What changed in this filing

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Item 1. Financial Statements

2024-11-07 compared with 2024-08-01 · 110 added, 95 removed, 559 unchanged (27% of the section changed)

4 unchanged sentences

(unaudited and in thousands, except share and per share amounts)

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Current assets

53 unchanged sentences

5,000,000 shares authorized;

no shares issued at June 30, 2024, and December 31, 2023

no shares issued at September 30, 2024, and December 31, 2023

Common stock;

1 unchanged sentence

280,000,000 shares authorized;

140,525,055 shares issued at June 30, 2024, and December 31, 2023

140,525,055 shares issued at September 30, 2024, and December 31, 2023

Additional paid-in capital 725,724 712,994

Retained earnings 1,499,530 1,394,967

Treasury stock, at cost, 35,664,418 and 32,447,317 shares at June 30, 2024, and December 31, 2023, respectively

Treasury stock, at cost, 35,654,240 and 32,447,317 shares at September 30, 2024, and December 31, 2023, respectively

( 791,353 ) ( 674,896 )

8 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

19 unchanged sentences

329,166 301,091 955,403 927,924

Operating income (loss)

Operating income

122,586 61,924 185,847 48,092

22 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

9 unchanged sentences

(unaudited and in thousands, except share amounts)

Three Months Ended June 30, 2024

Three Months Ended September 30, 2024

Common Stock Additional

1 unchanged sentence

Comprehensive Loss Total

Balance as of March 31, 2024 $ 702 $ 714,936 $ 1,387,216 $ ( 733,927 ) $ ( 111,874 ) $ 1,257,053

Balance as of June 30, 2024 $ 702 $ 718,559 $ 1,418,103 $ ( 786,526 ) $ ( 114,082 ) $ 1,236,756

— — 81,427 — — 81,427

Other comprehensive loss

Other comprehensive income

— — — — 9,109 9,109

7 unchanged sentences

— — — ( 2,960 ) — ( 2,960 )

Balance as of June 30, 2024 $ 702 $ 718,559 $ 1,418,103 $ ( 786,526 ) $ ( 114,082 ) $ 1,236,756

Three Months Ended June 30, 2023

Balance as of September 30, 2024 $ 702 $ 725,724 $ 1,499,530 $ ( 791,353 ) $ ( 104,973 ) $ 1,329,630

Three Months Ended September 30, 2023

Common Stock Additional

1 unchanged sentence

Comprehensive Loss Total

Balance as of March 31, 2023 $ 702 $ 701,040 $ 1,241,150 $ ( 661,223 ) $ ( 114,042 ) $ 1,167,627

Balance as of June 30, 2023 $ 702 $ 704,096 $ 1,234,440 $ ( 655,660 ) $ ( 111,052 ) $ 1,172,526

— — 37,911 — — 37,911

Other comprehensive income

Other comprehensive loss

— — — — ( 6,310 ) ( 6,310 )

5 unchanged sentences

— — — ( 883 ) — ( 883 )

Balance as of June 30, 2023 $ 702 $ 704,096 $ 1,234,440 $ ( 655,660 ) $ ( 111,052 ) $ 1,172,526

Balance as of September 30, 2023 $ 702 $ 708,506 $ 1,272,351 $ ( 653,162 ) $ ( 117,362 ) $ 1,211,035

The accompanying notes are an integral part of the condensed consolidated financial statements.

3 unchanged sentences

(unaudited and in thousands, except share amounts)

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Common Stock Additional

4 unchanged sentences

— — 104,563 — 104,563

Other comprehensive loss

Other comprehensive income

— — — — 4,497 4,497

7 unchanged sentences

— — — ( 9,299 ) — ( 9,299 )

Balance as of June 30, 2024 $ 702 $ 718,559 $ 1,418,103 $ ( 786,526 ) $ ( 114,082 ) $ 1,236,756

Six Months Ended June 30, 2023

Balance as of September 30, 2024 $ 702 $ 725,724 $ 1,499,530 $ ( 791,353 ) $ ( 104,973 ) $ 1,329,630

Nine Months Ended September 30, 2023

Paid-in Capital

13 unchanged sentences

— — — ( 4,203 ) — ( 4,203 )

Balance as of June 30, 2023 $ 702 $ 704,096 $ 1,234,440 $ ( 655,660 ) $ ( 111,052 ) $ 1,172,526

Balance as of September 30, 2023 $ 702 $ 708,506 $ 1,272,351 $ ( 653,162 ) $ ( 117,362 ) $ 1,211,035

The accompanying notes are an integral part of the condensed consolidated financial statements.

3 unchanged sentences

(unaudited and in thousands)

Six Months Ended

Nine Months Ended

September 30,

Cash flows from operating activities:

2 unchanged sentences

14,999 18,722

71,711 74,716

Amortization of operating lease right-of-use assets

4 unchanged sentences

30,165 17,537

( 2,067 ) 311

Changes in operating assets and liabilities:

99,598 81,856

Accounts payable

29 unchanged sentences

Payments for debt issuance costs ( 5,141 ) ( 2,160 )

Net decrease in settlement assets and liabilities

Net increase (decrease) in settlement assets and liabilities

17,704 ( 4,635 )

2 unchanged sentences

Effect of exchange rate fluctuations on cash ( 331 ) 4,388

Net decrease in cash and cash equivalents

( 14,703 ) ( 17,845 )

Net increase in cash and cash equivalents

Cash and cash equivalents, including settlement deposits, beginning of period 238,821 214,672

17 unchanged sentences

All intercompany balances and transactions have been eliminated.

The condensed consolidated financial statements as of June 30, 2024, and for the three and six months ended June 30, 2024 and 2023, are unaudited and reflect all adjustments of a normal recurring nature, which are, in the opinion of management, necessary for a fair presentation, in all material respects, of the financial position and operating results for the interim periods.

The condensed consolidated financial statements as of September 30, 2024, and for the three and nine months ended September 30, 2024 and 2023, are unaudited and reflect all adjustments of a normal recurring nature, which are, in the opinion of management, necessary for a fair presentation, in all material respects, of the financial position and operating results for the interim periods.

The condensed consolidated balance sheet as of December 31, 2023, is derived from the audited financial statements.

The condensed consolidated financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2023, filed on February 29, 2024.

Results for the three and six months ended June 30, 2024, are not necessarily indicative of results that may be attained in the future.

Results for the three and nine months ended September 30, 2024, are not necessarily indicative of results that may be attained in the future.

The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S.

4 unchanged sentences

The components of other current liabilities are included in the following table (in thousands):

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Operating lease liabilities $ 8,960 $ 9,348

Accrued interest 9,082 9,172

Vendor financed licenses 8,076 12,702

Accrued interest 3,124 9,172

Other 54,876 51,022

15 unchanged sentences

The collection of interest on these settlement accounts is considered in the Company’s determination of its fee structure for clients and represents a portion of the payment for services performed by the Company.

The amount of settlement funds as of June 30, 2024, and December 31, 2023, was $ 202.6 million and $ 273.2 million, respectively.

The amount of settlement funds as of September 30, 2024, and December 31, 2023, was $ 315.5 million and $ 273.2 million, respectively.

The fair value of the Company’s Credit Agreement approximates the carrying value due to the floating interest rate (Level 2 of the fair value hierarchy).

The Company measures the fair value of its Senior Notes based on Level 2 inputs, which include quoted market prices and interest rate spreads of similar securities.

The fair value of the Company’s 5.750 % Senior Notes due 2026 (“2026 Notes”) was $ 397.9 million and $ 398.5 million as of June 30, 2024, and December 31, 2023, respectively.

The fair value of the Company’s 5.750 % Senior Notes due 2026 (“2026 Notes”) was $ 399.6 million and $ 398.5 million as of September 30, 2024, and December 31, 2023, respectively.

The fair values of cash and cash equivalents approximate the carrying values due to the short period of time to maturity (Level 2 of the fair value hierarchy).

1 unchanged sentence

The Company evaluates goodwill at the reporting unit level and has identified its operating segments, Banks, Merchants, and Billers, as the reporting units.

As of June 30, 2024, the Company's goodwill balance of $ 1.2 billion was allocated $ 671.7 million to Banks, $ 137.3 million to Merchants, and $ 417.0 million to Billers.

As of September 30, 2024, the Company's goodwill balance of $ 1.2 billion was allocated $ 671.7 million to Banks, $ 137.3 million to Merchants, and $ 417.0 million to Billers.

Recoverability of goodwill is measured using a discounted cash flow model incorporating discount rates commensurate with the risks involved.

5 unchanged sentences

The Company records its share of earnings and losses in the investment on a one-quarter lag basis.

Accordingly, the Company recorded an investment of $ 19.3 million and $ 18.5 million, which is included in other noncurrent assets in the condensed consolidated balance sheet as of June 30, 2024, and December 31, 2023, respectively.

Accordingly, the Company recorded an investment of $ 19.6 million and $ 18.5 million, which is included in other noncurrent assets in the condensed consolidated balance sheet as of September 30, 2024, and December 31, 2023, respectively.

Recently Issued Accounting Standards Not Yet Effective

14 unchanged sentences

Total receivables, net is comprised of the following (in thousands):

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Billed receivables $ 201,577 $ 250,423

Allowance for doubtful accounts ( 1,307 ) ( 4,295 )

Allowance for credit losses

( 1,936 ) ( 4,295 )

Billed receivables, net 199,641 246,128

3 unchanged sentences

Total receivables, net $ 763,495 $ 766,320

No customer accounted for more than 10% of the Company’s consolidated receivables balance as of June 30, 2024 and December 31, 2023.

No customer accounted for more than 10% of the Company’s consolidated receivables balance as of September 30, 2024 and December 31, 2023.

Deferred revenue includes amounts due or received from customers for software licenses, maintenance, services, and/or SaaS and PaaS services in advance of recording the related revenue.

4 unchanged sentences

Foreign currency translation 1,544

Balance, June 30, 2024

Balance, September 30, 2024

Revenue allocated to remaining performance obligations represents contracted revenue that will be recognized in future periods, which is comprised of deferred revenue and amounts that will be invoiced and recognized as revenue in future periods.

2 unchanged sentences

• SaaS and PaaS revenue from variable consideration that will be recognized in accordance with the ‘right to invoice’ practical expedient or meets the allocation objective.

Revenue allocated to remaining performance obligations was $ 731.0 million as of June 30, 2024, of which the Company expects to recognize approximately 53 % over the next 12 months and the remainder thereafter.

During the three and six months ended June 30, 2024, and 2023, revenue recognized by the Company from performance obligations satisfied in previous periods was not significant.

As of June 30, 2024, the Company had $ 136.0 million, $ 481.3 million, and $ 400.0 million outstanding under its Revolving Credit Facility, Term Loans, and Senior Notes, respectively, with up to $ 462.1 million of unused borrowings under the Revolving Credit Facility portion of the Credit Agreement, as amended, and up to $ 1.9 million of unused borrowings under Letter of Credit agreements.

Revenue allocated to remaining performance obligations was $ 659.2 million as of September 30, 2024, of which the Company expects to recognize approximately 51 % over the next 12 months and the remainder thereafter.

During the three and nine months ended September 30, 2024, revenue recognized by the Company from performance obligations satisfied in previous periods was no t significant.

During the three and nine months ended September 30, 2023, revenue recognized by the Company from performance obligations satisfied in previous periods was $ 23.3 million and $ 43.7 million, respectively.

As of September 30, 2024, the Company had $ 131.0 million, $ 471.9 million, and $ 400.0 million outstanding under its Revolving Credit Facility, Term Loans, and Senior Notes, respectively, with up to $ 467.1 million of unused borrowings under the Revolving Credit Facility portion of the Credit Agreement, as amended, and up to $ 1.9 million of unused borrowings under Letter of Credit agreements.

The amount of unused borrowings actually available varies in accordance with the terms of the agreement.

8 unchanged sentences

Interest is due and payable monthly.

The interest rate in effect for the Credit Facility as of June 30, 2024, was 7.44 %.

The interest rate in effect for the Credit Facility as of September 30, 2024, was 6.70 %.

The Company is also required to pay (a) a commitment fee related to the unutilized commitments under the Revolving Credit Facility, payable quarterly in arrears, (b) letter of credit fees on the maximum amount available to be drawn under all outstanding letters of credit in an amount equal to the applicable margin on SOFR rate borrowings under the Revolving Credit Facility on an annual basis, payable quarterly in arrears, and (c) customary fronting fees for the issuance of letters of credit fees and agency fees.

5 unchanged sentences

The Credit Agreement contains customary negative covenants that, among other things, restrict the Company’s ability to incur additional indebtedness, grant additional liens, and make certain acquisitions, investments, asset dispositions, and restricted payments.

secured net leverage ratio of less than or equal to 3.75 to 1.00, and (iii) a minimum consolidated interest coverage ratio of greater than or equal to 3.00 to 1.00, in each case subject to certain exclusions as set forth in the Credit Agreement.

In addition, the Credit Agreement contains financial covenants that require the Company to maintain, as of the end of any fiscal quarter, (i) a consolidated total net leverage ratio of less than or equal to 4.25 to 1.00, (ii) a consolidated senior secured net leverage ratio of less than or equal to 3.75 to 1.00, and (iii) a minimum consolidated interest coverage ratio of greater than or equal to 3.00 to 1.00, in each case subject to certain exclusions as set forth in the Credit Agreement.

The Credit Agreement also contains certain customary affirmative covenants and events of default.

3 unchanged sentences

The 2026 Notes will mature on August 15, 2026.

Maturities on debt outstanding as of June 30, 2024, are as follows (in thousands):

Maturities on debt outstanding as of September 30, 2024, are as follows (in thousands):

Fiscal Year Ending December 31,

2 unchanged sentences

Total $ 1,002,875

As of June 30, 2024, and at all times during the period, the Company was in compliance with its financial debt covenants.

As of September 30, 2024, and at all times during the period, the Company was in compliance with its financial debt covenants.

Total debt is comprised of the following (in thousands):

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Term loans $ 471,875 $ 519,698

13 unchanged sentences

Amounts outstanding on the overdraft facility are included in other current liabilities in the condensed consolidated balance sheet.

As of June 30, 2024, there was $ 75.0 million available and no amount outstanding on the overdraft facility.

As of December 31, 2023, there was no amount outstanding on the overdraft facility.

As of September 30, 2024 and December 31, 2023, there was $ 75.0 million available and no amount outstanding on the overdraft facility.

The Company finances certain multi-year license agreements for internal-use software.

Upon execution, these arrangements are treated as a non-cash investing and financing activity for purposes of the condensed consolidated statements of cash flows.

As of June 30, 2024, no amount was outstanding on these agreements.

As of September 30, 2024, no amount was outstanding on these agreements.

As of December 31, 2023, $ 3.6 million was outstanding on these agreements, all of which was included in other current liabilities in the consolidated balance sheet.

1 unchanged sentence

The carrying amount and accumulated amortization of the Company's software assets subject to amortization at each balance sheet date are as follows (in thousands):

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Gross Carrying Amount Accumulated Amortization Net Balance Gross Carrying Amount Accumulated Amortization Net Balance

1 unchanged sentence

Amortization of software for internal use is computed using the straight-line method over an estimated useful life of generally three to eight years .

Software for internal use amortization expense recorded during the three months ended June 30, 2024 and 2023, totaled $ 15.8 million and $ 16.0 million, respectively.

Software for internal use amortization expense recorded during the six months ended June 30, 2024 and 2023, totaled $ 31.3 million and $ 33.0 million, respectively.

Software for internal use amortization expense recorded during the three months ended September 30, 2024 and 2023, totaled $ 16.6 million and $ 16.3 million, respectively.

Software for internal use amortization expense recorded during the nine months ended September 30, 2024 and 2023, totaled $ 47.9 million and $ 49.3 million, respectively.

These software amortization expense amounts are reflected in depreciation and amortization in the condensed consolidated statements of operations.

The carrying amount and accumulated amortization of the Company’s other intangible assets subject to amortization at each balance sheet date are as follows (in thousands):

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Gross Carrying Amount Accumulated Amortization Net Balance Gross Carrying Amount Accumulated Amortization Net Balance

2 unchanged sentences

Total other intangible assets $ 472,463 $ ( 300,153 ) $ 172,310 $ 469,553 $ ( 273,907 ) $ 195,646

Other intangible assets amortization expense recorded during the three months ended June 30, 2024 and 2023, totaled $ 8.2 million and $ 8.5 million, respectively.

Other intangible assets amortization expense recorded during the six months ended June 30, 2024 and 2023, totaled $ 16.7 million and $ 16.9 million, respectively.

Based on capitalized intangible assets as of June 30, 2024, estimated amortization expense amounts in future fiscal years are as follows (in thousands):

Other intangible assets amortization expense recorded during the three months ended September 30, 2024 and 2023, totaled $ 7.1 million and $ 8.5 million, respectively.

Other intangible assets amortization expense recorded during the nine months ended September 30, 2024 and 2023, totaled $ 23.8 million and $ 25.4 million, respectively.

Based on capitalized intangible assets as of September 30, 2024, estimated amortization expense amounts in future fiscal years are as follows (in thousands):

Fiscal Year Ending December 31, Software Amortization Other Intangible Assets Amortization

8 unchanged sentences

Employee Stock Purchase Plan

Shares issued under the 2017 Employee Stock Purchase Plan during the six months ended June 30, 2024 and 2023, totaled 51,397 and 65,770 , respectively.

Shares issued under the 2017 Employee Stock Purchase Plan during the nine months ended September 30, 2024 and 2023, totaled 71,181 and 101,565 , respectively.

Stock Options

7 unchanged sentences

Exercised ( 104,951 ) 18.62

Outstanding as of June 30, 2024 833,205 $ 18.76 1.52 $ 17,356,237

Exercisable as of June 30, 2024 833,205 $ 18.76 1.52 $ 17,356,237

The total intrinsic value of stock options exercised during the six months ended June 30, 2024 and 2023, was $ 0.6 million and $ 0.8 million, respectively.

There were no stock options granted during the six months ended June 30, 2024 or 2023.

Outstanding as of September 30, 2024 768,561 $ 18.78 1.31 $ 24,689,894

Exercisable as of September 30, 2024 768,561 $ 18.78 1.31 $ 24,689,894

The total intrinsic value of stock options exercised during the nine months ended September 30, 2024 and 2023, was $ 2.4 million and $ 0.9 million, respectively.

There were no stock options granted during the nine months ended September 30, 2024 or 2023.

Performance Share Awards

During the six months ended June 30, 2024, pursuant to the Company's 2020 Equity and Incentive Compensation Plan, the Company granted performance share awards with a total shareholder return component ("TSRs").

During the nine months ended September 30, 2024, pursuant to the Company's 2020 Equity and Incentive Compensation Plan, the Company granted performance share awards with a total shareholder return component ("TSRs").

These performance share awards are earned, if at all, based upon achievement, over a specified period that must not be less than one year and is typically a three-year performance period.

9 unchanged sentences

Change in payout rate ( 203,945 ) 50.60

Nonvested as of June 30, 2024 1,012,411 $ 35.13

Nonvested as of September 30, 2024 960,156 $ 35.22

In the first quarter of 2024, the TSRs granted in 2021 were earned by the employees.

However, the performance goals were not met and no shares were issued.

The fair value of TSRs granted during the six months ended June 30, 2024 and 2023, were estimated on the date of grant using the Monte Carlo simulation model, acceptable under ASC 718, Compensation - Stock Compensation , using the following weighted average assumptions:

Six months ended June 30,

The fair value of TSRs granted during the nine months ended September 30, 2024 and 2023, were estimated on the date of grant using the Monte Carlo simulation model, acceptable under ASC 718, Compensation - Stock Compensation , using the following weighted average assumptions:

Nine months ended September 30,

Expected life (years) 2.7 2.9

10 unchanged sentences

Forfeited ( 147,618 ) 28.29

Nonvested as of June 30, 2024 2,161,032 $ 29.36

During the six months ended June 30, 2024, a total of 624,487 RSUs vested.

Nonvested as of September 30, 2024 1,954,230 $ 29.72

During the nine months ended September 30, 2024, a total of 815,772 RSUs vested.

The Company withheld 252,290 of those shares to pay the employees’ portion of the minimum payroll withholding taxes.

As of June 30, 2024, there was unrecognized compensation expense of $ 58.0 million related to RSUs and $ 21.9 million related to TSRs, which the Company expects to recognize over a weighted average period of 2.3 years and 2.2 years, respectively.

The Company recorded stock-based compensation expense recognized under ASC 718 for the three months ended June 30, 2024 and 2023, of $ 10.7 million and $ 5.4 million, respectively, with corresponding tax benefits of $ 1.7 million and $ 1.0 million, respectively.

The Company recorded stock-based compensation expense recognized under ASC 718 for the six months ended June 30, 2024 and 2023, of $ 18.8 million and $ 10.7 million, respectively, with corresponding tax benefits of $ 3.1 million and $ 2.0 million , respectively.

As of September 30, 2024, there was unrecognized compensation expense of $ 50.7 million related to RSUs and $ 22.8 million related to TSRs, which the Company expects to recognize over a weighted average period of 2.1 years and 2.0 years, respectively.

The Company recorded stock-based compensation expense recognized under ASC 718 for the three months ended September 30, 2024 and 2023, of $ 11.3 million and $ 6.8 million, respectively, with corresponding tax benefits of $ 1.9 million and $ 1.2 million, respectively.

The Company recorded stock-based compensation expense recognized under ASC 718 for the nine months ended September 30, 2024 and 2023, of $ 30.2 million and $ 17.5 million, respectively, with corresponding tax benefits of $ 5.0 million and $ 3.2 million , respectively.

Common Stock and Treasury Stock

1 unchanged sentence

In June 2024, the board approved the repurchase of the Company's common stock of up to $ 400.0 million, in place of the remaining purchase amounts previously authorized.

The Company repurchased 3,743,220 shares for $ 120.7 million during the six months ended June 30, 2024.

The Company repurchased 3,946,537 shares for $ 128.7 million during the nine months ended September 30, 2024.

Under the program to date, the Company has repurchased 62,867,837 shares for approximately $ 1.1 billion.

As of June 30, 2024, the maximum remaining amount authorized for purchase under the stock repurchase program was $ 380.3 million.

As of September 30, 2024, the maximum remaining amount authorized for purchase under the stock repurchase program was $ 372.3 million.

Earnings (Loss) Per Share

3 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

3 unchanged sentences

Diluted weighted average shares outstanding 106,018 108,933 106,552 108,428

The diluted earnings (loss) per share computation excludes 1.0 million and 3.7 million options to purchase shares, RSUs, and contingently issuable shares during the three months ended June 30, 2024 and 2023, respectively, as their effect would be anti-dilutive.

The diluted earnings (loss) per share computation excludes 1.7 million and 3.1 million options to purchase shares, RSUs, and contingently issuable shares during the six months ended June 30, 2024 and 2023, respectively, as their effect would be anti-dilutive.

Common stock outstanding as of June 30, 2024, and December 31, 2023, was 104,860,637 and 108,077,738 , respectively.

The diluted earnings (loss) per share computation excludes 1.0 million and 2.0 million options to purchase shares, RSUs, and contingently issuable shares during the three months ended September 30, 2024 and 2023, respectively, as their effect would be anti-dilutive.

The diluted earnings (loss) per share computation excludes 1.2 million and 3.2 million options to purchase shares, RSUs, and contingently issuable shares during the nine months ended September 30, 2024 and 2023, respectively, as their effect would be anti-dilutive.

Common stock outstanding as of September 30, 2024, and December 31, 2023, was 104,870,815 and 108,077,738 , respectively.

Other, net is primarily comprised of foreign currency transaction gains and losses.

Other, net was $ 1.2 million of income and $ 4.1 million of expense for the three months ended June 30, 2024 and 2023, respectively.

Other, net was $ 0.9 million and $ 7.5 million of expense for the six months ended June 30, 2024 and 2023, respectively.

Other, net was $ 0.8 million of expense and $ 1.1 million of income for the three months ended September 30, 2024 and 2023, respectively.

Other, net was $ 1.7 million and $ 6.4 million of expense for the nine months ended September 30, 2024 and 2023, respectively.

Segment Information

23 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

15 unchanged sentences

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, 2024

Three Months Ended September 30, 2024

Banks Merchants Billers Total

6 unchanged sentences

Total $ 222,031 $ 50,120 $ 179,601 $ 451,752

Three Months Ended June 30, 2023

Three Months Ended September 30, 2023

Banks Merchants Billers Total

6 unchanged sentences

Total $ 155,684 $ 36,267 $ 171,064 $ 363,015

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Banks Merchants Billers Total

6 unchanged sentences

Total $ 471,109 $ 123,865 $ 546,276 $ 1,141,250

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

Banks Merchants Billers Total

7 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

16 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

3 unchanged sentences

The following is the Company’s long-lived assets by geographic location for the periods indicated (in thousands):

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Long-lived Assets

2 unchanged sentences

Total $ 1,942,711 $ 1,979,595

No single customer accounted for more than 10% of the Company’s consolidated revenues during the three and six months ended June 30, 2024 and 2023.

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, 2024 and 2023.

For the three and six months ended June 30, 2024, the Company's effective tax rate was 23 % and 30 %, respectively.

The Company reported a tax charge on pretax income for both the three and six months ended June 30, 2024, with foreign entities recognizing earnings of $ 51.7 million and $ 40.5 million, respectively.

For the three and six months ended June 30, 2023, the Company's effective tax rate was 33 % and 27 %, respectively.

The Company reported tax benefit on pretax loss for both the three and six months ended June 30, 2023, with foreign entities recognizing earnings of $ 24.3 million and $ 17.1 million, respectively.

No single customer accounted for more than 10% of the Company's consolidated revenue during the three and nine months ended September 30, 2024 and 2023.

The United Kingdom accounted for 12.0 % of the Company's consolidated revenues during the three months ended September 30, 2024.

No other country outside the United States accounted for more than 10% of the Company's consolidated revenues during the three months ended September 30, 2023 and nine months ended September 30, 2024 and 2023.

For the three and nine months ended September 30, 2024, the Company's effective tax rate was 24 % and 25 %, respectively.

The Company reported a tax charge on pretax income for both the three and nine months ended September 30, 2024, with foreign entities recognizing earnings of $ 107.6 million and $ 148.1 million, respectively.

For the three and nine months ended September 30, 2023, the Company's effective tax rate was 19 % and 83 %, respectively.

The Company reported a tax charge on pretax income for the three months ended September 30, 2023 and a tax benefit on pretax loss for the nine months ended September 30, 2023, with foreign entities recognizing earnings of $ 47.9 million and $ 64.9 million, respectively.

The Company’s effective tax rate could fluctuate on a quarterly basis due to the occurrence of significant and unusual or infrequent items, such as vesting of stock-based compensation or foreign currency gains and losses.

5 unchanged sentences

Entities operating in countries where Pillar Two has been enacted are required to estimate Pillar Two top-up tax obligations beginning in the first quarter of 2024.

For the six months ended June 30, 2024, the Company did not have material Pillar Two top-up tax obligations impacting the Company’s estimated annual effective tax rate.

For the nine months ended September 30, 2024, the Company did not have material Pillar Two top-up tax obligations impacting the Company’s estimated annual effective tax rate.

The Company will continue to evaluate the impact of proposed and enacted legislation as new guidance becomes available.

As of June 30, 2024, and December 31, 2023, the amount of unrecognized tax benefits for uncertain tax positions was $ 20.9 million, excluding related liabilities for interest and penalties of $ 0.5 million.

As of September 30, 2024, and December 31, 2023, the amount of unrecognized tax benefits for uncertain tax positions was $ 21.0 million and $ 20.9 million, respectively, excluding related liabilities for interest and penalties of $ 0.4 million and $ 0.5 million, respectively.

The Company believes it is reasonably possible that the total amount of unrecognized tax benefits will decrease within the next 12 months by approximately $ 2.3 million, due to the settlement of various audits and the expiration of statutes of limitation.

Commitments and Contingencies

Legal Proceedings

In April 2021, ACH files associated with one of the Company's mortgage servicing customers were inadvertently transmitted into the ACH network during a test of the Company's payment processing system.

The Company took immediate corrective action and issued reversing ACH files, restoring affected accounts.

The Company’s customer commenced an action for damages as a result of this event.

The Company settled with the customer for the amount of $ 1.8 million, which will be funded by insurance carriers.

Funds received from or expected to be received from insurance carriers are generally subject to the respective carriers' reservation of rights.

The Company is from time to time subject to other claims, litigation and investigations.

While the Company believes that none of the currently pending matters is reasonably likely to have a material adverse effect on it, there can be no assurance with respect thereto or future matters.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements