ACI Worldwide, Inc. Reports Financial Results for the Quarter Ended June 30, 2024

Rhea-AI Summary

ACI Worldwide (NASDAQ: ACIW) reported strong financial results for Q2 2024, with revenue up 16% to $373 million and net income of $31 million, a significant improvement from a $7 million loss in Q2 2023. Adjusted EBITDA increased 62% to $93 million, while cash flow from operating activities surged 215% to $55 million.

The company saw growth across all segments: Bank revenue up 22%, Merchant revenue up 4%, and Biller revenue up 13%. ACI ended the quarter with $157 million in cash and a debt balance of $1 billion. The Board authorized a $400 million share repurchase program, with 1.7 million shares repurchased for $57 million in Q2.

Based on strong performance, ACI raised its full-year 2024 guidance, now expecting revenue between $1.557-$1.591 billion and adjusted EBITDA of $423-$438 million.

Positive

• Revenue increased 16% year-over-year to $373 million in Q2 2024
• Net income improved from a $7 million loss to $31 million profit
• Adjusted EBITDA grew 62% to $93 million
• Cash flow from operating activities up 215% to $55 million
• Bank segment revenue increased 22% and adjusted EBITDA up 53%
• Board authorized $400 million share repurchase program
• Full-year 2024 guidance raised for both revenue and adjusted EBITDA

Negative

• Debt balance of $1 billion, representing a net debt leverage ratio of 1.9x

Insights

Financial Analyst

ACI Worldwide's Q2 2024 results demonstrate robust financial performance and strategic execution. The 16% year-over-year revenue growth to $373 million is impressive, particularly in the current economic climate. The company's focus on recurring revenue, which grew 9% and represented 76% of total revenue, provides a stable foundation for future growth.

The dramatic improvement in profitability is noteworthy, with net income swinging from a $7 million loss to a $31 million profit. The 62% increase in Adjusted EBITDA to $93 million indicates strong operational efficiency and margin expansion. The 215% increase in cash flow from operating activities to $55 million is particularly impressive, suggesting improved working capital management and cash conversion.

Segment performance was strong across the board, with the Bank segment leading revenue growth at 22%. The company's net debt leverage ratio of 1.9x is healthy, providing financial flexibility for future investments or acquisitions. The $400 million share repurchase authorization and the $57 million in shares already repurchased demonstrate confidence in the company's future and a commitment to returning value to shareholders.

The raised guidance for 2024 is a positive signal, indicating management's confidence in continued strong performance. However, investors should monitor the sustainability of this growth rate and any potential impact of macroeconomic factors on the company's customers in the financial services sector.

Market Research Analyst

ACI Worldwide's strong Q2 2024 performance reflects broader trends in the payments industry. The 22% growth in the Bank segment aligns with the increasing digitalization of banking services and the growing demand for real-time payment solutions. This trend is likely to continue as banks globally modernize their infrastructure to meet consumer expectations and compete with fintech disruptors.

The more modest 4% growth in the Merchant segment suggests a stabilizing market after the e-commerce boom during the pandemic. However, the 55% increase in Merchant segment adjusted EBITDA indicates successful cost management and potentially higher-margin product mix.

The 13% growth in the Biller segment reflects the ongoing shift towards digital bill payments and the increasing adoption of real-time payment options by utilities and other service providers. This segment has significant growth potential as more billers seek to improve customer experience and reduce payment processing costs.

ACI's focus on recurring revenue (76% of total revenue) is strategically sound in a market that values predictable, subscription-based models. This approach not only provides stability but also aligns with the software-as-a-service (SaaS) trend in enterprise technology.

The company's raised guidance suggests confidence in its market position and ability to capitalize on industry trends. However, investors should monitor potential headwinds such as increased competition in the payments space and the impact of any economic slowdowns on transaction volumes.

Q2 2024 HIGHLIGHTS

• Revenue up 16% versus Q2 2023
• Net income of $31 million, up $38 million from Q2 2023
• Adjusted EBITDA up 62% versus Q2 2023
• Cash flow from operating activities of $55 million, up 215% versus Q2 2023
• Announced $400 million share repurchase authorization
• Repurchased 1.7 million shares for $57 million
• Raising guidance range for full-year 2024

OMAHA, Neb.--(BUSINESS WIRE)-- ACI Worldwide (NASDAQ: ACIW), a global leader in mission-critical, real-time payments software, announced financial results today for the quarter ended June 30, 2024.

"We are pleased to report another quarter of strong growth in revenue and adjusted EBITDA, with both exceeding our financial guidance. Year-to-date, our revenue is up 12%, adjusted EBITDA is up 71%, cash flow from operations is up over 200%, and we are again raising our full year financial guidance," said Thomas Warsop, president and CEO of ACI Worldwide. “I’m encouraged by the progress the team is making against ACI’s strategy. We are focused on execution, including driving our key strategic initiatives and investing in the business to position the company for high-quality, profitable long-term growth.”

FINANCIAL SUMMARY

In Q2 2024, revenue was $373 million, up 16% from Q2 2023. Recurring revenue of $284 million grew 9% and represented 76% of total revenue in the quarter. Net income was $31 million, up from a net loss of $7 million in Q2 2023. Adjusted EBITDA in Q2 2024 was $93 million, up 62% from Q2 2023. Cash flow from operating activities in Q2 2024 was $55 million, up 215% from Q2 2023.

• Bank segment revenue increased 22% in Q2 2024 and Bank segment adjusted EBITDA increased 53% versus Q2 2023.

• Merchant segment revenue increased 4% in Q2 2024 and Merchant segment adjusted EBITDA increased 55% versus Q2 2023.

• Biller segment revenue increased 13% in Q2 2024 and Biller segment adjusted EBITDA increased 20% versus Q2 2023.

ACI ended Q2 2024 with $157 million in cash on hand and a debt balance of $1 billion, which represents a net debt leverage ratio of 1.9x. During the quarter the Board of Directors authorized the repurchase of $400 million in shares of the company’s common stock, and the company repurchased 1.7 million shares for approximately $57 million in capital in Q2 2024. At the end of the quarter, the company had approximately $380 million remaining available on the share repurchase authorization.

RAISING 2024 GUIDANCE RANGE

For the full year of 2024, we are raising our guidance for both revenue and adjusted EBITDA. We now expect revenue to be in the range of $1.557 billion to $1.591 billion, up from the range of $1.547 billion to $1.581 billion. We now expect adjusted EBITDA to be in the range of $423 million to $438 million, up from the range of $418 million to $433 million. For Q3 2024, we expect revenue to be between $400 million and $410 million and adjusted EBITDA of $110 million to $120 million.

CONFERENCE CALL TO DISCUSS FINANCIAL RESULTS

Today, management will host a conference call at 8:30 a.m. ET to discuss these results. Interested persons may access a real-time audio broadcast of the teleconference at http://investor.aciworldwide.com/ or use the following number for dial-in participation: toll-free 1 (888) 660-6377 and conference code 3153574.

About ACI Worldwide

ACI Worldwide is a global leader in mission-critical, real-time payments software. Our proven, secure and scalable software solutions enable leading corporations, fintechs and financial disruptors to process and manage digital payments, power omni-commerce payments, present and process bill payments, and manage fraud and risk. We combine our global footprint with a local presence to drive the real-time digital transformation of payments and commerce.

© Copyright ACI Worldwide, Inc. 2024.

ACI, ACI Worldwide, ACI Payments, Inc., ACI Pay, Speedpay and all ACI product/solution names are trademarks or registered trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in the United States, other countries or both. Other parties' trademarks referenced are the property of their respective owners.

To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude significant transaction-related expenses, as well as other significant non-cash expenses such as depreciation, amortization, and stock-based compensation, that we believe are helpful in understanding our past financial performance and our future results. The presentation of these non-GAAP financial measures should be considered in addition to our GAAP results and are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management generally compensates for limitations in the use of non-GAAP financial measures by relying on comparable GAAP financial measures and providing investors with a reconciliation of non-GAAP financial measures only in addition to and in conjunction with results presented in accordance with GAAP.

We believe that these non-GAAP financial measures reflect an additional way to view aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. Certain non-GAAP measures include:

• Adjusted EBITDA: net income (loss) plus income tax expense (benefit), net interest income (expense), net other income (expense), depreciation, amortization and stock-based compensation, as well as significant transaction-related expenses. Adjusted EBITDA should be considered in addition to, rather than as a substitute for, net income (loss).

• Net Adjusted EBITDA Margin: Adjusted EBITDA divided by revenue net of pass-through interchange revenue. Net Adjusted EBITDA Margin should be considered in addition to, rather than as a substitute for, net income (loss).

• Diluted EPS adjusted for non-cash and significant transaction related items: diluted EPS plus tax effected significant transaction related items, amortization of acquired intangibles and software, and non-cash stock-based compensation. Diluted EPS adjusted for non-cash and significant transaction related items should be considered in addition to, rather than as a substitute for, diluted EPS.

• Recurring Revenue: revenue from software as a service and platform as a service fees and maintenance fees. Recurring revenue should be considered in addition to, rather than as a substitute for, total revenue.

• ARR: New annual recurring revenue expected to be generated from new accounts, new applications, and add-on sales bookings contracts signed in the period.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. Generally, forward-looking statements do not relate strictly to historical or current facts and may include words or phrases such as “believes,” “will,” “expects,” “anticipates,” “intends,” and words and phrases of similar impact. The forward-looking statements are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements in this press release include, but are not limited to: (i) our encouragement by the progress the team is making against ACI’s strategy, our focus on execution, including driving our key strategic initiatives and investing in the business to position the company for high-quality, profitable long term growth, and (ii) statements regarding Q3 2024 and full year 2024 revenue and adjusted EBITDA financial guidance.

All of the foregoing forward-looking statements are expressly qualified by the risk factors discussed in our filings with the Securities and Exchange Commission. Such factors include, but are not limited to, increased competition, business interruptions or failure of our information technology and communication systems, security breaches or viruses, our ability to attract and retain senior management personnel and skilled technical employees, future acquisitions, strategic partnerships and investments, divestitures and other restructuring activities, implementation and success of our strategy, impact if we convert some or all on-premise licenses from fixed-term to subscription model, anti-takeover provisions, exposure to credit or operating risks arising from certain payment funding methods, customer reluctance to switch to a new vendor, our ability to adequately defend our intellectual property, litigation, consent orders and other compliance agreements, our offshore software development activities, risks from operating internationally, including fluctuations in currency exchange rates, events in eastern Europe and the Middle East, adverse changes in the global economy, compliance of our products with applicable legislation, governmental regulations and industry standards, the complexity of our products and services and the risk that they may contain hidden defects, complex regulations applicable to our payments business, our compliance with privacy and cybersecurity regulations, exposure to unknown tax liabilities, changes in tax laws and regulations, consolidations and failures in the financial services industry, volatility in our stock price, demand for our products, failure to obtain renewals of customer contracts or to obtain such renewals on favorable terms, delay or cancellation of customer projects or inaccurate project completion estimates, impairment of our goodwill or intangible assets, the accuracy of management’s backlog estimates, the cyclical nature of our revenue and earnings and the accuracy of forecasts due to the concentration of revenue-generating activity during the final weeks of each quarter, restrictions and other financial covenants in our debt agreements, our existing levels of debt, events outside of our control including natural disasters, wars, and outbreaks of disease, and revenues or revenue mix. For a detailed discussion of these risk factors, parties that are relying on the forward-looking statements should review our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q.

ACI WORLDWIDE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited and in thousands)
	June 30, 2024			December 31, 2023
ASSETS
Current assets
Cash and cash equivalents	$	156,983		$	164,239
Receivables, net of allowances		369,171			452,337
Settlement assets		792,745			723,039
Prepaid expenses		30,485			31,479
Other current assets		31,826			35,551
Total current assets		1,381,210			1,406,645
Noncurrent assets
Accrued receivables, net		290,348			313,983
Property and equipment, net		34,943			37,856
Operating lease right-of-use assets		31,119			34,338
Software, net		100,200			108,418
Goodwill		1,226,026			1,226,026
Intangible assets, net		178,601			195,646
Deferred income taxes, net		61,230			58,499
Other noncurrent assets		60,995			63,328
TOTAL ASSETS	$	3,364,672		$	3,444,739
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	48,798		$	45,964
Settlement liabilities		792,166			721,164
Employee compensation		33,446			53,892
Current portion of long-term debt		34,892			74,405
Deferred revenue		72,659			59,580
Other current liabilities		62,160			82,244
Total current liabilities		1,044,121			1,037,249
Noncurrent liabilities
Deferred revenue		19,292			24,780
Long-term debt		973,121			963,599
Deferred income taxes, net		41,052			40,735
Operating lease liabilities		25,237			29,074
Other noncurrent liabilities		25,093			25,005
Total liabilities		2,127,916			2,120,442
Commitments and contingencies
Stockholders’ equity
Preferred stock		—			—
Common stock		702			702
Additional paid-in capital		718,559			712,994
Retained earnings		1,418,103			1,394,967
Treasury stock		(786,526)			(674,896)
Accumulated other comprehensive loss		(114,082)			(109,470)
Total stockholders’ equity		1,236,756			1,324,297
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	3,364,672		$	3,444,739

ACI WORLDWIDE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands, except per share amounts)
	Three Months Ended June 30,						Six Months Ended June 30,
		2024			2023			2024			2023
Revenues
Software as a service and platform as a service	$	235,399		$	209,676		$	451,131		$	414,606
License		65,582			44,671			95,555			63,002
Maintenance		48,733			51,391			96,487			101,494
Services		23,765			17,587			46,325			33,899
Total revenues		373,479			323,325			689,498			613,001
Operating expenses
Cost of revenue (1)		203,238			181,343			394,345			359,897
Research and development		35,410			35,265			70,403			72,383
Selling and marketing		28,551			33,289			55,301			68,724
General and administrative		24,993			31,472			50,993			62,854
Depreciation and amortization		27,586			31,436			55,195			62,975
Total operating expenses		319,778			312,805			626,237			626,833
Operating income (loss)		53,701			10,520			63,261			(13,832)
Other income (expense)
Interest expense		(18,471)			(19,909)			(37,481)			(38,801)
Interest income		3,953			3,458			7,962			6,963
Other, net		1,156			(4,092)			(869)			(7,487)
Total other income (expense)		(13,362)			(20,543)			(30,388)			(39,325)
Income (loss) before income taxes		40,339			(10,023)			32,873			(53,157)
Income tax expense (benefit)		9,452			(3,313)			9,737			(14,139)
Net income (loss)	$	30,887		$	(6,710)		$	23,136		$	(39,018)
Income (loss) per common share
Basic	$	0.29		$	(0.06)		$	0.22		$	(0.36)
Diluted	$	0.29		$	(0.06)		$	0.22		$	(0.36)
Weighted average common shares outstanding
Basic		105,395			108,455			106,097			108,306
Diluted		106,166			108,455			106,815			108,306
(1) The cost of revenue excludes charges for depreciation and amortization.

ACI WORLDWIDE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited and in thousands)
	Three Months Ended June 30,						Six Months Ended June 30,
		2024			2023			2024			2023
Cash flows from operating activities:
Net income (loss)	$	30,887		$	(6,710)		$	23,136		$	(39,018)
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Depreciation		3,564			6,960			7,195			13,091
Amortization		24,022			24,476			48,000			49,884
Amortization of operating lease right-of-use assets		2,431			3,724			4,999			6,491
Amortization of deferred debt issuance costs		662			1,377			1,598			2,492
Deferred income taxes		510			(12,259)			1,516			(22,641)
Stock-based compensation expense		10,720			5,414			18,819			10,715
Other		(756)			601			(2,067)			311
Changes in operating assets and liabilities:
Receivables		(27,671)			(7,104)			99,598			81,856
Accounts payable		5,297			(646)			4,849			(1,954)
Accrued employee compensation		6,569			10,965			(19,884)			(4,628)
Deferred revenue		(5,590)			2,498			8,317			12,700
Other current and noncurrent assets and liabilities		4,372			(11,856)			(17,818)			(51,791)
Net cash flows from operating activities		55,017			17,440			178,258			57,508
Cash flows from investing activities:
Purchases of property and equipment		(1,746)			(2,318)			(4,954)			(4,576)
Purchases of software and distribution rights		(4,442)			(8,540)			(19,024)			(15,021)
Net cash flows from investing activities		(6,188)			(10,858)			(23,978)			(19,597)
Cash flows from financing activities:
Proceeds from issuance of common stock		704			719			1,397			1,426
Proceeds from exercises of stock options		277			2,791			752			2,869
Repurchase of stock-based compensation awards for tax withholdings		(3,037)			(319)			(6,339)			(3,320)
Repurchases of common stock		(57,159)			—			(119,674)			—
Proceeds from revolving credit facility		—			5,000			164,000			55,000
Repayment of revolving credit facility		—			—			(152,000)			(45,000)
Proceeds from term portion of credit agreement		—			—			500,000			—
Repayment of term portion of credit agreement		(9,375)			(19,475)			(538,448)			(34,081)
Payments on or proceeds from other debt, net		(5,975)			(6,160)			(8,669)			(11,830)
Payments for debt issuance costs		—			(2,160)			(5,141)			(2,160)
Net increase (decrease) in settlement assets and liabilities		12,782			(21,253)			(6,151)			(24,087)
Net cash flows from financing activities		(61,783)			(40,857)			(170,273)			(61,183)
Effect of exchange rate fluctuations on cash		(1,024)			2,870			1,290			5,427
Net decrease in cash and cash equivalents		(13,978)			(31,405)			(14,703)			(17,845)
Cash and cash equivalents, including settlement deposits, beginning of period		238,096			228,232			238,821			214,672
Cash and cash equivalents, including settlement deposits, end of period	$	224,118		$	196,827		$	224,118		$	196,827
Reconciliation of cash and cash equivalents to the Consolidated Balance Sheets
Cash and cash equivalents	$	156,983		$	132,391		$	156,983		$	132,391
Settlement deposits		67,135			64,436			67,135			64,436
Total cash and cash equivalents	$	224,118		$	196,827		$	224,118		$	196,827

	Three Months Ended June 30,						Six Months Ended June 30,
Adjusted EBITDA (millions)		2024			2023			2024			2023
Net income (loss)	$	30.9		$	(6.7)		$	23.1		$	(39.0)
Plus:
Income tax expense (benefit)		9.4			(3.3)			9.7			(14.1)
Net interest expense		14.5			16.4			29.5			31.8
Net other (income) expense		(1.1)			4.1			0.9			7.5
Depreciation expense		3.6			7.0			7.2			13.1
Amortization expense		24.0			24.5			48.0			49.9
Non-cash stock-based compensation expense		10.7			5.4			18.8			10.7
Adjusted EBITDA before significant transaction-related expenses	$	92.0		$	47.4		$	137.2		$	59.9
Significant transaction-related expenses:
Cost reduction strategies		0.4			7.6			3.0			15.9
European datacenter migration		—			1.2			—			2.2
Other		0.4			1.2			0.7			4.3
Adjusted EBITDA	$	92.8		$	57.4		$	140.9		$	82.3
Revenue, net of interchange:
Revenue	$	373.5		$	323.3		$	689.5		$	613.0
Interchange		124.2			106.1			236.6			212.3
Revenue, net of interchange	$	249.3		$	217.2		$	452.9		$	400.7
Net Adjusted EBITDA Margin		37 %			26 %			31 %			21 %

	Three Months Ended June 30,						Six Months Ended June 30,
Segment Information (millions)		2024			2023			2024			2023
Revenue
Banks	$	143.7		$	117.5		$	249.1		$	205.5
Merchants		38.0			36.5			73.7			71.3
Billers		191.8			169.3			366.7			336.2
Total	$	373.5		$	323.3		$	689.5		$	613.0
Recurring Revenue
Banks	$	56.7		$	57.4		$	111.5		$	113.0
Merchants		35.6			34.4			69.4			66.9
Billers		191.8			169.3			366.7			336.2
Total	$	284.1		$	261.1		$	547.6		$	516.1
Segment Adjusted EBITDA
Banks	$	79.2		$	51.6		$	120.9		$	76.3
Merchants		15.4			9.9			26.0			16.5
Billers		37.4			31.2			68.2			60.9

	Three Months Ended June 30,
	2024						2023
EPS Impact of Non-cash and Significant Transaction-related Items (millions)	EPS Impact			$ in Millions (Net of Tax)			EPS Impact			$ in Millions (Net of Tax)
GAAP net income (loss)	$	0.29		$	30.9		$	(0.06)		$	(6.7)
Adjusted for:
Significant transaction-related expenses		0.01			0.7			0.07			7.7
Amortization of acquisition-related intangibles		0.06			6.3			0.06			6.4
Amortization of acquisition-related software		0.03			3.3			0.04			3.8
Non-cash stock-based compensation		0.08			8.1			0.04			4.1
Total adjustments	$	0.18		$	18.4		$	0.21		$	22.0
Diluted EPS adjusted for non-cash and significant transaction-related items	$	0.47		$	49.3		$	0.15		$	15.3

	Six Months Ended June 30,
	2024						2023
EPS Impact of Non-cash and Significant Transaction-related Items (millions)	EPS Impact			$ in Millions (Net of Tax)			EPS Impact			$ in Millions (Net of Tax)
GAAP net income (loss)	$	0.22		$	23.1		$	(0.36)		$	(39.0)
Adjusted for:
Significant transaction-related expenses		0.03			2.9			0.16			17.1
Amortization of acquisition-related intangibles		0.12			12.7			0.12			12.8
Amortization of acquisition-related software		0.06			6.7			0.08			8.2
Non-cash stock-based compensation		0.13			14.3			0.07			8.1
Total adjustments	$	0.34		$	36.6		$	0.43		$	46.2
Diluted EPS adjusted for non-cash and significant transaction-related items	$	0.56		$	59.7		$	0.07		$	7.2

	Three Months Ended June 30,						Six Months Ended June 30,
Recurring Revenue (millions)		2024			2023			2024			2023
SaaS and PaaS fees	$	235.4		$	209.7		$	451.1		$	414.6
Maintenance fees		48.7			51.4			96.5			101.5
Recurring Revenue	$	284.1		$	261.1		$	547.6		$	516.1

New Bookings (millions)1	Three Months Ended June 30,						TTM Ended June 30,
		2024			2023			2024			2023
Annual recurring revenue (ARR) bookings	$	13.1		$	12.7		$	68.8		$	90.7
License and services bookings		80.7			55.5			268.5			206.5
1 Amounts for the TTM ended June 30, 2023 are adjusted for the divestiture of Corporate Online Banking in September 2022

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240801719627/en/

Investor Relations

John Kraft

SVP, Head of Strategy and Finance

239-403-4627 / john.kraft@aciworldwide.com

Source: ACI Worldwide

FAQ

What was ACI Worldwide's revenue growth in Q2 2024?

ACI Worldwide (ACIW) reported a 16% year-over-year revenue growth in Q2 2024, reaching $373 million.

How much did ACI Worldwide's adjusted EBITDA increase in Q2 2024?

ACI Worldwide's adjusted EBITDA increased by 62% in Q2 2024 compared to the same period in 2023, reaching $93 million.

What is ACI Worldwide's updated revenue guidance for full-year 2024?

ACI Worldwide (ACIW) raised its full-year 2024 revenue guidance to a range of $1.557 billion to $1.591 billion.

How many shares did ACI Worldwide repurchase in Q2 2024?

ACI Worldwide (ACIW) repurchased 1.7 million shares for approximately $57 million in Q2 2024.

What was ACI Worldwide's cash flow from operating activities in Q2 2024?

ACI Worldwide's cash flow from operating activities in Q2 2024 was $55 million, up 215% from Q2 2023.