And that was in line with all of the major card network providers and U.S. trends we’ve seen and a tough comp, but we’re reiterating the full-year guide, and we feel comfortable in that 7% to 8% growth algorithm is still an appropriate level.
Vasundhara Govil: Thank you for that. And then, Dave, I want to add, I’ve really enjoyed working with you the last few years, and you will certainly be missed. One high-level question for you. Three big players that have the majority of the share in the industry, but the number of Fintechs that are going after the opportunity is larger today than it probably was a few years ago. So how do you see the competitive landscape evolving over the next three to five years?
David Foss: Yes. So first off, thank you, Vasu. It’s been fun. So it’s interesting. These people trying to come into the U.S. market and provide competing services to players like us has been going on for quite a while now. And the challenge for many of them is approach it from a technology point of view as opposed from a banking point of view. And so they come in thinking, “Hey, I can deliver a greater user experience, something that’s cooler and more fun”, but they don’t realize how really difficult it is to do the heavy lifting that behind the scenes that you don’t see. It’s the work that’s not sexy, but it’s the work that has to be done for a bank, you need to be successful. And so we’ve seen many come into the U.S. market trying to deliver a solution, don’t understand the regulatory environment, don’t really understand all the heavy lifting that happens underneath.
And then they kind of back away and maybe turn their solution into a digital banking solution or something like that. And so I don’t view what’s going on today is really any different from that. There are people out there, and they’re smart people, but I think the complexity of all the things you have to do to keep a bank or credit union operating and in balance and all those important things is often times overlooked. So we have our eyes wide open, we are not pretending that nobody is a threat. And we follow a lot of different companies. But today isn’t really in my mind any different than it was five years ago where a lot of people were talking, a lot of people were trying to figure out how to really take a foothold in this industry. And it’s just really difficult to do all the things that we do.
So I don’t see that changing anytime soon.
Vasundhara Govil: Thank you for the color.
Operator: The next question comes from Tyler DuPont of Bank of America. Please go ahead.
Tyler DuPont: Hi, good morning. This is Tyler on for Jason. Thanks for taking the question. I wanted to start by asking about the progress in rolling out some of the complementary solutions such as that a business financial tenders outside the core. Can you maybe just level set where we are today with that rollout. If I remember right, the target was some sort of implementation by the end of F ’24 and just sort of when you think this might be needle moving going forward? Any clarity there?
Gregory Adelson: Yes. This is Greg. So I’ll take that one. So as far as execution, we’re moving forward. We had talked about being able to sell it at the end of this calendar year, and we’ll be able to start doing that in Q4. Execution and planned implementation will be in the fourth quarter of our fiscal year ’25 — second year — or second quarter of the calendar year ’25. That will be the planned implementations. As we mentioned earlier, we were going to take this in a very strategic fashion going after just a handful of competitive course. We’re focused on working through one right now. You have to get some level of cooperation to do some of what we’re doing as well. So some of that gets kind of in the documentation and working through some of those kind of idiosyncrasies that what you need.
But as far as our plan is on track to have Banno business, our CPS card product and Financial Crimes Defender, all three of those products that today that do not go outside of the Jack Henry core base to be available all at the same time and offer the first specific core that we’re targeting and then we’ll be working through the other things. So as far as answering your question of when it will have any significant impact it will be a little while for that to happen. And — but the reality is we think the stickiness of what we’re doing with those particular products will help us with some other things in selling other solutions and other opportunities.
David Foss: Can I offer just one clarification to your question, Tyler, just to make sure we’re on the same page here. So what Greg has talked about is these brand-new solutions that we’re rolling into outside the base. But we have thousands and thousands of deployments of other solutions to non-Jack Henry core customers. So I just want to make sure there’s no confusion about we’ve been selling outside the core base for many years, thousands of — in fact, I think we have more customers, more banks and credit unions running our bill pay solution who are not Jack Henry core customers than who are Jack Henry core customers, and that’s true for a number of other solutions. So I just want to make sure we’re clear on the fact that we know how to sell outside the base. it’s just the strategy around these brand new solutions that we’ve been really kind of talking about and thoughtful about.
Tyler DuPont: Okay. Understood. I appreciate the clarity there. And then just as a follow-up, I wanted to jump off of the previous competitive positioning question but from a slightly different angle. Can you discuss any signs of success you’re seeing or any trends you’ve seen with moving a little bit more into the mid-market financial institutions playing field, if you will, sort of what trends you’re seeing there, if there’s any different go-to-market that you need to implement? I know you mentioned that there was a couple of multibillion-dollar signings over the past several quarters, but just any update there?
Gregory Adelson: Yes. Sure. This is Greg again. So I’ll take that. So as we’ve mentioned previously, and there’s still all in the queue, we have three $20 billion plus opportunities in our current pipeline, and we continue to work those and continue to make progress on those. But I would say that even in the multibillion space, let’s just call it the $5 billion to $15 billion we’re continuing to see more and more opportunities in there. And I would say the biggest drivers really are the technology modernization strategy that we have articulated and what folks are seeing for the future. And more importantly, what we’ve already executed on as you can imagine, most people want to see that it’s not just a sales pitch. It’s some level of execution, and we continue to show advancements on what we’ve done, where we’re going.
And things along that line. So that has really helped us continue to move and progress in the sales pipeline with many of these larger opportunities. So I think what you’re going to continue to see is what we’re doing on the technology side, what we’ve always been known from the service side continue to create those opportunities.
Tyler DuPont: Great, thanks Greg. That is very helpful.
Operator: The next question comes from Dave Koning of Baird. Please go ahead.
David Koning: Hey guys, congrats, Dave. Great career. And I guess, First of all, I guess, just kind of two kind of cleanup questions. Corporate revenue was lower than normal or than recently. I think as the conference wasn’t in the quarter, but then cost — corporate costs were higher than usual. What’s just the dynamic there? And do those go back down in the coming quarters?
Mimi Carsley: Yes, I think I wouldn’t read anything into just like a one quarter. We did have — relative to last quarter, we talked about that the annual merit increase is hit in Q3. So from a cost perspective, that’s where you saw personnel cost go up. The revenue it could just be hardware or as you mentioned last quarter was the conference, but I would not read too much into that.
David Koning: Okay. Okay. And then one other one. I think you had a negative term fee in complementary. And then I think you actually had a small EBIT loss on term fees. Both of those, I don’t know if you’ve ever seen those dynamics before either of those. And maybe just — I know it was such a small term few quarter anyway, but just describe kind of how that happens and if that’s one-off.
Mimi Carsley: Yes. This is certainly a one-off. So as you know, for deconversions, we do get a little bit of notice once they start the file transfer process. So we were informed that a financial institution had planned to deconvert and then later postpone the timing and delay. And so there was a bit of a reversal on that transaction.
David Foss: And this is something Dave — I mean, I’ve been doing this a long time. I don’t remember the last time I saw this, but this was essentially a customer that was recruited away by a competitor, and they had a failed conversion and so decided that they needed to back out of that and come back to Jack Henry. So I don’t ever remember that happening and certainly haven’t seen a failed conversion in our industry for many, many years. So this was a real unique situation.
David Koning: That’s great to hear. Thanks guys.
Operator: Our next question comes from James Faucette of Morgan Stanley. Please go ahead.
