The following is a summary of the CoreCard Corporation (CCRD) Q4 2023 Earnings Call Transcript:

Financial Performance:

• CoreCard reported Q4 revenue of $12.2 million, which is a 23% decrease year-over-year.

• Operating margin dropped from 19% (Q4 2022) to 3% in Q4 2023, due to investments in a new platform and lower license and professional services revenue.

• Earnings per diluted share were $0.06 for Q4, compared to $0.12 in Q4 2022. Full-year earnings were down from $1.61 in 2022 to $0.40 in 2023.

• With no license revenue for Q4 and none expected for H1 2024, the projected growth for services in 2024 is 11%.

• The company remains in a strong financial position with positive cash flow, significant operating cash flows ($16.8 million in 2023), a robust balance sheet and no debt.

Business Progress:

• CoreCard is lowering headcount in non-growing areas while increasing business development spending in 2024.

• The company is developing its next-generation software, Corefinity, which is already integrated into their core processing environment.

• To reduce customer concentration, CoreCard is onboarding new customers with several implementations in progress.

• The company has a long-term, recurring revenue agreement with Goldman Sachs, which will continue to provide stable revenue.

• They are planning an aggressive share buyback strategy, leveraging its excess cash and cash from operations in 2024.

• In addition to these initiatives, CoreCard also renewed two contracts effective July 1, 2023, extending the maintenance contract until June 30, 2026.

More details: CoreCard IR

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