Cass Information Systems reports Q2 EPS 52c, consensus 67c

Reports Q2 revenue $48.21M, consensus $49.67M. Martin Resch, the Company’s president and CEO, noted, “The Company has been focused on updating and upgrading the technology platforms used to ingest and process documents received from the vendors/carriers of our clients. Most of 2022 was spent identifying partners and clearly documenting the processes surrounding those platforms. In the first quarter of 2023, we experienced success in implementing a production environment for the Waste line of business well ahead of schedule and therefore we made the decision to accelerate the development across all payment businesses. The Company is currently incurring the cost of running duplicate production environments, with the expectation that we will start to wind down the older platforms in Q4 of 2023. The partners we have chosen to work with have also started to implement generative AI integration into their existing tool sets which we believe will allow us to develop data processing models more quickly but more importantly will be applicable to new client and vendor onboarding improvements underway.” Resch continued, “We continue to see high demand for the Cass service offerings, presenting significant revenue opportunities. Our ability to successfully implement improved, more efficient technology platforms will not only reduce our cost of processing invoices but also greatly enhance our growth prospects in future periods.”