What drove CCRD's consistent earnings beats in 2024?

CoreCard Corporation (CCRD) achieved consistent earnings beats in 2024 due to a combination of factors that contributed to its strong financial performance: 1. **Revenue Growth**: CoreCard experienced a 17% year-over-year increase in total revenue for Q3 2024, reaching $15.7 million, surpassing analyst estimates. This growth was driven by higher license revenue, professional services revenue, and processing and maintenance revenues. The company's revenue growth was particularly notable in Q3, with a 17% increase year-over-year, reaching $15.7 million, exceeding analyst estimates. 2. **Processing and Maintenance Revenue**: The processing and maintenance segment showed strong growth, with a 4% increase year-over-year, reaching $6.1 million in Q3 2024. This segment's performance highlights CoreCard's focus on recurring revenue streams and its ability to provide value-added services to customers. 3. **Professional Services Revenue**: CoreCard's professional services revenue also contributed to its revenue growth. Despite a decrease from the largest customer, Goldman Sachs, this segment showed resilience, with revenue surpassing expectations. The company's ability to generate revenue from professional services, alongside processing and maintenance, underscores its diversified revenue model. 4. **Operational Efficiency**: CoreCard's income from operations significantly increased to $2.8 million in Q3 2024, up from $0.4 million in the same period last year. This improvement in operational efficiency is evident in the company's adjusted EBITDA, which reached $3.9 million, more than doubling from $1.9 million in the previous year. 5. **Strategic Partnerships**: CoreCard's renewed agreements with Goldman Sachs, extending through December 2030, provide increased revenue visibility and stability. These partnerships are crucial for CoreCard's growth, as they ensure continued access to a significant customer and mitigate potential risks associated with customer concentration. 6. **New Product Development**: CoreCard's investment in a new platform, Corfinity, is expected to contribute to long-term growth. This new platform likely enhances the company's service offerings, potentially leading to increased customer adoption and revenue growth. In summary, CoreCard's consistent earnings beats in 2024 can be attributed to its strategic revenue diversification, operational efficiency improvements, and successful partnerships. These factors collectively position CoreCard for continued growth and profitability in the financial technology and services market.