Repay Holdings Corporation · NASDAQ:RPAY
Repay — Investor Presentation (March 2023)
32 slides from Repay's investor presentation, Mar 1, 2023
Slide 1: March 2023 Investor Presentation
March 2023 Investor Presentation Exhibit 99.3
Slide 2: Disclaimer
Disclaimer 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 (the “Business Combination”) under which Thunder Bridge acquired Hawk Parent, upon which Thunder
Slide 3: Agenda
Agenda Introduction to REPAY REPAY Investment Highlights REPAY Financial Overview 1 2 3 2
Slide 4: Introduction to REPAY
Bye leet Introduction to REPAY
Slide 5: REPAY's proprietary, integrated payment technology platform reduces the complexity of electronic payments
REPAY’s proprietary, integrated payment technology platform reduces the complexity of electronic payments for clients, while enhancing the overall experience for consumers and businesses REPAY provides integrated payment processing solutions to verticals that have specific transaction processing nee
Slide 6: Your Industry. Our Expertise.
AUTO FINANCE PERSONAL FINANCE AR AUTOMATION CREDIT UNIONS HEALTHCARE MORTGAGE ARM AP AUTOMATION Your Industry. Our Expertise. CONSUMER PAYMENTS BUSINESS PAYMENTS
Slide 7: Who We Are
Who We Are A leading, highly-integrated omnichannel payment technology platform modernizing Consumer and Business Payments CAGR is from 2020A–2022A As of 12/31/2022 Cash Flow Conversion calculated as 2022A Adjusted Free Cash Flow / 2022A Adjusted EBITDA. These are non-GAAP measures. See slide 1 for
Slide 8: Driving Shareholder Value
LONG-TERM GROWTH ORGANIC GROWTH M&A CATALYSTS Deepen presence in existing verticals (e.g. Automotive, B2B, Credit Unions, Revenue Cycle Management, Healthcare) Expand into new verticals/geographies Transformational acquisitions extending broader solution suite Driving Shareholder Value 1) Third-part
Slide 9: Our Strong Execution and Momentum
Our Strong Execution and Momentum TOTAL ADDRESSABLE MARKET ~$535Bn ~$5.2Tn(3) # OF ISV INTEGRATIONS 53 240 CLIENT COUNT ~4,000 ~23,000 Delivering Superior Results (FY 2022) Fourth Quarter 2022(2) July 2019(1) CARD PAYMENT VOLUME GROSS PROFIT ADJ. EBITDA +25% +31% +34% As of 7/11/2019 (the closing da
Slide 10: REPAY Investment Highlights
2 REPAY Investment Highlights
Slide 11: Business Strengths and Strategies
1 Business Strengths and Strategies A leading, omnichannel payment technology provider Fast growing and underpenetrated market opportunity Vertically integrated payment technology platform driving frictionless payments experience Experienced board with deep payments expertise Multiple avenues for lo
Slide 12: We are Capitalizing on Large, Underserved Market Opportunities
1 We are Capitalizing on Large, Underserved Market Opportunities REPAY’s existing verticals represent ~$5.2Tn(1) of projected annual total payment volume END MARKET OPPORTUNITIES Healthcare $185Bn $70Bn $420Bn $500Bn $70Bn $600Bn $1.2Tn $2.2Tn Credit Unions ARM Mortgage Personal Loans Auto Loans AR
Slide 13: Key end markets have been underserved by payment technology and service providers
1 Key end markets have been underserved by payment technology and service providers Credit cards are not permitted in loan repayment which has resulted in overall low card penetration CLIENTS SERVING REPAY’S MARKETS ARE FACING INCREASING DEMAND FROM CUSTOMERS They want electronic and omnichannel pay
Slide 14: Card and Debit Payments Underpenetrated in Our Verticals
Card and Debit Payments Underpenetrated in Our Verticals The Nilson Report. Represents debit and credit as a percentage of all U.S. consumer payment systems, including various forms of paper, card, and electronic payment methods Third-party research and management estimates Across REPAY’s Verticals(
Slide 15: REPAY Has Built a Leading Next-Gen Software Platform
REPAY Has Built a Leading Next-Gen Software Platform Proprietary, integrated payment technology platform reduces complexity for a unified commerce experience Pay Anywhere, Any Way, Any Time Businesses and Consumers Clients 2
Slide 16: Value Proposition to REPAY's Clients
REPAY Has Built a Leading Next-Gen Software Platform Value Proposition to REPAY’s Clients Accelerated payment cycle (ability to lend more / faster) through card processing Faster access to funds to help businesses with working capital 24 / 7 payment acceptance through “always open” omnichannel offer
Slide 17: Value Proposition to REPAY's Clients' End Customers
REPAY Has Built a Leading Next-Gen Software Platform Value Proposition to REPAY’s Clients’ End Customers Self-service capabilities through ability to pay anywhere, any way and any time, 24 / 7 Option to make real-time payments through use of card transactions Immediate feedback that payment has been
Slide 18: Consumer Payments Offering Omnichannel Capabilities across Modalities
Consumer Payments Offering Omnichannel Capabilities across Modalities 2 Consumer Payments’ clients look to partner with innovative vendors that can provide evolving payment functionality and acceptance solutions Credit and Debit Card Processing ACH Processing Instant Funding eCash New & Emerging Pay
Slide 19: One-stop-shop B2B payments solutions provider
One-stop-shop B2B payments solutions provider REPRESENTATIVE BUSINESS PAYMENTS CLIENTS Automated Reporting and Reconciliation Multiple Payment Options Including Virtual Card and Cross Border Vendor Management Customer Rebates Deep ERP Integrations Multiple Payment Methods Tracking and Reconciliation
Slide 20: Key Software Integrations Accelerate Distribution
Key Software Integrations Accelerate Distribution REPAY leverages a vertically tiered sales strategy supplemented by software integrations to drive new client acquisitions Tier 3 (Direct Sales) $5MM+ Monthly Volume Tier 2 (Direct Sales) $1MM – $5MM Monthly Volume Tier 1 (Call Center) <$1MM Monthly V
Slide 21: Attractive and Diverse Client Base Across Key Verticals
Attractive and Diverse Client Base Across Key Verticals REPAY’s platform provides significant value to >23,000 clients (1) offering solutions across a variety of industry verticals Healthcare Other ARM B2B Loan Repayment ~20% of card payment volume(2) 4 Management estimate as of 12/31/2022 As of 12/
Slide 22: Demonstrated Ability to Acquire and Successfully Integrate Businesses
Demonstrated Ability to Acquire and Successfully Integrate Businesses Represents a significant opportunity to enhance organic growth in existing verticals and accelerate entry into new markets and services Extend Solution Set via New Capabilities New Vertical Expansion Deepen Presence in Existing Ve
Slide 23: Multiple Levers to Continue to Drive Growth
Majority of growth within Consumer Payments is derived from further penetration of existing client base. Majority of growth within Business Payments is derived from acquiring new clients. Multiple Levers to Continue to Drive Growth EXPAND USAGE AND INCREASE ADOPTION (1) ACQUIRE NEW CLIENTS IN EXISTI
Slide 24: Experienced Board with Deep Payments Expertise
Richard Thornburgh Senior Advisor, Corsair Bob Hartheimer Senior Advisor, Klaros Group Experienced Board with Deep Payments Expertise John Morris CEO & Co-Founder Shaler Alias President & Co-Founder William Jacobs Former Board Member, Global Payments Board Member, Green Dot Former SVP, Mastercard Pe
Slide 25: REPAY Financial Overview
Tle ei REPAY Financial Overview
Slide 26: Financial Highlights
Financial Highlights Low volume attrition and low risk portfolio Differentiated technology platform & ecosystem Deeply integrated with customer base Recurring transaction / volume-based revenue 2022 ANNUAL CARD PAYMENT VOLUME $25.6B SOFTWARE INTEGRATIONS(1) 240 CASH FLOW CONVERSION(2) 61% HISTORICAL
Slide 27: Significant Volume and Revenue Growth
Total Card Payment Volume ($Bn) Revenue ($MM) Significant Volume and Revenue Growth… REPAY’s revenue growth has been strong, resulting in 34% CAGR from 2020 to 2022 42% 25% 35% 48% YoY Growth 41% 27% YoY Growth 30% CAGR 34% CAGR REPAY has generated strong, consistent volume growth, resulting in ~$25
Slide 28: Translating into Accelerating Profitability
Gross Profit ($MM)(1) Adjusted EBITDA ($MM)(2) ...Translating into Accelerating Profitability… Gross margins are improving due to a decrease in processing costs Highly scalable platform with attractive margins 73% 77% 75% 38% % Margin 43% 45% % Margin Gross profit represents revenue less costs of se
Slide 29: Across Our Segments
Consumer Payments Business Payments …Across Our Segments 32% y/y growth 28% y/y growth Gross Profit Margin 76.6% 78.8% Take Rate 1.20% 1.23% Take rate represents revenue / card payment volume 28% y/y growth 26% y/y growth Gross Profit Margin 70.3% 71.4% Take Rate 0.78% 0.78% (1) (1)
Slide 30: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation For the twelve months ended December 31, 2022 and 2021, 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-com
Slide 31: Adjusted Free Cash Flow Reconciliation
Adjusted Free Cash Flow Reconciliation Excludes acquisition costs that are capitalized as channel relationships. Primarily consists of (i) during the year ended December 31, 2022, professional service fees and other costs incurred in connection with the acquisitions of BillingTree, Kontrol Payables
Slide 32: Thank you
Thank you