Slide 1: Verra Mobility Q1 2023 Earnings Presentation
Earnings Overview Verra Mobility Q1 2023 Earnings Presentation For the Quarter Ended March 31, 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: Key Highlights and Strategic Priorities
Key Highlights and Strategic Priorities David Roberts President and CEO
Slide 4: Outstanding Q1, Highlighted by Strong Revenue, Adj. EBITDA and Free Cash Flow
Outstanding Q1, Highlighted by Strong Revenue, Adj. EBITDA and Free Cash Flow Q1 Business Highlights Q1 2023 Financial Highlights • Strong first quarter top-line performance across all business segments • Commercial Services: 17% Y-o-Y growth driven by strong travel demand (TSA at 100% of Total Reve
Slide 5: Summary Update: 2023 Strategic Priorities
Summary Update: 2023 Strategic Priorities 1 Renew Enterprise tolls and violations management services agreement On track Commercial Services 2 Continue adjacent expansion opportunities: Fleet Management expansion and European growth FMC growth of 13% YoY 3 Lay the foundation to capitalize on next ge
Slide 6: Financial Discussion
Financial Discussion Craig Conti CFO
Slide 7: Strong top-line, profitability and Free Cash Flow generation
Strong top-line, profitability and Free Cash Flow generation Consolidated – Q1 Results Total Revenue ($M) Service Revenue ($M) Core U.S. GS Product $192 Total $170 +13% $3 $192 $185 Ex U.S. +15% $167 GS Product +15% $161 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Adjusted EBITDA ($M)1 Free Cash Flow ($M) Core
Slide 8: Core Businesses Drive Strong Free Cash Flow Conversion and Strong Growth
Core Businesses Drive Strong Free Cash Flow Conversion and Strong Growth Total Revenue ($M) Adjusted EBITDA & Margins ($M) Adj EBITDA 46% Total Revenue CAGR 12% CAGR 18% 49% 54% $763 $351 46% $551 $271 $449 $241 $394 $182 2019 2020 2021 Q1 2023 TTM 2019 2020 2021 Q1 2023 TTM Free Cash Flow % Adj. EB
Slide 9: Robust travel demand driving strong performance
Robust travel demand driving strong performance Commercial Services – Q1 Results Total Revenue & YoY Growth Adjusted EBITDA & YoY Growth $54 $86 $73 +17% $47 +15% Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 – Key Highlights • RAC tolling revenue up 18% over Q1 2022 due to increased travel volume and adoption
Slide 10: Revenue growth fueled by transition to recurring service revenue
Revenue growth fueled by transition to recurring service revenue Government Services – Q1 Results Total Revenue & YoY Growth Adjusted EBITDA & YoY Growth 1 Service Revenue Product Revenue Core U.S. GS Product Total Rev $86 Total Adj. $31 $79 9% $3 EBITDA $6 $25 23% $1 Srvc Rev +14% $83 Ex U.S. $31 $
Slide 11: Revenue growth driven by acceleration of SaaS and Services
Revenue growth driven by acceleration of SaaS and Services T2 Systems – Q1 Results Total Revenue & YoY Growth Adjusted EBITDA & YoY Growth SaaS & Service Revenue Product Revenue Total Rev $20 $18 12% $5 $4 Srvc Rev $16 $14 +10% $3 (11%) $3 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 – Key Highlights • SaaS &
Slide 12: Strong Adjusted EPS and De-levering performance
Strong Adjusted EPS and De-levering performance Adjusted EPS Net Debt & Leverage $1,152 $1,157 $1,187 $1,131 $1,107 3.8x $0.27 $0.27 $0.25 $0.26 $0.22 3.5x 3.5x 3.3x 3.2x Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Consistent earnings power and continued de-leveri
Slide 13: Reaffirming 2023 Financial Outlook
Reaffirming 2023 Financial Outlook 2023 Guidance In millions, except per share data & net leverage Commentary Total Revenue growth of 5% to 7% as CS … HSD growth reported; ~6% to 8% in constant Fx 1 T2 … HSD growth Total Revenue $780 - $800 CS driven by strong travel demand GS … LSD growth (GS … MSD
Slide 14: Appendix
Appendix 14
Slide 15: Verra Mobility Quarterly Results
Verra Mobility Quarterly Results 2020 - 2023 Unaudited ($ in millions) Full Year 2020 Full Year 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Full Year 2022 Q1 2023 Service revenue $336.3 $492.8 $161.1 $174.5 $180.6 $179.0 $695.2 $184.7 Product sales 57.3 57.7 9.3 13.0 17.0 7.1 46.4 7.2 Total revenue $393.6
Slide 16: Verra Mobility Quarterly Results – Segment Results of Operations
Verra Mobility Quarterly Results Segment Results of Operations Commercial Services Unaudited ($ in millions) Full Year Full Year Full Year Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 2020 2021 2022 Total Revenue Commercial Services $180.9 $260.9 $73.5 $84.9 $86.1 $81.6 $326.0 $85.6 Segment Adj EBITDA Co
Slide 17: Verra Mobility Adj. Net Income and Adj. Diluted EPS Reconciliations
Verra Mobility Adj. Net Income and Adj. Diluted EPS Reconciliations (in $MM, except per share data) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Net Income $ 10.0 $ 29.6 $ 24.6 $ 28.2 $4.6 Amortization of intangibles 27.3 27.2 26.6 25.1 22.0 Transaction and other related expenses 0.2 0.3 3.0 (0.1) 0.3 Tr
Slide 18: Thank You
Thank You http://ir.verramobility.com/