Q4 2024 Jack Henry & Associates Inc Earnings Call Transcript
Key Points
- Jack Henry & Associates Inc (JKHY) reported record revenue and operating income for fiscal 2024, with $2.2 billion in revenue and $489.4 million in operating income.
- The company set an all-time record for sales bookings in both the fourth quarter and the fiscal year, including 22 competitive core wins in Q4 and 57 for the fiscal year.
- Significant growth in the Banno platform, with 45 new clients for Banno retail and 50 new Banno business deals in Q4, and 179 new Banno retail contracts and 164 new Banno business contracts for the fiscal year.
- Strong performance in the payments segment, with 21 new card processing clients in Q4 and 56 for the fiscal year, along with 16 new Financial Crimes Defender contracts in Q4 and 52 for the fiscal year.
- High client satisfaction scores, with an average of 4.74 out of 5.0, indicating strong customer service and engagement.
- Operating income growth was modest, with only a 1% increase for Q4 and 2% for the fiscal year on a GAAP basis.
- Deconversion revenue decreased significantly, with Q4 deconversion revenue at approximately $7 million, down from $15 million the prior year.
- SG&A expenses increased notably, with an 18% rise on a GAAP basis for the fiscal year, partly due to one-time expenses.
- The company faces challenges in maintaining its high return on invested capital (ROIC), which has decreased slightly due to recent acquisitions and debt.
- Q1 fiscal 2025 guidance indicates a slower start, with expected non-GAAP revenue growth of approximately 5.25% and a 100 basis points contraction in non-GAAP margin.
Good morning, and welcome to the Jack Henry fourth quarter 2024 earnings conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Vance Gerard, Vice President, Investor Relations. Please go ahead.
Thank you, Drew, and good morning, and thank you for joining us for the Jack Henry fourth quarter and full year 2024 earnings call. Joining me on the call today is President and CEO, Greg Adelson; and Mimi Carsley, CFO and Treasurer. After my opening remarks, I will turn the call over to Greg for his comments on our fourth quarter results and observations related to our business in the industry.
Mimi will then provide commentary around the financial results and fiscal '25 guidance included in the press release issued yesterday is available from the Investor Relations section of the Jack Henry website. We will then open the lines for Q&A.
As a reminder, this call includes certain forward
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