Q4 2024 Usio Inc Earnings Call
Operator: Hello, and welcome to the UCO's fourth quarter and fiscal year and 2024 earnings conference. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please also note today's event is being recorded.
Hello, and welcome to the <unk> fourth quarter and fiscal year end 'twenty 'twenty four earnings conference call.
All participants will be in a listen only mode.
After todays presentation, there will be an opportunity to ask questions.
Please also note today's event is being recorded.
Paul Manley: Now I'd like to turn the conference call over to your host, Paul Manley, please go ahead. Thank you, operator, and thank you, everyone, for joining our call today. Welcome to UCO's fourth quarter and fiscal year-end 2024 conference call.
Manley: Now I'd like to turn the conference call over to your host well Manley.
well Manley: Please go ahead Sir.
Will Manley: Thank you operator, and thank you everyone for joining our call today welcome to use yours fourth quarter and fiscal year end 2024 conference call.
Paul Manley: 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 with me today are Louis Hoch, our Chairman and CEO, and Greg Carter, Executive Vice President of Payment Acceptance and our newly appointed Chief Revenue Officer.
Will Manley: The earnings release, which we issued today after the market closed is available on our website at <unk> Dot com under the Investor Relations tab.
Speaker Change: On this call with me today are Louis Hoch, our chairman and CEO and Greg Carter Executive Vice President of payment acceptance and our newly appointed Chief revenue Officer, Michael White, Senior Vice President and Chief Accounting Officer, Jerry Oftener head of card issuing and our Chief product Officer, Houston Frost will be available during the.
Paul Manley: Michael White, Senior Vice President and Chief Accounting Officer, Jerry Uffner, Head of Card Issuing, and our Chief Product Officer, Houston Frost, will be available during the question and answer session.
Will Manley: A question and answer session.
Paul Manley: 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 the call today with some highlights from this afternoon's release. As expected, our fourth quarter performance was consistent with our third quarter, excluding interest income inputted to each of our business units. Total revenue was up 3% for the quarter, with throws in each card, ACH, and output solution.
Will Manley: 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 Litigation Act of 1995 as amended.
Will Manley: And as more fully discussed in our press release and in our filings with the SEC.
Will Manley: Let me start off the call today with some highlights from this afternoon's release.
Will Manley: As expected our fourth quarter performance was consistent with our third quarter.
Will Manley: Within interest income input into each of our business units total revenue was up 3% for the quarter with growth in each card E. C. H and output solutions margins were up sequentially from the third quarter primarily attributed.
Paul Manley: Margins were up sequentially from the third quarter, primarily attributed to productivity and efficiency enhancements in both card and output solutions. Expenses were relatively flat and we reported gap net income of $600,000 or $0.02 per share.
Will Manley: Tribute to productivity and efficiency enhancements in both card and output solutions expenses were relatively flat and we reported GAAP net income of $600000 or two cents per share.
Paul Manley: which included a 1.5 million ERC benefit. This was our third consecutive quarter of positive gap net income. All of our electronic transaction processing businesses grew leading to another quarter of record total dollars processed, which exceeded $1.9 billion in the fourth quarter, a 36% increase from a year ago. And for the full year, 2024, total dollars processed were up a very strong 33% to a record $7.1 billion. We also continue to generate positive cash flow, and in 2024, we generated $2.9 million of operating cash flow, including over $900,000 in the fourth quarter. We used some cash to repurchase stock during the year, including nearly $500,000 in the fourth quarter alone, and in the year, we repurchased nearly $1.5 million of stock.
Which included a $1 5 million E. R. C benefit this was our third consecutive quarter of positive GAAP net income all of our.
Will Manley: Electronic transaction processing businesses grew leading to another quarter of record total dollars processed which exceeded $1.9 billion in the fourth quarter, a 36% increase from a year ago.
Will Manley: And for the full year 2024 total dollars processed were up a very strong 33% to a record $7 1 billion.
Will Manley: We also continue to generate positive cash flow and then 2024, we generated $2 $9 million of operating cash flow, including over 900000 in the fourth quarter, we used some cash to repurchase stock during the year, including nearly $500000 in the fourth quarter alone and in the year we re.
Will Manley: Purchased nearly $1.5 million of stock.
Paul Manley: Even with these purchases and a modest year-over-year increase in capital expenditures, our cash position rose to over $8 million at year-end, and we expect cash to increase again this year.
Will Manley: Even with these purchases.
Will Manley: The modest year over year increase in capital expenditures, our cash position rose to over $8 million at year end and we expect cash to increase again this year lose we'll talk more about this and what it means about our confidence in our strategy as well as the new share repurchase authorization. The board approved as we announced.
Paul Manley: Louis will talk more about this and what it means about our confidence in our strategy, as well as the new share repurchase authorization the board approved as we announced today. This was a solid conclusion to a year we aggressively pursued new stable and recurring revenue to replace nearly $12.1 million in annualized revenue, which we lost from our large COVID incentive program, which expired earlier this year. We are also committed to improving profitability through better margins and operating leverage, as well as continuing to fund operations through positive cash flow. All of this progress puts us in a very solid position for 2025.
Will Manley: Today.
Will Manley: This was a solid conclusion to a year, we aggressively pursue new stable and recurring revenue to replace nearly $12 1 million in annualized revenue, which we lost from our large corporate incentive program, which expired earlier this year.
Will Manley: We are also committed to improving profitability through better margins and operation operating leverage as well as continued continuing to fund operations through positive cash flow.
Will Manley: All of this progress puts us in a very solid position for 2025.
Louis Hoch: At this time, I'd like to turn the call over to Louis Hoch. Thank you, Paul, and welcome, everyone. As I reflect on last quarter, I've come to realize that our real story is not only in the current financial results. The real story is in the increasing strength of our organization, the steady improvement in our financial condition, and most importantly, the unique capabilities we have both in terms of innovative technology behind our products and solutions, as well as an organization that is uniquely positioned with a portfolio of diversified electronic payment solutions. Consequently, it should come as no surprise today that I'm happy to announce a new initiative that leverages our competitive strengths to further unlock UCO's full potential and value.
At this time I'd like to turn the call over to Louis Hoak.
Louis Hoak: Thank you Paul and welcome everyone.
Louis Hoak: As I reflect on last quarter.
Louis Hoak: <unk> come to realize that our real story is not only in the current financial results. The real story is in the increasing strength of our organization.
Louis Hoak: The steady improvement in our financial condition.
Louis Hoak: And most importantly, the unique capabilities, we have both in terms of innovative technology behind our products and solutions as well as an organization that is uniquely positioned with a portfolio of diversified electronic payment solutions.
Louis Hoak: Consequently, it should come as no surprise today that I'm happy to announce a new initiative that leverages, our competitive strengths to further unlock <unk> full potential and value.
Louis Hoch: and we call it UCO1. UCO1 will unite and integrate all of our products, services, and resources under one brand. This will enable us to better leverage our innovative technology and extensive capabilities to gain an increasing share of our customers' electronic payment spend. instead of individually selling ACH card or prepaid. We will now be selling Usio as a comprehensive solutions provider that offers a multitude of products and services. to meet a wide range of customers' needs. Our unified brand will make it easier for customers to understand our value proposition and will be supported by a seamless sales support.
Louis Hoak: And we call it U C O one.
Louis Hoak: You see one will.
Louis Hoak: Unite and integrate all of our products services and resources under one brand.
Louis Hoak: This will enable us to better leverage our innovative technology and extensive capabilities to gain an increasing share of our customers' electronic payment spend.
Louis Hoak: Instead of individually selling a C H card or prepaid.
Louis Hoak: We will now be selling UCL as a comprehensive solutions provider that offers a multitude of products and services.
Louis Hoak: To meet a wide range of customers needs.
Louis Hoak: Our unified brand will make it easier for customers to understand our value proposition and will be supported by a seamless sales support.
Louis Hoch: and onboarding process. one UCO brand with one unified IT team, one risk and compliance team, one sales team, one support team, and one marketing team. Already, UCO1 Initiative has developed a new client onboarding system that has a single universal application that can be used across all of our product platforms. This should improve cross-selling success by making it easier for an existing client to add additional UCO products. For instance, although we have many card issuing clients that do funds dispersing, only four of them use UCO for ACH. another UCO-1 initiative.
Louis Hoak: And onboarding process.
Louis Hoak: One year's C O brand with one unified I T team, one risk and compliance team.
Louis Hoak: <unk> sales team one support team and one marketing team.
Louis Hoak: Already you see Oh, one initiative has developed a new client Onboarding system.
Louis Hoak: That has a single universal application that can be used across all of our product platforms.
Louis Hoak: Yes.
Louis Hoak: This should improve cross selling but our success by making it easier for an existing client to add additional UCL products.
Louis Hoak: For instance, although we have many card issuing clients.
Louis Hoak: Debt to fund the disbursing.
Louis Hoak: Only four of them use U C O for a C H.
Louis Hoak: Another use C O one initiative.
Louis Hoch: will shortly launch his. The proprietary checkout page tool, which will enable merchants to upload and send invoices. There are other new initiatives underway to complement and capitalize on UCO1.
Louis Hoak: Well shortly launches.
Louis Hoak: Their proprietary checkout page tool, which will enable merchants to upload and send invoices.
Louis Hoak: There are other new initiatives under way to complement and capitalize when do you see a one.
Louis Hoch: for example. We have consolidated our risk and compliance teams and are adopting AI for processes like fraud protection, improving marketing and sales efficiency, as well as increasing our own efficiency and productivity. As an example, we are using AI-driven analysis as a means to improve merchant conversion rates.
Louis Hoak: For example.
Louis Hoak: We have consolidated our risk and compliance teams and are adopting AI for processes like fraud protection improved.
Louis Hoak: Improving marketing and sales efficiency as well as increasing our own efficiency and productivity.
Louis Hoak: As an example, we are using AI driven analysis as a means to improve merchant conversion rates.
Louis Hoch: In addition, one of my personal goals is to test. a biometrics AI driven application by the end of this year.
Speaker Change: In addition, one of my personal goals is to test.
Speaker Change: Hey, biometrics AI driven application by the end of this year.
Louis Hoch: As one of my first actions implementing this new initiative, I've named Gregory Carter to newly created position of Chief Revenue Officer. All of our sales and marketing resources are now under Greg's direction, and his job will begin as pointed in the same direction. I'm very excited to get this new initiative underway, and I'm even more pleased to have Greg leading it.
Speaker Change: As one of my first actions implementing this new initiative have named Greg Carter to newly created position of Chief revenue Officer, all of our sales and marketing resources are now under greg's direction and his job is to be good.
Speaker Change: Pointed in the same direction.
Speaker Change: I'm very excited to get this new initiative underway and I'm, even more pleased to have Greg, leaving it so.
Gregory Carter: So now I will turn the call over to Greg. Thank you, Louis, and good afternoon, everyone. CARD remains on its growth trajectory, led by PAYFAC. Total CARD processing dollars were up 15%, and transactions processed were up 34% in the quarter, leading to a record full-year processing volume of over $1.5 billion, an increase of 10% from fiscal 2023. Again, CARD remains focused on growing our PAYFAC business, where dollars processed were up 44% in the quarter, leading to another quarter of outstanding PAYFAC growth with revenue up 29%. For the full year, PAYFAC volume was up 28%, so that you can see the acceleration in PAYFAC growth over the course of the year.
Speaker Change: So now.
Greg Carter: I will turn the call over to Greg.
Greg Carter: Thank you Louis and good afternoon, everyone.
Greg Carter: Card remains on its growth trajectory led by payback.
Greg Carter: Total card processing dollars were up 15% and transactions processed were up 34% in the quarter, leading to a record full year processing volume of over $1 $5 billion, an increase of 10% from fiscal 'twenty to 'twenty. Three again card remains focused on growing our payback business where dollars promise.
Greg Carter: US we're up 44% in the quarter, leading to another quarter of outstanding payback growth with revenue up 29% for.
Greg Carter: For the full year APAC volume was up 28%. So that you can see the acceleration in Paypal growth over the course of the year as cards growth engine payback now accounts for approximately 54% of total card activity.
Gregory Carter: As CARD's growth engine, PAYFAC now accounts for approximately 54% of total CARD activity. Our success continues to reflect our growing scale economies, as the increase in new ISV programs naturally leads to more new implementations. We are enjoying success signing new ISV agreements, and this has benefited from our new marketing initiatives, especially digital. The steady flow of new accounts has enabled us to greatly offset the variability in our performance previously resulting from the timing of implementations. Now, even if some ISVs delay implementation, there are sufficient deals in hand so we are always undertaking new implementations, a great path to rapid growth.
Greg Carter: Our success continues to reflect our growing scale economies.
Greg Carter: As the increase the new ISP programs naturally leads to more new implementations.
Greg Carter: We are enjoying success, signing new ISP agreements and this has benefited from our new marketing initiatives, especially digital.
Greg Carter: The steady flow of new accounts has enabled us to greatly offset the variability in our performance previously resulting from the timing of implementations.
Greg Carter: Now even if some Isps delay implementation there are sufficient deals in hand, that's the we're always undertaking new implementations a great path to rapid growth.
Gregory Carter: So, for instance, as of today, we have 15 new ISVs that are in various stages of implementation, which is consistent from this time a year ago. This year has been an all-time high, so I can safely say CARD will grow nicely again in 2025. Practice Suite, which I have mentioned before, as well as another ISV that caters to associations and is strong in the legal vertical, are two clients where we have developed strong relationships that are helping power growth. These are prime examples of how Usio can land and expand as these ISVs are now adding our ACH capability as another payment option for their merchants.
Greg Carter: For example for instance, as of today, we have 15, new Isps that are in various stages of implementation, which is consistent from this time a year ago.
Greg Carter: This year has been an all time high so I can safely say card will grow nicely again in 2025.
Greg Carter: Practice suite, which I had mentioned before as well as another ISP that caters to associations and is strong in our legal vertical are two clients, where we have developed strong relationships that are helping power growth.
Greg Carter: These are prime examples of how used you can land and expand as these Isps are now, adding our hgh capability as another payment option for their merchants.
Gregory Carter: Our second growth engine, the boarding of the ISV merchants, is also benefiting from increased scale.
Greg Carter: Our second growth engine the boarding of the ISP merchants is also benefiting from increased scale.
Gregory Carter: Before concluding my remarks, I want to thank Louis for his confidence in appointing me as USIO's Chief Revenue Officer.
Speaker Change: Before concluding my remarks, I want to thank Louis for his confidence in appointing me as <unk> Chief revenue Officer.
Gregory Carter: I just recently attended a conference where I met with some of our clients that were using one of our solutions.
Speaker Change: Just recently attended a conference where I met with some of our clients that were using one of our solution.
Gregory Carter: I was somewhat surprised to learn they were not familiar with our other capabilities. Now with UCO1, as we speak with a single collective voice and work as one cohesive unit, there is tremendous opportunity to better leverage our various capabilities, both on the front and the back end.
Speaker Change: Somewhat surprised to learn that we're not familiar with our other capabilities now with UCL, one as we speak with a single collective voice and work as one cohesive unit there is tremendous opportunity to better leverage our various capabilities both on the front and the back end.
Gregory Carter: I think we can all also hold ourselves to a higher standard. As I've said many times, UCO is the industry's best kept secret. I'm excited to continue to build on this very solid foundation and to lead the UCO-1 sales and business development efforts to accelerate growth.
Speaker Change: We can also hold ourselves to a higher standard.
Speaker Change: As I've said many times you see is the industry's best kept secret.
Louis Hoak: I'm excited to continue to build on this very solid foundation and to lead the UCL, one sales and business development efforts to accelerate growth now I'd like to turn the call back to Louis.
Louis Hoch: Now, I'd like to turn the call back to Louis. Thanks, Greg.
Louis Hoak: Thanks, Greg now.
Louis Hoch: Now that Paul and Greg have done a good job in reviewing many of the high-level results for the quarter, let me just add a few additional thoughts. ACH and complementary services are now in full growth mode. and has quickly returned to being one of our best performing products. for the three months ending December 31st. 2024, ACH, Electronic Transactions, Volumes. We're up 34%. It's fifth consecutive quarter of growth, while return checks transactions process was up 27%. and electronic check dollars process was up 44%. And for the year, electronic check transaction volume was up 18%, while return check transaction process was up 17%.
Louis Hoak: Now that Paul and Greg have done a good job in reviewing many of the high level results for the quarter.
Louis Hoak: Let me just add a few additional thoughts.
Louis Hoak: A T H and complementary services are now in full growth mode.
Louis Hoak: And has quickly returned to being one of our best performing products.
Louis Hoak: For the three months ending December 31st.
Louis Hoak: 2020 for a C H electronic transactions volumes.
Louis Hoak: We're up 34%.
Louis Hoak: Its fifth consecutive quarter of growth, while return checks transactions processed was up 27% and.
Louis Hoak: And electronic check dollars process was up 44%.
Louis Hoak: And for the year electronic Trek transaction volume was up 18%, while return check transactions processed was up 17%.
Louis Hoch: and the electronic check dollars processed was up 42%. Clearly, you can see how growth accelerated in the fourth quarter. As I mentioned last quarter, ACH has been one of the first beneficiaries of our integrated sales and marketing approach. with increased transactions volumes from cross-selling adding to our growth rate in the quarter.
Louis Hoak: And the electronic check dollars processed was up 42%.
Louis Hoak: Clearly you can see how growth accelerated in the fourth quarter.
Louis Hoak: As I mentioned last quarter ACTH has been.
Louis Hoak: One of the first beneficiaries for of our integrated sales and marketing approach with increased transactions Bartlett volumes from cross selling adding to our growth rate in the quarter.
Louis Hoch: Our goal is to achieve the same kind of synergy across the entire organization from the implementation of the UCO-1.
Louis Hoak: Our goal is to achieve the same kind of synergy across the entire organization from the implementation of the U C O one.
Louis Hoch: Output Solutions followed up its rebound in third quarter. with even stronger growth. The electronic documents processed were up 86%, while total pieces mailed exceeded 5.4 million. Electronic-only documents delivered exceeded 20 million in the quarter. Consequently, Output had a record year with electronic documents processed and delivered more than doubling while electronic only documents processed and delivered. exceeded 80 million.
Louis Hoak: Output solutions, but followed up its rebound in the third quarter.
Louis Hoak: With even stronger growth.
Louis Hoak: The electronic documents processed were up 86% while total pieces.
Louis Hoak: Mailed exceeded $5 4 million.
Louis Hoak: Electronic only documents delivered exceeded 20 million in the quarter.
Louis Hoak: Consequently output had a record year with electronic documents process and delivered more than doubling while electronic only documents.
Louis Hoak: Process and delivered.
Louis Hoak: Exceeded $80 million.
Louis Hoch: This is. This increasing proportion of electronic documents processing and delivery is an important driver as electronic documents are more profitable than print and mail. So not only does Output continue to add more of its bread and butter utility, financial institutions, and governmental entities, clients to its roster, adding to its growing base of reoccurring revenues, they're also simultaneously increasing the amount of electronic document delivery clients. At the same time, last year, investing in new equipment has enabled output to grow revenues while concurrently reducing cost. This combination of higher margin revenue and reduced costs is showing up in significant profit improvement.
Louis Hoak: This is.
Louis Hoak: This increasing proportion of electronic documents processing and delivery is an important driver as electronic documents are more profitable than print and mail.
Louis Hoak: So not only does output continue to add more of its bread and butter utility.
Louis Hoak: Financial institutions, a governmental entities clients to its roster adding.
Louis Hoak: Adding to its <unk>.
Louis Hoak: Growing base of reoccurring revenues.
Louis Hoak: They're also simultaneously increasing the amount of our electronic document delivery clients at the same time last year investing in new equipment has enabled output to grow revenues, while concurrently reducing costs.
Louis Hoak: This combination of higher margin revenue and reduce costs is showing up and significant profit improvement.
Louis Hoch: Card issuing made tremendous progress in 2024, backfilling much of the roughly 12.1 million one-time revenue recognized in 2023. from the Expired COVID Incentive Program. Card issuing added nearly 70 new client partner agreements with a focus on longer duration clients so that there is now more volume arising from reoccurring revenue. Many of our larger client partners are implementing general purpose reloadable gift health care and funds distribution programs. In addition, we implemented over 75 new card programs in 2024. Consequently, for the sixth consecutive quarter, prepaid dollars loaded in the quarter were over 100 million with transactions processed up 36% and purchase volume up 7%.
Louis Hoak: Card issuing made tremendous progress in 2020 for back filling much of the roughly a $12 1 million.
Louis Hoak: One time revenue recognized in 2023.
Louis Hoak: From the expired COVID-19 incentive programs.
Louis Hoak: Card issuing added nearly 70, new client partner agreements with a focus on longer duration clients. So that there is now more volume arising from reoccurring revenue.
Louis Hoak: Many of our larger client partners are implementing a general purpose reloadable gift health care and funds distribution programs.
Louis Hoak: In addition, we implemented over 75, new card programs in 2024.
Louis Hoak: Consequently.
Louis Hoak: <unk> for the six consecutive quarter prepaid dollars loaded.
Louis Hoak: In the quarter were up over 100 million with transactions processed up 36% and purchase volume up 7% with a strong finish prepaid card load volume was up 35% for the year and transaction volume was up 45%.
Louis Hoch: With a strong finish, prepaid card load volume was up 35% for the year and transaction volume was up 45% and purchase volume was up 26%. Both total dollars loaded and purchase volume were all-time yearly records. And through a number of new initiatives, card issuings margins continue to improve.
Louis Hoak: And purchase volume was up 26%.
Louis Hoak: Both total dollars loaded and purchase volume.
Louis Hoak: Our all time yearly records.
Louis Hoak: And through a number of new initiatives card issuing as margins continue to improve.
Louis Hoch: Before concluding today's remarks, I'm pleased to announce that the Board of Directors of Usio has approved a new share repurchase program. adding another $4 million to the original authorization and allowing the company to purchase shares in the open market, private transactions, and through other avenues. We made significant progress in 2024, and we believe it will lead to further growth in 2025. with organic revenue expected to increase 14 to 16 percent with steady improvement in our bottom line and financial position.
Before concluding today's remarks, I am pleased to announce that the board of directors abuse C. O has approved a new share repurchase program.
Louis Hoak: Adding another 4 million to the original authorization and allowing the company to purchase shares in the open market private transactions and through other avenues.
Louis Hoak: We've made significant progress in 2024 and.
Louis Hoak: And we believe it will lead to further growth in 2025.
Louis Hoak: With organic revenue expected to increase 14% to 16% with steady improvement in our bottom line and financial position.
Louis Hoch: I'm particularly excited about our new UCO-1 initiative. and the board shares our confidence, authorizing an increase and extension of our share repurchase agreement. We appreciate your support as we continue to build value for our shareholders.
Louis Hoak: I'm, particularly excited about our new U C O one initiative.
Louis Hoak: And the board shares our confidence authorizing an increase and extension of our share repurchase agreement.
Louis Hoak: We appreciate your support as we continue to build value for our shareholders.
Operator: And with that, I'd like to turn the call back to the operator to conduct our question and answer session. Ladies and gentlemen, at this time, we'll begin that question and answer session. To ask a question, please press star and then one to join the question. To withdraw your questions, you may press star and. Once again, that is star and then one to join the question queue. If you are using a speaker phone, we do ask that you please pick up the handset prior to pressing the keys to ensure the best sound quality.
And with that I'd like to turn the call back to the operator to conduct our question and answer session.
Louis Hoak: Ladies and gentlemen at this time, we'll begin the question and answer session.
Louis Hoak: To ask a question. Please press star and then one to join the question queue to withdraw your question you May Press Star two.
Louis Hoak: Once again that is star and then one to join the question queue. If you are using a speaker phone. We do ask you. Please pick up the handset prior to pressing the keys to ensure the best sound quality.
Scott Buck: Our first question today comes from Scott Buck from H.C. Wainwright. Please go ahead with your question. Hi, good afternoon, guys. Thanks for taking my call. Questions.
Speaker Change: Our first question today comes from Scott Buck from H C. Wainwright. Please go ahead with your question.
Scott Buck: Hi, Good afternoon, guys. Thanks for taking my call a questions.
Louis Hoch: I guess, Louis, the first question I have is on the guide. Curious what your visibility looks like through 2025, and how should we think about revenue cadence through the year? Do we build to a stronger second half, or is the strength, you know, kind of spread throughout the year? It's definitely in loaded as these implementations start to come live. And, you know, our visibility for 2025 has changed a little bit, but we're still expecting great growth. Great. And are we relying on a single or maybe two large customers to meet that 14 to 16% growth or is it more widespread?
Scott Buck: Well it was the first question I have is on the guide I'm curious what your visibility looks like through 2025, and how should we think about revenue cadence through the year do we build to a stronger second half or is the strength kind of spread throughout the year.
Scott Buck: It's definitely end loaded.
Scott Buck: As these implementations start to come live.
Scott Buck: And you know our visibility for 2025 has changed a little bit, but we're still expecting great growth.
Speaker Change: Great and are we relying on a single or maybe two.
Speaker Change: Large customers to meet that 14% to 16% growth or is it more widespread.
Louis Hoch: widespread. Perfect.
Speaker Change: Widespread.
Louis Hoch: Thank you.
Speaker Change: Perfect. Thank you and then a second one.
Louis Hoch: And then second one, just on the repurchase authorization, how are you prioritizing repurchases versus, you know, reinvestment in the business or even potentially M&A? Yeah, well, repurchases, we're authorized to do up to $4 million. The board has given us that. And, you know, we will be making purchases in the market if the market conditions allow for that. and we're always looking at M&A deals and we're just very picky on who we acquire. So we continue to generate cash. And we could put that cash to work in many different ways. And M&A is one of them.
Speaker Change: Just on the.
Speaker Change: Repurchase authorization, how are you prioritizing repurchases versus reinvestment in the business or even potentially M&A.
Speaker Change: Yeah, well repurchase we're authorized to do up to $4 million. The board has given us that.
Speaker Change: And we will be making purchases in the market if it.
Speaker Change: Yes.
Speaker Change: The market conditions allow for that.
Speaker Change: And we're always looking at M&A deals and.
Speaker Change: We're just very picky on who we acquire.
Speaker Change: So we continue to generate cash.
Speaker Change: We can put that cash to work in many different ways and M&A is one of them.
Louis Hoch: Great.
Louis Hoch: And then last question for me, just curious if you guys are seeing any change in your kind of sales conversations with maybe local or state governments, just given the change in the administration at the federal level. From a payback side, really not affected, but from the potential in the disbursement space, I think that might open some doors, but nothing . I mean, nothing that we can really comment on now.
Speaker Change: Great and then last question for me just curious if you guys are seeing any change.
Speaker Change: In your kind of sales conversations with maybe a local or state governments, just given the change it.
Speaker Change: And the administration at the federal level.
Speaker Change: From a from a payback side, not really not affected but from the.
Speaker Change: The potential and the disbursement space I think that might open some doors.
Speaker Change: But but nothing.
Speaker Change: I mean, nothing that we can really comment on that.
Scott Buck: Okay, I appreciate that. Thanks for the edit color, guys. Thanks, Scott. Thank you very much. And ladies...
Speaker Change: Okay I appreciate that thanks for the added color guys.
Speaker Change: Thanks, Scott Thanks, Scott.
Barry: Thank you Barry and ladies.
Operator: And ladies and gentlemen, ensuring no additional questions, we'll be ending today's question and answer session, as well as today's presentation. We do thank everyone for joining. Please have a pleasant day, you may now disconnect your lines.
Speaker Change: And ladies and gentlemen, and showing no additional questions. We will begin today's question and answer session as well as today's presentation. We do thank everyone for joining.
Barry: Please have a pleasant day you may now disconnect your lines.
Barry: [music].
Operator: and Theseus C.