Repay (US:RPAY)2024-11-12 21:07Financial Performance - Q3 2024 revenue reached $79.1 million, a 6% year-over-year increase[2] - Gross profit for Q3 2024 was $61.6 million, reflecting a 9% growth compared to the previous year[2] - Adjusted EBITDA for Q3 2024 was $35.1 million, representing a 10% increase year-over-year[2] - Free Cash Flow for Q3 2024 surged to $48.8 million, a 250% increase compared to the same quarter last year[2] - Revenue for the three months ended September 30, 2024, was $79,145,000, representing an increase from $74,320,000 for the same period in 2023, a growth of 10.3%[20] - Net income for the three months ended September 30, 2024, was $3,215,000, compared to a net loss of $6,484,000 for the same period in 2023, indicating a significant turnaround[20] - Revenue for the nine months ended September 30, 2024, was $234,771 thousand, an increase of 6.1% compared to $220,640 thousand in 2023[27] - Adjusted EBITDA for the nine months ended September 30, 2024, was $104,340 thousand, up 12% from $93,317 thousand in 2023[27] - The company reported a net loss of $6,387 thousand for the nine months ended September 30, 2024, a substantial improvement from a net loss of $39,746 thousand in 2023[27] Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended September 30, 2024, was $115,838 thousand, compared to $68,751 thousand in 2023, representing a significant increase of 68.4%[24] - Net cash provided by operating activities for Q3 2024 was $60,058,000, compared to $27,967,000 in Q3 2023, representing a 114% increase[30] - Cash and cash equivalents increased to $168,715,000 as of September 30, 2024, up from $118,096,000 at the end of 2023, reflecting improved liquidity[22] - Cash, cash equivalents, and restricted cash at the end of the period increased to $215,255 thousand from $141,390 thousand in 2023, reflecting a growth of 52.2%[24] - Free cash flow for Q3 2024 was $48,818,000, significantly higher than $13,941,000 in Q3 2023, indicating a conversion rate of 139%[30] Operating Expenses and Profitability - Total operating expenses for the three months ended September 30, 2024, were $79,820,000, slightly higher than $79,439,000 for the same period in 2023[20] - Total operating expenses for the nine months ended September 30, 2024, were $241,371 thousand, a decrease of 4.8% from $253,589 thousand in 2023[27] - Loss from operations for the nine months ended September 30, 2024, was $(6,600,000), a significant improvement from $(32,949,000) in the same period of 2023[29] Client and Network Growth - The company added 13 new credit union clients, bringing the total to 313[5] - The AP supplier network expanded to over 330,000, marking a 42% year-over-year increase[4] - Business Payments gross profit grew by approximately 67% year-over-year, while Consumer Payments gross profit increased by about 2%[4] Debt and Liabilities - Long-term debt increased to $496,214,000 as of September 30, 2024, from $434,166,000 at the end of 2023, indicating a rise in leverage[22] - Total liabilities increased to $794,569,000 as of September 30, 2024, from $689,045,000 at the end of 2023, reflecting higher obligations[22] - The company recorded a gain on extinguishment of debt amounting to $13,136,000 for the three months ended September 30, 2024[20] Strategic Outlook - REPAY updated its 2024 revenue outlook to between $314 million and $320 million[10] - The company aims for a Free Cash Flow Conversion target of approximately 65% for 2024[9] - REPAY's strategy includes organic investments, strategic M&A, and opportunistic share repurchases to drive sustainable growth[3] Share Performance - Weighted-average shares of Class A common stock outstanding - basic were 88,263,285 for the three months ended September 30, 2024, down from 91,160,415 for the same period in 2023[20] - The number of Class A common stock shares outstanding as of September 30, 2024, was 96,259,523, slightly down from 96,778,735 in the same period of 2023[29] - The weighted average shares of Class A common stock outstanding (basic) decreased from 91,160,415 in 2023 to 88,263,285 in 2024[38] - The weighted average shares of Class A common stock outstanding (on an as-converted basis) decreased from 97,052,574 in 2023 to 94,074,811 in 2024[38] Amortization and Intangibles - Amortization of intangibles related to past acquisitions will continue to recur in future periods until fully amortized[36] - Future acquisitions may result in the amortization of additional intangibles[36] - The company emphasizes the importance of understanding the impact of intangibles on revenue generation[36]