CoreCard (CCRD) Q4 2024 earnings summary

Executive summary

• Fourth quarter 2024 revenue reached $14.8 million, up 22% year-over-year, driven by unexpected license revenue and strong growth in processing and maintenance revenue.

• Full year 2024 revenue was $57.4 million, a 2% increase from 2023, with processing and maintenance revenue up 7% year-over-year.

• Revenue and profits exceeded expectations, with significant growth outside the largest customer, driven by new customer onboarding and partnerships.

• Net income for Q4 2024 was $1.9 million, up from $0.5 million in Q4 2023; full year net income was $5.4 million, up from $3.4 million.

• The company is exploring strategic alternatives, including a potential sale or new leadership, to maximize shareholder value.

Financial highlights

• Total Q4 2024 revenue was $14.8 million, up 22% year-over-year; services revenue grew 10% year-over-year.

• License revenue for Q4 was $1.4 million; professional services $6.2 million; processing and maintenance $6.1 million; third-party $1.1 million.

• Income from operations for Q4 2024 was $2.1 million, up from $0.4 million in Q4 2023; full year income from operations was $6.5 million, up from $5.3 million.

• Q4 2024 diluted EPS was $0.24, up from $0.06 in Q4 2023; full-year 2024 diluted EPS was $0.67, up from $0.40 in 2023.

• Adjusted EBITDA for Q4 2024 was $3.3 million, up from $1.6 million in Q4 2023; full year adjusted EBITDA was $11.4 million.

Outlook and guidance

• 2025 revenue expected between $60 million and $64 million; EPS guidance $0.88 to $0.94.

• Revenue growth excluding the largest customer projected at 30%-40% for 2025.

• No license revenue expected in 2025; growth to be driven by processing and professional services.

• Q1 2025 revenue expected between $14.4 million and $15 million; EPS between $0.15 and $0.19.