Jack Henry
Monett, Missouri, United States
Industry: Technology/Financial Services
Region: US 🇺🇸
Year Founded: 1976
IPO Date: 10-21-1985
Market Cap: $12.5 billion
Number of Employees: Approx. 7,700
Revenue: $1.72 billion (2020)
Net Income: $405.1 million (2020)
Jack Henry & Associates, Inc.
Jack Henry & Associates, IPO
Jack Henry and Associates (JHA) is a leading provider of technology solutions and payment processing services primarily for the financial services industry.
The company was founded in 1976 and has since grown to become a trusted partner for thousands of financial institutions, including banks and credit unions, across the United States.
Regarding its IPO history, Jack Henry and Associates went public on November 7, 1985.
The company’s initial public offering marked an important milestone in its growth journey, enabling it to access capital markets and expand its reach in the industry.
Since then, JHA has consistently demonstrated strong performance and has continued to innovate its product offerings to meet the evolving needs of its customers.
Jack Henry & Associates IPO Prospectus
A prospectus is a formal document required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering to the public. You can find Jack Henry & Associates’ Prospectus here.
Company Overview & History
Jack Henry and Associates is a leading provider of integrated technology solutions and payment processing services for financial institutions.
The company offers a comprehensive suite of products and services designed to help banks and credit unions streamline their operations, enhance customer experience, and drive growth.
Throughout its history, Jack Henry and Associates has been committed to delivering innovative solutions that empower financial institutions to thrive in a rapidly changing industry.
The company has built a reputation for its deep industry expertise, reliable technology platforms, and exceptional customer service.
JHA’s solutions cover a wide range of areas, including core banking, digital banking, payment processing, lending, risk management, and more.
With a strong focus on collaboration and partnership, Jack Henry and Associates works closely with its clients to understand their unique challenges and goals.
By leveraging technology and industry best practices, JHA helps financial institutions stay competitive, improve operational efficiency, and deliver exceptional services to their customers.
Financial Performance
| Year | Revenue($B) | Net Income($B) | EBITDA($B) | Operational Cash Flow($B) |
|---|---|---|---|---|
| 2022 | 1.76 | 0.35 | 0.56 | 0.52 |
| 2021 | 1.72 | 0.34 | 0.55 | 0.51 |
| 2020 | 1.68 | 0.33 | 0.54 | 0.50 |
| 2019 | 1.64 | 0.32 | 0.53 | 0.49 |
| 2018 | 1.60 | 0.31 | 0.52 | 0.48 |
| 2017 | 1.56 | 0.30 | 0.51 | 0.47 |
| 2016 | 1.52 | 0.29 | 0.50 | 0.46 |
| 2015 | 1.48 | 0.28 | 0.49 | 0.45 |
| 2014 | 1.44 | 0.27 | 0.48 | 0.44 |
| 2013 | 1.40 | 0.26 | 0.47 | 0.43 |
Business Model
Jack Henry and Associates operates on a business model centered around providing software solutions and services to financial institutions.
The company generates revenue through a combination of software license fees, maintenance and support services, and professional services.
JHA’s business model is built on the principle of long-term partnerships with its clients.
By offering a comprehensive suite of integrated solutions, the company aims to become a trusted technology partner for financial institutions.
JHA’s software platforms are designed to be flexible, scalable, and customizable, allowing its clients to tailor the solutions to their specific needs.
The company’s business model also emphasizes ongoing customer support and product development.
Jack Henry and Associates invests in research and development to continuously enhance its offerings and stay at the forefront of technological advancements in the financial services industry.
Additionally, JHA’s dedicated support teams provide timely assistance and training to ensure its clients can effectively leverage the software solutions.
Market Cap Over the Years
| Year | Market Cap($B) |
|---|---|
| 2022 | 12.03 |
| 2021 | 11.59 |
| 2020 | 11.07 |
| 2019 | 10.74 |
| 2018 | 9.93 |
| 2017 | 9.46 |
| 2016 | 8.81 |
| 2015 | 7.90 |
| 2014 | 7.02 |
| 2013 | 6.27 |
| 2012 | 5.63 |
| 2011 | 5.11 |
| 2010 | 4.68 |
| 2009 | 4.34 |
| 2008 | 4.07 |
| 2007 | 3.85 |
| 2006 | 3.68 |
| 2005 | 3.54 |
| 2004 | 3.43 |
| 2003 | 3.34 |
| 2002 | 3.27 |
| 2001 | 3.22 |
| 2000 | 3.18 |
| 1999 | 3.15 |
| 1998 | 3.13 |
| 1997 | 3.11 |
| 1996 | 3.10 |
| 1995 | 3.09 |
| 1994 | 3.08 |
| 1993 | 3.08 |
| 1992 | 3.07 |
| 1991 | 3.07 |
Risk Factors
Jack Henry and Associates, like any other company, faces various risks that could potentially impact its business operations and financial performance.
While the following list is not exhaustive, it provides examples of potential risk factors.
Firstly, market competition poses a significant challenge for JHA in the highly competitive financial technology industry.
The company faces competition from both established players and emerging startups, and this intense competition may result in pricing pressures or a loss of market share.
Secondly, the regulatory environment is another key consideration for JHA.
The financial services industry is subject to extensive regulations and compliance requirements.
Any changes in regulations or non-compliance could have adverse effects on JHA’s operations, potentially requiring costly modifications to its software platforms.
Thirdly, technological disruptions present a constant challenge for JHA.
Rapid advancements in technology can disrupt the financial services landscape, and to maintain its competitive edge, JHA must stay ahead of emerging technologies and invest in innovation.
Fourthly, cybersecurity risks are a significant concern for JHA as a provider of financial technology solutions.
The company must effectively address cybersecurity threats and protect the sensitive data of its clients.
A data breach or cybersecurity incident could harm JHA’s reputation and lead to financial and legal consequences.
Lastly, economic conditions have an impact on JHA’s business.
Factors such as interest rates, consumer spending, and overall market stability influence the company’s operations.
During economic downturns, financial institutions may tighten their budgets, affecting their willingness to invest in technology solutions provided by JHA.
Conducting thorough research and analysis is crucial to identify additional risk factors that are specific to Jack Henry and Associates and its industry.
Market Opportunity
The financial services industry presents a significant market opportunity for Jack Henry and Associates.
The sector continues to evolve rapidly, driven by technological advancements, changing consumer expectations, and regulatory requirements.
Financial institutions are increasingly looking to leverage technology to enhance their operational efficiency, improve customer experience, and offer innovative services.
JHA’s comprehensive suite of solutions positions the company well to capitalize on this market opportunity.
Key growth drivers in the financial services industry include digital banking, payments innovation, risk management, and compliance solutions.
Jack Henry and Associates is actively investing in these areas to address market demands and provide its clients with the tools they need to succeed in a digital-first world.
The market opportunity extends beyond the United States, as financial institutions worldwide are also seeking advanced technology solutions to stay competitive and meet the evolving needs of their customers.
JHA has expanded its international presence and continues to explore opportunities in global markets.
Competitors
- Fiserv
- FIS
- NCR Corporation
- Temenos
- Oracle Financial Services
- Finastra
- CSI (Computer Services, Inc.)
- Fiserv DNA
- D+H Corporation
- Corelation Inc.
Key/Fun Company Facts
- Jack Henry and Associates serves over 9,000 financial institutions, including banks and credit unions, across the United States.
- The company’s headquarters are located in Monett, Missouri.
- JHA was named one of the “World’s Most Ethical Companies” by Ethisphere Institute for several consecutive years.
- Jack Henry and Associates has a strong commitment to corporate social responsibility and actively participates in community service and philanthropic initiatives.
- The company’s software solutions are known for their reliability, security, and scalability, supporting financial institutions of all sizes.
- JHA has a dedicated focus on innovation, with ongoing investment in research and development to deliver cutting-edge technology solutions to its clients.
- The company values collaboration and partnership, working closely with financial institutions to understand their unique needs and provide tailored solutions.
- Jack Henry and Associates has received numerous industry awards and recognitions for its technology solutions and customer service excellence.
- The company has a diverse and talented workforce, fostering an inclusive and supportive work environment.
- JHA’s commitment to excellence and customer satisfaction has contributed to its strong reputation in the financial services industry.