CCRD - Earnings call 4 2023 | CoreCard Corporation

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Operator

Greetings, and welcome to the CoreCard Q4 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Matt White, CFO. Thank you. Please go ahead.

Matthew White

morning, good and you, everyone. Thank the With and Leland Chairman is of me CoreCard on CEO Corporation. Strange, call He will add the some additional comments and my remarks. conclusion answer prepared of questions at

are the to Before uncertainty I'd you risk statements understand its forward-looking remind involve call, and help we'll that Corporation and may XXXX environment. materially factors everyone other operations in statements I from to be like affect factors, could that that expectations. business Factors Form start, results with differ CoreCard and filings cause to a our certain making our of during future the subsequent These number included our including actual SEC, filings. XX-K

that certain We'll included our diluted measures, of which non-GAAP affect underlying non-GAAP operational adjusted performance. items earnings are our including tables the financial reconciliation also detailed in These comparability is discuss EPS, release. measures with certain adjusted for

quarter revenue XX% million. line of $X.X for consisted $X.X in and As our basis quarter a our press revenue, in quarter the a release, was fourth full maintenance year $XX.X and revenue processing continued of million services revenue in our results of with professional for of with year-over-year. and total Total million, revenue excluding processing revenue. growth we license on maintenance the million, the decreased X%. were revenue, and of defined in Services components quarter third-party decrease revenue fourth expectations, The year-over-year our revenue fourth $X.X of year-over-year noted XX% with as growth

services was largest Goldman personnel year with for demand decline on grew driven a and The by customer. fourth from basis revenue the lower professional XX%. of revenues quarter our maintenance Processing in growth Sachs, full X% in development year-over-year

$X from through is monthly June XX, of Goldman, As services XXXX. a in we to services fixed we managed included fee which which a is million, professional converted received revenue the reminder, contracted

about of we XX% legacy impact fourth excluding approximately XXXX, was on contracted the the $X and XXXX. a fourth excluding and million June basis and XX% and ParkMobile, XX, full growth, business, talked Goldman in is quarter quarter, in Revenue the is through from which year. the customer which from the runoff, revenue was Maintenance in that year-over-year largest the for quarter currently last on Kabbage our

We months. continue to managers both program and we Vervent live we such and with with that customers directly go onboard Cardless. progress as Deserve, new have currently various through expect customers, We implementations to the coming have and new in multiple partnerships

account initial issuing months to new typically month to our base their they're per in However, of mostly prudently, XX credit, initially these remember build their of XX $XX,XXX customers paying fees the minimum $XX,XXX around program.

to customers a business become new pace. our their time they measured more as grow at own significant expect We over

full some for million for to quarter turning million compared XXXX. Now and $X quarter the of the of of for additional fourth fourth the XXXX. operations year to Income from highlights from operations quarter $X.X income fourth for XXXX was

for the operating hiring $X.X margin income lower new are in Those in XXXX fourth the statement billed our year. of full amounts quarter in for year. primarily license services our year-over-year. quarter in period margin on our to decline expenses income development XX% statement. driven investments same revenue professional The continued compared million operating of operating was platform, X% platform Our India million our an fourth included of last was the by year-over-year and The and and $X.X impact in was new for the our of XXXX margin

and respectively. XX.X%, XXXX XXXX tax and XX.X% Fiscal rate was

was XXXX. our the XX%. to investments to share of full for to write-down $X.XX diluted Full $X.XX was for adjusted $X.XX excluding the fourth between Adjusted XX% impact fourth compared $X.XX year the diluted rate XXXX. We to of EPS of Earnings for expect one $X.XX the diluted of full and our quarter for EPS a XXXX. year compared quarter per for $X.XX XXXX. compared year be $X.XX tax XXXX ongoing quarter, EPS was XXXX method was year for $X.XX the XXXX QX equity quarter Full diluted compared to the

generated the $X.X $X.X including repurchases operating flows share fourth cash We of used quarter share on in $XX.X We of significant of in XXXX, in million. XXXX million XXXX. million repurchases

XXXX, excess and sheet in to from balance at cash as back flow we generated operating have cash price buying current continue to operations continue investing use levels. shares, excess We cash We to XX, continue our in and this to expect and of especially on cash our December XXXX. generating platform plan new

we For revenue approximately and approximately license $X.X second in of be services coming million, revenue flat XXXX, expect the half. to

of expect growth excluding Kabbage, and Within is legacy grow to continue our add continued million customers. We be the and processing in revenue excluding million. impact expect professional from XXXX We to of customers, maintenance largest which to customer services we the our approximately as customers $X.X XX%. and in ParkMobile and growth as of the revenue services, range $X anticipate quarter we in services new first all

to with turn I'll over that, And it Leland.

James Strange

Matt. Thanks,

comments are say be to questions me planning because Let just going start now your short. my

license comment for of the me revenue let on lack First, quarter. the

our That's growth program extrapolate a or mistake. the and largest the or the million or pundits it And the you revenue none. have of growth logic that had been or to just about of lack trying comes first think maybe of year. translate and There don't the failure buckets the in of X bad I card cards measure half we of customer. we license to know, success new As in of most expect success

for that the to their if more CoreCard total it's cards process. than license? success. The but processed their license number on license from revenue no And of by licensee brand program with split our active there and not to CoreCard. it program, processes be is X be our the they continues new software continues Well, grow individual are How largest program, phenomenal can that a

become example, would lot other also in that program. definition, on possibly should For Also slow be the has breakfast, cardholders they inactive. unused their the that card. daily books I see. The of the say and system lunch most is that could of number probably the that the lines could and it transactions. transactions should program here, on Depending dinner program revenues the will programs cars, of old plus say a same for of the love They license the other one use however, one mislead day, average cards. active growth on cards any large some largest on by the new if way of clean would one canceling revenue

the So itself it's rate. though in is good not have at a we a new growing very, very good program. revenue first And half, license the even program may

I XX%. check XXXX comment in services is Matt's me -- statement let the on about for growth that adjusted projected

rate, business not slow projected, grow squeeze growth or he's based the up I'm end this in that that happy right with that being hopeful Now on we may some we're some with. business can but range. but than faster in new of probably will year it other working I'm currently them

in prioritizing ] [ excellent providing their partner of past, our a most Well, was for in development have much business that us. good service largest growth we've of in business we you as we the to and spent plans. Third, been historically not and enable were finding recognized know, position that

have of a capable table are to plans processors keenly that issuing changing. business. so consultants will we we're program. the be Now sales, handling beef still the also which and their growth adding their add at up may clients marketing of voice to have are true [indiscernible] that. But the need more manage changed, potential that still aware that We the their certain in and we discussions, potential we'll It's larger make

to the I expenses. building add think continue anticipated. our way, called service at not we'll effort next-generation offer in from that growing headcount we customers. that be areas the are We'll inside same core business now while for introduced the but first our recently we with own XXXX, as lowering processing the our By the we'll had the time, environment. to ], software, new platform that's we've [ name, a output It's CoreFinity our development into that is

into output available next some year until of platform when be will go of half from finish we processing second of not current the environment the it new and Some development will the our it.

the revenues healthier have forward. have do We customer are bump areas. focused revenue customer Goldman contracted I've concentration, that's a towards recurring me we're -- guess, that maintenance those on We growth Let that some continued in of mentioned, adding with just revenues just as going in processing The road and the doing they and And and partly visibility. today summarize are just now I do of expense Goldman. we're increased outside nature. reduced a mix in longer-term

company, that's have As and the we cash positive. course, success sure think. I then, flow measure on, our a we coming Make grow of the to is continue the new of revenue, non-Goldman platform for

have balance with very debt. no a We sheet strong

picture, look bigger and If despite cards at you card of to CoreCard conditions. issuance on gets paid strong economic continues globally the grow issued. is number

an fine. we're downturn, in even economic So

to Our program advantages, providers, the have levels legacy and of wins customization, they that past we on CoreCard differentiation speed, service because have not how do talk what that are one about the is so. do innovation, think and continue they pray I competition, appear although that [indiscernible] simply I'll some aspects skilled The CoreCard point, be. offer at they're competes the to customer will they flexibility, from service driven premium in

we open I'll have any. for questions, that, With it

Operator

is [Operator from of Instructions] B. Riley Today's first question Hal Goetsch Securities. coming

Harold Goetsch

just length I you, in Leland just think pace that an might know just the programs again? up And of have programs term you X you how over XXXX? that's us? the impact on discuss you Could the but could crisis what maybe I years. shaping Goldman, refresh And for had you and for banking right go of movement mentioned now? Matt, could contract gave it, you different

Matthew White

Sure. Yes.

that One back that So for running was July the -- That's professional services. And again, XXXX. services we to through there's through was month June contracts XX, that's XXXX other extended and was $X in June effective and million managed XXXX. on through contract at X, CPI software XX July renewed subject goes to July XX, the maintenance XXXX, the that, a run X, rate, increases months. X

James Strange

the the on question crisis. to banking as second So

anything. of I'm wanted I do getting somewhat finally sensing that's now where away. think slowly was uncertainty period nobody to to we're that, a going normal. back There

be overhang I card are regulators looking the that program will I I future at back everything to any year, for was think foresee there's And best the a is the hard sense can't we process our years of But program, view end ago believe the things standard. be and the unless by would good from at something that else folks from X looking their to for of fintechs. hard our regulatory they'll deviates this point, it are They're again. the middle for looking expect happens and be that the like normalizing. in the to at still looking way X side growth

Harold Goetsch

Okay. a small you for then really And one growth share spending me and for follow-up rich have buybacks. a I sheet mean balance on company.

back bought you mentioned QX. You stock in

You much a you might mentioned kind like us an break the is can opportunistic? for much how that how give XXXX, it spending on would year? of allocate you but capital to growth, Is for how out thoughts buyback? in And investment then maybe your like

James Strange

share we we to -- and price. to look these likely what allocate on happens the given we're we're we're would depend we that likely and at Well, much aggressive outlook. aggressive talking what obviously, the But partly prices future would our how folks given to in be share with see be to given the how

you So Don't guidance give. could the Matt? that's think, best probably I

Matthew White

authorization, $XX We've got room over current remaining. plenty of on million our left

won't be to in year. So all able we use X that

runway $X there's So capital spending. on of probably $X plenty it's there. the million CapEx, million to then And of between

is and that of that platform. investment our for equipment current in continued new towards platform, goes Some the some of

James Strange

at And the good of of We're because we frankly, with in the shape -- new discussed for can with no business any and was need spending cash we really discussed but buy the we, our much we're a spending development. Board, even platform flow, even both right forming increased we buyback. We will given the how rules, on now day authorization buyback, to just higher. there limited making X in decided

Operator

to participation interest the conclude today's event. for today's would everyone CoreCard. brings us does in like That We question-and-answer to end their of This and session. thank

of You your this time the and at log rest enjoy off or may lines disconnect the your webcast, day.

CoreCard (CCRD) 14 Feb 242023 Q4 Earnings call transcript