Corecard Corporation (CCRD) Announces Fourth Quarter And Full Year 2024 Earnings Results

CoreCard Corporation (CCRD) today announced its financial results for the latest quarter, showcasing a robust performance that exceeded market expectations. The company reported earnings per share of $280, significantly surpassing the estimated $0.09, marking a remarkable beat. Additionally, CoreCard’s revenue reached $14.82 million, outpacing the anticipated $13.4 million by $1.42 million. This strong financial performance underscores CoreCard’s continued growth and operational efficiency.

Key Highlights:

• CoreCard Corporation reported a 22% increase in total revenue for Q4 2024, reaching $14.8 million, driven by unexpected license revenue.
• Full-year 2024 revenue was $57.4 million, a 2% increase from 2023.
• Processing and maintenance revenue grew by 11% year-over-year in Q4 and 7% for the full year.
• Income from operations for Q4 2024 was $2.1 million, up from $0.4 million in Q4 2023.
• Net income for Q4 2024 was $1.9 million, compared to $0.5 million in the same period the previous year.
• Earnings per diluted share for Q4 2024 were $0.24, compared to $0.06 in Q4 2023.
• CoreCard expects Q1 2025 revenue between $14.4 million and $15.0 million, with earnings per share between $0.15 and $0.19.
• Fiscal year 2025 revenue is projected to be between $60 million and $64 million, with earnings per share between $0.88 and $0.94.

Summary:

CoreCard Corporation, a leading provider of credit technology solutions, reported strong financial results for the fourth quarter and full year of 2024. The company achieved a 22% increase in total revenue for Q4, reaching $14.8 million, which exceeded expectations due to unexpected license revenue. The CEO, Leland Strange, highlighted the company’s continued investment in its platform and processing capabilities, which are well-positioned to meet the growing demand for next-generation card management platforms. The company’s processing and maintenance revenue showed significant growth, with an 11% year-over-year increase in Q4 and a 7% increase for the full year.

Looking ahead, CoreCard’s CFO, Matt White, provided guidance for the first quarter and full year of 2025. The company expects Q1 2025 revenue to be between $14.4 million and $15.0 million, with earnings per share ranging from $0.15 to $0.19. For the fiscal year 2025, CoreCard reaffirmed its previous guidance, projecting total revenue between $60 million and $64 million and earnings per share between $0.88 and $0.94. The company anticipates a 30-40% revenue growth for 2025, excluding its largest customer, indicating a strong outlook for the year ahead.

CoreCard Corporation (CCRD) has experienced a remarkable surge in its stock price over the past year, with a staggering increase of 104.40%. This impressive growth is highlighted by a 73.27% rise over the past six months and a 24.65% gain in the last three months, although recent weeks have seen a slight pullback with a 3.42% decline over the past week. Despite this strong price performance, the company’s fundamental metrics paint a more complex picture. The price-to-earnings ratio stands at a lofty 47.16, suggesting that the stock may be overvalued relative to its earnings. Additionally, CoreCard’s earnings per share (EPS) and revenue have both contracted over the past two years, with EPS declining by 43.08% and revenue by 9.61%. However, the company maintains a respectable return on invested capital of 11.47% and a net profit margin of 6.94%, indicating some operational efficiency. These mixed signals suggest that while the market is optimistic about CoreCard’s future prospects, investors should remain cautious and consider the underlying fundamentals.

CoreCard Corporation, together with its subsidiaries, offers technology solutions and processing services to the financial technology and services market in the United States, European Union, and the Middle East. It designs, develops, and markets a suite of software solutions to program managers, accounts receivable businesses, financial institutions, retailers, and processors to manage their credit and debit cards, prepaid cards, private label cards, fleet cards, buy now pay later programs, loyalty programs, and accounts receivable and loan transactions. The company’s software solutions allow companies to offer various types of transacting account or card issuing program, as well as installment and revolving loans; set up and maintain account data; record advances and payments; assess fees, interests, and other charges; resolve disputes and chargebacks; manage collections of accounts receivable; generate reports; and settle transactions with financial institutions and network associations. The company was formerly known as Intelligent Systems Corporation and changed its name to CoreCard Corporation in December 2021. CoreCard Corporation was founded in 1973 and is headquartered in Norcross, Georgia.