Jack Henry & Associates Inc (JKHY) 2023 Q3 法說會逐字稿

Welcome to the Jack Henry Third Quarter Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Mr. Vance Sherard, Vice President, Investor Relations. Please go ahead.

歡迎來到 Jack Henry 第三季度收益電話會議。 （操作員說明）請注意，正在記錄此事件。我現在想將會議轉交給投資者關係副總裁 Vance Sherard 先生。請繼續。

Good morning, and thank you for joining us for the Jack Henry Fiscal 2023 Third Quarter Earnings Call. Joining me on the call today is David Foss, our Chairman, CEO; and Mimi Carsley, CFO and Treasurer; and Greg Adelson, President and COO. After my opening remarks, I will turn the call over to Dave for his thoughts about the state of our business, financial and sales performance for the quarter, industry comments and other key initiatives. After Dave concludes his comments, Mimi will provide additional commentary regarding the financial results and fiscal year guidance included in the press release issued yesterday that is available from the Investor Relations section of the Jack Henry website. We will then open the lines for Q&A.

早上好，感謝您加入我們的 Jack Henry 2023 財年第三季度財報電話會議。今天和我一起參加電話會議的是我們的董事長兼首席執行官 David Foss；首席財務官兼財務主管 Mimi Carsley；以及總裁兼首席運營官 Greg Adelson。在我的開場白之後，我將把電話轉給戴夫，聽取他對我們業務狀況、本季度財務和銷售業績、行業評論和其他關鍵舉措的看法。在 Dave 結束評論後，Mimi 將對昨天發布的新聞稿中包含的財務業績和財政年度指導提供更多評論，可從 Jack Henry 網站的投資者關係部分獲得。然後我們將開通問答熱線。

As a reminder, this call includes certain forward-looking statements, including remarks or responses to questions concerning future expectations, events, objectives, strategies, trends or results. Like any statement about the future, these are subject to multiple factors that could cause actual results or events to differ materially from those which we anticipate due to multiple risks and uncertainties. The company undertakes no obligation to update or revise these statements.

提醒一下，本次電話會議包含某些前瞻性陳述，包括對有關未來預期、事件、目標、戰略、趨勢或結果的問題的評論或回答。與任何關於未來的陳述一樣，這些陳述受到多種因素的影響，這些因素可能導致實際結果或事件與我們因多種風險和不確定性而預期的結果或事件存在重大差異。公司不承擔更新或修改這些聲明的義務。

For a summary of these risk factors and additional information, please refer to yesterday's press release and the sections in our 10-K entitled Risk Factors and Forward-Looking Statements.

有關這些風險因素的摘要和其他信息，請參閱昨天的新聞稿和我們 10-K 中題為“風險因素和前瞻性陳述”的部分。

On this call, we will discuss certain non-GAAP financial measures, including non-GAAP revenue and non-GAAP operating income. The reconciliations for non-GAAP financial measures are in yesterday's press release. I will now turn the call over to Dave.

在這次電話會議上，我們將討論某些非 GAAP 財務指標，包括非 GAAP 收入和非 GAAP 營業收入。非 GAAP 財務措施的對賬在昨天的新聞稿中。我現在將把電話轉給戴夫。

Thank you, Vance. Good morning, everyone. We're very pleased to report another strong quarter of revenue growth and an overall solid performance by our business. As always, I'd like to begin today by thanking our associates for all the hard work and commitment that went into producing those results for our third fiscal quarter.

謝謝你，萬斯。大家，早安。我們很高興地報告又一個強勁的季度收入增長和我們業務的整體穩健表現。與往常一樣，我今天首先要感謝我們的同事為我們第三財季取得這些成果所做的所有辛勤工作和承諾。

For Q3 of fiscal 2023, total revenue increased 6% for the quarter and increased 8% on a non-GAAP basis. Consistent with our prior comments regarding the reduction in bank M&A this year, deconversion revenue was down approximately 65% as compared to the prior year quarter.

2023 財年第三季度，本季度總收入增長 6%，按非公認會計原則計算增長 8%。與我們之前關於今年銀行併購減少的評論一致，與去年同期相比，去轉換收入下降了約 65%。

Turning to the segments. We again had a good quarter in the core segment of our business. Revenue increased 4% for the quarter and increased by 8% on a non-GAAP basis. Our payments segment performed very well, posting a 6% increase in revenue this quarter and a 7% increase on a non-GAAP basis. We also had a strong quarter in our Complementary Solutions businesses with a 6% increase in revenue this quarter and an 8% increase on a non-GAAP basis.

轉向細分市場。我們在核心業務領域再次取得了不錯的成績。本季度收入增長 4%，按非公認會計原則計算增長 8%。我們的支付部門表現非常出色，本季度收入增長 6%，非 GAAP 收入增長 7%。我們的補充解決方案業務也有一個強勁的季度，本季度收入增長 6%，非 GAAP 增長 8%。

As I highlighted in the press release, our sales professionals posted an extremely strong quarter led by the core sales team. On our last quarterly call, I mentioned that the sales team set an all-time sales booking record in our fiscal Q2. Although we didn't break that record this quarter, we did set a record for the strongest Q3 in history.

正如我在新聞稿中強調的那樣，我們的銷售專業人員在核心銷售團隊的帶領下發布了一個極其強勁的季度。在我們上次的季度電話會議上，我提到銷售團隊在我們的第二財季創造了歷史銷售預訂記錄。雖然我們本季度沒有打破這個記錄，但我們確實創造了歷史上最強的 Q3 記錄。

During the quarter, we inked 13 competitive core takeaways, so we continue at the approximately 1 deal per week run rate I've discussed in the past. In addition to our success in signing new core clients, we signed 13 existing on-prem core customers to move to our private cloud environment.

在本季度，我們簽署了 13 項具有競爭力的核心要點，因此我們繼續保持我過去討論過的每週約 1 筆交易的運行率。除了成功簽署新的核心客戶外，我們還簽署了 13 個現有的內部部署核心客戶，以遷移到我們的私有云環境。

In addition to the tremendous success we've experienced in our core business this quarter, we continue to attract new clients to our digital banking suite. During the third quarter, we signed 39 new clients to our Banno retail platform with another 35 clients sign up for Banno business. Regarding our Banno digital suite, as of March 31, we now have just over 9.3 million users live on the Banno platform. We continue to enjoy the highest consumer rating in the App Store, and we are regularly recognized as the fastest application in the industry. The feedback from our 30 Banno business beta testing clients has been outstanding, and we remain on track to deliver Banno business into general availability later this quarter.

除了本季度我們在核心業務中取得的巨大成功外，我們還繼續吸引新客戶使用我們的數字銀行業務套件。在第三季度，我們為 Banno 零售平台簽下了 39 名新客戶，另外還有 35 名客戶簽下了 Banno 業務。關於我們的 Banno 數字套件，截至 3 月 31 日，我們現在有超過 930 萬用戶生活在 Banno 平台上。我們繼續在 App Store 中享有最高的消費者評價，並且我們經常被公認為業內最快的應用程序。來自我們 30 個 Banno 業務 Beta 測試客戶的反饋非常出色，我們將繼續按計劃在本季度晚些時候將 Banno 業務全面推出。

Let me take a moment to address the banking landscape related to the liquidity challenges experienced by a couple of large regional banks in March and earlier this week. Although I'm not aware of any Jack Henry core clients who have tapped into the Federal Reserve's new bank term funding program, I think the announcement has had a positive effect on the overall concern in the market regarding bank liquidity. And I applaud the Fed on their swift and decisive action.

讓我花點時間談談與幾家大型區域性銀行在 3 月和本週早些時候所經歷的流動性挑戰相關的銀行業格局。儘管我不知道有任何 Jack Henry 核心客戶參與了美聯儲新的銀行定期融資計劃，但我認為該公告對市場對銀行流動性的整體擔憂產生了積極影響。我對美聯儲迅速果斷的行動表示讚賞。

Since those events grabbed the headlines, members of our team have spoken with hundreds of our clients, and I personally have visited with a large number of CEOs at our client banks. I'm pleased to say that our banking clients have indicated they have been largely unaffected by these events with the exception of several who have reported an influx of new accounts as business clients look to diversify their deposit balances. Our clients typically have a diversified customer base, serve small and medium businesses and consumers in their local communities, and have long-standing and loyal customers. So I think it's logical that they wouldn't see an adverse impact as a result of a few extreme scenarios.

自從這些事件成為頭條新聞以來，我們團隊的成員已經與數百名客戶進行了交談，我個人也拜訪了我們客戶銀行的大量首席執行官。我很高興地說，我們的銀行客戶表示他們基本上沒有受到這些事件的影響，除了一些人報告說由於商業客戶希望分散他們的存款餘額而湧入新賬戶。我們的客戶通常擁有多元化的客戶群，為當地社區的中小型企業和消費者提供服務，並擁有長期忠誠的客戶。所以我認為他們不會因為一些極端情況而看到不利影響是合乎邏輯的。

Also remember that a large part of our business is focused on the credit union industry with approximately half of all credit unions with more than $1 billion in assets partnered with Jack Henry as their primary technology provider. Those clients also report being largely unaffected by the challenges in the banking sector. In late April, IntraFi conducted a survey which generated responses for more than 550 bank CEOs, Presidents and CFOs primarily at banks with less than $10 billion in assets. Approximately 77% of the respondents saw no significant inflows or outflows of deposits. 14% said they saw deposits decline by 2% or more and 9% said they saw an increase of at least 2% in deposits. I think these results are consistent with what we've heard anecdotally from our clients.

還要記住，我們的大部分業務都集中在信用合作社行業，大約一半的資產超過 10 億美元的信用合作社與 Jack Henry 合作，作為他們的主要技術提供商。這些客戶還表示，他們基本上沒有受到銀行業挑戰的影響。 4 月下旬，IntraFi 進行了一項調查，對 550 多家銀行首席執行官、行長和首席財務官做出了回應，主要來自資產低於 100 億美元的銀行。大約 77% 的受訪者認為存款沒有顯著流入或流出。 14% 的人表示他們看到存款下降了 2% 或更多，9% 的人表示他們看到存款至少增加了 2%。我認為這些結果與我們從客戶那裡聽到的軼事是一致的。

We have seen no hesitation on the part of our clients to move ahead with technology decisions since the middle of March. And as I mentioned earlier, this was the largest third quarter in terms of sales bookings in the history of our company. What's more, our sales pipeline is now larger than at any other time, including a recognizable uptick in opportunities since our last quarterly call in February. I'm well aware of the challenges bankers face in today's economy and understand that things could change. But as we speak today, our clients are generally performing well, and banks and credit unions are continuing to prioritize modernization of their technology stack to remain competitive and serve the evolving needs of their account holders.

自 3 月中旬以來，我們已經看到客戶毫不猶豫地推進技術決策。正如我之前提到的，這是我們公司歷史上銷售預訂量最大的第三季度。更重要的是，我們的銷售渠道現在比以往任何時候都大，包括自 2 月份上一次季度電話會議以來明顯增加的機會。我很清楚銀行家在當今經濟中面臨的挑戰，也明白情況可能會發生變化。但正如我們今天所說，我們的客戶總體上表現良好，銀行和信用合作社繼續優先考慮其技術堆棧的現代化，以保持競爭力並滿足其賬戶持有人不斷變化的需求。

Hopefully, you've all seen the new corporate sustainability report that we published on March 31. I think it's an excellent representation of the key initiatives and accomplishments we've been working on since we published our last report. In this new version, we provided a more detailed review of Jack Henry's demographic makeup, a summary of the results of our annual employee engagement survey, an overview of our data privacy and cybersecurity practices and an outline of our commitment to setting science-based targets through the science-based targets initiative, or SBTI, to address the reduction of greenhouse gas emissions.

希望你們都看到了我們在 3 月 31 日發布的新企業可持續發展報告。我認為它很好地體現了自我們發布上一份報告以來我們一直在努力的關鍵舉措和成就。在這個新版本中，我們更詳細地回顧了 Jack Henry 的人口構成，總結了我們年度員工敬業度調查的結果，概述了我們的數據隱私和網絡安全實踐，並概述了我們對設定科學目標的承諾通過基於科學的目標倡議 (SBTI) 來解決減少溫室氣體排放的問題。

Additionally, the report highlights some of the recognition we've received from organizations like Newsweek, Computer World and LinkedIn's Top Companies list.

此外，該報告強調了我們從《新聞周刊》、《計算機世界》和 LinkedIn 的頂級公司名單等組織獲得的一些認可。

As we look toward the end of the fiscal year, our sales pipeline is much larger than it's ever been, and we continue to be optimistic about the strength of our technology solutions, our ability to deliver outstanding service to our customers, our ability to expand our customer relationships and our long-term prospects for success.

展望本財年末，我們的銷售渠道比以往任何時候都大得多，我們繼續對我們的技術解決方案的實力、我們為客戶提供卓越服務的能力、我們的擴展能力持樂觀態度我們的客戶關係和我們的長期成功前景。

I look forward to seeing and chatting with many of you at our Investor Day in Denver in a couple of weeks. With that, I'll turn it over to Mimi for some detail on the numbers.

我期待著在幾週後的丹佛投資者日見到你們中的許多人並與之交談。有了這個，我會把它交給 Mimi 來了解一些關於數字的細節。

Thanks, Dave. Good morning, everyone. As Dave shared, Jack Henry had a successful third quarter, and I will call out the details driving those results and our outlook for the remainder of the year. For both the third quarter and first 9 months of our fiscal year, total revenue is up 6% on a GAAP basis and solidly up 8% on a non-GAAP basis.

謝謝，戴夫。大家，早安。正如 Dave 分享的那樣，Jack Henry 第三季度取得了成功，我將詳細介紹推動這些結果的細節以及我們對今年剩餘時間的展望。在本財年的第三季度和前 9 個月，總收入按 GAAP 計算增長 6%，按非 GAAP 計算增長 8%。

Now on to the third quarter detail. On a GAAP basis, services and support revenue increased 3% in both the third quarter and year-to-date. Consistent with trends over the past 2 quarters, services and support were negatively impacted as deconversion revenue decreased $11 million for the quarter and $31 million year-to-date. This remains in line with the limited broader market activity, acquisition activity in our space.

現在進入第三季度的細節。根據 GAAP，服務和支持收入在第三季度和年初至今均增長了 3%。與過去兩個季度的趨勢一致，服務和支持受到負面影響，因為本季度的去轉換收入減少了 1100 萬美元，今年迄今減少了 3100 萬美元。這與我們領域有限的更廣泛的市場活動、收購活動保持一致。

With only a couple of months left, we are projecting approximately $20 million in deconversion revenue this fiscal year. However, forecasting deconversion activity is always challenging given the limited advance notice and general uncertainty of M&A. Our private and public cloud offering show robust growth this quarter, growing 11% and 10% year-to-date. Product delivery and services decreased 10% in the quarter, 11% year-to-date, impacted by lower deconversion revenue and convert merger activity, offset by higher license and hardware revenue.

只剩下幾個月了，我們預計本財年的反轉化收入約為 2000 萬美元。然而，鑑於併購的提前通知有限和普遍不確定性，預測反轉化活動總是具有挑戰性。我們的私有云和公共雲產品在本季度表現出強勁增長，年初至今分別增長了 11% 和 10%。產品交付和服務在本季度下降了 10%，年初至今下降了 11%，這是受到較低的去轉換收入和轉換合併活動的影響，但被較高的許可和硬件收入所抵消。

On a non-GAAP basis, services and support revenue grew 8% for the quarter and 7% year-to-date, which serves to highlight the consistent strength of our business model. Processing revenue increased 11% on a GAAP basis for the quarter and 10% year-to-date. On a non-GAAP basis, the growth was 10% for the quarter and 9% year-to-date. The increases were driven by the higher card volumes and services plus robust digital demand.

在非 GAAP 基礎上，本季度服務和支持收入增長 8%，年初至今增長 7%，這凸顯了我們業務模式的一貫優勢。按 GAAP 計算，本季度加工收入增長 11%，年初至今增長 10%。按非美國通用會計準則計算，本季度增長率為 10%，年初至今增長率為 9%。增長是由更高的卡數量和服務以及強勁的數字需求推動的。

Now reviewing costs. Cost of revenue was up 9% for the third quarter and 8% year-to-date. Quarterly drivers included increased card processing costs consistent with card revenue growth, higher personnel costs and amortization expense. These drivers are consistent across our year-to-date results. Research and development expense increased 13% during the quarter, mostly due to higher personnel costs and license fees furthering innovation. Year-to-date, these expenses increased 19% based on the same factors.

現在審查成本。第三季度的收入成本增長了 9%，今年迄今增長了 8%。季度驅動因素包括與卡收入增長一致的卡處理成本增加、人員成本和攤銷費用增加。這些驅動因素在我們年初至今的結果中是一致的。研發費用在本季度增長了 13%，這主要是由於人員成本增加以及促進創新的許可費用。年初至今，這些費用基於相同的因素增加了 19%。

SG&A rose 9% for the quarter, driven by increases in personnel-related costs. Year-to-date, the increase was 8%, driven by personnel, travel, professional services costs partly offset by the gain on sales of assets earlier this year.

在人員相關成本增加的推動下，本季度 SG&A 增長了 9%。年初至今，增幅為 8%，受人員、差旅、專業服務成本的推動，部分被今年早些時候資產出售收益所抵消。

We remain focused on actions involving facility rationalization, headcount and travel controls, procurement wins and other expense management. Collectively, these efforts are helping offset inflationary pressures in driving positive operational results. Despite a decline in net income primarily related to deconversion revenue and partially offset by a lower tax rate, we delivered fully diluted earnings per share of $1.12 for the quarter.

我們仍然專注於涉及設施合理化、員工人數和差旅控制、採購勝利和其他費用管理的行動。總的來說，這些努力有助於抵消通貨膨脹壓力，從而推動積極的經營業績。儘管淨收入下降主要與去轉換收入有關，並被較低的稅率部分抵消，但我們在本季度實現了 1.12 美元的完全稀釋每股收益。

Thanks to our hard-working and dedicated associates, GAAP and non-GAAP results for the third quarter and 9 months of the year are consistent with internal expectations and set us up for a strong conclusion to FY '23. As a reminder, for transparency, the impact from the gain on sale of assets, the Payrailz acquisition and deconversion revenue are shown as part of the non-GAAP adjustments in the press release.

多虧了我們勤奮敬業的員工，第三季度和今年 9 個月的 GAAP 和非 GAAP 業績與內部預期一致，並為我們在 23 財年取得強有力的結論奠定了基礎。提醒一下，為了透明起見，資產出售收益的影響、Payrailz 的收購和轉換收入在新聞稿中顯示為非 GAAP 調整的一部分。

Turning our attention to cash flow. Year-to-date operating cash flow was $207 million, down from $301 million in the same period last year due to lower deconversion revenue and the timing of taxes. The tax payments were in a significant outflow at $64 million in the quarter related to a change in the timing of the deductibility of development expenses. Free cash flow, which is operating cash flow less CapEx and cap software plus proceeds from the sale of assets was $82 million year-to-date. Excluding the previously discussed tax payments and keeping year-to-date deconversion revenue flat, free cash flow would have been approximately $163 million.

將注意力轉向現金流。年初至今的運營現金流為 2.07 億美元，低於去年同期的 3.01 億美元，原因是去轉換收入較低和稅收時間安排。由於開發費用扣除時間的變化，本季度的稅款大量流出 6400 萬美元。自由現金流，即運營現金流減去資本支出和上限軟件加上出售資產的收益，今年迄今為 8200 萬美元。排除之前討論的稅收支付並保持年初至今的反轉換收入持平，自由現金流量約為 1.63 億美元。

While balancing repurchase activities with maintaining a conservative balance sheet, we repurchased 151,000 shares during the quarter. We also returned capital to shareholders through a dividend of [$0.52] per share, representing a 6% increase. Our capital allocation priorities remain consistent. We're focused on maintaining ample liquidity, investing in our business to fuel growth, evaluating acquisitions, paying dividends and opportunistically repurchasing our stock. This consistent dedication to value creation resulted in a trailing 12-month return on invested capital of 20.1%.

在平衡回購活動和保持保守的資產負債表的同時，我們在本季度回購了 151,000 股股票。我們還通過每股 [0.52 美元] 的股息向股東返還資本，增加了 6%。我們的資本配置重點保持一致。我們專注於保持充足的流動性、投資於我們的業務以推動增長、評估收購、支付股息和機會主義地回購我們的股票。這種對價值創造的持續奉獻導致過去 12 個月的投資資本回報率為 20.1%。

With that, let's review our outlook for the completion of our fiscal year. The press release included updated full year GAAP guidance. The GAAP guidance remains inclusive of the Payrailz acquisition, gain on asset sales and deconversion revenue. We expect the year-to-date trends to continue for the remainder of the fiscal year, impacting GAAP results. Most significantly, assuming continued minimal consolidation in our customer base, deconversion revenue will remain muted. Considering year-to-date activity, we expect approximately $20 million of annual deconversion revenue, representing a $5 million increase from our previous guidance provided on the last call.

有了這個，讓我們回顧一下我們對本財政年度完成的展望。新聞稿包括更新的全年 GAAP 指南。 GAAP 指引仍然包括 Payrailz 收購、​​資產出售收益和去轉換收入。我們預計年初至今的趨勢將在本財年的剩餘時間內持續下去，從而影響 GAAP 結果。最重要的是，假設我們的客戶群繼續進行最小程度的整合，去轉換收入將保持低迷。考慮到年初至今的活動，我們預計每年的反轉化收入約為 2000 萬美元，比我們之前在上次電話會議上提供的指導增加了 500 萬美元。

To be [transparent] on our August full year earnings call, we will outline our new approach to providing guidance for deconversion revenue. While the integration of Payrailz continues to meet expectations, there has been third-party implementation delays impacting FY '23 revenue amounting to a shortfall of $3 million. This revenue remains in our pipeline. We remain confident in the strategic value and financial performance trajectory. We expect full year GAAP revenue growth for fiscal '23 to be between 5.5% to 5.9%. With respect to full year GAAP EPS, we expect $4.85 to $4.87 per share, with improvement driven from positive impacts from a modestly higher expected deconversion revenue, lower tax rate, partly offset by a slight increase in Payrailz dilutions.

為了在我們 8 月的全年收益電話會議上[透明]，我們將概述我們為去轉換收入提供指導的新方法。雖然 Payrailz 的整合繼續滿足預期，但第三方實施延遲影響了 23 財年的收入，總計缺口 300 萬美元。這筆收入仍在我們的管道中。我們對戰略價值和財務業績軌跡仍然充滿信心。我們預計 23 財年的全年 GAAP 收入增長將在 5.5% 至 5.9% 之間。關於全年 GAAP 每股收益，我們預計每股收益為 4.85 美元至 4.87 美元，這是由於預期去轉換收入適度增加、稅率降低的積極影響推動的，部分被 Payrailz 稀釋的小幅增加所抵消。

Non-GAAP guidance remains unchanged due to the continued impressive and consistent performance of our business model. So in closing, we delivered another quarter of strong operational and financial results and remain solidly optimistic about the conclusion of this fiscal year. We thank all of our investors for their continued confidence in Jack Henry. Debbie, will you please open the call for questions.

由於我們的商業模式持續令人印象深刻和一致的表現，非 GAAP 指南保持不變。因此，最後，我們又交付了一個季度強勁的運營和財務業績，並對本財年的結束保持堅定樂觀。我們感謝所有投資者對 Jack Henry 的持續信任。黛比，你能打開電話提問嗎？

(Operator Instructions) The first question is from Rayna Kumar with UBS.

（操作員說明）第一個問題來自瑞銀的 Rayna Kumar。

David, in the past, you've spoken about having the ability to sell Banno to non-Jack Henry core customers. How is that progressing? And in general, are you seeing the opportunity to sell your core processing services to larger financial institution?

David，過去，您曾談到有能力將 Banno 銷售給非 Jack Henry 核心客戶。進展如何？總的來說，您是否看到有機會向更大的金融機構出售您的核心處理服務？

Rayna, so 2 questions in there. First off, as far as Banno was concerned, so -- and I think I talked about this on the last earnings call. I know I've talked about it in some of the fireside chats that I've done with some of you. We had, in fact, a plan to start selling Banno outside the base here in the fall of this past year. And what we learned much to our surprise was that some of our competitors had identified that as an opportunity for them to hang on to their core customers. The fact that their core customer was going to be able to use Banno, they were essentially using that as a selling point for those customers to retain their legacy core system because they would get the best-of-breed digital banking system without having to change out the cores. And that certainly was not part of our strategy. And so we've kind of backed off on that.

Rayna，所以有 2 個問題。首先，就 Banno 而言，所以——我想我在上次財報電話會議上談到了這一點。我知道我在與你們中的一些人進行的一些爐邊談話中談到了它。事實上，我們計劃在去年秋天開始在基地外銷售版諾。令我們驚訝的是，我們的一些競爭對手認為這是他們留住核心客戶的機會。事實上，他們的核心客戶將能夠使用 Banno，他們實質上是將其用作這些客戶保留其遺留核心系統的賣點，因為他們無需更改即可獲得同類最佳的數字銀行系統出核心。這當然不是我們戰略的一部分。所以我們有點退縮了。

We were prepared in the fall to start selling outside the base. We backed away from that now. We're really reworking that strategy with a more targeted approach. And so you'll hear more about that from us, I think, later this year as far as how we're going to go to market with Banno outside the core base. As far as the -- now you'd like to remind me the second part of your question.

我們準備在秋天開始在基地外銷售。我們現在放棄了。我們真的在用更有針對性的方法重新制定該戰略。所以你會聽到更多關於我們的信息，我想，今年晚些時候，我們將如何在核心基地之外與 Banno 一起進入市場。至於 - 現在你想提醒我你問題的第二部分。

We're [selling up] yes, sorry, selling up market. Good thing I have to help here in the room. Selling up markets. So yes, the -- first off, we're having great success with Silver Lake in the banking side. And of course, we're the dominant player on the credit union side already a market. So approximately 50% of the credit union industry with assets over $1 billion are already Jack Henry core customers. So we're already the dominant player on the (inaudible) side of the business. On the banking side, -- we've had great success here in the past few years, moving upmarket with -- particularly with our Silver Lake core system.

我們[賣掉]是的，對不起，賣掉市場。還好我得在房間裡幫忙。銷售市場。所以是的，首先，我們在銀湖銀行方面取得了巨大成功。當然，我們在信用合作社方面已經是市場的主導者。因此，大約 50% 的資產超過 10 億美元的信用合作社行業已經是 Jack Henry 的核心客戶。所以我們已經是業務（聽不清）方面的主導者。在銀行業方面，過去幾年我們在這裡取得了巨大成功，通過我們的銀湖核心系統進入了高端市場。

What's been interesting now with the tech modernization strategy, we are engaging with a number of customers now that are significantly larger than you would normally think of as a Jack Henry core customer who are very interested in what we're doing and are now seeing Jack Henry as the very probable technology partner that they want to partner up with going forward. So more to come on that. It's early days for us with some of these very large customers that we're talking to, but the prospects, I think, are pretty bright and much of that being driven by the tech modernization strategy that we've been talking about lately.

現在技術現代化戰略的有趣之處在於，我們現在正在與許多客戶進行接觸，這些客戶比您通常認為的 Jack Henry 核心客戶要多得多，他們對我們正在做的事情非常感興趣，現在正在見到 Jack亨利是他們希望與之合作的非常可能的技術合作夥伴。所以還有更多的事情要做。對於我們正在與之交談的一些非常大的客戶來說，現在還處於早期階段，但我認為前景非常光明，其中很大一部分是由我們最近一直在談論的技術現代化戰略推動的。

Very helpful. And then if I can fit one in for Mimi. Mimi, could you just comment on the debit processing volume in the quarter? And secondly, if you can just give us your preliminary thoughts on how FY '24 revenue and operating margin could pan out given that you're close to your fiscal year-end?

很有幫助。然後如果我能為咪咪裝一個。咪咪，你能評論一下本季度的借記處理量嗎？其次，如果你能告訴我們你對 24 財年收入和營業利潤率如何在你接近財政年度結束時的初步想法？

Thanks, Rayna. Yes. So we continue to see the trends that have happened for the first 9 months of the year and are consistent with the broader market data that you're getting from other industry players in terms of slightly slower as it relates to the consumer sentiment impacting those trends and a little bit more going to the credit side than the debit side. And as you know, we have a much bigger profile on debit in our business. So our guidance incorporates the continuation of that trend. And then to your second question, unfortunately, it's a little premature at this point to talk about FY '24. Our teams are still heads down, collaborating on the budgeting process, and we'll probably share that more on the August call than we will today.

謝謝，蕾娜。是的。因此，我們繼續看到今年前 9 個月發生的趨勢，並且與您從其他行業參與者那裡獲得的更廣泛的市場數據一致，因為它與影響這些趨勢的消費者情緒有關，略有放緩貸方比借方多一點。如您所知，我們在業務中對借記卡的了解要大得多。因此，我們的指導包含了這一趨勢的延續。然後是你的第二個問題，不幸的是，現在談論 FY '24 還為時過早。我們的團隊仍在埋頭苦幹，在預算流程上進行協作，我們可能會在 8 月的電話會議上分享比今天更多的信息。

And can I add one comment on the debit (inaudible). So I think there was a bit of a misunderstanding after the last call. We attributed a part of our guide change too, is the fact that the debit volumes we saw going forward were going to slow just a little bit. And certainly, that's true. But that doesn't mean the debit business is underperforming. The debit side of our business has been a real, real solid performer for us this year. We just had a little higher expectation for the remainder of the year then is reality. And that's why we made the adjustment. But the debit business is performing extremely well at Jack Henry.

我可以在藉方上添加一條評論嗎（聽不清）。所以我認為在上次通話後出現了一些誤會。我們也將一部分原因歸因於我們的指南變化，即我們看到未來的借方數量將略有放緩。當然，這是真的。但這並不意味著借記業務表現不佳。今年，我們業務的借方表現非常出色。我們只是對今年餘下時間的期望高了一點，然後就變成了現實。這就是我們進行調整的原因。但 Jack Henry 的借記業務表現非常出色。

The next question comes from Dan Perlin with RBC Capital Markets.

下一個問題來自 RBC Capital Markets 的 Dan Perlin。

Dave, I had a question going back to the demand environment. I feel like there's a huge disconnect in the market with the stocks and kind of what we hear from the banks versus what you're seeing. I'm just wondering if maybe we're getting it wrong a little bit, like is the pressure that the banks are feeling right now driving more tech demand to you as opposed to maybe the converse, which is, I think, what most people are expecting.

戴夫，我有一個關於需求環境的問題。我覺得市場與股票之間存在巨大的脫節，我們從銀行那裡聽到的與您所看到的有所不同。我只是想知道我們是不是有點誤會了，比如銀行現在感受到的壓力正在推動更多的技術需求，而不是相反，我認為大多數人都這樣正在期待。

Yes, it's an insightful question, Dan. And I think what you're saying is generally correct. So if you're running a bank or [Credit Union] in the United States today, they've been performing pretty well, and we all know the challenges that they're under in rate increases and cost of capital and that kind of stuff. But if you're running a bank or Credit Union in the United States today, you -- for almost all of them, they need to continue to focus on modernizing their technology stack for 1 of 2 reasons. One, you're trying to attract new customers to your institution and customers aren't coming into the branch anymore, right? They're expecting to do things through some type of digital presentation layer.

是的，這是一個很有見地的問題，丹。我認為你所說的大體上是正確的。因此，如果你今天在美國經營一家銀行或 [Credit Union]，他們的表現一直很好，我們都知道他們在利率上漲和資本成本等方面面臨的挑戰.但是，如果您今天在美國經營一家銀行或信用合作社，您——對於幾乎所有銀行或信用合作社，出於以下兩個原因之一，他們需要繼續專注於實現技術堆棧的現代化。第一，您正試圖吸引新客戶到您的機構，而客戶不再光顧分支機構，對嗎？他們期望通過某種類型的數字表示層來做事。

So for most banks of Credit Union, that requires them to continue on this modernization track and make sure that they have the tools to attract not just consumers but business customers, small medium business customers out of the lifeblood of our customers and how they operate on the banking side. And so there's that driver.

因此，對於 Credit Union 的大多數銀行來說，這要求他們繼續沿著現代化軌道前進，並確保他們擁有不僅可以吸引消費者，還可以吸引企業客戶、中小型企業客戶的工具，這些都是我們客戶的命脈，以及他們如何運營銀行方面。所以有那個司機。

But then the other side of the equation is efficiency. So for most bankers, they can quote their efficiency ratio immediately to you without looking at any piece of paper, they can quote it off the top of their head because they are all focused on efficiency and trying to figure out where are those areas where we can drive efficiency through the operation. Well, generally, technology is at the kind of the crux of where they're going to find efficiency. And so there, too, Jack Henry is in the mix having those conversations with our customers. And then you throw into that on top of that fraud and cybersecurity and all those kind of things, all of that stuff is driven by technology.

但等式的另一面是效率。所以對於大多數銀行家來說，他們可以在不看任何紙的情況下立即向你報出他們的效率比率，他們可以隨口引用它，因為他們都專注於效率並試圖弄清楚我們在哪裡可以通過運營帶動效率。好吧，一般來說，技術是他們尋求效率的關鍵所在。因此，傑克亨利也在與我們的客戶進行這些對話。然後你在欺詐和網絡安全以及所有這些事情之上投入其中，所有這些東西都是由技術驅動的。

And so yes, I think there is a bit of a disconnect in this sense that because there's some [turmoil] in the industry, Jack Henry sales are going to be negatively impacted, they're just not. The businesses continue to run and they need to continue to find technology solutions to help them with all those things that I just highlighted.

所以是的，我認為在這個意義上存在一些脫節，因為這個行業存在一些[動盪]，傑克亨利的銷售將受到負面影響，但事實並非如此。企業繼續運營，他們需要繼續尋找技術解決方案來幫助他們完成我剛才強調的所有這些事情。

No, it sounds somewhat counterintuitive, but I mean it clearly makes sense in the current context. A quick question or follow-up on margins here. I know you don't want to go up to next year, but I would appreciate if you could maybe talk about some of the key drivers and levers that you're going to be able to have here, whether it be expense control, specifically kind of mix of the business just as we start to think about the margin expansion story again.

不，這聽起來有點違反直覺，但我的意思是在當前情況下它顯然是有意義的。在這裡可以快速提問或跟進利潤率。我知道你不想拖到明年，但如果你能談談你將能夠在這裡擁有的一些關鍵驅動因素和槓桿，我將不勝感激，無論是費用控制，特別是就像我們開始再次考慮利潤率擴張的故事一樣，這種業務組合。

Sure, Dan. Great question. So as we talked about previously, we continue to see margin expansion throughout the year. We knew it would be a modest amount this year earlier in the year. Our original guidance was for flat for the year. We're hopeful that -- and we're on track for a small increase in margin expansion. I would say the things we're working on are consistent. We do a ton around efficiency, continuous improvement. We've done a lot on internal [automization]. And procurement has been a huge win for us as we think about streamlining partnerships and really prioritizing that spend. So we're being really thoughtful on controllable spend like travel, headcount additions, really thinking about each position from a zero-based perspective.

當然，丹。很好的問題。因此，正如我們之前談到的那樣，我們全年繼續看到利潤率增長。今年早些時候，我們知道這將是一個適度的數額。我們最初的指導是全年持平。我們對此充滿希望 - 我們有望實現利潤率擴張的小幅增長。我會說我們正在做的事情是一致的。我們圍繞效率和持續改進做了大量工作。我們在內部 [自動化] 方面做了很多工作。當我們考慮精簡合作夥伴關係並真正優先考慮支出時，採購對我們來說是一個巨大的勝利。因此，我們在考慮可控支出，如差旅、增加員工人數，真正從零基礎的角度考慮每個職位。

But there's nothing structurally that concerns me in terms of the ability to once again continue back now that we have the normalization of some of the headwinds we've seen past years and return out of COVID environment that will return back to a margin expansion story.

但是，由於我們已經將過去幾年看到的一些逆風正常化，並從 COVID 環境中回歸，這將回歸利潤率擴張的故事，因此在結構上沒有什麼讓我擔心再次繼續回歸的能力。

The next question is from Nick Cremo with Credit Suisse.

下一個問題來自瑞士信貸的 Nick Cremo。

Congrats on the strong results. I was hoping to get some more color on the performance in the payments segment in the quarter, just across the various business lines. And if you received any onetime benefits related to the banking turmoil like some of your competitors? And just as my follow-up, are you still expecting Payrailz to be modestly accretive in FY '24.

祝賀你取得了優異的成績。我希望對本季度支付部門的表現有更多的了解，就在各個業務領域。如果您像您的一些競爭對手一樣獲得與銀行業風暴相關的任何一次性福利？正如我的後續行動一樣，您是否仍期望 Payrailz 在 24 財年適度增長。

Let's do Payrailz first. Greg is prepared to give you an overview of Payrailz and then we'll talk about the rest of the payments business.

讓我們先做Payrailz。 Greg 準備向您簡要介紹 Payrailz，然後我們將討論其餘的支付業務。

Yes. And I think -- so I'll go ahead and start with Payrailz. But a couple of things. So one, Mimi alluded to the fact that in her opening comments around, we do have some challenges with a couple of third parties. And I think some of it is headcount related and other constraints that they have to get some of the work done to allow some of our contracts that are already done and in the implementation queue to be brought into the production queue. So there's a few of those constraints and things that we're working through. But the good news is that since September, when we made that acquisition, we've actually sold 40 new -- 48 new contracts and 17 add-ons. Add-ons are things like the P2P solution. We have a loan payment solution, things like that.

是的。而且我認為 - 所以我會繼續並從 Payrailz 開始。但是有幾件事。因此，首先，Mimi 在她的開場評論中提到了這樣一個事實，即我們確實遇到了一些第三方的挑戰。而且我認為其中一些是與員工人數相關和其他限制，他們必須完成一些工作，以允許我們已經完成並在實施隊列中的一些合同被帶入生產隊列。因此，我們正在解決一些限制和問題。但好消息是，自 9 月以來，當我們進行收購時，我們實際上已經售出了 40 份新合同——48 份新合同和 17 份附加合同。附加組件類似於 P2P 解決方案。我們有貸款支付解決方案，諸如此類。

So the sales engine is starting to move and a lot of the sales that were done previously before we acquired Payrailz, we're really predominantly done through that third-party channel. So of course, we have a much larger sales force and folks that are focused on selling more direct deals. So we're pretty very optimistic on what's happening in the sales side of this. We just need a couple of the integration partners to be able to get some of their work done that will help us accelerate the revenue in fiscal year '24. And I can start on the payment side, too.

所以銷售引擎開始移動，很多銷售都是在我們收購 Payrailz 之前完成的，我們實際上主要是通過第三方渠道完成的。因此，當然，我們擁有更大的銷售隊伍和專注於銷售更多直接交易的人員。因此，我們對銷售方面的情況非常樂觀。我們只需要幾個集成合作夥伴就可以完成他們的一些工作，這將有助於我們在 24 財年加快收入。我也可以從付款方面開始。

So I think -- and Mimi alluded to what was going on our card business, which continues to go very, very strongly as far as growth. But when you look at the rest of our payment businesses, there's a nice mix of growth, maybe not to the same level that we had remote deposit capture in our EPS business was significant during the pandemic. Obviously, folks were not going into branches at all though that continues for the most part, -- that business is not growing at the same pace it did but still in a double-digit growth in our portfolio.

所以我認為 - Mimi 提到了我們的卡業務正在發生的事情，該業務在增長方面繼續非常非常強勁。但是當你看看我們其他的支付業務時，你會發現有很好的增長組合，可能與我們在 EPS 業務中的遠程存款捕獲在大流行期間的顯著水平不同。顯然，儘管大部分情況下這種情況仍在繼續，但人們根本沒有進入分支機構——該業務的增長速度與以往不同，但我們的投資組合仍以兩位數的速度增長。

So things that we're doing in our pay center business around general payments and preparation for Fed Now, which we can talk about at some point, too. But in our clearinghouse business and what we've done with Zelle, we continue to have about 60% of all the clearinghouse customers that are out there. There's only about 300 clearinghouse, and we have over 180 that are live on Jack Henry today. That continues to grow nicely. And so that business continues to have a lot of upside.

因此，我們在支付中心業務中圍繞一般支付和美聯儲現在的準備所做的事情，我們也可以在某個時候討論。但在我們的票據交換所業務以及我們與 Zelle 所做的事情中，我們繼續擁有大約 60% 的票據交換所客戶。只有大約 300 個票據交換所，而我們今天有超過 180 個在 Jack Henry 上運行。那繼續很好地增長。因此，該業務繼續有很大的上升空間。

Yes. I would just add that there's consistency to Greg's point, there's consistency across remit cards, payments, also led by things like the fraud and other risk management solutions that are add on. So I would say that trend from a consistency of growth will continue and then added by the benefit of Payrailz.

是的。我只想補充一點，格雷格的觀點是一致的，匯款卡、支付之間也存在一致性，這也是由欺詐和其他附加的風險管理解決方案等因素導致的。所以我想說，持續增長的趨勢將繼續下去，然後再加上 Payrailz 的好處。

Okay. The next question comes from David Togut with Evercore ISI.

好的。下一個問題來自 Evercore ISI 的 David Togut。

You've called out your new sales pipeline at a record level. Could you walk through what are the biggest drivers of that? Is that new tech modernization modules? Is it Banno business, Silver Lake, what are the underlying components of that strength?

您已經以創紀錄的水平召集了新的銷售渠道。您能否介紹一下其中最大的驅動因素是什麼？那是新技術現代化模塊嗎？是板野業務，還是銀湖，這種實力的底層構成是什麼？

Sure, Dave. And one thing I'll highlight as I go through this, when I talk about pipeline, I know there's been some confusion in the past. I'm not talking about individual deals, how many core customers are in the pipeline or anything like that. I'm talking about the dollar amount essentially. And this is a non-GAAP number, but it's the dollar amount that we track as far as the value of each contract. So it's in theory, that all converts into revenue at some point after deals are signed and they're implemented. As far as the drivers, so core continues to be king for us when it comes to a driver. We have just a tremendous amount of core activity right now, both banking and credit union as far as customers that are talking to Jack Henry about trading out their existing technology. Some of that is certainly driven by tech modernization, but I don't think it's as much driven by I want to sign for the tech modernization module right now today.

當然，戴夫。當我討論這個問題時，我會強調一件事，當我談論管道時，我知道過去存在一些混亂。我不是在談論個別交易，有多少核心客戶在籌備中或類似的事情。我基本上是在談論美元金額。這是一個非 GAAP 數字，但它是我們根據每份合同的價值追踪的美元金額。所以從理論上講，在簽署並實施交易後的某個時候，所有這些都會轉化為收入。就驅動程序而言，在驅動程序方面，核心仍然是我們的王者。我們現在有大量的核心活動，包括銀行和信用合作社，以及與傑克亨利談論交易現有技術的客戶。其中一些肯定是由技術現代化驅動的，但我認為這不是我今天想簽署技術現代化模塊的驅動因素。

It is more about Jack Henry has a strategy that makes sense to us as bank and credit union executives. Their strategy makes sense. We need to look at them now and get to Jack Henry now because we want to be partnered with them as they continue to evolve. And so there's a lot of that that's driving interest in our existing core customers, Silver Lake primarily on the banking side and of course, Symitar on the credit union side. But then on top of that, Banno continues to be a driver, and that's why I call it out on these calls almost every time. There's a tremendous amount of interest in Banno.

更重要的是，傑克·亨利 (Jack Henry) 的戰略對我們這些銀行和信用合作社的高管來說很有意義。他們的策略是有道理的。我們現在需要關注他們，現在就去找 Jack Henry，因為我們希望在他們不斷發展的過程中與他們合作。因此，有很多因素引起了我們現有核心客戶的興趣，Silver Lake 主要是銀行方面的，當然還有信用合作社方面的 Symitar。但最重要的是，Banno 仍然是一名車手，這就是為什麼我幾乎每次都在這些電話中大聲疾呼。人們對 Banno 有著極大的興趣。

Our new Financial Crimes Defender solution that we've talked about on this call, that's rolling out here very soon. We have a lot of customers that are looking at Financial Crimes Defender because it's the first brand new ground up public cloud native fraud solution in the industry in many years and so lots of interest, not only inside our core base but outside the core base in that solution. Our treasury management solution is getting great reviews today. So continued interest in treasury management. Certainly, cards, we talked about the number of customers that we're -- we've been adding to the cards business. So continuing to drive interest there.

我們在本次電話會議上討論過的新 Financial Crimes Defender 解決方案很快就會在這裡推出。我們有很多客戶都在關注 Financial Crimes Defender，因為它是多年來業內第一個全新的公共雲原生欺詐解決方案，因此不僅在我們的核心基地內部而且在核心基地之外都引起了極大的興趣那個解決方案。我們的資金管理解決方案今天獲得好評。因此，我對資金管理產生了持續的興趣。當然，卡片，我們談到了我們的客戶數量——我們一直在增加卡片業務。因此，繼續推動那裡的興趣。

Our online commercial lending solution, a tremendous amount of interest in that. So it's just a broad variety of solutions. I think the common thread in all of that is almost all of those noncore solutions have been written and rolled out within the past 2, 3, 4 years. So it's a new technology that people are interested in. And then, of course, on the core side, you know all about our tech modernization initiative there. And so you put all those things together, much of what's driving this is the recognition in the industry that Jack Henry has put a tremendous amount of investment into brand new technology and new solutions to help our customers solve problems. And so that's what's getting us a lot of attention.

我們的在線商業貸款解決方案引起了極大的興趣。所以這只是各種各樣的解決方案。我認為所有這些的共同點是幾乎所有這些非核心解決方案都是在過去 2、3、4 年內編寫和推出的。所以這是人們感興趣的一項新技術。然後，當然，在核心方面，你知道我們在那裡的技術現代化計劃。所以你把所有這些東西放在一起，推動這一切的主要原因是業界認識到 Jack Henry 投入了大量資金用於全新的技術和新的解決方案，以幫助我們的客戶解決問題。這就是引起我們廣泛關注的原因。

I'd like -- this is Greg. I'd like to add a relevant example. So we actually just got an inbound request from a large regional that hadn't talked to us since 2010 and they came to us and said, "Hey, we'd like to renew conversations based on what we've heard about you and the industry, the tech modernization story and things in general. And that's a relevant example because these are larger institutions that we typically wouldn't have seen in the past that, again, that are inbound to us because of the things that we're doing and the stuff that Dave just described.

我想——這是格雷格。我想添加一個相關的例子。所以我們實際上剛剛收到一個來自一個自 2010 年以來就沒有與我們交談過的大區域的入站請求，他們來找我們說，“嘿，我們想根據我們所聽到的關於你和工業，技術現代化的故事和一般的事情。這是一個相關的例子，因為這些是我們過去通常不會看到的更大的機構，再一次，由於我們正在做的事情，它們對我們有影響以及戴夫剛剛描述的東西。

And what's the asset size of that large regional bank, Greg?

那家大型地區性銀行的資產規模是多少，格雷格？

It's greater than $50 billion. And we are engaged today, Dave, with a number in the mid-$20 billion space. Several banks in the mid-20s are talking to us today. And I think a lot of it is because of what they've seen with tech modernization and -- but they're not talking about moving right to that platform. They're talking about Silver Lake and then evolving to that platform.

它超過500億美元。我們今天訂婚了，戴夫，這個數字在 200 億美元左右。今天有幾家 20 多歲的銀行正在與我們交談。我認為這在很大程度上是因為他們看到了技術現代化，而且——但他們並不是在談論直接轉向該平台。他們正在談論 Silver Lake，然後發展到那個平台。

Understood. And just as a follow-up, what's your latest view on timing of rollout of FedNow Jack Henry's role? And how material could FedNow be to Jack Henry over the next 12-plus months?

明白了。作為後續行動，您對 FedNow Jack Henry 角色推出時間的最新看法是什麼？在接下來的 12 個多月裡，FedNow 對傑克亨利有多大影響？

Yes. This is Greg. I'll take that question as well. So good insightful question. We are absolutely ready. We're already fully certified. And on July 19, when the first transaction takes place, we will be part of that transaction process. We have 20 institutions that will be going live between the July '19 timeframe and sometime in late August based on just rollout with those institutions. We can go as fast as they want to go. We have 51 contracts that are already sold and a significant number of others that are in process just based on interest. I think to your point about significance of where this is in our portfolio, time will tell. A lot of it is going to be based on use cases, and there's a lot of rumors that the Fed in general will be mandating several use cases that will be important for institutions to be set up on the receive now, at least aspect of the equation, allowing them to receive payments if one comes to them.

是的。這是格雷格。我也會回答這個問題。這麼有見地的問題。我們完全準備好了。我們已經完全認證。 7 月 19 日，當第一筆交易發生時，我們將參與該交易過程。我們有 20 家機構將在 19 年 7 月和 8 月下旬的某個時間段之間上線，具體取決於與這些機構的首次合作。我們可以按照他們想走的速度走。我們有 51 份合同已經售出，還有大量其他合同正在處理中，只是基於利息。我認為你關於這在我們投資組合中的重要性的觀點，時間會證明一切。其中很多將基於用例，並且有很多傳言稱美聯儲將強制要求幾個用例，這些用例對於現在在接收端建立的機構來說很重要，至少在某些方面等式，允許他們在有人來找他們時收到付款。

So we are having very detailed conversations with a lot of our institutions about the importance of at least being set up on the receive aspect even if they're not ready to go to the send aspect. But again, we're very bullish on this. The clearinghouse -- there had been some challenges just because some institutions that we work with. We're a little leery of working with the larger conglomerate that owns the clearinghouse versus the Fed being a part of this. So we think we're going to see a little more uptick in the FedNow solution that maybe that we saw so far in the clearinghouse one.

因此，我們正在與我們的許多機構進行非常詳細的對話，討論至少在接收方面進行設置的重要性，即使他們還沒有準備好進入發送方面。但同樣，我們對此非常看好。信息交換所——因為與我們合作的一些機構，所以遇到了一些挑戰。我們對與擁有票據交換所的大型企業集團合作，而不是美聯儲是其中的一部分持謹慎態度。因此，我們認為我們將看到 FedNow 解決方案比我們目前在票據交換所中看到的更多一些。

Just to emphasize, Dave, the level of our development with the Fed on this project. I was just in Washington, D.C. on Monday. So 2 days ago, meeting with some of the Fed presidents and the FedNow team and the President of our Payments division was with me talking strategy, talking rollout, this was a Jack Henry only meeting with these Fed presidents. So we are very engaged with the Fed and very -- it's top of mind for us to make sure that we're helping our customers take advantage of this opportunity.

戴夫，我只是想強調一下我們與美聯儲在這個項目上的發展水平。我星期一剛在華盛頓特區。所以 2 天前，與一些美聯儲主席和 FedNow 團隊以及我們支付部門的總裁會面時，我正在談論戰略，談論推出，這是傑克亨利與這些美聯儲主席的唯一會議。因此，我們與美聯儲密切合作，而且非常——確保我們正在幫助我們的客戶利用這個機會是我們的首要任務。

The next question is from Vasu Govil with KBW.

下一個問題來自 KBW 的 Vasu Govil。

I guess, first one, I know you will share more on your Investor Day, but just thinking about revenue growth next year. So what are some of the puts and takes that we should consider?

我想，第一個，我知道你會在你的投資者日分享更多，但只是考慮明年的收入增長。那麼我們應該考慮哪些 puts 和 takes 呢？

Vasu, I appreciate the question. We're still in the midst of planning. In fact, this afternoon, we'll be spending the whole afternoon with the sales team on their planning for next year. I would say, overall, as Dave mentioned, a continuation of both the transition and implementation from a great pipeline from the last 2 years, plus the continued interest in some of these new products, Banno business wasn't in the year numbers for FY '23 will be in '24. So that's a nice bump as well. But I would say it's going to be a continuation of a diverse portfolio growing very well.

瓦蘇，我很欣賞這個問題。我們仍在計劃之中。事實上，今天下午，我們整個下午都將與銷售團隊一起制定明年的計劃。我想說，總的來說，正如 Dave 提到的那樣，過去 2 年從一個偉大的管道過渡和實施的延續，加上對其中一些新產品的持續興趣，Banno 業務不在 FY 的年度數字中'23 將在 '24。所以這也是一個很好的碰撞。但我會說這將是多元化投資組合增長良好的延續。

That's helpful. And then just a follow-up on the Complementary segment. Clearly, Banno is a big driver there. Maybe, David, you could talk about what are some of the other products that rise to the top in terms of growth drivers? And then as we think about growth in that segment long-term, is mid-single digits sort of the right pace going forward? Or do you see that accelerating?

這很有幫助。然後只是補充部分的後續行動。顯然，Banno 是其中的重要推動者。也許，大衛，你可以談談在增長動力方面排名靠前的其他一些產品是什麼？然後，當我們考慮該細分市場的長期增長時，中等個位數的增長速度是否合適？或者你看到它在加速嗎？

I'm sorry, I missed the last part of your question is what? -- mid-single digits, okay. Sorry. Yes. So as you know, Vasu, the complementary segment is a little bit of a challenging one to talk about because there are so many solutions in there, but I understand your point trying to figure out what are the key drivers -- so there are several. I already highlighted the Financial Crimes Defender solution that we're just now rolling out. So we definitely expect that to be a key driver for us in the coming year. Banno is in that segment, and so Banno will, of course, continue to be a driver as we're rolling out Banno business.

對不起，我漏掉了你問題的最後一部分是什麼？ - 中個位數，好的。對不起。是的。正如你所知，Vasu，討論互補部分有點具有挑戰性，因為那裡有很多解決方案，但我理解你試圖找出關鍵驅動因素的意思——所以有幾個.我已經強調了我們剛剛推出的 Financial Crimes Defender 解決方案。因此，我們絕對希望這將成為我們來年的關鍵驅動力。 Banno 屬於該細分市場，因此 Banno 當然會在我們推出 Banno 業務時繼續成為推動者。

Treasury management, that I called out a little while ago, treasury is in that segment. That will continue to be a driver for us. Most of the fraud solutions that are not specific to payment. So the payments fraud pieces show up in the payment segment, but the other fraud type things, security solutions, for example, those are all in that segment that is always top of mind for our customers. So that continues to be a driver for us as well. So it's just a lot of different things. And then as I mentioned earlier, our online commercial lending solution that has really picked up here in the past several months. We've had that solution in market for probably 4 years now. But in the past few months, it's really picked up as far as the level of engagement with customers and prospects. And so a bunch of different pieces.

資金管理，我剛才提到過，資金屬於那個部分。這將繼續成為我們的驅動力。大多數不針對支付的欺詐解決方案。因此，支付欺詐部分出現在支付領域，但其他欺詐類型的事物，例如安全解決方案，都在我們客戶始終最關心的領域。因此，這也將繼續成為我們的驅動力。所以這只是很多不同的事情。然後正如我之前提到的，我們的在線商業借貸解決方案在過去幾個月裡真正得到了提升。我們已經在市場上推出該解決方案大約 4 年了。但在過去幾個月裡，就與客戶和潛在客戶的互動程度而言，它確實有所回升。所以一堆不同的作品。

And so to the second part of your question about mid-single digits, I think that is a good assumption because with so many solutions in there, you have some that are growing quickly and some that are kind of just steady performers. And so I think that's a good assumption for that segment for the long-term.

因此，對於你關於中位數的問題的第二部分，我認為這是一個很好的假設，因為那裡有這麼多解決方案，你有一些增長迅速，有些只是表現穩定。因此，我認為從長遠來看，這是該細分市場的一個很好的假設。

Great. And just on that online commercial lending solution, sort of any drivers why you think that's gaining more traction now?

偉大的。就在線商業借貸解決方案而言，您認為現在獲得更多關注的任何驅動因素是什麼？

Yes. Well, I think it's because it's an interesting thing when you work with banks. In banks, most bank CEOs grew up in the bank as a commercial lender. That's their background for most of them. Commercial lenders, they're the moneymakers in the bank, right? You can talk all day long about all the consumers and what wonderful relationships you have with your consumers. But what really makes money for a bank is the commercial lending business. And so that's small, medium business customers and then, of course, even larger customers. Commercial lenders tend to have a process that they follow. They're the moneymakers. They're the people who have a process that they follow. They have tended traditionally to be averse to using more technology. And -- but now with so many people, particularly on the backside of the pandemic, so many people not wanting to go to the branch.

是的。嗯，我認為這是因為當你與銀行合作時這是一件有趣的事情。在銀行業，大多數銀行 CEO 都是在銀行中作為商業貸款人成長起來的。這就是他們大多數人的背景。商業貸款人，他們是銀行的賺錢者，對吧？你可以整天談論所有的消費者，以及你與消費者之間的良好關係。但真正為銀行賺錢的是商業貸款業務。所以這是中小型企業客戶，當然還有更大的客戶。商業貸方往往有一個他們遵循的流程。他們是賺錢的人。他們是有流程的人。傳統上，他們傾向於反對使用更多技術。而且——但現在有這麼多人，尤其是在大流行病的背後，很多人不想去分支機構。

They've gotten used to this idea of being able to do everything through some kind of a digital layer. Commercial lenders are getting a lot more comfortable with the idea. I don't say they like it, but they're accepting it they're getting more comfortable with the idea that their customers, small, medium businesses expect to be able to apply for a loan and interact with the bank using a commercial presentation layer. That's exactly what our solution does. It's a complete commercial lending solution that is hosted online where the borrower can do everything they need to do through that presentation and then the lender can interact with them, again, through that technology. So I think it's a result of the backside of the pandemic.

他們已經習慣了這種能夠通過某種數字層來做所有事情的想法。商業貸方對這個想法越來越滿意。我並不是說他們喜歡它，但他們正在接受它，他們越來越接受這樣的想法，即他們的客戶、中小型企業希望能夠申請貸款並使用商業演示與銀行互動層。這正是我們的解決方案所做的。這是一個在線託管的完整商業貸款解決方案，借款人可以通過該演示文稿做他們需要做的一切，然後貸方可以再次通過該技術與他們互動。所以我認為這是大流行病背後的結果。

Customer expectation has changed and lenders are kind of oftentimes grudgingly accepting the fact that their customers want to do things differently, and they're now thinking about how do we adopt different technology to make sure we take care of our customers.

客戶的期望已經改變，貸方常常勉強接受這樣一個事實，即他們的客戶希望以不同的方式做事，他們現在正在考慮我們如何採用不同的技術來確保我們照顧好我們的客戶。

The next question is from Peter Heckmann with D.A. Davidson.

下一個問題來自 D.A. 的 Peter Heckmann。戴維森。

Most of my questions have been answered, but I wanted to follow up on FedNow. I guess is it your impression that with FedNow that the primary use case is going to be enterprise B2B and likely replacing same-day ACH. And related to that, are you aware of any other use cases that might involve the consumer or other sort of niche processes that you think are going to be stronger out of the gates?

我的大部分問題都已得到解答，但我想跟進 FedNow。我猜您是否認為 FedNow 的主要用例將是企業 B2B，並可能取代當日 ACH。與此相關，您是否知道任何其他可能涉及消費者或您認為會變得更強大的利基流程的其他用例？

Yes, Pete, actually, I think that could be one example. I think what we have seen, even with some of the other solutions that are out there that we think will be the primary use case is with the gig workers. The gig workers taking the payments that they're getting and moving them using in (inaudible) the FedNow solution actually is truly real time. The clearinghouse solution still has kind of a batch settlement on the back end. And so the ability -- though they have access to their funds immediately, the process is different. But using the gig workers to move those funds into their FI accounts, we see that today with a lot of the stuff that we have with the clearinghouse and the Fed believes that to be a big one.

是的，皮特，實際上，我認為這可能就是一個例子。我認為我們所看到的，即使有一些我們認為將成為主要用例的其他解決方案，也是針對零工的。零工工人在（聽不清）FedNow 解決方案中使用他們收到的付款並轉移他們實際上是真正實時的。票據交換所解決方案在後端仍然有一種批量結算。因此，能力——儘管他們可以立即獲得資金，但過程是不同的。但是使用零工將這些資金轉移到他們的 FI 賬戶中，我們今天看到我們在票據交換所擁有的很多東西，美聯儲認為這是一個很大的東西。

The other one is having the FI customers, the financial institution customers actually moving money from external wallets into the depository accounts as well. So there's a whole host of use cases that are being built out of those 2 scenarios as well as -- and Dave was just there, there's going to be some -- I don't know if I would call them mandates, but there's going to be some strong requests for things to be done through the FedNow account for stuff like various tax payments and...

另一個是有 FI 客戶，金融機構客戶實際上也將錢從外部錢包轉移到存款賬戶中。因此，有大量的用例是根據這兩個場景構建的，而且——戴夫就在那裡，會有一些——我不知道我是否會稱它們為強制性的，但有強烈要求通過 FedNow 帳戶完成各種納稅和...

One of the things we talked about Monday was VA benefits.

我們週一談論的其中一件事是退伍軍人福利。

Yes. Yes. So there's going to insurance payments, things like that. Things that the treasury and the Fed can control, they're going to be pushing that. So that's why it's important for processors like Jack Henry, who can really kind of help get to that last mile of institutions to get that received now turned on. So regardless of where that payment is being initiated from, it has a place to land.

是的。是的。所以會有保險支付，諸如此類。財政部和美聯儲可以控制的事情，他們將推動它。所以這就是為什麼它對像 Jack Henry 這樣的處理者來說很重要，他可以真正幫助到達最後一英里的機構，讓現在收到的信息被打開。因此，無論從何處發起付款，它都有一個著陸點。

Okay. That's helpful. And then just to clarify, though, again, with that now, it doesn't sound as if there's a lot of applications that are currently either cash-based or card-based that will be replaced with real-time payments. It's primarily some form of ACH or interbank transfers. Is that how you see it?

好的。這很有幫助。然後再次澄清一下，現在，聽起來好像沒有很多應用程序當前基於現金或基於卡的應用程序將被實時支付所取代。它主要是某種形式的 ACH 或銀行間轉賬。你是這樣看的嗎？

No. I do see some reasonableness to some of the card products. There's various things that happen today in the B2B world that where transactions that typically would have gone out paper maybe would have gone out through a virtual card program or things like that where there's interchange. And some of those programs could be disintermediated because of this type of solution. So I think there's going to be some heavy focus on B2B solutions as well because there's so much paper in the process today and other types of card payments may be at a merchant level, where depending on how the merchant is set up, could those transactions to them or from them end up going through that channel as well. So yet to be determined, but I think the card part of this, specifically on merchant side and specifically in B2B payments could have some chances for disintermediation.

不，我確實看到一些卡產品的合理性。今天在 B2B 世界中發生了各種各樣的事情，在這些交易中，通常會以紙質方式進行的交易可能會通過虛擬卡程序或類似的交換方式進行。由於這種解決方案，其中一些程序可能會被取消中介。所以我認為 B2B 解決方案也將受到一些重點關注，因為今天的流程中有太多的紙張，其他類型的卡支付可能在商戶級別，這取決於商戶的設置方式，這些交易是否可以對他們或來自他們的信息最終也會通過該渠道。所以尚未確定，但我認為其中的卡部分，特別是在商家方面，特別是在 B2B 支付中，可能有一些脫媒的機會。

The next question is from Kartik Mehta with Northcoast Research.

下一個問題來自 Northcoast Research 的 Kartik Mehta。

Dave, I know you and I have talked about this a little bit. But one of the things I think that gets misunderstood is how strong your pipeline is and how much visibility you have on revenue. And I'm wondering if you could just talk about -- you've talked about how the pipeline has grown. Just looking at the pipeline and what kind of visibility you have and what kind of confidence that gives you over the next 12 to 18 months?

戴夫，我認識你，我已經談過這個了。但我認為被誤解的一件事是你的渠道有多強大，以及你在收入方面的知名度有多大。我想知道你是否可以談談——你已經談到了管道是如何發展的。看看管道，你有什麼樣的知名度，以及在接下來的 12 到 18 個月裡給你什麼樣的信心？

Yes. Thanks, Kartik. So it's an interesting thing in this -- the business that we're in with the recurring model -- recurring revenue model that we've built. So first off, when it comes to the contracts that we already have signed, we, of course, have a tremendous amount of visibility because we're almost 90% recurring revenue as far as the contracts that we have in-house and the kind of watching the revenue build on those contracts. And then you know that once we sign a customer, oftentimes, depending on the product, it can take 1 month to 12 months, depending on what they purchased from us for that revenue to start layering in. So we see the -- we have visibility into that.

是的。謝謝，卡爾蒂克。因此，這是一件有趣的事情——我們使用經常性模型開展的業務——我們建立的經常性收入模型。因此，首先，當涉及到我們已經簽署的合同時，我們當然有很大的知名度，因為就我們內部的合同和此類合同而言，我們幾乎有 90% 的經常性收入看著收入建立在這些合同上。然後你知道，一旦我們與客戶簽約，通常根據產品的不同，可能需要 1 個月到 12 個月的時間，具體取決於他們從我們這裡購買的產品以獲取收入。所以我們看到 - 我們有可見性。

And then as far as the pipeline is concerned, so when you've been doing this as long as I have, and I've been doing this a long time, we have a very predictable model. So I can -- I'm not going to quote numbers here, but I can tell you with a pretty high degree of accuracy if the pipeline is X, then Y percentage of the pipeline is very likely to close because we have years and years and years of history doing this. And so we know that, that's going to translate into Z dollars of revenue over time. And so we can kind of do that math and predict pretty accurately what the impact is going to be. Now the challenge, again, is some of those solutions, you sign a contract today, and we won't see the first dime practical revenue for 9 to 12 months.

然後就管道而言，所以當你像我一樣長時間這樣做時，而且我已經這樣做了很長時間，我們有一個非常可預測的模型。所以我可以 - 我不打算在這裡引用數字，但我可以非常準確地告訴你，如果管道是 X，那麼 Y 百分比的管道很可能會關閉，因為我們有很多年以及多年的歷史。所以我們知道，隨著時間的推移，這將轉化為 Z 美元的收入。因此，我們可以做一些數學運算，並非常準確地預測會產生什麼影響。現在的挑戰又是其中的一些解決方案，你今天簽了一份合同，我們將在 9 到 12 個月內看不到第一筆實際收入。

Some of them you sign a contract today and you have revenue flowing in, in 1 month. And so there's some art to this, but there is a lot of science to it as well just based on all the experience that we have doing this for as long as we have and understanding the way these contracts work and the way customers make decisions.

他們中的一些人今天簽了合同，1 個月後就有收入流入。因此，這其中有一些藝術，但也有很多科學依據，只要我們擁有這些經驗，並了解這些合同的運作方式和客戶做出決定的方式，我們就一直在做這件事。

Well, sometimes you have to give us to X, Y and Z, Dave.

嗯，有時你必須把我們交給 X、Y 和 Z，Dave。

Not going to happen.

不會發生。

So -- and then just thinking about -- I don't want to call it a banking crisis, just the issues that are out there. And looking at Jack Henry when the last crisis happened and kind of how you looked at the business then and what happened? And if there's any lessons you could take from that and what's happening today? I know they're very different, but just trying to get a feel for maybe what we could clean.

所以——然後想想——我不想稱之為銀行業危機，只是那些已經存在的問題。看看上次危機發生時的傑克亨利，以及你當時如何看待業務以及發生了什麼？如果您可以從中吸取任何教訓，今天發生了什麼？我知道它們非常不同，但只是想了解一下我們可以清潔的東西。

Yes. That's -- it is a very different environment today from 2007, 2008 for sure. And of course, if you go back in time and look at Jack Henry's performance during the period of the -- great Recession, we performed really well even though there were hundreds of banks that were being shut down at that time. And of course, many of them were our customers that were being shut down. So I think the major difference, if you look specifically at Jack Henry between then and now is at that time, we were still very dependent on license fees and maintenance revenue. So when customers kind of pull their arms in and said, we're not spending on anything, our revenue has the potential to drop significantly because we were so dependent on license fees. And when we sell a license, you see the impact in the quarter as opposed to being spread like we do today.

是的。那是——今天的環境肯定與 2007 年、2008 年截然不同。當然，如果你回到過去，看看傑克亨利在大蕭條時期的表現，我們的表現非常好，儘管當時有數百家銀行倒閉。當然，其中許多是我們被關閉的客戶。所以我認為主要的區別是，如果你具體看一下當時和現在之間的傑克亨利，那時候我們仍然非常依賴許可費和維護收入。因此，當客戶伸出雙臂說，我們沒有花任何錢時，我們的收入可能會大幅下降，因為我們太依賴許可費了。當我們出售許可證時，您會看到該季度的影響，而不是像我們今天那樣傳播。

Today, of course, so back then, we were maybe 50%, 60% hosted today were recurring revenue. Today, we're 90% recurring revenue. So very different from a Jack Henry's perspective as far as the predictability of revenue because if a bank is challenged unless they shut down, they don't put spending money with us. They don't decide all of a sudden, we're just going to quit processing loans. You have to still process loans, which means you still have to pay Jack Henry for that service. And so today, I would draw a significant contrast as far as our business and the resilience of our business as bankers are going through what they're going through right now. That does not say we're bulletproof. It doesn't say we're totally immune to any challenges out there. But I think we have a much more resilient model than we had during the -- great Recession at that time.

當然，今天，那時候，我們可能有 50%，今天託管的 60% 是經常性收入。今天，我們有 90% 的經常性收入。就收入的可預測性而言，這與傑克亨利的觀點截然不同，因為如果一家銀行受到挑戰，除非他們關閉，否則他們不會把錢花在我們身上。他們不會突然決定，我們只是要停止處理貸款。您仍然需要處理貸款，這意味著您仍然需要為該服務向 Jack Henry 支付費用。因此，今天，我將就我們的業務和我們業務的彈性形成鮮明對比，因為銀行家正在經歷他們現在正在經歷的事情。這並不是說我們是防彈的。這並不是說我們完全不受任何挑戰的影響。但我認為我們的模型比當時的大衰退期間更有彈性。

And again, if you go back and look at how we performed during that period, we performed pretty well. And so my expectation is that we should be able to weather this storm right now. And of course, much of this storm is the result. I mean these are runs on the banks that are happening, right? So you get some headlines somewhere that says this bank has a liquidity challenge. And by the way, liquidity and capitalization, those have been conflated over and over in these conversations, 2 totally different topics. And yet the run on the banks are happening because wildfire, the spreads like wildfire through social media that there's some challenge to the bank, everybody uses their digital banking solution to withdraw money from the bank and all of a sudden, they're in trouble.

再一次，如果你回頭看看我們在那段時間的表現，我們表現得很好。所以我的期望是我們現在應該能夠度過這場風暴。當然，這場風暴的大部分是結果。我的意思是這些正在發生的銀行擠兌，對嗎？所以你會在某個地方看到一些頭條新聞，說這家銀行面臨流動性挑戰。順便說一句，流動性和資本化，在這些對話中被一遍又一遍地混為一談，這是兩個完全不同的話題。然而銀行擠兌正在發生，因為野火，通過社交媒體像野火一樣蔓延，銀行面臨一些挑戰，每個人都使用他們的數字銀行解決方案從銀行取款，突然之間，他們遇到了麻煩.

And so I just view this as 2 totally different scenarios. But if I look specifically at our company, we are in a much better position to weather the storm than we were even in 2008, and we performed very, really well in 2008.

所以我只是將其視為 2 個完全不同的場景。但如果我具體看一下我們公司，我們甚至比 2008 年更能經受住這場風暴，而且我們在 2008 年的表現非常非常好。

The next question is from John Davis with Raymond James.

下一個問題來自 John Davis 和 Raymond James。

Mimi, I just want to follow up on Dan's question around margins. I think the guide implies about a 250 basis point year-over-year improvement in the fourth quarter. So anything to call out from a timing perspective or what kind of gives you confidence in that ramp in 4Q margins?

咪咪，我只想跟進丹關於利潤率的問題。我認為該指南暗示第四季度同比增長約 250 個基點。那麼，從時間的角度來看，有什麼值得強調的，或者是什麼讓您對第四季度利潤率的上升充滿信心？

Yes. Thanks, Judy. Great question. Yes, I think that 250 is a good estimation. I think we feel good about that. We always knew that it would be a grow as the year continued kind of situation, and we're seeing that transpire. So I feel good with that estimation.

是的。謝謝，朱迪。很好的問題。是的，我認為 250 是一個很好的估計。我認為我們對此感覺良好。我們一直都知道，隨著時間的推移，這種情況會持續增長，我們正在看到這種情況發生。所以我對這個估計感覺很好。

Okay. And then you called out tax payment timing for the free cash flow in the quarter. So how should we think about free cash flow conversion for the full year? Obviously, 4Q is always a huge free cash flow conversion quarter. So just curious, I think you did guys had like mid-80s conversions last year. Just any sort of guide rails for us for the full year.

好的。然後你提出了本季度自由現金流的納稅時間。那麼我們應該如何考慮全年的自由現金流轉換呢？顯然，4Q永遠是一個巨大的自由現金流轉換季度。所以很好奇，我想你們去年確實有過類似 80 年代中期的轉變。全年為我們提供任何類型的導軌。

Yes. Great question. And JD, I love that you're looking at it on an annual basis versus a quarterly just because of the lumpiness of any one quarter can have in this quarter, in particular, between the deconversion and then the larger tax payments and just kind of going into that, we were waiting for some legislative clarity around IRC 174 like a lot of companies that impacted the capitalization, the deductibility of that capitalized labor. Unfortunately, with lack of legislative clarity, we had to make a payment. So you would have normally have seen that kind of maybe spread over a couple of quarters that's a timing thing. It doesn't impact our tax rate that will reverse over several years and kind of normalize.

是的。很好的問題。 JD，我喜歡你按年度而不是按季度來看待它，因為本季度任何一個季度的波動都可能很大，特別是在去轉換和更大的納稅之間以及某種程度上考慮到這一點，我們正在等待 IRC 174 的一些立法明確性，就像許多影響資本化的公司一樣，資本化勞動力的可扣除性。不幸的是，由於缺乏明確的立法，我們不得不付款。所以你通常會看到這種情況可能會分佈在幾個季度內，這是一個時間問題。它不會影響我們的稅率，該稅率將在幾年內逆轉並恢復正常。

So I think that obviously will not be a part of Q4. As you said, we have a large inflow. So you'll certainly see an uptick. I think the reality is because of deconversion revenue, we also have a couple of larger renewals of some third-party expenses in third quarter. I think it will be light of our target of the 100% free cash flow conversion that we target, but I think it will definitely be an uptick from third quarter.

所以我認為這顯然不會成為第四季度的一部分。正如你所說，我們有大量的流入。所以你肯定會看到一個上升。我認為現實是由於收入的減少，我們在第三季度也對一些第三方費用進行了幾次較大的更新。我認為這將符合我們 100% 自由現金流轉換的目標，但我認為這肯定會比第三季度有所上升。

Okay. And then last one for me. Dave, you talked about some of the impacts from all the banking turmoil has been kind of increased in account growth. So maybe how should we think about your business? Like what percentage of revenue ballpark is priced on kind of a per account basis versus transaction or anything else? Just to kind of help us understand what the account growth can mean from a revenue perspective.

好的。然後最後一個給我。戴夫，你談到了所有銀行業動蕩的一些影響在賬戶增長方面有所增加。那麼也許我們應該如何看待您的業務？例如，按帳戶定價與交易或其他任何方式定價的收入百分比是多少？只是為了幫助我們從收入的角度理解賬戶增長意味著什麼。

Boy, I don't know that I know the answer to that question. Anybody -- you want to guess.

男孩，我不知道我知道那個問題的答案。任何人——你想猜。

It's more -- I mean the payment businesses but he's talking about account.

它更多 - 我的意思是支付業務，但他在談論帳戶。

So it's the core business, essentially 25%.

所以這是核心業務，基本上佔 25%。

Okay. We'll go at 25%.

好的。我們將以 25% 的比例進行。

The next question is from Dave Koning with Baird.

下一個問題來自 Dave Koning 和 Baird。

And maybe, I guess, first of all, just on Q4, kind of the implied guide is for somewhere around 6%, I think, kind of non-GAAP revenue growth, which the rest of the course of the year, I think we're kind of 6% to 8.5%. So it's a little slower. What's the reason for the slower in Q4?

也許，我想，首先，就在第四季度，某種隱含的指導是大約 6%，我認為，某種非 GAAP 收入增長，我認為今年剩下的時間裡，我們大概在 6% 到 8.5% 之間。所以它有點慢。 Q4變慢的原因是什麼？

Yes. Dave, I would say, if anything, I think there's a little bit of conservatism in that. I would expect us to maybe be a slightly biased towards the higher side of that range. I think with a little bit of uncertainty still in the consumer sentiment, we just wanted to think about a little bit conservative. But the trends, I feel are still quite strong for the year and in terms of getting us to our full year number or better.

是的。戴夫，我想說，如果有的話，我認為這裡面有一點保守主義。我希望我們可能會稍微偏向該範圍的較高端。我認為消費者情緒仍然存在一些不確定性，我們只是想考慮一下保守一點。但我覺得今年的趨勢仍然非常強勁，並且使我們達到全年或更好的數字。

Okay. Okay. And then I guess on Payrailz, I think year-to-date, you add back the loss from acquisitions to non-GAAP margin, I believe. And I think it's trended like around $10 million year-to-date loss, so probably a little more by the end of the year. Is that all going away in '24? And basically, is that why you can get to accretion in '24? Like, is that just the main -- which just kind of goes away?

好的。好的。然後我想在 Payrailz 上，我認為今年迄今為止，你將收購的損失加回到非 GAAP 利潤率上，我相信。而且我認為它的趨勢是今年迄今為止的損失約為 1000 萬美元，所以到今年年底可能會更多。這一切都在 24 年消失了嗎？基本上，這就是為什麼你可以在 24 年獲得吸積？就像，這只是主要的 - 只是消失了嗎？

So it will not be part of non-GAAP in '24 for sure. So that will be one component. But I also think it's just a question of having let some of those inflationary pressures like the great resignation, the wage inflation we saw some of the third-party onetime costs like [Java] are now in our normalized base rate.

因此，它肯定不會成為 24 年非 GAAP 的一部分。所以這將是一個組成部分。但我也認為這只是一個讓一些通貨膨脹壓力的問題，比如偉大的辭職，我們看到的一些第三方一次性成本（如 [Java]）的工資膨脹現在處於我們的標準化基本利率中。

But he was specifically talking about Payrailz.

但他專門談論 Payrailz。

You were talking about the impact on margin -- so I think we're still set for a margin expansion in '24 because of the base now running through the '23 numbers where it wasn't in the '22 number. So I think we're still in good shape as well as some of the efficiency measures that we're continuing to focus on internally.

你在談論對利潤率的影響——所以我認為我們仍然準備在 24 年擴大利潤率，因為基數現在貫穿 23 年的數字，而不是 22 年的數字。所以我認為我們仍然處於良好狀態，以及我們繼續在內部關注的一些效率措施。

The next question is from James Bassett with Morgan Stanley.

下一個問題來自摩根士丹利的 James Bassett。

I think most of the questions around demand and sales cycle, et cetera, you guys have at least addressed a little bit. I wanted to ask quickly on capital, capital allocation, I think Dan Perlin raised the kind of (inaudible) change in sentiment in the market. And clearly, that impacted your stock at the same time, continue to wonder about M&A. So just any comments on how you're thinking about capital allocation and what looks attractive to you right now and how you prioritize?

我認為大多數關於需求和銷售週期的問題，等等，你們至少已經解決了一點。我想快速詢問有關資本、資本配置的問題，我認為 Dan Perlin 提出了市場情緒的那種（聽不清）變化。很明顯，這同時影響了你的股票，繼續對併購感到疑惑。那麼，關於您如何考慮資本配置、目前對您有吸引力的內容以及您如何確定優先順序的任何評論？

Yes. So nothing has changed there, James, as far as capital allocation is concerned. We're committed to our dividend policy and Mimi emphasized that in her comments. We -- as we've said many times before, M&A is always at the top of our list. We do share buybacks when it makes sense for us and Mimi highlighted that, of course, in her comments as well. But M&A, we are -- I've said many times, we're a solid acquirer. We know how to do integration well of companies once we acquire them. We're very disciplined and only pursuing acquisitions that we think are really going to be additive to our business in the long-term. I think Payrailz is a great example of that. You've seen that it's a little challenged in the short-term. But when we look at what we're doing with that business in the long-term, I think it's going -- I'm absolutely convinced it's going to be a real home run for Jack Henry in the long-term, and that's the way we think about doing M&A.

是的。因此，就資本配置而言，詹姆斯，那裡沒有任何變化。我們致力於我們的股息政策，咪咪在她的評論中強調了這一點。我們 - 正如我們之前多次說過的那樣，併購始終位於我們名單的首位。我們會在對我們有意義的時候進行股票回購，Mimi 當然也在她的評論中強調了這一點。但是併購，我們是——我說過很多次，我們是一個可靠的收購者。一旦我們收購了他們，我們知道如何做好公司的整合。我們非常有紀律，只進行我們認為從長遠來看真正會增加我們業務的收購。我認為 Payrailz 就是一個很好的例子。你已經看到它在短期內有點挑戰。但是，當我們從長遠來看我們在該業務上所做的事情時，我認為它正在 - 我絕對相信從長遠來看，這將成為傑克亨利的真正本壘打，這就是我們考慮進行併購的方式。

We're always looking for those things that we believe we can take advantage of as a long-term solution for our customers to help our customers perform better. Now I was hoping, and I've said this in many forms that by this time and even several months ago that there would be a lot more interesting M&A opportunity for Jack Henry. We have been looking at some companies. We continue to look at some companies to acquire, but there just hasn't been anything that has kind of jumped over that bar for us so far here, even though the deal flow hasn't been particularly strong. We have been looking at some deals, but nothing's jumped over the bar here recently, but we're going to continue to look.

我們一直在尋找那些我們認為可以利用的東西，作為我們客戶的長期解決方案，以幫助我們的客戶表現得更好。現在我希望，而且我已經以多種形式說過，到這個時候，甚至幾個月前，傑克亨利會有更多有趣的併購機會。我們一直在尋找一些公司。我們繼續關註一些要收購的公司，但到目前為止，還沒有任何公司能超越我們的障礙，儘管交易量並不是特別強勁。我們一直在尋找一些交易，但最近這裡沒有任何交易，但我們將繼續尋找。

The only thing I would add to that is -- I mean just to add one more thing, which is consistent with our priorities is paying down the debt through our normal cash flow from operations. And so you would expect to see that over the next several months, years that we're going to continue to decline the debt balance.

我唯一要補充的是——我的意思是再補充一件事，這與我們的優先事項是一致的，那就是通過我們正常的運營現金流來償還債務。因此，您會期望在接下來的幾個月、幾年裡看到我們將繼續減少債務餘額。

Yes. And then Dave, we've seen a lot of headlines around technology layoffs and headcount reductions, et cetera. How is that impacting your ability to go out and hire and add talent to the Jack Henry pool and maybe that -- even out of your customer? Anything you can talk about there?

是的。然後戴夫，我們看到了很多關於技術裁員和裁員等的頭條新聞。這如何影響你走出去，僱傭和增加人才到傑克亨利池的能力，也許 - 甚至是你的客戶？你有什麼可以在那裡談論的嗎？

Yes. So we've -- it's been an interesting time since the great resignation. We went from the Great Resignation where everybody was resigning their jobs and going to find the pot of gold at the end of the rainbow to within about 3 months. All of a sudden, companies were doing these massive layoffs. And so a lot of heads we're spending, I think, among employees and a lot of these companies.

是的。所以我們 - 自偉大的辭職以來一直是一段有趣的時光。我們從 Great Resignation 開始，當時每個人都在辭職，然後在彩虹盡頭找到第一桶金，現在只用了大約 3 個月。突然間，公司開始大規模裁員。因此，我認為我們在員工和許多這些公司中花費了很多頭腦。

So for us here in the recent past, we have picked up some really good new hires, and we've had some wonderful what we refer to here as boomerangs, people who left because they wanted to chase the pot of gold. And then they realized the pot of gold wasn't there, and they called us up and said, and count come back. And those are great additions to us because they already know our company. They know how we do things, and they're oftentimes really talented folks. So we've had a number of boomerangs come back. We are attracting some great talent from some other companies in our space that have been challenged and so they understand the industry. They understand what we do. May not understand the Jack Henry products completely, but we found some really good talent, people that were a little shaken by what's happening at other companies in the industry who are looking for a steady provider and so they've joined Jack Henry.

因此，對於我們來說，最近在這裡，我們招募了一些非常優秀的新員工，並且我們有一些很棒的人，我們在這裡稱之為飛旋鏢，因為他們想要追逐金罐而離開的人。然後他們意識到那罐金子不在那裡，他們打電話給我們說，數數回來。這些對我們來說是很好的補充，因為他們已經了解我們的公司。他們知道我們是如何做事的，而且他們通常都是非常有才華的人。所以我們有很多迴旋鏢回來了。我們正在從我們所在領域的一些其他公司吸引一些優秀的人才，這些公司受到了挑戰，因此他們了解這個行業。他們了解我們的工作。可能不完全了解 Jack Henry 的產品，但我們發現了一些非常優秀的人才，他們對業內其他公司正在尋找穩定供應商的情況感到有些震驚，因此他們加入了 Jack Henry。

So -- but we're not just hiring left and right. We're being very judicious about when we hire and where we hire. And so we're trying to be very selective about who we choose to join the Jack Henry team. But I think the overall message would be we've had some great additions to our team in the last 2, 3, 4 months.

所以 - 但我們不只是左右招聘。我們在招聘時間和招聘地點方面非常審慎。因此，我們正在努力對我們選擇加入傑克亨利團隊的人進行非常有選擇性的選擇。但我認為總體信息是，在過去的 2、3、4 個月裡，我們的團隊增加了一些很棒的成員。

The next question is from Dominick Gabriele with Oppenheimer.

下一個問題來自 Dominick Gabriele 和 Oppenheimer。

Okay. Great. David, I don't know the best way to ask this, so I'm just going to go ahead and ask. I guess you're the sole survivor of the big 4 companies in core platform as far as CEOs go from pre-pandemic. With -- a lot of our clients actually do ask about what is the long-term succession plan if there even should be one. You've had a major contribution to this enterprise. And so I do get questions about if a succession plan ever came, would it be someone inside, outside. How do we think about that not thinking about timing, but what does the succession plan look like in the past for Jack Henry in general for CEO? And I'm not saying you should be.

好的。偉大的。戴維，我不知道問這個問題的最佳方式，所以我要繼續問。我猜你是核心平台四大公司的唯一倖存者，就 CEO 從大流行前的情況來看。隨著 - 我們的很多客戶實際上確實詢問了長期繼任計劃是什麼，如果有的話。你對這個企業做出了重大貢獻。所以我確實有人問我是否有繼任計劃，會是內部人員還是外部人員。我們如何看待這一點，而不是考慮時間，而是過去傑克亨利的首席執行官繼任計劃是什麼樣的？我並不是說你應該這樣做。

That's the most polite way anybody has ever described me as old. You're old, Dave. So what's the plan? -- Dom, it's a reasonable question. Obviously, I can't share specifics about either my timing or succession planning at Jack Henry. But I will tell you -- and of course, I'm also a Board Chair at Jack Henry, and so this is a real focus for us is making sure that we have a solid succession plan in place. As a matter of fact, so next week is our quarterly Board meeting. And in May, the Board meeting in May is when I always review with the Governance Committee my personal succession plan. I also review with the entire Board the succession plans for the entire leadership team. So I'll have all the members of the leadership team with their successors or what the plan is.

這是任何人形容我老了的最禮貌的方式。你老了，戴夫。那麼計劃是什麼？ -- Dom，這是一個合理的問題。顯然，我無法分享有關我在 Jack Henry 的時間安排或繼任計劃的具體細節。但我會告訴你——當然，我也是 Jack Henry 的董事會主席，所以我們真正關注的是確保我們有一個可靠的繼任計劃。事實上，下週就是我們的季度董事會會議。在 5 月的董事會會議上，我總是會與治理委員會一起審查我的個人繼任計劃。我還與整個董事會一起審查整個領導團隊的繼任計劃。所以我會讓領導團隊的所有成員和他們的繼任者或計劃是什麼。

So if it's an internal candidate, I'll highlight that for the Board. If it's a plan to do a search, then we -- I'll highlight that as well. And so all of those options are on the table. What I normally do as I walk into the Governance Committee meeting with some suggestions of internal candidates and also external candidates. I know a lot of people in the industry, and I know people who might be a decent fit for a role like this. And so I try to give the Board a good kind of overview of who potential candidates might be. And then ultimately, of course, it's the Board's decision to hire or fire the CEO. And so -- but we have a very rigorous exercise that we go through around the topic of succession, not just for me but for all members of the leadership team at Jack Henry.

因此，如果是內部候選人，我會向董事會強調這一點。如果這是進行搜索的計劃，那麼我們——我也會強調這一點。所以所有這些選項都擺在桌面上。當我帶著內部候選人和外部候選人的一些建議走進治理委員會會議時，我通常會做什麼。我認識這個行業的很多人，而且我認識一些可能適合擔任這樣的角色的人。因此，我嘗試向董事會提供一個關於潛在候選人的良好概覽。當然，最終由董事會決定聘用或解僱 CEO。因此 - 但我們圍繞繼任主題進行了非常嚴格的練習，不僅對我而且對 Jack Henry 領導團隊的所有成員。

Excellent. Excellent. And maybe, you've mentioned in the prepared remarks a few times about personnel-related costs increasing year-over-year. And this was kind of talked about last question, but not exactly. Is there a way to kind of break up new hires versus wage inflation versus tech talent demand in those growth rates? Or just to kind of parse out largest factor, least important factor as we think about the go-forward growth in expenses for personnel?

出色的。出色的。也許，你在準備好的評論中多次提到與人事相關的成本逐年增加。這是關於最後一個問題的討論，但不完全是。有沒有辦法在這些增長率中分解新員工與工資通脹與技術人才需求之間的關係？或者只是在我們考慮人員支出的前瞻性增長時分析出最大的因素，最不重要的因素？

Yes, it's a good question. I would say the headcount on a count basis has been modest. We're about 3% increase in headcount from a number of positions year-on-year, which is a much lower percentage than obviously the fully baked cost of that. As Dave mentioned, we're being very judicious on where those heads go. We've been focusing on customer-facing roles like service roles as well as R&D roles.

是的，這是個好問題。我想說的是，按人數計算的人數一直很少。我們的一些職位的員工人數同比增加了約 3%，這顯然比完全烘焙的成本要低得多。正如戴夫所提到的，我們對這些負責人的去向非常明智。我們一直專注於面向客戶的角色，如服務角色和研發角色。

And then we look at every role on a zero-based budgeting perspective when we're thinking about that. I can't really give you a lot of breakout in terms of -- because we just don't provide that level of detail in terms of vacancies versus new and rollovers, but I would just say we're being really judicious about it.

然後，當我們考慮這個問題時，我們會從零基預算的角度審視每個角色。我真的不能給你很多突破 - 因為我們只是沒有提供空缺與新的和滾動方面的詳細信息，但我只想說我們對此非常明智。

The final question is from Mark Feldman with William Blair.

最後一個問題來自馬克費爾德曼和威廉布萊爾。

This is Mark on for Chris. So just wanted to ask on Banno. Do you have guys have any information regarding the asset size of the institutions that are -- you're seeing primary uptake from Banno and any interest in it? And I guess additionally, adding on to that, what does Banno for business do for your sales force's ability to close Banno signings that they didn't have before without the offering?

這是克里斯的馬克。所以就想問一下版諾。你們有沒有關於機構資產規模的任何信息——你們看到 Banno 的主要吸收以及對它的任何興趣？而且我想，除此之外，Banno for business 對您的銷售人員關閉 Banno 簽約的能力做了什麼，他們以前沒有提供產品？

Yes. So we have about 700-ish clients that are live today on Banno, and they are all over the board as far as asset size. I'd say that the primary adopters have been a little bit on the larger side. So let's say, averaging closer to $1 billion probably as opposed to something smaller than that. So that's been the primary adoption, but we continue to see great demand across asset sizes. So -- and as I highlighted earlier, most banks and credit unions need to modernize their technology presentation to consumers through or -- and business customers through a digital presentation.

是的。因此，我們今天在 Banno 上有大約 700 名左右的客戶，就資產規模而言，他們遍布各個領域。我想說的是，主要採用者有點偏大。所以比方說，平均可能接近 10 億美元，而不是比這更小的東西。所以這是主要採用，但我們繼續看到各種資產規模的巨大需求。所以——正如我之前強調的那樣，大多數銀行和信用合作社需要通過數字演示來現代化他們向消費者和企業客戶的技術演示。

As far as Banno business, so if you think about traditional Banno, it is designed for the retail consumer, so you or me, and all the functionality is retail in nature. Banno business provides that -- a similar functionality but for business customers. So specifically things like cash management and the ability within the application for the -- let's say, the CFO of the small -- medium business and the CEO to communicate about financial transactions within the application. So it's a really interesting and robust application designed specifically to help a business, manage their business and communicate about financial transactions and decisions within the business but in the financial applications.

就 Banno 業務而言，如果您考慮傳統的 Banno，它是為零售消費者設計的，所以您或我，所有功能本質上都是零售。 Banno business 提供了類似的功能，但針對的是企業客戶。因此，特別是現金管理和應用程序中的能力——比方說，中小型企業的首席財務官和首席執行官就應用程序中的金融交易進行溝通。因此，這是一個非常有趣且強大的應用程序，專門設計用於幫助企業、管理他們的業務以及就企業內部但在財務應用程序中的財務交易和決策進行交流。

So it's a revolutionary new solution, and we have a lot of bankers that are very excited about the rollout of this platform.

所以這是一個革命性的新解決方案，我們有很多銀行家對這個平台的推出感到非常興奮。

Great. And if I can ask just one more. On cards -- with credit cards, I know in the past, you originally didn't have the sales force that can go out and the infrastructure to go out and sell the product. Do you have any update on where that is today and once we can -- when we can start seeing some deals getting signed with credit cards.

偉大的。如果我可以再問一個。關於信用卡——我知道過去我知道信用卡，你最初沒有可以外出銷售的銷售人員和外出銷售產品的基礎設施。你有沒有關於今天的最新情況，一旦我們可以 - 當我們可以開始看到一些交易用信用卡簽署時。

Mark, this is Greg. I can take that one. So yes, we have a dedicated sales force. We also have a dedicated install and operational folks. And now I -- all have the experience. So that is starting to ramp up. We also added -- if you saw a press release we did a couple of months ago on an agent program that we've added. We now have a lot of interest in that agent program. And that's typically for smaller institutions that they themselves don't have the folks or the infrastructure to really support that type of full service credit solution.

馬克，這是格雷格。我可以拿那個。所以是的，我們有一支敬業的銷售隊伍。我們還有專門的安裝和操作人員。現在我——都有經驗了。所以這開始增加。我們還添加了——如果你看到我們幾個月前就我們添加的代理程序發布​​的新聞稿。我們現在對該代理程序很感興趣。這通常適用於較小的機構，它們本身沒有人員或基礎設施來真正支持這種類型的全方位服務信貸解決方案。

So that's given us another angle to sell the credit side of our business. We already have, I think, 2 or 3 now in the pilot phase of that, and we have a pipeline of about 10 or more just in the last 2 to 3 months. So that's starting to grow. But that -- all of those products will continue to accelerate over time.

所以這給了我們另一個角度來出售我們業務的信貸方面。我認為，我們現在已經有 2 或 3 個處於試驗階段，並且在過去 2 到 3 個月中我們有大約 10 個或更多的管道。所以這開始增長。但是，所有這些產品都將隨著時間的推移繼續加速。

This concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

我們的問答環節到此結束。我想將會議轉回管理層聽取任何閉幕詞。

Thank you, Debbie. We have additional upcoming investor engagement opportunities with management at multiple investor events. The first one is going to be our Annual Investor Day, which will be held in Denver on the afternoon of Monday, May 15, at 1:00 p.m. Mountain time. The agenda includes presentations from a wide selection of the Jack Henry management team and a reception that will include demos of some of our newest solutions. We look forward to hosting those -- in person and via the webcast.

謝謝你，黛比。在多個投資者活動中，我們還有更多即將到來的投資者與管理層的接觸機會。第一個將是我們的年度投資者日，將於 5 月 15 日星期一下午 1 點在丹佛舉行。山時間。議程包括來自 Jack Henry 管理團隊的廣泛選擇的演示以及將包括我們一些最新解決方案的演示的招待會。我們期待親自和通過網絡廣播主持這些會議。

We are pleased with the quarterly results and thank all Jack Henry associates for their efforts -- these results. Thank you for joining us today, and Debbie, would you please provide the replay number.

我們對季度業績感到滿意，並感謝所有 Jack Henry 員工的努力——這些業績。感謝您今天加入我們，Debbie，請提供重播號碼。

Yes. The replay number for today's call is (877) 344-7529. And the access code is 1452467. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

是的。今天電話的重播號碼是 (877) 344-7529。接入碼為1452467。會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。