Q1 2024 CoreCard Corp Earnings Call Transcript
Key Points
- CoreCard Corp (CCRD) reported a 13% year-over-year growth in processing and maintenance revenue, indicating strong performance in this segment.
- Revenue growth excluding the largest customer and specific one-time impacts was 41% for Q1 2024, showcasing strong underlying business growth.
- CoreCard Corp (CCRD) has a robust cash position with over $24 million on the balance sheet as of March 31, 2024, providing financial stability.
- The company is actively engaging in share repurchases, with 134,650 shares bought back in Q1 2024, reflecting confidence in the stock's value.
- CoreCard Corp (CCRD) is onboarding new customers and has multiple implementations in progress, expected to go live in the coming months, which could drive future revenue growth.
- Total revenue for Q1 2024 decreased by 11% year-over-year, primarily due to lower professional services revenue from the largest customer, Goldman Sachs.
- The operating margin declined significantly to 4% in Q1 2024 from 12% in the same period last year, impacted by investments in new platforms and reduced professional services revenue.
- Earnings per diluted share decreased to $0.05 in Q1 2024 from $0.15 in Q1 2023, indicating lower profitability.
- The dependency on Goldman Sachs, which represented 59% of Q1 2024 revenues, poses a risk, especially as they are exiting certain business areas.
- There are uncertainties regarding the future processing of the General Motors card and the Apple Card, with potential impacts on revenue and client relationships.
Greetings, and welcome to the CoreCard first-quarter 2024 earnings conference call. (Operator Instructions) Please note, this conference is being recorded.
I'll now the turn the conference over to Matthew White, CFO. Thank you. You may begin.
Thank you, and good morning, everyone. With me on the call today is Leland Strange, Chairman and CEO of CoreCard Corporation. He will add some additional comments and answer questions at the conclusion of my prepared remarks.
Before I start, I'd like to remind everyone that during the call, we'll be making certain forward-looking statements to help you understand CoreCard Corporation and its business environment. These statements involve a number of risk factors, uncertainty and other factors that could cause actual results to differ materially from our expectations. Factor that may affect future operations are included in our filings with the SEC, including our 2023 Form 10-K and subsequent filings.
We'll also discuss certain
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