Can CCRD sustain its earnings growth into next year?

**CoreCard's (CCRD) prospects for sustaining earnings growth into next year appear promising**, based on several key factors:

1. **Strong Revenue Growth**: CoreCard has demonstrated a significant increase in revenue, with a 22% year-over-year growth in Q4 2024, reaching $14.82 million. This robust growth trajectory indicates a strong market demand for the company's software solutions.

|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|CCRD|CCRD.N|CoreCard|2024 Q1|-65.76433121019109|430000|169|
|CCRD|CCRD.N|CoreCard|2024 Q2|-52.21333333333333|896000|169|
|CCRD|CCRD.N|CoreCard|2024 Q3|1089.1891891891892|2196000|169|
|CCRD|CCRD.N|CoreCard|2024 Q4|296.2962962962963|1926000|169|

|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|CCRD|CCRD.N|CoreCard|2024 Q1|-11.385199240986717|1.3076E7|169|
|CCRD|CCRD.N|CoreCard|2024 Q2|-12.076217180729033|1.3797E7|169|
|CCRD|CCRD.N|CoreCard|2024 Q3|17.195313083065898|1.5703E7|169|
|CCRD|CCRD.N|CoreCard|2024 Q4|21.929752406021223|1.4823E7|169|

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|CCRD|CCRD.N|CoreCard|2024 Q1|-66.66666666666666|0.05|169|
|CCRD|CCRD.N|CoreCard|2024 Q2|-50|0.11|169|
|CCRD|CCRD.N|CoreCard|2024 Q3|1000.0000000000002|0.27|169|

2. **Operational Efficiency and Cost Management**: The company's income from operations improved substantially, growing from $0.4 million in Q4 2023 to $2.1 million in Q4 2024. This suggests effective cost management and operational leverage, which are crucial for sustaining earnings growth.
3. **Strategic Partnerships and New Customer Acquisitions**: CoreCard has been successful in extending key contracts with major clients like Goldman Sachs and has onboarded new customers through strategic partnerships. These partnerships are likely to contribute to future revenue growth as these new customers are integrated and their needs are met with CoreCard's solutions.
4. **Positive Earnings Call Highlights**: The Q4 2024 earnings call highlighted a strong cash position, with over $24 million on the balance sheet, and active share repurchases, reflecting confidence in the stock's value. This financial stability and confidence from management are indicative of a solid foundation for sustaining earnings growth.
5. **Market Trends and Growth Prospects**: The software market is expected to grow significantly due to increasing digitization, evolving technology, and the need for data protection and cybersecurity. CoreCard's focus on software solutions positions it well to capitalize on these trends.
6. **Financial Guidance**: CoreCard has provided guidance for FY2025, expecting revenue growth of 30-40% excluding its largest customer. This guidance suggests a positive outlook from management, which could be a precursor to sustained earnings growth.

In conclusion, CoreCard's strong revenue growth, operational improvements, strategic partnerships, and positive market trends suggest that the company is well-positioned to sustain its earnings growth into next year. However, it is important to monitor the company's dependency on major clients and the potential impacts of market uncertainties on its business.