CoreCard (CCRD) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 17% year-over-year to $15.7 million, surpassing expectations due to early license revenue and strong professional services and processing revenue.

• Net income for Q3 2024 was $2.2 million, reversing a net loss of $0.2 million in Q3 2023.

• Adjusted earnings per diluted share for Q3 2024 were $0.30, up from $0.09 in the prior year quarter.

• Renewed long-term agreement with Goldman Sachs extends through 2030, providing revenue visibility and higher managed services fees starting 2025.

• Share repurchases totaled $5.4 million in the first nine months, with $9.3 million remaining authorized for future repurchases.

Financial highlights

• Q3 2024 total revenue was $15.7 million, up 17% year-over-year; nine-month revenue was $42.6 million, down 3%.

• License revenue: $1.4 million; professional services: $7 million; processing and maintenance: $6.1–$6.4 million; third-party: $1.2 million.

• Income from operations was $2.8 million in Q3 2024, up from $0.4 million a year ago; operating margin rose to 18% from 3%.

• EPS was $0.27 vs. a loss of $0.03 last year; adjusted diluted EPS was $0.30 vs. $0.09.

• Adjusted EBITDA was $3.9 million, up from $1.9 million in Q3 2023; adjusted EBITDA margin was 24.9% vs. 14.3%.

Outlook and guidance

• Full-year 2024 total revenue expected to be approximately flat.

• Non-Goldman revenue growth for 2024 expected at 25%–30%, above previous 15%–20% guidance.

• Q4 2024 revenue guidance: $13.3M–$13.7M; EPS: $0.07–$0.09.

• 2025 guidance: total revenue $60M–$64M, EPS $0.88–$0.94, and non-Goldman revenue growth of 30%–40%.

• Sufficient liquidity expected to support operations and capital needs; excess cash targeted for FinTech expansion and share repurchases.