Total$117,507 $36,508 $169,310 $323,325 
Three Months Ended June 30, 2022
BanksMerchantsBillersTotal
Primary Solution Categories
Bill Payments$— $— $161,945 $161,945 
Digital Business Banking12,097 — — 12,097 
Merchant Payments— 36,534 — 36,534 
Fraud Management7,552 — — 7,552 
Real-Time Payments24,212 — — 24,212 
Issuing and Acquiring98,085 — — 98,085 
Total$141,946 $36,534 $161,945 $340,425 
Six Months Ended June 30, 2023
BanksMerchantsBillersTotal
Primary Solution Categories
Bill Payments$— $— $336,165 $336,165 
Digital Business Banking1,591 — — 1,591 
Merchant Payments— 71,289 — 71,289 
Fraud Management21,508 — — 21,508 
Real-Time Payments45,897 — — 45,897 
Issuing and Acquiring136,551 — — 136,551 
Total$205,547 $71,289 $336,165 $613,001 
Six Months Ended June 30, 2022
BanksMerchantsBillersTotal
Primary Solution Categories
Bill Payments$— $— $311,825 $311,825 
Digital Business Banking25,585 — — 25,585 
Merchant Payments— 77,536 — 77,536 
Fraud Management15,329 — — 15,329 
Real-Time Payments46,139 — — 46,139 
Issuing and Acquiring187,091 — — 187,091 
Total$274,144 $77,536 $311,825 $663,505 

As discussed in Note 3, Divestiture, the Company divested its corporate online banking solution assets, which were included in
the Digital Business Banking solution category.
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Banks
Software as a service and platform as a service$9,742 $13,985 $18,991 $27,937 
License42,885 62,942 59,201 117,381 
Maintenance47,624 46,744 93,966 94,087 
Services17,256 18,275 33,389 34,739 
Total$117,507 $141,946 $205,547 $274,144 
Merchants
Software as a service and platform as a service$30,648 $31,058 $59,498 $61,825 
License1,786 1,372 3,801 7,218 
Maintenance3,743 3,808 7,480 7,846 
Services331 296 510 647 
Total$36,508 $36,534 $71,289 $77,536 
Billers
Software as a service and platform as a service$169,286 $161,935 $336,117 $311,778 
License— — — — 
Maintenance24 10 48 47 
Services— — — — 
Total$169,310 $161,945 $336,165 $311,825 

The following is the Company's revenue by geographic location for the periods indicated (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Revenue
United States$205,199 $209,459 $406,468 $408,774 
Other118,126 130,966 206,533 254,731 
Total$323,325 $340,425 $613,001 $663,505 

The following is the Company’s long-lived assets by geographic location for the periods indicated (in thousands):
June 30, 2023December 31, 2022
Long-lived Assets
United States$1,233,695 $1,286,505 
Other732,291 754,847 
Total$1,965,986 $2,041,352 

No single customer accounted for more than 10% of the Company’s consolidated revenues during the three and six months ended June 30, 2023 and 2022. No other country outside the United States accounted for more than 10% of the Company's consolidated revenues during the six months ended June 30, 2023 and 2022.