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EXHIBIT 99.2
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ATLANTA BOSTON BRUSSELS CHARLOTTE DALLAS LISBON
[S1 LOGO] LONDON LUXEMBOURG MADRID MANCHESTER PARIS
MELBOURNE ROTTERDAM SANTA CLARA SINGAPORE
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S1 CORPORATION
THIRD QUARTER TELECONFERENCE
James S. (Chip) Mahan, III, CEO
Jeff Lunsford, COO
Robert F. Stockwell, CFO
November 7, 2000
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ATLANTA BOSTON BRUSSELS CHARLOTTE DALLAS LISBON
LONDON LUXEMBOURG MADRID MANCHESTER PARIS
MELBOURNE ROTTERDAM SANTA CLARA SINGAPORE
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[S1 LOGO] FORWARD LOOKING STATEMENT
The statements contained in this presentation that are forward-looking are
based on current expectations that are subject to a number of uncertainties
and risks, and actual results may differ materially. These forward-looking
statements are not guarantees of future performance and are subject to risks
and uncertainties that could cause actual results to differ materially from
the results contemplated by the forward-looking statements. These risks and
uncertainties include, but are in no way limited to:
- the possibility that the anticipated benefits from our acquisition
transactions will not be fully realized;
- the possibility that costs or difficulties related to our integration of
acquisitions will be greater than expected;
- our dependence on the timely development, introduction and customs
acceptance of new internet services;
- rapidly changing technology and shifting demand requirements and internet
usage patterns;
- other risks and uncertainties, including the impact of competitive
services, products and prices, the unsettled conditions in the internet
and other high-technology industries and the ability to attract and
retain key personnel; and
- other risk factors as may be detailed from time to time in our public
announcements and filings with the SEC, including the Company's annual
report on Form 10-K for the year ended December 31, 1999.
In addition, nothing in the presentation should be viewed as an update or
comment on earlier forward looking statements provided by S1 Corporation. As
noted above, because actual results, performance or developments may differ
materially from forward-looking statements, S1 will not update such statements
over the course of future periods.
For questions related to this information, contact Sam Perkins, S1 Investor
Relations at (404) 812-6671.
Please contact Sandy Mitchelson at (404) 812-6426 to obtain a copy of the
Annual Report on Form 10-K.
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[S1 LOGO] AGENDA
- Third quarter financial review
- Company Restructuring
- Business Outlook
- Q&A
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[S1 LOGO] FINANCIAL RESULTS - 3Q00
in $000s, except where noted
<TABLE>
<CAPTION>
Q3 00 Q3 99 CHANGE
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Revenue $ 64,379 $ 24,799 $ 39,580
Direct Cost 36,064 15,167 20,897
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Gross margin 28,315 9,632 18,683
Sales & marketing 13,666 1,153 12,513
Product development 16,924 5,221 11,703
G&A 10,350 3,291 7,059
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EBITDA before integration cost (12,625) (33) (12,592)
Depreciation (6,536) (1,465) (5,071)
Goodwill & other non-cash charges (113,693) (107) (113,586)
Integration charges (5,055) (1,851) (3,204)
Interest income/other 1,809 777 1,032
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Net loss $ (136,100) $ (2,679) $ (133,421)
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Gross margin percent (%) 44% 39%
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EPS - EBITDA ($/share) $ (0.23) $ (0.00)
EPS ($/share) $ (2.46) $ (0.10)
</TABLE>
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[S1 LOGO] QUARTERLY YEAR OVER YEAR COMPARISON
- Total revenues up 160%
- Software licenses up 545%
- Services revenues up 186%
- Data Center revenues up 179%
- Gross margin up 194%
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[S1 LOGO] FINANCIAL RESULTS - 3Q00
in $000s, except where noted
<TABLE>
<CAPTION>
Q3 00 Q2 00 CHANGE
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Revenue $ 64,379 $ 59,084 $ 5,295
Direct Cost 36,064 32,981 3,083
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Gross margin 28,315 $ 26,103 $ 2,212
Sales & marketing 13,666 13,396 270
Product development 16,924 15,830 1,094
G&A 10,350 11,451 (1,101)
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EBITDA before integration cost (12,625) (14,574) 1,949
Depreciation (6,536) (6,129) (407)
Goodwill & other non-cash charges (113,693) (128,447) 14,754
Integration charges (5,055) (6,344) 1,289
Interest income/other 1,809 2,498 (689)
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Net loss $ (136,100) $ (152,996) $ 16,896
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Gross margin percent (%) 44% 44%
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EPS - EBITDA ($/share) $ (0.23) (0.27)
EPS ($/share) $ (2.46) $ (2.82)
</TABLE>
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[S1 LOGO] SEQUENTIAL COMPARISON
- Total revenues up 9%
- Software licenses down 5%
- Services revenues up 13%
- Data Center revenues up 9%
- Gross margin stable
- Operating expenses up 1%
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[S1 LOGO] GROSS MARGIN PERCENTAGES
<TABLE>
<CAPTION>
Q3 99 Q4 99 Q1 00 Q2 00 Q3 00
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<S> <C> <C> <C> <C> <C>
Software Licenses 96% 97% 86% 92% 92%
Professional Services 43% 29% 25% 31% 33%
Data Center (4)% 2% 4% 10% 15%
Other 22% 1% 9% 10% 14%
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Total 39% 46% 36% 44% 44%
</TABLE>
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[S1 LOGO] SEGMENT ANALYSIS
<TABLE>
<CAPTION>
Q1 Q2 Q3
--------------------------------------------------------------------
<S> <C> <C> <C>
Large Financial Institution:
Revenue $ 39,589 $ 42,161 $ 48,363
Direct Cost 28,123 27,639 30,569
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Gross margin 11,466 14,522 17,794
Sales, marketing & R&D 18,134 18,743 17,376
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Large FI Contribution (6,668) (4,221) 418
Community Bank Contribution -- 1,811 1,153
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FI Segment Contribution (6,668) (2,410) 1,571
Call Center Contribution 1,342 1,906 742
Aggregation Contribution (3,054) (2,619) (4,588)
General & admin expenses (9,351) (11,451) (10,350)
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EBITDA $ (17,731) $ (14,574) $ (12,625)
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Large FI gross margin 29% 34% 36%
</TABLE>
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[S1 LOGO] CASH & SECURITIES
<TABLE>
<CAPTION>
<S> <C>
EBITDA $ (12.6)
INTEGRATION EXPENSES (5.0)
INTEREST INCOME 1.8
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(15.8)
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INCREASE IN RECEIVABLES $ (13.1)
CAPITAL EXPENDITURES $ (13.7)
CASH BALANCE $ 197.9
INVESTMENT SECURITIES 22.6
</TABLE>
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[S1 LOGO] RECENT RESTRUCTURING
- Focus on profitable and high growth products
- Streamlined consumer oriented product lines from 3 platforms to 2
- Reorganized certain business units along product lines
- Renewed focus on accelerating EBITDA positive
- Aligned business with emerging and growing markets
- Reduced redundancies in global operations
- Renewed investment commitment to profitable products
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[S1 LOGO] SALES / MARKETING MILESTONES
- $42 million in new orders booked
- 110 NEW CLIENTS IN PRODUCTION IN Q3
- Pipeline filing up globally as a result of expansion of S1, QUP and
Edify sales forces
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ATLANTA BOSTON BRUSSELS CHARLOTTE DALLAS LISBON
[S1 LOGO] LONDON LUXEMBOURG MADRID MANCHESTER PARIS
MELBOURNE ROTTERDAM SANTA CLARA SINGAPORE
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THANK YOU FOR YOUR TIME
FOR MORE INFORMATION:
http://www.s1.com
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ATLANTA BOSTON BRUSSELS CHARLOTTE DALLAS LISBON
LONDON LUXEMBOURG MADRID MANCHESTER PARIS
MELBOURNE ROTTERDAM SANTA CLARA SINGAPORE
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[S1 LOGO] S1 END USERS, ACCOUNTS
<TABLE>
<CAPTION>
Q399 Q499 Q100 Q200 Q300
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Data Center End Users 163,000 226,000 412,000(1) 552,000 722,000
Increase over prior quarter 42% 39% 82% 34% 31%
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Worldwide S1 End Users (2) 443,500 (NA) 2.9 mm(2) 4.0+mm(2) 4.75mm(2)
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VerticalOne End Users 1,450 16,300 101,200 131,000 209,000
</TABLE>
1 - Includes the effect of transitioning approximately 100,000 end-users into
S1's Data Center at the end of March from a customer's facility.
2 - Approximate based on customer billing records, reported figures from
channel partners, and information provided by various customers and
excludes VerticalOne, Edify Call Center Technology and FRS.
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