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Jack Henry & Associates Announces First Quarter 2025 Deconversion Revenue Results

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Jack Henry & Associates (JKHY) reported deconversion revenue of $3.7 million for the fiscal first quarter ended September 30, 2024. The company maintains its full-year fiscal 2025 deconversion revenue guidance at $16 million. Deconversion revenue primarily occurs when Jack Henry's customers are acquired by other financial institutions, leading to contract termination. The company excludes this revenue from non-GAAP reporting as it doesn't reflect core business operations.

Jack Henry & Associates (JKHY) ha riportato un fatturato da deconversione di 3,7 milioni di dollari per il primo trimestre fiscale terminato il 30 settembre 2024. L'azienda mantiene le previsioni di fatturato da deconversione per l'intero anno fiscale 2025 a 16 milioni di dollari. Il fatturato da deconversione si verifica principalmente quando i clienti di Jack Henry vengono acquisiti da altre istituzioni finanziarie, portando alla cessazione dei contratti. L'azienda esclude questo fatturato dalla reportistica non-GAAP in quanto non riflette le operazioni principali dell'attività.

Jack Henry & Associates (JKHY) reportó ingresos por deconversión de 3,7 millones de dólares para el primer trimestre fiscal que terminó el 30 de septiembre de 2024. La compañía mantiene su guía de ingresos por deconversión para todo el año fiscal 2025 en 16 millones de dólares. Los ingresos por deconversión ocurren principalmente cuando los clientes de Jack Henry son adquiridos por otras instituciones financieras, lo que lleva a la terminación del contrato. La compañía excluye estos ingresos de los informes no GAAP, ya que no reflejan las operaciones principales del negocio.

잭 헨리 앤드 어소시에이츠(JKHY)는 2024년 9월 30일 종료된 회계 첫 분기에 대한 deconversion 수익이 370만 달러에 달했다고 보고했습니다. 이 회사는 2025 회계 연도 전체에 대한 deconversion 수익 전망을 1600만 달러로 유지합니다. deconversion 수익은 주로 잭 헨리의 고객이 다른 금융 기관에 인수되면서 계약이 종료될 때 발생합니다. 이 회사는 비 GAAP 보고에서 이 수익을 제외합니다. 왜냐하면 이를 통해 핵심 사업 운영을 반영하지 않기 때문입니다.

Jack Henry & Associates (JKHY) a annoncé des revenus de déconversion de 3,7 millions de dollars pour le premier trimestre fiscal clos le 30 septembre 2024. La société maintient ses prévisions de revenus de déconversion pour l'exercice 2025 à 16 millions de dollars. Les revenus de déconversion se produisent principalement lorsque les clients de Jack Henry sont acquis par d'autres institutions financières, entraînant la résiliation des contrats. L'entreprise exclut ces revenus des rapports non-GAAP car ils ne reflètent pas les opérations principales de l'entreprise.

Jack Henry & Associates (JKHY) meldete für das am 30. September 2024 endende erste Quartal des Geschäftsjahres Einnahmen aus der Deconversion in Höhe von 3,7 Millionen US-Dollar. Das Unternehmen hält an seiner Prognose für den gesamten Deconversion-Umsatz für das Geschäftsjahr 2025 von 16 Millionen US-Dollar fest. Die Deconversion-Umsätze entstehen hauptsächlich, wenn die Kunden von Jack Henry von anderen Finanzinstituten übernommen werden, was zur Vertragsbeendigung führt. Das Unternehmen schließt diese Einnahmen aus den Non-GAAP-Berichten aus, da sie nicht die Hauptgeschäftsaktivitäten widerspiegeln.

Positive
  • Maintains full-year fiscal 2025 deconversion revenue guidance at $16 million
  • Q1 2025 deconversion revenue of $3.7 million
Negative
  • Deconversion revenue represents lost customers due to acquisitions

Insights

The reported $3.7 million in Q1 FY2025 deconversion revenue and maintained full-year guidance of $16 million provides minimal insight into JKHY's core business performance. Deconversion revenues, which occur when customers terminate contracts due to acquisitions, are inherently unpredictable and excluded from non-GAAP metrics. This figure represents a small fraction of JKHY's overall revenue base and isn't a meaningful indicator of business health. The steady guidance suggests stability in expected M&A activity among their customer base, but investors should focus on core revenue metrics and contract wins for better business assessment.

MONETT, Mo., Oct. 28, 2024 /PRNewswire/ -- Jack Henry & Associates, Inc.® (Nasdaq: JKHY) announced today that deconversion revenue for the fiscal first quarter, ended September 30, 2024, was $3.7 million. Based on these results, deconversion revenue estimates remain at $16 million for full year fiscal 2025 guidance. 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's (JKHY) deconversion revenue for Q1 2025?

Jack Henry reported deconversion revenue of $3.7 million for the first quarter of fiscal 2025, ended September 30, 2024.

What is JKHY's deconversion revenue guidance for fiscal 2025?

Jack Henry maintains its deconversion revenue guidance at $16 million for full year fiscal 2025.

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

Jack Henry excludes deconversion revenue because it results from factors outside their control and doesn't represent their core business operations of providing services to customers.

Henry (Jack) & Associates

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72.48M
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Information Technology Services
Services-computer Integrated Systems Design
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United States of America
MONETT