Aci Worldwide (ACIW) risk factors, FY2024 10-K

Risks Related to Our Business and Operations

1. 01The markets in which we compete are rapidly changing and highly competitive, and we may not be able to compete effectively
2. 02If we experience business interruptions, cybersecurity incidents or failure of our information technology and communication systems, the availability of our products and services could be interrupted which could adversely affect our reputation, business and financial condition
3. 03If our security measures are compromised or we experience a cybersecurity incident or similar attack, or if our services are subject to attacks that degrade or deny the ability of users to access our products or services, our business may be harmed by disrupting delivery of services and damaging our reputation
4. 04If we engage in acquisitions, strategic partnerships or significant investments in new business, we will be exposed to risks which could materially adversely affect our business
5. 05Failure to successfully complete divestitures or other restructuring activities could negatively affect our operations
6. 06We may experience difficulties implementing our strategy, and the strategy could prove unsuccessful in growing our business
7. 07Failure to attract and retain senior management personnel and skilled technical employees could harm our ability to grow
8. 08To the extent that we convert some or all of our on-premise licenses from a fixed-term to a subscription model, our future financial results will be affected by the frequency at which our customers adopt our subscription model, which carries with it certain risks
9. 09Certain anti-takeover provisions contained in our charter and under Delaware law could hinder a takeover attempt

Risks Related to Our Customers

1. 10Certain payment funding methods expose us to the credit and/or operating risk of our customers
2. 11Our business could be materially detrimentally impacted by loss caused by theft or fraud
3. 12Potential customers may be reluctant to switch to a new vendor, which may adversely affect our growth

Risks Related to Our Intellectual Property

1. 13We may be unable to protect our intellectual property and technology
2. 14We may be subject to increasing litigation over our intellectual property rights
3. 15We are engaged in offshore software development activities, which may not be successful and which may put our intellectual property at risk

Risks Related to Our International Operations

1. 16There are a number of risks associated with our international operations that could have a material impact on our operations and financial condition
2. 17Recent events in eastern Europe and the Middle East present challenges and risks to us, and no assurances can be given that current or future developments would not have a material adverse effect on our business, results of operations and financial condition

Risks Related to Our Products and Services

1. 18Global economic conditions could reduce the demand for our products and services or otherwise adversely impact our cash flows, operating results and financial condition
2. 19Our business may be negatively affected by domestic and global economic and credit conditions
3. 20If our products and services fail to comply with legislation, government regulations, and industry standards to which our customers are subject, it could result in a loss of customers and decreased revenue
4. 21Our software products may contain undetected errors or other defects, which could damage our reputation with customers, decrease profitability, and expose us to liability
5. 22The artificial intelligence technology incorporated into our products include new and evolving technologies that may present both legal and business risks
6. 23we use AI. Further, the cost to comply with such laws or regulations could be significant and would increase our operating expenses, which could harm our business, reputation, financial condition and results of operations
7. 24The use of AI by our workforce may present risks to our business

Risks Related to Legal, Regulatory, and Tax Matters

1. 25If we fail to comply with the complex regulations applicable to our payments business, we could be subject to liability or our revenues may be reduced
2. 26Our business could be harmed if we fail to comply with privacy and cybersecurity laws and regulations imposed on providers of services to financial institutions
3. 27If we fail to comply with the applicable requirements of the payment card networks and Nacha, they could seek to fine us, suspend us or terminate our registrations, which could adversely affect our business
4. 28We may face exposure to unknown tax liabilities, which could adversely affect our financial condition, cash flows and/or results of operations
5. 29Changes in tax laws and regulations could adversely affect our results of operations and cash flows from operations

Risks Related to Our Industry

1. 30Consolidations and failures in the financial services industry may adversely impact the number of customers and our revenues in the future
2. 31Our stock price may be volatile

Risks Related to Our Financial Performance

1. 32Our future profitability depends on demand for our products
2. 33Failure to obtain renewals of customer contracts or obtain such renewals on favorable terms could adversely affect our results of operations and financial condition
3. 34The delay or cancellation of a customer project or inaccurate project completion estimates may adversely affect our operating results and financial performance
4. 35Changes in card association and debit network fees or products could increase costs or otherwise limit our operations
5. 36Our balance sheet includes significant amounts of goodwill and intangible assets. The impairment of a significant portion of these assets could negatively affect our financial results
6. 37Management’s backlog estimate may not be accurate and may not generate the predicted revenues
7. 38Our revenue and earnings are highly cyclical, our quarterly results fluctuate significantly, and we have revenue-generating transactions concentrated in the final weeks of a quarter which may prevent accurate forecasting of our financial results and cause our stock price to decline

Risks Related to Financing

1. 39Our outstanding debt contains restrictions and other financial covenants that limit our flexibility in operating our business
2. 40Our existing levels of debt and debt service requirements may adversely affect our financial condition or operational flexibility and prevent us from fulfilling our obligations under our outstanding indebtedness
3. 41which would increase the risks described in these risk factors relating to indebtedness
4. 42Our business and operating results could be adversely affected by events outside of our control, including natural disasters, wars and outbreaks of disease or other adverse public health developments
5. 43If our revenues or mix of revenues are below anticipated levels or if our operating results are below analyst or investor expectations, the market price of our common stock could be adversely affected