On August 20, 2024, Jack Henry & Associates Inc (JKHY, Financial) released its 8-K filing reporting the financial results for the fourth quarter and full fiscal year ended June 30, 2024. Jack Henry, a leading provider of core processing and complementary services for U.S. banks and credit unions, demonstrated robust financial performance, surpassing analyst estimates.
Quarterly Performance
For the fiscal three months ended June 30, 2024, Jack Henry reported GAAP revenue of $559.91 million, a 4.7% increase compared to the prior fiscal year quarter. Non-GAAP adjusted revenue grew by 6.4% year-over-year. GAAP operating income rose by 1.2%, while non-GAAP adjusted operating income increased by 5.3%. The company achieved GAAP earnings per share (EPS) of $1.38, up from $1.34 in the same quarter last year, surpassing the analyst estimate of $1.32.
Annual Performance
For the fiscal year ended June 30, 2024, Jack Henry reported GAAP revenue of $2.22 billion, a 6.6% increase compared to the prior fiscal year. Non-GAAP adjusted revenue grew by 7.4%. GAAP operating income increased by 1.8%, while non-GAAP adjusted operating income surged by 10.3%. The company achieved GAAP EPS of $5.23, up from $5.02 in the previous fiscal year, exceeding the annual analyst estimate of $5.16.
Financial Achievements and Metrics
Jack Henry's financial achievements are significant for the software industry, particularly in the financial technology sector. The company's ability to grow revenue and operating income while maintaining strong EPS growth highlights its operational efficiency and market demand for its services.
Key financial metrics include:
| Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| GAAP Revenue | $559.91M | $534.63M | $2.22B | $2.08B |
| Non-GAAP Adjusted Revenue | $559.91M | $534.63M | $2.22B | $2.08B |
| GAAP Operating Income | $1.38 | $1.34 | $5.23 | $5.02 |
| Non-GAAP Adjusted Operating Income | $1.38 | $1.34 | $5.23 | $5.02 |
Income Statement Highlights
Jack Henry's income statement reveals a balanced growth in both services and support revenue and processing revenue. Services and support revenue increased by 1.5% for the quarter and 5.0% for the fiscal year, driven by growth in data processing and hosting revenue. Processing revenue saw a 9.2% increase for the quarter and an 8.9% increase for the fiscal year, primarily due to growth in card revenue and transaction and digital revenue.
Balance Sheet and Cash Flow
As of June 30, 2024, Jack Henry reported cash and cash equivalents of $38 million, up from $12 million at the end of the previous fiscal year. The company reduced its debt outstanding related to credit facilities from $275 million to $150 million. Stockholders' equity increased to $1.84 billion from $1.61 billion.
Commentary and Future Outlook
"We are very pleased to report overall strong financial performance results for the fourth quarter and full 2024 fiscal year. We produced record revenue and operating income in fiscal year 2024 along with our highest-ever sales bookings in both the fourth quarter and fiscal year. Technology spending remains robust with significant demand for our innovative solutions. Even with record sales bookings, we continued to replenish and keep our sales pipeline near its all-time high. We are well positioned for future growth as we continue to invest in innovation, execute on our strategy, and deliver for our clients and shareholders." - Greg Adelson, President and CEO
Analysis
Jack Henry & Associates Inc (JKHY, Financial) has demonstrated strong financial performance, exceeding analyst estimates for both quarterly and annual earnings. The company's ability to grow revenue and operating income while maintaining strong EPS growth is a testament to its operational efficiency and market demand for its services. The reduction in debt and increase in cash reserves further strengthen its financial position, providing a solid foundation for future growth.
Value investors and potential GuruFocus.com members can find detailed insights and analysis on Jack Henry & Associates Inc (JKHY, Financial)'s financial performance by visiting the 8-K filing.
Explore the complete 8-K earnings release (here) from Jack Henry & Associates Inc for further details.
