Repay Holdings Corporation · NASDAQ:RPAY
Repay — Q3 2023 Earnings Presentation
32 slides from Repay's earnings presentation, Nov 9, 2023
Slide 1: Q3 2023 Earnings Supplement
Exhibit 99.2 Q3 2023 Earnings Supplement November 2023
Slide 2: Disclaimer
Disclaimer 1 Repay Holdings Corporation (“REPAY” or the “Company”) is required to file annual, quarterly and current reports, proxy statements and other information with the Securities and Exchange Commission (“SEC”) Such filings, which you may obtain for free at the SEC’s website at http://www.sec.
Slide 3: Financial Update & Outlook
2 1 Financial Update & Outlook
Slide 4: We remain positioned for another year of profitable growth in 2023
3 We remain positioned for another year of profitable growth in 2023 We will continue to take advantage of the many secular trends towards frictionless digital payments that have been, and will continue to be, a tailwind driving our business
Slide 5: Third Quarter 2023 Financial Highlights
4 Third Quarter 2023 Financial Highlights REPAY’s Unique Model Translates Into a Highly Attractive Financial Profile CARD PAYMENT REVENUE GROSS PROFIT(1) ADJUSTED EBITDA(3) VOLUME $6.4bn $74.3MM $56.7MM $31.9MM (+7% organic, (+11% organic, (+12% organic, 43% margin excl. political media)(2) excl. po
Slide 6: Financial Update – Q3 2023 ($MM)
5 Financial Update – Q3 2023 ($MM) Card Payment Volume Gross Profit Adjusted EBITDA 7% y/y organic growth, 12% y/y organic growth, excl. political media excl. political media $56.7 $6,417 $6,401 $54.9 $31.7 $31.9 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Take Rate (1) % Margin (2) % Margin (3)
Slide 7: Growth by Segment – Q3 2023 ($MM)
6 Growth by Segment – Q3 2023 ($MM) Take Rate Gross Profit Margin 1.12% 1.16% 76.8% 76.3% 11% y/y organic, excl. political media 12% y/y organic, excl. political media ~20% $74 $72 Percentage of ($4) ~80% ($3) Card Payment $10 $11 $57 Volume(1) $55 ($4) ($3) $7 $8 $69 $63 $54 Consumer Business Total
Slide 8: Q3 2023 Gross Profit Bridge ($MM)
7 Q3 2023 Gross Profit Bridge ($MM) New GP Dollars $56.7 Divestiture $54.9 impact Q3 2023 Political Gross Profit growth 3% media impact Divestiture impact (6%) Organic Gross Profit Growth (1) 9% Political media impact (3%) Normalized Organic GP Growth (2) 12% Q3 Q3 2022A 2023A 1) Organic gross profi
Slide 9: Consumer Payments Results – Q3 2023 ($MM)
8 Consumer Payments Results – Q3 2023 ($MM) Take Rate Gross Profit Margin Key Business Highlights 1.28% 1.29% 79.0% 78.0% 14% y/y organic growth (1) • Strength across personal loans, credit (9% y/y growth, unions, and mortgage servicing as reported) 14% y/y organic growth (1) $68.7 (8% y/y growth, a
Slide 10: Business Payments Results – Q3 2023 ($MM)
9 Business Payments Results – Q3 2023 ($MM) Take Rate Gross Profit Margin Key Business Highlights 0.77% 0.91% 70.4% 74.1% • Strong sales pipeline within healthcare, property management, auto, and 1% y/y growth, municipality verticals via direct sales and $11.4 excl. political media (1) (-15% y/y gro
Slide 11: Strong Liquidity Position as of September 30, 2023
10 Strong Liquidity Position as of September 30, 2023 Liquidity Leverage Cash on Hand $118 MM Total Debt $440 MM Revolver Capacity $185 MM Cash on Hand $118 MM Net Debt $322 MM Total Liquidity $303 MM Net Leverage(1) 2.5x Focused on Maintaining Significant Liquidity Committed to Prudently Managing L
Slide 12: Updated FY 2023 Outlook
11 Updated FY 2023 Outlook REPAY updates its previously provided guidance for full year 2023, as shown below CARD PAYMENT REVENUE GROSS PROFIT ADJUSTED VOLUME EBITDA $26.0 – $27.2Bn $286 – $292MM $218 – $228MM $122 – $130MM (Prior $280-$288mm) 6% - 11% ~44% margins Organic GP Growth (Prior ~45% marg
Slide 13: FY 2023 Gross Profit Outlook Bridge ($MM)
12 FY 2023 Gross Profit Outlook Bridge ($MM) Q1 Q2 Q3 FY 2023 Reported Reported Reported Outlook Gross Profit Growth 11% 8% 3% 2% - 6% Organic GP Growth(1) 13% 12% 9% 6% - 11% (2) New Client Normalized Organic GP Growth 13% 14% 12% 9% - 14% $218 – $228 Growth (3) Blue Cow Existing Client $214 divest
Slide 14: History of Sustained Growth Across All Key Metrics…
13 History of Sustained Growth Across All Key Metrics… Card Payment Volume Revenue (1) (In $ Billions) (In $ Millions) $6.4 $6.2 $6.4 $6.6 $6.6 $6.3 $6.4 $71.6 $72.7 $74.5 $71.8 $74.3 $67.6 $67.4 $5.6 $5.6 $61.1 $62.2 $4.6 $4.6 $47.5 $48.4 $3.9 $3.6 $3.8 $4.0 $39.5 $36.5 $37.6 $41.4 Q1 Q2 Q3 Q4 Q1 Q
Slide 15: …With Expanding Take Rates and Gross Profit Margins
14 …With Expanding Take Rates and Gross Profit Margins Take Rate 1.2% 1.1% 1.0% 0.9% 0.8% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Gross Profit Margin 80% 75% 70% 65% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 202
Slide 16: Strategy & Business Updates
15 2 Strategy & Business Updates
Slide 17: Multiple Levers to Continue to Drive Growth
16 With Our Q3 2023 Performance We See Multiple Levers to Continue to Drive Growth 12% REPAY’s leading platform & attractive market opportunity position it to build on its record of robust growth & profitability Q3 2023 EXECUTE ON BROADENING ADDRESSABLE Normalized Organic EXISTING BUSINESS MARKET AN
Slide 18: Executing on Growth Plan
17 Executing on Growth Plan BROADEN ADDRESSABLE EXPANDING EXISTING BUSINESS MARKET AND SOLUTIONS 257 SOFTWARE PARTNER ADDED NEW CLIENTS VIA DIRECT Expanded TAM to ~$5.2 trillion(2) RELATIONSHIPS(1), INCLUDING: SALESFORCE ACROSS ALL VERTICALS through strategic M&A CONSUMER PAYMENTS Ended Q3 2023 with
Slide 19: Ample Runway in Consumer Payments
18 Ample Runway in Consumer Payments Evolving consumer preferences and technology are requiring clients to embrace payment digitization $1.8Tn 6 161 ~20,600 TOTAL VERTICAL ISV CLIENTS ADDRESSABLE END MARKETS INTEGRATION MARKET(1) PARTNERS • REPAY’s integrated payment processing platform automates an
Slide 20: Consumer Payments Offering Omnichannel Capabilities across Modalities
19 Consumer Payments Offering Omnichannel Capabilities across Modalities Clients in REPAY’s verticals look to partner with innovative vendors that can provide evolving payment functionality and acceptance solutions PAYMENT MODALITIES PAYMENT CHANNELS Credit and Debit Web Portal / eCash Virtual Text
Slide 21: REPAY’s Growing Business Payments Segment
20 REPAY’s Growing Business Payments Segment Combined AR and AP automation solution provides a compelling value proposition to clients $3.4Tn 15+ 96 ~5,000 ~233K TOTAL VERTICAL B2B INTEGRATED CLIENTS SUPPLIER ADDRESSABLE END MARKETS SOFTWARE NETWORK MARKET(1) PARTNERS B2B Merchant Acquiring B2B AP A
Slide 22: Powerful Business Payments Offering
21 Powerful Business Payments Offering ACCOUNTS RECEIVABLE AUTOMATION ACCOUNTS PAYABLE AUTOMATION Suppliers Deep ERP Automated Reporting Integrations and Reconciliation Multiple Payment Multiple Payment Options Methods Cash TotalPay Cash Including Virtual Card and Cross Border Inflow Solution Outflo
Slide 23: Appendix
22 3 Appendix
Slide 24: Q3 2023 Financial Update
23 Q3 2023 Financial Update THREE MONTHS ENDED SEPTEMBER 30 CHANGE $MM 2023 2022 AMOUNT % Card Payment Volume $6,401.3 $6,416.8 ($15.5) (0%) Revenue $74.3 $71.6 $2.8 4% Costs of Services 17.6 16.6 1.0 6% Gross Profit $56.7 $54.9 $1.8 3% SG&A(1) 38.5 24.3 14.3 59% EBITDA $18.1 $30.7 ($12.5) (41%) Dep
Slide 25: Adjusted EBITDA Reconciliation
24 Adjusted EBITDA Reconciliation 1) For the three and nine months ended September 30, 2023 and 2022, reflects amortization of client $MM Q3 2023 Q3 2022 relationships, non-compete agreement, software, and channel relationship intangibles acquired through the business combination with Thunder Bridge
Slide 26: Adjusted Net Income Reconciliation
25 Adjusted Net Income Reconciliation 1) For the three and nine months ended September 30, 2023 and 2022, reflects amortization of client ($MM) Q3 2023 Q3 2022 relationships, non-compete agreement, software, and channel relationship intangibles acquired through the business combination with Thunder
Slide 27: Adjusted Free Cash Flow Reconciliation
26 Adjusted Free Cash Flow Reconciliation 1) Primarily consists of (i) during the three and nine months ended September 30, 2023, professional service $MM Q3 2023 Q3 2022 fees and other costs incurred in connection with the disposition of Blue Cow Software, and (ii) during the three and nine months
Slide 28: Depreciation and Amortization Detail
27 Depreciation and Amortization Detail $MM Q3 2023 Q3 2022 Acquisition-related intangibles $19.8 $20.8 Software 6.4 3.2 Amortization $26.2 $24.1 Depreciation 0.3 0.6 Total Depreciation and Amortization $26.5 $24.7 Note: Adjusted Net Income is adjusted to exclude amortization of all acquisition-rela
Slide 29: Card Payment Volume Growth Reconciliation
28 Card Payment Volume Growth Reconciliation 2023 $MM Q3 Card Payment Volume Growth (0%) Growth from Acquisitions / (Divestitures) (2%) Organic Card Payment Volume Growth(1) 2% Growth from political media (5%) Normalized Organic Card Payment Volume Growth(2) 7% 1) Organic growth is a non-GAAP financ
Slide 30: Revenue and Gross Profit Growth Reconciliations
29 Revenue and Gross Profit Growth Reconciliations Q3 2023 Consumer Business Total $MM Payments Payments Company Revenue Growth 9% (15%) 4% Growth from Acquisitions / (Divestitures) (5%) n/a (4%) Organic Revenue Growth(1) 14% (15%) 8% Growth from Political Media n/a (16%) (3%) Organic Revenue Growth
Slide 31: Quarterly Gross Profit Growth Reconciliation
30 Quarterly Gross Profit Growth Reconciliation 2022 Full Year 2023 $MM Q1 Q2 Q3 Q4 2022 Q1 Q2 Q3 Gross Profit Growth 46% 42% 20% 22% 31% 11% 8% 3% Growth from 41% 32% 5% 5% 19% (2%) (4%) (6%) Acquisitions/(Divestitures) Organic Gross 12% 13% 12% 9% Profit Growth (1) Growth from 3% (<1%) (2%) (3%) p
Slide 32: Historical Segment Details
31 Historical Segment Details 2021 2022 2023 Full Year $MM Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2022 Consumer Payments $3,694.1 $3,523.4 $4,426.7 $4,465.7 $5,290.5 $4,918.6 $4,937.8 $5,009.5 $5,524.8 $5,183.8 $5,338.3 $16,109.9 $20,156.5 Business Payments 919.9 1,100.1 1,156.4 1,177.4 1,123.4 1,277