Core Insights - The company achieved a significant milestone by crossing $10 million in Assets Under Management (AUM) in Q4 2024, marking its ninth year of operation [1] - Growth has been attributed to steady returns, an increase in client additions, and positive word of mouth, indicating a strong reputation in the market [1] Financial Performance - The company has demonstrated patient growth over the years, suggesting a long-term investment strategy that focuses on sustainable returns rather than short-term gains [1]

CoreCard Corporation (CCRD) - The company has a Zacks Rank 1 and its current year earnings estimate increased by 7% over the last 60 days [1] - CoreCard's shares gained 44 9% over the last three months compared to the S&P 500's advance of 5 3% [2] - The company possesses a Momentum Score of A [2] NRx Pharmaceuticals, Inc (NRXP) - The company has a Zacks Rank 1 and its current year earnings estimate increased by 46 2% over the last 60 days [5] - NRx's shares gained 11 8% over the past month compared to the S&P 500's decline of 0 7% [3] - The company possesses a Momentum Score of A [3] Entrada Therapeutics, Inc (TRDA) - The company has a Zacks Rank 1 and its current year earnings estimate increased by 64 7% over the last 60 days [4] - Entrada's shares gained 8 8% over the last three months compared to the S&P 500's advance of 5 3% [7] - The company possesses a Momentum Score of A [7]

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was $15.7 million, a 17% increase year-over-year, driven by higher license revenue, professional services revenue, and processing and maintenance revenue [7] - Income from operations was $2.8 million for Q3 2024 compared to $0.4 million for the same period last year, with an operating margin of 18% compared to 3% [10] - Earnings per diluted share for the quarter was $0.27 compared to a loss per share of $0.03 for Q3 2023, with adjusted diluted EPS of $0.30 compared to $0.09 for Q3 2023 [11] Business Line Data and Key Metrics Changes - License revenue for Q3 2024 was $1.4 million, professional services revenue was $7 million, processing and maintenance revenue was $6.1 million, and third-party revenue was $1.2 million [7] - Revenue growth excluding the largest customer was 7% year-over-year, while growth excluding the largest customer and the impact from Park Mobile and Legacy Cabbage was 30% [8][9] Market Data and Key Metrics Changes - The company expects total revenue for the full year 2024 to be approximately flat, with growth from customers excluding the largest customer projected to be between 25% and 30% [13] - For Q4 2024, total revenues are expected to be between $13.3 million and $13.7 million, with earnings per share between $0.07 and $0.09 [14] Company Strategy and Development Direction - The company has renewed agreements with Goldman Sachs, extending them through December 31, 2030, which provides increased managed services fees and higher fixed revenue [15] - The company is focused on continuing to grow its non-Goldman business at a 30% compounded annual growth rate over the next three years [24][30] Management's Comments on Operating Environment and Future Outlook - Management noted that the recent decision by the auditor not to stand for reappointment is a business decision and the company will seek a new auditor [6] - Management expressed confidence in the growth of non-Goldman revenue and indicated that license revenue is not a primary focus for future growth [36] Other Important Information - The company has over $28 million in cash and marketable securities as of September 30, 2024, and plans to use excess cash for investments in the new platform and share buybacks [12] - The company is developing a new cloud-native platform called Corefinity, expected to be ready for production by the end of 2025 [27] Q&A Session Summary Question: Can you help bridge the change in non-Goldman revenue growth from the prior guidance? - Management indicated that new programs and higher-than-expected third-party revenues contributed to the upward revision of guidance from 15-20% to 25-30% [34] Question: How much of next year's guidance is expected to come from license revenue? - Management stated it is too soon to provide guidance on license revenue due to uncertainties surrounding the timing of the GM program deconversion [35] Question: What are the thoughts on the potential transition of the Apple program to JP Morgan? - Management speculated that while it makes sense for JP Morgan to take the program in-house, it could also be less disruptive to continue working with CoreCard [37]

Financial Performance - Total revenue for Q3 2024 was $15.7 million, a 17% increase compared to $13.4 million in Q3 2023[2][4] - Net income for Q3 2024 was $2.2 million, compared to a net loss of $0.2 million in Q3 2023[5] - Earnings per diluted share for Q3 2024 was $0.27, compared to a loss per share of $0.03 in the same quarter last year[5] - Adjusted EBITDA for Q3 2024 was $3.9 million, up from $1.9 million in Q3 2023[6] - GAAP net income for Q3 2024 was $2,196,000, compared to a loss of $222,000 in Q3 2023[21] - Adjusted net income for Q3 2024 increased to $2,402,000, up from $778,000 in Q3 2023[20] - Total revenue for Q3 2024 was $15,703,000, a rise from $13,399,000 in Q3 2023[21] - Adjusted EBITDA for Q3 2024 was $3,908,000, compared to $1,919,000 in Q3 2023[21] - Adjusted EPS for Q3 2024 was $0.30, up from $0.09 in Q3 2023[20] - Adjusted EBITDA margin improved to 24.9% in Q3 2024, compared to 14.3% in Q3 2023[21] - Nine-month GAAP net income for 2024 was $3,522,000, compared to $2,909,000 in 2023[21] Revenue Breakdown - License revenue was $1.42 million, professional services revenue was $7.01 million, and processing and maintenance revenue was $6.07 million for Q3 2024[4] Future Guidance - For Q4 2024, the company expects total revenue between $13.3 million and $13.7 million and earnings per share between $0.07 and $0.09[3] - For fiscal year 2025, total revenue is expected to be between $60 million and $64 million, with a revenue growth of 30-40% excluding the largest customer[3] Cash and Assets - Cash and cash equivalents as of September 30, 2024, were $22.5 million, down from $26.9 million at the end of 2023[13] - Total assets as of September 30, 2024, were $62.8 million, compared to $63.8 million at the end of 2023[13] - Total stockholders' equity was $51.7 million as of September 30, 2024, down from $52.7 million at the end of 2023[14] Other Financial Metrics - Share-based compensation increased to $274,000 in Q3 2024 from $150,000 in Q3 2023[21] - Investment loss decreased to $90,000 in Q3 2024 from $1,015,000 in Q3 2023[21] - Income tax expense for Q3 2024 was $732,000, compared to a benefit of $(72,000) in Q3 2023[21]

Financial Performance - Total net revenue for the three months ended September 30, 2024, was $15,703,000, an increase of 17.2% compared to $13,399,000 for the same period in 2023[8] - Net income for the three months ended September 30, 2024, was $2,196,000, compared to a net loss of $222,000 for the same period in 2023[9] - Basic earnings per share for the three months ended September 30, 2024, was $0.28, compared to a loss of $0.03 for the same period in 2023[8] - Total comprehensive income for the three months ended September 30, 2024, was $2,292,000, compared to a loss of $196,000 for the same period in 2023[9] - Net income for the nine months ended September 30, 2024, was $3,522,000, compared to $2,909,000 for the same period in 2023, representing an increase of approximately 21%[14] - Total revenue for the three and nine months ended September 30, 2024, was $15,703,000 and $42,576,000, representing an increase of 17% and a decrease of 3% compared to the respective periods in 2023[75] Assets and Liabilities - Total current assets decreased to $41,851,000 as of September 30, 2024, from $44,489,000 as of December 31, 2023, a decline of 6.0%[6] - Total liabilities decreased to $62,808,000 as of September 30, 2024, from $63,826,000 as of December 31, 2023, a reduction of 1.6%[6] - Total stockholders' equity decreased to $51,687,000 as of September 30, 2024, from $52,704,000 as of December 31, 2023, a decrease of 1.9%[6] - Cash and cash equivalents decreased to $22,498,000 as of September 30, 2024, from $26,918,000 as of December 31, 2023, a decline of 16.5%[6] - Total cash at the end of the period on September 30, 2024, was $22,498,000, down from $31,614,000 at the end of September 2023, reflecting a decrease of approximately 29%[16] Expenses - Marketing expenses increased to $79,000 for the three months ended September 30, 2024, compared to $63,000 for the same period in 2023, an increase of 25.4%[8] - Development expenses remained relatively stable at $2,501,000 for the three months ended September 30, 2024, compared to $2,489,000 for the same period in 2023[8] - Total operating expenses increased by 6% for the three months ended September 30, 2024, primarily due to a 16% rise in general and administrative expenses[79] - Stock-based compensation expense increased to $10,800,000 for the nine months ended September 30, 2024, compared to $150,000 in the same period of 2023[14] Revenue Breakdown - Professional services revenue increased to $7,006,000 for the three months ended September 30, 2024, up from $6,432,000 in 2023, representing an 8.9% growth[23] - Processing and maintenance revenue rose to $6,067,000 for the three months ended September 30, 2024, compared to $5,814,000 in 2023, marking a 4.4% increase[23] - Revenue from the United States for the three months ended September 30, 2024, was $14,997,000, up 17.5% from $12,777,000 in 2023[24] - Revenue from services was $14,283,000 and $41,156,000 for the three and nine months ended September 30, 2024, reflecting a 7% increase and a 2% decrease compared to the same periods in 2023[76] - Revenue from products, primarily software license fees, was $1,420,000 for both the three and nine months ended September 30, 2024, compared to $0 and $1,794,000 in the respective periods of 2023[77] Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 30, 2024, was $5,039,000, a decrease from $18,252,000 in 2023, indicating a decline of about 72%[14] - The company reported a net cash used for investing activities of $3,982,000 for the nine months ended September 30, 2024, compared to $5,477,000 in 2023, showing a decrease of about 27%[15] - The company invested $1,831,000 in publicly traded multi-sector corporate and municipal debt and treasury securities during the nine months ended September 30, 2024[84] Stock Repurchase and Equity - The company repurchased approximately $134,650,000 of common stock, with an additional $9.3 million authorized for future repurchases as of September 30, 2024[18] - The balance of common stock repurchased, including excise tax, was $147,040,000 for the nine months ended September 30, 2024[18] - The company authorized a new $20 million share repurchase program in May 2022, with approximately $9.3 million remaining as of September 30, 2024[73] Market and Strategic Developments - The company opened a new office in Dubai in October 2020 and in Bogotá, Colombia in October 2021 to support expansion in new markets[69] - The company continues to gain economies of scale in its Processing Services business, adding new processing customers at a faster pace than new license customers[63] - Goldman Sachs Group, Inc. represented 62% of consolidated revenues for the nine months ended September 30, 2024, posing a risk of revenue loss if contract obligations are not met[89] Certifications and Governance - The report includes various certifications required by the Sarbanes-Oxley Act of 2002 from the Chief Executive Officer and Chief Financial Officer[99] - The report is signed by Matthew A. White, Chief Financial Officer, and J. Leland Strange, Chief Executive Officer, on October 31, 2024[101]

Core Viewpoint - CoreCard Corporation (CCRD) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][3] Estimate Revisions - The rising trend in earnings estimate revisions reflects growing analyst optimism, which is expected to positively impact the stock price [2] - For the current quarter, CoreCard is projected to earn $0.17 per share, indicating a year-over-year increase of +88.89%, with the Zacks Consensus Estimate rising by 166.67% due to one upward revision [4] - For the full year, the expected earnings are $0.57 per share, representing a +9.62% change from the previous year, with the consensus estimate increasing by 45.46% following one upward revision [5] Zacks Rank - CoreCard currently holds a Zacks Rank 2 (Buy), indicating strong agreement among analysts on the positive earnings revisions, which historically correlate with stock performance [6] - Stocks rated Zacks Rank 1 (Strong Buy) and 2 (Buy) have shown significant outperformance compared to the S&P 500 [6] Market Performance - The stock has gained 5.5% over the past four weeks, driven by solid estimate revisions, suggesting potential for further growth in earnings and stock price [7]

Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was $13.8 million, a 12% decrease year-over-year, primarily due to lower license and professional services revenue from Goldman Sachs [4] - Income from operations decreased to $1.1 million in Q2 2024 from $2.7 million in Q2 2023, with an operating margin of 8% compared to 17% in the prior year [6] - Earnings per diluted share for the quarter was $0.11, down from $0.22 in Q2 2023, while adjusted diluted EPS was $0.15 compared to $0.23 in the same period last year [7] Business Line Data and Key Metrics Changes - Professional services revenue was $7 million, exceeding the previously guided range, while processing and maintenance revenue was $5.7 million, remaining mostly flat year-over-year [4][5] - Revenue growth excluding the largest customer was 7% year-over-year, with a projected full-year growth of 15% to 20%, above the previous guidance of 10% to 15% [5][8] Market Data and Key Metrics Changes - Goldman Sachs represented 63% of total revenues in Q2 2024, down from 70% in Q2 2023, indicating a diversification effort [4] - The company is experiencing steady growth in the Middle East and is working on several potential large business opportunities expected to come online in late 2025 [11] Company Strategy and Development Direction - The company is investing in its new Corfinity platform, expected to be completed by the end of 2025, which is seen as a long-term investment for growth [10] - The management is focused on onboarding new customers and partnerships to reduce reliance on the largest customer and enhance revenue streams [5][9] Management's Comments on Operating Environment and Future Outlook - Management noted a slight improvement in inquiries from smaller banks, while fintech activity has slowed down [12] - The company is pleased with the current growth trajectory and is optimistic about future business opportunities, particularly in the processing and maintenance segments [9][11] Other Important Information - The company has over $22 million in cash on its balance sheet as of June 30, 2024, and plans to use excess cash for investments and share buybacks [7] - Share repurchases included 147,040 shares for $2.1 million in Q2 2024 [7] Q&A Session Summary Question: What is the tone of RFPs or inquiries compared to a year ago? - Management indicated a slight improvement in inquiries from smaller banks, while fintech activity has decreased [12] Question: Was there any buyback activity in the quarter? - The company repurchased approximately 147,000 shares for $2.1 million in Q2 2024 [13][14] Question: What is the revenue range for large potential business opportunities? - Management defined "large" as annual revenue between $2 million to $8 million, with expectations that adding more financial institutions could lower risk for future decisions [15][16]

Group 1: Earnings Performance - CoreCard Corporation (CCRD) reported quarterly earnings of $0.15 per share, exceeding the Zacks Consensus Estimate of $0.07 per share, but down from $0.22 per share a year ago, representing an earnings surprise of 114.29% [1] - The company posted revenues of $13.8 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 13.74%, compared to $15.69 million in the same quarter last year [2] - Over the last four quarters, CoreCard has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - CoreCard shares have declined approximately 14% since the beginning of the year, while the S&P 500 has gained 15.8% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the sustainability of the recent earnings numbers [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $12.43 million, and for the current fiscal year, it is $0.39 on revenues of $51.43 million [7] Group 3: Industry Context - The Technology Services industry, to which CoreCard belongs, is currently ranked in the top 38% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact CoreCard's stock performance [5][6]

Financial Performance - Total revenue for Q2 2024 was $13.8 million, a decrease of 12% from $15.7 million in Q2 2023[1][2] - License revenue was $0 for Q2 2024, down from $1.794 million in Q2 2023[2] - Professional services revenue decreased to $6.973 million in Q2 2024 from $7.354 million in Q2 2023, a decline of 5.2%[2] - Net income for Q2 2024 was $0.9 million, down 52% from $1.9 million in Q2 2023[2][3] - Earnings per diluted share decreased to $0.11 in Q2 2024 from $0.22 in Q2 2023[3][8] - Adjusted EBITDA for Q2 2024 was $2.5 million, a decline of 48% from $4.8 million in Q2 2023[3][14] Assets and Cash Position - Total assets as of June 30, 2024, were $61.557 million, down from $63.826 million at the end of 2023[11][13] - Cash and cash equivalents decreased to $22.589 million as of June 30, 2024, from $26.918 million at the end of 2023[11] Strategic Focus - The company continues to invest in its platform and processing capabilities, onboarding new customers[1] - CoreCard is focused on sustainable growth and technological innovation in the financial technology sector[5] Non-GAAP Measures - Adjusted EPS is defined as diluted earnings per share adjusted to exclude share-based compensation expense, highlighting its importance for evaluating core operating results[16] - Adjusted EPS and Adjusted EBITDA should not be viewed in isolation or as alternatives to net income or GAAP-derived performance measures, indicating potential differences in calculation methods among companies[16] - The reconciliation of CoreCard's GAAP results to non-GAAP results is provided, emphasizing the need for careful comparison with other companies[16]

Core Points - CoreCard Corporation reported total revenues of $13.8 million for Q2 2024, a decrease from $15.7 million in Q2 2023, primarily due to lower license and processing revenues from Kabbage [2][3] - The company’s net income for the second quarter was $0.9 million, down from $1.9 million in the same quarter last year, with diluted earnings per share decreasing from $0.22 to $0.11 [4][9] - Adjusted EBITDA for Q2 2024 was $2.5 million, compared to $4.8 million in Q2 2023, indicating a decline in operational performance [4][18] Financial Performance - Total revenues for the three months ended June 30, 2024, were $13.8 million, compared to $15.7 million in the same period in 2023 [3] - Breakdown of revenue types for Q2 2024 included: - Professional services: $6.973 million (down from $7.354 million in 2023) - Processing and maintenance: $5.694 million (slightly up from $5.689 million in 2023) - Third-party revenue: $1.130 million (up from $0.855 million in 2023) [6] - Income from operations was $1.1 million for Q2 2024, down from $2.7 million in Q2 2023 [3][9] Earnings Metrics - Net income for Q2 2024 was $0.9 million, compared to $1.9 million in Q2 2023 [4][9] - Adjusted earnings per diluted share were $0.15 for Q2 2024, down from $0.23 in Q2 2023 [4][17] - Basic earnings per share also decreased from $0.22 in Q2 2023 to $0.11 in Q2 2024 [4][9] Balance Sheet Overview - As of June 30, 2024, total assets were $61.557 million, a decrease from $63.826 million at the end of 2023 [12][13] - Current liabilities decreased to $8.007 million from $9.540 million in the previous year [11] - Stockholders' equity was reported at $50.849 million, down from $52.704 million at the end of 2023 [11][12]