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]
CoreCard(CCRD) - 2024 Q2 - Earnings Call Transcript