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]

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]