Jack Henry & Associates, a financial technology company, has recently released its 10-Q report. The company, headquartered in Monett, Missouri, connects people and financial institutions through technology solutions and payment processing services. It operates through four segments: Core, Payments, Complementary, and Corporate and Other, and provides specialized financial performance, imaging and payments processing, information security and risk management, retail delivery, and online and mobile solutions to financial services organizations and corporate entities.
In the first quarter of fiscal 2025, Jack Henry & Associates reported a 5.2% increase in total revenue compared to the same quarter in fiscal 2024, driven by growth in data processing and hosting, card, and digital revenues, including Banno. Operating expenses increased by 2.5%, primarily due to higher personnel and direct costs, increased internal licenses and fees, and higher amortization. Despite the increase in operating expenses, operating income grew by 14.0% for the first quarter of fiscal 2025.
The company's primary revenue streams are "services and support" and "processing." Services and support revenue increased by 4.2%, driven by double-digit growth in data processing and hosting revenues. Processing revenue also saw a 6.6% increase, primarily driven by growth in card revenue and Jack Henry digital revenue, including Banno.
In terms of operating expenses, cost of revenue increased by 6.3%, research and development expense increased by 7.6%, while selling, general, and administrative expense decreased by 15.5% for the first quarter of fiscal 2025 compared to the same quarter in the prior fiscal year.
The company's net income increased by 17.2% for the first quarter of fiscal 2025, reaching $119,191, or $1.63 per diluted share, compared to $101,679, or $1.39 per diluted share, in the same quarter of fiscal 2024. The effective tax rate for the current fiscal first quarter was 24.0%, compared to 23.7% for the same quarter a year ago.
Jack Henry & Associates operates through four reportable segments: Core, Payments, Complementary, and Corporate and Other. The Core segment's revenue increased by 4.9% for the three months ended September 30, 2024, compared to the same period in the prior fiscal year.
The market has reacted to these announcements by moving the company's shares -0.1% to a price of $179.77. For more information, read the company's full 10-Q submission here.
