CoreCard Corporation (NYSE:CCRD) Q4 2023 Earnings Conference Call February 14, 2024 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, and welcome to the CoreCard Q4 2023 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, CFO. Thank you. Please go ahead.
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'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, uncertainty and other factors that could cause actual results to differ materially from our expectations. Factor that may affect future operations are included in our filings with the SEC, including our 2022 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, our fourth quarter results were in line with our expectations, and with continued year-over-year growth in processing and maintenance revenue. Total revenue for the fourth quarter was $12.2 million, a 23% decrease year-over-year. Services revenue, defined as total revenue excluding license revenue, decreased 13% in the quarter on a year-over-year basis, with full year growth of 1%. The components of our revenue for the fourth quarter consisted of professional services revenue of $6.1 million, processing and maintenance revenue of $5.5 million and third-party revenue of $0.5 million. Processing and maintenance revenues grew 8% in the fourth quarter on a year-over-year basis with full year growth of 18%.
The decline in professional services revenue was driven by lower demand for development personnel from Goldman Sachs, our largest customer. As a reminder, we converted the managed services revenue we received from Goldman, which is included in professional services, to a fixed monthly fee of $1 million, which is contracted through June 30, 2025. Maintenance revenue from Goldman was approximately $2 million in the fourth quarter of 2023, and that is contracted through June 30, 2026.