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Company Overview
CoreCard Corp is engaged in the business of providing technology solutions and processing services to the financial technology and services market. It designs, develops, and markets a comprehensive suite of software solutions to program managers, accounts receivable businesses, financial institutions, retailers, and processors to manage their credit and debit cards, prepaid cards, private label cards, fleet cards, buy now pay later programs, loyalty programs, and accounts receivable and loan transactions. The CoreCard software platform and modules include CoreENGINE, CoreISSUE, CoreFRAUD, CoreCOLLECT, CoreAPP, CoreMONEY, and CoreACQUIRE. Its customers are located in the U.S., European Union, and the Middle East, with key revenue derived from the U.S.
Performance Summary
CoreCard Corp (CCRD, Financial) reported total revenues of $13.8 million for the second quarter of 2024, surpassing the analyst estimate of $12.13 million. However, the company’s earnings per share (EPS) fell short of expectations, coming in at $0.11 compared to the estimated $0.15. This represents a decline from the $0.22 EPS reported in the same quarter last year.
Financial Highlights
For the three months ended June 30, 2024, CoreCard Corp (CCRD, Financial) reported:
| Revenue Type | Q2 2024 | Q2 2023 |
|---|---|---|
| License | $1,794,000 | $1,794,000 |
| Professional Services | $6,973,000 | $7,354,000 |
| Processing and Maintenance | $5,694,000 | $5,689,000 |
| Third Party | $1,130,000 | $855,000 |
| Total | $13,797,000 | $15,692,000 |
Income Statement and Balance Sheet Analysis
CoreCard Corp (CCRD, Financial) reported income from operations of $1.1 million for Q2 2024, down from $2.7 million in the same period last year. Net income for the quarter was $0.9 million, compared to $1.9 million in Q2 2023. Adjusted EBITDA was $2.5 million, a decrease from $4.8 million in the prior year quarter.
On the balance sheet, CoreCard Corp (CCRD, Financial) reported total assets of $61.6 million as of June 30, 2024, compared to $63.8 million as of December 31, 2023. The company’s cash position decreased to $22.6 million from $26.9 million at the end of 2023. Total liabilities stood at $10.7 million, down from $11.1 million at the end of 2023.
Commentary and Analysis
Overall revenue of $13.8 million in the second quarter was in-line with our expectations,” said Leland Strange, CEO of CoreCard. "We continue to see encouraging results from the ongoing investment in our platform and processing capabilities, and we continue to onboard new customers that value the features and functionality offered by the CoreCard platform. The lower revenue this quarter compared to last year was primarily driven by lower license revenue and lower processing revenue from Kabbage."
The decline in revenue and net income compared to the previous year highlights some challenges for CoreCard Corp (CCRD, Financial), particularly in maintaining its license and processing revenue streams. However, the company’s ability to exceed revenue estimates and maintain a positive net income indicates resilience and effective cost management.
Conclusion
CoreCard Corp (CCRD, Financial) has demonstrated a solid performance in Q2 2024, with revenue surpassing analyst estimates despite a year-over-year decline. The company’s ongoing investments in its platform and processing capabilities, along with new customer acquisitions, are positive indicators for future growth. However, the decline in net income and adjusted EBITDA suggests that the company needs to address its revenue challenges to sustain long-term profitability.
For more detailed information, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from CoreCard Corp for further details.
