CoreCard Corporation Reports Second Quarter 2024 Results
CoreCard (NYSE: CCRD) announced its second quarter 2024 financial results on August 1, 2024. Revenue for Q2 2024 was $13.8 million, down from $15.7 million in Q2 2023, due to declines in license and processing revenue. Income from operations dropped to $1.1 million from $2.7 million year-over-year. Net income was $0.9 million, compared to $1.9 million in the prior year quarter. Earnings per diluted share were $0.11, down from $0.22, while adjusted EPS was $0.15 versus $0.23. Adjusted EBITDA stood at $2.5 million, a decrease from $4.8 million in Q2 2023. The company attributes the lower revenue primarily to declines from Kabbage. CoreCard continues to invest in its platform and is onboarding new customers.
CoreCard (NYSE: CCRD) ha annunciato i risultati finanziari del secondo trimestre 2024 il 1° agosto 2024. Il fatturato per il Q2 2024 è stato di $13,8 milioni, in calo rispetto a $15,7 milioni nel Q2 2023, a causa della diminuzione dei ricavi da licenze e elaborazione. Il reddito operativo è sceso a $1,1 milioni rispetto a $2,7 milioni rispetto all'anno precedente. L'utile netto è stato di $0,9 milioni, rispetto a $1,9 milioni nel trimestre dell'anno precedente. L'utile per azione diluita era $0,11, in calo rispetto a $0,22, mentre l'utile per azione rettificato è stato di $0,15 rispetto a $0,23. L'EBITDA rettificato si è attestato a $2,5 milioni, in diminuzione rispetto a $4,8 milioni nel Q2 2023. L'azienda attribuisce il minore fatturato principalmente alle perdite da Kabbage. CoreCard continua a investire nella sua piattaforma e sta acquisendo nuovi clienti.
CoreCard (NYSE: CCRD) anunció sus resultados financieros del segundo trimestre de 2024 el 1 de agosto de 2024. Los ingresos para el Q2 2024 fueron de $13,8 millones, en comparación con $15,7 millones en el Q2 2023, debido a la disminución de los ingresos por licencias y procesamiento. Los ingresos de operaciones cayeron a $1,1 millones desde $2,7 millones en comparación con el año anterior. La ganancia neta fue de $0,9 millones, comparado con $1,9 millones en el trimestre del año anterior. Las ganancias por acción diluida fueron de $0,11, en comparación con $0,22, mientras que las EPS ajustadas fueron de $0,15 en comparación con $0,23. El EBITDA ajustado se situó en $2,5 millones, una disminución desde $4,8 millones en el Q2 2023. La empresa atribuye la disminución de los ingresos principalmente a las caídas de Kabbage. CoreCard sigue invirtiendo en su plataforma y está incorporando nuevos clientes.
CoreCard (NYSE: CCRD)는 2024년 8월 1일에 2024년 2분기 재무 결과를 발표했습니다. 2024년 Q2의 수익은 $13.8백만으로, 2023년 Q2의 $15.7백만에서 감소했습니다. 이는 라이센스 및 처리 수익의 감소로 인한 것입니다. 운영 소득은 전년 대비 $1.1백만으로 떨어졌습니다. 순이익은 $0.9백만으로, 이전 연도 분기에서의 $1.9백만 대비 감소했습니다. 희석 주당 순이익은 $0.11로, $0.22에서 하락하였고 조정된 EPS는 $0.15로 이전의 $0.23과 비교되었습니다. 조정된 EBITDA는 $2.5백만으로, 2023년 Q2의 $4.8백만에서 감소했습니다. 회사는 수익 감소를 주로 Kabbage의 감소로 설명하고 있습니다. CoreCard는 플랫폼에 계속 투자하고 있으며 새로운 고객을 유치하고 있습니다.
CoreCard (NYSE: CCRD) a annoncé ses résultats financiers pour le deuxième trimestre 2024 le 1er août 2024. Le chiffre d'affaires pour le T2 2024 s'est élevé à 13,8 millions de dollars, en baisse par rapport à 15,7 millions de dollars au T2 2023, en raison de la baisse des revenus de licences et de traitement. Le revenu d'exploitation a chuté à 1,1 million de dollars contre 2,7 millions de dollars l'année précédente. Le bénéfice net était de 0,9 million de dollars, comparé à 1,9 million de dollars au trimestre de l'année précédente. Le bénéfice par action diluée était de 0,11 dollar, en baisse par rapport à 0,22 dollar, tandis que le BPA ajusté était de 0,15 dollar contre 0,23 dollar. L'EBITDA ajusté s'élevait à 2,5 millions de dollars, en baisse par rapport à 4,8 millions de dollars au T2 2023. L'entreprise attribue la baisse des revenus principalement aux pertes de Kabbage. CoreCard continue d'investir dans sa plateforme et d'intégrer de nouveaux clients.
CoreCard (NYSE: CCRD) gab am 1. August 2024 seine Finanzzahlen für das zweite Quartal 2024 bekannt. Der Umsatz für Q2 2024 lag bei $13,8 Millionen, ein Rückgang von $15,7 Millionen im Q2 2023, was auf einen Rückgang der Lizenz- und Verarbeitungsumsätze zurückzuführen ist. Der operative Gewinn fiel auf $1,1 Millionen, verglichen mit $2,7 Millionen im Vorjahr. Der Nettogewinn betrug $0,9 Millionen, im Vergleich zu $1,9 Millionen im Vorjahresquartal. Der Gewinn pro verwässerter Aktie belief sich auf $0,11, ein Rückgang von $0,22, während das bereinigte EPS bei $0,15 im Vergleich zu $0,23 lag. Das bereinigte EBITDA betrug $2,5 Millionen, ein Rückgang von $4,8 Millionen im Q2 2023. Das Unternehmen führt den Rückgang der Einnahmen hauptsächlich auf Rückgänge von Kabbage zurück. CoreCard investiert weiterhin in seine Plattform und gewinnt neue Kunden dazu.
- CoreCard continues to invest in its platform and processing capabilities.
- The company is onboarding new customers that value CoreCard features and functionality.
- Revenue for Q2 2024 decreased to $13.8 million from $15.7 million year-over-year.
- Income from operations fell to $1.1 million from $2.7 million in the previous year.
- Net income dropped to $0.9 million from $1.9 million in Q2 2023.
- Earnings per diluted share declined to $0.11 from $0.22 year-over-year.
- Adjusted EBITDA decreased to $2.5 million from $4.8 million in the prior year quarter.
- Revenue decline attributed to lower license and processing revenue, particularly from Kabbage.
Insights
CoreCard's Q2 2024 results present a mixed picture for investors. The company reported total revenues of
Key financial metrics:
- Income from operations:
$1.1 million , down from$2.7 million in Q2 2023 - Net income:
$0.9 million , compared to$1.9 million in the prior year - Earnings per diluted share:
$0.11 , down from$0.22 - Adjusted earnings per diluted share:
$0.15 , down from$0.23 - Adjusted EBITDA:
$2.5 million , a significant decrease from$4.8 million
The absence of license revenue in Q2 2024 (
On a positive note, professional services revenue remained relatively stable and there was a slight increase in processing and maintenance revenue. The growth in third-party revenue (
While CoreCard's CEO highlighted ongoing investments in their platform and new customer onboarding, the financial results indicate pressure on profitability. Investors should monitor whether these investments translate into revenue growth and improved margins in future quarters.
CoreCard's Q2 2024 results reflect broader trends in the fintech sector. The company's focus on credit technology solutions positions it in a competitive and rapidly evolving market. However, the decline in revenue, particularly from license fees and processing revenue from Kabbage, raises questions about market dynamics and CoreCard's competitive position.
The absence of license revenue is particularly intriguing. This could indicate:
- A shift in customer preferences towards subscription-based models
- Increased competition in the credit technology space
- Longer sales cycles for new licenses
The stable professional services revenue (
The slight increase in processing and maintenance revenue is a positive sign, indicating that CoreCard's existing customers continue to use and rely on their services. The growth in third-party revenue could be a strategic move to diversify income streams and reduce dependence on core offerings.
CEO Leland Strange's statement about onboarding new customers is encouraging, but the financial results don't yet reflect significant growth from these new relationships. Investors should watch for signs of these new customers contributing to revenue growth in future quarters.
Overall, CoreCard's Q2 results suggest a company in transition, facing challenges in a competitive market but also making strategic investments for future growth. The key question for investors is whether these investments will translate into improved financial performance in the coming quarters.
NORCROSS, Ga., Aug. 01, 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 June 30, 2024.
"Overall revenue of
Financial Highlights for the three months ended June 30, 2024
Total revenues in the three-month period ended June 30, 2024, was
In the following table, revenue is disaggregated by type of revenue for the three months ended June 30, 2024 and 2023:
| Three Months Ended | ||||||
| June 30, | ||||||
| (in thousands) | 2024 | 2023 | ||||
| License | $ | − | $ | 1,794 | ||
| Professional services | 6,973 | 7,354 | ||||
| Processing and maintenance | 5,694 | 5,689 | ||||
| Third party | 1,130 | 855 | ||||
| Total | $ | 13,797 | $ | 15,692 | ||
Income from operations was
Net income was
Earnings per diluted share was
Adjusted earnings per diluted share was
Adjusted EBITDA was
Investor Conference Call
The company is holding an investor conference call today, August 1, 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/register/corecard080124/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 June 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 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.
For further information,
email CoreCardIR@icrinc.com
CoreCard Corporation
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except share and per share amounts)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | |||||||||||||||
| Services | $ | 13,797 | $ | 13,898 | $ | 26,873 | $ | 28,654 | |||||||
| Products | − | 1,794 | − | 1,794 | |||||||||||
| Total net revenue | 13,797 | 15,692 | 26,873 | 30,448 | |||||||||||
| Cost of revenue | |||||||||||||||
| Services | 9,090 | 9,296 | 18,590 | 19,101 | |||||||||||
| Products | − | − | − | − | |||||||||||
| Total cost of revenue | 9,090 | 9,296 | 18,590 | 19,101 | |||||||||||
| Expenses | |||||||||||||||
| Marketing | 116 | 105 | 230 | 174 | |||||||||||
| General and administrative | 1,490 | 1,516 | 2,917 | 3,065 | |||||||||||
| Research and development | 1,952 | 2,092 | 3,460 | 3,605 | |||||||||||
| Income from operations | 1,149 | 2,683 | 1,676 | 4,503 | |||||||||||
| Investment income (loss) | (199 | ) | (391 | ) | (438 | ) | (686 | ) | |||||||
| Other income | 235 | 201 | 526 | 345 | |||||||||||
| Income before income taxes | 1,185 | 2,493 | 1,764 | 4,162 | |||||||||||
| Income taxes | 289 | 618 | 438 | 1,031 | |||||||||||
| Net income | $ | 896 | $ | 1,875 | $ | 1,326 | $ | 3,131 | |||||||
| Earnings per share: | |||||||||||||||
| Basic | $ | 0.11 | $ | 0.22 | $ | 0.16 | $ | 0.37 | |||||||
| Diluted | $ | 0.11 | $ | 0.22 | $ | 0.16 | $ | 0.37 | |||||||
| Basic weighted average common shares outstanding | 8,084,335 | 8,493,040 | 8,160,235 | 8,497,888 | |||||||||||
| Diluted weighted average common shares outstanding | 8,143,247 | 8,516,573 | 8,207,004 | 8,524,337 | |||||||||||
CoreCard Corporation
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
| As of | June 30, 2024 | December 31, 2023 | |||||
| ASSETS | (unaudited) | (audited) | |||||
| Current assets: | |||||||
| Cash | $ | 22,589 | $ | 26,918 | |||
| Marketable securities | 5,257 | 5,230 | |||||
| Accounts receivable, net | 7,097 | 7,536 | |||||
| Other current assets | 5,738 | 4,805 | |||||
| Total current assets | 40,681 | 44,489 | |||||
| Investments | 3,624 | 4,062 | |||||
| Property and equipment, at cost less accumulated depreciation | 11,841 | 11,319 | |||||
| Other long-term assets | 5,411 | 3,956 | |||||
| Total assets | $ | 61,557 | $ | 63,826 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 1,154 | $ | 1,557 | |||
| Deferred revenue, current portion | 1,572 | 2,310 | |||||
| Accrued payroll | 2,150 | 2,172 | |||||
| Accrued expenses | 991 | 971 | |||||
| Other current liabilities | 2,140 | 2,530 | |||||
| Total current liabilities | 8,007 | 9,540 | |||||
| Noncurrent liabilities: | |||||||
| Deferred revenue, net of current portion | 205 | 265 | |||||
| Long-term lease obligation | 2,183 | 1,121 | |||||
| Other long-term liabilities | 313 | 196 | |||||
| Total noncurrent liabilities | 2,701 | 1,582 | |||||
| Stockholders’ equity: | |||||||
| Common stock, | |||||||
| Issued shares – 9,026,940 and 9,016,140 at June 30, 2024 and December 31, 2023, respectively; | |||||||
| Outstanding shares – 8,024,518 and 8,295,408 at June 30, 2024 and December 31, 2023, respectively | 91 | 90 | |||||
| Additional paid-in capital | 17,205 | 16,621 | |||||
| Treasury stock, 1,002,422 and 720,732 shares at June 30, 2024 and December 31, 2023, respectively, at cost | (24,097 | ) | (20,359 | ) | |||
| Accumulated other comprehensive income | 4 | 32 | |||||
| Accumulated income | 57,646 | 56,320 | |||||
| Total stockholders’ equity | 50,849 | 52,704 | |||||
| Total liabilities and stockholders’ equity | $ | 61,557 | $ | 63,826 | |||
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 expense. 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 | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| GAAP net income | $ | 896 | $ | 1,875 | $ | 1,326 | $ | 3,131 | |||||||
| Share-based compensation | 425 | 150 | 585 | 150 | |||||||||||
| Income tax benefit | (106 | ) | (38 | ) | (146 | ) | (38 | ) | |||||||
| Adjusted net income | $ | 1,215 | $ | 1,987 | $ | 1,765 | $ | 3,243 | |||||||
| Adjusted EPS | $ | 0.15 | $ | 0.23 | $ | 0.22 | 0.38 | ||||||||
| Weighted-average shares | 8,143 | 8,517 | 8,207 | 8,524 | |||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| GAAP net income | $ | 896 | $ | 1,875 | $ | 1,326 | $ | 3,131 | |||||||
| Depreciation and amortization | 902 | 1,960 | 1,927 | 3,655 | |||||||||||
| Share-based compensation | 425 | 150 | 585 | 150 | |||||||||||
| Investment loss | 199 | 391 | 438 | 686 | |||||||||||
| Other income, net | (235 | ) | (201 | ) | (526 | ) | (345 | ) | |||||||
| Income tax expense | 289 | 618 | 438 | 1,031 | |||||||||||
| Adjusted EBITDA | $ | 2,476 | 4,793 | $ | 4,188 | $ | 8,308 | ||||||||
FAQ
What were CoreCard's Q2 2024 total revenues?
How did CoreCard's Q2 2024 earnings per diluted share compare to the previous year?
Why did CoreCard's revenue decrease in Q2 2024?
What was CoreCard's net income for Q2 2024?
How much was CoreCard's adjusted EBITDA for Q2 2024?
