Verra Mobility Corporation · NASDAQ:VRRM
Verra Mobility — Q4 2023 Earnings Presentation
24 slides from Verra Mobility's earnings presentation, Feb 29, 2024
Slide 1: Investor Overview
Investor Overview Verra Mobility Q4 2023 Investor Presentation For the Quarter Ended December 31, 2023
Slide 2: Forward-looking Statements
Forward-looking Statements We describe many of the trends and other factors that drive our business and future results in this presentation. Such discussions contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
Slide 3: Verra Mobility Key Investment Themes
Verra Mobility Key Investment Themes 1 Global leader of smart mobility solutions that address mission-critical transportation needs for cities, fleets and universities 2 Well-positioned in large, growing and attractive markets with strong secular tailwinds 3 Robust free cash flow combined with disci
Slide 4: Solving Complex Transportation Challenges
Solving Complex Transportation Challenges We solve complex We make parking We save lives by payment challenges for more efficient and help changing driver behavior. shared vehicles. reduce congestion. U.S. drivers spend Vehicles in the U.S. 43,000 people died in make 5.7B+ toll trip 17 hours annuall
Slide 5: Market-leading financial profile across a range of attractive markets
Market-leading financial profile across a range of attractive markets FY 2023 Key Metrics Global Presence Total Revenue1 Re-occurring Revenue2 ~1,700 ~2,400 $817M 96% Employees Globally Customers Served Globally Adj EBITDA1 Adj. EBITDA Margin Consolidated Sales (FY23) by Geography $372M 45% 91% Free
Slide 6: Positioned for Continued Growth & Profitability
Positioned for Continued Growth & Profitability Commercial Services Government Solutions Parking Solutions (~46%1) (~44%1) (~10%1) Business Segment Leading technology provider of end-to-end Market leader in toll and violation Industry leader in automated traffic parking management solutions in North
Slide 7: Large, Attractive Markets Fueled by Long-Term Macro Trends
Large, Attractive Markets Fueled by Long-Term Macro Trends Connected Fleet Solutions Urban Mobility Estimated Total Global Addressable Market1,2 $14B in 2025 $26B in 2025 Key End Markets Fleet Telematics Vehicle Traffic Parking & Curbside Road Usage Administration Payments Management Management Char
Slide 8: A Customer-Centric Growth Playbook
A Customer-Centric Growth Playbook 1. Deep Customer Relationships 2. Differentiated Solutions BUILD deep meaningful relationships with CREATE new opportunities to serve based on customers based on trust service excellence and understanding of customer needs 95%+ Customer Renewal Rate1 4. Management
Slide 9: A Growth Playbook to Deliver Strong Organic Growth
A Growth Playbook to Deliver Strong Organic Growth Commercial Government Parking Services Solutions Solutions 1. Grow the Core Grow managed vehicle fleets Open new cities Add new universities & municipalities 2. Expand into Adjacent markets and offerings Scale and accelerate Bus Lane Open new market
Slide 10: Experienced and Proven Leadership
Experienced and Proven Leadership David Roberts Craig Conti Jon Keyser Steve Lalla President & CEO Chief Financial Officer Chief Legal Officer EVP, Commercial Services Jon Baldwin Adam Blake Jason Rivera Mike McMillin EVP, Government Solutions President, T2 Systems Chief Technology Officer SVP, Corp
Slide 11: Inaugural Corporate Responsibility Report
Inaugural Corporate Responsibility Report Published in January 2024, report outlines company’s environmental, social and governance strategies and initiatives Focused on three core responsibility areas: I. Planet – creating a positive impact by developing technology solutions to help improve road sa
Slide 12: Our People Make the Difference
Our People Make the Difference 77 PURPOSE 2023 Engagement Score Enriching lives by making mobility safer & easier VISION To be the global leader in smart mobility by serving our customers at their ~80% highest point of need, with the best people doing their best work Retention1 Strategic Pillars DRI
Slide 13: Commercial Services: Leading Fleet Mobility Solutions Provider
Commercial Services Leading Fleet Mobility Solutions Provider Strategic Advantages TAM Organic Growth $7B HSD L/T Strategic differentiation based on large scale and deep integrations with our customers and key partners Commercial Sales Sales Proprietary cloud applications Services Segment by Sol
Slide 14: Government Solutions: Leading Global Provider Poised for L/T Growth
Government Solutions Leading Global Provider Poised for L/T Growth Strategic Advantages TAM Organic Growth Long-term relationships with state and $11B MSD L/T local governments Complete solutions reduce risk and Government Sales Sales by time to deploy Solutions Segment 1 Breakdown Geography C
Slide 15: T2 Systems: Leading Parking Solutions Partner
T2 Systems Leading Parking Solutions Partner Strategic Advantages Total Revenue Adj. EBITDA NA TAM1 2023 Financial Results $86M $15M $4B #1 market position in large universities Diversified product portfolio that scales Sales and provides end-to-end solutions Breakdown 2 Years of Renewal Well-
Slide 16: Core Businesses Drive Strong Growth and Free Cash Flow Conversion
Core Businesses Drive Strong Growth and Free Cash Flow Conversion Total Revenue Breakdown ($M) Adjusted EBITDA & Margins ($M) Service Product Total Revenue CAGR 16% Adj EBITDA 45% Service Revenue CAGR 17% $817 CAGR 11% 46% $742 $34 $46 49% $551 $449 54% $58 $372 $394 $339 $32 $57 $784 46% $695 $271
Slide 17: Strong, Flexible Balance Sheet + Robust Cash Flow
2 0 2 1 I N V E S T O R D A Y – © B U I L D E R17S F I R S T S O U R C E Strong, Flexible Balance Sheet + Robust Cash Flow Capital Summary & Financial Highlights ($M) Net Leverage Improvement ($M) $1,131 $1,107 December 31, 2023 $949 $942 $918 Cash & Cash Equivalents $136 3.3x 3.2x 2.7x 2.6x 2.5x De
Slide 18: Demonstrated History of Disciplined Capital Allocation
Demonstrated History of Disciplined Capital Allocation 2018 – 2023 Capital Deployment ($M) Capital Allocation Snapshot ($M) 1 Organic Investment Capex Share Buybacks Revenue generating capital expenditures (e.g., cameras) Debt 11% 17% Proprietary software development repayment Minimal mainte
Slide 19: 2024 Financial Outlook
2024 Financial Outlook delivers strong revenue growth, margin expansion and FCF conversion 2024 Guidance In millions, except per share data & net leverage Commentary Total Revenue growth of 6% to 8% CS … HSD growth CS driven by strong travel demand 1 Total Revenue $865 - $880 GS … MSD growth plus in
Slide 20: Appendix
Appendix 20
Slide 21: Verra Mobility Quarterly Results
Verra Mobility Quarterly Results 2021 - 2023 Unaudited ($ in millions) Full Year 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Full Year 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Full Year 2023 Service revenue $492.8 $161.1 $174.5 $180.6 $179.0 $695.2 $184.7 $196.0 $201.0 $201.8 $783.6 Product sales 57.7 9.3 13.0
Slide 22: Verra Mobility Quarterly Results: Segment Results of Operations
Verra Mobility Quarterly Results Segment Results of Operations Commercial Services Unaudited ($ in millions) Full Year Full Year Full Year Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2021 2022 2023 Total Revenue Commercial Services $260.9 $73.5 $84.9 $86.1 $81.6 $326.0 $85.6 $94.
Slide 23: Free Cash Flow Reconciliation, incl. % of Adj. EBITDA
Verra Mobility Free Cash Flow Reconciliation, incl. % of Adj. EBITDA ($MM) 2019 2020 2021 2022 2023 Adjusted EBITDA $ 241 $ 182 $ 271 $ 339 $372 Net cash provided by operating activities $ 134 $ 47 $ 193 $ 218 $206 Purchases of installation and service parts and property and equipment (30) (24) (25)
Slide 24: Thank You
Thank You <<. VERRA A MOBILITY Safe. Smart. connected, =»?