Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was $15.7 million, a 17% increase year-over-year, driven by higher license revenue, professional services revenue, and processing and maintenance revenue [7] - Income from operations was $2.8 million for Q3 2024 compared to $0.4 million for the same period last year, with an operating margin of 18% compared to 3% [10] - Earnings per diluted share for the quarter was $0.27 compared to a loss per share of $0.03 for Q3 2023, with adjusted diluted EPS of $0.30 compared to $0.09 for Q3 2023 [11] Business Line Data and Key Metrics Changes - License revenue for Q3 2024 was $1.4 million, professional services revenue was $7 million, processing and maintenance revenue was $6.1 million, and third-party revenue was $1.2 million [7] - Revenue growth excluding the largest customer was 7% year-over-year, while growth excluding the largest customer and the impact from Park Mobile and Legacy Cabbage was 30% [8][9] Market Data and Key Metrics Changes - The company expects total revenue for the full year 2024 to be approximately flat, with growth from customers excluding the largest customer projected to be between 25% and 30% [13] - For Q4 2024, total revenues are expected to be between $13.3 million and $13.7 million, with earnings per share between $0.07 and $0.09 [14] Company Strategy and Development Direction - The company has renewed agreements with Goldman Sachs, extending them through December 31, 2030, which provides increased managed services fees and higher fixed revenue [15] - The company is focused on continuing to grow its non-Goldman business at a 30% compounded annual growth rate over the next three years [24][30] Management's Comments on Operating Environment and Future Outlook - Management noted that the recent decision by the auditor not to stand for reappointment is a business decision and the company will seek a new auditor [6] - Management expressed confidence in the growth of non-Goldman revenue and indicated that license revenue is not a primary focus for future growth [36] Other Important Information - The company has over $28 million in cash and marketable securities as of September 30, 2024, and plans to use excess cash for investments in the new platform and share buybacks [12] - The company is developing a new cloud-native platform called Corefinity, expected to be ready for production by the end of 2025 [27] Q&A Session Summary Question: Can you help bridge the change in non-Goldman revenue growth from the prior guidance? - Management indicated that new programs and higher-than-expected third-party revenues contributed to the upward revision of guidance from 15-20% to 25-30% [34] Question: How much of next year's guidance is expected to come from license revenue? - Management stated it is too soon to provide guidance on license revenue due to uncertainties surrounding the timing of the GM program deconversion [35] Question: What are the thoughts on the potential transition of the Apple program to JP Morgan? - Management speculated that while it makes sense for JP Morgan to take the program in-house, it could also be less disruptive to continue working with CoreCard [37]
CoreCard(CCRD) - 2024 Q3 - Earnings Call Transcript