Repay Holdings Corporation · NASDAQ:RPAY
Repay — Q4 2024 Earnings Presentation
29 slides from Repay's earnings presentation, Feb 3, 2025
Slide 1: Q4 2024 Earnings Supplement
Exhibit 99.2 Q4 2024 Earnings Supplement March 2025
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
2 1 Financial Update
Slide 4: Closed the year with another quarter of profitable growth
3 We closed out the year with another quarter of profitable growth, with a focus on accelerated FCF conversion in 2024 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: FY 2024 Financial Highlights
4 FY 2024 Financial Highlights REPAY’s Unique Model Translates Into a Highly Attractive Financial Profile REVENUE GROSS PROFIT ADJUSTED EBITDA(1) FREE CASH FLOW(2) $313.0MM $241.4MM $140.8MM $105.2MM +6% y/y growth +6% y/y growth +11% y/y growth 75% FCF Conversion(2) 1) Adjusted EBITDA is a non-GAAP
Slide 6: Financial Update – Q4 2024 ($MM)
5 Financial Update – Q4 2024 ($MM) Revenue Gross Profit Adjusted EBITDA (2) Free Cash Flow (3) 3% y/y growth 2% y/y growth 9% y/y growth 8% y/y growth $78.3 $36.5 $59.7 $33.5 $76.0 $58.7 $23.5 $21.8 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 % Margin (1) % Margin (2) FCF convers
Slide 7: Strong Profitability and Accelerating FCF Conversion
6 Strong Profitability and Accelerating FCF Conversion Free Cash Flow Conversion (3) Q4 FY 75% 2024 2024 Adjusted EBITDA y/y growth (1) 9% 11% Capital expenditures y/y growth (2) (17%) (12%) Free Cash Flow y/y growth (3) 8% 99% • FY 2024 Free Cash Flow benefited from ~$25 million 42% favorable timin
Slide 8: Consumer Payments Results – FY 2024 ($MM)
7 Consumer Payments Results – FY 2024 ($MM) Gross Profit Margin Key Business Highlights 2% y/y growth 78% 79% • Resilent trends across auto loans, personal loans, credit unions, and mortgage servicing, $281.0 while seeing pockets of consumer softness $275.7 3% y/y growth • Winning large enterprise c
Slide 9: Business Payments Results – FY 2024 ($MM)
8 Business Payments Results – FY 2024 ($MM) Gross Profit Margin Key Business Highlights 39% y/y growth 73% 74% • Strong sales pipeline within healthcare, property $52.9 management, and municipality verticals via direct sales and new / refreshed integrations 40% y/y growth • Benefiting from strong po
Slide 10: Balance Sheet Flexibility and Net Leverage
9 Balance Sheet Flexibility and Net Leverage Liquidity & Near-Term Debt Maturity Net Leverage as of December 31, 2024 (In $ millions) $440 Total Debt $508 MM On-going cash generation & Cash Balance $190 MM $303 continued improvements in FCF conversion Accelerated $220 Net Debt $318 MM FCF conversion
Slide 11: History of Sustained Growth Across All Key Metrics…
10 History of Sustained Growth Across All Key Metrics… Revenue (1) Gross Profit (1) (In $ Millions) (In $ Millions) $80.7 $79.1 $78.3 $61.5 $61.6 $59.7 $74.5 $71.8 $74.3 $76.0 $74.9 $57.8 $56.6 $58.7 $58.6 $71.6 $72.7 $54.9 $54.9 $56.7 $67.6 $67.4 $51.0 $50.7 $61.1 $62.2 $45.8 $47.2 $47.5 $48.4 $35.
Slide 12: …With Expanding Gross Profit Margins and Accelerating FCF Conversion
11 …With Expanding Gross Profit Margins and Accelerating FCF Conversion Gross Profit Margin 80% 78% 75% 73% 70% Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FCF Conversion (1) 150% 120% 90% 60% 30% 0% Q1 2021 Q2 2021
Slide 13: Strategy & Business Updates
12 2 Strategy & Business Updates
Slide 14: Multiple Levers to Continue to Drive Growth
13 With Our 2024 Performance We See Multiple Levers to Continue to Drive Growth 6% REPAY’s leading platform & attractive market opportunity position it to build on its record of robust growth & profitability EXECUTE ON BROADENING ADDRESSABLE FY 2024 EXISTING BUSINESS MARKET AND SOLUTIONS GP Growth E
Slide 15: Executing on Growth Plan
14 Executing on Growth Plan BROADEN ADDRESSABLE EXPANDING EXISTING BUSINESS MARKET AND SOLUTIONS 280 SOFTWARE PARTNER ADDED NEW CLIENTS VIA DIRECT Expanded TAM to ~$5.6 trillion(2) RELATIONSHIPS(1), INCLUDING: SALESFORCE ACROSS ALL VERTICALS through strategic M&A CONSUMER PAYMENTS Ended Q4 2024 with
Slide 16: Ample Runway in Consumer Payments
15 Ample Runway in Consumer Payments Evolving consumer preferences and technology are requiring clients to embrace payment digitization $2.4Tn 6 180 TOTAL VERTICAL ISV ADDRESSABLE END MARKETS INTEGRATION MARKET(1) PARTNERS • REPAY’s integrated payment processing platform automates and modernizes our
Slide 17: Consumer Payments Offering Omnichannel Capabilities across Modalities
16 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 18: REPAY’s Growing Business Payments Segment
17 REPAY’s Growing Business Payments Segment Combined AR and AP automation solution provides a compelling value proposition to clients $3.2Tn 15+ 100 360,000+ TOTAL VERTICAL B2B INTEGRATED SUPPLIER ADDRESSABLE END MARKETS SOFTWARE NETWORK MARKET(1) PARTNERS B2B Merchant Acquiring B2B AP Automation •
Slide 19: Powerful Business Payments Offering
18 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 20: Appendix
19 3 Appendix
Slide 21: Q4 2024 Financial Update
20 Q4 2024 Financial Update THREE MONTHS ENDED DECEMBER 31 CHANGE $MM 2024 2023 AMOUNT % Revenue $79.1 $74.3 $4.8 6% Costs of Services 17.6 17.6 (0.1) (0%) Gross Profit $61.6 $56.7 $4.9 9% Operating Expenses(1) 40.1 113.4 (73.4) (65%) EBITDA $21.5 ($56.8) $78.3 138% Depreciation and Amortization 24.
Slide 22: Q4 & FY Adjusted EBITDA Reconciliation
21 Q4 & FY Adjusted EBITDA Reconciliation Q4 Q4 FY FY 1) Reflects amortization of client relationships, non-compete agreement, software, and channel relationship $MM intangibles acquired through the business combination with Thunder Bridge, and client relationships, non- 2024 2023 2024 2023 compete
Slide 23: Quarterly Adjusted Net Income Reconciliation
22 Quarterly Adjusted Net Income Reconciliation 1) Reflects amortization of client relationships, non-compete agreement, software, and channel relationship ($MM) Q4 2024 Q4 2023 intangibles acquired through the business combination with Thunder Bridge, and client relationships, non- compete agreemen
Slide 24: Free Cash Flow Reconciliation
23 Free Cash Flow Reconciliation 2021 2022 2023 2024 Full Year $MM Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023 2024 Net Cash provided by $4.8 $12.1 $14.6 $21.8 $13.8 $13.3 $25.3 $21.8 $20.8 $20.0 $28.0 $34.9 $24.8 $31.0 $60.1 $34.3 $53.3 $74.2 $103.6 $150.1 Operating Activities Ca
Slide 25: Depreciation and Amortization Detail
24 Depreciation and Amortization Detail $MM Q4 2024 Q4 2023 Acquisition-related intangibles $18.6 $21.0 Software 5.2 3.2 Amortization $23.8 $24.1 Depreciation 0.5 0.6 Total Depreciation and Amortization $24.4 $24.7 Note Adjusted Net Income is adjusted to exclude amortization of all acquisition-relat
Slide 26: Q4 2024 Revenue and Gross Profit Growth Reconciliations
25 Q4 2024 Revenue and Gross Profit Growth Reconciliations Q4 2024 Consumer Business Total $MM Payments Payments Company Revenue Growth (7%) 76% 3% Acquisitions / (Divestitures) impact n/a n/a n/a Organic Revenue Growth (7%) 76% 3% Political Media contribution / (impact) n/a 69% 9% Organic Revenue G
Slide 27: FY2024 Revenue and Gross Profit Growth Reconciliations
26 FY2024 Revenue and Gross Profit Growth Reconciliations FY 2024 Consumer Business Total $MM Payments Payments Company Revenue Growth 2% 39% 6% Acquisitions / (Divestitures) impact (<1%) n/a (<1%) Organic Revenue Growth 2% 39% 6% Political Media contribution / (impact) n/a 35% 5% Organic Revenue Gr
Slide 28: Gross Profit Growth Reconciliation
27 Gross Profit Growth Reconciliation 2023 2024 $MM Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Gross Profit Growth 11% 8% 3% 2% 6% 9% 7% 9% 2% 6% Acquisitions / (2%) (4%) (6%) (6%) (4%) (2%) n/a n/a n/a (1%) (Divestitures) impact Organic Gross 13% 12% 9% 8% 10% 11% 7% 9% 2% 7% Profit Growth Political Media (<1%)
Slide 29: Historical Segment Details
28 Historical Segment Details 2022 2023 2024 Full Year $MM Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023 2024 Consumer Payments $61.1 $59.8 $63.0 $64.3 $69.9 $65.9 $68.7 $71.1 $76.1 $69.3 $69.2 $66.3 $248.2 $275.7 $281.0 Business Payments 8.9 9.9 11.4 12.3 8.7 9.8 9.7 9.9 9.7 10.6 15.3 17.4 42.6 38.