CoreCard's Q1 2025 Earnings Call: Contradictions on Intuit Deal, Efficiency, and Growth Forecasts

Intuit Purchase of Deserve and Revenue Implications, Efficiency Ratio Improvement Outlook, Expected Growth Excluding Goldman, and Revenue Run Rate for Goldman are the key contradictions discussed in CoreCard's latest 2025Q1 earnings call. These contradictions could significantly impact investor trust and stock price volatility.



Revenue Growth and Strategic Partnerships:
- CoreCard Corporation reported revenue of $16.7 million for Q1 2025, a 28% increase year-over-year.
- The growth was primarily driven by higher professional services revenue from its largest customer, Goldman Sachs, and strategic partnerships with companies like Verva and Cardless.

Operating Margin and Financial Performance:
- The company's operating margin was 16.8% for Q1 2025, compared to an operating margin of 4% in the same period last year.
- The significant increase in the operating margin was primarily due to higher professional services revenue.

Customer Diversification and Potential Headwinds:
- CoreCard's revenue growth, excluding Goldman Sachs, was 8% in the first quarter, and it is expected to be 30% to 35% for the full year.
- The company is working on onboarding new customers and partnerships to diversify its revenue base, while facing a potential headwind from the sale of one of its customers, Deserve, to Intuit.

Succession Planning and Corporate Strategy:
- CoreCard is actively evaluating opportunities for succession and potential company acquisitions, with the goal of maximizing shareholder value.
- The company is open to both independent operations and potential acquisitions, with the board and management team considering various strategic options.