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CoreCard(CCRD) - 2024 Q3 - Quarterly Report
CCRDCoreCard(CCRD)2024-10-31 10:33

Financial Performance - Total net revenue for the three months ended September 30, 2024, was 15,703,000,anincreaseof17.215,703,000, 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,comparedtoanetlossof2,196,000, 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,comparedtoalossof0.28, 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,comparedtoalossof2,292,000, 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,comparedto3,522,000, 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 15,703,000and15,703,000 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 41,851,000asofSeptember30,2024,from41,851,000 as of September 30, 2024, from 44,489,000 as of December 31, 2023, a decline of 6.0%[6] - Total liabilities decreased to 62,808,000asofSeptember30,2024,from62,808,000 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 51,687,000asofSeptember30,2024,from51,687,000 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 22,498,000asofSeptember30,2024,from22,498,000 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,downfrom22,498,000, down from 31,614,000 at the end of September 2023, reflecting a decrease of approximately 29%[16] Expenses - Marketing expenses increased to 79,000forthethreemonthsendedSeptember30,2024,comparedto79,000 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 2,501,000forthethreemonthsendedSeptember30,2024,comparedto2,501,000 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 10,800,000fortheninemonthsendedSeptember30,2024,comparedto10,800,000 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 7,006,000forthethreemonthsendedSeptember30,2024,upfrom7,006,000 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 6,067,000forthethreemonthsendedSeptember30,2024,comparedto6,067,000 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,up17.514,997,000, up 17.5% from 12,777,000 in 2023[24] - Revenue from services was 14,283,000and14,283,000 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 1,420,000forboththethreeandninemonthsendedSeptember30,2024,comparedto1,420,000 for both the three and nine months ended September 30, 2024, compared to 0 and 1,794,000intherespectiveperiodsof2023[77]CashFlowandInvestmentsCashprovidedbyoperatingactivitiesfortheninemonthsendedSeptember30,2024,was1,794,000 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 18,252,000in2023,indicatingadeclineofabout7218,252,000 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 5,477,000in2023,showingadecreaseofabout275,477,000 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 134,650,000ofcommonstock,withanadditional134,650,000 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 147,040,000fortheninemonthsendedSeptember30,2024[18]Thecompanyauthorizedanew147,040,000 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]