Financial Data and Key Metrics - Record revenue 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 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 5.78 to 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) - 2024 Q4 - Earnings Call Transcript