Repay Holdings Corporation · NASDAQ:RPAY
Repay — Q4 2019 Earnings Presentation
21 slides from Repay's earnings presentation, Mar 16, 2020
Slide 1: REPAY Q4'19 / FY19 Earnings Supplement
REPAY Q419/ FY19 Earnings Supplement March 2020 HIGHLY CONFIDENTIAL – DO NOT DISTRIBUTE Exhibit 99.2
Slide 2: Forward-Looking Statements
On July 11, 2019 (the “Closing Date”), Thunder Bridge Acquisition Ltd. (“Thunder Bridge”) and Hawk Parent Holdings LLC (“Hawk Parent”) completed their previously announced business combination under which Thunder Bridge acquired Hawk Parent, upon which Thunder Bridge changed its name to Repay Holdin
Slide 3: Section 1: Financial Update
Section 1: Financial Update RE a
Slide 4: Financial Highlights
Financial Highlights Q4 2019 FY 2019 Gross Profit(2) $24.3MM (+ 67%) $78.7MM (+43%) Total Revenue(1) $49.3MM (+45%) $165.8MM (+28%) Card Payment Volume $3.4Bn (+72%) $10.7Bn (+44%) Adj. EBITDA $14.7MM (+ 52%) $48.4MM (+32%) (Represents Y-o-Y Growth) Excludes impact from adoption of ASC 606 for compa
Slide 5: Financial Update – Q4 2019
Financial Update – Q4 2019 ($MM) Gross Profit (1) Adjusted EBITDA Card Payment Volume 68% 71% % Margin (2) 45% 43% % Margin (2) Gross Profit is defined as Total Revenue less Interchange and Network Fees and Other Cost of Services; all items unadjusted for the impact of the adoption of ASC 606 As a %
Slide 6: Financial Update – FY 2019
Financial Update – FY 2019 ($MM) Gross Profit (1) Adjusted EBITDA Card Payment Volume 67% 73% % Margin (2) 45% 45% % Margin (2) 44% 43% 32% Gross Profit is defined as Total Revenue less Interchange and Network Fees and Other Cost of Services; all items unadjusted for the impact of the adoption of AS
Slide 7: ASC Impact
ASC 606 Impact Adoption of ASC 606 resulted in a decrease to revenue and cost of sales, but no impact to gross profit(1); this adoption does result in an increase to gross profit margins(2) Gross Profit under ASC 605 is defined as Total Revenue less Interchange and Network Fees and Other Cost of Ser
Slide 8: Section 2: Strategy & Outlook
Section 2: Strategy & Outlook
Slide 9: Executing on Growth Plan
Executing on Growth Plan INCREASED SOFTWARE PARTNER RELATIONSHIPS, ENDING 2019 WITH 70 ADDING NEW CUSTOMERS VIA DIRECT SALESFORCE ACROSS ALL VERTICALS CONTINUE TO ADDRESS LARGE, UNDERSERVED LOAN REPAYMENT VERTICALS, SPECIFICALLY AUTO, AND INCREASE DEBIT PENETRATION WITH EXISTING CUSTOMERS EXPANDED T
Slide 10: Multiple Levers to Continue to Drive Growth
Multiple Levers to Continue to Drive Growth Repay’s Leading Platform & Attractive Market Opportunity Position It To Build On Its Record Of Robust Growth & Profitability Expand Usage and Increase Adoption Acquire New Merchants in Existing Verticals Operational Efficiencies Future Market Expansion Opp
Slide 11: FY 2020 Outlook
FY 2020 Outlook Note: Revenue information for the full year 2020 outlook is presented in accordance with Accounting Standards Codification (“ASC”) 606. In addition, REPAY does not provide quantitative reconciliation of forward-looking, non-GAAP financial measures such as forecasted 2020 Adjusted EBI
Slide 12: FY 2020 Gross Profit Outlook Bridge
FY 2020 Gross Profit Outlook Bridge Includes full year contributions for TriSource and APS, and ~10.5 months for Ventanex post-acquisition in early February 2020 $118MM represents midpoint of FY 2020 gross profit guidance REPAY’s 2020 Gross Profit Outlook Represents ~50% Total Growth & ~20% Organic
Slide 13: Section 3: Appendix
Section 3: Appendix Rae
Slide 14: Q4 2019 Financial Update
Q4 2019 Financial Update Gross Profit is defined as Total Revenue less Interchange and Network Fees and Other Cost of Services; all items unadjusted for the impact of the adoption of ASC 606 See “Adjusted EBITDA Reconciliation” on slide 17 for reconciliation of Adjusted EBITDA to its most comparable
Slide 15: FY 2019 Financial Update
FY 2019 Financial Update Gross Profit is defined as Total Revenue less Interchange and Network Fees and Other Cost of Services; all items unadjusted for the impact of the adoption of ASC 606 See “Adjusted EBITDA Reconciliation” on slide 17 for reconciliation of Adjusted EBITDA to its most comparable
Slide 16: Income Statement – Historical
Income Statement – Historical Gross Profit is defined as Total Revenue less Interchange and Network Fees and Other Cost of Services; all items unadjusted for the impact of the adoption of ASC 606 See “Adjusted EBITDA Reconciliation” on slide 17 for reconciliation of Adjusted EBITDA to its most compa
Slide 17: Adjusted EBITDA Reconciliation – Historical
Adjusted EBITDA Reconciliation – Historical Adjusted EBITDA Reconciliation Prior to the Business Combination REPAY was not a taxable entity so there are no taxes to add back in calculating EBITDA for these periods. Reflects write-offs of debt issuance costs relating to REPAY’s term loans and prepaym
Slide 18: Adjusted Net Income Reconciliation – Historical
Adjusted Net Income Reconciliation – Historical Reflects amortization of intangibles acquired as part of (1) the 2016 recapitalization transaction by Corsair Capital, which occurred during the year ended December 31, 2016, and (2) the acquisitions of Paymaxx Pro, LLC and PaidSuite, LLC during the ye
Slide 19: Depreciation and Amortization Detail – Historical
Depreciation and Amortization Detail – Historical Note: Adjusted Net Income excludes 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
Slide 20: Share Count
Share Count Shares refer to Class A common stock on an as-converted basis; current as of March 1, 2020 This presentation is not a complete summary of all relevant terms and conditions related to the shares or the warrants, including with respect to the issuance of earn-outs, vesting, or other key te
Slide 21: Realtime Electronic Payments
Realtime Electronic Payments