CoreCard Corporation Reports Third Quarter 2024 Results
NORCROSS, Ga., Oct. 31, 2024 (GLOBE NEWSWIRE) -- CoreCard Corporation (NYSE:CCRD), the leading provider of innovative credit technology solutions and processing services to the financial technology and services market, announced today its financial results for the quarter ended September 30, 2024.
"Overall revenue of $15.7 million in the third quarter, an increase of 17% compared to last year, exceeded our expectations, reflecting license revenue earlier than expected, continued growth in processing and maintenance revenue and higher professional services revenue. We continue to invest in our platform and processing capabilities, which are showing encouraging results. CoreCard provides a best-in-class credit platform that is extremely well positioned to capture the growing demand for next-generation card management platforms by large and complex modern card issuers," said Leland Strange, CEO of CoreCard Corporation.
"For the fourth quarter of 2024, we expect total revenue between $13.3 and $13.7 million and earnings per share between $0.07 and $0.09. For fiscal year 2025, we expect total revenue between $60 million and $64 million and earnings per share between $0.88 and $0.94. We expect full-year 2025 revenue growth, excluding our largest customer, to be 30-40%," said Matt White, CFO of CoreCard Corporation.
Financial Highlights for the three months ended September 30, 2024
Total revenues in the three-month period ended September 30, 2024, was $15.7 million compared to $13.4 million in the comparable period in 2023.
In the following table, revenue is disaggregated by type of revenue for the three months ended September 30, 2024 and 2023:
Three Months Ended
September 30,
(in thousands)
2024
2023
License
$
1,420
$
−
Professional services
7,006
6,432
Processing and maintenance
6,067
5,814
Third party
1,210
1,153
Total
$
15,703
$
13,399
Income from operations was $2.8 million for the third quarter compared to income from operations of $0.4 million in the comparable prior year quarter.
Net income (loss) was net income of $2.2 million for the third quarter compared to a net loss of $0.2 million in the comparable prior year quarter.
Earnings per diluted share was $0.27 for the third quarter compared to a loss per share of $0.03 in the comparable prior year quarter.
Adjusted earnings per diluted share was $0.30 for the third quarter compared to $0.09 in the comparable prior year quarter.
Adjusted EBITDA was $3.9 million for the third quarter compared to $1.9 million in the comparable prior year quarter.
Use of Non-GAAP Financial Measures
Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section of the tables titled "Information Regarding Non-GAAP Financial Measures".
Investor Conference Call
The company is holding an investor conference call today, October 31, 2024, at 11:00 A.M. Eastern Time. Interested investors are invited to attend the conference call by accessing the webcast at https://www.webcast-eqs.com/register/corecard103124/en or by dialing 1-877-407-0890. As part of the conference call CoreCard will be conducting a question-and-answer session where participants are invited to email their questions to prior to the call. A transcript of the call will be posted on the company's website at investors.corecard.com as soon as available after the call.
The company will file its Form 10-Q for the period ended September 30, 2024, with the Securities and Exchange Commission today. For additional information about reported results, investors will be able to access the Form 10-Q on the company's website at investors.corecard.com or on the SEC website, www.sec.gov.
About CoreCard Corporation
CoreCard Corporation (NYSE:CCRD) provides the gold standard card issuing platform built for the future of global transactions in an embedded digital world. Dedicated to continual technological innovation in the ever-evolving payments industry backed by decades of deep expertise in credit card offerings, CoreCard helps customers conceptualize, implement, and manage all aspects of their issuing card programs. Keenly focused on steady, sustainable growth, CoreCard has earned the trust of some of the largest companies and financial institutions in the world, providing truly real-time transactions via their proven, reliable platform operating on private on-premise and leading cloud technology infrastructure.
Forward-Looking StatementsThe forward-looking statements in this press release are made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. The Company's actual results could differ materially from those indicated by the forward-looking statements because of various risks and uncertainties including those listed in Item 1A of the Company's Annual Report on Form 10-K and in the Company's other filings and reports with the Securities and Exchange Commission. All of the risks and uncertainties are beyond the ability of the Company to control, and in many cases, the Company cannot predict the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. When used in this press release, the words "believes," "plans," "expects," "will," "intends," "continue," "outlook," "progressing," and "anticipates" and similar expressions as they relate to the Company or its management are intended to identify forward-looking statements. Except as required by law, the Company is not obligated to publicly release any revisions to these forward-looking statements to reflect the events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.
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CoreCard CorporationCONSOLIDATED STATEMENTS OF OPERATIONS(unaudited, in thousands, except share and per share amounts)
Three Months Ended September 30,
Nine Months Ended September 30,
2024
2023
2024
2023
Revenue
Services
$
14,283
$
13,399
$
41,156
$
42,053
Products
1,420
-
1,420
1,794
Total net revenue
15,703
13,399
42,576
43,847
Cost of revenue
Services
8,999
9,279
27,588
28,380
Products
−
-
−
-
Total cost of revenue
8,999
9,279
27,588
28,380
Expenses
Marketing
79
63
309
237
General and administrative
1,339
1,155
4,256
4,220
Development
2,501
2,489
5,961
6,094
Income from operations
2,785
413
4,462
4,916
Investment income (loss)
(90
)
(1,015
)
(528
)
(1,701
)
Other income (loss), net
233
308
758
653
Income (loss) before income taxes
2,928
(294
)
4,692
3,868
