Q3 2024 CoreCard Corp Earnings Call Transcript
Key Points
- CoreCard Corp (CCRD) reported a 17% year-over-year increase in total revenue for Q3 2024, driven by higher license, professional services, and processing and maintenance revenues.
- Income from operations significantly increased to $2.8 million in Q3 2024 from $0.4 million in the same period last year, with an operating margin improvement from 3% to 18%.
- The company has over $28 million in cash and marketable securities, indicating strong liquidity and the ability to continue investing in its new platform and share buybacks.
- CoreCard Corp (CCRD) renewed its agreements with Goldman Sachs, extending them through December 2030, which provides increased revenue visibility and stability.
- Non-GAAP adjusted diluted EPS improved to $0.30 in Q3 2024 from $0.09 in Q3 2023, reflecting better operational performance and cost management.
- The company's auditor decided not to stand for reappointment, necessitating the search for a new auditor, which could introduce transitional challenges.
- Revenue growth excluding the largest customer was only 7% year-over-year, indicating potential over-reliance on major clients for growth.
- The Legacy Cabbage business continues to decline, negatively impacting overall revenue growth.
- The company expects total revenue for the full year 2024 to be approximately flat, suggesting limited growth prospects in the near term.
- There is uncertainty surrounding the future of the Apple card program, which could impact CoreCard Corp (CCRD)'s revenue if the program transitions to another bank.
Ladies and gentlemen, greetings, and welcome to CoreCard third 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. Please go ahead, sir.
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, probably more than you are typically used to, and answer questions at the conclusion of my prepared remarks.
Before I start, I'd like to remind everyone that during the call, we will be making certain forward-looking statements to help you understand CoreCard Corporation and its business environment. These statements involve a number of risk factors, uncertainties and other factors that could cause actual results
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