CoreCard (CCRD) 1 Aug 242024 Q2 Earnings call transcript

Ladies and gentlemen, good morning, and welcome to CoreCard Second Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Matt White, Chief Financial Officer. ahead. go Please

questions good today and CoreCard With on and me He prepared of Thank remarks. Leland morning, Strange, call answer comments additional is add of the Chairman the conclusion will my you, some everyone. at and Corporation. CEO

financial in I'd uncertainties and remind These the diluted These Corporation CoreCard detailed factors, I may EPS measures, of XXXX other will business filings during our is non-GAAP SEC, environment. the and we Form involve adjusted included could results EBITDA, are tables everyone subsequent and including the a for affect earnings also cause included XX-K risk We'll operational that understand start, future affect which from to Before certain making items help certain our underlying you that performance. factors release. that measures differ non-GAAP call, statements with operations number reconciliation our that including are be filings. our adjusted and forward-looking comparability like to statements adjusted with to actual certain Factors our expectations. its materially of in discuss

third-party previously $X.X metric Processing services came guide our of maintenance release, with largest As was for which and our of professional guided our of quarter to components in by The the license our press a in million. driven million, a of quarter $X.X from and ahead lower of XX% line million, services primarily Sachs. for customer, we second of revenue range. in and $XX.X lower we second were revenue revenue Goldman quarter revenue our noted results revenue Total second consisted $X million, XXXX revenue, revenue expectations. our the of professional decrease year-over-year, and

did have quarter. expected, for As the revenue any license not we

for the XXXX outside largest XX% second Goldman As grow XXXX. of quarter the second of to represented we of revenues compared for customer, XX% our continue of to revenues our quarter

a growth, Revenue our legacy largest of X% impact in customer year-over-year detailed in second is of XX% we've in above year, range CABG be basis. which and quarter excluding to in the expected for on prior growth, largest was our to basis Mobile previously the as XX% excluding business, the customer, the XX%. the a year-over-year second XX% XX% and Park full to Revenue our from quarters, quarter on is to addition guided

customers, program both partnerships We through directly with have continue we managers. new to onboard various and

I with that customers in business due to to compared we to the previously. were quarter new As quarters, previous multiple quarter second expect coming the of CABG XXXX, from and second months. Processing the that go in live we currently in legacy mostly XXXX of progress the decline of revenues implementations have the revenue flat primarily maintenance mentioned

our highlights operations Turning year. same million for $X.X quarter income second was from statement $X.X operations the XXXX. income to of additional quarter for time second compared some to the from XXXX for last of on million of Income the

of margin XXXX our the platform quarter primarily last to and new is professional The operating year. same X% lower decrease for margin by operating of lower revenue, for XX% compared revenue. Our an second in investments license the services continued was time driven

slightly year in to related starting savings expect our platform impact million build second $X.X period. headcount income compared of of quarter reduced the third in quarter The XXXX for new of We and million India statement our was $X.X prior XXXX. in the the cost

savings remain largest as needed cost the continue revenues are will to to profitable look we lower customer. given our currently receiving We for from

stock share Earnings EPS $X.XX the QX compared second compensation $X.XX to compared the $X.XX XX.X%, quarter, $X.XX 'XX. of quarter Adjusted expense, quarter XXXX QX diluted diluted per was for to XXXX. second excluding to for was Our was for in XXXX. tax compared quarter rate for XX.X% the

to was of compared $X.X the $X.X second XXXX. EBITDA quarter million for million Adjusted

of cash to and operating this sheet June new in operations buying XXXX. over balance platform flow and cash shares. $XX We We on as continue investments cash have cash our use we million in generated excess and our to to expect plan of our XX, back from to continue generating XXXX, continue

We million for quarter repurchased shares for quarter XXX,XXX $X.X of the XXX,XXX shares in XXXX million. second the first $X.X and in

the we expect services be flat. revenue continue XXXX, to year For full to approximately

the approximately quarter of $X.X quarter XXXX be of expect the license We million XXXX. either first or fourth revenue to in

of business for addition mentioned the revenue As Mobile, range XX% XXXX in growth the is expect in XX% full CABG the our recognized the million our impact Park customer, between XX% largest accelerated which QX $X.X guided year, XX%. to of previously to to in above earlier, we and legacy excluding be from customers, of

services Within and revenue XXXX of services, to continue in in and the quarter to customers we third growth processing range million. million maintenance continue in professional anticipate grow the onboard to be to of We we expect and our as new customers. strong $X.X likely as continue $X.X

And Leland. over I'll it with turn to that,

Matt. Thanks,

me much to You didn't leave say.

comprehensive be even now. headed of you're pretty kind we're think covering to where I and the business

often what at guess attention I just pay say, the look numbers to anybody says. I don't and

higher last happy and little probably professional still them. the the from I stay we think what on about and that the a in up, services, up. I've they several to expected few We're We're expect they're are years numbers may wouldn't what than times them, been with surprised stay of we but I standpoint expected. --

a you can't Could if it customer, is like as far it is our -- couldn't you business, that? our it have a handle a growing lot Yes. be Generally, good growth Would other whole side the and the But I of of as lot bigger? was other faster. little faster steady. than largest

we're with So continued happy growth. pretty the

end -- And the we're of new making parts until in everybody coming quarters, new platform the I'll that's fine to Corfinity good X we've be what say, is but progress. of filer, current we already The XXXX, also. using we're what just building call expected we're done core let's our our along environment. the finished remind not in

good is the the term. an really So over we that's and an long for investment. the It's think company investment shareholders

Other mention a that. than -- name lot say. to we things, to or that do will but a I lot not one of tend of cards got We've added that, customers I there's don't Qatar. could our has

processed if the Qatar up Qatar that's earn CoreCard. to to or card, you will fly and Qatar So you to want end India and bonus being through with points, by Airlines

We're the still East. doing in Middle well

business adding ones. some steady, So far far as just as growing growing as as generally, current new is steadily steadily business, the

that working would XXXX. that what several is are we would potential come in just late -- online on And other be nature That of the business do. good-sized we

X to that quarter -- you you're next one -- have year, on we X third, those XXXX. have in of first If work of we the at will and least them live, quarter fourth typically, we're of it go maybe of [inaudible] believe all or

I with say reported and way on So just continue just now. on we we're the we're stay business this to numbers and we're is to to generally, would the the going, pleased have quarter, pleased path with that we're going

take questions. you or Operator, it I. for for either Matt open Be your happy to questions can

conducting a line from Ladies you. now Securities. is question-and-answer Hal session. the Our with of will first we Goetsch Riley Thank question and be [Operator Instructions] B. gentlemen,

can't We hear you.

Hey, hi, there.

you Hal, are there?

the from this I'm we of the the steady. steady? as The small total it's what ago? tone has little bit mentioned like RFPs a of is maybe in or banking just I -- Or And business banks that ago a tone total is time of lifting a crisis that for X is gone still large is mute. thank was -- you, the year Yes. is you that? sorry, or inquiries, banks, A ago, And months year Or year were In business a midst of the well. by. on

Yes. the a not I improved the would we're banks. change been but the activity getting it from smaller still has It's fintech more less there's little big, from that say banks. from some what smaller bit in sense a

slowed some. has Fintech

get see banks better of sense you still smaller fintech a from I'm a just the the what side some, landscape little business. give we to from but and the less the course, I the in of trying sort little the of Of

activity you stock. know for Okay. any And buyback quarter? a the question Matt. been back I buying in have there Was

bought million. XXX,XXX around back $X.X we shares at Yes,

again for then activity and QX. buyback So

final like, question in X of large, in back the a Could is, pure least range for maybe of terms for hit X guys, could mentioned, to like give you you half all And us or feel hard... at what you kind X is XXXX. of or large a a like

year Sure. Yes, that's going wide $X good million the in pretty I'm X give type your a million place large going you to range, a question, million I'm now. revenue. -- $X to to a

medium a X million for annual large, I'm a us. revenue. is -- and big million about it's it's is large a And So X but talking small over

revenue, So -- X X annual million, million, X recent million, maybe type million, X in million million, combination. combination well, new X no X

You have you don't have or either it. it

though. bit. little in just is But to let me a important this tends kind snowball of that What's to add business that,

more the to risk next add that lower you guy of for a couple to If institutions, financial decent-sized the make tends decision. the

you. helps that So

we little it's Now, risk. believe very

experience the matters problem. of had doesn't never matter but We is a be got we believe. have We a conversions. what not that We've What problem, will with what show lot do we course, or a it think taken is risk Board believes. to away on And performance. Directors our but of of that not historical a all officer risk, it's risk we much do based can

business. Any -- So we're the kind the that's other way of growing that's what questions?

are No, queue. no the in sir, questions there

everyone have our questions, I individual thank to talk. you to time always, Matt are we any And for to listen Yes, available as always taking if the call. and

So very thank Bye. much. you

conference concluded. of now you Thank participation. for Thank The you. has your CoreCard

now lines. your may disconnect You