Repay Holdings Corporation · NASDAQ:RPAY
Repay — Q1 2023 Earnings Presentation
34 slides from Repay's earnings presentation, May 10, 2023
Slide 1: Q1 2023 Earnings Supplement
Exhibit 99.2 Q1 2023 Earnings Supplement May 2023
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: We remain positioned for another year of profitable growth in 2023
3 We remain positioned for another year of profitable growth in 2023 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: First Quarter 2023 Financial Highlights
4 First Quarter 2023 Financial Highlights REPAY’s Unique Model Translates Into a Highly Attractive Financial Profile CARD PAYMENT REVENUE GROSS PROFIT(1) ADJUSTED EBITDA(3) VOLUME $6.6Bn $74.5MM $56.6MM $31.2MM (+3%) (+10%) (+11%) (+6%) (+4% organic)(2) (+12% organic)(2) (+13% organic)(2) (Represent
Slide 6: Financial Update – Q1 2023 ($MM)
5 Financial Update – Q1 2023 ($MM) Card Payment Volume Gross Profit Adjusted EBITDA 4% y/y 13% y/y Organic 3% Organic 11% 6% $56.6 $6,581 $31.2 $6,414 $51.0 $29.3 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Take Rate (1) % Margin (2) % Margin (3) 1.05% 1.13% 75% 76% 43% 42% 1) Take rate represen
Slide 7: Growth by Segment - Q1 2023 ($MM)
6 Growth by Segment - Q1 2023 ($MM) Take Rate Gross Profit Margin 1.05% 1.13% 75.5% 75.9% ~20% 10% y/y growth 13% y/y Organic Percentage of $75 Card Payment ~80% 11% y/y ($4) growth $68 $9 Volume(1) ($2) $57 $9 ($4) $51 ($2) $6 $6 Total Consumer Business Total Company $70 $61 Payments Payments Compa
Slide 8: Q1 2023 Gross Profit Bridge ($MM)
7 Q1 2023 Gross Profit Bridge ($MM) New GP Dollars $56.6 Q1 2023 Divestiture Political $51.0 impact media Gross Profit growth 11% impact Divestiture impact (2%) Organic Gross Profit Growth (1) 13% Political media impact (<1%) Normalized Organic GP Growth (2) 13% Q1 Q1 2022A 2023A 1) Organic gross pr
Slide 9: Consumer Payments Results – Q1 2023 ($MM)
8 Consumer Payments Results – Q1 2023 ($MM) Take Rate Gross Profit Margin Key Business Highlights 1.15% 1.27% 77.8% 78.1% 15% y/y • Continued strength across personal growth 17% y/y Organic loans, auto loans, credit unions, $69.9 15% y/y mortgage servicing, and RCS growth $61.1 • Winning large enter
Slide 10: Business Payments Results – Q1 2023 ($MM)
9 Business Payments Results – Q1 2023 ($MM) Take Rate Gross Profit Margin Key Business Highlights 0.79% 0.82% 66.5% 69.5% (2%) y/y • Strong sales pipeline building within decline ~4% y/y growth, healthcare, property management, and excl. political media (1) municipality verticals $8.9 $8.7 2% y/y gr
Slide 11: Strong Liquidity Position as of March 31, 2023
10 Strong Liquidity Position as of March 31, 2023 Liquidity Leverage Cash on Hand $92 MM Total Debt $440 MM Revolver Capacity $185 MM Cash on Hand $92 MM Net Debt $348 MM Total Liquidity $277 MM PF Net Leverage(1) 2.8x Focused on Maintaining Significant Liquidity Committed to Prudently Managing Leve
Slide 12: FY 2023 Outlook
11 FY 2023 Outlook REPAY reiterates its previously provided guidance for full year 2023 CARD PAYMENT REVENUE GROSS PROFIT ADJUSTED VOLUME EBITDA $26.0 – $27.2Bn $272 – $288MM $216 – $228MM $122 – $130MM 5% - 11% ~45% margins Organic GP Growth 8% - 14% Normalized Organic GP Growth (1) Note: REPAY doe
Slide 13: FY 2023 Gross Profit Outlook Bridge ($MM)
12 FY 2023 Gross Profit Outlook Bridge ($MM) FY 2023 Gross Profit Growth Guidance 1% - 6% New (1) Organic GP Growth 5% - 11% Customer Growth (3) $216 – $228 Normalized Organic GP Growth(2) 8% - 14% Existing Blue Cow Customer $214 divestiture Growth (3) Political media impact 2022A 2023E Reported 1)
Slide 14: History of Sustained Growth Across All Key Metrics…
13 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 $71.6 $72.7 $74.5 $67.6 $67.4 $5.6 $5.6 $61.1 $62.2 $4.6 $4.6 $47.5 $48.4 $3.9 $4.0 $3.6 $3.8 $39.5 $36.5 $37.6 $41.4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 15: …With Expanding Take Rates and Gross Profit Margins
14 …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 Gross Profit Margin 80% 75% 70% 65% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 202
Slide 16: Strategy & Business Updates
15 2 Strategy & Business Updates
Slide 17: Multiple Levers to Continue to Drive Growth
16 With Our Q1 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 Q1 2023 EXECUTE ON BROADENING ADDRESSABLE Organic GP EXISTING BUSINESS MARKET AND SOLUTI
Slide 18: Executing on Growth Plan
17 Executing on Growth Plan BROADEN ADDRESSABLE EXPANDING EXISTING BUSINESS MARKET AND SOLUTIONS 248 SOFTWARE PARTNER ADDED NEW CUSTOMERS VIA DIRECT Expanded TAM to ~$5.2 trillion(2) RELATIONSHIPS(1), INCLUDING: SALESFORCE ACROSS ALL VERTICALS through strategic M&A B2B CROSS BORDER Partnered with Ve
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 ~$22.1Bn ~19,400 154 TOTAL VERTICAL ANNUALIZED CLIENTS ISV ADDRESSABLE END MARKETS CARD PAYMENT INTEGRATION MARKET(1) VOLUME(2) PARTNERS • REPAY’s integrat
Slide 20: Consumer Payments Offering Omnichannel Capabilities across Modalities
19 Consumer Payments Offering Omnichannel Capabilities across Modalities Customers 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 Tex
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+ ~$4.2Bn ~4,100 ~174K 94 TOTAL VERTICAL ANNUALIZED CLIENTS SUPPLIER B2B INTEGRATED ADDRESSABLE END MARKETS CARD PAYMENT NETWORK SOFTWARE MARKET(1) VOLUME(2
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 2023 Financial Update
23 Q1 2023 Financial Update THREE MONTHS ENDED MARCH 31 CHANGE $MM 2023 2022 AMOUNT % Card Payment Volume $6,581.4 $6,414.0 $167.4 3% Revenue $74.5 $67.6 $7.0 10% Costs of Services 18.0 16.6 1.4 8% Gross Profit $56.6 $51.0 $5.6 11% SG&A(1) 52.8 4.7 48.2 NM EBITDA $3.7 $46.3 ($42.6) 92% Depreciation
Slide 25: Adjusted EBITDA Reconciliation
24 Adjusted EBITDA Reconciliation 1) For the three months ended March 31, 2023 and 2022, reflects amortization of client relationships, non- $MM Q1 2023 Q1 2022 compete agreement, software, and channel relationship intangibles acquired through the business combination with Thunder Bridge, and client
Slide 26: Adjusted Net Income Reconciliation
25 Adjusted Net Income Reconciliation 1) For the three months ended March 31, 2023 and 2022, reflects amortization of client relationships, non- ($MM) Q1 2023 Q1 2022 compete agreement, software, and channel relationship intangibles acquired through the business combination with Thunder Bridge, and
Slide 27: Adjusted Free Cash Flow Reconciliation
26 Adjusted Free Cash Flow Reconciliation 1) Primarily consists of (i) during the three months ended March 31, 2023, professional service fees and other $MM Q1 2023 Q1 2022 costs incurred in connection with the disposition of Blue Cow Software, and (ii) during the three months March 31, 2022, profes
Slide 28: Depreciation and Amortization Detail
27 Depreciation and Amortization Detail $MM Q1 2023 Q1 2022 Acquisition-related intangibles $19.9 $23.1 Software 5.5 4.9 Amortization $25.4 $28.1 Depreciation 0.7 0.5 Total Depreciation and Amortization $26.1 $28.6 Note: Adjusted Net Income is adjusted to exclude amortization of all acquisition-rela
Slide 29: Organic Card Payment Volume Growth Reconciliation
28 Organic Card Payment Volume Growth Reconciliation 2023 $MM Q1 Card Payment Volume Growth 3% Growth from Acquisitions / (Divestitures) (1%) Organic Card Payment Volume Growth((1) 4% 1) Organic growth is a non-GAAP financial measure and See slide 1 under “Non-GAAP Financial Measures.” Organic CPV g
Slide 30: Revenue Growth Reconciliations
29 Revenue Growth Reconciliations 2023 $MM Q1 Revenue Growth 10% Growth from Acquisitions / (Divestitures) (2%) Organic Revenue Growth((1) 12% 2023 $MM Q1 Revenue Growth 10% Growth from Political Media (<1%) Revenue Growth excl. Political Media (2) 11% 1) Organic growth is a non-GAAP financial measu
Slide 31: Organic Gross Profit Growth Reconciliation
30 Organic Gross Profit Growth Reconciliation 2022 Full Year 2023 $MM Q1 Q2 Q3 Q4 2022 Q1 Gross Profit Growth 46% 42% 20% 22% 31% 11% Growth from 41% 32% 5% 5% 19% (2%) Acquisitions/(Divestitures) Organic Gross 5% 10% 15% 17% 12% 13% Profit Growth (1) Growth from 1% 3% (<1%) political media Organic
Slide 32: Organic Gross Profit Segment Growth Reconciliation
31 Organic Gross Profit Segment Growth Reconciliation 2023 $MM Q1 Consumer Payments Gross Profit Growth 15% Growth from Acquisitions / (Divestitures) (2%) Consumer Payments Organic Gross Profit Growth((1) 17% 2023 $MM Q1 Business Payments Gross Profit Growth 2% Growth from Acquisitions / (Divestitur
Slide 33: Gross Profit Growth Excluding Political Media Reconciliation
32 Gross Profit Growth Excluding Political Media Reconciliation 2023 $MM Q1 Total Company Gross Profit Growth 11% Growth from Political Media (<1%) Total Company excl. Political Media Gross Profit Growth (1) 11% 2023 $MM Q1 Business Payments Gross Profit Growth 2% Growth from Political Media (2%) Bu
Slide 34: Historical Segment Details
33 Historical Segment Details 2021 2022 2023 Full Year $MM Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2021 2022 Consumer Payments $3,694.1 $3,523.4 $4,426.7 $4,465.7 $5,290.5 $4,918.6 $4,937.8 $5,009.5 $5,524.8 $16,109.9 $20,156.5 Business Payments 919.9 1,100.1 1,156.4 1,177.4 1,123.4 1,277.7 1,479.0 1,602.3 1,056