David B. Foss
Board Chair and Chief Executive Officer at Jack Henry & Associates
Thank you, Vance, and good morning, everyone. Before we get started today, I'd like to welcome the other folks in the room with me, as introduced a moment ago by Van. To begin, I'd like to welcome Mimi Carsley to her first quarterly call with Jack Henry. Mimi has been sitting in the CFO chair for a couple of months now and have spent a good bit of time immersing herself on the details of our business. Of course, you'll hear from her in a bit, and I'm happy to have the opportunity to introduce her for the first time to all of you.
Additionally, I'd like to welcome our President and Chief Operating Officer, Greg Adelson, to his first earnings call. Many of you know Greg from our Investor Day and other events. Greg will be a participant in these calls going forward. But today, he will primarily focus on answering any questions regarding our recent Payrailz acquisition. And last, I'd like to welcome Vance Sherard to his first earnings call. As you probably know, Vance was recently promoted to Vice President of Investor Relations, and he will host these calls every quarter going forward.
With that, let's move to the update section of our call. As I noted in the press release, I'm very pleased to report another strong quarter of revenue and operating income growth for our company. As always, I'd like to begin today by thanking our associates for all the hard work and commitment that went into producing those results for the quarter. For the first quarter of fiscal 2023, total revenue increased 8% for the quarter and also increased 8% on a non-GAAP basis.
Deconversion fees were up slightly as compared to the prior year quarter. Turning to the segments. We had another solid quarter in the core segment of our business. Revenue increased by 6% for the quarter and also increased by 6% on a non-GAAP basis. Our payments segment again performed very well, posting an 8% increase in revenue this quarter and a 7% increase on a non-GAAP basis. We also had another strong quarter in our complementary solutions businesses, with an 8% increase in revenue this quarter and an 8% increase on a non-GAAP basis.
As I've discussed previously, our first quarter is normally our lightest sales bookings quarter because our fourth quarter tends to be extremely strong, and the sales pipeline is depleted as a result. As you may recall, the June quarter was the strongest sales quarter in the history of the company, so we certainly expected that historical trends hold true. This year, however, although sales bookings didn't set a record, they were up by double digits over the prior year quarter with many notable wins. In the quarter, we booked six competitive core takeaways and five deals to move existing in-house customers to our private cloud environment.
As some of you may recall, we started last year with six core wins and ended with a total of 52 for the year. Although I can't predict our full year performance with any certainty, the pipeline gives us optimism that we're likely to see that kind of trend this year as well. We continue to see success with our card processing solution, signing nine new debit processing clients this quarter and one new credit client. We also continue to see remarkable success signing clients to our Banno Digital suite, with 60 new contracts in Q1.
Speaking of our digital suite, at the end of Q1, we were hosting approximately 8.3 million registered users on the platform, and that number is now growing at almost 200,000 users per month. At the end of Q1 last year, we had about six million registered users on the platform, so we've experienced more than a 38% increase in the intervening 12 months. We are currently expecting to have the Banno business offering generally available in early 2023, providing another avenue to increase the number of Banno users.
The Banno Digital suite continues on the path to becoming the industry-leading digital banking solution in our markets. The continued success we've seen with sales and adoption of our digital suite is consistent with the expectations coming out of the Bank Director Technology survey published in August. As they do every year, Bank Director surveyed hundreds of their subscribers during June and July regarding a variety of technology prioritization and spending topics.
More than 50% of the responses they received were from bank CEOs and/or Board members, and more than 80% of the respondent banks were greater than $500 million in assets. Although this survey didn't predict spending for 2023, it did highlight that the median increase in expected technology spending this year was 11% as compared to the prior year. One of the interesting items from this year's survey was the analysis of technology in use by respondent banks as it relates to their ability to serve different generational groups.
Fully 93% of the respondents said they had the technology in place to serve baby boomers, but only 25% said they have the necessary technology in place to effectively serve Gen Z-ers. Of course, it's the younger generations that expect to conduct all banking services without ever entering a branch. Clearly, the initiative for all banks to get to a digital presentation layer has a long way to go. All of this bodes well for the future of our digital suite as well as the other innovative solutions offered by Jack Henry, which help facilitate an improved customer experience through a digital front door at the financial institution.
On August 9, we announced a definitive agreement for Jack Henry to acquire Payrailz, and we completed the deal on August 31. Payrailz accelerates Jack Henry's technology modernization strategy by immediately adding next-generation digital payment capabilities to our public cloud-native technology stack and payments ecosystem. Payrailz also enhances Jack Henry's payments-as-a-service strategy, enabling clients to simplify the complexity of payments, modernize their existing payments channels and remain at the center of their account holders' payment experiences.
Acquiring Payrailz has strengthened our position in the payment space by providing our collective clients with additional functionality, optionality and flexibility that enhances their diverse digital and payment strategies. To that end, in mid-October, we announced the launch of a stand-alone person-to-person payment solution that further supports our real-time payment strategy. This offering is available for stand-alone implementation or as a strategic component of the full Payrailz payments platform.
In addition to the Payrailz acquisition, we recently announced the release of our new financial crimes defender application, an expanded partnership with Mastercard, and a new relationship with Google. We're excited about these key relationships with Mastercard and Google and look forward to continuing the rollout of Financial Crimes Defender. All of these announced solutions and relationships support our ongoing mission to supply our community and regional financial institution clients with leading-edge public cloud-native financial technology offerings.
As many of you know, we normally conduct our two largest client conferences in the fall each year. This year, we combined those conferences into one in-person event in San Diego called Jack Henry Connect. We hosted thousands of attendees at the conference, giving us the opportunity to interact directly with many of our existing clients and prospects. Of course, events like this not only present a wonderful opportunity for relationship building and education, but they also generate a significant number of new sales leads.
During the Connect conference, I hosted our Annual CEO forum, attended this year by more than 200 client CEOs. Although we didn't conduct a formal survey during the meeting, the general feedback was that the attendees are concerned about the general economy, but committed to using technology to position their businesses for the future. Last month, we were proud to be included in Newsweek's list of top 100 Most Loved Workplaces. Jack Henry ranked 17th overall and second in the financial services category.
The ranking came as a result of a survey conducted by Newsweek of almost 1.5 million employees at thousands of companies, large and small. The list recognizes companies that put respect, caring and appreciation for their employees at the center of their business model. This is an incredible honor for us in no small part because this list focused on several qualities which we aspire every day: collaboration and teamwork, opportunities for advancement, transparency, corporate citizenship and how our company lives up to its own stated values.
In addition to understanding the need to treat our employees well, we recognize that business risk resulting from climate change constitutes a key component of our risk management responsibility. Our TCFD-aligned disclosure is included in Jack Henry's 2022 sustainability report and details our assessment of Jack Henry's climate-related risks from acute and chronic physical risks to transition risks like greenhouse gas emissions and regulation. I encourage you to visit our corporate responsibility website via the Investor Relations tab for more information about our ESG efforts and to review our published sustainability reports.
As Mimi will highlight in her comments, we recently sold one of our facilities in San Diego. This sale was the result of our ongoing efforts to analyze what our facility requirements will be in the future. We continue to evaluate the best operating model for our company as it relates to remote versus in-office work. As a result, we are not anticipating any significant reduction in our physical footprint at this time. We instead plan to make slower incremental changes that align with our go-forward workforce strategy.
Next week, we will conduct our Annual Shareholder Meeting, and we'll again be hosting this meeting in-person in Monett. We are excited to be able to meet with our shareholders in person, but we're also very aware of the ongoing pandemic-related concerns that arise when you assemble a group of people. With this in mind, we will once again offer an option to observe remotely for those who wish to listen without attending the meeting. Despite the uncertainty caused by the economic challenges we're all dealing with today, let me remind you of a few of the fundamentals about our company, fundamentals we emphasize regularly in our discussions with investors and analysts.
First, slightly more than 90% of our non-GAAP revenue is recurring in nature, and most of it is tied to long-term contracts for critical processing systems. Second, we have a very manageable amount of debt on the balance sheet, and we continue to operate with a solid cash position. Third, we have paid quarterly dividends since 1991, increasing them 33 times over that same period, and we continue to be committed to our dividend policy moving forward. Fourth, we have an extremely engaged workforce, as we've seen in our employee engagement survey results and Best Place to Work awards.
Fifth, our clients are generally well capitalized and, as evidenced by the survey I stated earlier, we're continuing to increase their investment in modernizing their technology infrastructure. And finally, remember that we weathered the financial crisis 15 years ago with very few bumps or bruises, and it's highly unlikely that any near-term economic uncertainty results in a similar level of financial institution impacts.
As we move forward, I remain extremely optimistic regarding our levels of sales activity and customer responses to the solutions we're delivering and the strategies we are executing. We will continue with our disciplined approach to running the company, and we expect that approach to continue to provide stability and solid performance for our employees, customers and shareholders.
With that, I'll turn it over to Mimi for some detail on the numbers.
