Jack Henry & Associates (JKHY) 46th Annual William Blair Growth Stock Conference summary

Company overview and culture

• Celebrated 50 years in business and 40 years as a public company, emphasizing a people-first and service-oriented culture.

• Maintains high employee engagement and customer loyalty, with over 99% recurring customer retention and 55% of clients with 20+ years of partnership.

• Focuses on serving U.S. community and regional banks and credit unions, intentionally avoiding Tier 1 banks.

• Operates in a highly regulated industry, providing mission-critical technology solutions.

• Recognized for service quality and innovation, with strong customer satisfaction scores and industry awards.

Market and client landscape

• Addresses a large, growing market of over 9,500 U.S. banks and credit unions, with assets increasing despite a decline in the number of institutions.

• Holds 27% market share in $1B-$10B banks and 47% in $500M-$10B banks.

• Clients prioritize deposit growth, loan growth, operational efficiency, and AI adoption.

• Over 88% of surveyed CEOs plan to increase IT spend, mostly by 6%-10% in the coming year.

Strategic priorities and innovation

• Invests 14%-15% of revenue annually in R&D, totaling $1.5B over five years, to drive tech modernization and AI innovation.

• Publishes six-month product roadmaps, focusing on digital expansion, AI, treasury management, fraud solutions, and account opening.

• Five years into a tech modernization journey, with 20 of 30 core system components in market or beta.

• Modular approach allows clients to adopt new components without full system migration.

• Platform is cloud-native, primarily on Google Cloud, with regulators expected to approve full public cloud use in coming years.