Technology
Jack Henry & Associates, Inc. Reports First Quarter Fiscal 2025 Results
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11 hours agoon
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First quarter summary:
GAAP revenue increased 5.2% and GAAP operating income increased 14.0% for the fiscal three months ended September 30, 2024, compared to the prior fiscal year quarter.Non-GAAP adjusted revenue increased 5.3% and non-GAAP adjusted operating income increased 1.6% for the fiscal three months ended September 30, 2024, compared to the prior fiscal year quarter.1GAAP EPS was $1.63 per diluted share for the fiscal three months ended September 30, 2024, compared to $1.39 per diluted share in the prior fiscal year quarter.Cash and cash equivalents were $43 million at September 30, 2024, and $31 million at September 30, 2023.Debt outstanding related to credit facilities was $140 million at September 30, 2024, and $245 million at September 30, 2023.
Full year fiscal 2025 guidance:2
Current
GAAP
Low
High
Revenue
$2,369
$2,391
Operating margin3
23.0 %
23.2 %
EPS
$5.78
$5.87
Non-GAAP4
Adjusted revenue
$2,353
$2,375
Adjusted operating margin
22.7 %
22.8 %
MONETT, Mo., Nov. 5, 2024 /PRNewswire/ — Jack Henry & Associates, Inc. (Nasdaq: JKHY), a leading financial technology provider, today announced results for fiscal first quarter ended September 30, 2024.
According to Greg Adelson, President and CEO, “We are pleased to report another quarter of solid financial performance, which was slightly better than the outlook provided in August for FY Q1. Our sales team maintained positive momentum in the quarter with a new record sales attainment for Q1 and increased our sales pipeline to an all-time high. We had an outstanding Jack Henry Connect conference last month in Phoenix, where we strengthened relationships with clients and prospects and demonstrated our execution over the past year. We are energized and remain focused on our key differentiators: culture, service, and innovation.”
1 See tables below on page 4 reconciling non-GAAP financial measures to GAAP.
2 The full fiscal year guidance assumes no acquisitions or dispositions are made during fiscal year 2025.
3Operating margin is calculated by dividing operating income by revenue.
4 See tables below on page 7 reconciling fiscal year 2025 GAAP to non-GAAP guidance.
5See table below on page 12 reconciling net income to non-GAAP EBITDA.
Operating Results
Revenue, operating expenses, operating income, and net income for the three months ended September 30, 2024, compared to the three months ended September 30, 2023, were as follows:
Revenue
(Unaudited, In Thousands)
Three Months Ended
September 30,
%
Change
2024
2023
Revenue
Services and Support
$ 356,679
$ 342,205
4.2 %
Percentage of Total Revenue
59.3 %
59.9 %
Processing
244,303
229,163
6.6 %
Percentage of Total Revenue
40.7 %
40.1 %
REVENUE
$ 600,982
$ 571,368
5.2 %
Services and support revenue increased for the three months ended September 30, 2024, primarily driven by growth in data processing and hosting revenue of 12.6%, partially offset by a decrease in license and hardware revenue of 35.9%. Processing revenue increased for the three months ended September 30, 2024, primarily driven by growth in card revenue of 5.1% and transaction and digital revenue of 10.9%. Other drivers were increases in payment processing and remote capture and ACH revenues.For the three months ended September 30, 2024, core segment revenue increased 4.9%, payments segment revenue increased 6.3%, complementary segment revenue increased 6.4%, and corporate and other segment revenue decreased 10.2%. For the three months ended September 30, 2024, core segment non-GAAP adjusted revenue increased 5.2%, payments segment non-GAAP adjusted revenue increased 5.9%, complementary segment non-GAAP adjusted revenue increased 7.1%, and corporate and other non-GAAP adjusted segment revenue decreased 10.3% (see revenue lines of segment break-out tables on pages 5 and 6 below for a reconciliation of segment non-GAAP adjusted revenue to GAAP segment revenue).
Operating Expenses and Operating Income
(Unaudited, In Thousands)
Three Months Ended
September 30,
%
Change
2024
2023
Cost of Revenue
$ 343,432
$ 323,002
6.3 %
Percentage of Total Revenue6
57.1 %
56.5 %
Research and Development
39,686
36,892
7.6 %
Percentage of Total Revenue6
6.6 %
6.5 %
Selling, General, and Administrative
66,588
78,774
(15.5) %
Percentage of Total Revenue6
11.1 %
13.8 %
OPERATING EXPENSES
449,706
438,668
2.5 %
OPERATING INCOME
$ 151,276
$ 132,700
14.0 %
Operating Margin6
25.2 %
23.2 %
Cost of revenue increased for the three months ended September 30, 2024, primarily due to higher direct costs generally consistent with increases in the related lines of revenue, higher personnel costs including benefits expenses from an increase in employee headcount in the trailing twelve months, higher internal licenses and fees from increased deployments and prices, and a rise in amortization from capital development projects placed into service in the trailing twelve months.Research and development expense increased for the three months ended September 30, 2024, primarily due to higher personnel costs (net of capitalization) including benefits expenses from an increase in employee headcount in the trailing twelve months.Selling, general, and administrative expense decreased for the three months ended September 30, 2024, primarily due to the decrease in non-recurring costs when compared to the prior fiscal year quarter.
Net Income
(Unaudited, In Thousands,
Except Per Share Data)
Three Months Ended
September 30,
%
Change
2024
2023
Income Before Income Taxes
$ 156,798
$ 133,248
17.7 %
Provision for Income Taxes
37,607
31,569
19.1 %
NET INCOME
$ 119,191
$ 101,679
17.2 %
Diluted earnings per share
$ 1.63
$ 1.39
17.1 %
Effective tax rates for the three months ended September 30, 2024, and 2023, were 24.0% and 23.7%, respectively.
According to Mimi Carsley, CFO and Treasurer, “For the first quarter of the fiscal year, revenue and operating margins were aligned with our plan and expectations and we continue to expect stronger performance in the second half of our fiscal year. Our private cloud revenue grew over 11% and processing services continued to drive strong revenue growth at over 6%, each contributing to our overall revenue expansion of over 5% and operating income increase of 2% on a non-GAAP basis.”
6Operating margin is calculated by dividing operating income by revenue. Operating margin plus operating expense components as a percentage of total revenue may not equal 100% due to rounding.
Impact of Non-GAAP Adjustments
The tables below show our revenue, operating income, and net income for the three months ended September 30, 2024, compared to the three months ended September 30, 2023, excluding the impacts of deconversions and the VEDIP program expense.*
(Unaudited, In Thousands)
Three Months Ended
September 30,
%
Change
2024
2023
GAAP Revenue**
$ 600,982
$ 571,368
5.2 %
Adjustments:
Deconversion revenue
(3,697)
(4,136)
NON-GAAP ADJUSTED REVENUE**
$ 597,285
$ 567,232
5.3 %
GAAP Operating Income
$ 151,276
$ 132,700
14.0 %
Adjustments:
Operating income from deconversions
(3,495)
(3,755)
VEDIP program expense*
—
16,443
NON-GAAP ADJUSTED OPERATING INCOME
$ 147,781
$ 145,388
1.6 %
Non-GAAP Adjusted Operating Margin***
24.7 %
25.6 %
GAAP Net Income
$ 119,191
$ 101,679
17.2 %
Adjustments:
Net income from deconversions
(3,495)
(3,755)
VEDIP program expense*
—
16,443
Tax impact of adjustments****
839
(3,045)
NON-GAAP ADJUSTED NET INCOME
$ 116,535
$ 111,322
4.7 %
*The VEDIP program expense for the fiscal three months ended September 30, 2024, was related to a Company voluntary separation program offered to certain eligible employees beginning in July 2023.
**GAAP revenue is comprised of services and support and processing revenues (see page 2). Reducing services and support revenue by deconversion revenue for the three months ended September 30, 2024, and 2023 which was $3,697 for the current fiscal year quarter and $4,136 for the prior fiscal year quarter, results in non-GAAP adjusted services and support revenue growth of 4.4% quarter over quarter. There were no non-GAAP adjustments to processing revenue for the three months ended September 30, 2024, or 2023.
***Non-GAAP adjusted operating margin is calculated by dividing non-GAAP adjusted operating income by non-GAAP adjusted revenue.
****The tax impact of adjustments is calculated using a tax rate of 24% for the three months ended September 30, 2024, and 2023. The tax rate for non-GAAP adjustment items takes a broad look at our recurring tax adjustments and applies them to non-GAAP revenue that does not have its own specific tax impacts.
The tables below show the segment break-out of revenue and cost of revenue for each period presented, as adjusted for the items above, and include a reconciliation to non-GAAP adjusted operating income presented above.
Three Months Ended September 30, 2024
(Unaudited, In Thousands)
Core
Payments
Complementary
Corporate
and Other
Total
GAAP REVENUE
$ 195,624
$ 211,923
$ 171,702
$ 21,733
$ 600,982
Non-GAAP adjustments*
(1,287)
(1,914)
(473)
(23)
(3,697)
NON-GAAP ADJUSTED REVENUE
194,337
210,009
171,229
21,710
597,285
GAAP COST OF REVENUE
81,420
113,020
65,967
83,025
343,432
Non-GAAP adjustments*
(37)
(18)
(60)
—
(115)
NON-GAAP ADJUSTED COST OF REVENUE
81,383
113,002
65,907
83,025
343,317
GAAP SEGMENT INCOME
$ 114,204
$ 98,903
$ 105,735
$ (61,292)
Segment Income Margin**
58.4 %
46.7 %
61.6 %
(282.0) %
NON-GAAP ADJUSTED SEGMENT INCOME
$ 112,954
$ 97,007
$ 105,322
$ (61,315)
Non-GAAP Adjusted Segment Income Margin**
58.1 %
46.2 %
61.5 %
(282.4) %
Research and Development
39,686
Selling, General, and Administrative
66,588
Non-GAAP adjustments unassigned to a segment***
(87)
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES
449,504
NON-GAAP ADJUSTED OPERATING INCOME
$ 147,781
*Revenue non-GAAP adjustments for all segments were deconversion revenue. Cost of revenue non-GAAP adjustments for all segments were deconversion costs.
**Segment income margin is calculated by dividing segment income by revenue for each segment. Non-GAAP adjusted segment income margin is calculated by dividing non-GAAP adjusted segment income by non-GAAP adjusted revenue for each segment.
***Non-GAAP adjustments unassigned to a segment were selling, general, and administrative deconversion costs.
Three Months Ended September 30, 2023
(Unaudited, In Thousands)
Core
Payments
Complementary
Corporate
and Other
Total
GAAP REVENUE
$ 186,439
$ 199,358
$ 161,366
$ 24,205
$ 571,368
Non-GAAP adjustments*
(1,665)
(1,006)
(1,451)
(14)
(4,136)
NON-GAAP ADJUSTED REVENUE
184,774
198,352
159,915
24,191
567,232
GAAP COST OF REVENUE
75,927
108,826
60,957
77,292
323,002
Non-GAAP adjustments*
(103)
(47)
(119)
(1)
(270)
NON-GAAP ADJUSTED COST OF REVENUE
75,824
108,779
60,838
77,291
322,732
GAAP SEGMENT INCOME
$ 110,512
$ 90,532
$ 100,409
$ (53,087)
Segment Income Margin
59.3 %
45.4 %
62.2 %
(219.3) %
NON-GAAP ADJUSTED SEGMENT INCOME
$ 108,950
$ 89,573
$ 99,077
$ (53,100)
Non-GAAP Adjusted Segment Income Margin
59.0 %
45.2 %
62.0 %
(219.5) %
Research and Development
36,892
Selling, General, and Administrative
78,774
Non-GAAP adjustments unassigned to a segment** ***
(16,554)
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES
421,844
NON-GAAP ADJUSTED OPERATING INCOME
$ 145,388
*Revenue non-GAAP adjustments for all segments were deconversion revenues. Cost of revenue non-GAAP adjustments for all segments were deconversion costs.
**Non-GAAP adjustments unassigned to a segment were selling, general, and administrative deconversion costs of $(111) and VEDIP program expense of $(16,443).
***The VEDIP program expense for the fiscal three months ended September 30, 2023, was related to a Company voluntary separation program offered to certain eligible employees beginning in July 2023.
The table below shows our GAAP to non-GAAP guidance for the fiscal year ending June 30, 2025. Fiscal year 2025 non-GAAP guidance excludes the impacts of deconversion revenue and related operating expenses and assumes no acquisitions or dispositions are made during the fiscal year.
GAAP to Non-GAAP GUIDANCE (In Millions, except per share data)
Annual FY25
Low
High
GAAP REVENUE
$ 2,369
$ 2,391
Growth
6.9 %
7.9 %
Deconversions*
$ 16
$ 16
NON-GAAP ADJUSTED REVENUE**
$ 2,353
$ 2,375
Non-GAAP Adjusted Growth
7.0 %
8.0 %
GAAP OPERATING EXPENSES
$ 1,823
$ 1,836
Growth
5.6 %
6.4 %
Deconversion costs*
$ 3
$ 3
NON-GAAP ADJUSTED OPERATING EXPENSES**
$ 1,820
$ 1,833
Non-GAAP Adjusted Growth
6.7 %
7.4 %
GAAP OPERATING INCOME
$ 546
$ 555
Growth
11.6 %
13.3 %
GAAP OPERATING MARGIN
23.0 %
23.2 %
NON-GAAP ADJUSTED OPERATING INCOME**
$ 533
$ 542
Non-GAAP Adjusted Growth
8.2 %
9.9 %
NON-GAAP ADJUSTED OPERATING MARGIN
22.7 %
22.8 %
GAAP EPS***
$ 5.78
$ 5.87
Growth
10.6 %
12.3 %
Non-GAAP EPS***
$ 5.65
$ 5.74
Growth
7.3 %
9.0 %
*Deconversion revenue and related operating expenses are based on actual results for the three months ended September 30, 2024, and estimates for the remainder of fiscal year 2025, based on the lowest actual recent historical results. See the Company’s Form 8-K filed with the Securities and Exchange Commission on October 28, 2024.
**GAAP to Non-GAAP revenue, operating expenses, and operating income may not foot due to rounding.
***The GAAP to Non-GAAP EPS reconciliation table is below on page 13.
Balance Sheet and Cash Flow Review
Cash and cash equivalents were $43 million at September 30, 2024, and $31 million at September 30, 2023.Trade receivables were $307 million at September 30, 2024, compared to $289 million at September 30, 2023.The Company had $140 million of borrowings at September 30, 2024 compared to $245 million of borrowings at September 30, 2023.Deferred revenue decreased to $320 million at September 30, 2024, compared to $333 million at September 30, 2023.Stockholders’ equity increased to $1,925 million at September 30, 2024, compared to $1,660 million at September 30, 2023.
*See table below for Net Cash Provided by Operating Activities and on page 12 for Return on Average Shareholders’ Equity. Tables reconciling the non-GAAP measures Free Cash Flow and Return on Invested Capital (ROIC) to GAAP measures are also on page 12. See the Use of Non-GAAP Financial Information section below for the definitions of Free Cash Flow and ROIC.
The following table summarizes net cash from operating activities:
(Unaudited, In Thousands)
Three Months Ended September 30,
2024
2023
Net income
$ 119,191
$ 101,679
Depreciation
11,273
12,052
Amortization
39,221
37,183
Change in deferred income taxes
(4,087)
(10,178)
Other non-cash expenses
6,678
7,037
Change in receivables
26,373
72,519
Change in deferred revenue
(69,358)
(66,322)
Change in other assets and liabilities*
(12,395)
3,169
NET CASH FROM OPERATING ACTIVITIES
$ 116,896
$ 157,139
*For the year ended September 30, 2024, includes the change in income taxes of $38,576, the change in accrued expenses of $(23,067), and the change in prepaid expenses, prepaid cost of product and other of $(18,788). For the year ended September 30, 2023, includes the change in income taxes of $39,044, the change in prepaid expenses, prepaid cost of product and other of $(17,356), and the change in accrued expenses of $(17,285).
The following table summarizes net cash from investing activities:
(Unaudited, In Thousands)
Three Months Ended September 30,
2024
2023
Capital expenditures
(12,801)
(7,612)
Proceeds from dispositions
—
852
Purchased software
(2,676)
(2,280)
Computer software developed
(42,259)
(41,486)
Purchase of investments
(2,000)
—
Proceeds from investments
1,000
—
NET CASH FROM INVESTING ACTIVITIES
$ (58,736)
$ (50,526)
The following table summarizes net cash from financing activities:
(Unaudited, In Thousands)
Three Months Ended September 30,
2024
2023
Borrowings on credit facilities
$ 75,000
$ 135,000
Repayments on credit facilities and financing leases
(85,000)
(165,000)
Purchase of treasury stock
—
(20,000)
Dividends paid
(40,104)
(37,863)
Net cash from issuance of stock and tax related to stock-based compensation
(3,128)
474
NET CASH FROM FINANCING ACTIVITIES
$ (53,232)
$ (87,389)
Use of Non-GAAP Financial Information
Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting in the United States. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, we have provided certain non-GAAP financial measures, including adjusted revenue, adjusted operating income, adjusted segment income, adjusted cost of revenue, adjusted operating expenses, adjusted operating margin, adjusted segment income margin, non-GAAP earnings before interest, taxes, depreciation, and amortization (non-GAAP EBITDA), free cash flow, return on invested capital (ROIC), non-GAAP adjusted net income, and non-GAAP earnings per share (EPS).
We believe non-GAAP financial measures help investors better understand the underlying fundamentals and true operations of our business. Adjusted revenue, adjusted operating income, adjusted operating margin, adjusted segment income, adjusted segment income margin, adjusted cost of revenue, adjusted operating expenses, adjusted net income, and non-GAAP EPS eliminate one-time deconversion revenue and associated costs and the effects of the VEDIP program expense, which management believes are not indicative of the Company’s operating performance. Such adjustments give investors further insight into our performance. Non-GAAP EBITDA is defined as net income attributable to the Company before the effect of interest expense, taxes, depreciation, and amortization, adjusted for net income before the effect of interest expense, taxes, depreciation, and amortization attributable to eliminated one-time deconversions and the VEDIP program expense. Free cash flow is defined as net cash from operating activities, less capitalized expenditures, internal use software, and capitalized software, plus proceeds from the sale of assets. ROIC is defined as net income divided by average invested capital, which is the average of beginning and ending long-term debt and stockholders’ equity for a given period. Management believes that non-GAAP EBITDA is an important measure of the Company’s overall operating performance and excludes certain costs and other transactions that management deems one time or non-operational in nature; free cash flow is useful to measure the funds generated in a given period that are available for debt service requirements and strategic capital decisions; and ROIC is a measure of the Company’s allocation efficiency and effectiveness of its invested capital. For these reasons, management also uses these non-GAAP financial measures in its assessment and management of the Company’s performance.
Non-GAAP financial measures used by the Company may not be comparable to similarly titled non-GAAP measures used by other companies. Non-GAAP financial measures have no standardized meaning prescribed by GAAP and therefore, are unlikely to be comparable with calculations of similar measures for other companies.
Any non-GAAP financial measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP measures. Reconciliations of the non-GAAP financial measures to related GAAP measures are included.
Quarterly Conference Call
The Company will hold a conference call on November 6, 2024, at 7:45 a.m. Central Time, and investors are invited to listen at www.jackhenry.com. A webcast replay will be available approximately one hour after the event at ir.jackhenry.com/corporate-events-and-presentations and will remain available for one year.
About Jack Henry & Associates, Inc.®
Jack Henry™ (Nasdaq: JKHY) is a well-rounded financial technology company that strengthens connections between financial institutions and the people and businesses they serve. We are an S&P 500 company that prioritizes openness, collaboration, and user centricity — offering banks and credit unions a vibrant ecosystem of internally developed modern capabilities as well as the ability to integrate with leading fintechs. For more than 48 years, Jack Henry has provided technology solutions to enable clients to innovate faster, strategically differentiate, and successfully compete while serving the evolving needs of their accountholders. We empower approximately 7,500 clients with people-inspired innovation, personal service, and insight-driven solutions that help reduce the barriers to financial health. Additional information is available at www.jackhenry.com.
Statements made in this news release that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Because forward-looking statements relate to the future, they are subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to, those discussed in the Company’s Securities and Exchange Commission filings, including the Company’s most recent reports on Form 10-K and Form 10-Q, particularly under the heading Risk Factors. Any forward-looking statement made in this news release speaks only as of the date of the news release, and the Company expressly disclaims any obligation to publicly update or revise any forward-looking statement, whether because of new information, future events or otherwise.
Condensed Consolidated Statements of Income (Unaudited)
(In Thousands, except per share data)
Three Months Ended
September 30,
%
Change
2024
2023
REVENUE
$ 600,982
$ 571,368
5.2 %
Cost of Revenue
343,432
323,002
6.3 %
Research and Development
39,686
36,892
7.6 %
Selling, General, and Administrative
66,588
78,774
(15.5) %
EXPENSES
449,706
438,668
2.5 %
OPERATING INCOME
151,276
132,700
14.0 %
Interest income
8,347
4,745
75.9 %
Interest expense
(2,825)
(4,197)
(32.7) %
Interest Income (Expense), net
5,522
548
907.7 %
INCOME BEFORE INCOME TAXES
156,798
133,248
17.7 %
Provision for Income Taxes
37,607
31,569
19.1 %
NET INCOME
$ 119,191
$ 101,679
17.2 %
Diluted net income per share
$ 1.63
$ 1.39
Diluted weighted average shares outstanding
73,078
73,014
Consolidated Balance Sheet Highlights (Unaudited)
(In Thousands)
September 30,
%
Change
2024
2023
Cash and cash equivalents
$ 43,212
$ 31,467
37.3 %
Receivables
306,660
288,733
6.2 %
Total assets
2,928,511
2,734,223
7.1 %
Accounts payable and accrued expenses
$ 231,713
$ 208,909
10.9 %
Current and long-term debt
140,000
245,000
(42.9) %
Deferred revenue
319,574
333,407
(4.1) %
Stockholders’ equity
1,925,028
1,659,948
16.0 %
Calculation of Non-GAAP Earnings Before Income Taxes, Depreciation and Amortization (Non-GAAP EBITDA)
Three Months Ended
September 30,
%
Change
(in thousands)
2024
2023
Net income
$ 119,191
$ 101,679
Net interest
(5,522)
(548)
Taxes
37,607
31,569
Depreciation and amortization
50,494
49,235
Less: Net income before interest expense, taxes, depreciation and
amortization attributable to eliminated one-time adjustments*
(3,495)
12,688
NON-GAAP EBITDA
$ 198,275
$ 194,623
1.9 %
*The fiscal first quarter 2025 adjustments for net income before interest expense, taxes, depreciation and amortization were for deconversions. The fiscal first quarter 2024 adjustments were for deconversions and the VEDIP program expense and were $(3,755) and $16,443, respectively.
Calculation of Free Cash Flow (Non-GAAP)
Three Months Ended
September 30,
(in thousands)
2024
2023
Net cash from operating activities
$ 116,896
$ 157,139
Capitalized expenditures
(12,801)
(7,612)
Internal use software
(2,676)
(2,280)
Proceeds from sale of assets
—
852
Capitalized software
(42,259)
(41,486)
FREE CASH FLOW
$ 59,160
$ 106,613
Calculation of the Return on Average Shareholders’ Equity
September 30,
(in thousands)
2024
2023
Net income (trailing four quarters)
$ 399,328
$ 361,776
Average stockholder’s equity (period beginning and ending balances)
1,792,488
1,560,543
RETURN ON AVERAGE SHAREHOLDERS’ EQUITY
22.3 %
23.2 %
Calculation of Return on Invested Capital (ROIC) (Non-GAAP)
September 30,
(in thousands)
2024
2023
Net income (trailing four quarters)
$ 399,328
$ 361,776
Average stockholder’s equity (period beginning and ending balances)
1,792,488
1,560,543
Average current maturities of long-term debt and financing leases
(period beginning and ending balances)
45,000
21
Average long-term debt (period beginning and ending balances)
147,500
245,000
Average invested capital
$ 1,984,988
$ 1,805,564
ROIC
20.1 %
20.0 %
GAAP to Non-GAAP EPS Reconciliation Table
FY25 Guidance
GAAP EPS
$5.78-$5.87
Excluded Activity, net of Tax:
Deconversion*
$0.13
Non-GAAP EPS
$5.65-$5.74
*We are not aware of any other discreet adjustments at this time. Deconversion revenue and related operating expenses are based on actual results for fiscal first quarter 2025 and estimates for the remainder of fiscal year 2025, based on the lowest actual recent historical results. See the Company’s Form 8-K filed with the Securities and Exchange Commission on October 28, 2024.
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SOURCE Jack Henry & Associates, Inc.
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Optimism in ASEAN’s FinTech scene as Singapore and Thailand draw top funding this year.
SINGAPORE, Nov. 6, 2024 /PRNewswire/ — Funding for Financial Technology (FinTech) in ASEAN has surged more than 10 times since 2015[1], growing at an exponential rate compared to global FinTech funding. This fuelled growth in sectors such as payments and alternative lending, and is poised to advance further with the increasing prevalence of Generative Artificial Intelligence (GenAI) and quantum computing. Jointly launched by UOB, PwC Singapore and the Singapore FinTech Association (SFA) today, the roundup edition of FinTech in ASEAN 2024 report: A decade of innovation report recaps the evolution of FinTech in the region from 2015 to 2024.
Weathering through the funding winter in recent years on the back of uncertain macroeconomic climate, FinTech investments in the six biggest ASEAN economies[2] are finally seeing some light at the end of the tunnel. ASEAN FinTech funding totalled US$1.41 billion in the first three quarters of this year (9M24), constituting four per cent of global FinTech funding, a one percentage point growth year-on-year (yoy). Though the region’s total funding was down by less than one per cent yoy, it was a significant recovery from the 71 per cent fall seen in 9M23 against 9M22.
Ms Janet Young, Managing Director and Group Head, Channels & Digitalisation and Strategic Communications & Brand, UOB, said, “FinTechs have evolved from a disruptive force to an essential component of financial ecosystems over the past decade. ASEAN’s FinTech sector continues to show promise, supported by improving macroenvironment and emergence of advanced technologies. UOB has been a long-term supporter of FinTechs and will continue to look for opportunities for collaboration to bring innovation and better solutions to our customers and stakeholders across ASEAN.”
The latest report showed regional FinTechs garnering more than US$20 billion in investments over the last decade, with close to 1,500 deals. FinTechs in payment and alternative lending sectors were the most sought, making up more than half of ASEAN’s total funding at US$6.5 billion and US$4.1 billion respectively.
Ms Wong Wanyi, FinTech Leader, PwC Singapore, said, “ASEAN’s FinTech sector is progressively making waves in global waters, demonstrating resilience and adaptability amidst macroeconomic uncertainties. Despite being in the game with larger economies, ASEAN’s FinTechs have steadily gained long-term investor confidence over the last decade. Going forward, the growing impact of quantum computing and GenAI will continue to push new frontiers in financial services, offering faster, more secure and intelligent solutions. We are at the epicentre of a transformation, where these advancements will not only drive unprecedented growth, but also firmly establish ASEAN as a global FinTech innovation leader.”
Mr Shadab Taiyabi, President, Singapore FinTech Association, said, “It is encouraging to see that ASEAN remains as a vibrant hub for FinTech innovation, with the sector demonstrating resilience and adaptability in the face of ongoing volatility. The FinTech ecosystem in Singapore continues to attract robust funding, driven by strong regulatory support and opportunities for cross-border collaboration. Looking ahead, SFA remains committed to foster the growth of the FinTech ecosystem while creating new opportunities for FinTechs to leverage emerging technologies and strategic partnerships that will further strengthen the ecosystem.”
The next decade of innovation
With the US Federal Reserve (Fed)’s recent interest rate cut in September 2024, the FinTech industry will likely receive a shot in the arm. Lower interest rates typically lead to cheaper funding, greater investor appetite from venture capital and higher valuations, ultimately improving exit opportunities. When Fed last cut interest rates in third quarter 2019 and further slashed it to a historical low during 2020 to 2021, ASEAN’s FinTech funding spiked and peaked at US$6.36 billion in 2021, the region’s highest amount in the past decade.
Beyond better macroeconomic environment, FinTechs worldwide are set to enter a new era catalysed by two advanced technologies – GenAI and quantum computing – which may potentially reshape the financial ecosystem significantly.
In 9M24, global funding injected into the GenAI sector increased by 38 per cent yoy. GenAI can significantly enhance customer experience in the FinTech sector with innovative personalised financial advice and products, improved fraud detection and risk management.
Another promising FinTech sector is quantum computing, which enables financial institutions to develop innovation solutions beyond boundaries of classic computers. It has the potential to revolutionise the FinTech sector in areas such as optimising investment strategies and enhancing security through advanced cryptography algorithms.
Singapore and Thailand lead ASEAN FinTech investments in 2024
Singapore snared the lion’s share of FinTech investments in ASEAN for the 10th consecutive year, securing more than half of the region’s total funding with US$745 million in 9M24. Singapore also topped the number of deals at 62 across nine FinTech categories. The Lion City housed the most FinTech unicorns in ASEAN since 2015, with six out of 16 unicorn firms. Notable FinTech unicorns include Advance Intelligence Group, the parent company of several AI financial service platforms including buy-now-pay-later platform Atome; and NIUM, a cross-border payments firm that has expanded globally and continued to raise a series E funding this year.
Thailand to rose to second place, ahead of last year’s runner up Indonesia, with US$341 million or 24 per cent of ASEAN’s Fintech funding in 9M24, backed by closing two mega deals[3]. Singapore and Thailand accounted for 76 per cent of total FinTech funding and close to 68 per cent of funding deals in ASEAN in 9M24, having clinched the only four mega deals in the region.
Two of the mega deals are seed- and early-stage[4] investments of more than US$240 million, boosting young FinTechs to make up more than 60 per cent of total funding in ASEAN. This reflects investors’ willingness to bet on budding innovation, and ASEAN is still seen as a fertile ground for new FinTechs to thrive with favorable long-term growth prospects, building the region’s growth in FinTech for the past decade.
The FinTech in ASEAN 2024: A decade of innovation report was launched at Singapore FinTech Festival today. For the full report, please visit go.uob.com/fintech2024.
[1] 9M15 vs 9M24
[2] Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam
[3] Funding deals of more than US$100 million. The two mega deals from Thailand are: Payment FinTech firm Ascend Money with US$195 million and financial blockchain firm GuildFi with US$140 million.
[4] Seed investments refer to seed and angel funding; Early-stage investments refer to Series A or B funding.
– Ends –
About UOB
UOB is a leading bank in Asia. Operating through its head office in Singapore and banking subsidiaries in China, Indonesia, Malaysia, Thailand and Vietnam, UOB has a global network of around 500 offices in 19 countries and territories in Asia Pacific, Europe and North America. Since its incorporation in 1935, UOB has grown organically and through a series of strategic acquisitions. Today, UOB is rated among the world’s top banks: Aa1 by Moody’s Investors Service and AA- by both S&P Global Ratings and Fitch Ratings.
For nearly nine decades, UOB has adopted a customer-centric approach to create long-term value by staying relevant through its enterprising spirit and doing right by its customers. UOB is focused on building the future of ASEAN – for the people and businesses within, and connecting with, ASEAN.
The Bank connects businesses to opportunities in the region with its unparalleled regional footprint and leverages data and insights to innovate and create personalised banking experiences and solutions catering to each customer’s unique needs and evolving preferences. UOB is also committed to help businesses forge a sustainable future, by fostering social inclusiveness, creating positive environmental impact and pursuing economic progress. UOB believes in being a responsible financial services provider and is steadfast in its support of art, social development of children and education, doing right by its communities and stakeholders.
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SOURCE UOB
Technology
From Wall Street to Web3: How Triskel is Transforming Financial Access
Published
18 mins agoon
November 6, 2024By
NEW DELHI, Nov. 6, 2024 /PRNewswire/ — In a world where financial systems are showing cracks—from limited access to exclusionary practices—a quiet revolution is brewing. Web3, with its promise of decentralization, offers more than just technological change; it offers a philosophical shift. But with opportunity comes complexity.
The rise of DeFi has unlocked new possibilities, yet many individuals and businesses struggle to navigate this evolving landscape securely and confidently.
Enter Triskel Wallet, a groundbreaking platform redefining financial tools. The Web3 superapp bridges traditional finance and the Web3 ecosystem, offering unprecedented asset control while ensuring security and compliance.
Beyond Traditional Finance
With just a few taps on a smartphone, investors can access prime real estate opportunities across the globe. No paperwork, no brokers, no hassle.
That’s the power of asset tokenization, and it’s just one of the ways Triskel is democratizing finance. As founder, Abel Benitez, explains, “Imagine owning a piece of global real estate without the paperwork, brokers, or middlemen—just a few clicks away on your phone.”
What was once exclusive to institutional investors, high-net-worth families, and patrimonial wealth is now accessible to everyday users. Triskel opens financial opportunities that were previously reserved for the few, democratizing access to investments and wealth-building tools through its innovative platform.
Your Keys Your Kingdom
Redefining Asset Control At its core, Triskel is a non-custodial wallet. This means users retain exclusive control of their private keys, eliminating the need for bank intermediaries. Users maintain complete autonomy over their assets as sole owners of their wealth.
Abel Benitez, the visionary behind Triskel, puts it perfectly: “Finance isn’t just about profit; it’s about freedom—freedom to control, build, and participate in wealth creation without borders or intermediaries.” This freedom to grow wealth and access previously unattainable opportunities defines true financial autonomy.
Security and Innovation Combined
Regarding security, Triskel has implemented robust measures. Advanced security protocols and regulatory compliance allow safe exploration of the DeFi world while keeping both individuals and businesses protected from legal pitfalls. The platform’s hybrid model offers the best of both worlds, enabling seamless management of both crypto and fiat assets.
Triskel emphasizes the importance of a collaborative economy, reflecting its commitment to shared value creation. As part of this effort, the platform has introduced the Real Referral Program (RRP), offering participants up to 50% of revenue. This initiative not only rewards community engagement but also aligns with Triskel’s vision of building an inclusive financial ecosystem where users benefit from collective growth.
The Future of Finance
As the lines between traditional and decentralized finance continue to blur, platforms like Triskel Wallet are leading the way. By offering security, compliance, and user control, Triskel ensures that individuals and businesses can confidently navigate both realms.
“We’re not just building a platform,” Benitez reflects. “We’re building the future. A future where trust, control, and opportunity are in the hands of everyone.”
About Triskel
Triskel Wallet is a decentralized, non-custodial super app that provides users with complete control over crypto assets. The platform bridges the gap between DeFi and traditional finance with USDT-backed Debit card.
Social: https://linktr.ee/triskel_wallet
Photo: https://mma.prnewswire.com/media/2543172/Triskel_Financial_Access.jpg
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SOURCE Triskel
Technology
Volta Energy Solutions Hungary pursues ‘The Copper Mark’ award
Published
18 mins agoon
November 6, 2024By
The “Copper Mark” is the leading assurance framework to promote responsible practices across the copper industry that considers the environmental, social and governance issues, from mining to processing, in the copper industry.CEO Kwak Keun-man said, “We will prove that our sourcing is ethical and fulfill our social responsibilities in accordance with international standards.”
BUDAPEST, Hungary, Nov. 6, 2024 /PRNewswire/ — Volta Energy Solutions Hungary (VESH) announced that it has started the process to obtain The Copper Mark, under their assurance process.
The Copper Mark was established in 2019 and is the leading assurance framework in the copper industry’s to ensure that the environmental, social, and governance (ESG) practices are met. In the assurance process, extensive evaluation is conducted in terms of environmental and human rights protection, regional coexistence, and compliance with ethical management from ore mining to production sales of ore products and others. Therefore, it is considered the “ESG assurance process within the copper industry.”
The London Metal Exchange (LME), the world’s largest metal exchange, recommends that companies involved in the copper industry implement a responsible sourcing policy. The Copper Mark is used as a means of ensuring that this policy is carried out, and companies that have obtained this mark are included in the “LME-Approved Brands” list. As of August 2024, more than 360 brands are registered in more than 55 countries for copper cathode, zinc, nickel, etc.
In Europe, where Volta Energy Solutions currently operates battery copper foil and copper foil plants including Hungary, the stability of the resource supply chain is being enhanced by establishing sustainable supply chains and raising standards to meet environmental and social responsibilities. By obtaining the Copper Mark award, Volta Energy Solutions expects that it will be able to secure an advantageous position as a reliable raw material supplier and continue to build stronger business relationships with many global customers.
Kwak Keun-man, CEO of Volta Energy Solutions, said, “Our pursuit of The Copper Mark award is part of our efforts to meet the strict ESG standards of the international community, including Europe and the United States. We will reinforce ESG management through responsible sourcing policies and grow together with global customers in the long term as a sustainable company.”
In addition to pursuing this The Copper Mark award, Volta Energy Solutions is carrying out various ESG activities to meet international standards.
For example, the company has a supply chain management policy to ensure that its product supply chain does not include conflict minerals linked to armed groups in conflict zones. As a global company with several overseas subsidiaries, Volta Energy Solutions is striving to respect human rights, coexist with local communities, and comply with local laws.
About Volta Energy Solutions
Volta Energy Solutions (VES) is a European subsidiary of Solus Advanced Materials (a South Korea-based company listed on the Korean stock market (KOSPI)). Volta Energy Solutions operates its respective subsidiaries in Hungary and Canada. VES’s history back to 1960, when Circuit Foil Luxembourg (CFL) was established in Luxembourg. CFL was the first company to develop copper foil for electric vehicle batteries in 1996. Solus Advanced Materials acquired CFL in 2014 and entered the copper foil business based on CFL’s technological expertise and knowhow. Since 2014, Solus Advanced Materials has been expanding its business presence, establishing a new footprint in Europe with its battery foil plant in Hungary in 2018. Through this strategic movement, VES was established in Luxembourg to manage and expand its global presence further. With the rapid growth of the North American EV market, Volta Energy Solutions Canada (VESC), located in Quebec, Canada, to expand its business presence in the market. For more information, please visit the VES & CFL website at www.volta-energysolutions.com/ www.circuitfoil.com
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SOURCE Solus Advanced Materials
ASEAN FinTech funding grew more than 10-fold in past decade, GenAI and Quantum Computing to power new era: FinTech in ASEAN 2024 report
From Wall Street to Web3: How Triskel is Transforming Financial Access
Volta Energy Solutions Hungary pursues ‘The Copper Mark’ award
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