CoreCard Corporation (CCRD) Bundle
A Brief History of CoreCard Corporation
CoreCard Corporation has established itself as a significant player in the FinTech industry, providing innovative payment processing and card management solutions. As of 2024, the company has continued to evolve and adapt in a competitive landscape.
Financial Performance Overview
For the three months ended September 30, 2024, CoreCard reported total net revenue of $15.7 million, a 17% increase compared to $13.4 million in the same period of 2023. For the nine months ended September 30, 2024, total net revenue was $42.6 million, reflecting a 3% decrease from $43.8 million in the prior year.
| Period | Net Revenue | Year-over-Year Change |
|---|---|---|
| Q3 2024 | $15.7 million | +17% |
| 9M 2024 | $42.6 million | -3% |
Revenue Breakdown
Revenue from services for Q3 2024 amounted to $14.3 million, up from $13.4 million in Q3 2023, marking a 7% increase. For the nine-month period, revenue from services was $41.2 million, a slight decrease from $42.1 million in the previous year.
| Revenue Type | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Services | $14.3 million | $13.4 million | $41.2 million | $42.1 million | Products | $1.4 million | $0 | $1.4 million | $1.8 million |
Net Income and Earnings Per Share
CoreCard reported a net income of $2.2 million for Q3 2024, compared to a net loss of $222,000 in Q3 2023. For the nine months ended September 30, 2024, the net income was $3.5 million, up from $2.9 million in the same period of the previous year. The basic earnings per share for Q3 2024 stood at $0.28, compared to a loss of $0.03 in Q3 2023.
| Period | Net Income | Earnings Per Share |
|---|---|---|
| Q3 2024 | $2.2 million | $0.28 |
| Q3 2023 | ($222,000) | ($0.03) |
| 9M 2024 | $3.5 million | $0.44 |
| 9M 2023 | $2.9 million | $0.34 |
Cash Flow and Liquidity
As of September 30, 2024, CoreCard's cash and cash equivalents totaled $22.5 million, down from $26.9 million at the end of 2023. The company generated $5.0 million in cash from operating activities during the nine months ended September 30, 2024, compared to $18.3 million for the same period in 2023.
| Cash Flow Category | 9M 2024 | 9M 2023 |
|---|---|---|
| Cash from Operations | $5.0 million | $18.3 million |
| Cash and Cash Equivalents | $22.5 million | $26.9 million |
Share Repurchase Program
In May 2022, the Board authorized a share repurchase program of $20 million. As of September 30, 2024, approximately $9.3 million remained authorized for future repurchases. The company repurchased shares worth $5.4 million during the nine months ended September 30, 2024.
| Repurchase Program | Authorized Amount Remaining | Repurchased Amount (9M 2024) |
|---|---|---|
| Share Repurchase Program | $9.3 million | $5.4 million |
Market Position and Customer Base
CoreCard's largest client, Goldman Sachs Group, Inc., represented 62% of the total revenue for the nine months ended September 30, 2024. This significant concentration presents both opportunities and risks for the company.
| Customer | Percentage of Revenue (9M 2024) |
|---|---|
| Goldman Sachs Group, Inc. | 62% |
The company’s focus on expanding its service offerings and enhancing its processing capabilities positions it for future growth in the dynamic FinTech landscape.
A Who Owns CoreCard Corporation (CCRD)
Ownership Structure
As of 2024, CoreCard Corporation (CCRD) has a total of 9,026,940 authorized shares, with 7,901,148 shares outstanding as of September 30, 2024. The company has engaged in stock repurchase programs, with approximately $9.3 million authorized for future repurchases as of September 30, 2024.
Major Shareholders
CoreCard's ownership comprises institutional investors, individual shareholders, and insider ownership. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership (%) | Shares Owned |
|---|---|---|
| Goldman Sachs Group, Inc. | 62% | 4,898,000 |
| BlackRock, Inc. | 5% | 395,000 |
| Vanguard Group, Inc. | 4% | 316,000 |
| Insider (Executives and Directors) | 10% | 790,000 |
| Public Float | 19% | 1,502,148 |
Insider Ownership
Insider ownership includes shares held by executives and directors, which account for approximately 10% of total shares. This indicates a significant alignment of interests between the management and shareholders.
Recent Stock Activity
In recent months, CoreCard has actively repurchased shares, with 123,370 shares bought back in September 2024 at an average price of $14.95 per share. This activity reflects the company's strategy to enhance shareholder value and manage its capital structure effectively.
Financial Performance Overview
CoreCard reported a net income of $2,196,000 for the quarter ending September 30, 2024, compared to a net loss of $222,000 for the same period in 2023. The company's revenue for the same period was $15,703,000, marking a significant increase from the previous year.
Market Position
CoreCard's primary customer, Goldman Sachs, represents a substantial portion of its revenue, accounting for 62% of total sales as of September 30, 2024. This heavy reliance on a single customer underscores both the potential for growth and the risks associated with customer concentration.
Conclusion on Ownership Dynamics
Overall, the ownership structure of CoreCard Corporation reflects a blend of institutional investment, insider commitment, and a strong focus on shareholder returns through active repurchase strategies. The significant ownership by Goldman Sachs not only highlights a vital customer relationship but also positions CoreCard strategically within the financial technology sector.
CoreCard Corporation (CCRD) Mission Statement
Company Overview
CoreCard Corporation (CCRD) specializes in providing software solutions for the financial services industry, particularly focusing on transaction processing and card management systems. The company aims to empower clients with innovative technology that enhances their operational efficiency and customer engagement.
Mission Statement
CoreCard's mission is to deliver comprehensive payment solutions that enable financial institutions and businesses to thrive in a competitive marketplace. The company is committed to innovation, customer service, and operational excellence.
Financial Performance Overview
As of September 30, 2024, CoreCard reported total revenue of $15,703,000 for the quarter, marking a 17% increase from the previous year. For the nine-month period ending September 30, 2024, total revenue was $42,576,000, a slight decrease of 3% compared to the same period in 2023.
| Period | Revenue (in thousands) | Net Income (in thousands) | Earnings per Share (EPS) |
|---|---|---|---|
| Q3 2024 | $15,703 | $2,196 | $0.28 |
| Q3 2023 | $13,399 | ($222) | ($0.03) |
| 9M 2024 | $42,576 | $3,522 | $0.44 |
| 9M 2023 | $43,847 | $2,909 | $0.34 |
Key Financial Metrics
CoreCard's financial health is further illustrated by key metrics from its recent financial statements:
- Gross Margin: The gross margin for Q3 2024 was approximately 43%, compared to 31% for Q3 2023.
- Operating Expenses: Operating expenses were reported at $1,339,000 for Q3 2024, a 16% increase year-over-year.
- Cash Position: As of September 30, 2024, CoreCard had cash and cash equivalents of $22,498,000, down from $26,918,000 at the end of 2023.
Customer Base and Revenue Concentration
CoreCard's revenue is significantly influenced by its customer contracts. Notably, Goldman Sachs Group, Inc. accounted for 62% of consolidated revenues for the nine-month period ending September 30, 2024.
| Customer | Revenue Contribution (%) | Period |
|---|---|---|
| Goldman Sachs Group, Inc. | 62% | 9M 2024 |
| Customer A | 64% | Q3 2024 |
| Customer A | 62% | 9M 2023 |
Stock Performance and Repurchase Program
CoreCard has implemented a stock repurchase program, with approximately $9.3 million remaining as of September 30, 2024. During the nine months ended September 30, 2024, the company repurchased shares totaling $5.4 million.
Recent Developments and Future Outlook
CoreCard continues to invest in technology and infrastructure to support its growth strategy in the FinTech space. The company plans to leverage its strong cash position to expand operations and explore potential acquisitions.
Conclusion
CoreCard Corporation's mission to provide innovative payment solutions is supported by its strong financial performance and strategic focus on customer service and operational excellence.
How CoreCard Corporation (CCRD) Works
Overview of CoreCard Corporation
CoreCard Corporation (CCRD) operates primarily in the financial technology sector, providing software solutions for card processing and related services. The company focuses on delivering customizable solutions to financial institutions and other businesses that require card processing capabilities.
Financial Performance
As of September 30, 2024, CoreCard reported a total revenue of $15,703,000 for the three-month period ended September 30, 2024, representing a 17% increase compared to the same period in 2023. For the nine-month period ended September 30, 2024, total revenue was $42,576,000, showing a decrease of 3% compared to the previous year.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $15,703,000 | $13,399,000 | $42,576,000 | $43,847,000 |
| Net Income | $2,196,000 | ($222,000) | $3,522,000 | $2,909,000 |
| Earnings per Share (Basic) | $0.28 | ($0.03) | $0.44 | $0.34 |
| Operating Income | $2,785,000 | $413,000 | $4,462,000 | $4,916,000 |
Revenue Breakdown
CoreCard's revenue is derived from various services, with the following breakdown for the three months ended September 30, 2024:
| Revenue Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Services | $14,283,000 | $13,399,000 |
| Products | $1,420,000 | $0 |
Cost Structure
The total cost of revenue for the three-month period ended September 30, 2024, was $8,999,000, which reflects a decrease from $9,279,000 in the third quarter of 2023. The decrease in cost of revenue as a percentage of total revenue for this period was primarily due to higher license revenue.
Operating Expenses
Operating expenses for the three months ended September 30, 2024, were $12,918,000, compared to $12,057,000 in the same period for 2023. The increase was driven by higher general and administrative expenses.
| Operating Expenses | Q3 2024 | Q3 2023 |
|---|---|---|
| Marketing | $79,000 | $63,000 |
| General and Administrative | $1,339,000 | $1,155,000 |
| Development | $2,501,000 | $2,489,000 |
Balance Sheet Highlights
As of September 30, 2024, CoreCard's total assets were $62,808,000, down from $63,826,000 at the end of 2023. Current assets totaled $41,851,000, which includes cash and cash equivalents of $22,498,000.
| Balance Sheet Item | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $62,808,000 | $63,826,000 |
| Current Assets | $41,851,000 | $44,489,000 |
| Cash and Cash Equivalents | $22,498,000 | $26,918,000 |
| Total Liabilities | $11,121,000 | $11,122,000 |
Cash Flow Analysis
For the nine months ended September 30, 2024, CoreCard generated $5,039,000 in cash from operating activities, a decrease from $18,252,000 in the same period of 2023. Cash used in investing activities totaled $3,982,000, while financing activities resulted in cash outflows of $5,412,000.
| Cash Flow Activity | 9M 2024 | 9M 2023 |
|---|---|---|
| Cash Provided by Operating Activities | $5,039,000 | $18,252,000 |
| Cash Used for Investing Activities | ($3,982,000) | ($5,477,000) |
| Cash Used for Financing Activities | ($5,412,000) | ($1,528,000) |
Customer Concentration
CoreCard's revenue is significantly influenced by key customers. As of September 30, 2024, the largest customer accounted for 64% of the company's total revenue for the three-month period ended September 30, 2024.
Future Outlook
The company continues to invest in its infrastructure to support growth, particularly in its processing business, while navigating challenges such as customer transitions and market conditions that could impact future revenues.
How CoreCard Corporation (CCRD) Makes Money
Revenue Streams
CoreCard Corporation generates revenue through various streams primarily focused on technology solutions and processing services within the FinTech industry. The main revenue components include:
- Software license fees
- Professional services
- Transaction processing services
- Maintenance and support services
Financial Performance Overview
For the three months ended September 30, 2024, CoreCard reported total revenue of $15,703,000, a 17% increase compared to the prior year. Year-to-date revenue for the nine months ended September 30, 2024, was $42,576,000, reflecting a slight decrease of 3% year-over-year.
| Revenue Type | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Software License | $1,420 | $0 | $1,420 | $1,794 |
| Professional Services | $7,006 | $6,432 | $19,805 | $22,127 |
| Processing and Maintenance | $6,067 | $5,814 | $17,912 | $16,933 |
| Third Party | $1,210 | $1,153 | $3,439 | $2,993 |
| Total Revenue | $15,703 | $13,399 | $42,576 | $43,847 |
Cost of Revenue
The total cost of revenue for the three months ended September 30, 2024, was $8,999,000, yielding a gross margin of approximately 43%. This compares to a cost of revenue of $9,279,000 for the same period in 2023.
Operating Expenses
Operating expenses for CoreCard increased by 6% for the three-month period ended September 30, 2024, attributed mainly to higher general and administrative costs, which rose by 16% compared to the prior year.
| Expense Category | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Marketing | $79 | $63 |
| General and Administrative | $1,339 | $1,155 |
| Development | $2,501 | $2,489 |
| Total Operating Expenses | $3,919 | $3,707 |
Net Income
CoreCard reported a net income of $2,196,000 for the three months ended September 30, 2024, compared to a net loss of ($222,000) in the same period of 2023. Year-to-date net income for the nine months ended September 30, 2024, was $3,522,000.
Customer Concentration
CoreCard’s revenue is significantly influenced by key customers. For the nine months ended September 30, 2024, one customer accounted for 62% of total revenues.
Investment Income and Expenses
CoreCard recorded an investment loss of $90,000 for the three months ended September 30, 2024, compared to a loss of $1,015,000 in the prior year. This indicates a significant improvement in investment performance.
Liquidity Position
As of September 30, 2024, CoreCard had cash and cash equivalents of $22,498,000, down from $26,918,000 at the end of 2023. The decrease was attributed to cash used in operations and investments.
| Cash Flow Summary | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Cash Provided by Operating Activities | $5,039 | $18,252 |
| Cash Used for Investing Activities | ($3,982) | ($5,477) |
| Cash Used for Financing Activities | ($5,412) | ($1,528) |
| Net Cash Flow | ($4,355) | $11,247 |
Future Outlook
CoreCard anticipates growth in its processing services as its customer base expands. The company remains focused on enhancing its infrastructure to accommodate this growth, although it acknowledges potential delays in new customer implementations due to external factors.
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Article updated on 8 Nov 2024
Resources:
- CoreCard Corporation (CCRD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CoreCard Corporation (CCRD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View CoreCard Corporation (CCRD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.