Jack Henry & Associates (JKHY) 9 Feb 222022 Q2 Earnings call transcript

Good morning ladies and gentlemen, thank you for standing by and welcome to Jack Henry and Associates Second Quarter Fiscal Year 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advised that today's conference is being recorded. to to conference Officer Kevin like speaker to and now today for Williams, would turn over the your Treasurer. I Chief Financial ahead, go sir. Please

we open additional Q&A. a that our we will XXXX, release comments updates and the yesterday comments up that Dave the other and after key and the morning some than our Thank and XXXX state provide the will out point Foss, take I In CEO. the we that different earnings sales joining performance be of some our I am we additional is you opening will the Henry some you general, a conclusion David CFO I normal provide Board little Associates Then call normal. typically lines for he that Then comments call. place. format about updated morning. out have closed minute press The and to and financial some press business, with Williams, will our quarter, used in at past. warning turn for year fiscal the his industry today for Treasure our regarding & thoughts will in fiscal and make we those will the put for provided in a in guidance comments call the At a format Monday thoughts Jack for of quarter second Kevin as have than a his have initiatives little after Olivia. and the Good call comments, then longer traditional on Dave Chair concludes But of the will on market over morning. release. just comments this us just just for put the Thank regarding Dave provide the release comments regarding me to

a I statements, expectations, this statement that responses to includes call actual forward-looking due or number to and concerning undertakes to First, which a cause of objectives, these those could events uncertainties. the update about future factors results. subject number any statements. results need are from no materially anticipate events, trends, to or certain remarks questions The including strategies, differ or remind risks future, we to of you obligation to revise these that Company Like or

and information, revenue press For a yesterday's sections non-GAAP non-GAAP summary call in additional over of call, including release. income. and statements. The will measures, be financial non-GAAP discuss we to reconciliations and press found forward-looking can measures in now I'll turn certain yesterday's factors this release historical that, risk these non-GAAP please to our With the operating the Dave. financial and factors On risk entitled refer XX-K for

good Thank pleased growth. morning another and am revenue you everyone. I operating income to Kevin, report of strong quarter

of the As quarter always today by those with continuing the our our ongoing while producing I'd commitment hard pandemic. went also to the impacts for results into all and thanking work associates for like second that deal begin to

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will that strategy our in our for questions to we We focus let’s review. completed after the December. shift quarter at With performance that look address

quarter time we have published this have operate we appropriate and that to remote we end significant over a options well can to but proven perform the to business our of regarding the At As with continue we target of return employees continued evaluate office full change pasture, that. date. no date so working an well XX% time feel any don't in to remote of our pressure

the on a XXXX, increased revenues strong deconversion prior quarter -- you even our guidance led was QX quarter. the Consistent revenue But performance. increased revenue with should and year deconversion increased revenue total which fiscal note strong of extremely that a for this the $XX the fees up previous GAAP almost the non-GAAP For quarter million deconversion XX% the basis. to XX% over without were very

the the a business. basis. in to and again solid segments, our increased Turning XX% for quarter core the we by by of quarter had Revenue X% on non-GAAP segment a increased

XX% posting a and on non-GAAP XX% revenue in well an Our this payment very basis. segment increase also increase a performed quarter

also an on quarter with increase had revenue a quarter complementary businesses and XX% increase this strong basis. We non-GAAP in our in XX% a solutions a

additional As you sales cloud I in six XX the our and closely private teams core months second will they we of Those quarter ago. company. our quarter solid sales to mentioned follow as clients deals competitive sales was delivery house in the that the booked incurred the a only [ph]. who record history In move very to last quarterly quarter in note XX of an again press had largest release takeaways set the our us existing

of indicator mergers is coming acquisitions As for on with within discussed our and we us customers. what have of convert backlog base prior good our calls merge expect to a

to Our one that this new side the now point team the have contract our added area banking we to in volume continues grow conversion business. on of

next evaluating in the we of two we're one demand. based the on and quarter future on Additionally, ongoing be the team or union more credit will another business adding adding side teams near

quarter credit clients. success good new new processing our card with and processing clients XX new see signing to continue six solutions We this debit

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with of than President financial implement the clients Adelson At highest more consumer A continues announced store. company, and Banno couple pace registered in has very end ratings a significant X.X we we the team. new Banno our surpassed Speaking million been platform at hold continuing successful our for ago promoted leadership platform one users of member weeks the and Operating Officer. Greg promotion quarters. app of After the a our Chief years to we our XX similar institutional key digital recent the on of a to to QX suite to on are platform

the role technology all retain will prior recently his as headed in Ben noted press release, for I will new digital I and on Greg now major would responsibilities responsible play will Greg the by to formed a going deserved position. office like As our be his this forward. promotion well to his Metz. Ben leading Both of but COO and success congratulate congratulate moved in on

during matters. our report on of year. continued social, our March a past industry next to the will XXst some know highlight discuss major and established will cadence with advances governance make we've environmental, major quarterly area be the As Henry’s to you and published in sustainability Board this Jack and advances initiatives has

Relations be market their bank union published January to in annual results our this of with expected sustainability site. credit This of the increase correlates able cornerstone XX% In sources tax than an that to executives. than average spending indicating and their our of technology access spending our increase at XX% in will XXXX greater new XX% increase X%. through with to survey of receiving report we're for study, in financial the website We target advisors Investor puts in institutions year-over-year. markets from According XXXX other link from of them information greater which expect

interest are I continued of the reflected pent in Technology that and up Solutions. think in is demand Jack Henry we influx receiving RFPs ongoing the

prospects detail and our success. will that long the expand we half over our term very our for ability technology our service the about to be strengths of clients, on of our we relationships, customer to our turn ability robust sales and deliver With As our the spending Kevin the our to for solutions, to second pipeline some optimistic is to numbers. fiscal outstanding continue begin environment, it year I

Thanks Dave.

XX% quarter prior the the quarter. services revenue compared to year During support increased

rate [ph] revenue As invitation was hardware, for million up combined deconversion up XX.X quarter Dave mentioned year. compared were and License, the to actually XX% year. compared last to prior the

fees previous year to support Our on show quarter hosting to private by quarter data continue processing non-GAAP On and for the the XX% strong total services to a offerings compared cloud the grew quarter. in year. for public X% compared growth prior to basis growing our the and

higher both on increased customers of fiscal the increase increased and driven basis. fiscal was revenues volumes debit to year processing from year credit non-GAAP a last last in XX% Our usage same from XXXX card GAAP new second primarily by existing and quarter customers. The quarter card compared and the installed

Jack for Our to strong. on last be to revenue Total was show the platform strong manual quarter growth revenue XX% demand year digital up very a as a compared continues Henry continues basis. to digital and reported in GAAP

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of to in So ago. XX% the a services compared increased revenue the fiscal XXXX same year quarter quarter second forward

XX% up License, was the combined the compared were sort and As XX year's to year. mentioned hardware, guided as for to quarter actually last compared quarter. Dave million up we invitation prior deconversion of revenue

cloud continue strong service to support Our grew our to compared prior basis private X% show and to total year a compared XX%. On hosting quarter growth by for revenue data the growing non-GAAP previous year. and and public the revenue the in offerings processing quarter

installed in increased fiscal new last from in Our line. last are to and non-GAAP second revenue customers customers. GAAP both because quarter all the from and driven existing period items and debit card The year usage services compared was a up XX% on increased and credit higher support XXXX non-GAAP primarily of increase the by same year card processing volumes the basis

to basis. very a growth Banno as of Our basis, quarter on to XX% continues compared digital last on XX% Total digital platform our the to demand revenue year Jack increase continues for Henry an non-GAAP strong for revenue be up very strong. show a GAAP was

growth, personnel card XX% cost, revenue to customer costs increase was hardware also increase associated maintenance revenue of year This to The with Research up and second quarter. compared higher increase the license to in last processing quarter due cost year’s expense to transaction fiscal for with the quarter primarily primarily ago. increased to XXXX related a personnel due last was line costs was cost, year. and same development Our of XX% compared higher compared costs. and of second increased

the a and last travel costs compared Our increased tough expense fiscal primarily which on SG&A year assets a had was increase same increase last of The due made in compared second to sale for to XXXX and quarter costs again quarter. year to we of recall. also gain XX% personnel

margins XX.X% effective operating operating year $X.XX a a second expanded increased for quarter tax bps per XXX bps year the the year quarter XX.X XX.X to increased for increase. $X.XX The second of same the XX.X% from this of year-over-year. compared compared or increase rate for ago. last to XXXX On XX% last reported for XX.X% consolidated year current margins to fiscal to last the million year fiscal from a year basis expansion. to XX non-GAAP income a the XX $X.XX to with in XX.X last to earnings our XX% XX.X% million quarter for grew quarter Net year compared Our share in for

in due half software amortization capitalized X% XXX.X increased million first total year flow up during of compared which year-to-date is I'm XXX compared compared from compared previous was cash primarily million is to was Operating purchased net is million X.X just to million quarter, for For income sorry, relating and being the six back flow. last the decreased and the assets year. increased flow, the prior year which amortization of placed intangibles to timing through capitalized operating million amortization X% to decreased XXX.X in and service. of considered for last and first year-to-date to months into last Included change acquisitions in the company the various software. liabilities the of year CAPEX, year. invested due our to X.X our projects Depreciation operating total We calculation cash the to to cash year-to-date actually the expense the

CAPEX first six year. free which and proceeds back flow cash software is from operating XX.X was Our net assets adding for then the of and disposal cash months flow less of fiscal million CAPS

first six XX.X first the and we of of of for we of XXth. A the spent X.XX XXXX. of During comments shareholders to couple million million XXX.X the sheet return June purchase months shares in in balance treasury stock through total months a million first fiscal as to also our paid dividends six the million half of XXX.X

million XX.X to of position cash Our compared year a million ago. is XXX.X

to million to bounced compared year XXX has balance a zero revolver ago. Our

the to X.X XX is primarily balance in With million months. change the purchased debt, cash last in related shares and the

trailing return for is average Our the months assets XX.X%. XX on

equity and XX yesterday our Our on capital is return non-GAAP trailing months months Also and the on XX invested XX.X% GAAP a trailing in the is updated we average XX.X%. provided for press release. revenue return guidance for the

a segment information. reconciliation to GAAP provided following the in also release non-GAAP of the revenue We

country this be be were guidance that then this Obviously improve. and assume economy continues the be to clear, open will guidance just to to to things differently continues However if continues go revised. to the

which be million based fiscal be million approximately growth reflect of the a on QX fiscal over GAAP XXXX higher appears now for revenue revenue to deconversion will half right the yesterday, been revenue we QX. full over For guidance the updated And year. $XX $XX the revenue it to growth for than of now has in approximately release deconversion revenue little our a saw to XXXX the deconversion XX% we anticipate amounts

we QX said If the fees in your and big coming deconversion were remember, last percentage call on of the the that we saw QX.

during just we our growth be guide these have For to updated the X% Obviously revenue will the non-GAAP updated year. be for under fiscal year.

GAAP to continue I as a But we non-GAAP continue non-GAAP a to anticipate continue year. to somewhat will margin We to be guidance, to improve too of margins FY compared in XXXX operating have operating on guiding and little cautious much customers continue year. last expansion revenue costs compared as from private hardware to from continue costs personnel increase and license to Also significantly on personnel headwinds and travel core on-premise travel cloud. and cloud, we costs to move costs to on-premise also to private last

However, we're approximately year to that due reminder XX quarter operating full now expand non-GAAP bps is our XXX. still margins quarter revenue but little will higher software that or confident under a also the ASC highest subscription QX margin

tax XXXX than to higher compared to be to effective continues Our slightly be year rate the rate. projected for FY prior XX%

tax in change guidance. this the significant corporate However could structure change

comments XX% press this $X.XX, $X.XX XXXX release regarding from prior of we some guidance detailed to FY week. year over increase which put of I increase out is morning XX% to over call EPS technology $X.XX updated Our GAAP the an range the that now is for EPS. guide $X.XX Dave the to a Monday turn previous on actual to is of back will a modernization which

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our Q&A. should back a turn it With Kevin to to move expect work that, more introduce we strategy as to this hear about forward. I'll around lot You

is Thanks, Dave, as what long-term got as a a great answers. Dave strategy that all Jack update you we Henry. But This on questions Dave sure again, our more for after thing. a strategies not than and we have are I'm so short-term this information said, is And excited probably mentioned, about this.

opening the of with So please quarter day this that, to questions. or We're you provided. will now for now day regarding open comments. to Olivia, up our our questions the strategy concludes ready take call lines

[Operator Instructions].

with is coming line question of Kumar first from Our UBS. Rayna the

Your line is open.

morning and your Good all on modernization for technology program. Thanks details the Dave Kevin.

prompted alter questions competitive your that on in to to pricing your change helpful? few is strategy? technology your that second, there if strategy has environment any a the talk And that, modernization, be you can Just very you about would tied

this been and was wouldn't are I coders Rayna. this something as that two we've concerned, as you thank we We saw on driven developing ago. strategy years. this mentioned started started, We first competitors ago say Sure, far years earlier. as working half by programming again, I four started about a for years

disruption positioned happening So the saw this compete financial effectively by the anything among specifically, as for that much the customers our to I our future. and had driven wasn't was driven things by there, concern we services we the that's that being in doing that it outlined competitors

question those great enabled going forward. we for compete how is, technology are the that that And do customers ensure us so with can they so

similar know how strategy. second you I know to done will no as past. as there manner what to price solutions an This the is our unbundled in will won't past. I today cloud moving us in compared similar to Big to environment, that be will long know deliver is saying, cloud answer will a opposed us cloud will effectively this the questions that selling a to today. we you've in a the we've But public will seen term This strategy to private the environment. our those in that be It customers, Bang a us But we know on question, that be As long just strategy. pricing to ask be well by It's to price but my as your as I started cloud unbundled positioned term comments solutions enough solutions do to the we with you to core solutions in be offering solution. far what a

on year quarter, about the the back the your helpful. down you payments so very very of fiscal the break growth Can the that And and segment revenue half the up year XXXX? half or how thinking drivers That's that was growth revenue payments strong. some of this quarter, we XX% should a back of in question of in adjusted be your

first take chime Well, the I'll let and in here. I'll then Kevin

captured of business, in the as So the highlighted three to business, is business things ACH the is segment drivers refer and is has which it payment up made solutions, card we our that pay payment really components, we've what origination. bill enterprise different our past, an our

nice cards business. grower. although piloted really we As times, them to both the payments post it's business, many enterprise real business, a a not of business, bill a payments in growth and pay, the continued the business pay growth the slow successful bill have in very But it's two it's areas, of ton those

customers the look growth, And that have. the growth from two already new areas, far and additions, adding those same driving plus that. as that as to customers Kevin both comment new continued the sales we it's customer in so we're are organic ask So I'll on it's growth, forward, store

components fastest to new and payments, we'll three EPS to both, customers. credit we nice those debit have to I think so the and Yeah, which our nice larger of I margin them. add be the actually agree. in and continue a very our continue margin we enterprise continues as growing And see expansion to all mean, a continues three become payment solutions to of percentage,

And to going I for the future. So think change I right. is these sustainable are growth that those think drivers, foreseeable

Thank you.

question is coming next from with the KBW. Our Vasu of line Govil

Your open. line is

it's contribution, to of versus preserve I then for existing And lot existing us too much you the what my revenue question. you know this share And it that, realize opportunity to one of frame the a info. upgrading initiative, at customizable this to on clients you've I a time having converting be of long of new to initiative as looking incremental technology revenue how know but drive just but a early is thanks are comment follow-up strategy on strategy the for good on help new will what vision and about this for market? first term we to customers core? characterized in to Dave, taking core, think Hi, and around the sort

So there's in wrapped there. lot up a

the as in today of of one So beta fact the comments is made you have strategy that walking think beta with the core some in components as would of today. we was customers I that that the through They're I traditionally.

different as, and have this different system, about core new components. rewritten a will so bunch unbundled far live a and being as later the with think of functions calendar are a of to are within on there core all whole we functions you year customers function if platform. But So those in this process

as people over of where you'll you'll the customers gathering that it'll the happen. see see will core, has in industry a course a digital they're what a doing probably machine, be in brand. refer so side term, positive a will But with near to different And only that that the deploy years core who relatively

good the then in the really strategy and news created is of good the will with The already, platform platform, over come all of there relatively customers, all really near-term rest news these created the about functionality connections. this, time. thrilled we've overall, You'll the see I'm is in us doing all but that we've the the

to XXX already. I that referenced the we Fintechs connected are So

You port Well, past. so platform, of the what rewrote we've Jack Fintechs new Jack -- we gateway, connections this legacy to refer to technologies didn't break it well, how did the solutions. might to many fast? into these were over, able people tools you happen, ask with to that that as already we but our how to all those the we run the as worked to with those we far our Henry as in did we rewrote connect used various that connected do that Well, those had

allowed these Jack So any work with now that Jack Henry take to side, been them if through having connected connect advantage of we've time. new their platform, ability systems do already Fintechs to us these into They for they've to over but aren’t this the any work into do can without on working gained Henry now they gateway. all they're the additional

And with this another advantage strategy. so that's

is or to a they're platform, and a what or they'll far whether Henry then to able the happen big on at start without bang As these to services, Jack not as is will a will rendering Henry core time you'll consume customers customers, that migrating whether be they the core not, consume Jack they're those to be services means across, what see able available that conversion conversion. go they access they'll can through a be

talk their consume they to big services that of do their want over services won't People employees the conversion, If about consume core it's doing want they customers, So in to manage If we pace. their so anymore. as over they and it start time. and and conversion future not to disruptive at do that can a the kind a bang will platform do move to that. they can to new

flows to that customer model in. And so employ Jack and chooses with revenue depending in, how flowing on on comes new our Henry, the when depend that'll that

where sure we've strategy going, customers under covers -- with the part they the making been not. As this positive. far about your response are existing of overwhelmingly a retain last question absolutely simply is shared this we we're customers as to I mean, think has the our already customers, know some

connectivity them. of XX fact we're we my different they helping Fintechs. investment new to believe have position mentioned, signed exposed easy quarter customers in them in a as the they've last the know protecting they signing, Solutions in comments, I sure make them some into customers, with quarter. that's been of that some the just Jack for them, us So and signed I that existing mentioned are like we partnered But the for be future future, all that We that strategy these of core we the because their have our and to future, protecting Henry technology for provider certainly deals with know the [ph] their

not, doing, the we're this far, excited it's we're been that what response about customers are existing people so great So, and know opportunity.

color. that's on the great just And for ones just you, lot a first, two Kevin, quick Thank year-on-year. of of guide expansion flight margin

Just half weigh imply the it year, seasonality margins half. cash on the basis you lagging had this I that contraction are even in is sort follow-up free first trends seems if has the a in solid on And incremental back the might some but would then margin and if we've just there that guide what XX in items typically have the second some know flow. been. seen there's just any it of previously quarter, there's wondering I And like on historically of that what in half the versus month back trailing happen will curious it's expected?

going So you could and you expect that for free what's what maybe -- talk cash conversion if trend forward? about driving flow

Yes.

with the So QX QX a in are XXX, so on margins, under probably keep recognizing half. QX. revenue back I in remember, ASC under little margin revenue we're strong, conservative that expense you're without related and rules rec much so but to when on the up the mean But it's the new hard

retain to some as costs go on our to mean it's are and think said year mean, -- I just I comments, also, in there I opening out XX up. that. And costs focused there expansion bps. travel So continue the talent, margin we're personnel our I is challenges for and

a very So from margin expansion but bps this a I'm probably there. that we're maintain it little see XX-plus where bullish and we goes conservative, year still can

to QX all a drives billings which flow. obviously, and should our our QX billing maintenance QX, free As cash June -- free in is $XXX of in Xst, as cash and we that's cash and of is of flow be mean, $XXX free year, our QX and it I annual the the roughly what flow, this maintenance strong million far and that you of as orders collect million, that because lot annual

back it. to of So net XXX% we will but know if up make where we last we're get cash a we last little a ground were to I really free conversion behind year, to lot Will this of income probably, doubt up year. flow where year, were don't in we I catch QX. we

Great, thank you very much.

And with Northcoast question our comes Research. Kartik from Mehta next

is line Your open.

that partnerships, morning. Dave, mean on more have core you you'll so more maybe do customer? just good new partnerships that your strategy, at Hey, will a think

hesitate and because assume think I implied reselling to technology. sales rev word lot our Yes, there's in I people partnership reps the use else's that are that, somebody a share there's

is the there shy usually Will be to word our provider on partnership. far into for core side willingness from known out ability Maybe, connect involved as more Jack our open most maybe Henry away in I So and The as being customers? the third has parties already not. systems. thing for there easily the that our

the infrastructure their And enable the strategy, financial what's institution so for the strategy. need do what it them, deciding is what's to will what depend they on -- into strategy that right to and connect our

-- a lot open of people for again, surface, our been don't of because, already lot we've providing that I a that know just I say that So on take customers, think, advantage the solutions would its of years. I

involved, trying Okay, think that there parties I that if Jack changes dynamics the Henry? revenue was for I guess do more are to, you third to get

there's any think that don't Jack I in negative for Henry.

on as is there Henry, I'm living same living a be of environment, platform the certainly will all I in solutions by positive that of far offered will think technology that concerned. as because same no be that the tremendous amount negative that in in Jack the

that's said, number so already very Dave tied large into a Fintechs as XXX Kartik, Yes, we're mean I in there.

but on customer customers' maybe, needs. basis, go a per number the will that it will depend up, So on right,

impact. or And get to obviously, you on to the increases customers? because that then with Are is a have, you you there have of increases, your limitations what annual big the you contracts just any do having inflation able can contracts

not contract virtually virtually obviously Yes, into are there contract, accelerators are -- built those. every CPI are every built CPI every there but accelerators that in into contract

a evaluation So through and call opportunities where a as determine the are to I in think product about CPI to those talked same opportunities. right or company on I last that engage leverage evaluation, we're overall those the basis going we're doing

talked demand wanting an And that And a is Dave, to one conversion with there making last think I I'm conversion to happening platform. is increased because then COVID outsource adding and you one what's just banking banks or reason eventually platform your about to that's another of teams? these you then credit that your union for team there's question. wondering and add

we that financial biggest The financial institutions. I convert/merge acquiring specifically and when is coming we of us conversion teams institutions bank, convert need -- platform to this to acquired driver help we the thing, revenue, just we biggest [ph]. Hey, And the other us Jack Jack have them driver. you as and do And it on refer to guys to saying, new. That's that Henry refer the Henry

winning pretty and that I all new conversion these doing banks logos Of steady. credit customers run a those on regularly. unions. report quarter, XX, But to teams, We're XX pretty course, and as Jack That we're runs new very new steady. Henry they

credit goes customers, referring did customers mentioned, customers being platforms. to driven looking Henry guess them in add teams demand banking systems. Jack was because more Henry converting is the union are who on Jack I next already. adding team I over team -- sitting everything team The union as evaluating, we're help, credit much the acquiring needing among by pretty other And right to a there I So -- there And our additional we now. two to much is and customers in quarter possibly we're this to our into effect so here then

they said convert a customer acquired in existing need. it of takes got a the bank Dave time on they've to place a amount a already customer that an than a new just core to is system logo, new enormous reminder, as And convert or Kartik, to being that basically convert/merge because

you Thank appreciate very both it. it. Got much,

next Swanstrom question [indiscernible]. Ian Our comes with from

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Yes.

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much perhaps computer, I strategy. are want sure let's here and the on the Hey, up I just a onboarding could Jack they great. for And all they perhaps I any marketplace almost make the for quickly software decide? is sit Jack -- new in enticement the -- or have even of the open download can is self-onboard they for of you executive, that Henry front rapid of part banking kind understand product that whatever detail product to where correctly, so can say, the Thanks Are an you creating third-party Henry guess product? say, like them,

what you're what than is where We're Dominick. announcing. alluded That get bigger just we're going, is I a announcing to. this Yes, much you not platform

So of in systems. the in this think is core essentially and people complementary all that as we the that being today banking functions -- associated system

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end this to perhaps Great. is stuff, the use is are it you and or cost optionality about ease it this keys it going once complete And -- provide that the of what functionality their just better products, everything them then some this they're any that's Thanks. even of than I guess of functionality when what you on is see their once end, today, color put use? of all end strong user they of is provides what see competitive they is the among edge, saves, think it users tangibly Great. the there speed, to

discuss with in this audiences And two think I Yes. I'll mind. different

which credit union. the or our So customer, bank is is one

which is business. or consumer their the other is small The customer,

first start with customer. our me let So

One is of in the advantages around key strategy this security. like topic a the of

around four credit the in brittle the that's today financial that this highly primary were What screen insecure, years. So screen the for is scraping the that scraping, have XX I years, many been fact the exchanges. financial I process first highlighted I've relationships need people for data with bank we data for exchanges been industry or in eliminates and does started think union and the it industry. I when for

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dead for of We on our scraping set all customers. are screen eliminating

between of Fintechs institutions one data exchange secure of that financial security the here. So and and is keys

you, clients of certainly want for Jack the directly use can disruption idea in Jack So for for they customer about articulate banking you this to you application digital about it industry when we the security. use financial Jack run business, a union platform, experience, the they the more application, Think the segments they're to of is, But when go -- because the are best the not to the only about And They bank forget you credit if technology niches now or the public the think think Speed, our your the on over you balance that about added your think small bank's to with, Henry they to that but customize bank go Not that the in website. their running define app biggest about targeting all is want the the is advantage your app. by to scalability, but on you you bank their whoever offering could the the balance. you same that same see on or big they third-party bank's bank see this Henry crypto all another iPhone. presentation right flip that -- you about and it mobile into a technology target. crypto to what the after, the That's things it's benefits the what take crypto see balance. also in the being market the the can stuff our I what can that's of part customers. way and same can by it advantage end on they opportunity customer. that is cloud, the that app, holding in maybe end all this do think or platform. consumer I the talking solutions advantages and now same presentation on that for can is those or in I'm all same happening customer, when one balance that has Henry saying closing our see institution, app the you and turn things user, your customers fintech opportunity the I'm not of sheet, could end your can opening

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Ken question next Autonomous from line the Suchoski coming Research. with Our of

is open. line Your

your the acquisition the modern us offering taking question. see peers because for Kevin. just Fiserv We announced you I digital I was your the And week platform. saw Finxact. on of if and talk appreciate long-term to give David cloud morning first the to native sense about this good compares wanted strategy. how Thanks we can for ask I Hi its a offering. about FIS banking update wondering

offering and areas where providers to to catch is kind So bring theirs, where you of you're be with thoughts your up just to there you need think where it par those up offering your your get are superior great to areas differentiated? versus would are maybe there on

Yes.

business in we I I'm into our thing So an are not on offering. competitors very know that call going The earnings describing will what is well. Ken, solutions the those say

do. what We is do. to This we technology is we credit again, have this Delivering banks is and solutions investigating -- unions for been years. all

core. solution, think independence. are know the as the core doing. is are technology we talked solution. gave unbundling we that part no is competitors our that what delivering so what core is solution a This you completely what And about not is I've because have here, Jack There right? Both differentiated is core. Henry it And I confidence about, just in every is the a solutions. redefining of examples This just

what thing dependence that talking other legacy database underneath here. is what requirement have no we're about and highlight, database talking a legacy core solution about on you here. we're There no The the I'll the that with

others totally strategy named. from it's a the differentiated you that So

ability our disrupt a something market. strategy anybody are So our term else company where week. created that very and we the here what going is next we've isn't in going is for again, feel market. to long-term out But how and confident This rolling This we're discussion. the of long we in is to this differentiate kind the a against

in platform to or vehicles the this Dave place chassis in said the the is place. example, as in earlier, But

as summer on some pieces general parts that of out now, already so not later will in platform Dave solutions core, That's out And core the beta. got availability. it's already the but mentioned, the that's and be we've beta this rolled in

really really the Okay. analogy I car to it's down Great. it helpful That's of all dumb helpful. like us. for

offerings. is into clients these interesting guess next to for I about these solutions, embed of fintechs question the -- me think their unbundling choice talking allowing I you're it's that

these to pretty so seems how offering today? were you're your into not going they as that's it just they're a those customers locked that like products, maybe are you aren't headwind much revenue any create forward like functions. you mean comfortable Or open I do legacy tied And going as not before? into you're unbundling because feel

Jack connections and that $XXX,XXX open -- is the continues to to this charging into a solutions. like just to our without Jack is, of open these And for and pretty This feel I connect Henry support philosophy question had why we we've connectivity continue been Well, we're today. does be. has creating Henry -- answer idea somebody

our for This new Jack at because they This we reason are successful. that know all way customers, Our truly relatively we to connectivity. they something been to with if that offer This do is us. it that make make we customers business it's the philosophy inexpensive. of stuff to And successful, Jack make always part new. that's isn't the and try Henry, making will help job easy been our Henry. And isn't a them committed has

and help continued options just successful, it's as from those to again, our our and And to people. many you create more Henry, for they that others are you I Why of easy do easy create systems? so in counterintuitive job your people you barriers make it is committed we connect it's and truly people is the most business buy solutions so to us that, can the with with business we think be space? because to And customers as because try want to to that do it we Jack doing Why them. and extension don't make to this into want philosophy.

then last That's sneak really I just here. one one helpful, maybe if And could David.

strategy. in at working the long-term expansion mentioned of and think with all requirements this going on margin beyond? XXXX operating of you points the do that I is the last this been the requirements and for strategy forward that this increase years, comfortable a to really to XX you've CAPEX couple this you build Does still basis out feel or XX expense or

XX% my the back been you now. and we've revenue telegraphing a of to we're so all putting that we've there, guided, for comments Everything R&D, that that number years my is Yes. commentary into

in sticking point we've the are revenue, that the additional We us invest year with of number. that rising numbers $XX essentially, And million all about creating there that's guidance has provided. R&D. And the a for a into on that XX% in money that all is baked key Kevin provided, to is

our doesn't do solutions. that great require existing our to on slowdown complementary our cores any us in work So support of do any teams to the existing

number, this been. as dollars that on with critical revenue All rising XX% continues for to additional of for company. -- this us against But additional just because a sticking initiative that it creates has we're R&D our put these

two to we And years. need But take with strategy can several working years. that, long a no accelerate developers a on So for for be for us no I developed this been to to or two on execute to want CAPEX, but everybody, been so to has We've strategy. on half strategy need this continue wonderful us clear coding by had we've for earnings anything for the time. and hit the like way, to

long half that and write this this actually thinking -- two starting didn't started two ago. ago, code just had time. we coders We for So a years two about I or this and want been be half we've to about about on start to clear thinking years

is this in XX%, strategy in And team on place. that and has been new focused growing the that

to continue We other feature their functionality. from of have have any products increase because to our other developers taken and we won't products, not keep those we

going It's not take long-term last to of our this been over strategy it's development. any place in just put away the years. So that's from few existing

it. got forward much, look progress. Okay, a you to very Makes following of Thank lot the sense.

turn will I now to I back call Williams. am questions. showing Mr. Kevin the no over further

Thank you.

way we the by results want and obviously operations of to continue and are company forward of rolled continue to they I care pleased from the currently endeavoring very for the future strategy to have We our the are to our all taking out. and our thank they that future. improve our extremely with new ongoing excited for handled the for associates themselves hard with moving work that customers the challenges

again what the And number? All today. to joining will and our of Jack for shareholders. is provide thank please Henry replay best I to continue us customers us want on you at focus you for Olivia,

That our today's replay for is code access XXXXXXX. Ladies today. conclude number for gentlemen, conference is entering XXXXXXX. you your and again Again, access X-XXX-XXX-XXXX, does it the participation. is code X-XXX-XXX-XXXX, Thank replay

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