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
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.