Q1 2025 Jack Henry & Associates Inc Earnings Call Transcript
Key Points
- Jack Henry & Associates Inc (JKHY) exceeded their first quarter outlook with a non-GAAP revenue growth of 5.3%, slightly ahead of the anticipated 5.25%.
- The company achieved record sales attainment in Q1, including six competitive core wins, with three financial institutions having over $1 billion in assets.
- Jack Henry & Associates Inc (JKHY) successfully hosted their largest client conference, Jack Henry Connect, generating significant sales leads.
- The company was recognized in several national Best Places to Work rankings, reflecting their strong culture and commitment to service.
- Their payments segment performed well, signing new clients for debit and credit processing, and expanding their presence on platforms like Zelle and FedNow.
- Revenue and margins were impacted by slower growth rates for on-premise annual maintenance and card processing.
- Several long-term software usage contracts closed in Q1 of the previous year, creating a difficult comparison for this quarter.
- There were challenges with competitors being less open than expected, affecting the integration of third-party core products.
- The company experienced a decrease in non-GAAP operating margin by 89 basis points, attributed to higher direct costs and increased personnel expenses.
- Operating cash flow decreased by $40 million compared to the prior period, reflecting a timing shift in annual maintenance collections.
good morning, and welcome to the Jack Henry First Quarter 2025 earnings conference call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions to ask a question. You may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to Vance shared, Vice President of Investor Relations. Please go ahead.
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Thank you. Good morning, and they are doing the Jack in the first quarter of fiscal 2025 earnings call. Today, I'm joined by President and CEO, Greg Adelson, CFO and Treasurer. We currently following my opening remarks, Greg will share his insights on the first quarter of our fiscal year and provide observations on our business and industry. We will then discuss
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