CoreCard Corp (CCRD) 2022 Q4 法說會逐字稿

Greetings, and welcome to the CoreCard Fourth Quarter 2022 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎來到 CoreCard 2022 年第四季度收益電話會議。 （操作員說明）提醒一下，正在錄製此會議。

It is now my pleasure to introduce your host, Matt White, Chief Financial Officer. Thank you, sir. You may begin.

現在我很高興向您介紹主持人，首席財務官 Matt White。謝謝你，先生。你可以開始了。

Thank you. Good morning, everyone. With me on the call today is Leland Strange, Chairman and CEO of CoreCard Corporation. He will add some additional comments and answer questions at the conclusion of my prepared remarks.

謝謝。大家，早安。今天與我通話的是 CoreCard Corporation 的董事長兼首席執行官 Leland Strange。他將在我準備好的發言結束時添加一些額外的評論並回答問題。

Before I start, I'd like to remind everyone that during the call, we'll be making certain forward-looking statements to help you understand CoreCard Corporation and its business environment. These statements involve a number of risk factors, uncertainties and other factors that could cause actual results to differ materially from our expectations. Factors that may affect future operations are included in our filings with the SEC, including our 2021 Form 10-K and subsequent filings. We'll also discuss certain non-GAAP financial measures, including adjusted diluted EPS, which is adjusted for certain items that affect the comparability of our underlying operational performance. These non-GAAP measures are detailed in reconciliation tables included with our earnings release.

在開始之前，我想提醒大家，在電話會議期間，我們將做出某些前瞻性陳述，以幫助您了解 CoreCard Corporation 及其業務環境。這些陳述涉及許多風險因素、不確定性和其他可能導致實際結果與我們的預期存在重大差異的因素。可能影響未來運營的因素包含在我們向美國證券交易委員會提交的文件中，包括我們的 2021 年 10-K 表格和後續文件。我們還將討論某些非 GAAP 財務指標，包括調整後的攤薄每股收益，這是針對影響我們基本運營績效可比性的某些項目進行調整的。這些非 GAAP 措施在我們的收益發布中包含的調節表中有詳細說明。

As we noted in our press release this morning, our strong performance continued in the fourth quarter of 2022, and we are pleased with our full year revenue growth of 45%. In the fourth quarter, our professional services revenue remained solid. We saw continued growth in processing and maintenance revenue, and we recognized license revenue of $1.8 million.

正如我們在今天上午的新聞稿中指出的那樣，我們在 2022 年第四季度繼續保持強勁表現，我們對全年收入增長 45% 感到滿意。第四季度，我們的專業服務收入保持穩定。我們看到加工和維護收入持續增長，我們確認了 180 萬美元的許可收入。

The components of our revenue for the fourth quarter consisted of professional services revenue of $7.7 million, processing and maintenance revenue of $5.1 million, third-party revenue of $1.3 million, and as already highlighted, license revenue of $1.8 million. Total revenue for the fourth quarter was $15.8 million, a 21% increase year-over-year. Services revenue, defined as total revenue less license revenue, grew 25% in the quarter on a year-over-year basis with full year growth of 27%.

我們第四季度收入的組成部分包括 770 萬美元的專業服務收入、510 萬美元的處理和維護收入、130 萬美元的第三方收入，以及已經強調的 180 萬美元的許可收入。第四季度總收入為 1580 萬美元，同比增長 21%。服務收入（定義為總收入減去許可收入）在本季度同比增長 25%，全年增長 27%。

Within services, processing and maintenance grew 33% in the fourth quarter on a year-over-year basis with full year growth of 34%. License revenue for the quarter was flat year-over-year and saw full year growth of 174%. We expect this to be a record year for license revenue, and our focus going forward will be on continued growth in services revenue, with an emphasis on growing our processing business.

在服務中，加工和維護在第四季度同比增長 33%，全年增長 34%。本季度許可收入同比持平，全年增長 174%。我們預計今年將是許可證收入創紀錄的一年，我們未來的重點將放在服務收入的持續增長上，重點是發展我們的加工業務。

Revenue growth, excluding our largest customer, was 18% in the fourth quarter on a year-over-year basis. We continue to onboard new customers, both directly and through various partnerships we have with program managers, such as Deserve, Vervent and Cardless. We currently have multiple implementations and progress with new customers that we expect to go live in the coming months. We completed our connection with American Express in the fourth quarter of 2022 and expect that to open up new path to revenue growth in the coming years.

不包括我們最大的客戶，第四季度的收入同比增長 18%。我們繼續直接或通過與項目經理（例如 Deserve、Vervent 和 Cardless）建立的各種合作夥伴關係來吸引新客戶。我們目前與新客戶有多項實施和進展，我們預計將在未來幾個月內上線。我們在 2022 年第四季度完成了與美國運通的連接，預計這將為未來幾年的收入增長開闢新途徑。

Turning to some additional highlights on our income statement for the fourth quarter and full year for 2022, income from operations was $3 million for the fourth quarter of 2022 and 2021. Our operating margin for the fourth quarter of 2022 was 19% compared to an operating margin of 23% for the same period last year. The year-over-year decline in our operating margin was primarily driven by continued investments in our processing environment, our new office in Bogota and our hiring in India. Additionally, we're building a new platform that is resulting in higher development costs. These investments are a key component to future growth.

轉向我們 2022 年第四季度和全年損益表的一些額外亮點，2022 年第四季度和 2021 年的運營收入為 300 萬美元。與運營相比，我們 2022 年第四季度的運營利潤率為 19%去年同期的利潤率為 23%。我們的營業利潤率同比下降主要是由於對我們的加工環境、我們在波哥大的新辦事處以及我們在印度的招聘的持續投資。此外，我們正在構建一個導致更高開發成本的新平台。這些投資是未來增長的關鍵組成部分。

Our fiscal 2022 and 2021 tax rate was 27.1% and 23.2%, respectively. We expect our ongoing tax rate to be between 25% and 27%. Earnings per diluted share for the quarter was $0.12 compared to $0.30 for Q4 2021. Full year 2022 diluted EPS was $1.61 compared to $1.03 for the full year 2021. Adjusted diluted EPS for the quarter, excluding the impact of a write-down of one of our equity method investments, was $0.24 compared to $0.30 for Q4 2021. And full year 2022 adjusted diluted EPS was $1.74 compared to $1.03 for the full year 2021.

我們 2022 財年和 2021 財年的稅率分別為 27.1% 和 23.2%。我們預計我們的持續稅率將在 25% 至 27% 之間。本季度攤薄後每股收益為 0.12 美元，而 2021 年第四季度為 0.30 美元。2022 年全年攤薄後每股收益為 1.61 美元，而 2021 年全年為 1.03 美元。調整後的攤薄後每股收益不包括減記其中一項的影響我們的權益法投資為 0.24 美元，而 2021 年第四季度為 0.30 美元。2022 年全年調整後攤薄每股收益為 1.74 美元，而 2021 年全年為 1.03 美元。

We achieved significant growth in 2022 by onboarding a significant number of new customers, converting a large portfolio of millions of cards in the first quarter, adding over 300 people in India, Bogota and the U.S. and continuing to build out our processing infrastructure. We expect to stabilize our workforce in 2023 and continue growth in our services revenue, primarily with the people we have today. We believe we're at the point where existing customers can continue to grow, and we can continue to onboard new customers without significant increases in headcount or infrastructure costs.

我們在 2022 年實現了顯著增長，方法是吸引了大量新客戶，在第一季度轉換了數百萬張卡片的龐大產品組合，在印度、波哥大和美國增加了 300 多名員工，並繼續建設我們的處理基礎設施。我們希望在 2023 年穩定我們的員工隊伍，並繼續增加我們的服務收入，主要是我們今天擁有的員工。我們相信我們正處於現有客戶可以繼續增長的地步，並且我們可以在不顯著增加員工人數或基礎設施成本的情況下繼續吸引新客戶。

For 2023, we expect growth in services revenue of approximately 10% and license revenue between $3 million and $7 million. We expect growth from customers, excluding our largest customer, which is all services revenue, to be approximately 20%. We expect license revenue in future quarters in 2023, starting in the second quarter. However, it's difficult for us to predict the timing for reasons we've discussed previously.

到 2023 年，我們預計服務收入將增長約 10%，許可收入將在 300 萬至 700 萬美元之間。我們預計客戶的增長（不包括我們最大的客戶，即所有服務收入）約為 20%。從第二季度開始，我們預計 2023 年未來幾個季度的許可收入。但是，由於我們之前討論過的原因，我們很難預測時間。

Within services, we expect strong growth in processing and maintenance as our customers continue to grow and as we add new customers. Professional services revenue continued to be strong in the fourth quarter, and we anticipate similar professional services revenue in the first quarter of 2023, likely in the range of $7 million to $7.2 million. We're expecting some slowdown in the growth of professional services in 2023 due to the continued strong demand in 2022. However, we expect that revenue stream to remain at a high level.

在服務方面，隨著我們的客戶持續增長和新客戶的增加，我們預計加工和維護將實現強勁增長。第四季度專業服務收入繼續強勁，我們預計 2023 年第一季度專業服務收入類似，可能在 700 萬至 720 萬美元之間。由於 2022 年的需求持續強勁，我們預計 2023 年專業服務的增長將有所放緩。但是，我們預計收入流將保持在較高水平。

And with that, I'll turn it over to Leland.

有了這個，我會把它交給利蘭。

Okay. Thanks, Matt. Let me start by just reiterating or perhaps expanding on some of the points that Matt made in his remarks.

好的。謝謝，馬特。讓我首先重申或擴展 Matt 在其發言中提出的一些觀點。

First, yes, we had a very good year. It was punctuated by the large license revenue received in the first quarter of last year. I've repeated in several of these calls, starting a year ago, that the circumstances that resulted in net income was not repeatable and could, I guess, practically be considered, though not for accounting purposes, a onetime event. We were happy to get it as it represented a second largest program being processed on CoreCard software with millions of new cards.

首先，是的，我們度過了非常美好的一年。去年第一季度收到的大量許可收入打斷了這一點。從一年前開始，我在這些電話中多次重複，導致淨收入的情況是不可重複的，我想，儘管不是出於會計目的，但實際上可以被認為是一次性事件。我們很高興得到它，因為它代表了在 CoreCard 軟件上處理的第二大程序，有數百萬張新卡。

And also the revenue went to cash with very low cost of goods sold, but we knew it would make it comparable for this first quarter that we're in now look bad. And investors, who just followed the charts, are going to be misled. That's yet to unfold, but 2023 first quarter revenues will be down, while revenues from other than license revenues will be up. That last fact does not show up on the chart.

而且收入以非常低的商品銷售成本轉為現金，但我們知道這將使我們現在看起來很糟糕的第一季度具有可比性。只是跟隨圖表的投資者將會被誤導。這尚未展開，但 2023 年第一季度的收入將下降，而許可證收入以外的收入將上升。最後一個事實沒有顯示在圖表上。

Also, the onetime large revenue balanced our '22 revenue up to $29-plus million, marking a 45% increase for the preceding year. If I continue to talk about license revenue, we currently expect approximately -- I must say, plus or minus $5 million this year compared to the $16 million we received last year. That projected plus or minus $5 million is more than likely the norm for the next few years, unless we board a very large new license customer and/or maintain our current license pricing model. I'll talk more about that later. But that difference in license revenue is not going to be able to be made up in 2023. The difference is approximately $11 million.

此外，曾經的巨額收入使我們 22 年的收入達到 29 多萬美元，比前一年增長了 45%。如果我繼續談論許可收入，我們目前預計大約 - 我必須說，與我們去年收到的 1600 萬美元相比，今年增加或減少 500 萬美元。預計正負 500 萬美元很可能是未來幾年的常態，除非我們有一個非常大的新許可客戶和/或維持我們當前的許可定價模型。稍後我會詳細討論。但到 2023 年，許可證收入的差異將無法彌補。差異約為 1100 萬美元。

I've also previously said, and we'll reiterate here, that we believe the percent of our revenues coming from our largest customer peaked in 2022 and will be smaller each year going forward. It was approximately 75% last year, which was, again, highly skewed by the 2022 first quarter license revenue. While we expect the current programs for our largest customer, Goldman Sachs, to continue growing, we're not currently projecting any increase in other income, generally plus or minus, other than perhaps from inflation adjustments.

我之前也說過，我們將在這裡重申，我們相信來自最大客戶的收入占我們收入的百分比在 2022 年達到頂峰，並且以後每年都會減少。去年約為 75%，這再次受到 2022 年第一季度許可收入的嚴重影響。雖然我們預計目前為我們最大的客戶高盛 (Goldman Sachs) 提供的計劃將繼續增長，但我們目前預計其他收入不會有任何增長，通常是正負，除了可能來自通貨膨脹調整。

I think the press has reported their emphasis on controlling costs. So we would expect to help and keep our costs under control, meaning revenues to stay approximately flat. We, obviously, will try to make more things easier to run. It's just in a lot of ways to try to keep our costs down in order to come under the pressure that they're having to reduce costs.

我認為媒體已經報導了他們對控製成本的重視。因此，我們希望幫助並控制我們的成本，這意味著收入將保持大致持平。顯然，我們將努力讓更多的東西更容易運行。它只是在很多方面試圖降低我們的成本，以便承受他們不得不降低成本的壓力。

There's a lot of speculation about when or if they'll add new programs to the CoreCard platform. If I had any nonpublic information about future plans, I, of course, would and could not disclose it. I'm going to reiterate what I've said in the past, which I believe to still be true. "They will grow their programs. Despite the negatives you hear in the press, any real problems are set to the result of too much success rather than management screw-ups. The programs really have been well and successful. And for our first-time processor, that successful growth can pressure whatever systems you plan for and whatever you put in place. All of that can and will be fixed."

關於他們何時或是否會向 CoreCard 平台添加新程序有很多猜測。如果我有任何關於未來計劃的非公開信息，我當然會而且不能透露。我要重申我過去說過的話，我相信這仍然是正確的。 “他們會發展他們的項目。儘管你在媒體上聽到了負面消息，但任何真正的問題都是由於過於成功而不是管理失誤造成的。這些項目確實很好而且很成功。這是我們第一次處理器，成功的增長會給你計劃的任何系統和你放置的任何系統帶來壓力。所有這些都可以而且將會得到解決。”

There are a lot of super smart people there making certain that it gets faced and they're putting in place systems that will support a robust business. I think (inaudible) getting the press really does not align with the incredible success they've had with cards.

那裡有很多超級聰明的人確保它得到面對，並且他們正在建立能夠支持穩健業務的系統。我認為（聽不清）得到媒體的關注確實與他們在卡片方面取得的令人難以置信的成功不符。

Loan performance is going to eventually normalize, and the business will be a very good business, in my opinion. And it only makes sense that if they take on a program that's currently processed by someone else, they'll consider leaving it there, considering all of the questions that are being peppered with. Of course, we were preferring going the CoreCard platform, and we believe the economics we clearly support that. But we also would not be surprised if they should take the path of least resistance. Public companies sometimes have to do that.

貸款業績最終會正常化，在我看來，這項業務將是一項非常好的業務。只有當他們接受一個目前由其他人處理的程序時，他們才會考慮把它留在那裡，考慮到所有的問題，這才有意義。當然，我們更喜歡使用 CoreCard 平台，而且我們相信我們明確支持的經濟學。但如果他們選擇阻力最小的道路，我們也不會感到驚訝。上市公司有時不得不這樣做。

So I guess summing up, the large customer concentration topic: one, the concentration is coming down; two, at this time, we know we will receive lower license revenue and believe other revenues will not vary greatly from 2022; and three, we simply don't know if any new programs will be added in 2023, but do believe it will make sense to continue growing programs over the CoreCard platform in future years.

所以我想總結一下，大客戶集中度的話題：一，集中度在下降；第二，此時，我們知道我們將獲得較低的許可收入，並且相信其他收入與 2022 年相比不會有太大差異；第三，我們根本不知道 2023 年是否會增加任何新項目，但相信在未來幾年繼續通過 CoreCard 平台發展項目是有意義的。

So let's talk about the rest of the business. It's always kind of funny when you're sitting where I'm sitting, that if Goldman being such a big part of the business, we have shareholders that say, "Well, let's talk about the other parts of the business because you need to go to other parts."

因此，讓我們談談其餘的業務。當你坐在我的位置時總是有點好笑，如果高盛在業務中佔據如此重要的部分，我們的股東會說，“好吧，讓我們談談業務的其他部分，因為你需要去別的地方吧。”

I did want to talk about the other parts, (inaudible) want to talk about growing the Goldman revenue. But anyway, so you've heard about summary on Goldman. Let's talk about the rest of business. Non-Goldman revenues grew approximately 28% in 2023, when we exclude Wirecard, which didn't bankrupt us out. We expect that to continue growing at approximately that pace, although perhaps a little slower in 2023.

我確實想談談其他部分，（聽不清）想談談增加高盛的收入。但無論如何，你聽說過關於高盛的總結。讓我們談談剩下的事情。 2023 年非高盛收入增長了約 28%，當時我們排除了 Wirecard，它並沒有讓我們破產。我們預計它會繼續以大約這個速度增長，儘管到 2023 年可能會慢一些。

If we look strictly at processing revenues, I expect to see growth of 20% to 30% for the year. We've said for some time that we're building for the future. Well, the future is 2023 and 2024. If we achieve our target on processing revenues this year, and I believe we will, I believe they'll be much higher in 2024, given the potential clients we're talking with.

如果我們嚴格看加工收入，我預計今年會增長 20% 到 30%。我們已經說過一段時間了，我們正在為未來而建設。好吧，未來是 2023 年和 2024 年。如果我們今年實現加工收入的目標，我相信我們會，考慮到我們正在與之交談的潛在客戶，我相信它們在 2024 年會更高。

And another, I guess, recurring theme that we hear at this point across the pipeline. Well, we don't use that term internally. I'll say we're satisfied with the current pipeline. Well, being honest, I'd like to see it larger.

我想，還有一個我們在整個流程中聽到的反復出現的主題。好吧，我們不在內部使用該術語。我會說我們對當前的管道感到滿意。好吧，老實說，我希望看到它更大。

Six months ago, we thought we'd be working with a larger client in this quarter, but that has not panned out. We were working with the larger client, and have spent a lot of time and they spend a lot of time. We're honestly not certain what the situation is, as there have been no public announcements about what they make, what they may have or what they're doing. They've actually gone silent, but it's possible they think they've found a [prettier girls]. Maybe I shouldn't say it that way, but sometimes makeup can fool you and we don't use makeup.

六個月前，我們認為我們將在本季度與一個更大的客戶合作，但這並沒有成功。我們與更大的客戶合作，花了很多時間，他們也花了很多時間。老實說，我們不確定情況如何，因為還沒有關於他們製造什麼、可能擁有什麼或正在做什麼的公開聲明。他們實際上已經沉默了，但他們可能認為他們找到了[更漂亮的女孩]。也許我不應該那樣說，但有時化妝會騙你，我們不化妝。

Maybe they just decided to do nothing. I should know better or more, I think, in the next 60 days. We're in various levels of discussions with a few other large potential opportunities. Some could be resolved by the third quarter, and some will fall into next year, while I think contract completed this year.

也許他們只是決定什麼都不做。我想，在接下來的 60 天內，我應該知道得更多或更多。我們正在與其他一些巨大的潛在機會進行不同層次的討論。有的三季度可以解決，有的要到明年才能解決，我覺得合同今年就完成了。

We're still in the mode of underpromising and overdelivering. So we'll finally only be going 1 or 2 this year. And I'm talking, of course, about large situations, where there's an existing portfolio involved. And those are the only kind that you'll call large even though a lot of smaller ones could be very large.

我們仍然處於承諾不足和交付過多的模式。所以我們今年最終只會進行 1 或 2 次。當然，我說的是涉及現有投資組合的大情況。這些是唯一一種你會稱之為大的，即使許多較小的可能非常大。

We've got numerous smaller portfolios. They all hope to grow to large numbers. They're live now and a lot coming live over the next several months. I take a very conservative view on their Excel spreadsheet projection. So when I give you our process and growth expectations for 2023, I don't include what might happen with these opportunities.

我們有許多較小的投資組合。他們都希望增長到大量。它們現在已經上線，並且在接下來的幾個月裡還會有很多上線。我對他們的 Excel 電子表格投影持非常保守的看法。因此，當我向您提供我們對 2023 年的流程和增長預期時，我沒有包括這些機會可能發生的情況。

The competitive landscape really hasn't changed much in the last year. We still feel and are regularly told by current prospective -- by current and prospective customers that CoreCard is recognized as the gold standard for modern card issuing.

去年的競爭格局確實沒有太大變化。我們仍然覺得併且經常被當前的潛在客戶告知 - 當前和潛在客戶認為 CoreCard 被公認為現代發卡的黃金標準。

There are others that are good enough for some programs. I can remember back in the earlier days of Intelligence Systems, we were built in the hardware business with personal computer enhancements as it was then called, and also the software business as we built Peachtree Software.

還有其他一些對於某些程序來說已經足夠好了。我記得在 Intelligence Systems 的早期，我們是在硬件業務中建立的，當時它被稱為個人計算機增強功能，還有我們建立 Peachtree Software 的軟件業務。

I can remember vividly conversations and debates with engineers and project managers as to when to release our product. The debate always revolved around, does it work? Is it finished? Is it fool proof? Does it have everything we want? Or is it good enough?

我清楚地記得與工程師和項目經理就何時發布我們的產品進行的對話和辯論。爭論總是圍繞著，它行得通嗎？完成了嗎？它是萬無一失的嗎？它有我們想要的一切嗎？還是足夠好？

There were many times when we had to say, "Stop. It's good enough and release the product." We never did that with accounting software because it simply had to be right. As far as [issuing] software, CoreCard never says it is good enough. Of course, even in the desire for perfection, we sometimes don't get it perfect, but we never settle for good enough.

有很多次我們不得不說，“停下來。已經足夠好了，可以發布產品了。”我們從來沒有用會計軟件這樣做過，因為它必須是正確的。至於 [發行] 軟件，CoreCard 從來沒有說它足夠好。當然，即使在追求完美的過程中，我們有時也無法做到完美，但我們永遠不會安於現狀。

In reality, we work and report to the regulators of the firms who are our customers, and regulators don't want good enough. I would say their competitors look so for good enough, either consciously or because they did not know better. CoreCard settles are reconciled to the penny each night, of course, for some exceptions. Many others accept large expense accounts in order to balance. They can offer rock bottom pricing, that typically correlates with settlement issues and poor customer service.

實際上，我們工作並向作為我們客戶的公司的監管機構報告，而監管機構並不想要足夠好。我會說他們的競爭對手看起來足夠好，要么是有意識地，要么是因為他們不知道更好。 CoreCard 的結算每晚都與一分錢對賬，當然，也有一些例外。許多其他人接受大筆費用賬戶以保持平衡。他們可以提供最低價，這通常與結算問題和糟糕的客戶服務相關。

On another note, one of our larger competitors, Marqeta, recently purchased a company called Power for around $250 million. Power has, I understand, about 30 employees and provides front-end program management for card issuing programs. It's an interesting fact that Power is actually a customer of CoreCard and has been working on a new card program with us over the past, I guess, more than a year, but I assume we'll not see much more out of the day.

另一方面，我們較大的競爭對手之一 Marqeta 最近以大約 2.5 億美元的價格收購了一家名為 Power 的公司。據我了解，Power 大約有 30 名員工，為發卡程序提供前端程序管理。一個有趣的事實是，Power 實際上是 CoreCard 的客戶，並且過去一直與我們合作開發一個新的卡計劃，我猜，超過一年，但我認為我們不會看到更多。

So they paid as much as -- almost as much as the current market capitalization of CoreCard for a front-end program management capability. A partner of ours deserve as similar, or in my opinion, better front-end functionality. And we have several current and developing progress with their customers. We're going to be jointly proposing offerings with Deserve for some larger accounts.

因此，他們為前端程序管理功能支付的費用與 CoreCard 當前的市值一樣多——幾乎一樣多。我們的合作夥伴應該得到類似的，或者在我看來，更好的前端功能。我們與他們的客戶取得了多項當前和發展中的進展。我們將與 Deserve 聯合為一些大客戶提供產品。

Let me move to people resources. I believe we're finally reaching an equilibrium point where I'm comfortable taking on larger programs that require significant conversions. While we'll keep hiring, the pace will slow considerably now that we have caught up and are able to stabilize the organization.

讓我轉向人力資源。我相信我們終於達到了一個平衡點，在這個平衡點上，我很樂意接受需要大量轉換的大型項目。雖然我們將繼續招聘，但由於我們已經趕上並能夠穩定組織，因此步伐將大大放緩。

I did mention conversions. We're really very good and experienced at doing those, so that relieves some risks from programs that want to switch from legacy to a gold standard modern issuing system. Our newer international locations to Dubai and Colombia continue to be important in our future plans.

我確實提到了轉換。我們在做這些方面真的非常擅長並且經驗豐富，因此這減輕了想要從遺留系統切換到黃金標準現代發行系統的程序的一些風險。我們在迪拜和哥倫比亞的新國際地點在我們未來的計劃中仍然很重要。

I will say we're not yet able to really monetize them as to the level we expected in our original plans, but we're confident that it was a -- it's good decisions and they're really adding lot of value to the company.

我要說的是，我們還不能真正將它們貨幣化到我們最初計劃中預期的水平，但我們相信這是一個 - 這是一個很好的決定，它們確實為公司增加了很多價值.

Let me end my remarks with one word that's seldom heard in the fintech space today. That word is profits. CoreCard will continue in 2023 to be nicely profitable, provide a good return on average assets, average equity and investment. Those are key measures for long-term shareholders in building real value for an enterprise.

讓我用當今金融科技領域很少聽到的一個詞來結束我的發言。這個詞就是利潤。 CoreCard 將在 2023 年繼續實現可觀的盈利，提供良好的平均資產、平均股權和投資回報。這些是長期股東為企業創造真正價值的關鍵措施。

Operator, for that -- with that, I think I'll stop and see if we have any questions.

接線員，就此而言，我想我會停下來看看我們是否有任何問題。

(Operator Instructions)

（操作員說明）

Our first question comes from Anja Soderstrom with Sidoti.

我們的第一個問題來自 Anja Soderstrom 和 Sidoti。

Congrats on the nice progress you are making. And I appreciate the additional color you gave on the Goldman Sachs business. I'm just wondering if it is true that they are going to pass the efforts to bid for any more credit card programs. How could that affect you? I assume those customers that they're talking to would go to another player and are there maybe some that you are talking to as well? Or how do you think that might affect you?

恭喜你取得了不錯的進步。我很欣賞你對高盛業務的額外評價。我只是想知道他們是否真的會通過努力來競標更多的信用卡項目。這對你有什麼影響？我假設他們正在與之交談的那些客戶會去另一個玩家，並且您是否也正在與之交談？或者你認為這會對你產生什麼影響？

Well, again, we -- I have no information that I can disclose about what they may or may not do. I would only speculate that it would make sense in one way for them to have another supplier of card services if they bring on a large customer that's already using someone else.

好吧，再一次，我們——我沒有可以透露他們可能做什麼或不做什麼的信息。我只能推測，如果他們帶來已經在使用其他人的大客戶，那麼他們擁有另一家卡服務供應商在某種程度上是有意義的。

Now the argument, the other way, it would make more sense for them to get a more modern processor rather than a legacy processor and have it themselves. We don't have a part of that decision. So we're just there to support them in any way they want to be supported. And I'm fairly comfortable with -- I think I'm very comfortable with the projections we've made, and we're not projecting anything that we don't know -- that we don't feel it's likely to come to play. So I don't see any impact on us on in terms of our current 2023 projections with whatever they do.

現在的論點是，換句話說，對他們來說，獲得更現代的處理器而不是傳統處理器並自己擁有它更有意義。我們沒有參與該決定。所以我們只是在那里以他們希望得到支持的任何方式支持他們。而且我對 - 我認為我對我們所做的預測非常滿意，而且我們沒有預測任何我們不知道的事情 - 我們認為它不太可能實現玩。因此，我認為無論他們做什麼，都不會對我們目前的 2023 年預測產生任何影響。

Okay. And you previously said you expect -- that you could add probably 2 new large customers by the end of 2023. Do you still anticipate that?

好的。你之前說過你預計到 2023 年底你可能會增加 2 個新的大客戶。你仍然預計嗎？

Well, what I said, I have the capability of doing that. I'm -- gosh, I say it this way. We have enough folks we're talking to that would allow us to have 2 lined up before the end of this year. How much work we do this year versus next year, I don't know at this point. We're still early February. We're still early into conversations. But again, our projections probably don't have any significant large program in there. So that would all be upside positive.

好吧，我說的是，我有能力做到這一點。我是——天哪，我是這樣說的。我們有足夠多的人與我們交談，這將使我們能夠在今年年底之前安排好 2 個。今年與明年相比我們做了多少工作，我現在還不知道。我們還是二月初。我們還處於對話的早期階段。但同樣，我們的預測可能沒有任何重要的大型計劃。所以這一切都是積極的。

Okay. And in terms of new customers, do you think they are more prone towards -- you said you probably want -- you said you think they're going to be more prone to the processing rather than licensing, right? Or I don't know if I misheard that, but...

好的。就新客戶而言，你認為他們更傾向於——你說你可能想要——你說你認為他們更傾向於處理而不是許可，對嗎？或者我不知道我是否聽錯了，但是...

Yes. I think the -- from a market standpoint and just from a business standpoint, we're going to concentrate on building the processing business. We had good increase last year. I expect to have a 20% to 30% increase this year in processing, and it could be higher. I would expect to have that or better in the next year.

是的。我認為——從市場的角度和商業的角度來看，我們將專注於建立加工業務。去年我們有很好的增長。我預計今年的加工量會增加 20% 到 30%，而且可能會更高。我希望明年能有那個或更好的。

So from the license side, actually, I said I would talk more about it, I think, than I did. We're still trying to decide whether it makes sense for us to license some of the folks that will be competitor with us and how to do that license. So we're still reviewing that strategically to see how much we want to -- how willing will be to do another license. We're not certain right now.

所以從許可證方面來說，實際上，我說我會談論它，我想，比我做的要多。我們仍在努力決定向一些將與我們競爭的人授予許可對我們來說是否有意義，以及如何獲得許可。所以我們仍在戰略性地審查它，看看我們想要多少 - 多願意做另一個許可證。我們現在不確定。

Our next question comes from Hal Goetsch, Loop Capital Market.

我們的下一個問題來自 Loop Capital Market 的 Hal Goetsch。

I just wanted to get a big picture question. And you mentioned, Leland, going from legacy to a new gold standard modern platform. And could you share with us what your vision of -- what does legacy look like? And what is -- what's the modern platform look like? And how difficult is the move? Where is most of the market at? Is it mostly still on legacy? Is it moving to modern (inaudible)? Define both of those words.

我只是想問一個大問題。你提到過，Leland，從傳統平台到新的黃金標準現代平台。您能否與我們分享您的願景——遺產是什麼樣子的？什麼是 - 現代平台是什麼樣的？搬家有多難？大部分市場在哪裡？它主要還是在遺留問題上嗎？它正在轉向現代（聽不清）嗎？定義這兩個詞。

Well, it's definitely on legacy. By a huge -- we're talking about credit cards now, not just (inaudible) is still everywhere. But in terms of credit cards, it's preponderance of legacy right now. And there's nothing wrong with that if you want to have a cookie cutter playing program.

好吧，這絕對是遺產。巨大的 - 我們現在談論的是信用卡，而不僅僅是（聽不清）仍然無處不在。但就信用卡而言，現在它是傳統的優勢。如果你想要一個千篇一律的播放程序，那也沒有錯。

They're solid. They work well. They can give you low pricing, and there's no reason to move. But there's a certain percentage. And I just would have to guess the percentage -- the percentage of problem insurers, they want to have more control. They want to have the ability to make moves, to make changes. It's a dream of new ways of doing things, and they can't do that on a legacy processor.

他們是堅實的。他們工作得很好。他們可以給你低價，而且沒有理由搬家。但是有一定的比例。而且我只需要猜測百分比 - 問題保險公司的百分比，他們希望擁有更多控制權。他們希望有能力採取行動，做出改變。這是一種新的做事方式的夢想，而他們無法在傳統處理器上做到這一點。

They have to have one of the modern platforms to do it, but it has to be a modern platform that also has a ledger, a system of record that can withstand the regulators, when they look at -- when they look and see these unique things that people want to do.

他們必須擁有現代平台之一才能做到這一點，但它必須是一個現代平台，它也有一個分類賬，一個可以承受監管機構的記錄系統，當他們看到 - 當他們看到這些獨特的東西時人們想做的事情。

So I can't give you numbers. I've typically say there's probably going to be 10% to 20% of the card issuers. They're going to want to really be on a modern platform, meaning, they want to be innovative.

所以我不能給你數字。我通常會說可能會有 10% 到 20% 的發卡機構。他們將真正想要在現代平台上，也就是說，他們想要創新。

Now I would say just as quickly, they're probably 50% of the card issuers who say they want to be innovative, but they really don't, I mean, they wouldn't be able to say, but they don't want to spend the money or take the time or really be there.

現在我要說的同樣快，他們可能是 50% 的發卡機構，他們說他們想要創新，但他們真的沒有，我的意思是，他們不能說，但他們沒有想花錢或花時間或真的在那裡。

So -- but whether it's 10%, 20% or even 5%, there's a huge market for folks that need more flexibility than they can get on legacy.

所以——但無論是 10%、20% 還是 5%，對於那些需要比他們在傳統上獲得更大靈活性的人來說，都有一個巨大的市場。

Yes, makes sense. Would you say that a new issuer as opposed to an established bank or credit issuer would more than likely if they were de novo want to go with a modern platform if it was a start-up -- it was a new endeavor? Would that be actually what you think?

是的，有道理。您是否會說，與老牌銀行或信貸發行人不同的新發行人如果是從頭開始的，則更有可能希望使用現代平台，如果它是一家初創企業——這是一項新的嘗試？這真的是你的想法嗎？

I'll say it the way Strange says. I could be crazy to go on legacy if you're a new issuer. But [let me] (inaudible) maybe back out. If you still said, "Gosh, all I want to do is exactly what Citibank does. Maybe it'd be fine. Maybe that gives you a 20% lower price than you do it. But yes, I mean your port is correct. Practically, anybody that comes to the market now is going to want to go on to a modern platform.

我會按照 Strange 所說的方式說。如果你是新發行人，我可能會瘋狂地繼承遺產。但是 [讓我]（聽不清）也許會退出。如果你仍然說，“天哪，我想做的正是花旗銀行所做的。也許這會很好。也許這會讓你的價格比你做的低 20%。但是，是的，我的意思是你的端口是正確的。實際上，現在進入市場的任何人都希望繼續使用現代平台。

(Operator Instructions)

（操作員說明）

It appears that there are no further questions at this time. I would now like to turn the floor back over to Leland Strange for closing comments.

看來此時沒有進一步的問題了。我現在想將發言權轉回給 Leland Strange 以發表結束評論。

All right. Thank you, everyone, for taking the time to listen to the call. I hope I answered most of your questions. We are pretty pleased with what we're doing. And as I said when I closed, we certainly understand the need to make a profit. We understand the need to get a good return on assets, equity, investment, and we continue to manage the company with those goals in mind.

好的。謝謝大家抽出時間來聽電話。我希望我回答了你的大部分問題。我們對我們正在做的事情感到非常滿意。正如我在關閉時所說的那樣，我們當然理解盈利的必要性。我們了解獲得良好資產、股權和投資回報的必要性，並且我們將繼續以這些目標為目標來管理公司。

So thank you very much.

非常感謝。

This concludes today's conference. Thank you for your participation. You may disconnect your lines at this time.

今天的會議到此結束。感謝您的參與。此時您可以斷開線路。