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, down from $15.7 million in the same period in 2023 [3] - Income from operations decreased to $1.1 million in Q2 2024 from $2.7 million in Q2 2023 [3][9] - Adjusted earnings per diluted share were $0.15 for Q2 2024, compared to $0.23 in Q2 2023 [4][17] Revenue Breakdown - Revenue sources for Q2 2024 included: - Professional services: $6.973 million (down from $7.354 million in Q2 2023) - Processing and maintenance: $5.694 million (slightly up from $5.689 million in Q2 2023) - Third-party revenue: $1.130 million (up from $0.855 million in Q2 2023) [6][9] Balance Sheet Highlights - 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 at the end of 2023 [11] - Stockholders' equity was $50.849 million, down from $52.704 million at the end of 2023 [11] Future Outlook - The company continues to invest in its platform and processing capabilities, aiming to onboard new customers who appreciate the features of the CoreCard platform [2][7] - An investor conference call was scheduled for August 1, 2024, to discuss the financial results and future strategies [5]

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]

Financial Performance - Total net revenue for the three months ended June 30, 2024, was $13,797,000, a decrease of 8.4% compared to $15,692,000 for the same period in 2023[7]. - Net income for the three months ended June 30, 2024, was $896,000, down 52.2% from $1,875,000 in the same period last year[8]. - Total revenue for the six months ended June 30, 2024, was $26,873,000, down 11.5% from $30,448,000 in the same period of 2023[21]. - Professional services revenue for the six months ended June 30, 2024, was $12,799,000, a decrease of 18.3% from $15,695,000 in 2023[21]. - Total revenue for the three and six month periods ended June 30, 2024 was $13,797,000 and $26,873,000, representing decreases of 12% compared to the respective periods in 2023[61]. - Revenue from services decreased by 1% and 6% for the three and six month periods ended June 30, 2024, primarily due to lower professional services revenue from Goldman Sachs Group, Inc.[62]. - Revenue from products, primarily software license fees, was $0 for the three and six month periods ended June 30, 2024, compared to $1,794,000 in the respective periods of 2023[64]. Assets and Liabilities - Total current assets decreased to $40,681,000 as of June 30, 2024, from $44,489,000 as of December 31, 2023, representing a decline of 8.5%[4]. - Total assets decreased to $61,557,000 as of June 30, 2024, from $63,826,000 as of December 31, 2023, a reduction of 3.5%[5]. - Total current liabilities decreased to $8,007,000 as of June 30, 2024, from $9,540,000 as of December 31, 2023, a decrease of 16.1%[4]. - Total stockholders' equity decreased to $50,849,000 as of June 30, 2024, from $52,704,000 as of December 31, 2023, a decline of 3.5%[5]. - Cash and cash equivalents decreased to $22,589,000 as of June 30, 2024, from $26,918,000 as of December 31, 2023, a decrease of 16.5%[4]. Cash Flow and Operating Activities - Cash provided by operating activities for the six months ended June 30, 2024, was $2,341,000, compared to $15,121,000 in 2023, reflecting a significant decline[13]. - The company reported a net cash decrease of $4,329,000 for the six months ended June 30, 2024, compared to an increase of $10,606,000 in the same period of 2023[15]. - The company’s cash paid for operating leases for the six months ended June 30, 2024, was $659,000, slightly down from $674,000 for the same period in 2023[45]. Shareholder Activities - The company had approximately $11.0 million authorized for future repurchases of common stock as of June 30, 2024[10]. - Share repurchases amounted to $3.7 million for the six months ended June 30, 2024, with approximately $11.0 million of authorized share repurchases remaining[72]. - A total of 147,040 shares were repurchased during the three months ended June 30, 2024, at an average price of $14.08 per share[80]. Risks and Challenges - Goldman Sachs Group, Inc. accounted for 61% of the company's consolidated revenues for the six months ended June 30, 2024, posing a risk of revenue loss if contract obligations are not met[75]. - The company faces risks from potential delays in software development projects, which could increase costs and reduce revenue[76]. - Increased federal and state regulations may lead to higher costs and affect customer relationships, impacting revenue growth[76]. - The company is exposed to risks from global financial market instability, which could delay customer purchasing decisions[75]. - The company has identified potential security breaches as a risk that could lead to material losses exceeding insurance coverage[75]. - Competitive pressures may result in prospective customers opting for alternative solutions, negatively affecting revenue and profits[76]. - Future capital needs remain uncertain, with potential challenges in securing additional capital on acceptable terms[76]. Income and Expenses - Basic earnings per share for the three months ended June 30, 2024, was $0.11, down from $0.22 in the same period of 2023[7]. - The company reported a total comprehensive income of $865,000 for the three months ended June 30, 2024, compared to $1,869,000 for the same period in 2023[8]. - Stock-based compensation expense for the six months ended June 30, 2024, was $585,000, up from $150,000 in the same period of 2023[27]. - Total operating expenses decreased by 4% and 3% for the three and six month periods ended June 30, 2024, respectively, compared to the same periods in 2023[66]. Other Financial Metrics - The effective tax rates for the three and six months ended June 30, 2024 were 24.4% and 24.8%, compared to 24.8% for the respective periods in 2023[68]. - The company holds a 26.5% ownership interest in a privately held company, with a carrying value of $3,624,000 as of June 30, 2024[26]. - The company recorded losses of $199,000 and $438,000 for the three and six months ended June 30, 2024, respectively, related to its equity investment[26]. - The total fair value of cash equivalents and marketable securities as of June 30, 2024, was $22,955,000, with $17,698,000 in money market accounts and $5,257,000 in corporate, municipal debt, and treasury securities[39]. - The company reported a total lease liability of $3,849,000 as of June 30, 2024, with operating lease payments due in 2024 amounting to $724,000[46]. - The weighted average remaining lease term increased to 3.5 years as of June 30, 2024, from 2.8 years as of December 31, 2023[44]. - The company had six marketable securities in an unrealized loss position as of June 30, 2024, but did not identify any that were other-than-temporarily impaired[41]. - The estimated fair value of options granted was calculated using the Black-Scholes option pricing model, with an aggregate intrinsic value of $390,250 for in-the-money options as of June 30, 2024[29]. - The company experienced a decrease in general and administrative costs, reporting $238,000 for the six months ended June 30, 2024, compared to $223,000 for the same period in 2023[47]. - For the six months ended June 30, 2024, the cost of revenue was $659,000, an increase from $674,000 for the same period in 2023[47].

NORCROSS, Ga., July 25, 2024 (GLOBE NEWSWIRE) -- CoreCard Corporation [NYSE: CCRD], the leading provider of innovative credit technology solutions and processing services to the financial technology and services market, today announced that Leland Strange, President & CEO, and Matt White, CFO, will be participating in the following investor conferences: KeyBanc Technology Leadership Forum on August 6, 2024 in Vail, CO. Oppenheimer 27th Annual Technology, Internet & Communications Conference on August 14, 20 ...

KeyBanc Technology Leadership Forum on August 6, 2024 in Vail, CO. Oppenheimer 27th Annual Technology, Internet & Communications Conference on August 14, 2024 (virtual). Seaport Financials and FinTech Conference on August 15, 2024 (virtual). If you would like to schedule time to meet with the Company at the conferences, please reach out to the hosting bank. NORCROSS, Ga., July 25, 2024 (GLOBE NEWSWIRE) -- CoreCard Corporation [NYSE: CCRD], the leading provider of innovative credit technology solutions and p ...

Interested investors are invited to attend the conference call by accessing the webcast at https://www.webcasteqs.com/register/corecard080124/en or by dialing 1-877-407-0890. As part of the conference call CoreCard will be conducting a question-and-answer session where participants are invited to email their questions to questions@corecard.com prior to the call. A transcript of the call will be posted on the company's website at investors.corecard.com as soon as available after the call. CoreCard Corporatio ...

NORCROSS, Ga., July 18, 2024 (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 August 1, 2024, at 11:00 A.M. Eastern Time in conjunction with the company's earnings release for the quarter ended June 30, 2024. The company plans to issue a press release with the financial results for the period before the market opens on Au ...