Slide 1: Verra Mobility Q2 2023 Earnings Presentation
Earnings Overview Verra Mobility Q2 2023 Earnings Presentation For the Quarter Ended June 30, 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: Outstanding Q2, Highlighted by Strong Revenue, Adj. EBITDA and Free Cash Flow
Outstanding Q2, Highlighted by Strong Revenue, Adj. EBITDA and Free Cash Flow Q2 Business Highlights Q2 2023 Financial Highlights • Strong second quarter top-line performance across all business segments • Commercial Services: 11% Y-o-Y growth driven by strong travel demand (TSA at 100% of Total Rev
Slide 4: Strong top-line, profitability and Free Cash Flow generation
Strong top-line, profitability and Free Cash Flow generation Consolidated – Q2 Results Total Revenue ($M) Service Revenue ($M) Core U.S. GS Product $204 Total $187 +9% $6 $204 $196 Ex U.S. +12% $181 GS Product +13% $175 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Adjusted EBITDA ($M)1 Free Cash Flow ($M) Core U
Slide 5: Core Businesses Drive Strong Growth and Free Cash Flow Conversion
Core Businesses Drive Strong Growth and Free Cash Flow Conversion Total Revenue ($M) Adjusted EBITDA & Margins ($M) Adj EBITDA 46% Total Revenue 46% CAGR 17% CAGR 12% 49% 54% $742 $780 $339 $357 46% $551 $271 $449 $241 $394 $182 2019 2020 2021 2022 Q2 2023 TTM 2019 2020 2021 2022 Q2 2023 TTM Free Ca
Slide 6: Robust travel demand driving strong performance
Robust travel demand driving strong performance Commercial Services – Q2 Results Total Revenue & YoY Growth Adjusted EBITDA & YoY Growth $94 +8% $61 $57 $85 +11% Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 – Key Highlights • RAC tolling revenue up 16% over Q2 2022 due to increased travel volume and adoption
Slide 7: Revenue growth fueled by transition to recurring service revenue
Revenue growth fueled by transition to recurring service revenue Government Services – Q2 Results Total Revenue & YoY Growth Adjusted EBITDA & YoY Growth 1 Service Revenue Product Revenue Core U.S. GS Product Total Adj. Total Rev $88 $30 $84 $29 EBITDA 6% $3 4% $9 $2 Srvc Rev $85 Ex U.S. +14% $30 $7
Slide 8: Revenue growth driven by acceleration of SaaS and Services
Revenue growth driven by acceleration of SaaS and Services T2 Systems – Q2 Results Total Revenue & YoY Growth Adjusted EBITDA & YoY Growth SaaS & Service Revenue Product Revenue Total Rev $22 $19 14% $5 $4 $15 Srvc Rev $17 18% $4 +11% $3 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 – Key Highlights • SaaS & S
Slide 9: Strong Adjusted EPS and De-levering performance
Strong Adjusted EPS and De-levering performance Adjusted EPS Net Debt & Leverage $1,157 $1,187 $1,131 $1,107 $949 3.5x $0.29 $0.27 $0.27 3.5x $0.26 3.3x 3.2x $0.25 2.7x Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Consistent earnings power and continued de-levering
Slide 10: Increasing 2023 Financial Guidance
Increasing 2023 Financial Guidance Previous Guidance Updated Guidance Year-over-Year Revenue and Adj. EBITDA growth of ~9% Total Revenue $780 - $800 $800 - $810 • CS driven by strong travel demand (2H 23’ TSA volume forecasted at ~99% of 2019 levels) + increased adoption Adj. EBITDA $360 - $370 Uppe
Slide 11: Appendix
Appendix 11
Slide 12: Updated Weighted Average Shares Outstanding for 2023
Updated Weighted Average Shares Outstanding for 2023 Updated fully diluted share count guidance for 2023 due to cash-exercise warrant redemption primarily in Q2 2023 Original Guidance (Q4 22 Earnings Call) Updated Guidance (Q2 23 Earnings Call) Shares Outstanding in millions Shares Outstanding in mi
Slide 13: Verra Mobility Quarterly Results
Verra Mobility Quarterly Results 2020 - 2023 Unaudited ($ in millions) Full Year 2020 Full Year 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Full Year 2022 Q1 2023 Q2 2023 Service revenue $336.3 $492.8 $161.1 $174.5 $180.6 $179.0 $695.2 $184.7 $196.0 Product sales 57.3 57.7 9.3 13.0 17.0 7.1 46.4 7.2 $8.4 T
Slide 14: Verra Mobility Quarterly Results: Segment Results of Operations
Verra Mobility Quarterly Results Segment Results of Operations Commercial Services Unaudited ($ in millions) Full Year Full Year Full Year Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 2020 2021 2022 Total Revenue Commercial Services $180.9 $260.9 $73.5 $84.9 $86.1 $81.6 $326.0 $85.6 $94.5 Segment
Slide 15: Adj. Net Income and Adj. Diluted EPS Reconciliations
Verra Mobility Adj. Net Income and Adj. Diluted EPS Reconciliations (in $MM, except per share data) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Net Income $ 29.6 $ 24.6 $ 28.2 $4.6 $19.1 Amortization of intangibles 27.2 26.6 25.1 22.0 20.0 Transaction and other related expenses 0.3 3.0 (0.1) 0.3 0.1 Tra
Slide 16: Thank You
Thank You http://ir.verramobility.com/