Jack Henry & Associates (JKHY) 6 Nov 24 2025 Q1 Earnings call transcript
AInvestWednesday, Nov 6, 2024 9:31 pm ET
2min read
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In a recent earnings call, Jack Henry showcased its financial health and strategic initiatives, providing insights into its current performance and future growth prospects. The company reported solid financial results for the first quarter of fiscal 2025, with a non-GAAP revenue growth of 5.3%, slightly ahead of the anticipated 5.25% in August. Despite facing challenges in the form of slower growth rates for on-premise annual maintenance and card processing, Jack Henry remains confident in its full-year non-GAAP revenue guidance of 7% to 8%.

Strategic Wins and Successful Jack Henry Connect Conference

Jack Henry's strategic efforts were highlighted through its record sales attainment in Q1, which included six competitive core wins. Of these wins, three were from financial institutions with over $1 billion in assets, including a $7 billion asset win. The company also successfully moved six clients from in-house processing to its private cloud, showcasing its ability to adapt to market demands and provide innovative solutions.

The company's Jack Henry Connect conference was another significant highlight, attracting nearly 2,600 clients and prospects. The event produced a significant number of sales leads, with 17 of the new core wins originating from prospects who attended the conference. This success underscores Jack Henry's commitment to delivering cutting-edge technology and exceptional service to its clients.

Innovation and Recognition

Jack Henry's focus on innovation was evident in its inclusion in several national "Best Places to Work" lists, including Newsweek's most loved workplaces and most admired workplaces, both of which reflect the company's people-first culture and commitment to service. IDC's 2024 FinTech rankings also placed Jack Henry 11 based on annual revenue, marking its 16th consecutive year on the list.

Financial Highlights and Guidance

In terms of financials, Jack Henry reported a GAAP and non-GAAP revenue increase of 5%, with a non-GAAP revenue growth of 5.3%. The company's non-GAAP margin saw a contraction of 89 basis points, but it remains optimistic about achieving full-year margin expansion consistent with its guidance. The company's solid performance is underpinned by its strong sales performance, positive client feedback, and strategic investments in technology and innovation.

Future Outlook

Looking ahead, Jack Henry's outlook is positive, with a focus on continued growth and innovation. The company's strategy of modernizing its core banking platform and expanding its complementary services, such as financial crimes defense and faster payment fraud modules, positions it well for future success. Jack Henry's focus on open technology and partnerships, such as its collaboration with Moov for SMB solutions, further underscores its commitment to staying at the forefront of the financial technology landscape.

Conclusion

Jack Henry's first quarter earnings call showcased a company in a strong financial position, with a clear focus on growth and innovation. Its strategic wins, successful conference, and recognition in national workplaces demonstrate its ability to adapt and thrive in a rapidly evolving industry. With a positive outlook for the future, Jack Henry is poised to continue delivering value to its clients and shareholders.

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