CoreCard Corporation reported a total revenue of $57.4 million for the fiscal year ending December 31, 2024, marking a 2% increase from $56.0 million in 2023. The revenue growth was primarily driven by a 58% increase in product revenue, which rose to $2.8 million from $1.8 million in the previous year. Service revenue, which includes transaction processing and software maintenance, increased slightly to $54.6 million, up from $54.2 million in 2023. The company’s net income also improved, reaching $5.4 million compared to $3.4 million in the prior year, reflecting a net income margin of 9.5%.
The company experienced notable changes in its customer base, with Goldman Sachs Group, Inc. continuing to be a significant contributor, accounting for 62% of total revenues in 2024, down from 67% in 2023. This customer relationship was solidified through an Omnibus Amendment executed on October 23, 2024, which extended the support services term through December 31, 2030, and included provisions for increased fees starting January 2025. However, Goldman’s recent announcement regarding the transition of its General Motors co-branded credit card to a new issuer could impact future revenues, as it may lead to a reduction in active accounts.
Operationally, CoreCard expanded its workforce to approximately 1,000 employees across its international offices in India, Romania, the UAE, and Colombia. The company opened a new office in Bogotá, Colombia, in October 2021 to support its growing customer base. The increase in personnel is aimed at enhancing the company’s ability to onboard new customers and deliver professional services. Despite the growth in employee headcount, the company reported a decrease in cash reserves, with a cash balance of $19.5 million at the end of 2024, down from $26.9 million in 2023.
CoreCard's investment strategy included a $300,000 contribution to a privately held company in the FinTech sector, bringing the carrying value of this investment to $3.5 million. The company also recorded an investment loss of $427,000 in 2024, an improvement from a loss of $1.6 million in 2023. The company’s effective tax rate decreased to 21.1% in 2024 from 24.5% in 2023, attributed to higher income in lower tax jurisdictions.
Looking ahead, CoreCard remains optimistic about its growth trajectory, particularly in its processing services segment, which is expected to continue expanding as the customer base grows. However, the company acknowledged potential challenges, including delays in customer implementations and the impact of regulatory changes on its operations. The management emphasized the importance of maintaining a strong cash position to support both domestic and international operations and to explore acquisition opportunities within the FinTech industry.
About CoreCard Corp
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