Jack Henry & Associates Inc at RBC Capital Markets Technology, Internet, Media and Telecommunications Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Daniel Perlin - RBC Capital Markets - Analyst : <_ALACRA_META_ABSTRACT>I wanted to start there a little bit. I think you're the fifth in the company's history. And so it would be helpful, I think, to think about what your strategic priorities are for the organization. And then as you've taken the helm, maybe some observations that you've seen since that transition has occurred.

Question: Daniel Perlin - RBC Capital Markets - Analyst : When you've hit on a lot of things we're going to talk about hopefully in the next 25, 30 minutes. But one of the things that obviously is top of mind right now as many things, I should say. But the current demand environment that you're seeing, if you can maybe touch on that and maybe also through the lens of the Jack Henry Connect conference, I think you had like 3,000 clients and prospects there. So well timed to have this discussion, but anything kind of gleaned out of the demand environment would be great.

Question: Daniel Perlin - RBC Capital Markets - Analyst : Yes. I would be remiss if I didn't kind of follow up on that question a little bit in terms of the conversations that you're having with all of your leaders and partners and CEOs of these other financial institutions and other bank technology companies for that matter. With the new administration and now we have clarity there, it sounds like the banks are willing to spend based on kind of early reads. A lot of that incrementally came before some decisions had been made. And so I'm wondering what those conversations maybe feel like now and your expectations around regulation and otherwise.

Question: Daniel Perlin - RBC Capital Markets - Analyst : These are larger institutions buying smaller banks for.

Question: Daniel Perlin - RBC Capital Markets - Analyst : Yes. So how do we take that kind of demand cycle, M&A pent-up and the easing of regulatory. And think about if all those things kind of play out, how quickly do financial institutions typically move in terms of flow of investment and/or kind of that M&A cycle like it gets announced, but we might get ahead of ourselves in the modeling sometimes, but like what's the realistic duration.

Question: Daniel Perlin - RBC Capital Markets - Analyst : Okay. Okay. Great. I wanted to just touch base just in the quarter, just a second because one of the topics that came out of that, and you had a solid quarter, but there seemed to be a lot of questions around your core wins (inaudible) that's not good enough. That was the mentality that I heard from a lot of investors. And some of that was weather and some of that's timing. But I guess more REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 20, 2024 / 3:00PM, JKHY.OQ - Jack Henry & Associates Inc at RBC Capital Markets Technology, Internet, Media and Telecommunications Conference importantly, as you think about the confidence you're building around potentially getting to 45 or 50 of those core wins? Like what gives you so much confidence that you start off maybe a little slower than (inaudible).

Question: Daniel Perlin - RBC Capital Markets - Analyst : Right -- let's get into that. So it starts with kind of the tech modernization strategy. I guess the question just in the onset there is our financial institutions truly in a position to go on that journey with you yet? Or are they having conversations with you about what that journey might look like.

Question: Daniel Perlin - RBC Capital Markets - Analyst : Got it. Got it. And then as you pointed out earlier, not all cores are created equal, and you've also been winning a lot of larger banks that historically maybe has been the case. And so I'm assuming this is part of the catalyst like this modernization, but maybe you could talk to that point as you gravitate towards some of these larger financial institutions. And what they're demanding maybe that you maybe didn't provide to them before or how that's really transit.

Question: Daniel Perlin - RBC Capital Markets - Analyst : Well, you brought up competition, I would have thought maybe to ask that a little bit later in the debt chart. But it does feel like there's a lot of discussions in the market as we hear it around service. and service qualities. And even though some that are maybe getting more recognition than you do in many instances around some larger financial institutions, and we always seem to get the same kind of quality. So -- it might be a loaded question, but like what are you hearing like good, bad and different from the competitive set out there? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 20, 2024 / 3:00PM, JKHY.OQ - Jack Henry & Associates Inc at RBC Capital Markets Technology, Internet, Media and Telecommunications Conference

Question: Daniel Perlin - RBC Capital Markets - Analyst : Yes. I fully agree. I want to spend some time on cloud migration. I know you talked about like where you're heading further down the road, but maybe taking a step back a little bit because there has been a pretty consistent trend where financial institutions are kind of migrating more critical functions, but it's historically been like private and hybrid cloud. And I think you said in the last quarter, you signed six deals to kind of migrate more towards in-house. And so where is that trend in its kind of process? Like -- are we getting pretty long in the tooth there? Or is there still a pretty long runway. And is that something that is also important -- or are they going to leapfrog into maybe your next step?

Question: Daniel Perlin - RBC Capital Markets - Analyst : Yes. Yes. I want to come back to the SMB strategy in one second because I do think that's super important. And I want to finish off the cloud for a second here. The question it does still come up in this kind of unbundling the core strategy is there kind of cannibalization of legacy business that is going to take place and do you have to have some grow over period. And you guys have been pretty consistent about how you've said not really the case, but it's still, I think, we still get the question. So in kind of (inaudible).

Question: Daniel Perlin - RBC Capital Markets - Analyst : Yes. It's a great response. It helps get better at answering that question. Yes. So let's talk about the SMB strategy a little bit, and you talked about your relationship or partnership you have with Move. So maybe if you want to just go through and elaborate on that a little bit would be great.

Question: Daniel Perlin - RBC Capital Markets - Analyst : Yes. It sounds a lot like you're trying to make sure that the banks stay for forefront of all this stuff as opposed to like all these other fintechs coming on the end of round and so like reinstituting the kind of dominance that a financial institution kind of played when you go back and look at like 20 years ago when they were kind of get rid of the acquiring businesses now, a lot of that stuff.

Question: Daniel Perlin - RBC Capital Markets - Analyst : That's wild, 16%, that's amazing. I did want to ask you a question about this developers conference. So like we talked to the other one. This is, I think, the first one you've had?

Question: Daniel Perlin - RBC Capital Markets - Analyst : Made me think like is this kind of a new sales approach and that you want to be in front of the developers to get kind of street cred, so to speak, in order to get them on board as the banks start to kind of make those decisions? Like has that changed? Or is that just a different strategy?

Question: Daniel Perlin - RBC Capital Markets - Analyst : That's great. So I know we're out of time, but it sounds like the journey is really just getting started in a lot of ways. I mean it's been a company that's been around for a long time, but your journey is just getting started. And you got a lot of -- we had a drop-down menu of everything you just said, it'd be a long one. That is good. This is a high-quality problem you got.

Question: Daniel Perlin - RBC Capital Markets - Analyst : So thank you so much for being here. Really appreciate it.