Thu, Oct 31, 10:34 AM (63 days ago)
CoreCard Corporation (CCRD) reported its Q3 2024 results, showing a revenue increase of 17% year-over-year to $15,703,000, while nine-month revenue decreased by 3% to $42,576,000. Service revenue grew by 7% in Q3 but declined by 2% for the nine months, primarily due to fluctuations in professional services contracts, particularly from its largest customer, Goldman Sachs (62% of revenue). The company’s net income was $2,196,000 for Q3, contrasting with a loss of $222,000 in Q3 2023, supported by improved operational efficiency and increased processing revenues. Operating expenses rose by 6% in Q3 due to higher general and administrative costs. Cash flow from operations decreased to $5,039,000 from $18,252,000 in the prior year, impacted by lower accounts receivable and deferred revenue. CoreCard's cash balance stood at $22,498,000 as of September 30, 2024, with ongoing share repurchase authorization of $9.3 million remaining. Uncertainties include potential revenue impacts from Goldman’s transition of credit card business and the need for regulatory compliance in an evolving market.