CoreCard (CCRD) Q1 2025 Earnings Call May 08, 2025 11:00 AM ET Company Participants Matt White - CFO & Corporate SecretaryLeland Strange - Chairman and CEOHal Goetsch - Managing DirectorAvram Fisher - CIO & Founder Operator Greetings. Welcome to CoreCard's Q1 twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. Please note this conference is being recorded. I will now turn the conference over ...

Financial Highlights for the three months ended March 31, 2025 EXHIBIT 99.1 CoreCard Corporation Reports First Quarter 2025 Results NORCROSS, Ga., May 08, 2025 (GLOBE NEWSWIRE) -- CoreCard Corporation (NYSE: CCRD) ("CoreCard" or the "Company"), the leading provider of innovative credit technology solutions and processing services to the financial technology and services market, announced today its financial results for the quarter ended March 31, 2025. "Overall revenue of $16.7 million in the first quarter ...

NORCROSS, Ga., May 08, 2025 (GLOBE NEWSWIRE) -- CoreCard Corporation (NYSE: CCRD) (“CoreCard” or the “Company”), the leading provider of innovative credit technology solutions and processing services to the financial technology and services market, announced today its financial results for the quarter ended March 31, 2025. "Overall revenue of $16.7 million in the first quarter exceeded our expectations, reflecting year-over-year total revenue growth of 28%, primarily driven by higher professional services r ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period fromto Commission file number 1-9330 CORECARD CORPORATION (Exact name of registrant as specified in its charter) | Georgia | 58-1964787 | | --- | --- | | (State or other juris ...

NORCROSS, Ga., April 24, 2025 (GLOBE NEWSWIRE) -- CoreCard Corporation (NYSE: CCRD), the leading provider of innovative credit technology solutions and processing services to the financial technology and services market, intends to hold an investor conference call on May 8, 2025, at 11:00 A.M. Eastern Time in conjunction with the company’s earnings release for the quarter ended March 31, 2025. The company plans to issue a press release with the financial results for the period before the market opens on May ...

Revenue and Financial Performance - Total revenue for the year ended December 31, 2024, was $57,399,000, representing a 2% increase over 2023[64]. - Total net revenue for 2024 was $57,399 million, a 2.5% increase from $56,004 million in 2023[148]. - Revenue from services was $54,559,000 in 2024, a 1% increase from 2023 revenue of $54,210,000[66]. - Revenue from products, including software license fees, was $2,840,000 in 2024, an increase of 58% from 2023 revenue of $1,794,000[66]. - Goldman Sachs Group, Inc. represented 62% of consolidated revenues in 2024, down from 67% in 2023[58]. - Revenue from the United States was $54,892,000 in 2024, up from $53,915,000 in 2023, reflecting a growth of 1.8%[208]. - License revenue increased to $2,840,000 in 2024 from $1,794,000 in 2023, representing a growth of 58.3%[206]. - Professional services revenue decreased to $26,015,000 in 2024 from $28,237,000 in 2023, a decline of 7.8%[206]. - Processing and maintenance revenue increased to $24,034,000 in 2024 from $22,439,000 in 2023, a growth of 7.1%[206]. - Net income for 2024 reached $5,448 million, up 60.4% from $3,395 million in 2023[150]. - Earnings per share (EPS) for 2024 was $0.68, compared to $0.40 in 2023, reflecting a 70% increase[148]. - Operating income increased to $6,539 million in 2024, a 23.1% rise from $5,311 million in 2023[148]. - Total comprehensive income for 2024 was $5,323 million, compared to $3,488 million in 2023, marking a 52.7% increase[150]. Expenses and Costs - Total cost of revenue was 62% of total revenue for the twelve months ended December 31, 2024, down from 65% in 2023, primarily due to higher license revenue[67]. - Total operating expenses increased primarily due to higher development expenses and a 31% increase in marketing expenses in 2024[68]. - The total cost of revenue for 2024 was $35,770 million, a decrease from $36,571 million in 2023[148]. - The company reported a depreciation expense of $3,566 million in 2024, down from $6,256 million in 2023[156]. - Amortization expense related to intangible assets was $34,000 in 2024, down from $133,000 in 2023, with the carrying amount of intangible assets net of accumulated amortization at $0 in 2024[167]. - Stock-based compensation expense increased significantly to $1,308,000 in 2024 from $150,000 in 2023[196]. Cash Flow and Investments - Cash balance decreased to $19,481,000 at December 31, 2024, from $26,918,000 at December 31, 2023, with cash provided by operations dropping to $5,801,000 from $16,810,000[71]. - The company invested $2,186,000 in publicly traded securities in 2024, compared to $2,521,000 in 2023[72]. - Cash used for acquiring computer equipment and software development for a new processing platform was $4,908,000 in 2024[73]. - The company has approximately $7.1 million of authorized share repurchases remaining at December 31, 2024[49]. - The company repurchased $7,638 million of common stock in 2024, compared to $3,653 million in 2023[156]. - The company has been audited by Nichols, Cauley and Associates, LLC since 2015, ensuring compliance with PCAOB standards[142]. Workforce and Operations - CoreCard maintains a workforce of approximately 1,000 employees across its offshore operations in India, Romania, the UAE, and Colombia for software development and processing services support[34]. - The company operates in multiple countries, with significant personnel located in India, Romania, the UAE, and Colombia[62]. - The company’s facilities are deemed adequate for the foreseeable future, with leases covering approximately 27,000 square feet in Norcross, Georgia, and additional locations in Colombia, UAE, and India[43]. Intellectual Property and Compliance - The company has one U.S. patent covering aspects of its core software platform and actively protects its intellectual property through trademarks and trade secrets[33]. - CoreCard's software products help customers comply with various governmental regulations, including the Bank Secrecy Act and Anti-Money Laundering regulations[28]. - The company has established multiple secure processing data centers and is compliant with Payment Card Industry (PCI) Data Security Standards[20]. Risks and Challenges - The transition of Goldman Sachs' General Motors co-branded credit card to a new issuer is expected to close in 2025, potentially impacting future revenues[96]. - Weakness in global financial markets may lead to delays in software purchases by potential customers[96]. - Increased federal and state regulations could result in losses and additional cash requirements for the company[103]. - Delays in software development projects may lead to postponed implementations and delayed payments, increasing costs and reducing revenue[103]. - The company faces risks from security breaches that could expose confidential customer information and lead to material losses[103]. - Competitive pressures may cause prospective customers to choose alternative product solutions, resulting in lower revenue and profits[103]. Financial Position and Equity - Total assets decreased from $63,826,000 in 2023 to $62,338,000 in 2024, a decline of approximately 2.34%[145]. - Cash and cash equivalents decreased by 27.06% from $26,918,000 in 2023 to $19,481,000 in 2024[145]. - Accounts receivable increased by 36.00% from $7,536,000 in 2023 to $10,235,000 in 2024[145]. - Total current liabilities decreased from $9,540,000 in 2023 to $8,452,000 in 2024, a reduction of approximately 11.43%[145]. - Stockholders' equity decreased from $52,704,000 in 2023 to $51,697,000 in 2024, a decline of approximately 1.91%[145]. - Additional paid-in capital increased from $16,621,000 in 2023 to $17,928,000 in 2024, an increase of approximately 7.86%[145]. - Treasury stock increased from $20,359,000 in 2023 to $27,997,000 in 2024, an increase of approximately 37.73%[145]. - Accumulated income increased from $56,320,000 in 2023 to $61,768,000 in 2024, an increase of approximately 9.73%[145]. Future Outlook - The company anticipates steady growth in its Processing Services business in 2025 and future years, driven by increased demand for prepaid and credit card processing[20]. - The company does not expect to pay any regular or special dividends in the foreseeable future, focusing on liquidity and potential opportunities to expand its FinTech business[75]. - The effective tax rate decreased to 21.1% in 2024 from 24.5% in 2023, with expectations for future rates to be within 24-26%[70]. - The company is evaluating the impact of adopting ASU 2024-03, effective for fiscal years beginning after December 15, 2026, which requires additional expense category disclosures[203].

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $14.8 million, representing a 22% year-over-year increase [6] - Services revenue, excluding license revenue, increased by 10% year-over-year in Q4, with full-year growth of 1% [6] - Income from operations for Q4 2024 was $2.1 million, compared to $0.4 million in Q4 2023, resulting in an operating margin of 14% versus 3% in the same period last year [9] - Earnings per diluted share for Q4 2024 was $0.24, up from $0.06 in Q4 2023, with full-year diluted EPS at $0.67 compared to $0.40 in 2023 [11] Business Line Data and Key Metrics Changes - License revenue for Q4 2024 was $1.4 million, while Professional services revenue was $6.2 million and Processing and Maintenance revenue was $6.1 million [6] - Processing and Maintenance revenues grew by 11% year-over-year in Q4, with full-year growth of 7% [6] - Revenue growth, excluding the largest customer and the impact from ParkMobile and the legacy Kabbage business, was 29% in Q4 and 33% for the full year [8] Market Data and Key Metrics Changes - The company has around 15 million revolving credit cards on its platform, significantly ahead of other modern processors [48][50] - The company expects to onboard new customers primarily in the processing side rather than the licensing side, indicating a shift in focus [39] Company Strategy and Development Direction - The company plans to continue investing in its new platform, CoreFinity, which incorporates advanced technologies and is architected for the cloud [26] - The management is exploring potential acquisition interest while also preparing for the possibility of remaining independent [27][29] - The company aims for revenue growth of 30% to 40% excluding its largest customer for 2025 [19] Management's Comments on Operating Environment and Future Outlook - Management noted that revenue and profits exceeded expectations due to unexpected license revenue, but they do not anticipate further surprises in this area for 2025 [17] - The company expects total revenues for 2025 to be between $60 million and $64 million, with no planned license fees [13][35] - Management expressed confidence in maintaining the processing relationship with Goldman Sachs, despite potential changes in the issuing business [30] Other Important Information - The company generated operating cash flows of $5.8 million in 2024 and plans to use excess cash for investments [12] - The tax rate for fiscal 2024 was 21.1%, with expectations for an ongoing rate between 24% and 26% [10] Q&A Session Summary Question: Is there a planned license fee expected in 2025? - Management confirmed that there are no planned license fees for 2025 [35][36] Question: What are the expected costs to run the business in 2025? - Management indicated that while some increases in costs are expected, they do not anticipate significant increases in operating expenses year-over-year [46] Question: How many cards are currently on the platform? - Management confirmed that there are around 15 million revolving credit cards on the platform, which is significantly higher than other modern processors [48][50]

Revenue Performance - Total revenue for Q4 2024 was $14.8 million, a 22% increase compared to Q4 2023, while full year revenue was $57.4 million, up 2% from 2023[3] - Processing and maintenance revenue grew by 11% year-over-year in Q4 2024, and full year growth was 7% compared to 2023[2] - License revenue for Q4 2024 was $1.42 million, while professional services revenue was $6.21 million, and processing and maintenance revenue was $6.12 million[3] - The company anticipates full year 2025 revenue growth of 30-40% excluding its largest customer[2] Net Income and Earnings - Net income for Q4 2024 was $1.9 million, compared to $0.5 million in Q4 2023, with full year net income at $5.4 million, up from $3.4 million[4] - Earnings per diluted share for Q4 2024 was $0.24, compared to $0.06 in Q4 2023, while full year earnings per diluted share increased to $0.67 from $0.40[4] - GAAP net income for Q4 2024 was $1,926,000, compared to $486,000 in Q4 2023, representing a significant increase[23] - Adjusted net income for the twelve months ended December 31, 2024, was $6,429,000, up from $4,507,000 in 2023, reflecting a year-over-year growth of 42.5%[23] - Adjusted Diluted EPS increased to $0.28 in Q4 2024 from $0.06 in Q4 2023, marking a substantial rise of 366.7%[23] EBITDA and Operational Efficiency - Adjusted EBITDA for Q4 2024 was $3.3 million, up from $1.6 million in Q4 2023, with full year adjusted EBITDA at $11.4 million compared to $11.7 million in the prior year[6] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $11,413,000, slightly down from $11,717,000 in 2023, indicating a decrease of 2.6%[23] - Adjusted EBITDA Margin improved to 22.4% in Q4 2024 from 13.5% in Q4 2023, showcasing enhanced operational efficiency[23] Shareholder Equity and Assets - Total current assets decreased to $40.2 million as of December 31, 2024, from $44.5 million in 2023[16] - Total stockholders' equity as of December 31, 2024, was $51.7 million, down from $52.7 million in 2023[17] - Weighted-average shares outstanding decreased to 8,036,000 in Q4 2024 from 8,389,000 in Q4 2023, indicating a reduction in share dilution[23] Compensation and Tax Expenses - Share-based compensation for the twelve months ended December 31, 2024, was $1,308,000, compared to $150,000 in 2023, reflecting a significant increase in equity compensation[23] - Income tax expense for the twelve months ended December 31, 2024, was $1,456,000, compared to $1,102,000 in 2023, representing an increase of 32.2%[23] Investment Performance - Investment loss for the twelve months ended December 31, 2024, was $427,000, down from $1,579,000 in 2023, indicating improved investment performance[23] Future Outlook - For Q1 2025, the company expects total revenue between $14.4 million and $15.0 million, and earnings per share between $0.15 and $0.19[2]

Core Points - CoreCard Corporation reported a total revenue of $14.8 million for Q4 2024, representing a 22% increase compared to Q4 2023, and a full-year revenue of $57.4 million, up 2% from 2023 [2][3] - The company experienced a year-over-year growth in processing and maintenance revenue of 11% for Q4 2024 and 7% for the full year [2][3] - CoreCard's net income for Q4 2024 was $1.9 million, compared to $0.5 million in Q4 2023, with full-year net income reaching $5.4 million, up from $3.4 million in the prior year [4][5] Revenue Breakdown - For Q4 2024, revenue from licenses was $1.42 million, professional services generated $6.21 million, processing and maintenance brought in $6.12 million, and third-party revenue was $1.07 million [3] - For the full year 2024, license revenue totaled $2.84 million, professional services revenue was $26.02 million, processing and maintenance revenue reached $24.03 million, and third-party revenue amounted to $4.51 million [3] Earnings Performance - Earnings per diluted share for Q4 2024 was $0.24, compared to $0.06 in Q4 2023, while full-year earnings per diluted share increased to $0.67 from $0.40 [4] - Adjusted earnings per diluted share for Q4 2024 was $0.28, up from $0.06 in the prior year, and for the full year, it was $0.79 compared to $0.53 [5] Future Guidance - For Q1 2025, the company expects total revenue between $14.4 million and $15.0 million, with earnings per share projected between $0.15 and $0.19 [2] - For the full fiscal year 2025, CoreCard reaffirms its guidance of total revenue between $60 million and $64 million, with earnings per share expected between $0.88 and $0.94, and anticipates revenue growth of 30-40% excluding its largest customer [2]

Core Points - CoreCard Corporation will hold an investor conference call on February 20, 2025, at 11:00 A.M. Eastern Time, coinciding with the earnings release for the quarter ended December 31, 2024 [1] - A press release with financial results will be issued before the market opens on February 20, 2025 [1] - Investors can access the conference call via a webcast or by dialing a provided phone number, and a Q&A session will be included [2] - A transcript of the call will be available on the company's investor website after the call [2] Company Overview - CoreCard Corporation is a leading provider of credit technology solutions and processing services in the financial technology sector [3] - The company offers a card issuing platform designed for future global transactions in a digital environment, emphasizing technological innovation and sustainable growth [3] - CoreCard serves major companies and financial institutions, providing real-time transaction capabilities through a reliable platform that operates on both private and cloud technology infrastructure [3]