Slide 1: Verra Mobility Q3 2023 Earnings Presentation
Earnings Overview Verra Mobility Q3 2023 Earnings Presentation For the Quarter Ended September 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: Executive Summary
Executive Summary Q3 2023 Financial Highlights • Strong third quarter top-line performance across all business segments Total Revenue - Commercial Services: 14% Y-o-Y growth driven by strong travel demand (TSA at 102% of $210 million; 6% YoY growth 2019 level) - Government Solutions: 10% Y-o-Y servi
Slide 4: Strong top-line, profitability and Free Cash Flow generation
Strong top-line, profitability and Free Cash Flow generation Consolidated – Q3 Results Total Revenue ($M) Service Revenue ($M) Core U.S. GS Product $210 Total $198 +6% $10 $209 $201 Ex U.S. +11% $188 GS Product +11% $181 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Adjusted EBITDA ($M)1 Free Cash Flow ($M) Core
Slide 5: Core Businesses Drive Strong Growth and Free Cash Flow Conversion
Core Businesses Drive Strong Growth and Free Cash Flow Conversion Total Revenue ($M) Adjusted EBITDA & Margins ($M) Adj EBITDA 46% Total Revenue CAGR 12% 46% CAGR 16% 49% 54% $742 $792 $364 $339 46% $551 $271 $449 $241 $394 $182 2019 2020 2021 2022 Q3 2023 TTM 2019 2020 2021 2022 Q3 2023 TTM Free Ca
Slide 6: Robust travel demand driving strong performance
Robust travel demand driving strong performance Commercial Services – Q3 Results Total Revenue & YoY Growth Adjusted EBITDA & YoY Growth $65 $98 $56 +16% +14% $86 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 – Key Highlights • Third quarter Revenue up 14% over Q3 2022 due to strength in RAC tolling and Fleet
Slide 7: Revenue fueled by transition to ARR model
Revenue fueled by transition to ARR model Government Services – Q3 Results Total Revenue & YoY Growth Adjusted EBITDA & YoY Growth 1 Service Revenue Product Revenue Core U.S. GS Product Total Rev $90 $90 $30 Total Adj. 1% EBITDA $12 $5 $29 $3 -6% Srvc Rev +10% $85 Ex U.S. $77 $27 GS Product $28 +5%
Slide 8: Revenue driven by acceleration of SaaS and Services
Revenue driven by acceleration of SaaS and Services T2 Systems – Q3 Results Total Revenue & YoY Growth Adjusted EBITDA & YoY Growth SaaS & Service Revenue Product Revenue $22 Total Rev $21 -2% $5 $4 $17 Srvc Rev $18 $4 -15% $4 +4% Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 – Key Highlights • SaaS & Services
Slide 9: Strong Adjusted EPS and De-levering performance
Strong Adjusted EPS and De-levering performance Adjusted EPS Net Debt & Leverage $1,187 $1,131 $1,107 $949 $942 3.5x $0.29 $0.29 $0.27 3.3x $0.26 3.2x $0.25 2.7x 2.6x Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Consistent earnings power and continued de-levering d
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 $800 - $810 Upper-end of prior range • CS driven by strong travel demand + increased adoption • GS driven by strong backlog generating Adj. EBITDA $365 to $370 Upp
Slide 11: Appendix
Appendix 11
Slide 12: Verra Mobility Quarterly Results
Verra Mobility Quarterly Results 2020 - 2023 Unaudited ($ in millions) Full Year 2020 Full Year 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Full Year 2022 Q1 2023 Q2 2023 Q3 2023 Service revenue $336.3 $492.8 $161.1 $174.5 $180.6 $179.0 $695.2 $184.7 $196.0 $201.0 Product sales 57.3 57.7 9.3 13.0 17.0 7.1
Slide 13: Verra Mobility Quarterly Results: Segment Results of Operations
Verra Mobility Quarterly Results Segment Results of Operations Commercial Services Unaudited ($ in millions) Full Year Full Year Full Year Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 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
Slide 14: Adj. Net Income and Adj. Diluted EPS Reconciliations
Verra Mobility Adj. Net Income and Adj. Diluted EPS Reconciliations (in $MM, except per share data) Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Net Income $ 24.6 $ 28.2 $4.6 $19.1 $30.3 Amortization of intangibles 26.6 25.1 22.0 20.0 18.9 Transaction and other related expenses 3.0 (0.1) 0.3 0.1 0.2 Tran
Slide 15: Thank You
Thank You http://ir.verramobility.com/