ACI Worldwide (NASDAQ:ACIW) sinks 11% after issuing Q3 guidance in an investor conference presentation that trailed the consensus estimates as new license revenue slowed due to the COVID-19 pandemic.

Management expects Q3 revenue of $310M vs. consensus of $352M and adjusted EBITDA of $70M vs. $102M consensus, writes BTIG analyst Mark Palmer.

“Management attributed the would-be miss to a continuation in weakness in new license revenue from the company’s On Premise segment given weak demand from banks and financial institutions in North America and Europe stemming from the COVID-19 pandemic,” he wrote.

The company hadn’t lost clients in its On Premise segment, but its new business “slowed meaningfully,” Palmer wrote.

See ACIW’s quarterly EPS consensus revision trend:





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