Slide 1: Verra Mobility Q4 2023 Earnings Presentation
Earnings Overview Verra Mobility Q4 2023 Earnings Presentation For the Quarter Ended December 31, 2023
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “forecast,” “intend,”
Slide 3: Q4 2023 Financial Highlights Executive Summary
Q4 2023 Financial Highlights Executive Summary Total Revenue • Strong fourth quarter top-line performance across all business segments $211 million; 13% YoY growth - Commercial Services: 16% Y-o-Y growth driven by strong travel demand (TSA at ~103% of 2019 level) - Government Solutions: 10% Y-o-Y se
Slide 4: Inaugural Corporate Responsibility Report
Inaugural Corporate Responsibility Report Published in January 2024, report outlines company’s environmental, social and governance strategies and initiatives Focused on three core responsibility areas: I. Planet – creating a positive impact by developing technology solutions to help improve road sa
Slide 5: Strategic Priorities Focused on LT Value Creation
Strategic Priorities Focused on LT Value Creation Key Objectives • Meet or exceed 2024 financial guidance and long-term estimates Drive Core Business Outcomes • Further enhance Verra Mobility Operating System to drive business execution and strategy deployment • Leverage recent platform and product
Slide 6: Commercial Services: Strategic Priorities
Commercial Services: Strategic Priorities 1 Execute the core business while investing in growth 2 Segment Expansion: capitalize on small and medium sized fleet opportunity in FMC business; European growth enabled by enforcement, tolling expansion and violations 3 Capitalize on next generation Connec
Slide 7: Government Solutions: Strategic Priorities
Government Solutions: Strategic Priorities 1 Win our share of new contract awards in FL, CO, WA, CA, Canada and New Zealand 2 Position GS to win NYC renewal; awaiting RFP issuance 3 Leverage 23’ and 24’ investments in software platform to enhance strategic advantages Strong core business positioned
Slide 8: T2 Systems: Strategic Priorities
T2 Systems: Strategic Priorities 1 Continued focus on growing high margin core permits and enforcement business 2 Successful launch of new products to drive transactional revenue growth in 2024 and beyond 3 Implementation of new software releases to further enhance our strategic positioning Strong c
Slide 9: Strong top-line growth driven by travel & speed enforcement trends
Strong top-line growth driven by travel & speed enforcement trends Consolidated – Q4 Results Total Revenue ($M) Adjusted EBITDA ($M) 1 ARR Product Total $211 $186 +13% $9 $7 Total Service $202 $84 +9% $91 $179 +13% Q4 2022 Q4 2023 Q4 2022 Q4 2023 Adjusted EPS 2 Free Cash Flow ($M) $57 $0.25 -4% $0.2
Slide 10: Core Businesses Drive Strong Growth and Free Cash Flow Conversion
Core Businesses Drive Strong Growth and Free Cash Flow Conversion Total Revenue Breakdown ($M) Adjusted EBITDA & Margins ($M) Service Product Total Revenue CAGR 16% Adj EBITDA 45% Service Revenue CAGR 17% $817 CAGR 11% 46% $742 $34 $46 49% $551 $449 54% $58 $372 $394 $339 $32 $57 $784 46% $695 $271
Slide 11: Robust travel demand driving strong performance
Robust travel demand driving strong performance Commercial Services – Q4 Results Total Revenue & YoY Growth Adjusted EBITDA & YoY Growth $62 $95 +27% +16% $49 $82 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 – Key Highlights • Fourth quarter Revenue up 16% over Q4 2022 due to strength in RAC tolling and Fleet
Slide 12: Revenue fueled by transition to ARR model
Revenue fueled by transition to ARR model Government Services – Q4 Results Total Revenue & YoY Growth Adjusted EBITDA & YoY Growth ARR Product Revenue Total Rev $94 $85 +11% $3 $2 Srvc Rev Total Adj. +10% $91 $31 $82 EBITDA -22% $24 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 – Key Highlights • Service Reven
Slide 13: Revenue driven by acceleration of SaaS and Services
Revenue driven by acceleration of SaaS and Services T2 Systems – Q4 Results Total Revenue & YoY Growth Adjusted EBITDA & YoY Growth SaaS & Service Revenue Product Revenue Total Rev $23 $20 13% $6 $5 $5 Srvc Rev $4 +28% $15 $17 +10% Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 – Key Highlights • SaaS & Service
Slide 14: Strong, Flexible Balance Sheet + Robust Cash Flow
2 0 2 1 I N V E S T O R D A Y – © B U I L D E R14S F I R S T S O U R C E Strong, Flexible Balance Sheet + Robust Cash Flow Capital Summary & Financial Highlights ($M) Net Leverage Improvement ($M) $1,131 $1,107 December 31, 2023 $949 $942 $918 Cash & Cash Equivalents $136 3.3x 3.2x 2.7x 2.6x 2.5x De
Slide 15: 2024 Financial Outlook delivers strong revenue growth, margin expansion and FCF conversion
2024 Financial Outlook delivers strong revenue growth, margin expansion and FCF conversion 2024 Guidance In millions, except per share data & net leverage Commentary Total Revenue growth of 6% to 8% CS … HSD growth CS driven by strong travel demand 1 Total Revenue $865 - $880 GS … MSD growth plus in
Slide 16: Additional 2024 Guidance Assumptions
Additional 2024 Guidance Assumptions 2024 fully diluted share count of approximately 168 million shares (weighted average for the year) Effective tax rate of 30% to 32% including State taxes; approximately $55 million in 2024 total cash taxes 2024 depreciation and amortization expected to be approxi
Slide 17: Appendix
Appendix 17
Slide 18: Verra Mobility Quarterly Results
Verra Mobility Quarterly Results 2021 - 2023 Unaudited ($ in millions) Full Year 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Full Year 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Full Year 2023 Service revenue $492.8 $161.1 $174.5 $180.6 $179.0 $695.2 $184.7 $196.0 $201.0 $201.8 $783.6 Product sales 57.7 9.3 13.0
Slide 19: Verra Mobility Quarterly Results: Segment Results of Operations
Verra Mobility Quarterly Results Segment Results of Operations Commercial Services Unaudited ($ in millions) Full Year Full Year Full Year Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2021 2022 2023 Total Revenue Commercial Services $260.9 $73.5 $84.9 $86.1 $81.6 $326.0 $85.6 $94.
Slide 20: Verra Mobility Adj. Net Income and Adj. Diluted EPS Reconciliations
Verra Mobility Adj. Net Income and Adj. Diluted EPS Reconciliations (in $MM, except per share data) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Net Income $ 28.2 $4.6 $19.1 $30.3 3.0 Amortization of intangibles 25.1 22.0 20.0 18.9 16.7 Transaction and other related expenses (0.1) 0.3 0.1 0.2 0.1 Transfo
Slide 21: Thank You
Thank You http://ir.verramobility.com/