Repay Holdings Corporation · NASDAQ:RPAY
Repay — Q4 2023 Earnings Presentation
35 slides from Repay's earnings presentation, Feb 29, 2024
Slide 1: Q4 2023 Earnings Supplement
Exhibit 99.2 Q4 2023 Earnings Supplement February 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 – Q4 2023 ($MM)
4 Financial Update – Q4 2023 ($MM) Revenue Gross Profit Adjusted EBITDA (2) 14% y/y organic growth, 13% y/y organic growth, excl. political media (1) excl. political media (1) $76.0 $35.9 $57.8 $58.7 $33.5 (3) $72.7 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Take Rate (4) % Margin (5) % Margin
Slide 6: Growth by Segment – Q4 2023 ($MM)
5 Growth by Segment – Q4 2023 ($MM) Take Rate Gross Profit Margin 1.10% 1.18% 79.5% 77.3% 14% y/y organic, excl. political media (1) 13% y/y organic, excl. political media (1) Organic GP growth, $76 excl. political media (1) $73 ($4) ($5) Consumer Payments 13% $10 $59 $12 $58 ($5) ($4) Business Paym
Slide 7: FY 2023 Financial Highlights
6 FY 2023 Financial Highlights REPAY’s Unique Model Translates Into a Highly Attractive Financial Profile CARD PAYMENT REVENUE GROSS PROFIT(1) ADJUSTED EBITDA(3) VOLUME $25.7bn $296.6MM $226.9MM $126.8MM (+6% organic, (+12% organic, (+13% organic, 43% margin excl. political media)(2) excl. political
Slide 8: FY 2023 Gross Profit Bridge ($MM)
7 FY 2023 Gross Profit Bridge ($MM) New GP Dollars $226.9 Divestiture $214.4 impact FY 2023 Political media Gross Profit growth 6% impact Divestiture impact (4%) Organic Gross Profit Growth (1) 10% Political media impact (3%) Normalized Organic GP Growth (2) 13% 2022A 2023A 1) Organic gross profit (
Slide 9: Consumer Payments Results – FY 2023 ($MM)
8 Consumer Payments Results – FY 2023 ($MM) Take Rate Gross Profit Margin Key Business Highlights 1.23% 1.29% 78.8% 78.4% 15% y/y organic growth (1) • Strength across personal loans, credit (11% y/y growth, unions, and mortgage servicing as reported) $275.7 16% y/y organic growth (1) $248.2 (11% y/y
Slide 10: Business Payments Results – FY 2023 ($MM)
9 Business Payments Results – FY 2023 ($MM) Take Rate Gross Profit Margin Key Business Highlights 0.78% 0.90% 71.4% 73.5% • Strong sales pipeline within healthcare, property management, auto, and 3% y/y growth, excl. political media (1) municipality verticals via direct sales and $42.6 (-11% y/y gro
Slide 11: Strong Liquidity Position as of December 31, 2023
10 Strong Liquidity Position as of December 31, 2023 Liquidity Leverage Cash on Hand $118 MM Total Debt $440 MM Revolver Capacity $185 MM Cash on Hand $118 MM Net Debt $322 MM Total Liquidity $303 MM Net Leverage(1) 2.6x Focused on Maintaining Significant Liquidity Committed to Prudently Managing Le
Slide 12: FY 2024 Outlook
11 FY 2024 Outlook REPAY expects the following financial results for full year 2024 REVENUE GROSS PROFIT ADJUSTED FREE CASH FLOW EBITDA CONVERSION (1) $314 – $320MM $245 – $250MM $139 – $142MM ~60% ~78% Margins ~44% Margins Note: REPAY does not provide quantitative reconciliation of forward-looking,
Slide 13: FY 2024 Gross Profit Outlook Bridge
12 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 2/29/2024
Slide 14: FY 2024 Outlook Bridge
13 FY 2024 Outlook Bridge Gross Profit & Adjusted EBITDA Free Cash Flow Conversion (1) (In $ Millions) Adjusted EBITDA to grow ~ 60% faster than Gross Profit… … combined with Capex reduction, $245 - $250 FCF Conversion to accelerate $227 42% $139 - $142 $127 2023A 2024E 2023A 2024E 2023A 2024E Gross
Slide 15: History of Sustained Growth Across All Key Metrics…
14 History of Sustained Growth Across All Key Metrics… Card Payment Volume Revenue (1) (In $ Billions) (In $ Millions) $6.4 $6.2 $6.4 $6.6 $6.6 $6.3 $6.4 $6.4 $74.5 $71.8 $74.3$76.0 $71.6 $72.7 $5.6 $5.6 $67.6$67.4 $61.1 $62.2 $4.6 $4.6 $3.9 $3.6 $3.8 $4.0 $47.5$48.4 $39.5 $36.5 $37.6 $41.4 Q1 Q2 Q3
Slide 16: …With Expanding Take Rates and Gross Profit Margins
15 …With Expanding Take Rates and Gross Profit Margins Take Rate 1.2% 1.1% 1.0% 0.9% 0.8% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Gross Profit Margin 80% 75% 70% 65% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 202
Slide 17: Strategy & Business Updates
16 2 Strategy & Business Updates
Slide 18: Multiple Levers to Continue to Drive Growth
17 With Our Q4 2023 Performance We See Multiple Levers to Continue to Drive Growth 13% REPAY’s leading platform & attractive market opportunity position it to build on its record of robust growth & profitability Q4 2023 EXECUTE ON BROADENING ADDRESSABLE Normalized Organic EXISTING BUSINESS MARKET AN
Slide 19: Executing on Growth Plan
18 Executing on Growth Plan BROADEN ADDRESSABLE EXPANDING EXISTING BUSINESS MARKET AND SOLUTIONS 262 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 Q4 2023 with
Slide 20: Ample Runway in Consumer Payments
19 Ample Runway in Consumer Payments Evolving consumer preferences and technology are requiring clients to embrace payment digitization $1.8Tn 6 165 TOTAL VERTICAL ISV ADDRESSABLE END MARKETS INTEGRATION MARKET(1) PARTNERS • REPAY’s integrated payment processing platform automates and modernizes our
Slide 21: Consumer Payments Offering Omnichannel Capabilities across Modalities
20 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 22: REPAY's Growing Business Payments Segment
21 REPAY’s Growing Business Payments Segment Combined AR and AP automation solution provides a compelling value proposition to clients $3.4Tn 15+ 97 ~261,000 TOTAL VERTICAL B2B INTEGRATED SUPPLIER ADDRESSABLE END MARKETS SOFTWARE NETWORK MARKET(1) PARTNERS B2B Merchant Acquiring B2B AP Automation •
Slide 23: Powerful Business Payments Offering
22 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 24: Appendix
23 3 Appendix
Slide 25: Q4 2023 Financial Update
24 Q4 2023 Financial Update THREE MONTHS ENDED DECEMBER 31 CHANGE $MM 2023 2022 AMOUNT % Card Payment Volume $6,421.0 $6,611.8 ($190.9) (3%) Revenue $76.0 $72.7 $3.3 5% Costs of Services 17.3 14.9 2.4 16% Gross Profit $58.7 $57.8 $0.9 2% SG&A(1) 115.5 39.8 75.7 NM EBITDA ($56.8) $18.0 ($74.8) NM Dep
Slide 26: Adjusted EBITDA Reconciliation
25 Adjusted EBITDA Reconciliation 1) For the three months ended December 31, 2023 and 2022, reflects amortization of client relationships, non- $MM Q4 2023 Q4 2022 compete agreement, software, and channel relationship intangibles acquired through the business combination with Thunder Bridge, and cli
Slide 27: Adjusted Full Year EBITDA Reconciliation
26 Adjusted Full Year EBITDA Reconciliation 1) For the years ended December 31, 2023 and 2022, reflects amortization of client relationships, non-compete $MM FY 2023 FY 2022 agreement, software, and channel relationship intangibles acquired through the business combination with Thunder Bridge, and c
Slide 28: Adjusted Net Income Reconciliation
27 Adjusted Net Income Reconciliation 1) For the three months ended December 31, 2023 and 2022, reflects amortization of client relationships, non- ($MM) Q4 2023 Q4 2022 compete agreement, software, and channel relationship intangibles acquired through the business combination with Thunder Bridge, a
Slide 29: Free Cash Flow Reconciliation
28 Free Cash Flow Reconciliation 1) Primarily consists of (i) during the three months ended December 31, 2023, professional service fees and $MM Q4 2023 Q4 2022 other costs incurred in connection with the disposition of Blue Cow Software, and (ii) during the three months ended December 31, 2022, pro
Slide 30: Depreciation and Amortization Detail
29 Depreciation and Amortization Detail $MM Q4 2023 Q4 2022 Acquisition-related intangibles $21.0 $19.5 Software 3.2 5.1 Amortization $24.1 $24.6 Depreciation 0.6 0.7 Total Depreciation and Amortization $24.7 $25.3 Note Adjusted Net Income is adjusted to exclude amortization of all acquisition-relat
Slide 31: Card Payment Volume Growth Reconciliation
30 Card Payment Volume Growth Reconciliation 2023 Full Year $MM Q1 Q2 Q3 Q4 2023 Card Payment Volume Growth 3% 1% (0%) (3%) 0% Acquisitions / (Divestitures) impact (1%) (2%) (2%) (3%) (2%) Organic Card Payment Volume Growth 4% 3% 2% 0% 2% Political media impact (0%) (2%) (5%) (8%) (4%) Normalized Or
Slide 32: Revenue and Gross Profit Growth Reconciliations
31 Revenue and Gross Profit Growth Reconciliations FY 2023 Consumer Business Total $MM Payments Payments Company Revenue Growth 11% (11%) 6% Acquisitions / (Divestitures) impact (4%) n/a (4%) Organic Revenue Growth 15% (11%) 10% Political Media impact n/a (14%) (2%) Organic Revenue Growth, excl. pol
Slide 33: Q4 Revenue and Gross Profit Growth Reconciliations
32 Q4 Revenue and Gross Profit Growth Reconciliations Q4 2023 Consumer Business Total $MM Payments Payments Company Revenue Growth 11% (20%) 5% Acquisitions / (Divestitures) impact (6%) n/a (5%) Organic Revenue Growth 17% (20%) 10% Political Media impact n/a (24%) (4%) Organic Revenue Growth, excl.
Slide 34: Gross Profit Growth Reconciliation
33 Gross Profit Growth Reconciliation 2022 2023 $MM Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Gross Profit Growth 46% 42% 20% 22% 31% 11% 8% 3% 2% 6% Acquisitions / (Divestitures) 41% 32% 5% 5% 19% (2%) (4%) (6%) (6%) (4%) impact Organic Gross 12% 13% 12% 9% 8% 10% Profit Growth Political Media impact 3% (<1%)
Slide 35: Historical Segment Details
34 Historical Segment Details 2022 2023 Full Year $MM Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023 Consumer Payments $5,290.5 $4,918.6 $4,937.8 $5,009.5 $5,534.7 $5,184.4 $5,338.3 $5,361.7 $20,156.5 $21,419.0 Business Payments 1,123.4 1,277.7 1,479.0 1,602.3 1,056.6 1,069.9 1,063.1 1,059.3 5,482.4 4,248.9 Card