Maskot On August 20th, the management team at Jack Henry & Associates, Inc. (NASDAQ:JKHY) announced financial results covering the final quarter of the company's 2024 fiscal year. The firm fell short of expectations when it came to revenue. However, earnings exceeded forecasts, if just barely. These mixed results sent shares down roughly 1%. And considering how volatile the market is, that is an insignificant move. More likely than not, the mixed results were more or less offset by the fact that management ...

Jack Henry & Associates, Inc. (JKHY) posted fourth-quarter fiscal 2024 earnings of $1.38 per share, beating the Zacks Consensus Estimate by 6.1%. The bottom line increased 3% from the year-ago quarter's reported figure. Revenues rose 4.7% from the year-ago quarter's reading to $559.9 million. The figure missed the Zacks Consensus Estimate of $563.4 million. JKHY's non-GAAP revenues were $553.2 million, up 6.4% from the year-ago quarter's tally. Higher processing revenues drove top-line growth. Strong moment ...

Financial Data and Key Metrics - Record revenue of $2.2 billion and operating income of $489.4 million for fiscal 2024 [5] - Q4 revenue increased 5% (GAAP) and 6% (non-GAAP), while full-year revenue increased 7% (GAAP and non-GAAP) [5] - Q4 operating income increased 1% (GAAP) and 5% (non-GAAP), while full-year operating income increased 2% (GAAP) and 10% (non-GAAP) [5] - Full-year non-GAAP margin expansion of 60 basis points to 23% [19] - Fully diluted GAAP EPS of $1.38 for Q4 (up 3%) and $5.23 for fiscal 2024 (up 4%) [19] Business Line Performance - Core segment: Q4 non-GAAP revenue increased 4%, with 171 basis points margin expansion; full-year non-GAAP revenue increased 7%, with 135 basis points margin expansion [20] - Payments segment: Q4 non-GAAP revenue increased 8%, with 183 basis points margin expansion; full-year non-GAAP revenue increased 7%, with 124 basis points margin expansion [20] - Complementary segment: Q4 non-GAAP revenue increased 6%, with 75 basis points margin contraction; full-year non-GAAP revenue increased 8%, with 2 basis points margin expansion [21] Market Performance - 22 competitive core wins in Q4 and 57 for fiscal 2024, including 15 new core contracts with financial institutions with over $1 billion in assets [5][6] - 45 new Banno Retail clients and 50 new Banno Business deals signed in Q4; 179 new Banno Retail contracts and 164 new Banno Business contracts for fiscal 2024 [8] - 21 new card processing clients in Q4 and 56 for fiscal 2024; 16 new Financial Crimes Defender contracts in Q4 and 52 for fiscal 2024 [9] Strategy and Industry Competition - Technology modernization strategy and One Jack Henry initiative driving competitive core wins [5] - Focus on private cloud migration, with 73% of core clients now hosted in private cloud [7] - Strong demand for digital and payment solutions, particularly Banno and Financial Crimes Defender [8][9] - Emphasis on associate engagement, service quality, and technology innovation as key competitive advantages [10][11] Management Commentary on Operating Environment and Future Outlook - Positive momentum entering fiscal 2025, with expectations for strong revenue growth and margin expansion [26] - Robust technology spending by financial institutions and clear demand for differentiated and innovative technology [12] - Fiscal 2025 guidance: 7% to 8% revenue growth, 25 to 40 basis points non-GAAP margin expansion, and GAAP EPS of $5.78 to $5.87 [24] Other Important Information - 12.2 million registered Banno users as of June 2024, up from 3.2 million in 2020 [8] - 52 Financial Crimes Defender installations completed and 115 in various stages of implementation; 22 faster payment modules installed and 154 in various stages of implementation [9] - Fiscal 2024 operating cash flow of $568 million, a $186 million increase over the prior period [22] Q&A Session Summary Question: Factors driving the increase in new core wins with larger institutions - Execution of technology modernization strategy, strong client service reputation, and hiring of experienced sales talent [31][32] Question: Strategic changes under new CEO Greg Adelson - Continued focus on tech modernization and One Jack Henry initiative, with additional emphasis on SMB strategy and product rationalization [34][35] Question: Payments segment growth drivers - Strong performance in EPS and PayCenter businesses, driven by real-time payments and fraud solutions [36][37] Question: Margin outlook for fiscal 2025 - Expectation of continued margin expansion, though with some headwinds from VEDIP and timing of merit increases [40][41] Question: Core business growth trajectory - Core business expected to grow in line with overall company revenue growth, driven by technology modernization and strong sales performance [61][62] Question: Pricing environment - No significant changes in pricing competition, with focus on execution and service quality [63][64] Question: Banno growth potential - Significant runway for Banno growth, particularly in the credit union space, with a couple of hundred clients still on the NetTeller platform [68][69] Question: M&A outlook - Focus on public cloud-native acquisitions that align with tech modernization strategy and fill gaps in payments or SMB offerings [70][71] Question: Cloud migration runway and revenue uplift - Expectation to reach 93% to 95% cloud migration, with 1.75x revenue uplift from cross-sell opportunities [75][76] Question: Customer priorities - Deposit growth remains the top priority for customers, followed by operational efficiency and loan growth [81][82] Question: Implementation queues and resource allocation - Efforts to speed up implementations, particularly for Financial Crimes Defender, with increased resources allocated to reduce installation queues [83]

Jack Henry (JKHY) reported $559.91 million in revenue for the quarter ended June 2024, representing a yearover-year increase of 4.7%. EPS of $1.38 for the same period compares to $1.34 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $563.37 million, representing a surprise of -0.62%. The company delivered an EPS surprise of +6.15%, with the consensus EPS estimate being $1.30. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall St ...

Jack Henry (JKHY) came out with quarterly earnings of $1.38 per share, beating the Zacks Consensus Estimate of $1.30 per share. This compares to earnings of $1.34 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 6.15%. A quarter ago, it was expected that this payment processsing company would post earnings of $1.16 per share when it actually produced earnings of $1.19, delivering a surprise of 2.59%. Over the last four quarters ...

Open, scalable technology grows with credit union to strengthen member service throughout the Pacific Northwest MONETT, Mo., Aug. 20, 2024 /PRNewswire/ -- Jack Henry™ (Nasdaq: JKHY) is pleased to share that TwinStar Credit Union is continuing its nearly four decade relationship with the company to support its successful merger with Northwest Community Credit Union (NWCU) and facilitate continued growth. TwinStar and NWCU merged in 2023 to stay competitive, scaling their products and services to over 250,000 ...

The upcoming report from Jack Henry (JKHY) is expected to reveal quarterly earnings of $1.30 per share, indicating a decline of 3% compared to the year-ago period. Analysts forecast revenues of $563.37 million, representing an increase of 5.4% year over year. The consensus EPS estimate for the quarter has been revised 0.2% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe. Before a ...

MONETT, Mo., Aug. 12, 2024 /PRNewswire/ -- Jack Henry & Associates, Inc.® (Nasdaq: JKHY) announced today that deconversion revenue for the fiscal fourth quarter, ended June 30, 2024, was $6.7 million. Deconversion revenue for the full fiscal year ended June 30, 2024, was $16.6 million. For more information about how guidance will be further updated for deconversion revenue estimates, please see Jack Henry's Current Report on Form 8-K filed with the Securities and Exchange Commission on August 3, 2023. The m ...

Jack Henry also announced a temporary expansion of its Board from nine to 10 directors. This expansion will last until the company's 2024 Annual Meeting of Stockholders, at which time nine director nominees are expected to stand for election to the Board. Nelson, 61, is President of the Equifax Inc. International business. She previously served as President of Equifax Australia and New Zealand, President and General Manager of Equifax Canada, and Corporate Senior Vice President and Enterprise Alliance Leade ...

To support these businesses, the bank will use Jack Henry's hosted core processing solution, Banno Digital Platform, and LoanVantage, along with enterprise solutions like treasury and workflow management tools to make modern service components available in the public cloud, allowing it to innovate faster and meet customer needs. Expanding Customer Base This apart, Jack Henry recently expanded its clientele with the addition of the Forest Park Bank. Forest Park Bank will utilize Jack Henry's Banno Digital Pl ...