Jack Henry & Associates Announces Fourth Quarter 2024 Deconversion Revenue Results

Rhea-AI Summary

Jack Henry & Associates (Nasdaq: JKHY) reported its fourth quarter 2024 deconversion revenue results. The company announced $6.7 million in deconversion revenue for the fiscal fourth quarter ended June 30, 2024, and $16.6 million for the full fiscal year 2024. Deconversion revenue primarily occurs when a Jack Henry customer is acquired by another financial institution, leading to contract termination. The company excludes this revenue from non-GAAP reports as it doesn't represent ongoing business operations. For updated guidance on deconversion revenue estimates, investors are directed to Jack Henry's August 3, 2023 Form 8-K filing with the SEC.

Positive

• Deconversion revenue of $6.7 million for Q4 2024
• Full fiscal year 2024 deconversion revenue of $16.6 million

Negative

• Deconversion revenue is excluded from non-GAAP reports as it doesn't represent ongoing business operations
• Deconversion revenue is driven by factors outside Jack Henry's control

MONETT, Mo., Aug. 12, 2024 /PRNewswire/ -- Jack Henry & Associates, Inc.^® (Nasdaq: JKHY) announced today that deconversion revenue for the fiscal fourth quarter, ended June 30, 2024, was $6.7 million. Deconversion revenue for the full fiscal year ended June 30, 2024, was $16.6 million. For more information about how guidance will be further updated for deconversion revenue estimates, please see Jack Henry's Current Report on Form 8-K filed with the Securities and Exchange Commission on August 3, 2023.

The majority of deconversion revenue is generated when one of Jack Henry's customers agrees to be acquired by another financial institution, resulting in the termination of the customer's contract with Jack Henry. In these circumstances, Jack Henry's recognition of deconversion revenue is driven by factors outside Jack Henry's control, and this revenue does not represent the true operations of Jack Henry's ongoing business of providing services to customers. As a result, Jack Henry excludes deconversion revenue from non-GAAP revenue reported in its quarterly and annual earnings releases.

Statements made in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Because forward-looking statements relate to the future, they are subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to, those discussed in Jack Henry's Securities and Exchange Commission filings, including Jack Henry's most recent reports on Form 10-K and Form 10-Q, particularly under the heading Risk Factors. Any forward-looking statement made in this current report speaks only as of the date of the current report, and Jack Henry's expressly disclaims any obligation to publicly update or revise any forward-looking statement, whether because of new information, future events or otherwise.

About Jack Henry & Associates, Inc.^®
Jack Henry™ (Nasdaq: JKHY) is a well-rounded financial technology company that strengthens connections between financial institutions and the people and businesses they serve. We are an S&P 500 company that prioritizes openness, collaboration, and user centricity – offering banks and credit unions a vibrant ecosystem of internally developed modern capabilities as well as the ability to integrate with leading fintechs. For more than 48 years, Jack Henry has provided technology solutions to enable clients to innovate faster, strategically differentiate, and successfully compete while serving the evolving needs of their accountholders. We empower approximately 7,500 clients with people-inspired innovation, personal service, and insight-driven solutions that help reduce the barriers to financial health. Additional information is available at www.jackhenry.com.   

 

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SOURCE Jack Henry & Associates, Inc.

FAQ

What was Jack Henry & Associates' (JKHY) deconversion revenue for Q4 2024?

Jack Henry & Associates reported deconversion revenue of $6.7 million for the fiscal fourth quarter of 2024, ended June 30, 2024.

How much deconversion revenue did JKHY generate for the full fiscal year 2024?

Jack Henry & Associates generated $16.6 million in deconversion revenue for the full fiscal year ended June 30, 2024.

Why does Jack Henry exclude deconversion revenue from non-GAAP reports?

Jack Henry excludes deconversion revenue from non-GAAP reports because it doesn't represent the true operations of the company's ongoing business of providing services to customers.

What typically causes deconversion revenue for JKHY?

Deconversion revenue is primarily generated when a Jack Henry customer is acquired by another financial institution, resulting in the termination of the customer's contract with Jack Henry.