The company completed the acquisition of Payrailz, a provider of cloud-native digital payment capabilities. The acquisition aims to expand the company's digital financial management solutions.

The company emphasizes that significant portions of its business continue to provide recurring revenue and the sales pipeline is encouraging. They aim to address institutional profitability, efficiency, and security.

The company has a disciplined approach to acquisitions and has been successful in supplementing its organic growth with 35 strategic acquisitions since the end of fiscal year 1999.

The company emphasizes client service as a primary competitive advantage, with a support infrastructure and strict standards providing high levels of client satisfaction and retention.

The company is committed to developing and maintaining modern and integrated solutions, ensuring compliance with relevant regulations, and incorporating proven advances in technology.

In July 2023, the Company conducted a voluntary separation program for certain eligible associates that included a VEDIP payment for the eligible associates who chose to participate in the program

The company acknowledges that data security breaches, failures, or other incidents could damage reputation and business. They rely on third parties, and a security failure by one of these third parties could expose their data or subject their information systems to interruption of operations and security vulnerabilities.

Failure to maintain sufficient technological infrastructure or an operational failure in outsourcing facilities could expose the company to damage claims, increase regulatory scrutiny, and cause loss of clients.

The company relies on third-party service providers to support key portions of operations, and failures of these providers could lead to financial loss, damage claims, and reputational harm.

The market for companies providing technology solutions to financial services organizations is competitive, and the company expects that competition from both existing competitors and companies entering existing or future markets will remain strong.

Consolidation and failures of financial institutions will continue to reduce the number of clients and potential clients, which could negatively impact the results of operations.

The company competes on the basis of product quality, reliability, performance, ease of use, quality of support and services, integration with other products, and pricing.

The company continually seeks opportunities to increase revenue while at the same time containing costs to expand margins.

Cost of revenue for fiscal 2024 increased 6.6% compared to fiscal 2023. This increase was driven by higher direct costs consistent with increases in the related revenue, higher internal licenses and fees from price increases and higher deployments in the current fiscal year, and increased personnel costs.

Selling, general, and administrative expenses for fiscal 2024 increased 18.3% compared to fiscal 2023. This increase was primarily due to higher personnel costs, including a headcount increase in the trailing twelve months and higher commission expense.

Research and development expenses for fiscal 2024 increased 3.9% compared to fiscal 2023. This increase is primarily due to higher cloud consumption, net of capitalization, increased personnel costs, including Payrailz acquisition and Jack Henry Platform costs, net of capitalization.

The company devotes significant effort and expense to develop new software and service products and continually upgrade and enhance existing offerings.

The company capitalizes certain costs incurred for use in its cloud-based services and to develop commercial software products. For internal use software, capitalization begins at the beginning of application development.

Capital expenditures totaling $58.1M were made primarily for additional equipment and the improvement of existing facilities.

The Board of Directors has authorized the Company to repurchase shares of its common stock. During fiscal 2024, the Company repurchased 179 treasury shares for $28,055.

Financing activities used cash of $301,835 for fiscal 2024 and included: $155,877 for dividends paid to stockholders

As of June 30, 2024, Jack Henry had approximately 7,170 full-time and part-time associates. Our associates are not covered by a collective bargaining agreement and there have been no labor-related work stoppages.

The company's people and culture strategy focuses on attracting, engaging, and retaining qualified, diverse, and innovative talent at all levels of the Company.

The company is actively collaborating with Business Innovation Groups ("BIGs") to foster a culture of belonging. Their insights are crucial for sparking innovation and shaping strategies to attract and retain talent, ensuring associates feel valued and connected.

The financial services industry is subject to extensive and complex federal and state regulation. As a supplier of software and services to financial institutions, portions of our operations are subject to ongoing supervision and examination by regulatory agencies.

The company derives most of its revenue from products and services provided to the financial services industry. If the general economic environment worsens, clients may be less willing or able to pay the cost of our products and services, and we could face a reduction in demand.

Jack Henry's information and cybersecurity program is a key component of our overall enterprise risk management and is maintained by a team of diverse, highly skilled cybersecurity professionals, as well as a portfolio of investments in modern technology, including artificial intelligence and machine learning.