Repay Holdings Corporation · NASDAQ:RPAY
Repay — Q3 2024 Earnings Presentation
31 slides from Repay's earnings presentation, Nov 12, 2024
Slide 1: Q3 2024 Earnings Supplement
Exhibit 99.2 Q3 2024 Earnings Supplement November 2024
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: Positioned for another year of profitable growth, accelerating FCF conversion
3 We remain positioned for another year of profitable growth, while being focused on accelerating 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: Financial Update – Q3 2024 ($MM)
4 Financial Update – Q3 2024 ($MM) Revenue Gross Profit Adjusted EBITDA (2) Free Cash Flow (3) 6% y/y growth 9% y/y growth 10% y/y growth 250% y/y growth $48.8 $61.6 $35.1 $79.1 $31.9 $74.3 $56.7 $13.9 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 % Margin (1) % Margin (2) FCF conv
Slide 6: Strong Growth and Accelerating FCF Conversion – Year-to-Date 2024
5 Strong Growth and Accelerating FCF Conversion – Year-to-Date 2024 Free Cash Flow Conversion (3) Q3 YTD 139% 2024 2024 Gross Profit growth 9% 8% Divestiture impact n/a 1% Organic Gross Profit Growth (1) 9% 9% 78% Adjusted EBITDA growth (2) 10% 12% Free Cash Flow Growth (3) 250% 164% 44% 33% • Q3 Fr
Slide 7: Consumer Payments Results – Q3 2024 ($MM)
6 Consumer Payments Results – Q3 2024 ($MM) Gross Profit Margin Key Business Highlights 1% y/y growth 78% 79% • Winning large enterprise clients who are adopting more payment channels and $69.2 modalities $68.7 2% y/y growth • Resilent trends across auto loans, personal loans, credit unions, and mor
Slide 8: Business Payments Results – Q3 2024 ($MM)
7 Business Payments Results – Q3 2024 ($MM) Gross Profit Margin Key Business Highlights 74% 79% 58% y/y growth • Strong sales pipeline within healthcare, property management, and $15.3 municipality verticals via direct sales 67% y/y growth and new / refreshed integrations $12.0 • Benefiting from str
Slide 9: Balance Sheet Flexibility and Net Leverage
8 Balance Sheet Flexibility and Net Leverage Liquidity & Near-Term Debt Maturity Net Leverage as of September 30, 2024 (In $ millions) (1) (1) Total Debt $508 MM $419 ~$442 – $444 On-going cash generation & Cash Balance $169 MM continued improvements in FCF conversion Accelerating $220 Net Debt $339
Slide 10: Updated FY 2024 Outlook
9 Updated FY 2024 Outlook REPAY updates it previously provided outlook for full year 2024 REVENUE GROSS PROFIT ADJUSTED FREE CASH FLOW EBITDA CONVERSION (1) $314 – $320MM $245 – $250MM $139 – $142MM ~65% reported (2) (unchanged) ~78% Margins ~44% Margins (prior ~60% reported) (unchanged) (unchanged)
Slide 11: FY 2024 Gross Profit Outlook Bridge
10 FY 2024 Gross Profit Outlook Bridge (In $ Millions) New Client Growth (1) $245 - $250 Existing Client Growth (1) Political media contribution (1) Blue Cow $227 divestiture 2023A 2024E Reported 1) Management estimates as of 11/12/2024
Slide 12: Updated FY 2024 Outlook Bridge
11 Updated FY 2024 Outlook Bridge Gross Profit & Adjusted EBITDA Updated Free Cash Flow Conversion (1) (In $ Millions) Adjusted EBITDA to grow faster than Gross Profit… … combined with Capex reduction, ~ 65% $245 - $250 FCF Conversion to accelerate $227 $139 - $142 $127 42% 2023A 2024E 2023A 2024E 2
Slide 13: History of Sustained Growth Across All Key Metrics
12 History of Sustained Growth Across All Key Metrics… Revenue (1) Gross Profit (1) (In $ Millions) (In $ Millions) $80.7 $79.1 $61.5 $61.6 $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 $35.0 $35.7 Q1 Q
Slide 14: Expanding Gross Profit Margins and Accelerating FCF Conversion
13 …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 FCF Conversion (1) 150% 120% 90% 60% 30% 0% Q1 2021 Q2 2021 Q3 2021
Slide 15: Strategy & Business Updates
14 2 Strategy & Business Updates
Slide 16: Multiple Levers to Continue to Drive Growth
15 With Our YTD 2024 Performance We See Multiple Levers to Continue to Drive Growth 9% REPAY’s leading platform & attractive market opportunity position it to build on its record of robust growth & profitability YTD 2024 EXECUTE ON BROADENING ADDRESSABLE Organic GP Growth EXISTING BUSINESS MARKET AN
Slide 17: Executing on Growth Plan
16 Executing on Growth Plan BROADEN ADDRESSABLE EXPANDING EXISTING BUSINESS MARKET AND SOLUTIONS 276 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 2024 with
Slide 18: Ample Runway in Consumer Payments
17 Ample Runway in Consumer Payments Evolving consumer preferences and technology are requiring clients to embrace payment digitization $1.8Tn 6 176 TOTAL VERTICAL ISV ADDRESSABLE END MARKETS INTEGRATION MARKET(1) PARTNERS • REPAY’s integrated payment processing platform automates and modernizes our
Slide 19: Consumer Payments Offering Omnichannel Capabilities across Modalities
18 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 20: REPAY's Growing Business Payments Segment
19 REPAY’s Growing Business Payments Segment Combined AR and AP automation solution provides a compelling value proposition to clients $3.4Tn 15+ 100 333,000+ TOTAL VERTICAL B2B INTEGRATED SUPPLIER ADDRESSABLE END MARKETS SOFTWARE NETWORK MARKET(1) PARTNERS B2B Merchant Acquiring B2B AP Automation •
Slide 21: Powerful Business Payments Offering
20 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 22: Appendix
21 3 Appendix
Slide 23: Q3 2024 Financial Update
22 Q3 2024 Financial Update THREE MONTHS ENDED SEPTEMBER 30 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) 30.0 38.5 (8.6) (22%) EBITDA $31.6 $18.1 $13.4 74% Depreciation and Amortization 25.5 26
Slide 24: Q3 & YTD 2024 Adjusted EBITDA Reconciliation
23 Q3 & YTD 2024 Adjusted EBITDA Reconciliation Q3 Q3 YTD YTD 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
Slide 25: Full Year 2023 Adjusted EBITDA Reconciliation
24 Full Year 2023 Adjusted EBITDA Reconciliation 1) For the years ended December 31, 2023 and 2022, reflects amortization of client relationships, non-compete $MM FY 2023 FY 2022 agreement, software, and channel relationship intangibles acquired through the business combination with Thunder Bridge,
Slide 26: Quarterly Adjusted Net Income Reconciliation
25 Quarterly Adjusted Net Income Reconciliation 1) Reflects amortization of client relationships, non-compete agreement, software, and channel relationship ($MM) Q3 2024 Q3 2023 intangibles acquired through the business combination with Thunder Bridge, and client relationships, non- compete agreemen
Slide 27: Free Cash Flow Reconciliation
26 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 2021 2022 2023 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 $53.3 $74.2 $103.6 Operating Activities Capital expenditures Ca
Slide 28: Depreciation and Amortization Detail
27 Depreciation and Amortization Detail $MM Q3 2024 Q3 2023 Acquisition-related intangibles $19.1 $19.8 Software 6.0 6.4 Amortization $25.1 $26.2 Depreciation 0.4 0.3 Total Depreciation and Amortization $25.5 $26.5 Note Adjusted Net Income is adjusted to exclude amortization of all acquisition-relat
Slide 29: Revenue and Gross Profit Growth Reconciliations
28 Revenue and Gross Profit Growth Reconciliations Q3 2024 Consumer Business Total $MM Payments Payments Company Revenue Growth 1% 58% 6% Acquisitions / (Divestitures) impact n/a n/a n/a Organic Revenue Growth 1% 58% 6% Political Media contribution / (impact) n/a 55% 7% Organic Revenue Growth, excl.
Slide 30: Gross Profit Growth Reconciliation
29 Gross Profit Growth Reconciliation 2023 2024 $MM Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 YTD Gross Profit Growth 11% 8% 3% 2% 6% 9% 7% 9% 8% Acquisitions / (2%) (4%) (6%) (6%) (4%) (2%) n/a n/a (1%) (Divestitures) impact Organic Gross 13% 12% 9% 8% 10% 11% 7% 9% 9% Profit Growth Political Media (<1%) (2%) (3%) (
Slide 31: Historical Segment Details
30 Historical Segment Details 2022 2023 2024 Full Year $MM Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 Consumer Payments $61.1 $59.8 $63.0 $64.3 $69.9 $65.9 $68.7 $71.1 $76.1 $69.3 $69.2 $248.2 $275.7 Business Payments 8.9 9.9 11.4 12.3 8.7 9.8 9.7 9.9 9.7 10.6 15.3 42.6 38.1 Intercompany elimination