Jack Henry & Associates, Inc.

Good morning and welcome to the Jack Henry Fourth Quarter 2024 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Vance Sherrard, Vice President, Investor Relations. Please go ahead.

Thank you, Drew. Good morning, and thank you for joining us for the January 4th quarter and full year 2024 earnings call. Joining me on the call today is President and CEO Greg Adelson and Mimi Cartley, CFO and Treasurer. After my opening remarks, I will turn the call over to Greg for his comments on our fourth quarter results and observations related to our business and the industry. Mimi will then provide commentary around the financial results and fiscal 25 guidance included in the press release issued yesterday that is available from the investor relations section of the Jack Henry website. We will then open the lines for Q&A. As a reminder, this call includes certain forward-looking statements, including remarks, or responses to questions concerning future expectations, events, objectives, strategies, trends, or results. Like any statement about the future, these are subject to multiple factors that can cause actual results or events to differ materially from those which we anticipate due to multiple risks and uncertainties. The company undertakes no obligation to update or revise these statements. For a summary of these risk factors and additional information, please refer to yesterday's press release, and the sections in our 10-K entitled risk factors and forward-looking statements. On this call, we will discuss certain non-GAAP financial measures, including non-GAAP revenue and non-GAAP operating income. The reconciliations for non-GAAP financial measures are in yesterday's press release. I will now turn the call over to Greg.

Thank you, Vance, and hello, everyone. I appreciate all of you joining this morning's call. We are very pleased to report strong sales and financial performance in the fourth quarter and for all of fiscal 2024. I want to especially thank all of our associates for your hard work, dedication, and unwavering commitment that significantly contributed to these outstanding results. I will begin with a summary of what I believe are the three main takeaways and then provide additional detail on all areas of our business. We produced record revenue and operating income for fiscal 24 with $2.2 billion in revenue and $489.4 million in operating income. Our sales team set an all-time record for sales booking for both the fourth quarter and the fiscal year that included 22 competitive core wins in the quarter and 57 for the fiscal year. We signed 15 new core contracts this fiscal year with financial institutions that have over $1 billion in assets compared to only five in fiscal 2023. This was a direct result of our technology modernization strategy and execution, one Jack Henry initiative, and several new innovative solutions. Now for more detail on each of these takeaways. For the fourth quarter, total revenue increased 5 percent and increased 6 percent on a non-GAAP basis. For the fiscal year, total revenue increased 7 percent on a GAAP and non-GAAP basis. Operating income increased 1 percent for the quarter and increased 5% on a non-GAAP basis. For the fiscal year, operating income increased 2% and increased 10% on a non-GAAP basis. As I mentioned, the fourth quarter was the highest quarter for sales bookings in the history of the company, and we set a new record for sales bookings for the fiscal year. I am very proud of the remarkable year by our sales team. The 15 core clients signed with over $1 billion in assets also was a new fiscal year record. Of those clients, 10 are banks and five are credit unions. Over the past four years, we have continued to see an increase in the average asset size of our core clients. Average assets for our bank clients have increased to $1.35 billion, a 27% increase over the past four years. Average assets for our credit union clients have increased to $1.27 billion, a 34% increase over the past four years. In addition to the 22 competitive core takeaways in the quarter, we re-signed one long-term client with about $6 billion in assets that had provided the termination notice to us a little more than two years ago. That client never deconverted to the competing core platform. They've now re-signed with us for multiple years and multiple new solutions. While this contract is not in our new core win numbers, It is noteworthy that they decided their best choice was to stay with Jack Henry for multiple more years. For the quarter, we also signed 15 contracts to move existing in-house core clients to our private cloud environment. We finished fiscal 24 with 44 existing clients agreeing to move to our private cloud. We now host 73% of our core clients in our private cloud. Several of our complementary and payment solutions also experience extremely high demand, with our digital suite leading the way. For the quarter, we signed 45 new clients to our Bano retail platform, as well as 50 new Bano business deals. For the fiscal year, we closed 179 new Bano retail contracts and 164 new Bano business contracts. Bano continues to experience exceptional growth. We currently have 12.2 million registered Bano users as compared to 3.2 million at the same time in 2020. We have 924 Bano retail clients, and of those, 147 are live with Bano Business, and another 81 are in various stages of implementation. We also continue to see increasing success with our card processing solution, signing 21 new card processing clients this quarter and 56 for the fiscal year. We received 16 new financial crimes defender contracts in Q4 and 52 for the fiscal year. In addition, we signed 53 new contracts for the financial crimes defender faster payment fraud module for the quarter and 134 for the fiscal year. This real-time solution is designed to help mitigate fraud in Zelle, FedNow, and real-time payment transactions. As of June 30th, we have 52 financial crime installations completed and another 115 in various stages of implementation. We also have 22 faster payment modules installed and 154 in various stages of implementation. I am asked regularly why I believe we continue to see significantly more new competitive core wins than our competition. While I believe there are many reasons, I've tried to boil it down to three primary themes. First, our associates. We have a happy and engaged workforce, and we believe that leads to having a do-whatever-it-takes attitude with our clients. Our associate engagement scores are well above the industry benchmark, and we consistently win best workplace awards each year. We are pleased to recently receive recognition in three national publications, U.S. News & World's Report's Best Companies to Work For, Time Magazine's Best Midsize Companies, and Newsweek's greatest workplace. Second, our service quality, which is a direct result of our engaged and dedicated associates. We have long been known for providing exceptional customer service, and this year was no exception. In fiscal year 2024, our client satisfaction score when rating the engagement with a client service representative averaged 4.74 per month on a five-point scale. On that scale, a meets expectation is 3.0 and extremely satisfied is 5.0. You have to have a lot of fives to average a 4.74. The third theme is technology innovation. We continue to invest in technology to help our clients remain vibrant financial institutions in the markets they serve. We are executing our technology modernization strategy while bringing new leading edge solutions to the market before our competition. A couple of final items. We are looking forward to our annual client conference, Jack Henry Connect, in October. This is a great opportunity every year for us to meet with prospects, clients, and partners. Last year, 17 of our new core wins were with prospects who attended the conference. As I reflect back on fiscal 2024, I want to again thank Dave Voss for his outstanding leadership as CEO for the past eight years. I am honored and humbled to take over as CEO and excited, along with our entire leadership team, about the opportunities ahead. We are executing on our strategy, and our associate engagement and client satisfaction scores are consistently strong. Technology spending by financial institution remains robust, and there's clear demand for our differentiated and innovative technology as validated by our strong quarter and fiscal year. We are very well positioned for future success. I look forward to seeing and speaking with many of you at our Investor Day in Dallas on September 5th. We have an exciting agenda and we'll have several of our new business leaders available for a meet and greet as well. With that, I will turn it over to Mimi for more specifics on our financials.