CoreCard Corporation Reports First Quarter 2024 Results
CoreCard reported its first quarter 2024 financial results, with total revenues of $13.1 million, reflecting a 13% growth in processing and maintenance. However, professional services revenue declined due to a major customer. The company remains optimistic about its platform and onboarding new customers.
Continued year-over-year growth in processing and maintenance by 13%.
Ongoing investment in platform and processing capabilities yielding positive results.
Onboarding new customers that value CoreCard's platform features.
Decline in professional services revenue due to the impact of the largest customer.
Net income and earnings per diluted share decreased compared to the prior year quarter.
Adjusted EBITDA decreased to $1.7 million from $3.5 million in the prior year quarter.
NORCROSS, Ga., May 02, 2024 (GLOBE NEWSWIRE) -- CoreCard Corporation (NYSE: CCRD) (“CoreCard” or the “Company”), 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 March 31, 2024.
"Overall revenue of
Financial Highlights for the three months ended March 31, 2024
Total revenues in the three-month period ended March 31, 2024, was
In the following table, revenue is disaggregated by type of revenue for the three months ended March 31, 2024, and 2023:
| Three Months Ended | ||||
| March 31, | ||||
| (in thousands) | 2024 | 2023 | ||
| License | $ | -- | $ | -- |
| Professional services | 5,826 | 8,341 | ||
| Processing and maintenance | 6,152 | 5,430 | ||
| Third party | 1,098 | 985 | ||
| Total | $ | 13,076 | $ | 14,756 |
Income from operations was
Net income was
Earnings per diluted share was
Adjusted earnings per diluted share was
Adjusted EBITDA was
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, May 2, 2024, at 11 A.M. Eastern Time. Interested investors are invited to attend the conference call by accessing the webcast at https://www.webcast-eqs.com/corecard050224/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 questions@corecard.com 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 March 31, 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
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 Statements
The 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.
| CoreCard Corporation CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except share and per share amounts) | ||||
| Three Months Ended March 31, | ||||
| 2024 | 2023 | |||
| Revenue | ||||
| Services | ||||
| Products | -- | -- | ||
| Total net revenue | 13,076 | 14,756 | ||
| Cost of revenue | ||||
| Services | 9,500 | 9,804 | ||
| Products | -- | -- | ||
| Total cost of revenue | 9,500 | 9,804 | ||
| Expenses | ||||
| Marketing | 114 | 69 | ||
| General and administrative | 1,427 | 1,549 | ||
| Development | 1,508 | 1,514 | ||
| Income from operations | 527 | 1,820 | ||
| Investment income (loss) | (204 | ) | (241 | ) |
| Other income, net | 256 | 90 | ||
| Income before income taxes | 579 | 1,669 | ||
| Income taxes | 149 | 413 | ||
| Net income | ||||
| Earnings per share: | ||||
| Basic | ||||
| Diluted | ||||
| Basic weighted average common shares outstanding | 8,236,135 | 8,502,735 | ||
| Diluted weighted average common shares outstanding | 8,247,788 | 8,531,541 | ||
| CoreCard Corporation CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) | ||||
| As of | March 31, 2024 | December 31, 2023 | ||
| ASSETS | (unaudited) | (audited) | ||
| Current assets: | ||||
| Cash | ||||
| Marketable securities | 5,305 | 5,230 | ||
| Accounts receivable, net | 8,189 | 7,536 | ||
| Other current assets | 5,173 | 4,805 | ||
| Total current assets | 42,723 | 44,489 | ||
| Investments | 3,823 | 4,062 | ||
| Property and equipment, at cost less accumulated depreciation | 11,688 | 11,319 | ||
| Other long-term assets | 3,857 | 3,956 | ||
| Total assets | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
| Current liabilities: | ||||
| Accounts payable | ||||
| Deferred revenue, current portion | 1,635 | 2,310 | ||
| Accrued payroll | 1,556 | 2,172 | ||
| Accrued expenses | 1,167 | 971 | ||
| Other current liabilities | 2,778 | 2,530 | ||
| Total current liabilities | 9,061 | 9,540 | ||
| Noncurrent liabilities: | ||||
| Deferred revenue, net of current portion | 186 | 265 | ||
| Long-term lease obligation | 899 | 1,121 | ||
| Other long-term liabilities | 295 | 196 | ||
| Total noncurrent liabilities | 1,380 | 1,582 | ||
| Stockholders’ equity: | ||||
| Common stock, | ||||
| Issued shares – 9,016,140 at March 31, 2024 and December 31, 2023 respectively; | ||||
| Outstanding shares – 8,160,758 and 8,295,408 at March 31, 2024 and December 31, 2023, respectively | 90 | 90 | ||
| Additional paid-in capital | 16,781 | 16,621 | ||
| Treasury stock, 855,382 and 720,732 shares at March 31, 2024 and December 31, 2023, respectively, at cost | (22,006 | ) | (20,359 | ) |
| Accumulated other comprehensive income | 35 | 32 | ||
| Accumulated income | 56,750 | 56,320 | ||
| Total stockholders’ equity | 51,650 | 52,704 | ||
| Total liabilities and stockholders’ equity | ||||
For further information, call
Matt White, 770-564-5504 or
email to matt@corecard.com
| Reconciliation of GAAP to NON-GAAP Measures |
Information Regarding Non-GAAP Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), this press release contains certain non-GAAP financial measures. CoreCard considers Adjusted EBITDA and Adjusted earnings per diluted share (“Adjusted EPS”) as supplemental measures of the company’s performance that is not required by, nor presented in accordance with GAAP.
We define Adjusted EBITDA as net income (loss) adjusted to exclude depreciation and amortization; share-based compensation expense; income tax expense (benefit); investment income (loss); and other income (expense), net. We believe that Adjusted EBITDA is an important measure of operating performance because it allows management and our board of directors to evaluate and compare our core operating results from period to period.
We define Adjusted EPS as diluted earnings per share adjusted to exclude the impact of share-based compensation expenses. We believe that Adjusted EPS is an important measure of operating performance because it allows management and our board of directors to evaluate and compare our core operating results from period to period.
Adjusted EPS and Adjusted EBITDA should not be considered in isolation, or construed as an alternative to net income, or any other performance measures derived in accordance with GAAP, or as an alternative to cash flow from operating activities or as a measure of the company's liquidity. In addition, other companies may calculate Adjusted EPS and Adjusted EBITDA differently than CoreCard, which limits its usefulness in comparing CoreCard’s financial results with those of other companies.
The following table shows CoreCard’s GAAP results reconciled to non-GAAP results included in this release:
| Three Months Ended | |||||||
| March 31, | |||||||
| (in thousands) | 2024 | 2023 | |||||
| GAAP net income | $ | 430 | $ | 1,256 | |||
| Share-based compensation | 160 | - | |||||
| Income tax benefit | (40 | ) | - | ||||
| Adjusted net income | $ | 550 | $ | 1,256 | |||
| Adjusted EPS | $ | 0.07 | $ | 0.15 | |||
| Weighted-average shares | 8,248 | 8,532 | |||||
| Three Months Ended | |||||||
| March 31, | |||||||
| (in thousands) | 2024 | 2023 | |||||
| GAAP net income | $ | 430 | $ | 1,256 | |||
| Depreciation and amortization | 1,025 | 1,695 | |||||
| Share-based compensation | 160 | - | |||||
| Investment loss | 204 | 241 | |||||
| Other income, net | (256 | ) | (90 | ) | |||
| Income tax expense | 149 | 413 | |||||
| Adjusted EBITDA | $ | 1,712 | $ | 3,515 | |||
FAQ
What were CoreCard 's total revenues for the first quarter of 2024?
What was the income from operations for the first quarter of 2024?
When is CoreCard 's investor conference call scheduled?
Where can investors access the Form 10-Q for the period ended March 31, 2024?
