Call Start: 16:30 January 1, 0000 4:55 PM ET

Usio, Inc. (NASDAQ:USIO)
Q3 2024 Earnings Conference Call
November 06, 2024, 04:30 PM ET

Company Participants

Paul Manley - Senior Vice President, Investor Relations
Greg Carter - Executive Vice President, Payment & Acceptance
Louis Hoch - Chairman, Chief Executive Officer

Conference Call Participants

Scott Buck - H.C. Wainwright
Jon Hickman - Ladenburg

Operator

Hello, and welcome to the Usio Third Quarter Fiscal 2024 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note today's event is being recorded.

Now, I would like to turn the conference over to your host, Paul Manley. Please go ahead, sir.

Paul Manley

Thank you, operator, and thank you, everyone, for joining our call today. Welcome to Usio's Third Quarter Fiscal 2024 Conference Call. The earnings release, which we issued today after the market closed, is available on our website at usio.com under the Investor Relations tab.

On this call today with me are Louis Hoch, our Chairman and CEO; and Greg Carter, Executive Vice President of Payment Acceptance. Michael White, Senior Vice President and Chief Accounting Officer; Jerry Uffner, Head of Card Issuing; and our Chief Product Officer, Houston Frost, will also be available during the question and answer.

Let me remind our listeners that certain statements made during the call today constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities and Litigation Act of 1995 as amended and as more fully discussed in our press release and in our filings with the SEC.

Let me start off with some great highlights from this afternoon's release. Momentum remains strong with results in the third quarter generally in line with expectations and with GAAP earnings significantly better than expected. GAAP earnings this quarter include an income tax benefit as we increased our deferred tax asset, reflecting our projections for higher taxable income.

For the quarter, total payment dollar processing volume growth accelerated to 46% from 24% last quarter, while transactions processed were up an equally impressive 31%. And once again, all of our electronic transaction processing businesses grew with prepaid setting new all-time records for card loads, processing and transaction volumes.

In addition, we have the strongest pipeline of signed deals and the largest backlog of pending implementations in the company's history. While revenue growth was modest, it is important to note that we are replacing nearly $12 million in annualized revenue from the New York City COVID incentive program, which ended earlier this year, with new stable recurring revenue.