Jack Henry & Associates, Inc. (JKHY) Earnings Call Transcript & Summary

Okay. Good afternoon, everybody. It is the top of the hour, so we're going to get this show started. To begin with, I am not Vance Sherard. My name is Dave Foss. I'm CEO and Board Chair of Jack Henry. I know many of you in the audience, but just in case I haven't had a chance to meet you, so Vance is supposed to be our host today, but Vance's plane is delayed. And so he should be here within half an hour or something like that. But we have a good lineup for you today, and hopefully, we'll give you lots of information that you didn't already have. So in front of you, you each have a book that has the complete presentation deck that you'll see today. So feel free to grab one of those. And of course, take notes and have that as a takeaway. I do also want to welcome the folks who are attending on our webcast. So we have -- we know we have a lot of people signed up for the webcast. So we're going to do our best as we're asking questions and answering questions to use microphones to make sure that everybody who's listening in on the webcast has a chance to hear what we're talking about. Before we get started, I do want to introduce 2 Board members that are with us today. So we have 2 Jack Henry Board members. They both happen to be sitting right here in the front of the room. So on the far at my left here is Tom Wilson; and next to Tom is Tom Wimsett. So both the directors from Jack Henry will be with us for the entire session and this evening for the session that we have after we're done here. By the way, the presentation, for those of you listening on the webcast, the presentation in its entirety is available out on our IR website at jackhenry.com. Before we get started, of course, I need to make sure you all are aware of the forward-looking statement. We will be sharing information with you during the course of this conversation, I'm sure that is forward-looking. So please make sure you are aware of the safe harbor provision that's printed in your book and is available on the screen right now. Okay. The agenda for today. So first off, like I say, I'm doing the opening and then I'll introduce myself. I'll do the state of Jack Henry. Mimi Carsley, who is our CFO, will do the financial overview; Greg Adelson will be with us to do an operations overview. Greg is our President and Chief Operating Officer. We'll take a break then for about 15 minutes, and then we'll resume with Ben Metz, who is our Chief Digital and Technology Officer. He will do our tech update. Brian Otte, who is our Chief Sales and Marketing Officer, will do a sales overview. And then we'll wrap it up with something a little different, something we've never done at one of these shows. Lee Wetherington, who is our Senior Director of Strategy for Jack Henry, he will do a presentation with you on FI technology trends. So this is about what's going on in the industry. Some of you may have heard of Lee before. Lee speaks professionally throughout the United States. That's his full-time job. He does not present on behalf of Jack Henry. He presents on the industry. So he is a well-known public speaker, speaks to a lot of banking conferences, but his topic always is, what's going on in the industry, not specifically what's going on at Jack Henry. So hopefully, you'll get some information that is relevant regarding what we experience as a tech provider in the space. We'll wrap up, of course, at the end of the day with Q&A. But I will point out that after each one of these sessions, we've allowed time for Q&A. So we'll make sure that if you have questions after any of these sessions, we will take questions after the session, after the presenter has completed their presentation. Following Q&A at around 5:00 this evening, then we will adjourn to our technology showcase. I know many of you have attended this session before what we have is several different demonstration sites. So we have experts here who will be happy to demonstrate new products for you, things like Banno Business and Financial Crimes Defender. So we have several folks that will be doing demonstrations. We'll also have some hors d'oeuvre and beverages. So if you want to stick around, we would love for you to stick around with us from 5 to 7 this evening, and we'll give you a little flavor of some of the new technology that we're rolling out of Jack Henry. Okay. So with that, I think I've covered all the things that Vance was going to cover before we get started. So we'd launch right into my overview of Jack Henry. So what I'm going to cover today is, first off, a bit of what does Jack Henry look like today? I'll summarize for you some of the key metrics, I guess, as far as what our company looks like, what we're doing. I'll review FY '23 so far. Obviously, we're not done with this fiscal year yet, but we have 9 months under our belt publicly and then, of course, another 2 months or 1.5 months now in the fourth quarter. So we'll talk about FY '23 in view. I will highlight a few things from our latest corporate sustainability report. We published that on March 31. So I'll give you a few highlights. But of course, all the detail is available out on the IR side. I'll go through a bit of an update on our tech modernization strategy. So last year in February, I announced tech modernization. It's been a little over a year now since we've been public with that whole strategy. So I'll give you a bit of a high-level of overview. But then I will point out when Ben Metz comes and speaks, he will go much deeper into a discussion about what's happening with our tech modernization and then we'll wrap it up with Q&A., any questions that you have for me at the end here. So first off, as far as a bit of an overview of Jack Henry and where are we today? The line that I always make sure I start with when I talk about our company is this one here. We are a well-rounded financial technology company. Why do I use that line? Because I want to emphasize to people, we are not a payments company. We do a lot in payments. We are not a payments company. We are not just a core company. Yes, we have outstanding core solutions, and we're known as an outstanding core provider, but we are not just a core company. We are a well-rounded financial technology company, meaning we have a wide variety of best-of-breed solutions that we offer to banks and credit unions every day. And so I stress that because sometimes, we get pigeonholed either as a core provider and people tend to forget, we have more than 300 other solutions that aren't core, or we get pigeonholed in the payments bucket, and yes, we do a lot in payments. But I really want to make sure that we stress the fact that we're a well-rounded financial technology company founded in 1976 as a reminder. So we're 46 years -- 47 years now into this business of providing financial technology. Today, if you look at our company, we are more than 7,000 associates strong. We, this past year, now surpassed this mark, where we have employees in every single state, including yes, Alaska, Hawaii, North Dakota, Idaho. Yes, you name one, I can name you an employee who's resident there. So we have a number of employees who are working virtually. We're scattered around the country. We have, as I just mentioned, offer more than 300 different technology solutions. We support about 7,800 -- a little over 7,800 financial institutions. And those are not all core customers, of course. So many of those financial institutions run complementary. What we refer to as complementary solutions, things that complement their core, whoever they happen to be partnered with. So a wide variety of bank and credit union clients do business with Jack Henry. 69% of our core customers today are hosted in our private cloud. So we emphasize that number. That number has been growing slowly, but surely for many years. So we're now at 69%. 99.8% of Jack Henry customers are community or regional financial institutions in the United States, meaning almost all of our customers, our community and regional financial institutions, banks and credit unions, resident in the United States. We have some customers that are not banks and credit unions. We have some customers that are in the Caribbean, for example, but primarily U.S.-based domestic customer base. And then you all know, last year, we ended at $1.94 billion, projecting to be some over $2 billion in revenue now in this current fiscal year. So a few things that we accomplished so far in FY '23. First off, solid financial performance. So you all hopefully are well aware of the solid strong fundamentals that we've delivered, a proven, sustainable business model that tends to help us get through uncertain times like some of the stuff that we've been dealing with here lately. We've had many new client wins and have more than a 99% retention rate when you exclude M&A. When the bank or credit union is -- a bank is acquired or credit union merges, we have no control over that. But if you exclude that, more than 99% retention rate among our customers. And we're adding clients. As I stressed on the last earnings call, we're back to that rate again of about 1 new logo per week, meaning new revenue coming to Jack Henry. That's not somebody converting off of 1 Jack Henry product to another Jack Henry product. That's new revenue, somebody leaving their current core provider and moving their business to Jack Henry. And we run at a pace of about 1 a week. And of course, Brian Otte will be up later on today to help flesh out that information just a little bit. We have continued to make great progress on tech modernization. We're going to talk about that quite a bit here today. So hopefully, you'll walk out of the room having a much better understanding of what we're doing and where we're at. And then of course, we enhanced our leadership team this year with the addition of Mimi as our Chief Financial Officer. You will recall that last year, we had several changes. That's when Ben became our Chief Technology Officer. He had been heading digital. So we refer to him as our Chief Digital and Technology Officer. Last year is when Greg became President of the company. He had been Chief Operating Officer. He became President. Renee was added as Senior Vice President and Controller for Jack Henry. So we've done a number of moves in the last couple of years to make sure that our executive leadership team is well positioned for the future, and we have outstanding talent in those roles, including, of course, the addition of Mimi. We're delivering a number of new solutions. And so it just happens to be this quarter is when many of these things are going live. So Banno business, which you've heard a lot about, you'll hear more about today from Greg. That goes live this quarter for Financial Crimes Defender, which we've talked about quite a bit. That goes live this quarter. And then FedNow, we go into beta this quarter. The Fed is projecting to go actually live in July, but we'll be in beta this quarter for FedNow with a number of clients. So lots going on as far as new solution delivery. We also, since the last time we were together, we delivered a new branding. So you'll notice on all the handouts that you have and certainly in the screen behind me, we go to market now under one brand, which is Jack Henry. So we don't use the ProfitStars brand anymore. We don't use the Symitar brand anymore. We are branded as Jack Henry, a single brand. And then we have divisions within that brand, so the Credit Union division, the Banking division and so on. And that has been really well received. And Brian is going to show you some of the statistics that shows the tremendous increase in engagement among prospects and customers with our company since that rebranding was completed. Then we've enhanced our employer brand as well. So as part of this move to zero in on a single brand as Jack Henry, that has facilitated the ability for us to kind of change the way we go to market as an employer, a potential employer for people, which has also had some really nice impacts for us where we can advertise ourselves as a single company, a single brand when it comes to attracting great talent. And then as I mentioned earlier, we published our third Corporate Sustainability Report. And again, I'll show you a couple of those statistics later on, but I would highly encourage you to go out to jackhenry.com to the IR site, and you can see the full report out on jackhenry.com. So many of you have heard me talk before about our theory about the way we run the company. And this has been true since Jack and Jerry founded the company and since they were running this company many years ago. We tried to operate focusing on these 3 pillars of success: try to create a great work environment for our employees. That's first and foremost. The idea being we'll attract great talent and we'll retain that talent, and they will deliver terrific solutions and terrific service to our customers. So the customers are our second pillar. If we're doing a good job with the first one, we should be delivering great service and great technology to our customers. So that's our second pillar. If we deliver that great service and technology, customers will want to buy more from us, they will want to stay with Jack Henry. And that, of course, delivers results to our shareholders and delivers that 99 -- more than 99% retention rate that we have with our customers. So let me explore each of these pillars in just a little bit more detail, and we'll start with our employees. So one way that I have to know how well we're doing in the eyes of our employees is all these Best Place to Work awards that you see on the screen behind me. You hopefully have noticed, Jack Henry wins those awards very regularly. And the good news about these awards is these are all totally objective. We have now -- this isn't us buying advertising or paying for an award or something like that. These are objective surveys that are conducted by all these different publications, and then they rate and rank us as compared to all the other companies that they survey. And so you'll see behind me. A few of these are regional. So you see Dallas down in the bottom left-hand corner. You'll see American Banker, Best Places to Work in fintech. I've highlighted that one many times before because American Banker only calls out 50 companies and they're fintechs, and yet Jack Henry has made that list now many years in a row. But there are a couple on here that have got -- that have grabbed a lot of attention here in the past couple of years. One is the Newsweek Most Loved Workplace award that we got a few months ago. So if you saw a copy of Newsweek, and by the way, if you've had to buy a news magazine lately, when I tried to go buy a magazine, I couldn't figure out where to buy one. But anyway, I finally found a hard copy and sure enough, right in the middle of the front page, there's the Jack Henry logo in the middle of the big heart with Newsweek. So great recognition there. And then up on the top right-hand corner, LinkedIn. So this survey, we didn't even know this was going on, and LinkedIn named us one of the best places to work in financial services. So terrific recognition for our company and all these different objective surveys that have been published lately. Now that's one source of information. The other source of information that I depend on as far as how are we doing as an employer is our employee surveys. And we at Jack Henry, do what we call a continuous listening process. So we don't do one survey per year and say, what do you think? The way we do our surveys is on the anniversary date of your employment, you will get an e-mail from me asking, first off, congratulating you on your anniversary. And then secondly, "Will you take this survey?" And so what that does for us because anniversary dates are totally random, what that does for us is it gets survey responses coming in every single day of the year, right? We have employees that have been hired almost every single day of the year, and so we get responses coming in every day of the year. And so we can pull a survey. We don't have to do any spot surveys to figure out what people are thinking. We're getting spot surveys every single day, and so we can roll them together and follow trending very accurately by month or even by day if we want to. So these are Q3 results for the fiscal -- the current fiscal year, and I apologize, I should say, fiscal '23. These are Q3 results. So 66% of our associates participated in the survey. The benchmark, by the way, is 45%. So we portend to have a much higher response rate than most companies. And then you can see the statistics there. 87% of the respondents believe in Jack Henry's values and so on down the line, including 84% feeling strongly that we demonstrate integrity at Jack Henry. So really terrific response from our associates as far as how they feel about working for our company. And again, we're getting that survey data daily at Jack Henry. So that was a little bit about our associates. Let's switch to that second pillar, which are our customers. And many of you have heard me talk about this over and over and over again. The thing that Jack Henry is known for almost more than anything else is our levels of customer service. We are known as a premier provider of customer service. I think what you have in front of you there, the screen in front of you would demonstrate that. So we conduct surveys of our customers, again, very regularly, every day, surveys are going out, and customers have a chance to respond and rate us as far as how we're doing. And what you have in front of you, that's for the month of March, our rating is a 4.74 on a scale of 1 to 5. So the thing I encourage you to think about there is if you're on a scale of 1 to 5 and you're going to average at 4.74, what that means is almost every survey is coming back with a rating of a 5, right? You can't average 4.74 unless most of them come back with a 5. That's why I say Jack Henry is most known for delivering great service. And we get somewhere around 80,000 surveys a month return. So this is not an insignificant number. This is a lot of surveys that go into that average. And so a really good, I think, representation of the service level there our folks deliver. Additionally, on the topic of our customers, and you all have heard us talk about this quite a bit. We are committed to investing in new technology, and we have been, for quite some time, investing at around 14% of revenue. That's our target. It's 14% of revenue. Now Mimi will give you the exact numbers, and that kind of goes up and down and up and down a little bit but our target is 14% of revenue. So what that does for us in this past year, generated $270 million that we put into R&D investment. That's a combination of expense and capitalized development. And some of the things that we're working on right now are listed on the right-hand side of the screen. And this certainly is not an exhaustive list, but this gives you some of the key things that we're focused on, like our digital platform. We talk a lot about Banno. And of course, that includes Banno Business on the top bullet there. Our tech modernization, logically, a large area of focus for us. Financial crimes, which is Financial Crimes Defender that you'll see here in just a little bit. PayCenter, and hopefully, you've all kind of caught on to the unique approach that Jack Henry has taken with this PayCenter solution. It's a payments hub. So for any real-time payments offerings, FedNow, the Clearinghouse, Zelle, they all connect to a single hub, and then that hub connects into the Jack Henry core system. As opposed to most people in the industry who are creating single point connections for everything, we create a single hub, they connect into the hub and then one connection into the into the core system. And we've seen just recently, consultants in our space have written articles about how efficient and how bankers should really try to find a solution that creates that hub experience as opposed to point-to-point integration. Of course, that's exactly what Jack Henry's strategy was, and we're having good success with PayCenter. And then I won't list out all those below that in detail, but you get the idea. There are certain things that we're really focused on. We have a lot of other areas where we're investing as far as R&D is concerned, continuing to invest in our core systems and other complementary solutions as well, of course. So we talked about our associates, talked about our customers. Let's talk a little bit about our shareholders. So revenue and EPS, I simply put this in here to show the comparison, kind of the trending year-over-year. Mimi, of course, will go into a lot more detail in her section. So she'll be the one to give you more detailed expectations there. And then I mentioned earlier that we published our latest corporate sustainability report. So I think this demonstrates well our commitment to our people, the associates who work at Jack Henry. Our commitment to responsible business practices. And we, at Jack Henry, are absolutely committed to doing the right thing as far as responsible practices, and then our commitment to the planet. And we've shared a number of statistics in the latest report. So one area that we've expanded quite a bit in the last couple of years is in the area of diversity. So we're publishing a lot more detail. This is just a snapshot here, but we're publishing a lot more detail now in the report regarding diversity, gender diversity and ethnic diversity. And you can see some of the trending Jack Henry in that regard. And then we have a Director now of DEIB. So you all know the acronym DEI. Well, at Jack Henry, it's DEIB. So diversity, equity and inclusion and belonging. And we're very focused on making sure that we create a workplace that is focused on all of those aspects for our associates. And then on the GHG emissions front. So we've published a lot of detail in the sustainability report. You can really geek out if you want to, on detail from Jack Henry in this area. I just included one slide here to give you a little bit of a feel for some of the major impacts, 11 -- a little over 11% cumulative reduction in greenhouse gas emissions since 2019, which is when we first published the report. You will have noticed there's just a little bit of an uptick in 2022, and that's because we returned to full travel. But we -- I think 2023 results will show a nice drop off again. And so we're very committed to ensuring that we continue to improve in this area because we know that it's a key consideration for many of our shareholders, and it's just the right thing for us to do. Okay. Let me switch gears here and talk a little bit about the industry. So one of the things that you'll hear more about today, in fact, Lee, I think, has based much of his presentation around what we call our strategic priorities benchmark study. So this is a study conducted by Jack Henry, and it's of customers in the industry talking about what are they focused on? So we have done this several years in a row. We just published the most recent study. We had 118 bank and credit union respondents to the surveys, ranging from less than $500 million up to $50 billion, and so we got a good representative sampling, I think, from customers at what are they focused on, particularly in the next 2 years. From a technology point of view, what are the things that you, our Jack Henry customers, are really focused on as you look forward? So one of the really good pieces of news for me in this was it validated what I had been hearing anecdotally about tech spending. So you may recall on the February earnings call, somebody asked me what we should expect as far as tech spending in calendar 2023. At the time, what I said was I didn't have any studies to quote. But anecdotally, I talked to lots of CEOs, I had hosted a CEO panel at the Bank Director Conference in Phoenix earlier in the year, which was not Jack Henry customers, they were just a bunch of at banks over $1 billion. I had hosted that conference. And one of the questions I'd ask there was, "What are you thinking as far as increasing tech spending?" And then, of course, just me talking to a lot of people in the industry. And I had arrived at an expectation of around 7% and as what I was hearing. Well, our benchmark study, which was just published, the information was gathered starting in January and through the end of March. But that study, you can see the results here. The most common, I guess, percentage increase was 35% in the 6% to 10% range, which, of course, includes the 7% that I had been hearing. So I still think that, that number is valid. Even as I stand here today, even after all the things that have happened here with Silicon Valley and Signature and Silvergate and just most recently, First Republic, still believe that this is a good number going forward. And we are certainly seeing that, if not greater, in the sales pipeline. Brian will share with you detail on the sales pipeline later on. But as I stressed on the earnings call, our sales pipeline today is larger than it's ever been. And it's fully -- it's much larger than it was in February. And on the February call, I said it was larger than it's ever been. So there's been a real significant uptick in the sales pipeline, interest in Jack Henry. And so when it comes to spending expectations, and I know the average of 7%. I'm sticking with the average of 7%, but the sales pipeline tells me that it's probably larger than 7%. One of the other key bits of information we got out of this benchmark survey was, what are you planning on spending money on? What are you focused on? So you can see here that 44% of the respondents, and that includes across the different asset stratifications, 44% said growing deposits. Why? Because you read the news. You know that the deposits have been a challenge for most bankers here in the last several months. Lots of people had -- lots of consumers had accumulated deposits after the stimulus money went out, and they've been spending those deposits. And so trying to fund loan growth has been a challenge now for a lot of bankers. And then growing loans is the second most common response. And then increasing operational efficiency was the third. The good news for Jack Henry is, of course, we have solutions that solve all 3 of those problems. And in fact, most of the things on this list here, Jack Henry has technology solutions that can help our customers regardless of what are these problems they're looking to solve. I will point out to you that as you look to the right-hand side, so that's the larger bank column, over $1 billion in assets, the 2 most common areas of concern there are growing loans, and then you go down a few account holder acquisition. So larger customers very focused on growing their account base and then growing loans, not as concerned about growing deposits as the other asset stratifications. So here's the 3 -- last 3 years compared to each other. And this one, I think, is really interesting to follow. So if you look at the #1 area of focus in 2021, it was improving digital offerings, right? Everybody was trying to figure out how do I provide a better digital banking experience for my customers. Last year, the #1 was growing loans. And this year, the #1 is growing deposits. So there has been a real shift over the last 3 years as far as areas of focus of these customers who respond to the survey. And by the way, this survey was conducted earlier in the year. About 2 weeks of the survey was after Silicon Valley melted down. So all of this data is not pre Silicon Valley, a good bit of it is post Silicon Valley as well. Okay. So then let's talk about what Jack Henry is doing to help shape the future of the industry. And of course, our tech modernization strategy is the primary topic when we talk about shaping the future of the industry. We're doing a lot of things that are related to tech modernization, but we'll spend most of our time here focused on why we think this strategy is a winner. First off, what are we doing? Why do we think that it makes sense to do this? And then why do we think this is a winning strategy for Jack Henry and certainly, for our investors? So if you look at the market today, there is a -- there is, there has been and continues to be a tremendous amount of disruption. And we believe that this disruption has created an inflection point for financial services. And there are 4 primary causes of this disruption. The first is digital transformation of financial services over time. So think about the things that you can do on your phone now using an app when it comes to "financial services" that you couldn't do 5 years ago or 10 years ago. There are many things that you can do today that has caused disruption in our space. Financial fragmentation. Because of all those options, there is what we've heard to as financial fragmentation. The average household reports 30 to 40 different financial relationships today. When you include all the different things that they do, that's created fragmentation. Down to the left-hand side there, shifting competitive landscape. So there are entrants in our space today that are competing with banks and credit unions that weren't there before. And then down on the bottom right-hand corner, the topic that you -- one day you want to talk about, the next day you totally want to steer away from, and that is this evolving hybrid monetary ecosystem, which essentially boils down to crypto, right? So after FTX, nobody wants to talk about crypto. But it is a topic. It will come back again as a topic that bankers are interested in exploring. And so we are trying to prepare our solutions and our customers to live in that world where some form of probably stable coin as opposed to strictly Bitcoin. Those are being used. There's maybe going to be a CBDC, although the Fed is totally backed off on that now after FTX. That's fine. That can reemerge as a topic in a few years. We want to make sure that our solutions are positioned to handle an evolving monetary ecosystem that is creating some level of disruption. The other thing that's contributing to some of this disruption is this aging of the population, right? There's a shift in demographics. And some of you have seen me use this slide before. I like this slide because I think it's really an easy, simple slide to grab on to. So what do we got across the bottom, generation. So we got boomers, Gen X, millennials, Gen Zers. Who has all the money today? The boomers. Who's the least technology adept? The boomers, right? But what's happening with all that money? As boomers are getting older, the money is being inherited by Xers and millennials and Zers. And if you think about who's starting businesses today, it's not boomers that are starting businesses, it's millennials that are starting businesses. And those millennials expect to be able to do all of their banking services using some type of a digital presentation layer. They're not excited about driving to the branch like the boomer is. They're excited about using some cool application on their phone to do their banking, not only personally but for their business. If they're running a small medium business, they want to be able to do everything, apply for the loan, move money, check, what's happening in their business, using their digital front end. And so that is key for our customers as we look to the future. And this is just going to happen whether anybody likes or not, right? Boomers are going away, and that money is moving from left to right on this slide. The other things I mentioned earlier, the average household reports having 30 to 40 different financial relationships, and that may be applications, but it's relationships, to manage all of these different things that they're doing today. So you have financial management tools, right, personal financial management. And you have checking accounts, credit cards. Yes, a credit card is a relationship with some bank somewhere, and it's oftentimes not your primary bank. You have savings accounts, health savings accounts, which, of course, are different. You have investment accounts, 401(k) accounts, mobile payments applications. So you add all those things up, I bet at your house, you have 30 to 40 different financial relationships as well. That is creating financial -- or a fragmentation. That is helping to redefine the industry that we operate in. And one of our jobs is to help our customers help their customers with all this disruption. There are 2 things today that remain constant. The first is disruption that we've just been talking about. And the second is technology continues to evolve rapidly. I mean just think about all the stories you've seen about AI here in the past 3 weeks, right? The evolution of technology is happening very fast. And so those 2 things, both are constants in the world that we live in today. When you look the disruption side, it's not just around technology, but there's economic uncertainty has been for quite a while now, continues to be economic uncertainty. Deposit churn, interest rate rises. I've been talking to a lot of bankers today who talk about, for the first time in years, I have customers now that are interest rate shopping, right? They're looking for the highest rate on a deposit. They haven't had to even think about that for the past 10 years. And all of a sudden, they have customers that are hopping from one account to another just chasing an interest rate. So interest rate is causing disruption. Financial fragmentation, we just talked about, digital currency, we talked about as well. Then on the tech advancement side. Cloud computing. Of course, today, we're going to spend a lot of time talking about public cloud as opposed to private cloud. So public cloud is AWS, Azure, Google, right, the public cloud providers as opposed to Jack Henry as a private cloud provider. We'll talk about the advancement of chips, artificial intelligence and machine learning, which really go hand-in-hand, faster real-time payments and then open APIs, which allow easy connectivity between different applications. Hopefully on the same platform, but not necessarily on the same platform. So if you look at our current landscape today, community and regional financial institutions have an extraordinary opportunity to reclaim their trusted relationship and trusted primary position with their customers. We view all this disruption that's happening, not as risk, but as opportunity. Certainly, there is risk in there, but we view this as an outstanding opportunity for our customers to expand on their relationships and offer new services, new solutions. Think differently about how they do banking because they can use technology to do banking, to offer banking services that are different from what they've done in the past. How can they recapture this opportunity? So first off, they need to come up with a clear growth strategy. And by the way, I talk to bankers all the time about these concepts that I'm going to go through on this screen. Number one, what is your growth strategy? One that has emerged as a very popular topic is what we refer to as niche banking. Find some niche that you serve, some group of customers, some skill set that you have, and go leverage that skill set. And forget about your service area as the geography around you. Think globally. Think nationally, right? Think big because you can do all these things digitally now. Your customers don't have to drive into the branch to do business with you. If you really employ a top-notch digital strategy, so think bigger. And so we have a couple of examples here, eco-friendly businesses, small business. Define a niche. So we have customers that are specializing in women-owned business, and they create a separate brand and a separate website. And they offer these services not just in their traditional service area, the geography that they're around, but they can offer it nationwide to a group of potential customers and existing customers. So think differently about the strategy. Second thing is make sure that you have a solid product and services strategy. So what you have on the screen here is just a mobile phone, but look at some of the things that are connected into that digital banking application. You can have Chime connected in. You can have essentially competitor solutions embedded into your digital presentation layer. You the bank, so that your customer is being served better, being served differently from what they can get any place else. What's your service strategy? So if customers are not coming into the branch and they certainly don't want to call you, I don't know if any of you have any Gen Zers. I do. The last thing they want to do is call somebody on the phone, right? They want to text them, they want to get online to solve a problem, okay? Make sure that your bank or credit union is positioned to handle those situations without anybody having to come into the branch or having to call somebody. At Jack Henry, we have that solution in place today. Millions of consumers using the solution today to interact with their customers -- or interact with their financial institution without having to come into the bank branch or call anybody. Why is this significant? Because oftentimes, those interactions involve private information. And so having a secure channel, like we have at Jack Henry, that allows them to communicate with their financial institution digitally through a secure channel, it's a unique offering in the banking space in the U.S. today. Jack Henry is live with millions of customers. It helps our customers think about how to broaden their service strategy and grow their financial institution without just thinking about geography. And then, of course, the last piece is modernize the overall technology stack. Make sure that everything you have underneath is modern and is positioned to help you grow and do all the things that we've just talked about here on the left-hand side of the screen. And of course, that's what Jack Henry is positioning to do, is to help with all of these areas to help our customers continue to grow. So on the topic of modernizing the platform. So what Jack Henry is doing and has done is created this platform that is public cloud-native, meaning built on the public cloud for the public cloud using all the tools that are there in the public cloud environment. So we provide multiple integration points, make it easy to integrate into our solutions. It is not just core though. We're doing this with our other applications as well. So Financial Crimes Defender that you're going to see out here later today, built in this environment on the public cloud. Banno Business, built in this environment on the public cloud, right? We're building, rebuilding and building these things to make sure they are public cloud native, and they are all connected through this technology layer. So we redefined the core. We're creating these connection options. We're helping our customers create this ecosystem that is much more than a core. It's a banking ecosystem. That's what we're providing to our customers using next-gen technology and next-gen solutions. Where are we today? And again, Ben is going to go into a lot more detail with you later on, but just kind of the high level of where we are. So we have been working to modularize pieces of the core. We have wires and authorizations live today. So they are available today. So wires, if you want to initiate a wire, for example, that's live today. And then authorizations. This is a big topic within financial institutions. Most applications, so if you think about software applications that are delivered to a bank, every application has a set of rules about who can use this application. And if they're in the application, what can they do? What we've created here is a single engine that can control all the applications. So I go in there once and say Dave Foss is allowed to do these things. I don't have to go to each application and say, "Dave Foss, Dave Foss." I just do it once. And that's a wonderful step forward for banks and credit unions to deliver efficiency. So those are in production today. And then you'll see several other of the key components that are rolling out Phase 1, Phase 2, Phase 3 over time here. But one of the other things that I want to point out here is there is no major conversion required for a customer if they want to start to adopt these solutions. So if you're a Jack Henry core customer and you want to start using the wires module that we've just rolled out, you can use that wireless module. It is built with an API connectivity option into the Jack Henry cores. But you may be running a competing core and you want to start using this wires module, same rule applies. As long as they're API-enabled, we can connect the wires module into a competing core as well. And that's the idea behind these services that we're rolling out. So as we look to the future, how will customers run this environment, how will they run with the Jack Henry platform? And there's a lot of information on this slide, but I'm going to kind of walk you around a little bit. We'll go counterclockwise starting on the left-hand side. So the components that we're delivering can be independently used with quick and frequent updates. Why is independently used important? Because they can use those independently with Jack Henry cores or with non-Jack Henry cores because they're all built to be API-connected, right? So think about each of those components as a fintech solution, a third-party company that has built a solution to originate wires, right? They have the solution out there called wires. That's the way you can think about one of these offerings from Jack Henry. It's as though it were written by a third party, it's a best read solution. It just happens to have been built by Jack Henry and owned by Jack Henry. We can connect it into anybody else's solution as long as they have an API layer that allows that. All financial institutions across the bottom using the same components, okay? So it's truly a SaaS offering. They're connecting up into the same components that are resident on a public cloud platform. Each component offers the same features for any financial institution. So through parameters, we can turn things on and off and make things customized, but we don't have to go and do custom software development for every single Jack Henry customer. And then you can directly connect components with other products, including other cores, but you may be connecting one of these components into a third-party fintech solution. That's fine. Again, as long as they have an API layer that's robust, we can take advantage of that connectivity option. With all that said, I stress all the time to our customers. We are not, in any way, shape or form, abandoning our current cores. We are absolutely committed to our current core solutions. We will be continuing to enhance those cores and serve those customers for many, many years to come. And that's one thing that's very important to me that this is not a forced march of our customers. You have to move from here to hear. But what we're doing right now is for those customers that are really forward-thinking and forward-leaning, we have a solution that we're in the process of rolling out. They can move to the public cloud whenever they're ready to do that with Jack Henry. For those customers who are not forward leaning, who want to stick with what they've got, we're happy to support you for many years. It's a great -- those are great solutions. We have a very efficient model, as most of you know. We only support 3 cores on the banking side and 1 core on the credit union side. So it's not like we have a whole bunch of cores that we have to continue to support. So it's very doable for Jack Henry to support those existing cores while we are rolling out this new ecosystem with not only our core systems but our complementary solutions for the future. So that's a little bit of a tech modernization. Ben is going to give you a lot more detail later on, but I did want to kind of give you the high level, what are we doing and why are we doing it to make sure we try to answer some of those questions that you might have. So as you look at our company today and look to the future, we, today, as I think about -- evidenced by the survey results that I shared with you, we have a highly motivated workforce at Jack Henry, highly engaged and loyal workforce at Jack Henry. We have this tech modernization strategy that is helping position our clients for the future. We feel strongly that we have the best strategy for the future, and our customers are validating that as they're examining all the other competitors out there. And we're getting terrific feedback about what Jack Henry is doing, particularly from prospective customers. We have high customer -- I shared the results with you. We believe highest in the industry. I know some of the analysts published their own reports on Jack Henry, and they tell me that our customers -- highest in the industry. And then, of course, we feel strongly that we're well-positioned to help address challenges for our customers today and into the future. So as we look to the future, we are focused on financial services. So I get the question once in a while about Jack Henry going this direction or that to try and find an area to grow our business. We are focused on financial services. We are experts in financial services, meaning serving banks and credit unions, and we still see a lot of opportunity to grow this company by taking share in our space and growing organically with the solutions that we have. We are continuing to enhance our products and services. Hopefully, I've made that clear with some of the discussion about the new products that we're rolling out. We're -- and Greg, by the way, will share with you details on One Jack Henry, which is on the services side of the equation, making sure that we're more efficient and serving our customers better. We are focused on customer service. We are committed to the idea of openness. So if you talk to third-party providers in our industry, meaning complementary providers, ask them, "which of the core providers would you most like to work with and connect to? Who's the easiest to work with?" I guarantee it, they will tell you, Jack Henry. That is by design. We are trying to be the easiest to connect to. We believe that's in the best interest of our customers. And so we want to make sure that we are the easiest to connect to. And I think these fintechs that you talk to will bear that out. And then we are always looking for acquisitions. Of course, I get the question a lot. When I do one-on-one meetings with all of you at different conferences. Jack Henry looking to acquire, what are you looking to acquire? You know us as being very acquisitive in the past, been a little tough to get a deal done here in the past couple of 3 years, primarily because of valuations. But we're very hopeful that, that will ease up again. We are active almost every day in looking at potential acquisitions. And so don't be surprised if you see us announce something at some point on the acquisition front. But ultimately, at Jack Henry, what we try to do every day is run this company according to these 3 guiding principles that were set up by Jack and Jerry when they founded our company. We are going to try to do the right thing, do whatever it takes and have fun, and make sure that we're creating a wonderful experience for our employees and our customers and then ultimately, like I said at the beginning, for our shareholders. That's our goal is to make sure we create this great workplace that our customers want to do business with, our employees want to be engaged with and then ultimately delivered great results to our shareholders. So with that, now is time for Q&A. We have about 15 minutes for Q&A. If you have any questions of me. So we have Justin and Mark with microphones. So again, I'll ask you don't -- please ask a question without a microphone in your hand. And Mark, I'll ask you first.

This is Anthony Cyganovich from UBS. Thanks for the presentation. I know you talked about FedNow earlier on. I was just curious if you could talk about -- I think I read in your press release earlier this morning that 20 Jack Henry clients are going to be early adopters of the program. Could you talk about what you think those early use cases are going to be for FedNow and what that revenue model looks like for Jack Henry?

Yes, I'll try not to steal. So Greg's got this in his presentation. He's going to talk about the FedNow rollout. So I'll try not to steal too much of his thunder, but we're very excited. And I think I mentioned on the earnings call that I was in Washington 2 weeks ago. Met with the owners of the FedNow program, so 2 Fed presidents and then the rest of the FedNow team in Washington talking about the rollout, talking about strategy, talking about use cases and other ideas. So we see a lot of opportunity with that offering. When it comes to use cases, things like gig workers, for example, that are trying to move money from their account, wherever that account may be, into their bank account. Immediate payment, an immediate movement of money at a much reduced cost or possibly free, depending on the financial institution. I think the thing that's going to make it this really interesting is, as we talk to the Fed presidents, they're working on what are those programs where the Fed makes payments where they're going to make it mandatory to use FedNow. So for example, VA payments. If the VA -- the only way you get your money is by accepting a FedNow transaction, that's going to up the volume, and that's going to create new use cases for us. But think about the other areas where the federal government distributes money. If they're using the FedNow rail as the only mechanism to distribute money, that's going to create a lot of volume and create a lot of potential use cases for us. So again, I don't want to steal Greg's thunder. He's got a number of things he's going to talk about just a little bit, but we will get paid. We get paid a nominal fee to get the system set up. And then it's a per transaction kind of model, like we have today with ACH origination, like we have with card transactions and with remote deposit capture. Justin -- Kartik, yes.

Dave, as you talk to your customers, what are they seeing as pressure points? What are they concerned about? Like on TV, we constantly hear that there is pressure on deposits, that banks aren't paying enough and so they're worried about losing deposits. And so as you talk to your customers, what are their concerns? Are they same as what we hear on the news? Or is it different?

Yes. So it's interesting when you listen to the news. So there's a few things interesting about listening to news. First off, when you listen to the news, they always talk about any bank under $100 billion in assets is a small bank. I don't think whoever rates that stuff realizes there are just a small number of banks that are over $100 billion, but they always describe all those small banks under $100 billion. So you hear us stratify the market all the time as banks over $1 billion and essentially $1 billion to $50 billion, over $50 billion to $100 billion, and then over $100 billion, and then those banks that are maybe $500 million below and $1 billion to $500 [ million ]. So that's the way we think about our market. Many of the banks that we serve and certainly none of the credit unions that we serve are public, right? They're privately owned. So many of the banks and all the credit unions are privately owned. So they don't have the same concern about public disclosure and talking about what's going on publicly or fear about what's going to happen to their stock value. They own their stock. They're not worried about that. And so they think differently, I think, than many of what you hear on the news. Our customers think differently about those topics. Certainly, we have many of our larger customers who are public, and they're dealing with the same stuff, but many of them are not. So today, as I talk to a lot of our customers, public or private, what they're really concerned about is, deposits, it's not a run on deposits. So I've talked to many of them who said, we've seen some deposit outflows, some deposit inflow. It's really been about a push for most of our customers. I've talked to some, interestingly, who have said, seen big inflows of deposit. I talked to one who had -- or 2 now that I've talked to, we had $200 million flow into their financial institution because people were diversifying. They had too much at one bank, and they were diversifying. So we've seen some ups and downs, but on balance, very little impact as far as any movement of deposits. So the concerns they have today are: number one, where do I get the deposits to fund loan growth? I got to go pay up to get deposits now. That's not fun to consider. But as I've stressed many times before, if you look back to the last -- look back to 2 years ago, our customers for years were running with loan rates that were here and deposit rates that were here. Their net interest margin spread was almost nothing. Okay, fine. Now loan rates are up here, deposit rates are coming up here. They're going to be back to where they were a few years ago, but they did that for years. They ran on a very skinny net interest margin spread. So they know how to do that. They're not excited about it, but they know how to do it because they they did it for several years. So they're thinking about that. They're trying to anticipate loan losses. And so you hear on the news all the time they're talking about CRE, right? Commercial real estate, all these high-rise business -- or buildings that have occupants where people aren't showing up at the office anymore. Rarely do our customers own high-rise buildings in Dallas or Denver or in New York. Generally, their CRE portfolio is warehouses and some manufacturing facilities and that kind of thing. None of them are concerned about movement there. So certainly, there are some that have real estate that is more of office space, but not a big concern among our customers. And again, nothing -- none of them on the credit union side. And so our customer base really has been very stable and very -- I won't say they're unconcerned, they're certainly concerned. But they're mostly unaffected by everything that's been happening here recently. So their focus has been on how do I grow deposits when I have to pay up? How do I fund loan demand? Do I need to tighten down on extending credit? And then is there going to be -- are there going to be loan defaults that we don't see? When we don't have this big concentration in office space, is there something else that might happen? I got Dave in the middle here, yes.

Dave Koning at Baird. So my question in the survey, you talked about real-time payments and what percent of clients were interested in that. The bigger banks, the [ 1 to 50, ] were only 8%, the smaller ones were, I think, 16% and 21%. I would have assumed completely the flip.

I think it's because most of the bigger ones have an offering today, right? So they already have -- they probably have Zelle in place today. They probably have The Clearing House. Jack Henry, we have -- so this was just Jack Henry customers, 67%?

60% of...

60% of The Clearing House customers that are live are Jack Henry customers, right? 60%. If you talk to The Clearing House, 60% of those banks that they have live are Jack Henry customers. We've been very out front when it comes to real-time payments. And so many of them are larger customers. So I think it's logical that the larger customers would say, I've already got a solution. That's not at the top of my priority list.

Got you. And just one follow-up. So 69% now of your clients are outsourced. Something like it's got to be 1,100 outsourced, 500 in-house. If you do 50% a year, which is kind of an average, in 10 years, you're 100% outsourced. And the question is when they are outsourced, do they tend to grow faster because it will be a headwind to growth when you don't have the shift anymore, but is it a tailwind to growth just to have more outsourced clients?

It is a tailwind to growth to have more outsourced clients. Absolutely. Yes. I don't know that I can say so much that they grow faster when they're outsourced. But by moving those customers over, that has continued to be a tailwind for us. And oh, by the way, so yes, your math is approximately right. If everybody went outsourced, so if you take about 10 years, but let's say that it takes 7 years. Okay, we have this whole new revenue opportunity that we're just barely, getting started by moving from private cloud to public cloud. So what you'll hear us talking about a few years from now instead of in to out, which some of you have followed us for a long time, we talk a lot about in-to-outs -- in-house on-prem customers moving to outsourcing. So in the future, you'll hear us talking about Jack Henry private to public, and that's going to create another revenue opportunity for Jack Henry as we go through that transition. So you'll see that start all over again in the future. All right. Yes.

Michael Infante from Morgan Stanley. Maybe just on the number of competitive core takeaways, obviously, it sort of speaks to the share gains that you guys have been able to achieve over the years. But as I just think about the broader tech modernization strategy, is there a risk that you could find yourself in a state of permanently lower core conversions? And if so, have you tried to sort of size the amount of module adoption you need to sort of offset that potential headwind?

So I understand your question. Theoretically, is that a risk? It is, but I think it's highly unlikely because bankers CIOs think in terms of most of my tech stack is going to be this with one provider. I don't want to be managing 52 different vendors on kind of the primary functionality that I need to offer as a bank or credit union. So most of them, I believe, and through the conversations we've had, this is bearing out, will want to focus on one primary provider, Jack Henry, and then offer the connections. I would flip it on you and say to you what this really does for us because of all these modules that people can consume that are not on a Jack Henry core. It creates a whole new opportunity for us to start to essentially convert them to a Jack Henry core, without a conversion actually happening, right. ?That's the opportunity for us as we continue to roll that out. Anybody else for me -- over here. Okay. Chris?

Chris Kennedy from William Blair. Any general observations between your bank customers and your credit union customers and how they're reacting in the current environment?

To the tech modernization? Or are you talking about...

Just in general.

Just the banking environment today. Yes, credit unions -- credit unions are not public. And so generally, even the large credit unions that I've talked to have said not really directly impacted by this. We've had to have some conversations with our members, but not really directly impacted by any of the stuff that's been going on here in the past couple of months. It's been on the banking side. A lot of bankers reported doing a lot of customer outreach. When Silicon Valley happened in particular, that week after Silicon Valley, a lot of bankers talked about their whole executive team being on the phone, making sure they talk to key customers, particularly medium -- small medium business customers and commercial customers, I'll just put it that way, to make sure that they didn't have some concern. The good news for them is they feel like they know their customers and their customers know them. And I'm talking even $17 billion, $20 billion banks. They generally have a really good relationship with their customers. And so they felt like they knew who to call, they knew who to talk to, they knew what the message needed to be. You've seen some that published messages on LinkedIn and that kind of thing. So for most of them, I think it was about communication, just making sure that people didn't overreact. And the response has been, yes, it took a lot of time to communicate, but the response from customers was, yes, we knew you were going to be fine, and we're okay. So that's been the overriding theme on the banking side. And again, as I say, on the credit union side, hasn't really been much of that disruption at all. Anybody else? Right here, Justin.

Matt Roswell from RBC. We've talked a lot about the environment. How about the M&A environment among banks and credit unions?

Yes. So M&A is really at a standstill right now with the exception of -- so it's interesting. There were some banks that were doing some small deals just trying to grab deposits before Silicon Valley Bank happened. They were trying to find deposits. So there were a few deals happening. Today, I think most bankers would tell you that they think valuations are still out of whack. Their stock has probably taken a hit. So the acquirer feels like it doesn't have a currency to do a deal. The seller still thinks that their bank is worth more than it probably is. And they don't feel necessarily compelled to sell at this point. I did have an interesting conversation with one banker who was talking about as a private bank, with a whole mark-to-mark thing that they have to do with the bond portfolios that they have, if they're a public bank, the private bank can do that. They still have to go through the exercise, but they're not so worried about some shareholder who's going to object to what they're doing because their shares are held by -- they're closely held. And so some of the larger privately held banks were saying, "I may have an opportunity here that my larger public bank doesn't have because of all the markdown they're going to have to take." So there's some of that going on, but M&A volume is still very low on the banking side, and we don't see any major uptick on the near-term horizon. Anybody else? Darrin?

Guys, I mean, I'd just be curious to hear a little bit more about the competitive landscape in terms of some of the most in-demand offerings that you showed in that survey. And you guys have done a good job innovating whether it's Banno or other offerings. But in some ways, we've seen competition change because of the pandemic, where I think a lot of the newer questionably disruptors looked like they had a lot of progress to be made, and now they seem like they're faltering in some cases.

They seem like what?

They're faltering a little bit now, some of them, at least, without the right amount of capital behind them. On the other side, we see some of the bigger companies that you compete with that have other challenges going on. So I'm just curious where you find yourselves now competitively if you're seeing an easier time or a harder time earning a change?

Yes. So I'm not going to talk about any named competitors. That's not what I do. But I will tell you, when it comes to the competition, I feel strongly, it's a good time to be us right now. On the larger competitor side, we are very well-positioned against our larger competitors. And as you point out, some of those -- some of the fintech competitors that were kind of emerging and felt like they might pose a challenge for Jack Henry, several of them have really had some challenges. I don't know exactly what's driving that, whether it's -- they're PE-funded and they're not getting the funding that they were used to or if they've had people leave because of layoffs. I know some of those smaller fintechs that we're really growing quickly, and they were adding people as fast as they could. Now they've done a bunch of layoffs, and some of the stars are gone from people's eyes and they're looking for a new home. We've had some of those folks come to Jack Henry. So I think there's a good bit of that going on when you combine what's happening with our larger competitors and what's happening with some of the smaller upstarts that were potentially solid competitors to Jack Henry. We are continuing, steady Eddie, doing what we do. We haven't done any layoffs. We haven't done anything as a major disruptor to our employees. They feel great about what we're doing as a company. And I think our customers feel great, as evidenced in the surveys that I shared with you earlier. So we're in a very good spot today, not that people are beating down the door saying, let me sign an order with Jack Henry. But like I mentioned earlier, the sales pipeline, again, much larger than it's ever been. I think part of that is a reflection of what you're alluding to. Anybody else for me? Looks like I have one minute. Okay. Hearing none, then it is my great pleasure to introduce to you our new -- not so new anymore, but our new Chief Financial Officer, Mimi Carsley. Of course, Mimi has been with us now for several months. But this will be her first opportunity to present you at Investor Day. So Mimi me, if you would.

Thank you, Dave. Hello, everybody. Thank you guys for being here, both in person and everyone watching virtually. I see a lot of familiar faces. But for anyone I haven't had the pleasure to meet yet, I'm Mimi Carsley. And as Dave said, I'm the CFO here at Jack Henry. So I appreciate how attentively everybody has been listening for about the last hour-plus. But if anyone wants to get up and stretch, this is your opportunity, a quick pause. It's hard to, I think, post pandemic, all of our attention to sitting for a long periods of time has been shortened. So today, I'm going to talk a little bit about myself, give you a brief intro, talk about what brought me to Jack Henry 10 years ago -- 10 months ago, it feels like 10 years, 10 months ago, and then our recent performance and the remaining outlook for the fiscal year. I'm also going to give you my personal perspective on the Jack Henry investment story and handle a couple of questions if we have time. I'm a strategic CFO. My passion is focusing on corporate finance, M&A, reporting, analytics and strategy. I'm really a true finance geek. I love data. And my team would tell you, I love a good dashboard or report. So I'm the mother of 2 teenage children who spoiled me yesterday and were kind enough to take me out for an early brunch so I could be here with you today. However, they did not consent to the use of their photograph. So you get my cute dog Charlie. This is Charlie, our mini Goldendoodle, COVID puppy, doing what he loves to do best, which is sticking his head out the window as I drive around town. So according to ChatGPT and a University of Leeds study, just looking at cute Charlie here, just lowered your anxiety, your blood pressure and your heart rate. So you're welcome for that. So with that, why did I choose to join Jack Henry? It's rare to find a 40-plus-year-old company with proven, demonstrated executional ability, yet an entrepreneurial mindset, focused on innovation and growth. As a CFO, I love the high-quality earnings, so transparent and clean and hopefully making all of your jobs a little easier, too. I found the leadership team, high integrity, low eco group, operating in as one. And if today's travel logistics proved anything, we're a pretty agile group who kind of just rolls with the punches. We had some flight delay issues earlier. So little straight about me. As I said already, I'm already a data geek. Well, I also am a little bit of a book nerd as well. So early in my teens, even through today, some of my favorite books are leadership and company profiles. And one of my favorite was In Search of Excellence. So if you know the book, it profiles these really unique companies, just doing differentiation based on culture that ultimately lead to their success. And I feel at Jack Henry, I've now joined one of those amazing remarkable companies. So -- and as you can see, I'm a bit of a fan of the Jack Henry Blue. Now what kind of CFO would I be if I didn't show some numbers. I'm not going to spend a ton of time on the numbers because most of you guys participated in our earnings call 2 weeks ago. But the trends that we've seen year-to-date, lower deconversion revenue. Dave spoke a little bit about the lower M&A market within the bank space, has impacted our GAAP results. On a non-GAAP basis, though, we've seen great strength across all of our segments. For Q3, we posted an 8% non-GAAP revenue growth that sets up for a strong finish to FY '23 and good momentum heading into FY '24. We've been focusing on cost reductions and have had modest margin expansion. I'll remind everyone, at the start of this year, we were seeing inflationary pressures, grow over pressures. And we weren't expecting much in the way, if anything, in the way of margin expansion. So we're really quite pleased with this year. And I think, as I said, it sets us up for a good, strong 24%. On a full year basis, we're on track. And if anything, I would say that there's probably some bias to the upside. We're early in our budgeting, which Dave has coined, the most wonderful time of the year at Jack Henry. And so we'll give specifics on the Q4 call as it pertains to FY '24. So early in my career, I joined Microsoft as a portfolio manager. When I started, we had $2 billion in corporate cash. And over my tenure, I watched that and helped that grow to over $25 billion. I love digging into companies. And although we were primarily fixed income-oriented, I kind of fancy myself a Nancy Drew, if you will. The younger people in the audience, maybe a Veronica Mars might be more relevant. People may not know who Nancy Drew is. But today, I'm going to put on my investor hat and kind of go back to my PM days. I'm going to share with you my investment thesis on Jack Henry, the 6 tenets and my conclusion of a compelling performance prospects. A little sneak peek, you won't be too surprised at my conclusion, but the predictability, credibility, durability, especially valuable in the current market conditions. So let's jump in. As Dave spoke a lot about and I intentionally put first, culture as it is a differentiator. From Day 1, as I onboarded, I heard these most amazing stories, from long tenured associates and newbies like myself, stories of late nights in a bank, helping a customer prep for a conversion or from our Jack Henry pilots helping cancer victims get to an angel flight. To myself, remembering walking into the San Diego Convention Hall, to seeing 300 fintechs, including our competitors, in the pavilion. And just as Dave mentioned, that openness, that doing whatever is in the right best interest for our customers. Jack Henry is truly a people-first culture and we have people-inspired innovation with the service, support and partnership backbone. And this not only applies to how we look at how we treat our associates and our customers. It also guides our shareholder and investment community approach. Transparency, access, our ESG efforts, I truly believe Jack Henry is a force for good. So the first rule of investing as a PM, make sure you're serving a large and attractive market. And even though the number of financial institutions has been declining, it is still a large market, and FIs are growing. If we think about -- we serve over 900 banks, over 700 credit unions. And there's over 6,000 noncore customers that are using, on average, at least 3 Jack Henry products. And while we've been gaining market share, there's still room to grow across all asset categories. Dave mentioned the recent press defining small business, $100 billion bank as a small bank, and it's just not true. There's a large healthy ecosystem of smaller institutions. Jack Henry is dedicated to supporting them, Main Street America financial institutions, helping them serve their customers and stay competitive through technology. I can't underscore the importance of regional community financial institutions, the flexibility, the customization, the service that they provide and the deep knowledge they have of their individual and commercial customers, particularly around lending, the things they're capable of doing to serve their communities. They play a critical role in the U.S. economy. So as a PM, you want to invest in just 1 stock even though I would say Jack Henry's track record would have served you well. Diversification is key. The old cliche, don't put all your eggs in one basket, is certainly valid. The Jack Henry model has layers upon layers upon layers of strength, multiple sources of revenue and expansive portfolio of solutions and many customers, altogether limiting concentration risk. We operate 3 segments: core, payments and complementary, each a durable grower. And we deliver and support mission-critical solutions that are deeply embedded in the financial institutions. These are not discretionary products. Our SaaS model, multiyear contracts where we benefit as our customers grow. We have over 7,800 customers with no 1 customer representing more than 1% of revenue. We have strong retention at over 99% and multiple relationships that are over 20 years in duration. Jack Henry's model is resilient, diverse customer profiles, strong retention and multiple revenue streams. So what does this model produce? So I know you would love me to be here speaking about in-depth FY '24. But as I said, it's just a little too early for that. And as Vance will talk about a little bit later, we're thinking about shifting the timing of this conference so that we'll be able to share that news with you. So let's talk at a high level. Jack Henry has consistently and reliably delivered 7% to 8% growth, and that's been proven by the last several years of results. And to put that into context, we're talking about a $2-plus billion revenue base. So to get an extra 1% of revenue growth would require about $20 million. So the drivers of our revenue growth. Core, the shift as some of you just spoke about in the questions, the continued shift from on-premise to cloud, a robust prospect pipeline of new clients and our existing customer growth, both organic and inorganic. In payments, we have card growing at upper single digits. We have EPS growing at mid- to single -- upper single digits, and bill pay at low single digits. Now it's early days for Payrailz, our most recent acquisition, just like it's early days for me. And I think so far, both are going pretty well. And I'm feeling confident about the prospects. And while Payrailz is growing nicely, it's still not enough to have a meaningful contribution in terms of the overall segment. But we're really pleased with the integration so far. Our complementary business headlined by Banno and our digital solutions and a large and diverse portfolio of products. So together, that contributes to about 7% to 8% of near-term growth prospects. Might have a little conservatism built in there. There are some segments, particularly around payments, that relate to U.S. consumer sentiment. So based on FY '23 results to date, our guidance, the current momentum we see and early budget discussions, I feel good about this range. And as a reminder, Jack Henry's model, revenue growth leads to margin expansion. So as a CFO and past Treasurer, it is rare to have leverage as low as Jack Henry. I kind of feel like Charlie in the breeze. Jack Henry's history of a conservative and strong balance sheet with no permanent debt and very quickly paying down any M&A strategic debt. And that approach will continue. We have a model of high recurring revenue and attractive margins. At Microsoft, we used to say the magic of software. And it's ideal for cash generation. Now FY '23 cash has been impacted by lower deconversion revenue and onetime tax payments relating to legislation around development expenses. But we expect a continued return to in-line historical cash flow levels. This strong cash flow allows us to fund innovation, consider M&A and return capital to shareholders. We balance investing to support the sustainability of our model with returning capital. We're committed to our dividend policy, and for the last 34 fiscal years, have increased our dividend. Year-to-date, FY '23, we've paid more than $109 million in dividends. We're mindful of share dilution and believe that returning excess capital to shareholders through repurchases. Our payout to shareholders over the last approximately 3 years has been over $1.2 billion. We're a disciplined investment investor, and we make decisions that have resulted in an impressive ROIC of over 20%. In summary, we're committed to sustainable shareholder value creation and returning investor capital. So while I work for Jack Henry, I also represent the shareholder interest, and I'm committed to being a responsible steward of our investors' capital. As Dave mentioned, the last 3 years, we saw a lack of attractive M&A prospects, both because of valuation and just the stories that were out there. So instead, we increased internal development efforts and the return of capital to investors. Our capital allocation approach remains fundamentally consistent yet will be dynamic capital allocators. Our priorities, maintaining liquidity, reinvesting for growth, paying dividends, M&A and share repurchases. These categories will be consistent over time, but the amounts might fluctuate based on opportunities and market conditions. So the last 2 slides talked about our R&D, over $1 billion in recent years. As Dave mentioned, we target 14% of total revenue, and it centers around 9 capabilities. I won't go into those in too much detail, but themes around modernizing and securing our tech platform, enhancing solutions, delighting our customers and streamlining operations. We're opportunistic yet our disciplined approach to M&A. And we've been lucky to build an enviable track record. People often ask, what type of M&A do we look for? So I'll go into that a little bit without naming names. We look for things that accelerate our technology road map, technology that's digitally cloud native, things that are additive to existing portfolio of products, modernizing or enhancing solutions and, of course, things that are financially attractive, both in the reasonable valuation but also in the near-term accretion. We are an experienced acquirer, but let me say we are not reliant on M&A to meet our strategic goals. Okay. So let's look at the summary picture. And as a CFO, my picture is numbers. We have lots of happy, loyal customers, many of whom are growing; diversification of customers and products, you had a disciplined focus on serving FIs; a SaaS model of high recurring revenue; an attractive and consistent growth that's not dependent on acquisitions; and a model capable of continuous margin expansion. So what's the net takeaway? In my portfolio manager opinion, Jack Henry is a premium franchise with limited macro sensitivity, a durable and predictable grower, producing high single-digit performance and margin expansion. We deliver both growth and profitability. We have the operations and products to meet both today and future client needs. And we have an experienced management team with a strong culture of doing the right thing. We're innovating for new solutions and supporting our FI's growth. And we're an experienced M&A buyer, which provides some optionality. And importantly, we have enduring financial principles, dedicated to creating shareholder value. So for me, Jack Henry is a buy. So with that, I thank you, and I'm willing to take just a couple of questions before I turn it over to Greg.

This is Anthony Cyganovich from UBS. So I think maybe I missed it, but could you just help me better understand what you mean by a normalized year as a point of clarification. And then secondly, it looks like the payment segment's on pace are about 7% growth in FY '23. Could you talk about what are some of the drivers that get it up to that 8% to 9% range?

Yes. So the way we talk about normalized and we're waiting for a good normal year, we thought this was a coming out of the pandemic. But I would say this historical recent history has demonstrated that we produce around 7% to 8% growth. So in a year, if deconversion isn't wildly off, if you don't see us go into a huge recession, if there isn't something pandemic, what we think of as a kind of typical normal year, what would the engine produce? And you're right. Payments is on track for around 7% growth. And this year, we've talked a little bit, and we actually talked about, as we reduced guidance earlier this year, one of the things we pointed to was the payments. And it's not because it's not growing. It's actually growing quite lovely. It's a strong grower for us. But because of consumer sentiment and thinking about transactional volume tied to consumer sentiment. We wanted to be a little bit conservative in that. We did see a little bit of falling off. We anticipated it falling off in the back half of this year. And so we think this year will be a little lower than we had hoped at the beginning of the year from a budget perspective. But I'll restate, it's a very strong grower for us.

Can you just talk a little bit more about the margin expansion profile of the business and some of the levers that you have going forward?

Sure. So I won't put a specific number on it right now because, as I said, it's a little early in our budget season. But some of the wins we have in terms of the on-prem to cloud, that doesn't come with a ton of cost, but it comes at 2x revenue. Things like that, our continuous improvement efforts. An example is, Brian, who will come up in a little bit, we've upped the sales quota year after year with no new headcount. So there's a lot of levers in our business that we think about that doesn't require more cost. But as revenue grows, it produces margin expansion. Dave needs a mic.

Yes. Thanks, Mimi. So I had a question on Payrailz. It sounds like it's going quite well. I know you reduced guidance a bit on revenue for this year, but it sounds like nothing has really changed as some of that falls into next year. Maybe how do you see that growth profile? And what's going to drive that going forward?

Yes. So it -- about early days, we actually closed the transaction just about the start of my tenure. We're really pleased with the quality of the technology, the people, how sales is going. We did have some hiccups, some surrounding -- Greg will talk about in his presentation, some surrounding third-party that led to some timing that revenue is still in the pipeline. It hasn't been removed, but you'll see that more in FY '24 than '23. So some of it was very timing-related. I would say that on the spectrum, while we were super excited about Payrailz, about their technology, about the revitalization of a payments platform, and it is just that, it's not just bill pay, it's a platform. This total size of the revenue relative to the $2 billion at Jack Henry total revenue is not materially significant. But in the future, some of the continued work of integrating that into one seamless solution, being able to modernize that and have migrations from existing customers and competitors. And then some of the work, as Dave mentioned, FedNow and all the excitement around Payrailz, we think that product is in for a nice healthy ride. You need a mic? Hold one sec. There a mic coming to you next.

If we think about the overall growth algorithm, you've talked a lot about -- you and David talked a lot about migrating customers from legacy platforms to newer platforms, whether it's Banno or Payrailz. So with that in mind, could you give us some high-level comments on how much of the growth algorithm is coming from incremental customers as opposed to existing customers that are either migrating or getting cross -- or you're cross-selling new products into?

Yes. I won't put specific numbers on it, although we can talk offline after. But In any 1 year, and we like to talk about the 50 wins per year, the core wins, depending on the product, it can be implemented in-year, if it's complementary product. If it's a core product, it's likely not to be in-year revenue. So in any 1 year, the growth algorithm is more biased to existing customers growing and transactions than it is a ton of new in-year new sales-related.

Mimi, I think on the payment side, you talked about a portion of that revenue being impacted by consumer transactions. What percentage of payments today would you classify in that segment?

Yes. I would say roughly about, call it, 20% to 25% of total Jack Henry revenue has some touch of correlation to consumer sentiment. And so whether that would be our cards business, which is more debit than credit, or just transactions in general, has some component of correlation with consumer sentiment.

And so most of it would be in the payment segment then?

Yes.

Tyler DuPont with Bank of America. Just to follow up on the M&A front. Can you just speak to the size of the deals you're looking for? And then whether or not they're tuck-in or more transformative in nature? And then just the financing options we're looking at, given where rates are right now?

Yes. So I wanted to say that Jack Henry, anything is off the board, per se. We've looked over the history, and Dave and Vance have done over 30 deals in their history at Jack Henry. And we've looked at large public companies. We've looked at very small private companies. I would say all of them have to fit that same requirement in terms of additive and accelerate to technology makes good financial sense. Where we see the sweet spot would be a deal like Payrailz, a 2 plus 2 equals 5 scenario, where it modernizes a technology and a product that may be aging, revitalizes that, it accelerates that technologies, advancement on to a digitally cloud-native platform. And so it's additive. So I would say that's kind of more than the size per se that you would see. Yes. I mean, capital is no longer free for sure with where rates are at, but we're always judicious. We are not going to be the top buyer in terms of the amount we'll pay for a valuation, which is why we didn't do deals very many deals over the last 3 years. So certainly, having a higher hurdle rate from a cost of capital perspective will certainly play into our analysis.

I think I saw earlier on in the slide presentation that Jack Henry was sort of like a Breakthrough Award recipient for the loan origination platform. I'm curious if you could sort of give us a little directional color either by revenue or percentage of your clients that have adopted that solution. Or maybe more broadly, sort of just the actions you've taken to sort of reorient the sales force to make sure that your customers are aware of the functionality that you have in-house?

Sure. And I think both -- Dave is going to take that one.

Well, I just figure just in case you wanted to phone a friend. So yes, I've talked quite a bit about that. I was specifically focused on online commercial lending. So that's what that award was for. You've heard me talk on a bunch of earnings calls about all the advancement we've done when it comes to commercial lending online. The reason that's important is because traditionally, if you think about commercial loans as opposed to consumer loans, for commercial lending, the expectation of the bank was that the commercial borrower would come in and sit down across the table from the lender and hash it out. And with the changing demographics, as I highlighted earlier, those days are changing. And so we, years ago, started to focus on creating a best-of-breed experience for commercial customers to do a complete online borrowing experience. And that's the award you're referencing. So we won this year as best-in-class for an online commercial loan origination platform. We have, I think, it's around 250 or 200 customers live, somewhere in that ballpark today, on that platform, but lots of interest in that. Again, because of the changing in demographics because of the commercial borrower not wanting to have to go to the bank branch there is continuing demand for a solution like that.

So there will be more Q&A at the end of the day, and I'm happy to talk to anyone during the reception. But with that, I'm going to turn it over to Greg. Thank you, guys.

So good afternoon, everybody. I was one of the ones that was part of the plane issue, so I apologize that I got here a little bit late, but good to see some of you. For those of you that don't know, I'm Greg Adelson, I've been here almost 12 years. Actually kind of started in the payments business. We actually ran our Bill Pay business a year after the acquisition of iPay. Then I ran our Payments businesses up until 2018, and then became Chief Operating Officer in 2019. My responsibility includes all the technology. So Ben and his team, everything that we do on the product side. And then recently, as of January of this year, I now took on the Sales group as well, so Brian and his team. So very excited to be here. And you've heard a lot from Dave on what we're doing as a company, Mimi kind of talking about the numbers and getting into some specifics. I'm going to talk about the plain-old vanilla operational excellence and our ability to execute better in some of the initiatives that we're doing and some of the products that we have. So I'll give you a couple of the products that Dave alluded to earlier in the tech modernization and things that we've been focused on. I'm going to give you just a higher-level dive into One Jack Henry, what that is and why we started it. And then the Payrailz acquisition update, which I heard Mimi give a little bit on, but I'll provide a lot more detail. And I'll probably go back and answer a couple of those payment questions, too, that I heard and give you a little more color on a few things, too. On a key product update, so Banno business, you've been hearing about this for several years. We are extremely excited that we really -- based on some things that we needed to change, the fact that we got Ben in as our CTO and kind of making some of the changes we needed to make there, we are absolutely on track. We now have a solution that's in place that isn't this large commercial solution that are out -- is out in the market, but it's a solution that's really tailored for the smaller SMBs and an opportunity to provide our large number of retail customers, our 9.4 million users and 700-or-so institutions with an option for a commercial side. And then we also -- Dave talked a lot about what we're doing with Banno conversations. He didn't actually name that as conversations, but the ability to have an authenticated chat in with the product set. You'll see here on this next slide that we've actually now put that into our business offering as well, which is something that nobody has in the marketplace. Nobody actually has the Banno conversations done in the retail side. But now that we've added it into the business side, it's even that much more important because you can have CFOs and presidents of companies talking to each other in a very authenticated manner to allow those transactions to take place a lot more seamlessly than they have in other platforms. The good news for us, as you can see at the bottom, we now already have 345 contracts done for Banno business. A lot of -- we might say, well, how is that happening? Well, we obviously were able to start selling the platform ahead of the delivery of the product based on the progress and interest in what we had with the retail side. The retail side, it's important that you actually have to have the retail platform to buy the business platform. You cannot buy that separately today. But again, 345, 42 that are already active out there in the marketplace. Most of those are on the banking side. We do have several on the credit union side live now as well. But as we've been mentioning on our earnings calls, we will be generally available July of 2023 for the Silverlake product in September of 2023 for our credit union solution. Another key product, and it was just mentioned, was Financial Crimes Defender. I think this is another indication, and you'll see this later in my presentation when we talk about One Jack Henry and our ability to better provide excellence in execution. This is a product that we earmarked about 2 years ago that we were going to start. We were going to replace our Yellow Hammer solution was something that was more kind of newer technology, cloud native, as Dave mentioned, API-driven opportunities to do that in a much more seamless fashion than some of the things that we were doing previously. And the good news is, is that we set to the date to go in beta in December of 2022, and we hit that date, exactly to the time frame that we said. We're super excited about this type of solution. As it says here, it's really an opportunity to provide real-time fraud. So you'll see a component of this is tied to our PayCenter product and then, of course, anti-money laundering and our full compliance platform. The other thing that I wanted to mention is kind of where we are in the process of contracts sold to date and the early adopter on this product. So again, even though we just started the beta in December, we already have 65 contracts that are sold. 41 are the full solution, and then we have 24 of those that have been sold just for our faster payments or our PayCenter solution. This is an opportunity for folks to have a better solution to fight fraud against Zelle and any of the other RTP and other types of solutions there. And then as you can see, we already hit in the early adopter and these numbers were as of almost a month ago now. but May the -- or 7 in May and 11 in June that are actually in the early adopter phase already for this particular product. Enterprise account opening. This ties a little bit to the LoanVantage question that was asked earlier because loan Vantage being the online account -- or the lending platform. We're tying that into an acquisition that we made a couple of 3 years ago called OpenAnywhere. We're turning that into an enterprise account opening solution and tying it in with several of our products. This is an opportunity for us to get better at rationalizing the product set that we have. We have a number of account opening solutions across Jack Henry, each of those requires development and time. This will be a single product that will eventually knock out those other solutions and be an opportunity for, again, for -- through the tech modernization strategy for us to have a more seamless approach to how we're doing account opening across the company. And then as I mentioned here, opportunity to be a part of both the loan and the deposit side of what we're doing through enhanced fraud detection, decisioning and an embedded forms generation product. Current status for that. So we've already finished the Phase 1. This is another solution that we really just kind of kicked off the -- all the work about 6 months ago -- 4.5 to 6 months ago from a time frame of getting going, but we already have some of the releases out, much like we do with all of our technology development. It's all Agile development. So we released certain phases and components of that. So that first phase is already completed today with a bunch more phases that are planned between now and the end of 2024, which we plan to have as the general availability for that product. Dave mentioned earlier, I think you said around 150. So as he mentioned, we have 160 FIs that are now have LoanVantage contracts, 48 that are in the backlog to be implemented. That number continues to grow. The sales on this product continues to grow as well. And then again, on the OpenAnywhere product, -- we have some legacy customers that we had brought over as part of the acquisition that we're continuing to add additional feature and functionality, too. But we have 119 FIs live there and 37 in the backlog on that particular product. PayCenter. So we talked a little bit -- there was a question earlier about FedNow and its importance, and I'll -- I can cover some of that during this process. But we have been -- I think most of you know what FedNow is, but I think the big differentiator that people forget is that the FedNow solution versus the RTP solution from The Clearing House, the big difference is the settlement. So the settlement truly is real time with the Fed. The settlement with the RTP is still an ACH-backed solution. They give the credit to the individual, but it's still an ACH-backed solution. So at some point, there might be some interoperability between the 2 products. There's definitely been conversations about that. Whether that happens anytime soon, time will tell. But there's a huge difference in why I think the use cases are going to be much different for the Fed. Dave did a great job of talking about the gig workers and the things that the Fed can mandate. But there's a lot of opportunities in ACH itself to kind of change because, again, it's a real-time clearing there. So I think there's going to be some use cases that you can imagine, alimony, other types of things that things that are actually being paid out on cards today that may go out to a store value card or a prepaid card, now won't have to go to that card bases for that as well. So I think there's going to be a lot of opportunity here. And fortunately, with our customers, we've seen way more interest in this Fed product than we did in The Clearing House. A couple of numbers for you. So our PayCenter solution, we have roughly 1,800 core clients. All of our cores are connected. I'm pretty sure we're the only provider based on our -- the low number of cores, but we're the only provider that has every one of our cores connected to our faster payments offering through our PayCenter. So you take roughly 1,800 core clients. We have roughly 400 Zelle customers, our Zelle contracts. We have about 300-ish live today. And then when you look at the real-time payments or The Clearing House solution, as I mentioned earlier, we're 60% of -- we have 190 live of the roughly 320 that are live today that are Jack Henry. And part of that is our ability to bring clients on at whatever pace they want. We can bring anywhere from 15 to 20 clients live in a single day, if that's because of how we architected the system. Doesn't typically work that way, but we do typically do anywhere from 15 to 20 a month based on customer interest. The Fed interest is significantly growing. As I mentioned here, we now already have 51 clients that are interested in the Fed product, that was about 20 just a couple of months ago. And I think it's because of the use cases. I think there's a larger opportunity for folks to turn on, and this is what we're going to recommend to our clients, to turn on receive only to enable payments to be sent to you regardless of whether you ever want to send a payment out or go through the process of doing that. And why is that important is because as these use cases become relevant, then all of our customers will be able to receive the payments on behalf of their customers or members. So that's a really big selling point that we're pitching to our clients right now. So mentioned here, we were one of the first to be part of the early testing with the Fed. And again, we will be part of the first days transactions on July 19 as well. So One Jack Henry. So we talked a lot in Dave's presentation about the advancement of the things that we're doing in technology and the things that we've always been known for related to service. When I took over this role about, I said, 3.5 years ago, I really wanted to spend time with our customers, even with our associates and others to find out how could we continue to put a kind of a wedge between us and our competitors from a differentiator. There also was a -- if you're maybe not familiar with this, but there also was a kind of a committee that was established by the ABA to go out and talk to core processors and find better ways to work with the community institutions. And so it really kind of dovetailed into the work that we were going to in kind of indoor related to One Jack Henry. So One Jack Henry for us is really about how can we be more efficient, how can we spend more -- build more consistency into what we do with our clients and our prospects, and again, our associates to build a better work experience for them, to create better career paths. Dave mentioned we have 57, I think, 58 acquisitions that we've done in the history of the company. Through that, you get an amalgamation of a variety of things that happen intentionally or unintentionally as part of that process. And I wanted to make sure that we really kind of figured out a way to drive a stake a little bit deeper in with our customer base. So we adopted as part of the process these 4 tenets. And it was about being transparent as you can be with our customers, with our associates. My message to the team is always about don't tell them what they want to hear, tell them what they need to hear. And customers greatly appreciate that because there's a time when customers or their associates are building their strategy based on what Jack Henry tells them. And it's very important for us to do what we say we're going to do. And that's where the operational excellence and the opportunity for us to be a better partner for them comes from. Better consistency in all we do across the organization. I'll give you some examples of that. Better collaboration, which has created the ability for teams to bond, especially during the pandemic. You saw our service scores of -- Dave, I think, showed 4.74. That's actually up over the last 3 years. So even during the pandemic and kind of a remote or semi-hybrid and work environment, our service scores continue to go up. And there's definitely a level of collaboration at the company that I'm not sure we've seen in years past. And then communication. So making sure that we are spending our time with our customers, with our associates, driving the vision, driving the opportunities and why we're doing what we're going to do. So real quickly, we've had a lot of success. I won't bore you with all the details here, but just some good examples. Road map consistency and execution. So this may seem like a minor thing in the scheme of things, but it's very major to our customers. So since we started this process, we have grown our road map execution from below 70% ti to we hit 88%, just our last schedule. So what we did is we built 6-month road maps. We publish them out publicly to our clients. We have over 60 road maps that are published that are all in a consistent format, and they all tell our customers what we're getting ready to do for the next 6 months. We picked 6 months because it's a very fast-changing industry. And we need to make sure that, again, we do what we say we're going to do, and it's way better of an opportunity to do that in a 6-month increment. So again, getting our team focused on the ability to execute, getting our priorities straight, things along that line and not trying to be all things to all people has enabled us to really drive that. Few other things related to kind of incident management. In our business, things happen. And when things happen across the organization, you don't want folks within your organization pointing fingers, worst thing going to happen with the customer experience. So we made sure that we have a single incident management group now that goes through the process across the organization, has one single contact into our customers. Again, feedback has been tremendous from our customers just because they don't have to deal with multiple people across the organization now. We've added a bunch of monitoring and observability components, the way we alert our customers on when things happen in a very standard format and things along that line. We now work with our clients on when they're going to make a change to their system or we're going to make a change to our system or we get a dual sign-off, which means they're prepared that what we're getting ready to do that weekend could affect them, and they're preparing us on something they're doing either on their in-house system or somewhere else that could affect us. We've created diagrams that allow our customers to see exactly every single product that Jack Henry has sold to them in the history of our relationship. Why is that important? Because there's a ton of turnover at our customers. There's turnover at Jack Henry. So having a consistent view of what those products look like, what products are they not utilizing. You asked Mimi about organic growth and where some of that comes from. Some of that comes from the ability for us to take a product that we know that they're not fully using and giving them the ability to have better education, marketing material, whatever it is to drive better adoption through that process. So this is -- all of these things have been pretty big hits with the customers over the last 1.5 years or so. We created a customer success team. As I said to everybody, that's not rocket science, a lot of people do that. But it's really what we've thrown into the group to have it very centralized where we've taken all of our education teams and made them one big team instead of a bunch of small teams doing what they thought was right for the customer. We've been focused on improving our service scores. So not only the service score that comes in a customer service survey but also our ability to react when something goes wrong. So I mentioned the incident management group that we have. We also have a focus on what we call urgent cases. So a case that comes in urgently, we are to respond to our customer within 24 hours with a plan. Prior to July of 2022, when we started this, we were about 77%. We are now close to 85% on that just by, again, focusing, getting better collaboration across the organization and groups working together to solve our customers' problems. I would venture to say that that's not happening in a lot of our competition right now. And again, as we look for opportunities to go upstream with some of the sales opportunities, with what we're doing in tech modernization, our ability to service our customers with the same level that they expect and maybe even better is going to continue to help us win a lot of those deals as well as the renewals. So a few other things we're doing. We're trying to figure out how to -- kind of the ABA initiative is to get better at how we bundle, how we price, how we kind of complete the full circle of what we sell to them. We've gotten a common product development life cycle now across the organization. Again, we have 9 big operating groups that were building products. Every one of them went about it different ways and now they're all following a single process under Ben's leadership and things along that line. We're trying to get better about the seamlessness of our implementations, make it faster, make it easier for them to work with. And then we got a big Salesforce CRM implementation that will help us. So I mentioned some of this, but this is a depiction of what we've done related to the road map metrics and our ability to execute there, and then the same thing on the time to solution. So other key priorities. Rightsizing our real estate is an obvious one. We've had a few sales of various locations. We've downsized some locations. We continue to look at that, and we continue to do that for the next foreseeable future. I'm in a facility in Kansas City, where we used to have 300 people coming in every day, and we don't have that anymore. So we need to continue to look at the ability to rightsize that. The multi-cloud strategy. So we've been working with both Azure and AWS, either through acquisitions or through the Banno environment for years. We have a lot of products in Azure. As you all know, we have a well-publicized working now with Google. We now have our first product fully in Google, which is our wire solution, is now in the Google Cloud with many others to come behind that. But we'll continue to have a multi-cloud solution because that's really the way that we need to operate and not have any one -- all of our eggs in that one basket. We're looking at some of our data centers, continuing to look at what makes sense for us long term, also part of our ESG initiatives. -- to drive the bright mindset there that are all kind of tied to data center real estate, all of those things, low carbon, to our ESG initiatives that Dave mentioned earlier. So the Payrailz acquisition real quick. So we've talked a lot about this, but just again, as a reminder, this acquisition was not about replacing iPay or bill pay. It is a payments platform that allows us to do much more than bill pay. It allows us actually to tie the Payrailz acquisition into our pay center application as well. There's going to be integration points into there to do what's called lease cost routing. Our ability to send transactions to RTP, to the FedNow, to ACH, to card, any which way we end up selecting or the customer selects creates that type of engine. We didn't have that capability within the bill pay platform known as iPay. We talked about really kind of creating more of a modern payments experience through the addition of AI and machine learning. And there's a lot of feature functionality that's built into those applications that, again, legacy tech that we had related to iPay. IPay still has over 3,000 clients that are out there live and working very well. But we think together, we'll be able to form a much better overall solution. And then we talked a little bit about Defender being a huge product for us on the fraud side. But Payrailz came with a module to that we're able to use for the P2P solution that came with Payrailz. So it creates a very integrated solution that allows us to better monitor those transactions on the open loop P2P solution that we have as well as a module that will feed into the Defender product that Matt Riley and his team are working on to have that as more of an integrated solution and not a single offering. So this is just a quick depiction of what that product looks like. Again, the most important part here is that this is open loop. So for folks like many of you that I see in the audience here, you may be using Venmo or you may be using Cash App or whatever it is. Once you've established those relationships, you don't want to change. You want to continue to use what you use. So if you go to Zelle and somebody says, "Hey, I want to send you a Zelle payment and you're not on Zelle, you got to get connected up or whatever you want to do." Through this solution, it gives the receiver the choice to select whatever application they want to receive. So whatever is their predominant solution. That's a huge opportunity as to be a complement for our customers to Zelle, and in some cases, potentially a replacement depending on what the competitive market is. I -- you all asked earlier about some things related to P2P and sales. So again, I mentioned 1,800 core clients. We have 450-ish contracts sold for Zelle. That leaves a lot of folks that aren't using Zelle as a product set, variety of reasons, whether it's their competitive market, whether it's the fraud issues that have occurred in Zelle. This is a great alternative for them to use that as, again, as an option. It will be embedded in our bill pay solution iPay, embedded in the Payrailz solution and embedded into Banno as well. So opportunity for it to be used in multiple places. And then lastly, I heard me answer a few questions on Payrailz. So I think it's really important to understand that from a standpoint of excitement about this acquisition, we have tons of excitement. We think this was absolutely the right acquisition at the right time. Unfortunately, a few things out of our control have happened with a few of our third-party partners. Much of the distribution channel for this product before our acquisition were third-party distributors. Ones that -- some of them which we use today through other products and some not. But the reality is there's some -- or some integration work that needed to take place. That was a little more complicated than I think both the third party and maybe some of the Payrailz team imagined that's delayed us. But none of those contracts have been canceled. And in fact, as I show here, we have, as of 421, we had 66 contracts in the Q for implementation and about 42, I think, or 45, somewhere in that number is related to third parties. So we're a little bit on hold. There's probably going to be another few months delay on some work that needs to happen there. But again, the contracts haven't gone away. The more exciting part in my mind is the last bullet there. We've actually sold 48 new contracts since they become Jack Henry, and a lot of those were direct sales through both the existing Payrailz team and then the team that Brian has assembled to help sell that. We have a huge focus as a company to drive this product because of its opportunity, and we're very excited about where this is going to go. So I know I didn't leave a ton of time, but I know we have questions at the end, too, but I'll be glad to take any questions or address any of the payment questions earlier as well.

One of the things you talk about is Payrailz and Zelle and maybe some of your customers not using Zelle. I think in the past, we've talked about Zelle as an expensive product, especially for community banks. How would you compare Payrailz versus Zelle from a cost standpoint? Does that provide an advantage to an FI? And do you see your customers that haven't adopted Zelle that might switch or might adopt Payrailz because of that?

Yes, great question. So I think the biggest opportunity is that we control the price point, not a third party. So when you look at the overall price point, it's somewhere between 30% and 40% less than the average Zelle transaction. . The other part is, is that typically, when they buy Zelle, there's a separate implementation fee. This will be aggregated into what we're already doing in PayCenter as a bundled solution. So it literally is going to be at least a lesser cost option for our customers. And again, a lot of people have just kind of shied away from Zelle for the fraud sign point, and we think we have a much better handle on the fraud component because of how we handle the transactions in the Payrailz application. Yes.

Just a quick follow-up on Zelle for a moment because I know it's come up as a pretty good amount of dialogue in the industry, especially for tech implementation purposes from companies like yourself. But I rarely hear about it being a material contribution to actual revenue for Jack Henry or for anyone else like it. I mean, is this really just a good value differentiator that you guys are offering low friction? Or is this going to move the needle?

Great question. I think it's not a huge money mover. I will tell you, and I think I had it on one of the slides, we're generating north of 400,000 transactions in PayCenter today a month. That's a combination of Zelle and with the real-time payments. But again, from a price point, where I think the real opportunity is going to be isn't necessarily the P2P transactions. It's going to be the use cases that get driven out of the FedNow and, to a lesser degree, the real-time payments network through The Clearing House. But those use cases, when you can start charging dollars instead of cents, is where the dollars for us will change dramatically, too. So some of this is a dynamic of waiting to see what use cases really get utilized on the timing for those use cases. But I would say, over the next 12 to 18 months, we're going to see a difference based on how those use cases are rolled out.

Greg, thanks a lot. We're right on time right now. So I think we're going to take a 15-minute break, come back and Ben will present the technology update. And then at 4:45, we've got a 15-minute window for additional questions. So Greg will be available, obviously, at that time as well, as well as the reception. So if everybody would like to take a break, we'll start right now. [Break]

While you're all making your way to your seats, Dave talks about associates and employees. We take care of our associates and employees and then they'll take care of our customers. And then if we do that, well, I'll take care of you all. But while we're making our way to our seats, I do want to say like, last year was my first time here. I've been at the company for 9 years. But one of the things I tell our team internally is we have the best set of investors. We really do. And we talk about it inside the company. And so I am lucky I get to come work for the best associates, I think, on the planet. I get to work for Greg and for Dave, and I get to work on this leadership team. I feel lucky to be, at this time, at this company working in this industry doing what we're doing. It's a big deal. But also feel fortunate to have you all as investors. So thank you. We're going to jump into it, see how the clicker works. I always open my presentations with this. The United States is not a better place without our community financial institutions. Interestingly enough, this is my hometown. And I actually had this picture taken with the design team that I work with because this was that corner 10 years ago. So if you're worried about community financial institutions being alive and well and strong, they are. This was a Wells Fargo building. I love this, by the way. Wells Fargo building 10 years ago, this was 10 years ago. This sort of looks like today. And literally, the entire surrounding community is completely overhauled. And I guarantee you, and I live in this community, I've lived there for -- since the year 2000, roughly speaking. Community financial institutions have funded this entire thing, everything, including this building, which is a brand-new building and it just turned out that Jack Henry decided to put our offices there. So this is now my new office. And down below, which I'll let you do some sleuthing, you're all analysts, right? Let's figure out who this is, but down below is our first outside-the-base customer. So pretty cool. Downtown Cedar Falls, community institutions are live and well, crushing it. We talked about this last year. Dave has talked about it a lot. So again, part of my job is to explain kind of the next layer underneath what Dave and Greg have talked about and what Mimi has talked about. This was the world, right, before the Internet for a consumer. They had large bank options, regional options and then that blue moniker is what our community financial institutions represent. This is kind of the competition landscape and Dave showed you something like this, right? This has been a problem. We talked about it the last couple of years. One of the things that will happen in this presentation is I'm going to reference last year and then explain what we've done in the year since okay? And you'll notice this, I'm going to put some Easter eggs in this presentation, they're here. There's some Easter eggs in Dave's presentation, too, to have hints to the future, and we'll see if you can find them. This is Juan. This is the data, okay? Our -- we have an awesome data team that surfaces this. So the problem really is in this millennial group where they have 30 to 40 financial relationships. And we had a deal done with Finicity, all right? So last year, when we were here on this stage -- or I don't remember where exactly we were, but on this stage with you all, we knew this was going to happen, and we were working on it. This is not a technology problem. This is a business model problem. And what we have done now is we put our customers at the center of that entire ecosystem with Finicity, is rolling out right now. We're live with our first customers. Basically, the way it works is that a customer on this device gets access to all their financial institutions. How many of you know what Mint is, right? We just put Mint in our app. And then we made all of that available to all of our customers. And it's a first-class feature, it's not something you've got to go do separately. Now this is hugely strategic. Why? I'm going to explain, but I'm going to take a little rabbit show. First of all, the other thing we've been up to is removing all toll gates for developers to work with Jack Henry. So as CTO, now I was once a start-up, all right? I was once smashing code into a computer, all right, about 12 years ago building Banno, right? A lot of code that I wrote actually still runs. So -- and one of the things about this industry and our world is too many toll gates. There are just tolls everywhere. I'm not going to point to where the tools are. And we've always had this posture, we want to be the most open. We want to be the best one in. When I was outside of the company, there's no question about it, Jack Henry was the best one. We want to be better, okay? We want to be even better. So that's jackhenry.dev. We talked about it last year. We are the only self-service API wherein which a developer can sign up, hitting this sign-up button, get API credentials and get to work on the entire stack at Jack Henry. We were in the entire stack for them underneath these credentials. We have, last I checked, 650,000 sign-ups. I'll say it again, 650,000 sign-ups at jackhenry.dev. We did not know this was going to go like this, okay? When you start to lower the barrier to entry for developers to come work on your platform, why is this important? We want to be the industry's best matchmaker, all right? We want to be the absolute best and I'll explain why. First of all, it helps our customers compete. This is a customer, Alex Carriles, he was a former Head of Mobile at BBVA, one of our best customers. When he understood what we were doing with this open platform, he just went over the moon because he was able to hire a small team and just get to work. I've lost count of the integrations. It's somewhere north of 14. This is just one of them, okay, where they were able to increase mobile deposits. Also, it just so happens that Simmons Bank has probably the best account opening experience of any financial institution I've seen. Again, they did it with our tools and our open platform. This is -- really starts to tell the story of why we're doing this. This is a wonderful company called Atomic. I like to reference them. We really like what they're doing. We don't have any formal relationship with Atomic. Atomic just built on our platform. This is exactly what Atomic looks like inside our digital platform, right? And I'll let you read it, but what they do is they do -- they have integration with all the major direct deposit providers, right? This is a tool that allows our customers to immediately integrate it into this experience and start to go compete for deposits. Now this all happened before this world that we're now in, okay, this open platform, okay, happened way before we got into this world where all of a sudden, our financial institutions are saying, hey, there's a real focus on deposits, right? Now you take Jack Henry plus this Finicity integration. Now what we're focusing on is making sure we are a platform and that we want to be a platform of platforms because Finicity is their own platform. So it's extremely strategic because Finicity offers the best, we think, one of the best open banking platforms, really large that connects to any financial institution. They've got more open banking agreements than most of the other providers. They're a lot to OIDC capable. I know those are just some nerdy terms but they're really important, all right? And they're natively a part now of our platform. So enter Atomic, now our customers can integrate Finicity. Now their customers get access to their entire ecosystem, they become the hub, right? And now you add something like Atomic and now they can compete for deposits across the entire breadth of what Dave referenced. Does that make sense to everybody, all right? So when we start looking at these problems, and like Dave was saying, this disruption, we think, is positive. Why? Because we have answers, right? We have real answers to help our customers go to compete. I was just on the phone with one of our larger nationwide brands, and they've signed up for all this, they have it all. Like as fast as they can get it, they have it all, right? So you heard Greg talk about Banno business, but we kind of need to stretch out a little bit. One of the things we think is a huge opportunity for our customers is a small business offering over time as well as treasury. We didn't have a specific slide for treasury, but I want to make sure we talk about it. I personally run treasury at the company, all right? So treasury services, we've been completely overhauling our treasury platform. Our goal is to build an ecosystem wherein which at one of our community financial institutions, you can start a company as a start-up, okay? You get world-class software to run your business, and then you can scale that all the way through your entire life cycle, okay, of treasury services, all right? And this is a single platform. A lot of what we're doing in treasury becomes folded into this entire platform natively this summer and fall. Banno business itself, we're going to have this strategic focus on small business. You'll see us talk more about it next year. But we think our banks and credit unions can compete. We think they have a massive opportunity to compete for small business. We'll talk about that, why that's true. You go to Main Street America, what they really want is relationships, right, with their financial institution. You go to the main street that I live on, all right, it's in my neighborhood, and this all boils down to personal relationships. The thing that somehow people have missed, and we're going to talk a lot about digital today and conversations, I'm not sure why, but we're the only one in the industry that built a digital help desk in our apps. We don't know why. We're it. You might say, well, Ben, that's just chat. No, no, it's not. Look, this person attached a check, okay? They can attach any now in the application. How many of you understand or are current on AI? Okay, no hands. All right. We'll move on. However, I just want to point something out. This is highly labeled, sophisticated data that will allow us to do some extraordinary things for our customers. and we've been doing this for 5-plus years. We have authenticated conversations with customers for a very long frame of time, all right, wherein which those customers have added transactions and said they didn't make those transactions. They added them here in the chat, all right? This is magic. This doesn't exist anywhere. We don't know why. Well, we're saying, okay, we're going to take this further. What this really is, is private chat for small business. Then we're going to scale it to treasury, all right? So that will come in the future. Right now, we're scaling it into small business, small and medium-sized business. I have had the good fortune of running businesses. My joke is Jack Henry is my first real job, the first time I had like all this like 401(k) and stuff like that. So I had done before Jack Henry were start-ups, right? So this is like my first real job. And one of the things I know is that when you're running a business, you want to be able to have private conversations to the business. And then you're going to need help from your financial institution. So then you can add them to the chat. And then you need your attorney to look at something you're doing, do you not? This happens all the time, all the time every day. Well, you can add your attorney. This doesn't exist. We don't know why. But we think this helps our banks and credit unions compete against things like JPMorgan Chase. Does that make sense? Okay. This is shipping with Banno business. Outside the base. I already had questions from some of you outside about this. Everybody is interested in outside the base. We're going outside the base. Dave Foss pioneered a lot of that at our company, building out the Provistar's ecosystem, would now became this whole other business, which we have a lot of products that are outside the base. When Dave actually thought it was a good idea to buy Banno, Dave and Greg Bull, we were actually an outside-the-base player Banno was. One of the untold stories about Banno is that we've actually rebuilt the entire platform inside the company in the last 5.5 years. It's the fastest it's ever been done per my knowledge. I've done some homework. I don't think anybody has built something this big, this fast, this comprehensive, this open API first. By the way, talk about that API, just so you know, the amount of users we have in Banno is also the amount of users we have on the API. That's because we use it ourselves. We built our own product on top of it, okay? That means there's no functionality available in Banno that's not available on our API for a fintech to use. Back to outside the base, we've had our eye on outside the base. But what we really wanted to do is make sure that we got the relational elements of our customers and how core processing works back through to the Internet, we make sure we got that right. We are the most integrated platform to any of Jack Henry's cores today. And any new core we take on, we will be the most integrated, too, all right? Does that take a little bit of time? Yes, because we have to give the bank the same competitive advantage that the big banks have. Makes sense? Same with fintech. Dave mentioned this. All new origin components, we're going to talk about that in a minute. They're all going to be available outside the base as well, all right? So this is by strategy, all right? So here we go. We're going to talk about core. I said core. This is like a big argument I have, core. We're going to talk about core. Okay. So first of all, what the hell does digital even mean? Anybody know? Because if you know, you should tell me because I don't know what it means. I'm the Chief Digital Officer and I don't know what it means. Now if you do a little homework, this is a wonderful book if you want it, you can buy it, put it on your coffee table. It's actually an awesome book because it's a -- it's all these photographs from this -- this photographer that got inside access to Steve and a bunch of other founders in Silicon Valley. So it says Digital Revolution, Silicon Valley, 1985 to 2000. We're in 2023, why are we still talking about digital? When Steve was making a list of things that are digital and need to -- our analog need to become digital. Everything became digital back in the '80s and -- like all the way up to 2000. So what are we talking about? So what I think we're actually talking about in our world, okay, it means different things in different industries. What I think we're talking about is demand for self-service via the Internet. A lot of people have asked me, why do you got to build a new core, Ben? This is answer. Demand for self-service via the Internet. Starts in basically 1994 when we first started seeing online banking systems. Okay, here we are, 2023. Anybody willing to bet me any amount of money that demand for digital self-service via the Internet for banks and credit unions goes down? Anybody? Any takers? I'll bet you an insane amount of money. How about 2024, does it go down? Demand for digital self-service via the Internet, does it go out? 2025, do you get what I'm saying? This doesn't end. This trend, this is a trend line, you're all analysts, you know trends, they matter. All right, how about 2026? What we really think happens, we really think this merges with the growth curve of the financial institution, right, if we can help them grow. There isn't a customer at the financial institution that isn't also a demanding self-service via the Internet. What we have to make sure is we build all the right software that helps them hold on to those relationships and they can be a hub in the future, all right? This is the next problem. So we're going to kind of switch gears a bit and we're going to talk about digital -- I mean core -- sorry, digital -- I mean core. Like this is -- these things are dumb. The reason -- I don't know why we created these terms in this industry. But this is kind of like what the world mostly looks like, right? This experience, which is a branch-based experience, the software runs here, connects down to the basement. And Jack Henry has been a basement kind of company, okay? Meaning nobody knew who we were. If you think about us, there wasn't like an Intel sticker on the outside of a bank or credit union, right. Okay. We've been -- but what we're doing as a company, you saw with Greg in his presentation, we're overhauling the company to make sure we meet this demand. I couldn't stand here and go do it. I get to go do it every day. I'm really lucky if it wasn't for what Greg is doing with One Jack Henry. As the organization goes, so goes our ability to actually do technology, okay? So -- and I wouldn't be standing here at all, Dave didn't think it was a good idea. So this is kind of what a lot of people try to do, I call this a red pipe problem, all right? Pretty much -- I'll say it this way. I was at IBM for 3 days last week. I think most of the money in the world settles on -- settles and clears, to be specific, settles and clears on IBM machines. You should pay attention to IBM. They're doing some cool stuff. And our strategy includes IBM, it's not exclusive of IBM, all right? So these are the 3 models. I tried to visualize them for you so that you can just sort of easily commit them to memory in your head. This is kind of the model we've been living with for a long time, all right? Basically, this thing, we try to build it strictly onto what we would call a legacy core system or an IBM machine, all right? Then we have a lot of new start-ups going, hey, we're going to come along. We're going to build a deposit-only side core, okay? So that's another strategy. And again, I love that these -- that this competition is showing up. I think it's great. It's great for the industry. The problem is, this cannot run your bank or credit union. One of the major advantages that Jack Henry has is we can run your bank or credit union soup to nuts, okay? These cannot. Problem, these are not integrated, and they're not integrated with these things. They're not. And they don't come out of the box with a bunch of integrations, right? So will they get -- the question is, will they get there? Of course, they will, eventually. I don't know how long it takes. Banking is a Sahara Desert of edge cases. That's why nobody has rewritten these things. It's really difficult. This is the Jack Henry model. How many of you know what a digital twin is, some hands are out, you know digital twin. If you have that mental model, that's what we're building. We're building a digital twin on top of our legacy core, okay? All right. What is Origin? Origin is a program. It's not a product, it's a program. First pillar of this program is to modernize and improve our existing core systems. So that means those machines that were down over here, okay? And we're doing a ton of that. One -- I'll just give you one example. We just released in beta on one of our major cores, and we're working on the other ones, should happen this year, real-time data coming off of our core systems. Fun fact in the rule out of banking, you cannot stop fraud unless you get data real time, in near real time off of these core systems. It's not possible. Anybody who tells you different doesn't understand how settling and clearing works, all right? Okay. We're also overhauling all of our integration. Dave mentioned it in his update, we're completely overhauling how we do data. So you saw what we did with our APIs. We are building a Jack Henry data broker. That's pretty sophisticated and pretty cool because we want to be a matchmaker because we think there's an army of start-ups coming for AI in this domain, army. They're coming. We're getting real smart. We're preparing ahead of time, okay? All right. So -- and we've overhauled all of our reporting layers. That's happened in the last year as part of our origin program. The second thing is what you saw in some of Dave's slides, which is we're going to create shared services for functions traditionally found in a core product. And I know that's a lot of words, some word salad, but that is what you see us doing. Why I say traditionally found in a core product is this, we're going to converge this idea of digital and core to a single platform, all right? And I'm going to explain how we get there. When we were here last talking to you all, we knew this deal was going to happen. We really want to be able to talk about it. It just hasn't happened yet. Google has been an absolutely world-class phenomenal partner. We signed the deal last summer. And again, Greg mentioned this, we have good relationships with all 3 cloud providers. We think that's super important. But Google is where we are building out the origin program. And we were making strategic advancements in terms of how you build a core system in the cloud. By the way, is anybody aware of an existing core processing and settlement system that actually runs in the cloud. Public cloud? Right. You're not aware of one because they don't exist, all right? So there's reasons why we chose Google, and they've been a phenomenal partner and we are pioneering what it means to actually build something like this in the cloud. We just released wires, Dave talked about it. We now have 2 live customers on wires. We talked about that last year. Hopefully, you can see this execution pattern, and then it's here today. But more importantly, again, we use the products we make. So Banno uses wires. We also use authorization management. So the other thing we're getting out of this program is leverage and cost over time with a shared services model. How many of you all understand multi-tenant SaaS businesses? They're really important, are they not? This is all multi-tenant SaaS, all right? So Dave was giving you a great intuition for what the next leg is going to be, right? Greg and Mimi were talking about it. So this is kind of what it looks like, a mental model. And there's pretty much everything that's here, if you look closely and you'll have the slides kind of study later, a bunch of this stuff came from Banno. So identity platform and our API gateway, we actually have a customer using just those 2 things today. We just -- Shannon and I have been engaged with a very large credit union who now wants to use -- they built their own online banking system, but they need that API gateway and our identity provider, guess what? We are announcing that we have -- we have effectively, by the fall, removed all screen scraping from the platform. Well, if you take a dependency on these 2 shared services, you can do the same thing for your platform, even if you're not on Banno. So in a lot of ways, the way we built Banno is so that it can be unbundled and used for other things, all right? How many of you all know what Okta is? Okay. That's our Okta, okay? And it can bridge to Okta, all right? For those of you who are technical, I learned last year to -- I didn't know you all, like I got to know you a little bit last year. You're all real smart. You all asked me some tough questions. So I came prepared this year to give you some detail. We're overhauling existing things we have, and I'm going to move on because we're going to explain how we get there. All right. Dave had a little bit better slide here, but I just want to show you how this works for wires. This is really important. We launched wires, it works with our existing core system. That's what's different. Also works with our Fed line direct connection, comes out of the box with APIs. When we launched APIs and wires, all of our partners got the APIs the same day we did. That's the new rule inside Jack Henry. Why is that important? Well, I think you can probably figure that out. All right. So digital legacy core. This is how we get there. One of the things we are working hard on, the industry needs to get serious about properly structured, distributed systems because they are inherently more reliable. Banno by default is a distributed system running in Azure today, reporting it to GCP. That will happen by the end of the year. We have 9.5 million users on the platform today. This runs on about 4,000 containers, all right? About 300-plus discrete micro services -- we prevent about 2,000-plus fraudulent logins per second, trying to give you a sense for the scale and power of what this thing is that we built. Why does that matter? Because we're bringing that to our core system. So the question I keep asking internally, well, what's core and what's digital, all right? Here's a huge problem. All payments channels from the Internet inherit the identity of the online banking provider. And I'll let you some of you smart people really noodle on that. That's a fraud problem, okay? And then when things actually settle on a system down here that was built before the Internet, this thing doesn't understand the Internet because it was designed before it. There isn't a single core processing and settlement system that was built before the Internet. Not one, not anywhere, I haven't been able to find one. All right. Okay. Now again, something that's settling and clearing in real time and that can run your bank and credit union, they were all built before the Internet. The software was built before the Internet. So we're bringing the Internet to the core system is another way to think about it. This is what it starts to look like, right? Then we're building this sophisticated layer. And I don't have time to explain store and forward. You can ask me about it, and I'm happy to explain how store and forward system works, but we're effectively building store and forward on Google, the Cloud Spanner, okay? This gives us a digital twin. Now some of you might ask me how in the world is this thing going to get data? Did I just not tell you we were getting real-time data off our existing core systems? Okay, that's how we get a digital twin. If you get a digital twin, for those of you who are real smart, which I think all of you are -- oh, I forgot I had this slide in here. This is like what I call like a weird twist of the -- in banking. And a lot of people like to talk about faster payments, which, obviously, we're all in on faster payments. But here's the problem. You get faster fraud, right? And we've all seen it with Zelle, et cetera. And here's another strange thing. I feel like this is like nearly computationally irreducible, but a shocking amount of money moves over SFTP, a shocking amount of money. Now who was talking about money moving over SFTP? Was that an article like an American Banker? No offense to American Banker, maybe they should write an article on that. Because most of the money actually moves this way. Time is a great friend of payments. Time is a great friend of payments. We slow things down on purpose. ACH warehouses and wire rooms are designed to do what, slow the money down. That's what they're doing. They're designed to slow the money down. Why? Because so much money flows through here. We're going to be overhauling this in Origin, too. Why? Because there is an insane amount of pent-up demand for more digital self-service and treasury functions. There's a lot of people that told me, Ben -- because I'm the Internet guy, like banking a lot of times, depending on where I'm at. And they say Ben, hey, treasury systems like they're never going to -- there's never going to be like this demand for self-service from this device. Guess what? That generation slide that Dave had up, that slide is also true for leadership, okay? Leadership of these large business and commercial entities is changing at a shockingly fast rate. And what do they want to do? They want to approve payments on this device, okay? They don't want to call their banker, okay? So we see this amazing -- it's to us amazing because we've been focused on this digital platform. So we feel like this is a huge opportunity for us. And we're still all about faster payments. I'll explain why. Now there's a lot of detail I can't discuss because we're going to be doing some things that I can't discuss. But if you have a digital twin, and you can inspect all payments flowing through the platform on any rail and what if you could slow time down? Remember what I said, time is a great friend of payments. Now what if you could slow things down? I don't mean really. I just mean actually slow the world down and take a look at what's happening. This is going to be our key innovation in Origin with a digital twin, all right? If we can deliver a low fraud platform, and we don't have to -- again, remember, Jack Henry is an agnostic provider. We love our friends that do digital banking. We have a lot of them, okay? They do all kinds -- there's other payments providers besides us. It's not just us, okay? We show up at our Jack Henry Connect conference, and we make sure everybody is welcome, everybody. So we have to think about fraud coming in on systems that we don't own. How do you stop it? We have a very sophisticated means of doing this. How many of you know what software 2.0 is? We're bringing software 2.0 to core systems. And that's my presentation. Thank you so much. Questions? .

We probably have time for 1 or 2 questions at this point.