Repay Holdings Corporation · NASDAQ:RPAY
Repay — Q1 2024 Earnings Presentation
32 slides from Repay's earnings presentation, May 9, 2024
Slide 1: Q1 2024 Earnings Supplement
Exhibit 99.2 Q1 2024 Earnings Supplement May 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 – Q1 2024 ($MM)
4 Financial Update – Q1 2024 ($MM) Revenue Gross Profit Adjusted EBITDA (3) Free Cash Flow (4) 10% y/y organic growth(1) 11% y/y organic growth (1) 15% y/y growth 93% y/y growth $13.7 $61.5 $35.5 $80.7 $74.5 $56.6 $30.9 $7.1 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 % Margin (2
Slide 6: Growth by Segment – Q1 2024 ($MM)
5 Growth by Segment – Q1 2024 ($MM) Gross Profit Margin 75.9% 76.2% 10% y/y organic growth(1) 11% y/y organic growth (1) $81 Organic GP growth (1) $75 ($5) ($4) $10 $62 Consumer Payments 11% $9 ($5) $57 ($4) Business Payments 17% $7 $6 $76 Total Company (2) 11% $70 $60 $55 Q1 2023 Q1 2024 Q1 2023 Q1
Slide 7: Q1 2024 Gross Profit Bridge ($MM)
6 Q1 2024 Gross Profit Bridge ($MM) New GP Dollars $61.5 Divestiture Q1 2024 $56.6 impact Gross Profit growth 9% Divestiture impact (2%) Organic Gross Profit Growth (1) 11% Q1 2023 Q1 2024 1) Organic gross profit (or GP) growth is a non-GAAP financial measure. See slide 1 under “Non-GAAP Financial M
Slide 8: Consumer Payments Results – Q1 2024 ($MM)
7 Consumer Payments Results – Q1 2024 ($MM) Gross Profit Margin Key Business Highlights 11% y/y organic growth (1) 78.1% 78.3% (9% y/y growth, • Strength across auto loans, personal loans, as reported) credit unions, and mortgage servicing $76.1 11% y/y organic growth (1) • Winning large enterprise
Slide 9: Business Payments Results – Q1 2024 ($MM)
8 Business Payments Results – Q1 2024 ($MM) Gross Profit Margin Key Business Highlights 69.5% 72.8% 12% y/y growth • Strong sales pipeline within healthcare, $9.7 property management, auto, and $8.7 municipality verticals via direct sales 17% y/y growth and new / refreshed integrations $7.0 • Increa
Slide 10: Strong Liquidity Position as of March 31, 2024
9 Strong Liquidity Position as of March 31, 2024 Liquidity Leverage Cash on Hand $128 MM Total Debt $440 MM Revolver Capacity $185 MM Cash on Hand $128 MM Net Debt $312 MM Total Liquidity $313 MM Net Leverage(1) 2.4x Focused on Maintaining Significant Liquidity Committed to Prudently Managing Levera
Slide 11: FY 2024 Outlook
10 FY 2024 Outlook REPAY reiterates it previously provided outlook 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-lookin
Slide 12: FY 2024 Gross Profit Outlook Bridge
11 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 5/9/2024
Slide 13: FY 2024 Outlook Bridge
12 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 14: History of Sustained Growth Across All Key Metrics
13 History of Sustained Growth Across All Key Metrics… Revenue (1) Gross Profit (1) (In $ Millions) (In $ Millions) $80.7 $61.5 $74.5 $74.3 $76.0 $57.8 $58.7 $72.7 $71.8 $56.6 $54.9 $56.7 $71.6 $54.9 $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 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 15: With Expanding Gross Profit Margins and FCF Conversion
14 …With Expanding Gross Profit Margins and 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 FCF Conversion (1) 75% 60% 45% 30% 15% 0% Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022
Slide 16: Strategy & Business Updates
15 2 Strategy & Business Updates
Slide 17: Multiple Levers to Continue to Drive Growth
16 With Our Q1 2024 Performance We See Multiple Levers to Continue to Drive Growth 11% REPAY’s leading platform & attractive market opportunity position it to build on its record of robust growth & profitability Q1 2024 EXECUTE ON BROADENING ADDRESSABLE Organic GP Growth EXISTING BUSINESS MARKET AND
Slide 18: Executing on Growth Plan
17 Executing on Growth Plan BROADEN ADDRESSABLE EXPANDING EXISTING BUSINESS MARKET AND SOLUTIONS 266 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 Q1 2024 with
Slide 19: Ample Runway in Consumer Payments
18 Ample Runway in Consumer Payments Evolving consumer preferences and technology are requiring clients to embrace payment digitization $1.8Tn 6 172 TOTAL VERTICAL ISV ADDRESSABLE END MARKETS INTEGRATION MARKET(1) PARTNERS(2) • REPAY’s integrated payment processing platform automates and modernizes
Slide 20: Consumer Payments Offering Omnichannel Capabilities across Modalities
19 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 21: REPAY's Growing Business Payments Segment
20 REPAY’s Growing Business Payments Segment Combined AR and AP automation solution provides a compelling value proposition to clients $3.4Tn 15+ 94 ~279,000 TOTAL VERTICAL B2B INTEGRATED SUPPLIER ADDRESSABLE END MARKETS SOFTWARE NETWORK MARKET(1) PARTNERS(2) B2B Merchant Acquiring B2B AP Automation
Slide 22: Powerful Business Payments Offering
21 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 23: Appendix
22 3 Appendix
Slide 24: Q1 2024 Financial Update
23 Q1 2024 Financial Update THREE MONTHS ENDED MARCH 31 CHANGE $MM 2024 2023 AMOUNT % Revenue $80.7 $74.5 $6.2 8% Costs of Services 19.2 18.0 1.2 7% Gross Profit $61.5 $56.6 $5.0 9% Operating Expenses(1) 40.0 53.1 (13.1) (25%) EBITDA $21.6 $3.5 $18.1 NM Depreciation and Amortization 27.0 26.1 0.9 3%
Slide 25: Quarterly Adjusted EBITDA Reconciliation
24 Quarterly Adjusted EBITDA Reconciliation 1) For the three months ended March 31, 2024 and 2023, reflects amortization of client relationships, non- $MM Q1 2024 Q1 2023 compete agreement, software, and channel relationship intangibles acquired through the business combination with Thunder Bridge,
Slide 26: Full Year Adjusted EBITDA Reconciliation
25 Full Year Adjusted EBITDA Reconciliation 1) For the years ended December 31, 2023 and 2022, reflects amortization of client relationships, non-compete $MM FY 2023 FY 2022 agreement, software, and channel relationship intangibles acquired through the business combination with Thunder Bridge, and c
Slide 27: Quarterly Adjusted Net Income Reconciliation
26 Quarterly Adjusted Net Income Reconciliation 1) For the three months ended March 31, 2024 and 2023, reflects amortization of client relationships, non- ($MM) Q1 2024 Q1 2023 compete agreement, software, and channel relationship intangibles acquired through the business combination with Thunder Br
Slide 28: Free Cash Flow Reconciliation
27 Free Cash Flow Reconciliation 2021 2022 2023 2024 Full Year $MM Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 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 $53.3 $74.2 $103.6 Operating Activities Capital expenditures Cash paid for proper
Slide 29: Depreciation and Amortization Detail
28 Depreciation and Amortization Detail $MM Q1 2024 Q1 2023 Acquisition-related intangibles $19.7 $19.9 Software 6.7 5.5 Amortization $26.4 $25.4 Depreciation 0.6 0.7 Total Depreciation and Amortization $27.0 $26.1 Note Adjusted Net Income is adjusted to exclude amortization of all acquisition-relat
Slide 30: Revenue and Gross Profit Growth Reconciliations
29 Revenue and Gross Profit Growth Reconciliations Q1 2024 Consumer Business Total $MM Payments Payments Company Revenue Growth 9% 12% 8% Acquisitions / (Divestitures) impact (2%) n/a (2%) Organic Revenue Growth 11% 12% 10% Political Media contribution / (impact) n/a 6% 1% Organic Revenue Growth, ex
Slide 31: Gross Profit Growth Reconciliation
30 Gross Profit Growth Reconciliation 2023 2024 $MM Q1 Q2 Q3 Q4 FY Q1 Gross Profit Growth 11% 8% 3% 2% 6% 9% Acquisitions / (Divestitures) (2%) (4%) (6%) (6%) (4%) (2%) impact Organic Gross 13% 12% 9% 8% 10% 11% Profit Growth Political Media (<1%) (2%) (3%) (5%) (3%) 1% contribution / (impact) Organ
Slide 32: Historical Segment Details
31 Historical Segment Details 2022 2023 2024 Full Year $MM Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2022 2023 Consumer Payments $61.1 $59.8 $63.0 $64.3 $69.9 $65.9 $68.7 $71.1 $76.1 $248.2 $275.7 Business Payments 8.9 9.9 11.4 12.3 8.7 9.8 9.7 9.9 9.7 42.6 38.1 Intercompany eliminations (2.4) (2.3) (2.9) (4.0) (4