Jack Henry & Associates, Inc. (NASDAQ:JKHY) Q2 2023 Earnings Call Transcript

Page 3 of 11

David Foss: Yes, we do. And so and we publish that for our clients, we have a roadmap out on our customer portal so our clients can go and see what the roadmap looks like. And so we’re being very transparent with our clients and with prospects. Initially, I had hoped to publish that for everybody to see. But we’ve realized that, again, competitors are very, very eager to see what Jack Henry’s doing. They’re trying to figure out how to compete with a strategy. And so we backed off on being quite that transparent. But we’re being very transparent with our existing customers, and with prospects who are looking at tech modernization to help define their strategy for the future.

David Togut: We don’t have access to the client portal, I mean, can you kind of share in any broad brushstrokes, what we should be expecting in terms of rollout of tech modernization strategy?

David Foss : Yes, I’ll, so I’m going to turn it over to Greg here. Just to give you a couple of highlights, again, we’re not going to go into great detail at this point. But Greg can give you a couple of highlights of what to expect. And I will point out that in the, my prepared remarks here, I highlighted the fact that we have some of these things rolling out. We have our domestic wire solution coming into full production here in just a couple of months. We have our international wire solution coming into full production later this year. So I’ve already highlighted a few of those things. But I’ll turn it over to Greg for a little more color.

Greg Adelson: Yes, there’s a few other things we’re doing. So we basically have planned out for the next three years. So we have various targets that we’ve assessed, but things around authorization management is a big one. Dave actually mentioned that as some of the testing that we’re doing already, in the Google Cloud, that’s a big one, there’s a lot of components that we’re doing with real time to help us with some solutions that we’re going to look to roll out over the next 18 months or so that we’re not prepared to talk about publicly, but components of that. And then, of course, a lot of the other key modules, General Ledger itself, other components that will be done. But each of those is already bracketed by year for what we plan to get done over the next three years.

David Togut: Got it. And just finally, the three big core wins, you signed on December 30. Dave. What were the key to those wins, like what particular capability drove those wins? And how big were those banks? Were they above $10 billion in assets?

David Foss: None of them were above $10 billion. My recollection is they were mostly been a three-ish range. three to five, somewhere in there. And I’m not, I’m just doing that off top my head, but somewhere in that range for those customers. And I think it’s the same story that you’ve heard from us time and time again, Dave. It’s a combination of great technology, a great reputation for service, a very focused strategy. So if you come to do business with Jack Henry, you know which core side we’re going to be supporting for the go forward. There’s no question about what our strategy is regarding core. So I think it’s all those things rolled together, plus, this reputation we have for openness. And today, most banks and credit unions want to connect to FinTech solutions, and they want a partner who embraces that idea of open connectivity.

And so you roll all those things together. It’s the same things that we’ve been talking about for a long time. Those are the primary drivers for us in these wins.

Operator: And then last question come from Kartik Mehta with Northcoast Research.

Page 3 of 11