CoreCard Corporation Reports Third Quarter 2024 Results

17% increase in Total Revenue Year-over-Year

NORCROSS, Ga., Oct. 31, 2024 (GLOBE NEWSWIRE) -- CoreCard Corporation [NYSE: CCRD], the leading provider of innovative credit technology solutions and processing services to the financial technology and services market, announced today its financial results for the quarter ended September 30, 2024.

"Overall revenue of $15.7 million in the third quarter, an increase of 17% compared to last year, exceeded our expectations, reflecting license revenue earlier than expected, continued growth in processing and maintenance revenue and higher professional services revenue. We continue to invest in our platform and processing capabilities, which are showing encouraging results. CoreCard provides a best-in-class credit platform that is extremely well positioned to capture the growing demand for next-generation card management platforms by large and complex modern card issuers," said Leland Strange, CEO of CoreCard Corporation.

"For the fourth quarter of 2024, we expect total revenue between $13.3 and $13.7 million and earnings per share between $0.07 and $0.09. For fiscal year 2025, we expect total revenue between $60 million and $64 million and earnings per share between $0.88 and $0.94. We expect full-year 2025 revenue growth, excluding our largest customer, to be 30-40%," said Matt White, CFO of CoreCard Corporation.

Financial Highlights for the three months ended September 30, 2024

Total revenues in the three-month period ended September 30, 2024, was $15.7 million compared to $13.4 million in the comparable period in 2023.

In the following table, revenue is disaggregated by type of revenue for the three months ended September 30, 2024 and 2023:

 
                                Three Months Ended 
                                  September 30, 
---------------------------  ------------------------ 
(in thousands)                   2024         2023 
---------------------------  ------------  ---------- 
License                       $     1,420  $      - 
Professional services               7,006     6,432 
Processing and maintenance          6,067     5,814 
Third party                         1,210     1,153 
---------------------------      --------   ------- 
Total                         $    15,703  $ 13,399 
===========================      ========   ======= 
 
 

Income from operations was $2.8 million for the third quarter compared to income from operations of $0.4 million in the comparable prior year quarter.

Net income (loss) was net income of $2.2 million for the third quarter compared to a net loss of $0.2 million in the comparable prior year quarter.

Earnings per diluted share was $0.27 for the third quarter compared to a loss per share of $0.03 in the comparable prior year quarter.

Adjusted earnings per diluted share was $0.30 for the third quarter compared to $0.09 in the comparable prior year quarter.

Adjusted EBITDA was $3.9 million for the third quarter compared to $1.9 million in the comparable prior year quarter.

Use of Non-GAAP Financial Measures

Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section of the tables titled "Information Regarding Non-GAAP Financial Measures".

Investor Conference Call

The company is holding an investor conference call today, October 31, 2024, at 11:00 A.M. Eastern Time. Interested investors are invited to attend the conference call by accessing the webcast at https://www.webcast-eqs.com/register/corecard103124/en or by dialing 1-877-407-0890. As part of the conference call CoreCard will be conducting a question-and-answer session where participants are invited to email their questions to questions@corecard.com prior to the call. A transcript of the call will be posted on the company's website at investors.corecard.com as soon as available after the call.

The company will file its Form 10-Q for the period ended September 30, 2024, with the Securities and Exchange Commission today. For additional information about reported results, investors will be able to access the Form 10-Q on the company's website at investors.corecard.com or on the SEC website, www.sec.gov.

About CoreCard Corporation

CoreCard Corporation $(CCRD)$ provides the gold standard card issuing platform built for the future of global transactions in an embedded digital world. Dedicated to continual technological innovation in the ever-evolving payments industry backed by decades of deep expertise in credit card offerings, CoreCard helps customers conceptualize, implement, and manage all aspects of their issuing card programs. Keenly focused on steady, sustainable growth, CoreCard has earned the trust of some of the largest companies and financial institutions in the world, providing truly real-time transactions via their proven, reliable platform operating on private on-premise and leading cloud technology infrastructure.

Forward-Looking Statements

The forward-looking statements in this press release are made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. The Company's actual results could differ materially from those indicated by the forward-looking statements because of various risks and uncertainties including those listed in Item 1A of the Company's Annual Report on Form 10-K and in the Company's other filings and reports with the Securities and Exchange Commission. All of the risks and uncertainties are beyond the ability of the Company to control, and in many cases, the Company cannot predict the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. When used in this press release, the words "believes," "plans," "expects," "will," "intends," "continue," "outlook," "progressing," and "anticipates" and similar expressions as they relate to the Company or its management are intended to identify forward-looking statements. Except as required by law, the Company is not obligated to publicly release any revisions to these forward-looking statements to reflect the events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

For further information,

email CoreCardIR@icrinc.com

 
 
                             CoreCard Corporation 
                     CONSOLIDATED STATEMENTS OF OPERATIONS 
              (unaudited, in thousands, except share and per share 
                                    amounts) 
 
                           Three Months Ended           Nine Months Ended 
                              September 30,                September 30, 
                           2024          2023          2024           2023 
---------------------  ------------  ------------  ------------  -------------- 
Revenue 
   Services             $   14,283    $   13,399    $   41,156    $   42,053 
   Products                  1,420             -         1,420         1,794 
---------------------  -----------   -----------   -----------   ----------- 
      Total net 
       revenue              15,703        13,399        42,576        43,847 
---------------------  -----------   -----------   -----------   ----------- 
Cost of revenue 
   Services                  8,999         9,279        27,588        28,380 
   Products                      -             -             -             - 
      Total cost of 
       revenue               8,999         9,279        27,588        28,380 
---------------------  -----------   -----------   -----------   ----------- 
Expenses 
      Marketing                 79            63           309           237 
      General and 
       administrative        1,339         1,155         4,256         4,220 
      Development            2,501         2,489         5,961         6,094 
---------------------  -----------   -----------   -----------   ----------- 
Income from 
 operations                  2,785           413         4,462         4,916 
Investment income 
 (loss)                        (90)       (1,015)         $(528.SI)$       (1,701) 
Other income (loss), 
 net                           233           308           758           653 
---------------------  -----------   -----------   -----------   ----------- 
Income (loss) before 
 income taxes                2,928          (294)        4,692         3,868 
Income tax expense 
 (benefit)                     732           (72)        1,170           959 
Net income (loss)       $    2,196    $     (222)   $    3,522    $    2,909 
=====================      =======       =======       =======       ======= 
Earnings (loss) per 
share: 
   Basic                $     0.28    $    (0.03)   $     0.44    $     0.34 
   Diluted              $     0.27    $    (0.03)   $     0.43    $     0.34 
---------------------      -------       -------       -------       ------- 
Basic weighted 
 average common 
 shares outstanding      7,957,571     8,460,473     8,092,681     8,485,416 
Diluted weighted 
 average common 
 shares outstanding      8,017,870     8,460,473     8,142,972     8,509,825 
=====================  ===========   ===========   ===========   =========== 
 
 
 
                            CoreCard Corporation 
                         CONSOLIDATED BALANCE SHEETS 
             (in thousands, except share and per share amounts) 
 
                                            September 30,     December 31, 
As of                                            2024             2023 
ASSETS                                       (unaudited)       (audited) 
-----------------------------------------  ---------------  ---------------- 
Current assets: 

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