CoreCard Corp (CCRD) 2025 Q1 法說會逐字稿

Greetings. Welcome to CoreCard's Q1 2025 earnings conference call. (Operator Instructions) Please note, this conference is being recorded.

問候。歡迎參加 CoreCard 2025 年第一季財報電話會議。（操作員指示）請注意，本次會議正在錄音。

I will now turn the conference over to our host, Matt White, CoreCard's Chief Financial Officer. Thank you, Mr. White, you may begin.

現在，我將會議交給我們的主持人、CoreCard 財務長 Matt White。謝謝您，懷特先生，您可以開始了。

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. Before I start, I'd like to remind everyone that during the call, we will be making certain forward-looking statements to help you understand CoreCard Corporation and its business environment.

謝謝。大家早安。今天與我一起參加電話會議的是 CoreCard Corporation 董事長兼執行長 Leland Strange。在我的演講結束時，他將補充一些評論並回答問題。在開始之前，我想提醒大家，在通話期間，我們將做出一些前瞻性的陳述，以幫助您了解 CoreCard Corporation 及其業務環境。

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 2024 Form 10-K and subsequent filings.

這些聲明涉及許多風險因素、不確定性和其他因素，可能導致實際結果與我們的預期有重大差異。可能影響未來營運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 2024 年 10-K 表格和後續文件。

We'll also discuss certain non-GAAP financial measures, including adjusted diluted EPS and adjusted EBITDA, 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 within our earnings release.

我們還將討論某些非 GAAP 財務指標，包括調整後的稀釋每股收益和調整後的 EBITDA，這些指標針對影響我們基本營運績效可比性的某些項目進行了調整。這些非公認會計準則指標在我們的收益報告的對帳表中有詳細說明。

As we noted in our press release, our first quarter results exceeded our expectations with higher-than-expected professional services revenue, primarily from our largest customer, Goldman Sachs. Our revenue growth, excluding Goldman, was in line with our expectations.

正如我們在新聞稿中指出的那樣，我們的第一季業績超出預期，專業服務收入高於預期，主要來自我們最大的客戶高盛。不包括高盛，我們的收入成長符合我們的預期。

Total revenue for the first quarter was $16.7 million, a 28% increase year over year, driven by higher professional services revenue, as I mentioned previously. The components of our revenue for the first quarter consisted of professional services revenue of $8.7 million, processing and maintenance revenue of $6.3 million and third-party revenue of $1.6 million. As expected, we did not have any license revenue for the quarter, not expect any license revenue for the year.

第一季總收入為 1,670 萬美元，年增 28%，正如我之前提到的，這得益於專業服務收入的增加。我們第一季的收入包括專業服務收入 870 萬美元、加工和維護收入 630 萬美元以及第三方收入 160 萬美元。正如預期的那樣，本季度我們沒有任何許可收入，預計全年也不會有任何許可收入。

The higher professional services from Goldman were a function of higher managed services rates from the contract amendment we signed last October and continued high levels of development professional services from Goldman. Processing and maintenance revenue grew 3% year over year.

高盛提供的專業服務價格上漲，源自於我們去年 10 月簽署的合約修訂中管理服務費率的提高，以及高盛持續的高水準開發專業服務。加工和維護收入較去年同期成長3%。

One of our customers was acquired a couple of years ago and subsequently terminated their contract, resulting in approximately $0.5 million of accelerated revenue in the first quarter of 2024. Excluding this onetime item and the impact of Q1 2024 legacy Kabbage revenues, processing and maintenance growth was 16%.

我們的一位客戶幾年前被收購，隨後終止了合同，導致 2024 年第一季加速收入約 50 萬美元。不包括這筆一次性項目和 2024 年第一季傳統 Kabbage 收入的影響，加工和維護成長率為 16%。

Revenue growth, excluding our largest customer, was 8% in the first quarter on a year over year basis. Revenue growth, excluding our largest customer and the impact from the legacy Kabbage business and the $0.5 million of accelerated revenue in the first quarter of 2024 that I previously mentioned, was 23% in the first quarter on a year over year basis and is expected to be 30% to 35% for the full year.

不包括我們最大的客戶，第一季的營收年增 8%。不包括我們最大的客戶和傳統 Kabbage 業務的影響以及我之前提到的 2024 年第一季 50 萬美元的加速收入，第一季的收入增長率為 23%，預計全年增長率為 30% 至 35%。

This is in line with our expectations for the first quarter as we expect revenue growth ex-Goldman to accelerate as we move through 2025 as existing customers increase the number of accounts on file and new customers go live.

這符合我們對第一季的預期，因為我們預計，隨著現有客戶增加帳戶數量以及新客戶上線，到 2025 年，除高盛外的收入成長將會加速。

We do have a potential headwind from the sale of one of our customers, Deserve, to Intuit. Deserve represented less than 3% of our total revenues in 2024 and we expect just over 2% for 2025 with a lot of that already recognized in the first quarter, for which payment was received in May 2025. We continue to onboard new customers, both directly and through various partnerships, we have with other program managers such as Vervent and Cardless. As in previous quarters, we currently have multiple implementations in progress and new customers we expect to go live in the coming months.

我們確實面臨著一個潛在的阻力，那就是將我們的一個客戶 Deserve 出售給 Intuit。2024 年，Deserve 收入占我們總收入的不到 3%，我們預計 2025 年這一比例將略高於 2%，其中很大一部分已在第一季確認，付款已於 2025 年 5 月收到。我們繼續透過直接方式或與 Vervent 和 Cardless 等其他專案經理建立的各種合作夥伴關係來吸引新客戶。與前幾季一樣，我們目前正在進行多個實施項目，預計新客戶將在未來幾個月內上線。

Turning to some additional highlights on our income statement for the first quarter of 2025. Income from operations was $2.8 million compared to $0.5 million for the same period last year. Our operating margin was 16.8% compared to an operating margin of 4% for the same period last year. The year-over-year increase in our operating margin was primarily driven by higher professional services revenue.

讓我們來看看 2025 年第一季損益表的一些其他亮點。營業收入為 280 萬美元，而去年同期為 50 萬美元。我們的營業利益率為 16.8%，而去年同期的營業利益率為 4%。我們的營業利益率年增率主要得益於專業服務收入的增加。

The income statement impact of our new platform build was $0.8 million in the first quarter of 2025 compared to $0.7 million for the prior year period. We have kept our headcount steady and expect to continue growing our revenues without significant increase in costs.

我們新平台的建置對2025年第一季的損益表影響為80萬美元，去年同期為70萬美元。我們保持了員工人數的穩定，預計在成本不大幅增加的情況下，收入將繼續增長。

Our Q1 2025 tax rate was 24% compared to 25.7% in Q1 2024. We expect our ongoing tax rate to be between 24% and 27%. Earnings per the diluted share for the quarter was $0.24 compared to $0.05 for Q1 2024. Adjusted diluted EPS for the quarter, excluding stock compensation expense, was $0.28 compared to $0.07 for Q1 2024. Adjusted EBITDA was $4 million compared to $1.7 million for the first quarter of 2024.

我們的 2025 年第一季稅率為 24%，而 2024 年第一季為 25.7%。我們預計持續稅率將在 24% 至 27% 之間。本季每股攤薄收益為 0.24 美元，而 2024 年第一季為 0.05 美元。本季調整後稀釋每股盈餘（不含股票薪酬費用）為 0.28 美元，而 2024 年第一季為 0.07 美元。調整後的 EBITDA 為 400 萬美元，而 2024 年第一季為 170 萬美元。

For the full year 2025, we now expect revenues to be between $65 million and $69 million and earnings per share between $1.10 and $1.18. As mentioned earlier, we expect growth from customers, excluding our largest customer and the impact of the legacy Kabbage business and the $0.5 million of accelerated revenue in the first quarter of 2024, to be between 30% and 35% for the full year.

我們目前預計2025年全年營收將在6,500萬美元至6,900萬美元之間，每股收益將介於1.10美元至1.18美元之間。如前所述，我們預計全年客戶收入（不包括我們最大的客戶、原有Kabbage業務的影響以及2024年第一季50萬美元的加速收入）將成長30%至35%。

For the second quarter of 2025, we expect total revenues between $16.2 million and $16.9 million and earnings per share between $0.23 and $0.28. We expect professional services revenue to be between $8.4 million and $8.8 million for the second quarter of 2025.

我們預計2025年第二季總營收在1,620萬美元至1,690萬美元之間，每股收益在0.23美元至0.28美元之間。我們預計2025年第二季專業服務收入在840萬美元至880萬美元之間。

And with that, I'll turn it over to Leland, who's warned me that his comments will be pretty short this quarter.

說完這些，我將把發言權交給 Leland，他警告我，本季他的評論將會非常簡短。

Yeah. Thanks, Matt. For those of you that read my letter that went out with the shareholder with a proxy, I said I was tempted to start the 2025 letter as just more of the same, and then I did that. Well, this morning, I pulled up the transcript of our last earnings call, and after reading it, I'm tempted to say even for this call, just more of the same.

是的。謝謝，馬特。對於那些讀過我與股東一起發出的委託書的人來說，我說過我很想以同樣的方式開始寫 2025 年的信，然後我就這麼做了。好吧，今天早上，我拿出了我們上次收益電話會議的記錄，讀完之後，我很想說，即使是這次電話會議，情況也大同小異。

You can only say the same thing so many ways. Our quarter was good. We expect the rest of the year to be equally as good or better, and that really summarizes the business.

同一件事，只能用很多種方式來表達。我們的季度表現不錯。我們預計今年剩餘時間的表現會同樣好甚至更好，這確實概括了我們的業務。

The two questions that we get most often are about succession or a company acquisition and about our largest customer. I'll repeat what I said in the last call and in the shareholders' letter. First, about succession and acquisition. We get up and go to work every day and run the company as if it is going to be independent forever. We make every decision under that light.

我們最常被問到的兩個問題是關於繼任或公司收購以及關於我們最大的客戶。我將重複我在上次電話會議和股東信中所說的話。第一，關於繼承與取得。我們每天起床去上班，經營公司，就好像公司永遠獨立一樣。我們根據這一情況做出每一個決定。

But we do work for shareholders, and we'll always try to do what we feel is in their best interest. As a part of that equation, we may not be independent forever, and we're constantly evaluating opportunities. The Board of Directors is active in those discussions as well as thinking about my successor, if we should choose to stay independent, which, frankly, both options are good, and they're actually on the table.

但我們確實為股東工作，我們始終會盡力做我們認為最符合股東利益的事情。作為這個等式的一部分，我們可能不會永遠獨立，而且我們會不斷評估機會。如果我們選擇保持獨立，董事會就會積極參與這些討論，同時也考慮我的繼任者。坦白說，這兩個選項都很好，而且實際上都在考慮之中。

And on to the risk with our largest customer, I really have nothing new to report. I've speculated in the past and continues -- and can continue speculating. And frankly, if I had information that would preempt my speculation, I'd be unable to talk about it. I referenced this in my shareholder letter and nothing has changed. Of course, if there was a material event, we would report it as required under SEC rules.

關於我們最大客戶的風險，我真的沒有什麼新消息可以報告。我過去曾推測過，現在還在推測──並且可以繼續推測。坦白說，如果我掌握的資訊足以推翻我的猜測，我就無法談論它。我在致股東的信中提到了這一點，但什麼都沒有改變。當然，如果發生重大事件，我們會按照美國證券交易委員會的規定進行報告。

So today, for what we know, nothing to report. We would hope to continue being a part of the most successful new card program in history for a very long time. That really concludes by more of the same remarks. We had a good quarter. We expect to continue that result the rest of the year. And I can say I wish I personally own more stock.

因此，就我們目前所知，沒有什麼可報告的。我們希望能夠長期參與史上最成功的新卡計畫。以上內容與上述內容基本一致。我們度過了一個美好的季度。我們預計今年剩餘時間仍能維持這項業績。我可以說我希望我個人擁有更多的股票。

With that, we're happy to take any questions you might have.

我們很樂意回答您的任何問題。

(Operator Instructions)

（操作員指示）

Hal Goetsch, B. Riley.

哈爾‧戈茨 (Hal Goetsch)、B.萊利 (B. Riley)。

Hey, thank you guys. Solid quarter and pretty cool progress. I wanted to get your thoughts on the card issuing industry with the global payments spin-off of their card issuing business to FIS and that will may be close next year, but it looks to be a serious consolidation. I was wondering if you could give us your thoughts on the disruption that might cause, maybe new issuers to work with them or what that might -- how that might benefit you. If you could share your thoughts, that would be great. Thanks.

嘿，謝謝大家。本季表現穩健，進展相當可觀。我想了解您對信用卡發行行業的看法，他們正在將信用卡發行業務的全球支付業務分拆給 FIS，這可能將在明年完成，但這看起來是一次重大的整合。我想知道您是否可以告訴我們您對可能造成的混亂的看法，也許是新發行人與他們合作，或者這可能 - 這對您可能有何好處。如果您能分享您的想法，那就太好了。謝謝。

I'd be happy to, Hal. I think it's probably a good move on the part of both parties they own natural homes. In terms of disruption, I expect it not to be major. Now I do expect a little bit, but I don't expect it to be major disruptions. I think it's pretty much business as usual. So again, I think it's a good move. I expect us to find a little opportunity there, but I wouldn't overplay it and expect to have a whole lot of opportunity.

我很樂意，哈爾。我認為對於雙方來說，他們擁有天然的家園，這可能是一個好的舉措。就中斷而言，我預計它不會造成太大影響。現在我確實有一點預料到，但我不認為這會造成重大混亂。我認為一切如常。所以，我再次認為這是一個好舉措。我希望我們能在那裡找到一點機會，但我不會過度期待，也不會期望會有很多機會。

Okay. Terrific. All right. Matt, can you -- I guess for some reason the conference call a little garbled on my end. Could you just share with us -- to make sure I got the number right, expected growth ex-Goldman this year? I just want to make sure I heard it right.

好的。了不起。好的。馬特，你能——我想由於某種原因，我這邊的電話會議有點混亂。您能否與我們分享一下—以確保我的數字正確，今年高盛的預期成長是多少？我只是想確認我聽得對。

Yeah, 30% to 35%. Pretty consistent with our previous guidance.

是的，30%到35%。與我們先前的指導非常一致。

Okay, good. All right, thank you. Thank you very much, guys.

好的，很好。好的，謝謝。非常感謝你們，夥伴們。

Avi Fisher, Long Cast Advisers.

Avi Fisher，Long Cast Advisers。

Hi, good morning. Thanks for taking my question. I wonder if you could elaborate a little bit on the Intuit purchase of Deserve. The press release that Intuit put out was a little bit opaque, but everything they described about what they were buying seem to describe what you offer to Deserve. So just kind of do you have any color on -- are you going to be doing any work for Intuit anymore? Or is your relationship with Deserve kind of over? Just elaborate a little bit on that, please.

嗨，早安。感謝您回答我的問題。我想知道您是否可以詳細說明一下 Intuit 收購 Deserve 的情況。Intuit 發布的新聞稿有點含糊不清，但他們對所購買商品的描述似乎都描述了您向 Deserve 提供的產品。那麼，您是否還有任何消息——您還會為 Intuit 做任何工作嗎？或者您與 Deserve 的關係已經結束了嗎？請稍微詳細說明一下。

Sure. We have no more information than what you described as an opaque press release, which we also -- we would also agree with that description. I suspect that our business with Deserve will really roll off over a period of time. We're not in discussions with Intuit. We don't expect to have any relationship with Intuit.

當然。我們所掌握的資訊並不比您所描述的不透明新聞稿更多，我們也同意這種描述。我認為我們與 Deserve 的業務將在一段時間內真正蓬勃發展。我們尚未與 Intuit 進行討論。我們不希望與 Intuit 建立任何關係。

Okay. And this is already incorporated into your guidance for the rest of the year?

好的。這已經納入您今年剩餘時間的指導了嗎？

Yeah, it is. Yes, it is.

是的。是的。

Yeah, that's right. We kind of described that as a potential headwind. So it's a little bit of an unknown at this point, given the lack of as to how that relationship will look going forward. So we're being a little cautious potentially, but we did bring down our forecast for that customer in particular given the uncertainty.

是的，沒錯。我們將其描述為潛在的逆風。因此，由於目前還不清楚這種關係未來會如何發展，因此目前情況還有點未知。因此我們可能會有點謹慎，但考慮到不確定性，我們確實下調了對該客戶的預測。

Okay. Got it. And just two other quick questions. I was a little surprised at the strength of Goldman revenues. How much of that is the repriced contract? And how much of that is using more hours than they had in the past?

好的。知道了。還有另外兩個簡單的問題。我對高盛強勁的收入感到有些驚訝。其中有多少是重新定價的合約？又有多少是比過去使用了更多小時？

Well, some of this, the comparison of the first quarter of last year to the first quarter of this year. So if you compare it to Q4 of last year, it's pretty consistent in terms of the amount of hours or the revenues where they're paying us by the hour. So a lot of the increase is just the Q1 last year versus Q1 this year, and then the rest of it is the higher managed services rates. So it's a combination. But for Q4 last year versus Q1 this year, it's all managed services rates.

嗯，這是去年第一季與今年第一季的比較。因此，如果將其與去年第四季進行比較，就會發現無論是工作時間還是按小時支付給我們的收入，都是相當一致的。因此，很大一部分成長只是去年第一季與今年第一季的對比，其餘部分則是更高的託管服務費率。所以這是一個組合。但與去年第四季相比，今年第一季的費率均為託管服務費率。

So is it like -- is this the run rate expected going forward, sort of?

那麼這是否就像——這是未來預期的運行率？

This is what we expect for the rest of 2025.

這是我們對 2025 年剩餘時間的預期。

And then finally, there was a little new note in the quarter about employee retention pay with a particular call out about there's an acquisition for 2028 of a company who has a $1 billion market cap, which seems oddly specific. I wonder if there's any -- if you could offer just any color around that.

最後，本季有一條關於員工留任薪酬的新消息，特別提到了將在 2028 年收購一家市值 10 億美元的公司，這似乎很具體。我想知道是否有——您是否可以提供任何相關的顏色。

Yeah. It should be -- I mean, obviously, we wanted to keep our employees, so we put a retention plan in. And one of the concerns of employees is just our size. We're a small company, and we've had some of the larger companies poach our employees and each of those companies are larger than $1 billion. And so we ended up saying, hey, guys, you'll be pretty safe if we were to be bought by one of those companies that we're losing employees to, but we're going to give you stock to try to keep you, but we don't think it's necessary to continue to do that if we're bought by a certified company. So that's what it was.

是的。應該是——我的意思是，顯然，我們想留住我們的員工，所以我們制定了保留計劃。員工關心的問題之一就是我們的規模。我們是一家小公司，一些大公司挖走了我們的員工，這些公司的資產規模都超過 10 億美元。所以我們最後說，嘿，夥計們，如果我們被那些讓我們失去員工的公司收購，你們會很安全，但我們會給你們股票來留住你們，但如果我們被一家經過認證的公司收購，我們認為沒有必要繼續這樣做。事實就是這樣。

All right. I Appreciate the color. I look forward to seeing you at the Annual Meeting. Thank you. Okay, thank you.

好的。我很欣賞這個顏色。我期待在年會上見到您。謝謝。好的，謝謝。

We have no further questions at this time. This does conclude today's teleconference. Thank you for your participation, and have a wonderful day.

目前我們沒有其他問題。今天的電話會議到此結束。感謝您的參與，祝您有美好的一天。