JHA operates in four reportable segments: Core, Payments, Complementary, and Corporate and Other.

The Core segment (some 35% of total sales) provides core information processing platforms to banks and credit unions, which consist of integrated applications required to process deposit, loan, and general ledger transactions, and maintain centralized customer/member information. 

The Payments segment (around 35%) provides secure payment processing tools and services, including ATM, debit, and credit card processing services; online and mobile bill pay solutions; ACH origination and remote deposit capture processing; and risk management products and services. 

The Complementary segment (more than 25%) provides additional software, processing platforms, and services that can be integrated with the company's core solutions or used independently. 

The Corporate and Other segment (about 5%) includes revenue and costs from hardware and other products not attributed to any of the other three segments, as well as operating costs not directly attributable to the other three segments.

Overall, More than 60% of the company's revenue comes from its service and support division, which includes outsourcing and cloud, product delivery and services, and in-house support; while remaining revenue is contributed by processing activities.

Geographic Reach

Based in Monett, Missouri, JHA has other locations in Allen, Texas; Albuquerque, New Mexico; Birmingham, Alabama; Lenexa, Kansas; Angola, Indiana; Shawnee Mission, Kansas; Oklahoma City; and San Diego, California spanning almost 25 states. 

Sales and Marketing

JHA serves established, well defined markets that provide ongoing sales and cross-sales opportunities. The marketing and sales initiatives within the Jack Henry Banking and Symitar business lines are primarily focused on identifying banks and credit unions evaluating alternative core information and transaction processing solutions. ProfitStars sells specialized core agnostic niche solutions that complement existing technology platforms to domestic financial services organizations of all asset sizes and charters. The company's marketing department supports all of its  brands with lead generation and brand-building activities, including participation in state-specific, regional, and national trade shows; print and online advertising; telemarketing; customer newsletters; ongoing promotional campaigns; and media relations. JHA also hosts annual national education conferences which provide opportunities to network with existing clients and demonstrate new products and services.

Financial Performance

Revenue for fiscal 2020 was $1.7 billion. In fiscal 2020, revenues increased 9% or $144.4 million compared to fiscal 2019. Deconversion fees increased $23.7 million to $53.9 million compared to the prior fiscal year. Revenue from fiscal 2020 acquisitions totaled $9.0 million. Excluding these factors, adjusted revenue increased 7%, with growth in each of its revenue streams.

Net income increased 9% to $296.7 million in fiscal 2020 from $271.9 million in fiscal 2019 primarily due to increased deconversion fee revenue, organic growth in its lines of revenue, year over year, and inorganic contributions from the company's fiscal 2020 acquisition.

Cash held by the company at the end of fiscal 2020 increased to $213.3 million compared to $93.6 million in the prior year. Cash provided by operations was $510.5 million while cash used for investing and financing activities were $197.9 million and $192.9 million, respectively. Main uses of cash were cost of computer software developed and dividends paid.

Strategy

The company's fundamental business strategy is to generate organic revenue and earnings growth augmented by strategic acquisitions. JHA execute this strategy by: providing commercial banks and credit unions with core operating systems that provide excellent functionality and support in-house and outsourced delivery environments with identical functionality; expanding each core customer relationship by cross-selling complementary products and services that enhance the functionality provided by its core information processing systems; providing highly specialized core agnostic complementary products and services to financial institutions, including institutions not utilizing a Jack Henry core operating system, and diverse corporate entities; maintaining a company-wide commitment to customer service that consistently exceeds its customers' expectations and generates high levels of customer retention; and capitalizing on the company's acquisition strategy.

Mergers and Acquisitions

In mid-2019, JHA acquired Geezeo, a Boston-based provider of retail and business digital financial management solutions for an undisclosed amount. Geezeo's open and user-centric Application Programming Interface (API) allows for flexible integration within most FIs' online and mobile banking environments. Geezeo's solutions are sold to Jack Henry's core bank and credit union clients and to the non-core clients supported by its ProfitStars division.