On this page of StockholderLetter.com we present the 10/5/2023 shareholder letter from JACK HENRY & ASSOCIATES INC — ticker symbol JKHY. Reading current and past JKHY letters to shareholders can bring important insights into the investment thesis.

 •  10/5/2023 Letter Continued (Full PDF)
 •  10/3/2024 JKHY Stockholder Letter
 •  10/2/2025 JKHY Stockholder Letter
 •  More "Information Technology Services" Category Stockholder Letters
 •  JKHY Benford's Law Stock Score = 98

JKHY 10/5/2023 Shareholder/Stockholder Letter Transcript:

Strengthening Connections
2023 annual report

Empowering people and
communities to gain the financial
freedom to move forward.

Table of Contents
4
Financial Highlights
5
Shareholders    Letter
8
Strengthening Connections
17
Financials
29
Market for Registrant   s Common Equity
30
Performance Graph
30
Management   s Discussion and Analysis
41
Quantitative and Qualitative
Disclosures About Market Risk
42
Financial Statements and
Supplementary Data
70
Board of Directors and Executive Officers
Table of Contents      |      jackhenry.com
3

Financial Highlights
(In millions except per share data)
revenue
diluted earnings
net income
$2,200
$6
$4.94
$2,078
$363
$367
$5.02
$400
$5
$4.12
$311
$2,000
$1,943
per share
$500
$4
$300
$3
$200
$1,800
$1,758
$2
$100
$0
$1,600
2021
2022
$1
2023
2021
2022
2023
$0
2021
2022
2023
EBITDA*
return on shareholders    equity
26.9%
21.7%
24.5%
return on invested capital*
35%
35%
30%
30%
24.9%
25%
21.7%
21.0%
2022
25%
$800
$652
$671
$575
$600
20%
$500
15%
15%
$400
10%
10%
5%
5%
2023
$300
$200
0%
2021
2022
2023
$100
2021
2022
2023
dividends declared
per share
$2.40
$1.78
$1.90
$2.02
$2.00
$1.60
$1.20
$0.80
$0.40
2021
4
$700
20%
0%
2021
(earnings before interest, taxes,
depreciation, and amortization)
2023 annual report       |      Financial Highlights
2022
2023
*For non-GAAP reconciliation, see page 69.

Shareholders    Letter
Fellow Shareholders,
Fiscal year 2023 proved to be a tumultuous
year in financial services with persistent
inflation, interest rate increases, and the failure
of several highly specialized banks. Through
all the challenges, Jack Henry   s associates
persevered and enabled us to deliver another
solid financial performance, increase client
satisfaction scores, and achieve record sales.
Our more than 7,000 associates     working
in all 50 states     collaborated with one
another throughout the year to support both
Jack Henry    and our clients. We are thankful
for their ongoing hard work and dedication.
As you may already know, Jack Henry employs a
continuous listening strategy, sending employee
engagement surveys to our associates on their
work anniversaries. This approach allows us to
receive feedback from our associates virtually
every day of the year. This year   s results showed
that 79% of associates trust Jack Henry and 77%
feel a sense of belonging at work. We are honored
to earn those kudos from our associates and to
receive national and regional recognition as a
top workplace. Jack Henry ranked on Newsweek   s
100 Most Loved Workplaces and America   s
Greatest Workplaces lists; Computerworld   s Best
Places to Work in IT list for the 11th consecutive
year; and the lists of the Top Workplaces in
Atlanta, Charlotte, Dallas, and Kentucky.
Our associates in turn provide strong service levels
for our financial institution clients as reflected in
the consistently high client satisfaction scores
we receive on thousands of monthly surveys. This
year our client satisfaction scores averaged a
4.6 out of 5 for overall satisfaction and a 4.75 out
of 5 for overall customer service representative
satisfaction     both are increases over our already
industry-leading satisfaction scores. Throughout
our 47-year history, delivering outstanding
customer service has been a hallmark of our
company and leads to deeper relationships
with our clients.
During fiscal year 2023 we grew total revenue by
7% for the year and 8% on a non-GAAP basis     a
reflection of our proven, sustainable business
model, well-rounded array of solutions, and
service quality. More than 90% of our revenue
is recurring, and our client retention rate is
well over 99%. The limited bank merger and
acquisition (M&A) activity in the year had a
significant financial impact because of a decline
in deconversion fees and    convert/merge    revenue.
As I   ve said before, deconversion revenue is the
revenue you don   t want to see because it means
that we   ve lost a client to M&A; however, the
decline did impact our revenue for the year.
90%
recurring
revenue
client
retention
rate over
99%
Our sales teams set a new record for sales in
the second fiscal quarter only to break that
record in the fourth quarter. Additionally, we
set a new sales record for fiscal year 2023, and
continued to grow our sales pipeline     entering
fiscal year 2024 with the largest sales pipeline
in our history. These sales results and record
pipeline reflect a healthy demand across all of
our products, not just one product or segment.
Shareholders    Letter      |      jackhenry.com
5

10/5/2023 Letter Continued (Full PDF)

 

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