• Total Revenue: $14.8 million, a 22% increase year over year.
• License Revenue: $1.4 million for the fourth quarter.
• Professional Services Revenue: $6.2 million for the fourth quarter.
• Processing and Maintenance Revenue: $6.1 million, grew 11% in the fourth quarter year over year.
• Third Party Revenue: $1.1 million for the fourth quarter.
• Income from Operations: $2.1 million for the fourth quarter, compared to $0.4 million in Q4 2023.
• Operating Margin: 14% for the fourth quarter, compared to 3% in Q4 2023.
• Earnings Per Diluted Share (EPS): $0.24 for the quarter, compared to $0.06 in Q4 2023.
• Adjusted Diluted EPS: $0.28 for the quarter, excluding stock-based compensation expense, compared to $0.06 in Q4 2023.
• Operating Cash Flows: $5.8 million generated in 2024.
• Share Repurchases: $7.6 million in 2024, including $2.2 million in Q4 2024.
• 2025 Revenue Guidance: Expected between $60 million and $64 million.
• 2025 EPS Guidance: Expected between $0.88 and $0.94.
• 2025 Revenue Growth Excluding Goldman: Expected 30% to 40%.
• Q1 2025 Revenue Guidance: Expected between $14.4 million and $15 million.
• Q1 2025 Professional Services Revenue Guidance: Expected between $6.8 million and $7.2 million.

• Warning! GuruFocus has detected 5 Warning Signs with CCRD.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• CoreCard Corp (NYSE:CCRD) reported a 22% year-over-year increase in total revenue for the fourth quarter, reaching $14.8 million.
• The company experienced a significant improvement in operating margin, rising to 14% in Q4 2024 from 3% in Q4 2023.
• CoreCard Corp (NYSE:CCRD) extended its managed services contract with Goldman Sachs through 2030, with a guaranteed higher monthly rate starting in 2025.
• The company continues to onboard new customers through partnerships with program managers like Deserve, Verva, and Cardless, indicating potential for future growth.
• CoreCard Corp (NYSE:CCRD) has a strong cash position, allowing for continued investment in its new platform and business growth initiatives.

Negative Points

• CoreCard Corp (NYSE:CCRD) does not expect any license revenue in 2025, which could impact overall revenue growth.
• The company's revenue growth excluding its largest customer, Goldman Sachs, is heavily reliant on new customer acquisitions, which may take time to scale.
• There is uncertainty regarding the future of the Goldman Sachs relationship, as Goldman may exit the issuing business, potentially affecting CoreCard's revenue.
• The company faces challenges in competing with legacy processors in the revolving credit space, which requires significant business knowledge and technology integration.
• CoreCard Corp (NYSE:CCRD) is exploring potential acquisition offers, which could lead to changes in company leadership and strategy, creating uncertainty for stakeholders.

Q & A Highlights

Q: Just want to confirm, there's no planned license fees expected in 2025, is that correct? A: That's right. We are primarily focusing on the processing business rather than licensing. If a new customer comes on board, it would mostly reflect in processing and maintenance revenue.

Q: Can you provide insights on the expected costs to run the business in 2025? A: We anticipate some cost increases in 2025, mainly due to cost of living adjustments for salaries and other operational costs. However, we don't expect a significant increase in operating expenses as we have the necessary personnel and equipment to support our growth.

Q: You mentioned having about 15 million cards on the platform. Can you clarify this? A: Yes, CoreCard has around 15 million revolving credit cards on its platform. This positions us ahead of other modern processors, which typically have fewer than half a million revolving credit cards.

Q: What is the status of the Goldman Sachs relationship and its impact on your business? A: Our contract with Goldman Sachs extends through 2030, with termination rights after 2026. While Goldman may exit the issuing business, we aim to maintain the processing relationship. However, the decision ultimately depends on the new bank that takes over the Apple program.

Q: Could you elaborate on the new platform, Corefinity, and its significance? A: Corefinity incorporates the complexity and features of our current platform using the latest cloud technologies. It includes time travel testing to expedite the addition of unique programs, enhancing our competitive edge in the revolving credit space.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.