CoreCard Corporation (NYSE:CCRD) Q2 2023 Earnings Conference Call August 2, 2023 11:00 AM ET
Company Participants
Matt White - Chief Financial Officer
Leland Strange - Chairman & Chief Executive Officer
Conference Call Participants
Hal Goetsch - B. Riley Securities
Operator
Greetings, welcome to CoreCard's Second Quarter 2023 Earnings Conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]. Please note this conference is being recorded.
I will now turn the conference over to Matt White, CFO. Thank you. You may begin.
Matt White
Thank you, and good morning, everyone. With me on the call today is Leland Strange, Chairman and CEO of CoreCard Corporation. He will add some additional comments and answer questions at the conclusion of my prepared remarks.
Before I start, I'd like to remind everyone that during the call, we will be making certain forward-looking statements to help you understand CoreCard and its business environment. These statements involve a number of risk factors, uncertainties, and other factors that could cause actual results to differ materially from our expectations. Factors that may affect future operations are included in filings with the SEC, including our 2022 forum 10-K and subsequent filings.
As we noted in our press release, our second quarter results were in line with our expectations. Our professional services revenue remained strong. We saw sequential and year-over-year growth in processing and maintenance, and as expected, we had license revenue for the quarter of $1.8 million.
Total revenue for the second quarter of 2023 was $15.7 million, a 3% increase compared to the second quarter of 2022. The components of our revenue for the second quarter consisted of license revenue of $1.8 million, professional services revenue of $7.4 million, processing and maintenance revenue of $5.7 million, an increase of 26%, and third-party revenue of $0.9 million.
We did experience a decline in third-party revenues as our customers utilized fewer ancillary services on a year-over-year basis. Customers can perform these services themselves, contracts through third parties, or we can provide these services through our direct contracts with third parties.
Services include items such as customer service, statement printing, card production, network fees, and compliance costs. We would like to reiterate that third-party revenues are lower margin compared to our other revenue streams, and so there is less of an impact at the bottom line.
As noted in our 8-K filing last week, we signed an amendment with Goldman Sachs that, among other things, converts managed services revenue, which is a portion of our professional services revenue, from a time and materials basis, to a fixed monthly fee of $1 million.