CoreCard Corporation, the under-the-radar fintech powering some of the biggest names in the credit card world, just dropped a bombshell in its Q1 2024 earnings call. While everyone is fixated on the Goldman Sachs drama – and understandably so – a subtle but profound shift is taking place within CoreCard that has the potential to rewrite its future in a dramatic way.

Leland Strange, CoreCard's CEO, casually mentioned a "handful" of potential strategic customers. On the surface, this sounds like typical corporate jargon, the kind of vague optimism CEOs throw around every quarter. But a deeper dive into Strange's comments, combined with the company's financials, reveals a strategy far more aggressive and potentially lucrative than anyone seems to be noticing.

Strange didn't just say he was _talking_ to these potential "strategics". He said he _hoped_ to sign on two more. Why two? Because, as he explained, CoreCard can only handle three strategic partners at a time, and one slot is already filled by the innovative Bank of California, with its soon-to-be-launched commercial card.

Here's where things get really interesting. Strange strongly hinted that one or both of the remaining strategic targets _already have significant revenue_ – meaning they're not small, scrappy fintech startups, but established players with existing card portfolios. He also mentioned that two of these prospects have contracts with their current processors expiring in mid to late 2025.

Now, let's do some quick math. CoreCard is projecting 10-15% growth in 2024 from its non-Goldman, non-Kabbage, non-ParkMobile customer base. This "organic" growth segment generated roughly $18 million in revenue in 2023. Applying a conservative 10% growth rate to that base, we're looking at around $19.8 million in revenue for 2024.

Here's the kicker: **CoreCard's total services revenue projection for 2024 is flat year-over-year, which means it's also around $19.8 million.** In other words, the company isn't factoring in _any_ revenue from potential strategic wins in its 2024 guidance.

But what if they land even _one_ of these big fish? Assuming a conservative conversion timeline of 12 months – in line with Strange's comments – a new strategic partner with, say, $10 million in existing revenue could easily add $5 million to CoreCard's top line in the second half of 2025. That's a _25% jump_ in services revenue compared to its current flat projection.

And that's just the beginning. CoreCard's business model is built on recurring revenue from processing and maintenance fees, which scale with the number of active accounts. As these new strategic partners grow their card programs, CoreCard's revenue and profitability will follow suit – at high incremental margins, no less.

Of course, there's always the risk that CoreCard won't close any of these deals. But given the company's track record of innovation, its unique technology, and the growing demand for flexible, customizable card issuing platforms, the odds are looking increasingly favorable.

If Strange and his team can pull this off, CoreCard's "slow growth" story could quickly become a distant memory. And with a market cap hovering around $115 million, the upside potential for investors could be nothing short of explosive.

Revenue Breakdown

Reference: CoreCard Corporation (CCRD) Q1 2024 Earnings Conference Call

Potential Revenue Impact of Strategic Wins in 2025

"Fun Fact: CoreCard's technology was originally designed for the gaming industry, where it was used to track player loyalty programs and process high-volume transactions. This experience in handling complex, real-time data has proved invaluable in the world of credit card processing, where speed, security, and reliability are paramount."