The following is a summary of the Jack Henry & Associates, Inc. (JKHY) Q4 2024 Earnings Call Transcript:
Financial Performance:
Fiscal 2024 recorded $2.2 billion revenue and $489.4 million operating income.
Full year GAAP and non-GAAP revenue grew by 7%.
Business Progress:
Achieved record sales bookings and signed 15 new core contracts with major asset financial institutions.
Hosted 73% of core clients in private cloud, an increase from 69% last year.
Opportunity:
Transition from private to public cloud offers increased efficiency and scalability.
Significant growth in digital payment solutions reflects changing payment trends.
Financial Performance:
Reported record revenue and operating income for fiscal 2024, with $2.2 billion in revenue and $489.4 million in operating income.
Q4 GAAP revenue increased 5% and non-GAAP revenue increased 6%. Full year growth was 7% on both a GAAP and non-GAAP basis.
Operating income increased 1% for the quarter and increased 5% on a non-GAAP basis for the year.
Fourth quarter deconversion revenue of approximately $7 million, down approximately $8 million, reflecting minimal financial institution consolidation.
Achieved strong quarterly results with a fully-diluted GAAP earnings per share of $1.38, up 3%.
Fiscal '24 fully diluted EPS was $5.23, up 4%.
Business Progress:
Set an all-time record for sales bookings for both the fourth quarter and the fiscal year.
Signed 15 new core contracts this fiscal year with financial institutions that have over $1 billion in assets.
Now host 73% of core clients in private cloud, up from 69% last year.
Introduced several new innovative solutions and executed a technology modernization strategy through One Jack Henry initiative.
Achieved significant growth in registered Banno users, up to 12.2 million from 3.2 million in 2020.
Signed new contracts for digital payment solutions, reaffirming the growth in demand for these services.
Continued leadership in the financial technology sector with new competitive core wins and increasing engagement in faster and more secure payment systems.
Jack Henry Connect annual client conference planned for October to further engage with prospects, clients, and partners.
Opportunities:
The progression from private cloud to public cloud hosting presents an opportunity for increased efficiency and scalability.
Potential for robust growth in digital payment solutions highlights an ongoing shift in payment processing trends.
The substantial increase in larger asset clients points to a strategic expansion in market reach.
Risks:
No explicit risks/opportunities detected.
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