Jack Henry(JKHY) - 2024 Q3 - Quarterly Results

Revenue Growth - GAAP revenue increased by 5.9% to $538.6 million for the three months ended March 31, 2024, compared to the same period last year[5]. - Non-GAAP adjusted revenue increased by 7.0% for the same period, reflecting strong growth in digital revenue, which rose by 26.1%[7]. - For the nine months ended March 31, 2024, GAAP revenue increased by 7.3% to $1.66 billion compared to the prior fiscal year[5]. - Non-GAAP adjusted revenue for the nine months increased by 7.7%, driven by a 10.0% growth in public cloud revenue[7]. - GAAP revenue for the three months ended March 31, 2024, was $538,562, representing a 5.9% increase from $508,552 in the same period of 2023[14]. - Non-GAAP adjusted revenue for the nine months ended March 31, 2024, was $1,643,825, reflecting a 7.7% growth compared to $1,526,027 in the prior year[14]. Income and Profitability - GAAP operating income increased by 3.4% to $112.1 million for the three months ended March 31, 2024[8]. - Non-GAAP adjusted operating income increased by 8.6% for the three months ended March 31, 2024[2]. - GAAP net income for the three months ended March 31, 2024, was $87,099, a 6.8% increase from $81,549 in the same period of 2023[17]. - Non-GAAP adjusted net income for the nine months ended March 31, 2024, was $291,040, which is a 15.4% increase from $252,273 in the prior year[17]. - Non-GAAP adjusted operating income for the three months ended March 31, 2024, was $112,105, an 8.6% increase from $103,260 in the same period of 2023[20]. - The company reported a non-GAAP adjusted operating margin of 20.8% for the three months ended March 31, 2024, compared to 20.6% in the same period of 2023[20]. Expenses - Research and development expenses for the three months ended March 31, 2024, totaled $35,993[20]. - Selling, general, and administrative expenses for the three months ended March 31, 2024, amounted to $62,246[20]. - The VEDIP program expense for the nine months ended March 31, 2024, was related to a voluntary separation program initiated in July 2023[16]. - Non-GAAP adjusted total operating expenses for the nine months ended March 31, 2024, were $1,268,932[24]. Cash and Debt Management - Cash and cash equivalents remained stable at $27 million as of March 31, 2024, compared to the same date in 2023[2]. - Debt related to credit facilities decreased from $375 million in March 2023 to $250 million in March 2024[2]. - Net cash from operating activities for the nine months ended March 31, 2024, was $336,242, compared to $207,031 for the same period in 2023[36]. - Free cash flow for the nine months ended March 31, 2024, was $172,883 thousand, compared to $82,098 thousand in 2023[51]. Guidance and Future Outlook - The company expects full year fiscal 2024 revenue guidance to be between $2.215 billion and $2.228 billion[1]. - GAAP operating income guidance for the fiscal year ending June 30, 2024, is projected between $486 million and $490 million, reflecting a growth of 1.1% to 1.9%[30]. - Non-GAAP adjusted operating income guidance for the same fiscal year is expected to be between $492 million and $496 million, indicating a growth of 9.6% to 10.5%[30]. - Non-GAAP adjusted revenue growth for fiscal year 2024 is projected between 7.4% and 8.0%[30]. - The sales pipeline remains near an all-time high, indicating strong future growth potential[4]. Balance Sheet Highlights - Total assets as of March 31, 2024, were $2,770,498 thousand, a 6.2% increase from $2,607,597 thousand in 2023[48]. - Stockholders' equity rose to $1,780 million at March 31, 2024, compared to $1,538 million a year earlier[36]. - The company reported a decrease in deferred revenue to $214 million at March 31, 2024, down from $226 million a year ago[36]. - Stockholders' equity increased by 15.7% to $1,779,931 thousand as of March 31, 2024, from $1,538,309 thousand in 2023[48]. Return Metrics - Return on average shareholders' equity for the trailing four quarters was 22.8% as of March 31, 2024, down from 24.4% in 2023[51]. - Average invested capital for the trailing four quarters was $1,971,621 thousand, with a return on invested capital (ROIC) of 19.2% as of March 31, 2024[51]. Interest Income - Interest income increased significantly by 171.8% to $6,499 thousand for the three months ended March 31, 2024, compared to $2,391 thousand in 2023[47].