CoreCard Corporation (NYSE:CCRD) Q1 2023 Earnings Conference Call May 4, 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
Khadir Richie - Richie Capital Group
Avi Fisher - Long Cast Advisers
Matt White
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 Corporation 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 our filings with the SEC, including our 2022 Form 10-K and subsequent filings.
As we noted in our press release, our strong performance continued in the first quarter of 2023, and we are pleased with our services revenue growth of 25% on a year-over-year basis. The components of our revenue for the first quarter consisted of professional services revenue of $8.3 million, processing and maintenance revenue of $5.4 million and third-party revenue of $1 million. As expected, we did not have any license revenue for the quarter.
Total revenue for the first quarter was $14.8 million, a 39% decrease year-over-year, driven by a decline in license revenue from $12.5 million in Q1 2022 related to the conversion of the General Motors portfolio compared to zero license revenue in the first quarter of 2023, which again was expected.
Services revenue defined as total revenue plus license revenue grew 25% in the quarter on a year-over-year basis. Within services, processing and maintenance revenues grew 34% in the first quarter on a year-over-year basis and professional services revenue grew 27% on a year-over-year basis.
Revenue growth, excluding our largest customer was 23% in the first quarter on a year-over-year basis, excluding revenues from both Goldman and GreenSky and acquisition of Goldman completed in March 2022. We continue to onboard new customers both directly and through the various partnerships we have with program managers such as Deserve, Vervent and Cardless. As in previous quarters, we currently have multiple implementations in progress with new customers we expect to go live in the coming months.