Hello, and welcome to the Jack Henry & Associates Inc. Annual Meeting of Stockholders. Please note that today's meeting is being recorded. It is now my pleasure to turn today's meeting over to Jack Prim, Chairman of the Board of Directors of Jack Henry & Associates Inc. Mr. Prim, the floor is yours.
Thank you, Chris. Good morning, stockholders, employees, and friends. I am Jack Prim, Chairman of the Board of Jack Henry & Associates, and it is my pleasure to welcome all of you. In accordance with the notice of the meeting, I call to order the 43rd Annual Meeting of Stockholders of Jack Henry & Associates Inc. Today's meeting is in a virtual-only format as a live audio webcast. We have determined to hold this meeting virtually due to the continuing public health concerns about COVID-19. We believe this technology will still enable us to engage with our stockholders despite not holding this year's meeting in person. There are materials provided to you via links in the lower left hand of the Meeting Center screen.
There you will find a copy of the order of business and the rules of conduct by which we will conduct this meeting, along with a copy of the annual report and the proxy statement. In the official part, we need to elect all nine of our directors to serve for the next year. We will seek the approval of an amendment to our certificate of incorporation to remove a supermajority voting standard for stockholder approval of an acquisition of the company by another person or entity, as well as two other items of official business. Then we will have our brief annual presentations and a time at the end for questions and answers. Before proceeding to the business meeting, I would like to make certain introductions. I first present the board of directors who are candidates for reelection: Matthew C. Flanigan, Thomas H. Wilson, Thomas A. Wimsett, Jacque R. Fiegel.
Laura G. Kelly, Shruti S. Miyashiro, Wesley A. Brown, David B. Foss, and me, John F. 'Jack' Prim. Each director is in attendance at this meeting. In attendance are the following officers of the company: David B. Foss, President and Chief Executive Officer, Kevin D. Williams, Chief Financial Officer and Treasurer, Greg Adelson, Chief Operating Officer, and Craig R. Morgan, General Counsel and Secretary. Also in attendance today are representatives of our independent registered accounting firm, PricewaterhouseCoopers LLP, Stephen Maggio, Lead Partner, and Jonathan Caleff, Senior Manager. They will be available to answer any proper questions you may have during the question and answer portion of the meeting. Thomas Cooper, representative of Computershare, our transfer agent, is in attendance to assist in tabulation of proxies and ballots and will act as inspector of election.
I will also add that the minutes of last year's annual meeting are available, and any stockholder wishing to inspect the minutes should contact our Assistant Corporate Secretary, Mary Stluka, at mstluka, M-S-T-L-U-K-A, at jackhenry.com. Craig Morgan, General Counsel and Corporate Secretary, will now report on the mailing of the notice of this meeting in the presence of a quorum.
I have an affidavit from Computershare Trust Company, N.A., the company's transfer agent, that states that the mailing of our proxy materials commenced on October 5th, 2020. The materials were distributed to stockholders of record as of September 21st, 2020. Thomas Cooper, representing Computershare, is serving as the inspector of election for this meeting, and he has delivered his oath of office to me. The affidavit, oath, and all documents concerning the call and notice of this meeting will be filed with the records of this meeting. The inspector of election has certified that at the beginning of this meeting there were present in person, virtual format, or by proxy 69,863,905 votes, or 91.53% of the total voting power, indicating that a quorum is present for the meeting.
A list of stockholders entitled to vote at this meeting has been available at the company headquarters for the past 10 days and is available today to stockholders through a link on the meeting center screen.
Thank you, Craig. I hereby declare a quorum present at the meeting. On behalf of the board of directors, I would like to express my appreciation to all stockholders who returned their proxies. The formal business of the meeting will now proceed. Those stockholders who have returned their proxy and do not wish to change their vote need not vote as your proxy has been counted. Stockholders who did not return a proxy or who wish to change your vote may do so by clicking on the Cast Your Vote link appearing on the meeting page and following the instructions provided there. The first item of business is the election of nine directors to serve until the 2021 annual meeting of stockholders or until their successors are duly elected and qualified.
As indicated in the company's proxy statement and notice of this meeting, the board of directors has nominated the following nine persons: Matthew C. Flanigan, Thomas H. Wilson, Thomas A. Wimsett, Jacque R. Fiegel , Laura G. Kelly, Shruti S. Miyashiro, Wesley A. Brown, David B. Foss, Jack Prim. Mr. Morgan, General Counsel and Corporate Secretary, has informed me that there were no stockholder nominations or proposals for other business for this meeting timely filed with the secretary prior to this meeting. The next item of business will be to approve on an advisory basis the compensation of our named executive officers. This vote is commonly referred to as the say-on-pay vote.
Specifically, the board of directors has recommended that you vote on an advisory basis to approve the following resolution: Resolved that the compensation paid to the named executives as disclosed in the company's proxy statement for the 2020 annual meeting of stockholders, pursuant to the compensation disclosure rules of the Securities and Exchange Commission, including the compensation discussion and analysis, the compensation tables, and related narrative disclosure, is hereby approved. For your information, the named executives for fiscal year 2020 were David Foss, President and Chief Executive Officer, Kevin Williams, Chief Financial Officer and Treasurer, Greg Adelson, Chief Operating Officer, Craig Morgan, General Counsel and Secretary, and Steven Tomson, Senior Vice President and Chief Sales and Marketing Officer.
The next item of business will be to vote on a proposed amendment to our certificate of incorporation to remove the current provision that requires the affirmative vote of the holders of at least two-thirds of the company's stock entitled to vote to approve an acquisition of the company by another person or entity. This supermajority vote is not required if the transaction is recommended to stockholders by at least two-thirds of the members of the board, in which case only the vote of a simple majority of the company's stock entitled to vote is required. If the stockholders approve this proposal, the full text of Section 6.2 of the certificate of incorporation would be deleted in full, and the voting requirement for such acquisitions of the company by another person or entity would be the approval of the holders of a majority of the outstanding shares entitled to vote.
Approval of this proposed amendment at this meeting requires the affirmative vote of at least two-thirds of the outstanding shares of common stock of the company. The next item of business will be to vote on ratification of the selection of PricewaterhouseCoopers LLP as the company's independent registered public accounting firm for the fiscal year ending June 30th, 2021. The proposals are now introduced. I have been informed that there are no questions related to the proposals at this time. Questions unrelated to these proposals may be answered during the general question and answer session that will follow the adjournment of this meeting. All proposals are formally before the meeting. We will pause briefly to allow voting to conclude. We will wait a few more moments. I hereby declare the polls to be closed.
The secretary will now report the preliminary tabulation results of all balloting for the election of directors and the other matters presented to the stockholders.
The inspector of election has provided the preliminary report to me, which certifies that each of the nine nominees for director has been elected by a majority of the votes cast. The compensation of the named executive officers has been approved by a majority of the votes cast. The amendment to the certificate of incorporation to remove a supermajority voting standard for stockholder approval of an acquisition of the company by another person or entity has been approved by at least two-thirds of the outstanding shares of common stock, and the ratification of PricewaterhouseCoopers LLP as the company's independent registered public accounting firm has been approved by a majority of the votes cast. The final vote tally will be disclosed on a Form 8-K that we will file with the SEC.
Thank you, Craig. This concludes the official business of the meeting. I declare this 43rd annual meeting of stockholders is adjourned. And now it is time for the informal part of our annual meeting with the presentations by your CEO, Dave Foss, and CFO, Kevin Williams.
Thank you, Jack. Good morning, everybody. We're happy to have you with us today. Of course, we wish that we were with you in person, but thank you for joining us in this virtual format. Before I get into my presentation, I do want to point out that we will, as usual, answer questions at the end. So I'll do my presentation. Kevin will offer his presentation. And then at the end, we'll answer any questions that you may have. We need those questions to be submitted, however, electronically. So what you see on the screen in front of you is a screenshot of the left-hand side of what you should be seeing on your screen. And up on the top there, you'll see there's a button that says Click the Chat icon.
If you have a question for one of us, you can click that icon, and then what you see on the right-hand side of your screen will show up. There are the rules on the top, and then at the bottom is where you type your question and click the Submit button, and that will be submitted to us here, and we have somebody on standby to review those questions and pass them off to Kevin, myself, or Jack at the very end. But getting into the presentation, so we'll go one more forward. As usual, we'll start with our strategic direction, and this is unchanged over the past several years. We, of course, provide core processing systems to financial institutions, banks, and credit unions in the United States, almost 100% in the United States. We offer lots of other technology to wrap around the core systems.
That third bullet there is one that we've really started to focus on in the past few years because every bank and credit union has to be successful with these two topics: digital channels and payments. So digital channels, most people think of mobile banking, but that's really all the things that they do to enable the functionality of their bank or credit union for their consumers, their members, when they're not in the branch or in one of the locations. And then, of course, payments becoming a more and more important part of everyday life and us enabling those electronic payments. We offer standalone solutions to institutions that don't use a Jack Henry Core. That's primarily our ProfitStars strategy. We work with partners to offer some solutions outside the financial services space. We emphasize integration and superior customer service.
We'll talk about that a little bit more here in a second. We focus on developing our people and our culture, something Jack Henry has always been known for as our outstanding culture. And then we make acquisitions that support the above strategies. A little bit about our company as it sits today. We continue to operate with a fortress balance sheet, minimal debt, essentially no debt, and net cash positive. We continue to operate with strong organic revenue growth. Our profit margins are among the highest in the industry. Well over 80% of our revenue is now recurring in nature. That's good news because that means the revenue keeps coming in the door even as we're going through things like the pandemic, which is the emphasis of the next bullet: a business profile that has proven to be resistant to significant economic challenges.
So we weathered the Great Recession back in 2008, 2009 well, and of course, this challenging time that we're in today, because of the business model that we operate under, we're pretty resistant to any major swings in the performance, the financial performance of our company. Then the last bullet here, maybe the most important bullet, we have a highly engaged workforce, and certainly we've experienced that as we've worked through the pandemic. So if you look back on the last year, since the last time we met, a number of things have changed, obviously for all of us. On the left-hand side here, we are very proud of the fact that our team at Jack Henry quickly responded to the pandemic.
Back in March, when it really became apparent that this was going to have a significant impact on our country, our technology team within four days transitioned us from a 27% work-from-home status to a 96% work-from-home status, so think about that. Thousands of employees who had been working in offices, and within four days, we transitioned them to work from home, and we didn't miss a beat, didn't impact our customers negatively in any way, and then for our customers, we offered a wide variety of solutions to help deal with the pandemic. We enhanced our lending solution to help with PPP loans. We enhanced our digital platform, our call center offering, all to help our customers as they were dealing with the impacts of the pandemic and as they were transitioning to a work-from-home status.
On the left-hand side, through all of that, we delivered a solid financial performance despite all the challenges. We hosted a couple of very successful virtual client conferences with thousands of attendees from our clients, learning about new Jack Henry solutions and receiving education about solutions they already had. And then, interestingly, June, right in the middle of the pandemic this year, was our most successful sales month ever at Jack Henry, and the fourth fiscal quarter, the June quarter, was our most successful sales quarter in the history of the company. A really outstanding performance by the Jack Henry team during all of this time of transition. Of course, this came with some significant challenges, COVID-19 in particular. Sales is performing well, but getting all of those sales contracts executed has become much more challenging than it was before.
If you think about it, our teams at our banks and credit unions are spread out. Their teams that they depend on, legal, for example, when they're trying to get a contract finished, they're spread out, and so it's added some time to our sales contracting processes. Work-from-home fatigue is a real thing, and it's certainly not just at Jack Henry. It's true for many companies out there, and I say here, despite the positive feedback from our team, so in August, we did a survey of our team members. 73% of our associates responded to the survey, and the survey was about asking them how their life is in this time of COVID where they're trying to work and be the school superintendent on their dining room table and all the things that people are dealing with, and the response for our employees was really, really positive.
They feel like they're really in a position to be successful. But we do know that working from home for a lot of people is very fatiguing, and so we're very sensitive to that. Our financial institutions, our partners, many of them are reworking their long-term objectives. They all of a sudden had to focus on enabling a remote workforce and really focused on new digital platforms. And so that has introduced some uncertainty into our interactions with our customers. The cost of security and governance and compliance continues to go up. The bad guys are out there trying to do things to companies and to companies like ours and customers like our customers trying to hack into their systems and so on. So all of those costs continue to increase for Jack Henry.
Our ongoing capital investment requirements continue to increase, whether it's our internal infrastructures or research and development projects that we have going on, and then talent acquisition and retention. Some of that is undecided or undetermined at this point because we have to get through COVID and figure out where everybody's at as far as recruiting new talent, but that continues to be a challenge for all of us just because of all the uncertainty that's inherent in the work environment today. Disruption does create some opportunities, however, for a company like ours, so I've mentioned a couple of times the focus that our customers have on digital usage now. We provide digital solutions. We sell digital technology. And so because of that enhanced focus that our customers have in that area, that has created opportunities for us to sell new solutions. Increased use of contactless payments and immediate payments.
We are a provider of those solutions. So that has provided sales opportunities for Jack Henry. A renewed consumer focus on financial guidance and advice. So the acquisition that we did in July of last year, Geezeo, that's exactly what Geezeo does. We, of course, didn't anticipate the pandemic, but the pandemic has created opportunities for us so that our customers can provide to their consumers that technology that gives them some guidance around how to handle their finances. We see acceleration in the cloud adoption. We've been focused on that for years. Restructuring of operational processes for our customers. We sell workflow technology that helps them do that. And then, of course, for both us and our customers, an increased opportunity to leverage a distributed workforce. So we're helping our customers deal with that.
And then at Jack Henry, we've found some great opportunities to be more efficient through remote workforce. We still run the company with the same pillars of success that we've talked about many times in the past. We have our associates, our clients, and our shareholders. We try to create an outstanding work environment for our associates with the idea that if we have that culture that keeps them engaged and keeps them loyal to our company, they will want to deliver great service and great solutions to our clients. So that's the next pillar. If our clients are happy, continue to buy stuff from us and continue to remain Jack Henry clients, that takes care of our shareholders in return. So let me touch on each of these three pillars in just a little bit of detail, and we'll start with our associates.
One of the best gauges that we have for how we're doing in the eyes of our associates is these Best Place to Work awards that we win very regularly. And I'm sure you've seen press releases about this. We've talked about it pretty regularly. So most of these are 2020 or 2019. I will tell you some of these that are 2019 logos. We already know that we've won in 2020, but they haven't been publicly announced, so we can't put the new logos up. But we've won several now in 2020, some that aren't up there on the screen. So lots of recognition now in 2020. The one I will highlight just to the, well, the one in the center on top, we've talked about it quite a bit. That's Forbes magazine.
Forbes, we expected to be awarded again a Best Place to Work this year with Forbes. They didn't do their contest this year because of COVID-19. So nobody was awarded the Best Place to Work from Forbes this year. The one just to the right of center there, that's American Banker, Best Places to Work in Fintech. I highlight that one pretty regularly because they only recognize 50 companies. And normally, when you hear the word fintech, people think of small kind of startup Silicon Valley companies. And that's true. 47 of the 50 companies on that list fit that profile. They're smaller, closer to startup companies. And then there's Jack Henry. This is our fourth year on this list of fintechs. We're on the cool kids list again, I like to say. Why is that?
Why does a 44-year-old, $1.7 billion revenue, 7,000-employee company make it on that list? It's because of all the terrific technology that our teams have been delivering here, particularly in the past few years. So we're very proud of that recognition from American Banker. So that's a little bit about our associates. The second pillar is our customers. We survey our customers a lot to see what they think about what we're doing. This is kind of the amalgamation of all the survey results from what we call our Daily Grade Card survey, which is if you've interacted with one of our customer service teams today, we may send you a survey asking how'd you do. The average rating for our customer service teams is a 4.7 right now on a five-point scale. And we've been in that range between 4.65 and 4.74.
We've been in that range for many, many months. So on a five-point scale, pretty remarkable performance by our customer service teams. So that was a little bit about our customers and then our shareholders. Kevin will go into a lot more detail, but here's revenue and EPS comparison. Essentially, the exactly what you want to see up and to the right on both of those charts. The one anomaly there, of course, is 2018, where we had a significant positive impact because of the Tax Cuts and Jobs Act. So the column just to the right of the one that's much larger there, that's the normalized number for Tax Cuts and Jobs Act. So solid financial performance again. And as I said, Kevin will go into a lot more detail on that.
I do want to point out that with that solid performance comes an ongoing commitment to invest in research and development, so the Best Place to Work award that we won in the Fintech space with American Banker, a lot of that, I think, is driven by all the new technologies that we've been rolling out, and to do that, we have to remain committed to investing in new innovations, and that's what's reflected here. We're putting 14% of revenue back into R&D on a rising revenue number. We're holding that 14%, and I think that's what's driving a lot of that recognition, and some of the things we're focused on are on the right-hand side of the sleeve, on the right-hand side of the slide here, so I won't read every one of those to you, but you see digital at the top of the list.
Payments is on the list, of course. And then a couple of key things at the bottom there with our commercial lending technology, allowing customers to do complete online origination of loans, application for the loan, and have the loan originated online. And then our open banking strategy to enable our bankers to connect to whatever technology they want to connect to. So if you look at our company today, we continue to operate with four core processing solutions. Those of you who've been through this presentation in the past, you know we had five on that list before. We just recently divested the CruiseNet application. So that's four core processing systems now. 62% of our core customers are on our private cloud. We have more than 6,800 associates, $1.7 billion in revenue. We hover around $12 billion market cap.
As I mentioned last year, we were named in 2018 to the S&P 500, and we're proud of that recognition as well. A couple of things that I've talked about in the past that I committed that I would update you on every year was the efforts that our teams go to give back to the communities that we serve. We kind of divide the communities into two different flavors. One is the business, the industry that we're in, so that professional community that we're in, which is financial technology. Then the other community would be where we live and where we have offices. First off, this is where we give back to the professional community that we live in. You see several logos here of organizations that we have team members volunteering their time, on their own time, by the way, to serve industry organizations.
You'll see FS-ISAC up there, for example, which is an organization focused on securing the financial industry within the United States, very closely aligned with Homeland Security. You'll see the Association for Financial Technology, Nacha, which is a ACH payments provider, several other logos. Our teams have given over 1,400 hours this past year in service of those organizations. And those hours, by the way, are a combination of hours that have been self-identified by team members. So I know that number is much larger, people who don't want to get any credit for the time that they're spending. But we're very proud of the time that we're giving back to the industry. And then when it comes to the communities that we live in, our teams do many initiatives throughout the year to raise money for different organizations that they're passionate about.
So this isn't just Jack Henry writing a check saying, "We're going to give some money to some organization." This is our teams that have decided on different organizations they want to support. And a few of the logos are here on the bottom. And again, I'm pretty confident this number is undercounted because a lot of our teams don't necessarily want to take credit for the things that they're doing to help the communities that they serve. But we're very proud of the level of engagement that our teams have. So as you look at our company tomorrow and beyond, we will continue to be focused in financial service, maintain our high levels of customer service and satisfaction, deliver highly integrated business solutions, leverage advanced technologies in delivering the things that we deliver, and then pursue disciplined acquisitions.
We continue to look for acquisitions to augment the solution set that we offer at Jack Henry. And as we do all of that, we continue to live by the philosophy that has been kind of the guiding light for this company since day one. We try to do the right thing, do whatever it takes, and have fun. We do the right thing, do whatever it takes in service of our customers. As a leadership team, we try to do the right thing and do whatever it takes in service of our associates. And that's, I think, what creates this really Best Place to Work culture that we have at Jack Henry. So with that, I do want to thank all of you for your confidence in our company and your investment in JKHY. We're happy to have you here. I will turn it over to Kevin.
As I mentioned earlier, we'll answer questions at the very end. So Kevin will walk you through a financial update, and then we'll turn to questions. So Mr. Williams.
Thanks, David. Appreciate it. First of all, forward-looking statement. I'm not going to read this. This is just to put notice out there that we may make some forward-looking statements, especially if there are questions at the end that we're going to answer. And obviously, there's risks associated with any forward-looking statement, and we have no obligation to go back and change those comments or statements. You can refer to risk factors within our 10-K in the forward-looking risk factors and forward-looking statements. So this is kind of a repeat of one of Dave's slides. Revenue did go up nicely this year. Actually, revenue went up 9%. EPS went up $0.10. And just to make sure we're clear on the first two columns on EPS, the Tax Cuts and Jobs Act.
The reason we do that is because there was about $1.40 of EPS impact, positive impact that year, which there was actually no impact from cash flow. It was just an adjustment for our deferred taxes that we got a huge benefit from that. Obviously, if there's changes in tax laws going forward, we could have similar instances going forward, but they would probably most likely go the other way. We report our revenue in three different segments: core, payments, and complementary, well, corporate is kind of a catch-all. So there's really four segments we report. The core segment is really primarily in-house maintenance for our customers that choose to still be on-prem, and then obviously, the core processing in our private cloud, which is, Dave said, 62% of our core customers are now in our private cloud. Payments is primarily made up of three buckets.
It's card processing, both debit and credit, which we recently got into credit with when we moved over to the new payments platform. Also in there is our iPay, which is our online bill pay, and Biller Direct solutions that are in there. Then the third bucket within payments is complementary, which is everything complementary, which could be anything from check documents, document imaging, digital, any number of things that are going to be caught in that complementary. Then corporate, again, is kind of a catch-all for all the G&A type things to come up again to 9% total revenue growth for the year last year. Another big thing that obviously all of our shareholders look at is our operating cash flow and how that's growing. Our operating cash flow obviously went up very nicely this last year. I'll talk a little bit more about it.
Part of that increase in cash flow was due to, obviously, the large increase in net income, but also due to a large increase in deconversion fees that we saw last year that went up. And what the deconversion fees are is, when one of our customers on a long-term contract gets acquired, they have to pay us to get out of that contract. And we had some unusual fluctuations in that last year. But again, our operating cash flow went up very nicely last year. And then what do we do with that operating cash flow? That operating cash flow for individuals is kind of like your take-home pay. And obviously, you have to pay mortgages and different things. We have to do things like reinvest in our infrastructure through CapEx. Obviously, as Dave mentioned, we do a lot of development of new products and enhancements of existing products.
So that's where we use a lot of that operating cash flow is in CapEx and Cap Software. Then what's left over is free cash flow. And obviously, one of the things that we look at is how we're converting our net income to free cash flow. And we typically like to be at or above 100%. That's kind of a target or a threshold that's kind of set out there for us and by our sell-side analysts. They like to see that. And obviously, this last year, we were at about 116% conversion of net income to free cash flow, which is a very, very solid statement for our financials. And what do we do with that free cash flow? Obviously, we've paid dividends. We started paying dividends back in 1992. We've increased the payout in dividends every fiscal year since we put the program in place.
We are just slightly above a 1% yield right now compared to our stock price. And the other thing we do with this free cash flow is we do buy stock back. We did buy some shares back this year. Obviously, this reduces the number of diluted shares out there, which allows us to grow earnings per share or EPS a little faster, which is one of the things that shareholders really like to see out there. So we will continue to use our cash like this. As Dave mentioned, we would like to find the right acquisitions that would give us the growth and give more growth and larger earnings per share to our shareholders. But the M&A market is pretty tough out there right now.
So the question I get a lot of times is, "What are you going to do with your capital going forward?" You're probably going to see more of the same that we've done the last two years. We'll hopefully find a few tuck-in acquisitions like the one we did last year, Geezeo, to tuck in and improve our product offerings to our customers. But we'll continue to increase our dividends, and then we'll continue to use excess cash for stock repurchases and probably keep mostly a net cash-neutral balance sheet. So here's just a snapshot of our FY20 condensed income statement compared to the prior year. Obviously, 9% growth in revenue and 10% growth in earnings per share is very solid. Quick snapshot of our balance sheet. As of June 30th, we had $213 million in cash, which was up nice from the year ago.
That cash, if you remember, we get a lot of cash inflow in our Q4. And again, we're a June 30 year-end. So we get a large inflow in Q4 and Q1 because we do our annual maintenance billings on June 1st, and we collect the vast majority of that in those two quarters. So that's why our cash goes up significantly by the end of June 30th. And then we just announced our first quarterly results two weeks ago. So I'll cover those really quickly. On a GAAP basis, and again, this is how we report our numbers. So on a GAAP basis, Generally Accepted Accounting Principles, our revenue went up 3%, our net income went up 2%, and our earnings per share went up 3%. And so then on a non-GAAP basis, we also reported in our press release and our 10-Q.
You look there at the bottom, the non-GAAP things. The only thing that we're backing out of this is deconversion fees, as I talked about at the beginning of the presentation. These deconversion fees we have no control over. Our deconversion fees actually went up over $33 million for FY20 compared to FY19. The guidance we gave on our year-end earnings call was we believe that our deconversion fees will probably be down roughly $33 million compared to last year. First quarter was right in line with what we anticipated. We still think we were going to be down significantly. If you forget about the deconversion fees, because again, we have no control of these. These are when one of our customers gets acquired and they cut us a check to get out of the contract.
So we back those out and just look at the top part of the slide to really look at our true operations, our true business. And if you back that out, our revenue actually went up right at 5.5%, and operating income went up 7%, which we are extremely proud of with all the COVID-related challenges that we've had out there, which has put some pressure on delivering licenses and hardware and on-prem implementations and different things. So we continue to see that. But as I said, we got some really nice margin expansion in Q1, even with all those challenges going on. And then lastly, our balance sheet at the end of September, again, we're still sitting on about $195 million in cash and no debt. That's another thing. And as we announced 18 months ago, so we just renewed our revolver, which we increased the capacity of that.
So we've got a $700 million revolver that we can tap if we do find the right acquisition with lots of cash sitting on the balance sheet. So with that. Okay. I have been informed that we have no questions that have been submitted. So with that, I'll turn it over to Jack.
Very well. This concludes our meeting. I thank you for joining us under these unique circumstances in this virtual format.
Ladies and gentlemen, this does conclude the meeting. You may now disconnect and have a pleasant day.