REPAY Reports Third Quarter 2024 Financial Results
Repay Holdings (NASDAQ: RPAY) reported its Q3 2024 financial results, highlighting a 9% YoY gross profit growth and 8% YTD growth (9% YTD on an organic basis). Revenue for Q3 2024 was $79.1 million, a 6% increase YoY. The company achieved a 115% increase in net cash provided by operating activities and a 250% increase in free cash flow compared to the previous quarter. Adjusted EBITDA grew by 10% YoY to $35.1 million.
Business Payments segment showed a substantial 67% YoY and 33% YTD gross profit growth, while Consumer Payments segment grew by 2% YoY and 6% YTD. REPAY added three new integrated software partners and 13 new credit unions. The company updated its 2024 outlook, projecting revenue between $314-$320 million, gross profit between $245-$250 million, and adjusted EBITDA between $139-$142 million, with a free cash flow conversion target of approximately 65%.
Repay Holdings (NASDAQ: RPAY) ha riportato i risultati finanziari del terzo trimestre 2024, evidenziando una Crescita del profitto lordo del 9% rispetto all'anno precedente e una Crescita dell'8% da inizio anno (9% da inizio anno su base organica). I ricavi per il terzo trimestre 2024 sono stati di 79,1 milioni di dollari, con un aumento del 6% rispetto all'anno precedente. L'azienda ha registrato un Aumento del 115% del tesoro netto derivante dalle attività operative e un Aumento del 250% del flusso di cassa libero rispetto al trimestre precedente. L'EBITDA rettificato è cresciuto del 10% su base annua, raggiungendo 35,1 milioni di dollari.
Il segmento Pagamenti Aziendali ha mostrato una crescita sostanziale del 67% su base annua e del 33% da inizio anno, mentre il segmento Pagamenti dei Consumatori è cresciuto del 2% su base annua e del 6% da inizio anno. REPAY ha aggiunto tre nuovi partner software integrati e 13 nuove cooperative di credito. L'azienda ha aggiornato le previsioni per il 2024, prevedendo ricavi tra 314 e 320 milioni di dollari, un profitto lordo tra 245 e 250 milioni di dollari e un EBITDA rettificato tra 139 e 142 milioni di dollari, con un obiettivo di conversione del flusso di cassa libero di circa il 65%.
Repay Holdings (NASDAQ: RPAY) informó sus resultados financieros del tercer trimestre de 2024, destacando un Crecimiento del 9% en la utilidad bruta interanual y un Crecimiento del 8% en lo que va del año (9% en lo que va del año en términos orgánicos). Los ingresos para el tercer trimestre de 2024 fueron de 79,1 millones de dólares, un aumento del 6% interanual. La empresa logró un Aumento del 115% en el efectivo neto proporcionado por actividades operativas y un Aumento del 250% en el flujo de efectivo libre en comparación con el trimestre anterior. El EBITDA ajustado creció un 10% interanual, alcanzando los 35,1 millones de dólares.
El segmento de Pagos Empresariales mostró un crecimiento sustancial del 67% interanual y del 33% en lo que va del año, mientras que el segmento de Pagos al Consumidor creció un 2% interanual y un 6% en lo que va del año. REPAY añadió tres nuevos socios de software integrados y 13 nuevas cooperativas de crédito. La empresa actualizó su pronóstico para 2024, proyectando ingresos entre 314 y 320 millones de dólares, utilidad bruta entre 245 y 250 millones de dólares, y EBITDA ajustado entre 139 y 142 millones de dólares, con un objetivo de conversión de flujo de efectivo libre de aproximadamente el 65%.
Repay Holdings (NASDAQ: RPAY)는 2024년 3분기 재무 결과를 보고하며 전년 대비 9%의 총 이익 성장과 연초 대비 8% 성장 (유기적으로는 9% 성장)을 강조했습니다. 2024년 3분기 수익은 7,910만 달러로, 전년 대비 6% 증가했습니다. 회사는 운영 활동에서 제공된 순 현금이 115% 증가하고 자유 현금 흐름이 250% 증가했다고 밝혔습니다. 조정된 EBITDA는 전년 대비 10% 증가하여 3,510만 달러에 달했습니다.
기업 결제 부문은 전년 대비 67% 및 연초 대비 33%의 총 이익 성장을 보여주었고, 소비자 결제 부문은 전년 대비 2%, 연초 대비 6% 성장했습니다. REPAY는 세 개의 새로운 통합 소프트웨어 파트너와 13개의 새로운 신용 조합을 추가했습니다. 회사는 2024년 전망을 업데이트하여 수익을 3억 1,400만에서 3억 2,000만 달러로, 총 이익을 2억 4,500만에서 2억 5,000만 달러로, 조정된 EBITDA를 1억 3,900만에서 1억 4,200만 달러로 예상하며, 자유 현금 흐름 전환 목표를 약 65%로 설정했습니다.
Repay Holdings (NASDAQ: RPAY) a annoncé ses résultats financiers pour le troisième trimestre 2024, mettant en avant une Croissance de 9% du bénéfice brut par rapport à l'année précédente et une Croissance de 8% depuis le début de l'année (9% depuis le début de l'année sur une base organique). Les revenus pour le troisième trimestre 2024 se sont élevés à 79,1 millions de dollars, soit une augmentation de 6% par rapport à l'année précédente. L'entreprise a enregistré une Augmentation de 115% des flux de trésorerie net issus des activités opérationnelles et une Augmentation de 250% des flux de trésorerie libres par rapport au trimestre précédent. L'EBITDA ajusté a augmenté de 10% par rapport à l'année précédente pour atteindre 35,1 millions de dollars.
Le segment des paiements commerciaux a montré une croissance substantielle de 67% par rapport à l'année précédente et de 33% depuis le début de l'année, tandis que le segment des paiements des consommateurs a crû de 2% par rapport à l'année précédente et de 6% depuis le début de l'année. REPAY a ajouté trois nouveaux partenaires logiciels intégrés et 13 nouvelles coopératives de crédit. L'entreprise a mis à jour ses prévisions pour 2024, projetant des revenus entre 314 et 320 millions de dollars, un bénéfice brut entre 245 et 250 millions de dollars, et un EBITDA ajusté entre 139 et 142 millions de dollars, avec un objectif de conversion du flux de trésorerie libre d'environ 65%.
Repay Holdings (NASDAQ: RPAY) hat seine Finanzzahlen für das 3. Quartal 2024 veröffentlicht und hebt ein Wachstum des Bruttoertrags von 9% im Jahresvergleich sowie ein Wachstum von 8% im bisherigen Jahr hervor (9% im bisherigen Jahr auf organischer Basis). Der Umsatz für das 3. Quartal 2024 betrug 79,1 Millionen US-Dollar, was einem Anstieg von 6% im Jahresvergleich entspricht. Das Unternehmen erzielte ein 115%iges Wachstum des Netto-Cashflows aus betrieblicher Tätigkeit und ein 250%iges Wachstum des freien Cashflows im Vergleich zum vorherigen Quartal. Das bereinigte EBITDA wuchs im Jahresvergleich um 10% auf 35,1 Millionen US-Dollar.
Der Geschäftsbereich Zahlungen im Unternehmenssektor zeigte ein erhebliches Wachstum des Bruttoertrags von 67% im Jahresvergleich und 33% im bisherigen Jahr, während der Bereich Zahlungen des Verbrauchersektors um 2% im Jahresvergleich und um 6% im bisherigen Jahr wuchs. REPAY hat drei neue integrierte Softwarepartner und 13 neue Kreditgenossenschaften hinzugefügt. Das Unternehmen aktualisierte seine Prognose für 2024 und prognostiziert einen Umsatz zwischen 314 und 320 Millionen US-Dollar, einen Bruttoertrag zwischen 245 und 250 Millionen US-Dollar sowie ein bereinigtes EBITDA zwischen 139 und 142 Millionen US-Dollar, mit einem Ziel von etwa 65% für die Umwandlung des freien Cashflows.
- 9% YoY gross profit growth in Q3 2024.
- 115% increase in net cash provided by operating activities.
- 250% increase in free cash flow.
- 10% YoY growth in Adjusted EBITDA.
- 67% YoY gross profit growth in Business Payments segment.
- Updated 2024 revenue outlook between $314-$320 million.
- Updated 2024 gross profit outlook between $245-$250 million.
- Net loss of $3.2 million in Q3 2024.
Insights
The Q3 results demonstrate solid financial performance with notable improvements across key metrics. Gross profit grew 9% to
Business Payments segment showed exceptional growth with
REPAY's strategic positioning in vertically-integrated payment solutions shows promising market penetration. The expansion to 276 software partnerships and 313 credit union clients demonstrates successful market diversification. The
The business model's strength lies in its dual-segment approach, with Business Payments showing particularly robust growth. The increased supplier network and software partnerships create a strong moat, while the focus on embedded payment flows suggests sustainable long-term growth potential in both consumer and business segments.
Gross Profit Growth of
Strong Adjusted EBITDA Growth and Accelerating Free Cash Flow Conversion
Updated 2024 Outlook, Increasing Free Cash Flow Conversion for 2024
Third Quarter 2024 Financial Highlights |
||||||||||||||||||||||
(in $ millions) |
|
Q3 2023 |
|
Q4 2023 |
|
Q1 2024 |
|
Q2 2024 |
|
Q3 2024 |
|
YoY Change |
||||||||||
Revenue |
|
$ |
74.3 |
|
|
$ |
76.0 |
|
|
$ |
80.7 |
|
|
$ |
74.9 |
|
|
$ |
79.1 |
|
|
|
Gross profit (1) |
|
|
56.7 |
|
|
|
58.7 |
|
|
|
61.5 |
|
|
|
58.6 |
|
|
|
61.6 |
|
|
|
Net (loss) income |
|
|
(6.5 |
) |
|
|
(77.7 |
) |
|
|
(5.4 |
) |
|
|
(4.2 |
) |
|
|
3.2 |
|
- |
|
Adjusted EBITDA (2) |
|
|
31.9 |
|
|
|
33.5 |
|
|
|
35.5 |
|
|
|
33.7 |
|
|
|
35.1 |
|
|
|
Net cash provided by operating activities |
|
|
28.0 |
|
|
|
34.9 |
|
|
|
24.8 |
|
|
|
31.0 |
|
|
|
60.1 |
|
|
|
Free Cash Flow (2) |
|
|
13.9 |
|
|
|
21.8 |
|
|
|
13.7 |
|
|
|
19.3 |
|
|
|
48.8 |
|
|
|
(1) |
Gross profit represents revenue less costs of services (exclusive of depreciation and amortization). |
(2) |
Adjusted EBITDA and Free Cash Flow are non-GAAP financial measures. See “Non-GAAP Financial Measures” and the reconciliation of Adjusted EBITDA and Free Cash Flow to their most comparable GAAP measure provided below for additional information. |
“Q3 represented another quarter of profitable growth and accelerating Free Cash Flow conversion at REPAY,” said John Morris, CEO of REPAY. “We continue to see growth across many areas of our business and remain focused on executing our strategy to capture embedded payment flows from clients within our verticals. We believe this approach, along with new software partnerships and further enhancing our payment technology platform, will continue to help us drive sustainable growth, strong cash generation, and value for our shareholders. REPAY remains committed to efficiently allocating capital, which may include organic investments, strategic M&A, and opportunistically repurchasing shares.”
Third Quarter 2024 Business Highlights
The Company's achievements in the quarter, including those highlighted below, reinforce management's belief in the ability of the Company to drive durable and sustained growth across REPAY's diversified business model.
-
9% year-over-year gross profit growth in Q3 -
Consumer Payments gross profit growth of approximately
2% year-over-year and6% year-to-date -
Business Payments gross profit growth of approximately
67% year-over-year and33% year-to-date -
Accelerated AP supplier network to over 330,000, an increase of approximately
42% year-over-year - Added three new integrated software partners to bring the total to 276 software relationships as of the end of the third quarter
-
Instant funding volumes increased by approximately
24% year-over-year - Added 13 new credit unions bringing total credit union clients to 313
1 |
Organic gross profit growth is a non-GAAP financial measure. See “Non-GAAP Financial Measures” and the reconciliation to its most comparable GAAP measure provided below for additional information. |
Segments
The Company reports its financial results based on two reportable segments.
Consumer Payments – The Consumer Payments segment provides payment processing solutions (including debit and credit card processing, Automated Clearing House (“ACH”) processing and other electronic payment acceptance solutions, as well as REPAY’s loan disbursement product) that enable REPAY’S clients to collect payments from and disburse funds to consumers and includes its clearing and settlement solutions (“RCS”). RCS is REPAY’s proprietary clearing and settlement platform through which it markets customizable payment processing programs to other ISOs and payment facilitators. The strategic vertical markets served by the Consumer Payments segment primarily include personal loans, automotive loans, receivables management, credit unions, mortgage servicing, consumer healthcare and diversified retail.
Business Payments – The Business Payments segment provides payment processing solutions (including accounts payable automation, debit and credit card processing, virtual credit card processing, ACH processing and other electronic payment acceptance solutions) that enable REPAY’s clients to collect payments from or send payments to other businesses. The strategic vertical markets served within the Business Payments segment primarily include retail automotive, education, field services, governments and municipalities, healthcare, media, homeowner association management and hospitality.
Segment Revenue, Gross Profit, and Gross Profit Margin |
||||||||||||||||||||
|
|
Three Months Ended September 30, |
|
|
|
Nine Months Ended September 30, |
|
|
||||||||||||
($ in thousands) |
|
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
||||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Consumer Payments |
|
$ |
69,189 |
|
|
$ |
68,720 |
|
|
|
|
$ |
214,617 |
|
|
$ |
204,622 |
|
|
|
Business Payments |
|
|
15,297 |
|
|
|
9,704 |
|
|
|
|
|
35,566 |
|
|
|
28,170 |
|
|
|
Elimination of intersegment revenues |
|
|
(5,341 |
) |
|
|
(4,104 |
) |
|
|
|
|
(15,412 |
) |
|
|
(12,152 |
) |
|
|
Total revenue |
|
$ |
79,145 |
|
|
$ |
74,320 |
|
|
|
|
$ |
234,771 |
|
|
$ |
220,640 |
|
|
|
Gross profit (1) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Consumer Payments |
|
$ |
54,889 |
|
|
$ |
53,599 |
|
|
|
|
$ |
170,026 |
|
|
$ |
159,929 |
|
|
|
Business Payments |
|
|
12,013 |
|
|
|
7,188 |
|
|
|
|
|
27,077 |
|
|
|
20,421 |
|
|
|
Elimination of intersegment revenues |
|
|
(5,341 |
) |
|
|
(4,104 |
) |
|
|
|
|
(15,412 |
) |
|
|
(12,152 |
) |
|
|
Total gross profit |
|
$ |
61,561 |
|
|
$ |
56,683 |
|
|
|
|
$ |
181,691 |
|
|
$ |
168,198 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total gross profit margin (2) |
|
78 |
% |
|
76 |
% |
|
|
|
77 |
% |
|
76 |
% |
|
|
||||
(1) |
Gross profit represents revenue less costs of services (exclusive of depreciation and amortization). |
(2) |
Gross profit margin represents total gross profit / total revenue. |
2024 Outlook Update
“REPAY’s solid year-to-date results gives us the confidence in double-digit Adjusted EBITDA growth and accelerating Free Cash Flow Conversion,” said Tim Murphy, CFO of REPAY. “We are updating our reported Free Cash Flow Conversion target from approximately
REPAY updated its outlook for full year 2024, as shown below.
|
Full Year 2024 Outlook |
Revenue |
|
Gross Profit |
|
Adjusted EBITDA |
|
Free Cash Flow Conversion (1) |
~ |
(1) |
Free Cash Flow Conversion represents Free Cash Flow / Adjusted EBITDA. Free Cash Flow and Adjusted EBITDA are non-GAAP financial measures. See “Non-GAAP Financial Measures” and the reconciliation of Free Cash Flow and Adjusted EBITDA to their most comparable GAAP measure provided below for additional information. |
REPAY does not provide quantitative reconciliation of forward-looking, non-GAAP financial measures, such as forecasted 2024 Adjusted EBITDA and Free Cash Flow Conversion, to the most directly comparable GAAP financial measure, because it is difficult to reliably predict or estimate the relevant components without unreasonable effort due to future uncertainties that may potentially have a significant impact on such calculations, and providing them may imply a degree of precision that would be confusing or potentially misleading.
Conference Call
REPAY will host a conference call to discuss third quarter 2024 financial results today, November 12, 2024 at 5:00 pm ET. Hosting the call will be John Morris, CEO, and Tim Murphy, CFO. The call will be webcast live from REPAY’s investor relations website at https://investors.repay.com/investor-relations. The conference call can also be accessed live over the phone by dialing (877) 407-3982, or for international callers (201) 493-6780. A replay will be available one hour after the call and can be accessed by dialing (844) 512-2921 or (412) 317-6671 for international callers; the conference ID is 13748834. The replay will be available at https://investors.repay.com/investor-relations.
Non-GAAP Financial Measures
This report includes certain non-GAAP financial measures that management uses to evaluate the Company’s operating business, measure performance, and make strategic decisions. Adjusted EBITDA is a non-GAAP financial measure that represents net income prior to interest expense, tax expense, depreciation and amortization, as adjusted to add back certain charges deemed to not be part of normal operating expenses, non-cash charges and/or non-recurring charges, such as gain on debt extinguishment, loss on business disposition, non-cash impairment loss, non-cash change in fair value of assets and liabilities, share-based compensation charges, transaction expenses, restructuring and other strategic initiative costs and other non-recurring charges. Adjusted Net Income is a non-GAAP financial measure that represents net income prior to amortization of acquisition-related intangibles, as adjusted to add back certain charges deemed to not be part of normal operating expenses, gain on debt extinguishment, loss on business disposition, non-cash impairment loss, non-cash charges and/or non-recurring charges, such as loss on business disposition, non-cash change in fair value of assets and liabilities, share-based compensation expense, transaction expenses, restructuring and other strategic initiative costs, other non-recurring charges, non-cash interest expense and net of tax effect associated with these adjustments. Adjusted Net Income is adjusted to exclude amortization of all acquisition-related intangibles as such amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions. Management believes that the adjustment of acquisition-related intangible amortization supplements GAAP financial measures because it allows for greater comparability of operating performance. Although REPAY excludes amortization from acquisition-related intangibles from its non-GAAP expenses, management believes that it is important for investors to understand that such intangibles were recorded as part of purchase accounting and contribute to revenue generation. Adjusted Net Income per share is a non-GAAP financial measure that represents Adjusted Net Income divided by the weighted average number of shares of Class A common stock outstanding (on an as-converted basis assuming conversion of the outstanding units exchangeable for shares of Class A common stock) for the three and nine months ended September 30, 2024 and 2023 (excluding shares subject to forfeiture). Organic gross profit growth is a non-GAAP financial measure that represents year-on-year gross profit growth that excludes incremental gross profit attributable to acquisitions and divestitures made in the applicable prior period or any subsequent period. Free Cash Flow is a non-GAAP financial measure that represents net cash flow provided by operating activities less total capital expenditures. Free Cash Flow Conversion represents Free Cash Flow divided by Adjusted EBITDA. REPAY believes that Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per share, organic gross profit growth, Free Cash Flow and Free Cash Flow Conversion provide useful information to investors and others in understanding and evaluating its operating results in the same manner as management. However, these non-GAAP financial measures are not financial measures calculated in accordance with GAAP and should not be considered as a substitute for net income, operating profit, net cash provided by operating activities, or any other operating performance measure calculated in accordance with GAAP. Using these non-GAAP financial measures to analyze REPAY’s business has material limitations because the calculations are based on the subjective determination of management regarding the nature and classification of events and circumstances that investors may find significant. In addition, although other companies in REPAY’s industry may report measures titled as the same or similar measures, such non-GAAP financial measures may be calculated differently from how REPAY calculates its non-GAAP financial measures, which reduces their overall usefulness as comparative measures. Because of these limitations, you should consider REPAY’s non-GAAP financial measures alongside other financial performance measures, including net income, net cash provided by operating activities and REPAY’s other financial results presented in accordance with GAAP.
Forward-Looking Statements
This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future financial and operating results, REPAY’s plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as “guidance,” “will likely result,” “are expected to,” “will continue,” “should,” “is anticipated,” “estimated,” “believe,” “intend,” “plan,” “projection,” “outlook” or words of similar meaning. These forward-looking statements include, but are not limited to, REPAY’s 2024 outlook update and other financial guidance, statements regarding REPAY’s market and growth opportunities, REPAY’s business strategy and the plans and objectives of management for future operations and the allocation of capital. Such forward-looking statements are based upon the current beliefs and expectations of REPAY’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond REPAY’s control.
In addition to factors disclosed in REPAY’s reports filed with the
Actual results, performance or achievements may differ materially, and potentially adversely, from any projections and forward-looking statements and the assumptions on which those forward-looking statements are based. There can be no assurance that the data contained herein is reflective of future performance to any degree. You are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance. All information set forth herein speaks only as of the date hereof in the case of information about REPAY or the date of such information in the case of information from persons other than REPAY, and REPAY disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication. Forecasts and estimates regarding REPAY’s industry and end markets are based on sources it believes to be reliable, however there can be no assurance these forecasts and estimates will prove accurate in whole or in part. Pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.
About REPAY
REPAY provides integrated payment processing solutions to verticals that have specific transaction processing needs. REPAY’s proprietary, integrated payment technology platform reduces the complexity of electronic payments for clients, while enhancing the overall experience for consumers and businesses.
Condensed Consolidated Statement of Operations (Unaudited) |
||||||||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months ended September 30, |
||||||||||||
(in $ thousands, except per share data) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenue |
|
$ |
79,145 |
|
|
$ |
74,320 |
|
|
$ |
234,771 |
|
|
$ |
220,640 |
|
Operating expenses |
|
|
|
|
|
|
|
|
||||||||
Costs of services (exclusive of depreciation and amortization shown separately below) |
|
|
17,584 |
|
|
|
17,637 |
|
|
|
53,080 |
|
|
|
52,442 |
|
Selling, general and administrative |
|
|
36,707 |
|
|
|
35,279 |
|
|
|
108,963 |
|
|
|
111,974 |
|
Depreciation and amortization |
|
|
25,529 |
|
|
|
26,523 |
|
|
|
79,328 |
|
|
|
79,146 |
|
Loss on business disposition |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,027 |
|
Total operating expenses |
|
|
79,820 |
|
|
|
79,439 |
|
|
|
241,371 |
|
|
|
253,589 |
|
Loss from operations |
|
|
(675 |
) |
|
|
(5,119 |
) |
|
|
(6,600 |
) |
|
|
(32,949 |
) |
Other income (expense) |
|
|
|
|
|
|
|
|
||||||||
Interest (expense) income, net |
|
|
(1,310 |
) |
|
|
(103 |
) |
|
|
(376 |
) |
|
|
(1,413 |
) |
Gain on extinguishment of debt |
|
|
13,136 |
|
|
|
— |
|
|
|
13,136 |
|
|
|
— |
|
Change in fair value of tax receivable liability |
|
|
(6,479 |
) |
|
|
(3,234 |
) |
|
|
(12,758 |
) |
|
|
(3,716 |
) |
Other income (loss), net |
|
|
67 |
|
|
|
(26 |
) |
|
|
62 |
|
|
|
(360 |
) |
Total other income (expense) |
|
|
5,414 |
|
|
|
(3,363 |
) |
|
|
64 |
|
|
|
(5,489 |
) |
Income (loss) before income tax expense |
|
|
4,739 |
|
|
|
(8,482 |
) |
|
|
(6,536 |
) |
|
|
(38,438 |
) |
Income tax benefit (expense) |
|
|
(1,524 |
) |
|
|
1,998 |
|
|
|
149 |
|
|
|
(1,308 |
) |
Net income (loss) |
|
$ |
3,215 |
|
|
$ |
(6,484 |
) |
|
$ |
(6,387 |
) |
|
$ |
(39,746 |
) |
Net loss attributable to non-controlling interest |
|
|
(28 |
) |
|
|
(316 |
) |
|
|
(347 |
) |
|
|
(2,543 |
) |
Net income (loss) attributable to the Company |
|
$ |
3,243 |
|
|
$ |
(6,168 |
) |
|
$ |
(6,040 |
) |
|
$ |
(37,203 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares of Class A common stock outstanding - basic |
|
|
88,263,285 |
|
|
|
91,160,415 |
|
|
|
90,426,364 |
|
|
|
89,658,318 |
|
Weighted-average shares of Class A common stock outstanding - diluted |
|
|
103,129,907 |
|
|
|
91,160,415 |
|
|
|
90,426,364 |
|
|
|
89,658,318 |
|
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) per Class A share - basic |
|
$ |
0.04 |
|
|
$ |
(0.07 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.41 |
) |
Income (loss) per Class A share - diluted |
|
$ |
0.03 |
|
|
$ |
(0.07 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.41 |
) |
Condensed Consolidated Balance Sheets |
||||||||
(in $ thousands) |
|
September 30, 2024 (Unaudited) |
|
December 31, 2023 |
||||
Assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
168,715 |
|
|
$ |
118,096 |
|
Accounts receivable |
|
|
41,124 |
|
|
|
36,017 |
|
Prepaid expenses and other |
|
|
14,930 |
|
|
|
15,209 |
|
Total current assets |
|
|
224,769 |
|
|
|
169,322 |
|
|
|
|
|
|
||||
Property, plant and equipment, net |
|
|
2,713 |
|
|
|
3,133 |
|
Restricted cash |
|
|
46,540 |
|
|
|
26,049 |
|
Intangible assets, net |
|
|
402,292 |
|
|
|
447,141 |
|
Goodwill |
|
|
716,793 |
|
|
|
716,793 |
|
Operating lease right-of-use assets, net |
|
|
11,564 |
|
|
|
8,023 |
|
Deferred tax assets |
|
|
157,097 |
|
|
|
146,872 |
|
Other assets |
|
|
2,500 |
|
|
|
2,500 |
|
Total noncurrent assets |
|
|
1,339,499 |
|
|
|
1,350,511 |
|
Total assets |
|
$ |
1,564,268 |
|
|
$ |
1,519,833 |
|
|
|
|
|
|
||||
Liabilities |
|
|
|
|
||||
Accounts payable |
|
$ |
28,792 |
|
|
$ |
22,030 |
|
Accrued expenses |
|
|
52,246 |
|
|
|
32,906 |
|
Current operating lease liabilities |
|
|
1,199 |
|
|
|
1,629 |
|
Current tax receivable agreement |
|
|
— |
|
|
|
580 |
|
Other current liabilities |
|
|
1,026 |
|
|
|
318 |
|
Total current liabilities |
|
|
83,263 |
|
|
|
57,463 |
|
|
|
|
|
|
||||
Long-term debt |
|
|
496,214 |
|
|
|
434,166 |
|
Noncurrent operating lease liabilities |
|
|
10,958 |
|
|
|
7,247 |
|
Tax receivable agreement, net of current portion |
|
|
201,273 |
|
|
|
188,331 |
|
Other liabilities |
|
|
2,861 |
|
|
|
1,838 |
|
Total noncurrent liabilities |
|
|
711,306 |
|
|
|
631,582 |
|
Total liabilities |
|
$ |
794,569 |
|
|
$ |
689,045 |
|
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
|
||||
|
|
|
|
|
||||
Stockholders' equity |
|
|
|
|
||||
Class A common stock, |
|
|
9 |
|
|
|
9 |
|
Class V common stock, |
|
|
— |
|
|
|
— |
|
Treasury stock, 5,492,733 and 1,416,510 shares as of September 30, 2024 and December 31, 2023, respectively |
|
|
(53,782 |
) |
|
|
(12,528 |
) |
Additional paid-in capital |
|
|
1,138,160 |
|
|
|
1,151,324 |
|
Accumulated deficit |
|
|
(329,710 |
) |
|
|
(323,670 |
) |
Total Repay stockholders' equity |
|
$ |
754,677 |
|
|
$ |
815,135 |
|
Non-controlling interests |
|
|
15,022 |
|
|
|
15,653 |
|
Total equity |
|
|
769,699 |
|
|
|
830,788 |
|
Total liabilities and equity |
|
$ |
1,564,268 |
|
|
$ |
1,519,833 |
|
Condensed Consolidated Statements of Cash Flows
|
||||||||
|
|
Nine Months Ended September 30, |
||||||
(in $ thousands) |
|
2024 |
|
2023 |
||||
Cash flows from operating activities |
|
|
|
|
||||
Net loss |
|
$ |
(6,387 |
) |
|
$ |
(39,746 |
) |
|
|
|
|
|
||||
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
79,328 |
|
|
|
79,146 |
|
Stock based compensation |
|
|
18,495 |
|
|
|
16,256 |
|
Amortization of debt issuance costs |
|
|
2,185 |
|
|
|
2,136 |
|
Loss on business disposition |
|
|
— |
|
|
|
10,027 |
|
Gain on extinguishment of debt |
|
|
(13,136 |
) |
|
|
— |
|
Other loss |
|
|
— |
|
|
|
273 |
|
Fair value change in tax receivable agreement liability |
|
|
12,758 |
|
|
|
3,716 |
|
Deferred tax expense |
|
|
(149 |
) |
|
|
1,308 |
|
Change in accounts receivable |
|
|
(5,107 |
) |
|
|
(4,857 |
) |
Change in prepaid expenses and other |
|
|
279 |
|
|
|
4,161 |
|
Change in operating lease ROU assets |
|
|
(3,541 |
) |
|
|
389 |
|
Change in accounts payable |
|
|
6,762 |
|
|
|
(1,948 |
) |
Change in accrued expenses and other |
|
|
19,339 |
|
|
|
(1,544 |
) |
Change in operating lease liabilities |
|
|
3,281 |
|
|
|
(424 |
) |
Change in other liabilities |
|
|
1,731 |
|
|
|
(142 |
) |
Net cash provided by operating activities |
|
|
115,838 |
|
|
|
68,751 |
|
|
|
|
|
|
||||
Cash flows from investing activities |
|
|
|
|
||||
Purchases of property and equipment |
|
|
(782 |
) |
|
|
(1,062 |
) |
Capitalized software development costs |
|
|
(33,278 |
) |
|
|
(36,678 |
) |
Proceeds from sale of business, net of cash retained |
|
|
— |
|
|
|
40,273 |
|
Net cash provided by (used in) investing activities |
|
|
(34,060 |
) |
|
|
2,533 |
|
|
|
|
|
|
||||
Cash flows from financing activities |
|
|
|
|
||||
Issuance of long-term debt |
|
|
287,500 |
|
|
|
— |
|
Payments on long-term debt |
|
|
(205,150 |
) |
|
|
(20,000 |
) |
Payments of debt issuance costs |
|
|
(9,350 |
) |
|
|
— |
|
Payments for tax withholding related to shares vesting under Incentive Plan |
|
|
(2,720 |
) |
|
|
(1,510 |
) |
Treasury shares repurchased |
|
|
(41,577 |
) |
|
|
— |
|
Stock options exercised |
|
|
395 |
|
|
|
— |
|
Distributions to Members |
|
|
— |
|
|
|
(947 |
) |
Purchase of capped calls related to issuance of convertible notes |
|
|
(39,186 |
) |
|
|
— |
|
Payment of Tax Receivable Agreement |
|
|
(580 |
) |
|
|
— |
|
Payment of contingent consideration liability up to acquisition-date fair value |
|
|
— |
|
|
|
(1,000 |
) |
Net cash used in financing activities |
|
|
(10,668 |
) |
|
|
(23,457 |
) |
|
|
|
|
|
||||
Increase in cash, cash equivalents and restricted cash |
|
|
71,110 |
|
|
|
47,827 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
$ |
144,145 |
|
|
$ |
93,563 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
215,255 |
|
|
$ |
141,390 |
|
|
|
|
|
|
||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |
|
|
|
|
||||
Cash paid during the year for: |
|
|
|
|
||||
Interest |
|
$ |
643 |
|
|
$ |
840 |
|
Income taxes |
|
$ |
2,045 |
|
|
$ |
1,201 |
|
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA
|
|||||||
|
Three Months ended September 30, |
||||||
(in $ thousands) |
2024 |
|
2023 |
||||
Revenue |
$ |
79,145 |
|
|
$ |
74,320 |
|
Operating expenses |
|
|
|
||||
Costs of services (exclusive of depreciation and amortization shown separately below) |
$ |
17,584 |
|
|
$ |
17,637 |
|
Selling, general and administrative |
|
36,707 |
|
|
|
35,279 |
|
Depreciation and amortization |
|
25,529 |
|
|
|
26,523 |
|
Total operating expenses |
$ |
79,820 |
|
|
$ |
79,439 |
|
Loss from operations |
$ |
(675 |
) |
|
$ |
(5,119 |
) |
Other income (expense) |
|
|
|
||||
Interest (expense) income, net |
|
(1,310 |
) |
|
|
(103 |
) |
Gain on extinguishment of debt |
|
13,136 |
|
|
|
— |
|
Change in fair value of tax receivable liability |
|
(6,479 |
) |
|
|
(3,234 |
) |
Other income (loss), net |
|
67 |
|
|
|
(26 |
) |
Total other income (expense) |
|
5,414 |
|
|
|
(3,363 |
) |
Income (loss) before income tax expense |
|
4,739 |
|
|
|
(8,482 |
) |
Income tax benefit (expense) |
|
(1,524 |
) |
|
|
1,998 |
|
Net income (loss) |
$ |
3,215 |
|
|
$ |
(6,484 |
) |
|
|
|
|
||||
Add: |
|
|
|
||||
Interest expense (income), net |
|
1,310 |
|
|
|
103 |
|
Depreciation and amortization (a) |
|
25,529 |
|
|
|
26,523 |
|
Income tax benefit |
|
1,524 |
|
|
|
(1,998 |
) |
EBITDA |
$ |
31,578 |
|
|
$ |
18,144 |
|
|
|
|
|
||||
Gain on extinguishment of debt (b) |
|
(13,136 |
) |
|
|
— |
|
Non-cash change in fair value of assets and liabilities (c) |
|
6,479 |
|
|
|
3,234 |
|
Share-based compensation expense (d) |
|
6,477 |
|
|
|
5,686 |
|
Transaction expenses (e) |
|
937 |
|
|
|
812 |
|
Restructuring and other strategic initiative costs (f) |
|
2,202 |
|
|
|
3,084 |
|
Other non-recurring charges (g) |
|
562 |
|
|
|
894 |
|
Adjusted EBITDA |
$ |
35,099 |
|
|
$ |
31,854 |
|
Quarterly Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA
|
|||||||||||
|
Three Months ended |
||||||||||
(in $ thousands) |
December 31, 2023 |
|
March 31, 2024 |
|
June 30, 2024 |
||||||
Net income (loss) |
$ |
(77,674 |
) |
|
$ |
(5,365 |
) |
|
$ |
(4,237 |
) |
|
|
|
|
|
|
||||||
Add: |
|
|
|
|
|
||||||
Interest expense (income), net |
|
(365 |
) |
|
|
(380 |
) |
|
|
(554 |
) |
Depreciation and amortization (a) |
|
24,711 |
|
|
|
27,028 |
|
|
|
26,771 |
|
Income tax (benefit) expense |
|
(3,423 |
) |
|
|
302 |
|
|
|
(1,975 |
) |
EBITDA |
$ |
(56,751 |
) |
|
$ |
21,585 |
|
|
$ |
20,005 |
|
|
|
|
|
|
|
||||||
Non-cash impairment loss (i) |
|
75,750 |
|
|
|
— |
|
|
|
— |
|
Non-cash change in fair value of assets and liabilities (c) |
|
3,778 |
|
|
|
2,913 |
|
|
|
3,366 |
|
Share-based compensation expense (d) |
|
5,899 |
|
|
|
6,923 |
|
|
|
5,874 |
|
Transaction expenses (e) |
|
921 |
|
|
|
677 |
|
|
|
414 |
|
Restructuring and other strategic initiative costs (f) |
|
3,372 |
|
|
|
2,184 |
|
|
|
2,584 |
|
Other non-recurring charges (g) |
|
520 |
|
|
|
1,231 |
|
|
|
1,485 |
|
Adjusted EBITDA |
$ |
33,489 |
|
|
$ |
35,513 |
|
|
$ |
33,728 |
|
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA
|
|||||||
|
Nine Months ended September 30, |
||||||
(in $ thousands) |
2024 |
|
2023 |
||||
Revenue |
$ |
234,771 |
|
|
$ |
220,640 |
|
Operating expenses |
|
|
|
||||
Costs of services (exclusive of depreciation and amortization shown separately below) |
$ |
53,080 |
|
|
$ |
52,442 |
|
Selling, general and administrative |
|
108,963 |
|
|
|
111,974 |
|
Depreciation and amortization |
|
79,328 |
|
|
|
79,146 |
|
Loss on business disposition |
|
— |
|
|
|
10,027 |
|
Total operating expenses |
$ |
241,371 |
|
|
$ |
253,589 |
|
Loss from operations |
$ |
(6,600 |
) |
|
$ |
(32,949 |
) |
Other income (expense) |
|
|
|
||||
Interest (expense) income, net |
|
(376 |
) |
|
|
(1,413 |
) |
Gain on extinguishment of debt |
|
13,136 |
|
|
|
— |
|
Change in fair value of tax receivable liability |
|
(12,758 |
) |
|
|
(3,716 |
) |
Other income (loss), net |
|
62 |
|
|
|
(360 |
) |
Total other income (expense) |
|
64 |
|
|
|
(5,489 |
) |
Income (loss) before income tax expense |
|
(6,536 |
) |
|
|
(38,438 |
) |
Income tax benefit (expense) |
|
149 |
|
|
|
(1,308 |
) |
Net income (loss) |
$ |
(6,387 |
) |
|
$ |
(39,746 |
) |
|
|
|
|
||||
Add: |
|
|
|
||||
Interest expense (income), net |
|
376 |
|
|
|
1,413 |
|
Depreciation and amortization (a) |
|
79,328 |
|
|
|
79,146 |
|
Income tax (benefit) expense |
|
(149 |
) |
|
|
1,308 |
|
EBITDA |
$ |
73,168 |
|
|
$ |
42,121 |
|
|
|
|
|
||||
|
|
|
|
||||
Loss on business disposition (h) |
|
— |
|
|
|
10,027 |
|
Non-cash impairment loss (i) |
|
— |
|
|
|
50 |
|
Gain on extinguishment of debt (b) |
|
(13,136 |
) |
|
|
— |
|
Non-cash change in fair value of assets and liabilities (c) |
|
12,758 |
|
|
|
3,716 |
|
Share-based compensation expense (d) |
|
19,274 |
|
|
|
16,257 |
|
Transaction expenses (e) |
|
2,028 |
|
|
|
7,602 |
|
Restructuring and other strategic initiative costs (f) |
|
6,970 |
|
|
|
8,536 |
|
Other non-recurring charges (g) |
|
3,278 |
|
|
|
5,008 |
|
Adjusted EBITDA |
$ |
104,340 |
|
|
$ |
93,317 |
|
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted Net Income
|
|||||||
|
Three Months ended September 30, |
||||||
(in $ thousands) |
2024 |
|
2023 |
||||
Revenue |
$ |
79,145 |
|
|
$ |
74,320 |
|
Operating expenses |
|
|
|
||||
Costs of services (exclusive of depreciation and amortization shown separately below) |
$ |
17,584 |
|
|
$ |
17,637 |
|
Selling, general and administrative |
|
36,707 |
|
|
|
35,279 |
|
Depreciation and amortization |
|
25,529 |
|
|
|
26,523 |
|
Total operating expenses |
$ |
79,820 |
|
|
$ |
79,439 |
|
Loss from operations |
$ |
(675 |
) |
|
$ |
(5,119 |
) |
Interest (expense) income, net |
|
(1,310 |
) |
|
|
(103 |
) |
Gain on extinguishment of debt |
|
13,136 |
|
|
|
— |
|
Change in fair value of tax receivable liability |
|
(6,479 |
) |
|
|
(3,234 |
) |
Other income (loss), net |
|
67 |
|
|
|
(26 |
) |
Total other income (expense) |
|
5,414 |
|
|
|
(3,363 |
) |
Income (loss) before income tax expense |
|
4,739 |
|
|
|
(8,482 |
) |
Income tax benefit (expense) |
|
(1,524 |
) |
|
|
1,998 |
|
Net income (loss) |
$ |
3,215 |
|
|
$ |
(6,484 |
) |
|
|
|
|
||||
Add: |
|
|
|
||||
Amortization of acquisition-related intangibles (j) |
|
19,111 |
|
|
|
19,786 |
|
Gain on extinguishment of debt (b) |
|
(13,136 |
) |
|
|
— |
|
Non-cash change in fair value of assets and liabilities (c) |
|
6,479 |
|
|
|
3,234 |
|
Share-based compensation expense (d) |
|
6,477 |
|
|
|
5,686 |
|
Transaction expenses (e) |
|
937 |
|
|
|
812 |
|
Restructuring and other strategic initiative costs (f) |
|
2,202 |
|
|
|
3,084 |
|
Other non-recurring charges (g) |
|
562 |
|
|
|
894 |
|
Non-cash interest expense (k) |
|
762 |
|
|
|
712 |
|
Pro forma taxes at effective rate (l) |
|
(5,364 |
) |
|
|
(7,828 |
) |
Adjusted Net Income |
$ |
21,245 |
|
|
$ |
19,896 |
|
|
|
|
|
||||
Shares of Class A common stock outstanding (on an as-converted basis) (m) |
|
94,074,811 |
|
|
|
97,052,574 |
|
Adjusted Net Income per share |
$ |
0.23 |
|
|
$ |
0.21 |
|
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted Net Income
|
|||||||
|
Nine Months ended September 30, |
||||||
(in $ thousands) |
2024 |
|
2023 |
||||
Revenue |
$ |
234,771 |
|
|
$ |
220,640 |
|
Operating expenses |
|
|
|
||||
Costs of services (exclusive of depreciation and amortization shown separately below) |
$ |
53,080 |
|
|
$ |
52,442 |
|
Selling, general and administrative |
|
108,963 |
|
|
|
111,974 |
|
Depreciation and amortization |
|
79,328 |
|
|
|
79,146 |
|
Loss on business disposition |
|
— |
|
|
|
10,027 |
|
Total operating expenses |
$ |
241,371 |
|
|
$ |
253,589 |
|
Loss from operations |
$ |
(6,600 |
) |
|
$ |
(32,949 |
) |
Other expenses |
|
|
|
||||
Interest (expense) income, net |
|
(376 |
) |
|
|
(1,413 |
) |
Gain on extinguishment of debt |
|
13,136 |
|
|
|
— |
|
Change in fair value of tax receivable liability |
|
(12,758 |
) |
|
|
(3,716 |
) |
Other income (loss), net |
|
62 |
|
|
|
(360 |
) |
Total other income (expense) |
|
64 |
|
|
|
(5,489 |
) |
Income (loss) before income tax expense |
|
(6,536 |
) |
|
|
(38,438 |
) |
Income tax benefit (expense) |
|
149 |
|
|
|
(1,308 |
) |
Net income (loss) |
$ |
(6,387 |
) |
|
$ |
(39,746 |
) |
|
|
|
|
||||
Add: |
|
|
|
||||
Amortization of acquisition-related intangibles (j) |
|
58,549 |
|
|
|
60,673 |
|
Loss on business disposition (h) |
|
— |
|
|
|
10,027 |
|
Non-cash impairment loss (i) |
|
— |
|
|
|
50 |
|
Gain on extinguishment of debt (b) |
|
(13,136 |
) |
|
|
— |
|
Non-cash change in fair value of assets and liabilities (c) |
|
12,758 |
|
|
|
3,716 |
|
Share-based compensation expense (d) |
|
19,274 |
|
|
|
16,257 |
|
Transaction expenses (e) |
|
2,028 |
|
|
|
7,602 |
|
Restructuring and other strategic initiative costs (f) |
|
6,970 |
|
|
|
8,536 |
|
Other non-recurring charges (g) |
|
3,278 |
|
|
|
5,008 |
|
Non-cash interest expense (k) |
|
2,186 |
|
|
|
2,136 |
|
Pro forma taxes at effective rate (l) |
|
(20,135 |
) |
|
|
(15,658 |
) |
Adjusted Net Income |
$ |
65,385 |
|
|
$ |
58,601 |
|
|
|
|
|
||||
Shares of Class A common stock outstanding (on an as-converted basis) (m) |
|
96,259,523 |
|
|
|
96,778,735 |
|
Adjusted Net Income per share |
$ |
0.68 |
|
|
$ |
0.61 |
|
Reconciliation of Operating Cash Flow to Free Cash Flow
|
||||||||||||||||
|
|
Three Months ended September 30, |
|
Nine Months ended September 30, |
||||||||||||
(in $ thousands) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net cash provided by operating activities |
|
$ |
60,058 |
|
|
$ |
27,967 |
|
|
$ |
115,838 |
|
|
$ |
68,751 |
|
Capital expenditures |
|
|
|
|
|
|
|
|
||||||||
Cash paid for property and equipment |
|
|
(211 |
) |
|
|
(948 |
) |
|
|
(782 |
) |
|
|
(1,062 |
) |
Capitalized software development costs |
|
|
(11,029 |
) |
|
|
(13,078 |
) |
|
|
(33,278 |
) |
|
|
(36,678 |
) |
Total capital expenditures |
|
|
(11,240 |
) |
|
|
(14,026 |
) |
|
|
(34,060 |
) |
|
|
(37,740 |
) |
Free cash flow |
|
$ |
48,818 |
|
|
$ |
13,941 |
|
|
$ |
81,778 |
|
|
$ |
31,011 |
|
|
|
|
|
|
|
|
|
|
||||||||
Free cash flow conversion |
|
|
139 |
% |
|
|
44 |
% |
|
|
78 |
% |
|
|
33 |
% |
Quarterly Reconciliation of Operating Cash Flow to Free Cash Flow
|
|||||||||||
|
Three Months ended |
||||||||||
(in $ thousands) |
December 31, 2023 |
|
March 31, 2024 |
|
June 30, 2024 |
||||||
Net cash provided by operating activities |
$ |
34,863 |
|
|
$ |
24,801 |
|
|
$ |
30,979 |
|
Capital expenditures |
|
|
|
|
|
||||||
Cash paid for property and equipment |
|
(183 |
) |
|
|
(87 |
) |
|
|
(484 |
) |
Capitalized software development costs |
|
(12,893 |
) |
|
|
(11,042 |
) |
|
|
(11,207 |
) |
Total capital expenditures |
|
(13,076 |
) |
|
|
(11,129 |
) |
|
|
(11,691 |
) |
Free cash flow |
$ |
21,787 |
|
|
$ |
13,672 |
|
|
$ |
19,288 |
|
|
|
|
|
|
|
||||||
Free cash flow conversion |
|
65 |
% |
|
|
38 |
% |
|
|
57 |
% |
Reconciliation of Gross Profit Growth to Organic Gross Profit Growth
|
||||
|
|
Q3 Year-to-Date YoY Change |
||
Gross profit growth |
|
|
8 |
% |
Less: Growth from acquisitions and dispositions |
|
|
(1 |
%) |
Organic gross profit growth (n) |
|
|
9 |
% |
(a) |
See footnote (j) for details on amortization and depreciation expenses. |
(b) |
Reflects a gain on the repurchase of 2026 Notes principal, net of a write-off of debt issuance costs relating to the repurchased principal. |
(c) |
Reflects the changes in management’s estimates of the fair value of the liability relating to the Tax Receivable Agreement. |
(d) |
Represents compensation expense associated with equity compensation plans. |
(e) |
Primarily consists of (i) during the three and nine months ended September 30, 2024, the three months ended June 30, 2024 and the three months ended March 31, 2024, professional service fees incurred in connection with prior transactions, and (ii) during the three and nine months ended September 30, 2023 and the three months ended December 31, 2023, professional service fees and other costs incurred in connection with the disposition of Blue Cow Software. |
(f) |
Reflects costs associated with reorganization of operations, consulting fees related to processing services and other operational improvements, including restructuring and integration activities related to acquired businesses, that were not in the ordinary course. |
(g) |
For the three and nine months ended September 30, 2024, the three months ended June 30, 2024 and the three months ended March 31, 2024, reflects franchise taxes and other non-income based taxes, non-recurring legal and other litigation expenses and payments made to third-parties in connection with our IT security and personnel. For the three and nine months ended September 30, 2023 and the three months ended December 31, 2023, reflects non-recurring payments made to third-parties in connection with an expansion of our personnel, one-time payments to certain partners and franchise taxes and other non-income based taxes. |
(h) |
Reflects the loss recognized related to the disposition of Blue Cow. |
(i) |
For the nine months ended September 30, 2023, reflects impairment loss related to a trade name write-off of Media Payments. For the three months ended December 31, 2023, reflects non-cash goodwill impairment loss related to the Business Payments segment. |
(j) |
Reflects amortization of client relationships, non-compete agreement, software, and channel relationship intangibles acquired through the business combination with Thunder Bridge, and client relationships, non-compete agreement, and software intangibles acquired through REPAY's acquisitions of TriSource Solutions, APS Payments, Ventanex, cPayPlus, CPS Payments, BillingTree, Kontrol Payables and Payix. This adjustment excludes the amortization of other intangible assets which were acquired in the regular course of business, such as capitalized internally developed software and purchased software. See additional information below for an analysis of amortization expenses: |
|
|
Three Months ended September 30, |
|
Nine Months ended September 30, |
||||||||||||
(in $ thousands) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Acquisition-related intangibles |
|
$ |
19,111 |
|
|
$ |
19,786 |
|
|
$ |
58,549 |
|
|
$ |
60,673 |
|
Software |
|
|
6,008 |
|
|
|
6,391 |
|
|
|
19,577 |
|
|
|
16,639 |
|
Amortization |
|
$ |
25,119 |
|
|
$ |
26,177 |
|
|
$ |
78,126 |
|
|
$ |
77,312 |
|
Depreciation |
|
|
410 |
|
|
|
346 |
|
|
|
1,202 |
|
|
|
1,834 |
|
Total Depreciation and amortization (1) |
|
$ |
25,529 |
|
|
$ |
26,523 |
|
|
$ |
79,328 |
|
|
$ |
79,146 |
|
|
|
Three Months ended |
||||||||||
(in $ thousands) |
|
December 31, 2023 |
|
March 31, 2024 |
|
June 30, 2024 |
||||||
Acquisition-related intangibles |
|
$ |
20,969 |
|
|
$ |
19,736 |
|
|
$ |
19,702 |
|
Software |
|
|
3,150 |
|
|
|
6,713 |
|
|
|
6,856 |
|
Amortization |
|
$ |
24,119 |
|
|
$ |
26,449 |
|
|
$ |
26,558 |
|
Depreciation |
|
|
592 |
|
|
|
579 |
|
|
|
213 |
|
Total Depreciation and amortization (1) |
|
$ |
24,711 |
|
|
$ |
27,028 |
|
|
$ |
26,771 |
|
(1) |
Adjusted Net Income is adjusted to exclude amortization of all acquisition-related intangibles as such amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions (see corresponding adjustments in the reconciliation of net income to Adjusted Net Income presented above). Management believes that the adjustment of acquisition-related intangible amortization supplements GAAP financial measures because it allows for greater comparability of operating performance. Although REPAY excludes amortization from acquisition-related intangibles from its non-GAAP expenses, management believes that it is important for investors to understand that such intangibles were recorded as part of purchase accounting and contribute to revenue generation. Amortization of intangibles that relate to past acquisitions will recur in future periods until such intangibles have been fully amortized. Any future acquisitions may result in the amortization of additional intangibles. |
|
|
(k) |
Represents amortization of non-cash deferred debt issuance costs. |
(l) |
Represents pro forma income tax adjustment effect associated with items adjusted above. |
(m) |
Represents the weighted average number of shares of Class A common stock outstanding (on an as-converted basis assuming conversion of outstanding Post-Merger Repay Units) for the three and nine months ended September 30, 2024 and 2023. These numbers do not include any shares issuable upon conversion of the Company’s convertible senior notes. See the reconciliation of basic weighted average shares outstanding to the non-GAAP Class A common stock outstanding on an as-converted basis for each respective period below: |
|
|
Three Months ended September 30, |
|
Nine Months ended September 30, |
||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Weighted average shares of Class A common stock outstanding - basic |
|
88,263,285 |
|
91,160,415 |
|
90,426,364 |
|
89,658,318 |
||||
Add: Non-controlling interests |
|
|
|
|
|
|
|
|
||||
Weighted average Post-Merger Repay Units exchangeable for Class A common stock |
|
5,811,526 |
|
5,892,159 |
|
5,833,159 |
|
7,120,417 |
||||
Shares of Class A common stock outstanding (on an as-converted basis) |
|
94,074,811 |
|
97,052,574 |
|
96,259,523 |
|
96,778,735 |
||||
(n) |
Represents year-on-year gross profit growth that excludes incremental gross profit attributable to acquisitions and dispositions made in the applicable prior period or any subsequent period. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241112724651/en/
Investor Relations Contact for REPAY:
ir@repay.com
Media Relations Contact for REPAY:
Kristen Hoyman
(404) 637-1665
khoyman@repay.com
Source: Repay Holdings Corporation
FAQ
What were REPAY's Q3 2024 financial highlights?
What is REPAY's updated 2024 financial outlook?
How did REPAY's Business Payments segment perform in Q3 2024?
What was REPAY's net income for Q3 2024?
How much did REPAY's free cash flow increase in Q3 2024?
