Q4 2023 Summary
Updated Jan 7, 2025, 3:05 AM UTCInitial Price$22.48October 1, 2023
Final Price$30.60December 31, 2023
Price Change$8.12
% Change+36.12%
- Strong growth expected in the Bank segment, with anticipated 8%-9% growth in 2024, driven by high demand for real-time payments and fraud detection solutions, which are projected to have healthy double-digit growth.
- Merchant segment is expected to accelerate growth in 2024, potentially at the high end of the 7%-9% consolidated growth rate, after exiting 2023 with strong momentum.
- License and service bookings increased by 16%-17% in 2023, particularly in the Bank segment, indicating a robust pipeline and future revenue growth.
- Growth in the Biller segment is expected to slow down in 2024, falling back into the 7% to 9% range, due to non-recurring factors such as the significant interchange improvements achieved in 2023 that "we don't have enough room to repeat".
- Annual Recurring Revenue (ARR) bookings decreased in 2023 because "the largest Biller deal that we've ever sold was in the 2022 comps", and "that sort of deal size did not recur in 2023", indicating challenges in replicating past large deals.
- Efforts to expand into mid-tier banks have not materialized yet, with management admitting that "it hasn't really shown up much yet" and that it's "a future opportunity", suggesting delays in realizing this growth strategy.