Financial Data and Key Metrics Changes - In Q4, the company reported normalized organic revenue growth of 14% and gross profit growth of 13%, both metrics exceeding expectations [50][71] - Adjusted net income for Q4 was $26.3 million, or $0.27 per share, with pro forma net leverage at approximately 2.6 times [72] - The company expects revenue for 2024 to be between $314 million and $320 million, with a free cash flow conversion target of approximately 60% [73][80] Business Line Data and Key Metrics Changes - The consumer payments segment saw organic gross profit growth of 13% in Q4, driven by ongoing demand and new client implementations [51][71] - The business payment segment experienced a gross profit increase of 25%, excluding political media impacts from 2022 [55][71] - Value-added services, particularly instant funding, grew significantly with transactions up approximately 45% year-over-year [54][71] Market Data and Key Metrics Changes - The supplier network increased by 60% year-over-year to over 261,000 suppliers, enhancing the monetization of digital payment flows [60][56] - The company added 10 new credit union clients, bringing the total to 276, indicating strong market penetration [53] Company Strategy and Development Direction - The company aims to enhance its embedded payment solutions within software partners and expand its sales pipeline through new partnerships [49][67] - Strategic initiatives for 2024 include improving go-to-market efficiency, client implementations, and evolving the tech platform [66][68] - The company is focused on organic growth while remaining open to strategic M&A opportunities [69] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential driven by existing clients adopting more payment capabilities and new client acquisitions [50][74] - The outlook for 2024 includes expectations for mid to high teens growth in the underlying business payments segment, excluding political media contributions [89] Other Important Information - The company has a total outstanding debt of $440 million, with a 0% coupon convertible note maturing in February 2026 [79] - The company utilized its share repurchase program to buy back shares in a disciplined manner, with $37.5 million remaining under the current authorization [79] Q&A Session Summary Question: What are the biggest levers for improving free cash flow conversion this year? - The biggest drivers include adjusted EBITDA growing faster than gross profits and reducing CapEx to around 13% to 14% of revenue [85][86] Question: Can you comment on expectations for revenue growth related to political media spend? - The company expects strong growth in political media contributions, estimating a 20% increase from the previous cycle [89] Question: How is the existing client growth bucket defined? - Existing client growth is driven by increased penetration of existing clients and includes clients signed in prior periods that are ramping [93][94]

$57.8 $58.7 Q4 2022 Q4 2023 80% 77% % Margin (5) 13% y/y organic growth, excl. political media (1) Revenue Gross Profit Adjusted EBITDA (2) $35.9 $33.5 Q4 2022 Q4 2023 (3) Growth by Segment – Q4 2023 ($MM) Business Payments 25% 1) Organic growth, excluding political media is a non-GAAP financial measure. See slide 1 under "Non-GAAP Financial Measures" and slide 32 for reconciliation 2) Includes the impact from Intercompany eliminations REPAY's Unique Model Translates Into a Highly Attractive Financial Profi ...

Financial Performance - The company processed approximately $25.7 billion in total card payment volume in 2023, with top 10 clients contributing about 18% of total gross profit[25]. - The Consumer Payments segment represented approximately 87% of total revenue for the year ended December 31, 2023, while the Business Payments segment accounted for approximately 13%[29][30]. - The chargeback rate for the year ended December 31, 2023, was under 1% of the payment volume[47]. - Revenue is sensitive to shifts in payment methods, with higher fees associated with card-based payments compared to ACH payments[122]. - The company faces potential liability for chargebacks associated with fraudulent transactions, which could adversely affect financial performance[134]. Business Strategy and Growth - The company aims to increase penetration in existing verticals by providing innovative payment solutions and support to both existing and new clients[31]. - The company plans to expand into new verticals where it currently has limited operations, leveraging its comprehensive core technology platform[32]. - A significant part of the company's growth strategy involves acquisitions of vertically-focused integrated payment and software solutions providers[158]. - The company has successfully acquired eleven businesses from January 1, 2016, through December 31, 2023, while focusing primarily on organic growth[35]. - The company has completed eleven acquisitions from January 1, 2016, to December 31, 2023, to access new markets and expand its product offerings[59]. Technology and Innovation - The company intends to strengthen its solution portfolio through continued innovation and investment in technology capabilities, including its proprietary RCS platform[33]. - The company emphasizes operational efficiencies to process larger payment volumes without significant increases in personnel and operating expenses[34]. - The company has developed a proprietary Compliance Management System to enhance risk management and ensure adherence to regulations[42]. - The electronic payments market is rapidly evolving, and failure to keep pace with technological changes could result in reduced revenue[115]. - The company relies on a combination of intellectual property laws to protect its proprietary technology, which is critical for success in strategic verticals[153]. Compliance and Regulatory Environment - The Dodd-Frank Act has resulted in significant changes to the regulation of the financial services industry, impacting debit interchange transaction fees and merchant routing restrictions[72]. - The company is subject to extensive governmental regulations regarding consumer information, which could impact its ability to provide products and services effectively[181]. - Compliance with payment network rules is critical; failure to do so could result in fines or suspension of processing capabilities[123]. - The regulatory environment for the electronic payments industry is evolving, and compliance with new laws and regulations could increase operational costs and affect competitiveness[166]. - The company has developed compliance programs to address legal and regulatory requirements related to anti-money laundering and counter-terrorism[78]. Competition and Market Position - The company competes with various payment processing companies, including traditional merchant acquirers and technology firms, focusing on economics, product offerings, service, and reliability[55]. - The payment processing industry is highly competitive, impacting the fees received and overall margins[105]. - The company faces significant competition from larger firms with greater financial and technological resources, which may limit pricing power and profit margins[106]. - The company depends on software integration partners for client acquisition, and these partners may also work with competitors[130]. Employee and Organizational Culture - As of December 31, 2023, the company employed approximately 512 full-time employees across the U.S.[92]. - In 2023, 83% of employees indicated that the company is a great place to work, contributing to its certification as a Great Place to Work® for seven consecutive years[94][95]. - The company emphasizes employee development and retention, with initiatives for career progression and performance-based recognition[96][97]. - The company offers a comprehensive benefits package, including 100% coverage of employee healthcare premiums and a generous 401(k) employer match[100]. Financial Obligations and Risks - The company's ability to service its debt obligations depends on future performance, which is subject to various external factors[187]. - The company may incur future debt obligations that could impose additional restrictive covenants, affecting its financial and operational flexibility[189]. - The conditional conversion feature of the 2026 Notes could adversely affect the company's liquidity if triggered[193]. - The company is dependent on distributions from its subsidiaries to meet financial obligations, which could be limited by various factors[195]. - Economic conditions, including inflation and recession concerns, create challenges in accurately forecasting future business activities[149]. Cybersecurity and Risk Management - The company emphasizes robust cybersecurity programs to mitigate risks and safeguard sensitive data, guided by regulatory requirements[220]. - Cybersecurity breaches could lead to significant financial losses and damage to the company's reputation, increasing operational costs[110]. - The company has a dedicated team for continuous monitoring and security incident response, ensuring compliance with industry security standards[48]. - The company has established systems to detect and reduce business fraud, but effectiveness may vary, and incidents of fraud could increase[136]. Corporate Governance and Shareholder Matters - The board of directors will determine the use of excess cash accumulated from distributions, which may include acquiring additional units or funding stock repurchases[198]. - The board of directors has the authority to issue preferred stock without stockholder approval, which could dilute ownership for hostile acquirers[216]. - Delaware law and the company's governing documents contain provisions that could delay or discourage takeover attempts, potentially affecting the trading price of Class A common stock[214]. - Stockholder actions require a meeting, which may delay proposals or director removals[216].

Financial Performance - Gross profit growth of 2% in Q4 2023 and 6% for the full year 2023[1] - Normalized organic gross profit growth of 13% in Q4 2023 and for the full year 2023[1] - Total revenue increased by 5% year-over-year to $76.0 million in Q4 2023[2] - Revenue for the year ended December 31, 2023, was $296.627 million, an increase of 6.1% from $279.227 million in 2022[25] - Revenue for Q4 2023 was $75,987,000, an increase of 5% compared to $72,673,000 in Q4 2022[30] - For the full year 2023, revenue increased to $296,627,000 from $279,227,000 in 2022, representing a growth of 6.1%[31] - Organic revenue growth for Q4 2023 was 10%, after adjusting for growth from acquisitions and dispositions[36] - Normalized organic revenue growth for Q4 2023 was 14%, indicating strong underlying performance[36] Profitability and Loss - Net loss for Q4 2023 was $77.7 million, impacted by a $75.7 million goodwill impairment loss[3] - Net loss attributable to the Company for the year ended December 31, 2023, was $110.490 million, compared to a net income of $12.836 million in 2022[25] - The company reported a net loss of $117,420,000 for the year ended December 31, 2023, compared to a net income of $8,741,000 in 2022[33] - The Company experienced a loss from operations of $111.413 million for the year ended December 31, 2023, compared to a loss of $47.201 million in 2022[25] - Adjusted EBITDA for Q4 2023 was $33,489,000, compared to $35,882,000 in Q4 2022, reflecting a decrease of 6.7%[30] - Free cash flow for Q4 2023 was $21,787,000, an increase from $13,895,000 in Q4 2022, with a free cash flow conversion rate of 65%[35] - Adjusted Net Income for the year 2023 was $84,942,000, compared to $79,786,000 in 2022, reflecting a year-over-year increase of 6.8%[33] Expenses and Liabilities - Total operating expenses for the year ended December 31, 2023, were $408.040 million, up from $326.428 million in 2022, reflecting a 24.9% increase[25] - Total operating expenses for Q4 2023 were $154,401,000, up from $90,967,000 in Q4 2022, resulting in a loss from operations of $78,414,000[30] - The Company’s total liabilities decreased slightly to $689.045 million as of December 31, 2023, from $698.507 million in 2022[27] Cash Flow and Assets - Cash and cash equivalents as of December 31, 2023, were $118.096 million, compared to $64.895 million as of December 31, 2022, representing an increase of 82.0%[27] - The Company reported a net cash provided by operating activities of $103.614 million for the year ended December 31, 2023, compared to $74.223 million in 2022, an increase of 39.7%[29] - Total assets decreased to $1.519 billion as of December 31, 2023, from $1.627 billion in 2022, a decline of 6.6%[27] Segment Performance - Consumer Payments segment achieved organic gross profit growth of approximately 13% year-over-year[6] - Business Payments segment experienced normalized organic gross profit growth of approximately 25% year-over-year[6] - The company experienced a non-cash goodwill impairment loss in the Business Payments segment for Q4 2023[38] Future Outlook - The company expects 2024 revenue to be between $314 million and $320 million[15] - Free Cash Flow Conversion is expected to improve to approximately 60% in 2024[15] - The company plans to continue focusing on operational improvements and restructuring activities related to acquired businesses[38] Shareholder Information - The weighted-average shares of Class A common stock outstanding were 90,048,638 for the year ended December 31, 2023, compared to 88,792,453 in 2022[25] - Weighted average shares of Class A common stock outstanding increased to 91,206,870 for Q4 2023, compared to 88,519,236 in Q4 2022[40]

Financial Data and Key Metrics Changes - In Q3 2023, the company reported revenue of $74.3 million, representing a take rate of approximately 116 basis points, with card payment volume reaching $6.4 billion [5][82] - Normalized organic gross profit grew by 12% year-over-year, amounting to $56.7 million, after excluding contributions from Blue Cow and political media [6][82] - Adjusted net income for Q3 was $19.9 million, or $0.21 per share [7] - The company had approximately $118 million in cash and $185 million in undrawn revolver capacity, totaling $303 million in liquidity, with total outstanding debt of $440 million [8][84] Business Line Data and Key Metrics Changes - The Business Payments segment saw a gross profit increase of 13%, driven by strong sales momentum in healthcare, property management, auto, and municipality verticals [1][82] - The Consumer Payments segment reported a 14% organic gross profit growth, supported by ongoing secular tailwinds and large client implementations [69][82] - The company added 9 new credit unions, bringing the total to 266, with the credit union market representing over $185 billion in annual total payment volume [71] Market Data and Key Metrics Changes - The company is now integrated with 257 software partners, with 96 in the Business Payments segment and 161 in the Consumer Payments segment [66][2] - The Instant Funding product experienced a significant growth in transaction volume, up approximately 50% year-over-year [76] Company Strategy and Development Direction - The company is focused on enhancing its technology and payment solutions, aiming to streamline the payment experience for clients and their customers [65][68] - There is a strong emphasis on partnerships with software providers to expand service offerings and improve client integration [4][66] - The company is exploring M&A opportunities while maintaining a strong balance sheet and cash generation for organic growth [4] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum heading into Q4, expecting adjusted free cash flow conversion to accelerate into 2024 [10] - The company anticipates a potential slowdown in the macroeconomic environment, particularly in the auto market, which may impact future performance [93] - Management noted that the competitive landscape remains stable, with expectations for growth in the political media segment due to the upcoming presidential cycle [113] Other Important Information - The company has implemented various automation processes to enhance productivity across its operations, particularly in charge-backs, compliance, and risk monitoring [68] - The company reaffirmed its gross profit outlook for 2023, expecting normalized organic gross profit growth of 9% to 14% [85] Q&A Session Summary Question: Insights on free cash flow conversion - Management indicated that capital expenditures (CapEx) are expected to decrease to 12% to 14% of revenue next year, which will enhance free cash flow conversion [13] Question: Performance in the consumer business - Management reported strong year-to-date performance with normalized 13% organic growth, driven by enterprise wins and digital transformation trends [15] Question: Fourth quarter normalized organic gross profit outlook - Management acknowledged the challenges of lapping strong results from the previous year but remains optimistic about trends observed in October [93] Question: Trends in payment cost acceptance from enterprise suppliers - Management noted no significant pushback on virtual card acceptance and highlighted the growth of their supplier network to over 233,000 [102] Question: Take rate expectations moving forward - Management suggested that while take rates may decrease slightly with more enterprise wins, gross profit dollars are expected to increase, leading to faster growth [24] Question: Competitive landscape in the domestic healthcare space - Management reported positive momentum in healthcare wins and noted that implementation delays were specific to client size and technical capabilities [34] Question: Impact of the upcoming political cycle on growth - Management expects a 25% growth in gross profit for the political media segment due to the larger presidential cycle compared to the previous non-presidential cycle [113]

Financial Performance - Total revenue for Q3 2023 was $74,320,000, representing a 3.5% increase from $71,555,000 in Q3 2022[10] - Net loss attributable to the Company for Q3 2023 was $6,168,000, compared to a net income of $5,845,000 in Q3 2022[10] - For the nine months ended September 30, 2023, the net loss was $39.746 million compared to a net income of $16.906 million for the same period in 2022[19] - Total revenue for the three months ended September 30, 2023, was $74.3 million, an increase from $71.6 million in the same period of 2022[102] - Total revenue for the nine months ended September 30, 2023, was $220.6 million, a 6.4% increase from $206.6 million in 2022[161] - The Company reported a net loss of $39.746 million for the nine months ended September 30, 2023, compared to a net income of $16.906 million in the same period of 2022[157] Expenses and Costs - Operating expenses for Q3 2023 totaled $79,439,000, up from $76,988,000 in Q3 2022, reflecting a 3.0% increase[10] - Total operating expenses for the nine months ended September 30, 2023 were $253.589 million, an increase from $235.461 million in the prior year[157] - Costs of services for Q3 2023 were $17.6 million, up 6.0% from $16.6 million in Q3 2022, attributed to new client growth[122] - Selling, general and administrative expenses decreased by 2.1% to $35.3 million in Q3 2023 from $36.0 million in Q3 2022[123] - The company incurred depreciation and amortization expenses of $79.146 million for the nine months ended September 30, 2023, down from $82.442 million in 2022[19] Cash and Liquidity - Cash and cash equivalents increased to $117,730,000 as of September 30, 2023, from $64,895,000 at the end of 2022, marking an 81.5% increase[8] - Cash flows from operating activities provided $68.751 million, an increase from $52.392 million in the prior year[19] - Total cash, cash equivalents, and restricted cash at the end of the period was $141.390 million, up from $86.726 million at the end of September 2022[19] - The company had $117.7 million in cash and cash equivalents as of September 30, 2023, with an available borrowing capacity of $185.0 million under the Amended Credit Agreement[173] Debt and Liabilities - Total liabilities decreased to $680,421,000 as of September 30, 2023, from $698,507,000 at the end of 2022, a reduction of 2.6%[8] - The Company’s long-term debt stood at $433,454,000 as of September 30, 2023, slightly down from $451,319,000 at the end of 2022, a decrease of 4.0%[8] - The Company had $0 drawn against the revolving credit facility as of September 30, 2023, with an undrawn capacity of $185 million[67] - The carrying value of the 2026 Notes was $433.5 million as of September 30, 2023, compared to $451.3 million at the end of 2022[54] Equity and Stock Performance - Total stockholders' equity as of September 30, 2023, was $902,346,000, down from $928,293,000 at the end of 2022, a decrease of 2.8%[8] - The Company recognized a loss of $10 million associated with the sale of Blue Cow Software, LLC, which had cash proceeds of $41.9 million[22] - The Company has a share repurchase program approved for up to $50 million of its outstanding Class A common stock[175] Segment Performance - The Consumer Payments segment accounted for approximately 87% of total revenue for both the three and nine months ended September 30, 2023, generating $68.7 million and $204.6 million respectively[99][102] - Business Payments segment revenue decreased by 15.2% to $9.7 million in Q3 2023 from $11.4 million in Q3 2022, impacted by declines in media payments[140] - Revenue for the Consumer Payments segment increased by 9.1% to $68.7 million in Q3 2023 from $63.0 million in Q3 2022[138] Tax and Regulatory Matters - The effective tax rate for the three months ended September 30, 2023, was 24%, compared to an effective tax rate of (9.7%) for the same period in 2022[87] - The Company recognized an income tax benefit of $2.0 million for the three months ended September 30, 2023[87] - The company has concluded that all deferred tax assets associated with the ceiling rule limitation are not likely to be realized, resulting in a 100% valuation allowance[92] Future Outlook - The Company plans to continue focusing on market expansion and new product development to drive future growth[10] - The company anticipates that cash flow from operations and available borrowing capacity will be sufficient to fund operations and capital expenditures for the next twelve months[173] - The company continues to monitor macroeconomic conditions, including inflation and rising interest rates, which may impact payment volumes and overall financial performance[111]

Repay Holdings Corporation (NASDAQ:RPAY) Q2 2023 Earnings Conference Call August 9, 2023 5:00 PM ET Company Participants Stewart Grisante - Head, IR John Morris - CEO, Co-Founder & Director Timothy Murphy - CFO Conference Call Participants Ramsey El-Assal - Barclays Peter Heckmann - D.A. Davidson Andrew Schmidt - Citigroup Inc. Andrew Jeffrey - Truist Securities Timothy Chiodo - Credit Suisse Operator Good afternoon. I'd like to welcome everybody to REPAY's Second Quarter 2023 Earnings Conference Call. Th ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Repay Holdings Corporation (Exact name of Registrant as specified in its Charter) (Mark One) Delaware 98-1496050 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 3 West Paces Ferry Road, Suite 200 Atlanta, GA 30305 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (404) 504-7472 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR ...

Repay Holdings Corporation (NASDAQ:RPAY) Q1 2023 Earnings Conference Call May 10, 2023 5:00 PM ET Company Participants Stewart Grisante - Head, IR John Morris - CEO, Co-Founder & Director Timothy Murphy - CFO Conference Call Participants Ramsey El-Assal - Barclays Bank Peter Heckmann - D.A. Davidson & Co. Andrew Schmidt - Citigroup Timothy Chiodo - Crédit Suisse Andrew Jeffrey - Truist Securities Adib Choudhury - William Blair & Company James Faucette - Morgan Stanley Joseph Vafi - Canaccord Genuity Michael ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Delaware 98-1496050 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 3 West Paces Ferry Road, Suite 200 Atlanta, GA 30305 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (404) 504-7472 Securities registered pursuant to Sec ...