CoreCard Corporation (NYSE:CCRD) Q4 2022 Earnings Conference Call February 16, 2023 11:00 AM ET
Company Participants
Matt White – Chief Financial Officer
Leland Strange – Chairman and Chief Executive Officer
Conference Call Participants
Anja Soderstrom – Sidoti
Hal Goetsch – Loop Capital Markets
Operator
Greetings, and welcome to the CoreCard Fourth Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Matt White, Chief Financial Officer. Thank you, sir. You may begin.
Matt White
Thank you. 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’ll 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 2021 Form 10-K and subsequent filings. We’ll also discuss certain non-GAAP financial measures, including adjusted diluted EPS, which is adjusted for certain items that affect the comparability of our underlying operational performance. These non-GAAP measures are detailed in reconciliation tables included with our earnings release.
As we noted in our press release this morning, our strong performance continued in the fourth quarter of 2022, and we are pleased with our full year revenue growth of 45%. In the fourth quarter, our professional services revenue remained solid. We saw continued growth in processing and maintenance revenue, and we recognized license revenue of $1.8 million.
The components of our revenue for the fourth quarter consisted of professional services revenue of $7.7 million, processing and maintenance revenue of $5.1 million, third-party revenue of $1.3 million, and as already highlighted, license revenue of $1.8 million.
Total revenue for the fourth quarter was $15.8 million, a 21% increase year-over-year. Services revenue defined as total revenue less license revenue, grew 25% in the quarter on a year-over-year basis with full year growth of 27%.
Within services, processing and maintenance grew 33% in the fourth quarter on a year-over-year basis with full year growth of 34%. License revenue for the quarter was flat year-over-year and saw full year growth of 174%. We expect this to be a record year for license revenue, and our focus going forward will be on continued growth in services revenue, with an emphasis on growing our processing business.