Core solutions provider Jack Henry posted a 4% revenue increase for the fiscal year ending June 30, with operating income increasing 5% for the same period.

Fourth-quarter results were more positive, with total revenue increasing 10% and operating income increasing 25% compared to Q4 2020, said President and CEO David Foss on today’s earnings call. While conversion fees remained flat as compared to the prior year, Foss said June was the strongest sales month in the history of the company.

“June was also the strongest sales month ever. It propelled all three sales groups to exceed their quota for the quarter,” Foss said. “While they were signing all those contracts in the fourth quarter, the sales team also did an outstanding job of refilling the pipeline with new opportunities to set us up for success going forward. I think this is a good sign of the health of our market and bodes well for the start of a new sales year.”

During the fourth fiscal quarter, Jack Henry booked 13 competitive core takeaways and 14 deals to move existing on-premise customers to Jack Henry’s private cloud, Foss said. The company’s Banno digital platform performed well, he added, noting that the company signed 87 new clients to the platform during the quarter, as well as 10 new treasury management clients and 22 new clients to its card processing solution.

For the full fiscal year, Jack Henry signed 41 “competitive core takeaways, with eight of them greater than $1 billion in assets,” Foss said. Additionally, 35 contracts from core clients shifted away from on-premise to the private cloud.

Overall, Jack Henry has 630 banks and 436 credit union core clients on their private cloud, with most new clients starting directly on the cloud, said Foss. Again, Banno outperformed other offerings with 290 new digital financial institution customers during the fiscal year, bringing the registered users to approximately 5.6 million, compared to 3.2 million registered users the previous year, according to the earnings presentation.

The company also signed 55 new clients for the company’s card processing solution, as well as “a variety of other contracts” for Jack Henry’s other solutions, Foss added.

“It’s important to note that almost all of these contracts represent long-term recurring revenue,” Foss said.

The company’s debt increased from zero last year to $100 million in 2021 after paying on a $200 million revolving credit line from the third quarter, according to CFO Kevin Williams. Jack Henry drew the $200 million to buy back stock for the treasury, which was on the balance sheet as of March 31, a spokesperson said.

Shares of Jack Henry [NASDAQ: JKHY] were trading at $172.38 as of market close, down 3.47% from open. Market capitalization is at $12.8 billion.

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