Repay Holdings Corporation · NASDAQ:RPAY

Repay — Q4 2019 Earnings Presentation

21 slides from Repay's earnings presentation, March 2020

  1. Slide 1: REPAY Q4'19 / FY19 Earnings Supplement

    REPAY Q419/ FY19 Earnings Supplement March 2020 HIGHLY CONFIDENTIAL – DO NOT DISTRIBUTE

  2. Slide 2: Disclaimer

    Disclaimer On July 11, 2019 (the “Closing Date”), Thunder Bridge Acquisition Ltd. (“Thunder Bridge”) and Hawk Parent Holdings LLC (“Hawk Parent”) completed their previously announced business combination under which Thunder Bridge acquired Hawk Parent, upon which Thunder Bridge changed its name to R

  3. Slide 3: Section 1: Financial Update

    Section 1: Financial Update

  4. Slide 4: Financial Highlights

    Financial Highlights Q4 2019 FY 2019 Card Payment $3.4Bn $10.7Bn Volume (+72%) (+44%) Total Revenue(1) $49.3MM $165.8MM (+45%) (+28%) Gross Profit(2) $24.3MM $78.7MM (+ 67%) (+43%) Adj. EBITDA $14.7MM $48.4MM (+ 52%) (+32%) (Represents Y-o-Y Growth) 1) Excludes impact from adoption of ASC 606 for co

  5. Slide 5: Financial Update – Q4 2019

    Financial Update – Q4 2019 ($MM) Card Payment Volume Gross Profit (1) Adjusted EBITDA 3,422 67% $24.3 1,988 $14.5 52% $14.7 $9.7 Q4 2018 Q4 2019 Q4 2018 Q4 2019 Q4 2018 Q4 2019 % Margin (2) 68% 71% % Margin (2) 45% 43% 1) Gross Profit is defined as Total Revenue less Interchange and Network Fees and

  6. Slide 6: Financial Update – FY 2019

    Financial Update – FY 2019 ($MM) Card Payment Volume Gross Profit (1) Adjusted EBITDA $10,697 43% $78.7 $7,452 $55.0 32% $48.4 $36.8 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 % Margin (2) 67% 73% % Margin (2) 45% 45% 1) Gross Profit is defined as Total Revenue less Interchange and Network Fees

  7. Slide 7: ASC 606 Impact

    ASC 606 Impact Adoption of ASC 606 resulted in a decrease to revenue and cost of sales, but no impact to gross profit(1); this adoption does result in an increase to gross profit margins(2) Q4 2019 FY 2019 ASC 605 Adjustment ASC 606 ASC 605 Adjustment ASC 606 ($MM) Revenue Processing and service fee

  8. Slide 8: Section 2: Strategy & Outlook

    Section 2: Strategy & Outlook

  9. Slide 9: Executing on Growth Plan

    Executing on Growth Plan CONTINUE TO ADDRESS LARGE, UNDERSERVED LOAN REPAYMENT VERTICALS, SPECIFICALLY AUTO, AND INCREASE DEBIT PENETRATION WITH EXISTING CUSTOMERS ADDING NEW CUSTOMERS VIA DIRECT SALESFORCE ACROSS ALL VERTICALS INCREASED SOFTWARE PARTNER RELATIONSHIPS, ENDING 2019 WITH 70 ESTABLISHE

  10. Slide 10: Multiple Levers to Continue to Drive Growth

    Multiple Levers to Continue to Drive Growth Repay’s Leading Platform & Attractive Market Opportunity Position It To Build On Its Record Of Robust Growth & Profitability Strategic M&A Majority of growth Future Market derived from further Expansion penetration of existing Opportunities client base Ope

  11. Slide 11: FY 2020 Outlook

    FY 2020 Outlook FY 2020 Card Payment $15.5 – $16.0 billion Volume Total Revenue $155 – $165 million Gross Profit $115 – $120 million Adjusted EBITDA $66 – $70 million Note: Revenue information for the full year 2020 outlook is presented in accordance with Accounting Standards Codification (“ASC”) 60

  12. Slide 12: FY 2020 Gross Profit Outlook Bridge

    FY 2020 Gross Profit Outlook Bridge REPAY’s 2020 Gross Profit Outlook Represents ~50% Total Growth & ~20% Organic Growth ($MM) (2) $118 $24 $15 Growth from $79 Acquired Entities (+~30%) (1) Organic Growth (+~20%) 2019A 2020E 1) Includes full year contributions for TriSource and APS, and ~10.5 months

  13. Slide 13: Section 3: Appendix

    Section 3: Appendix

  14. Slide 14: Q4 2019 Financial Update

    Q4 2019 Financial Update Three Months Ended December 31, Change ($MM) 2019 2018 Amount % Card Payment Volume $3,422.1 $1,988.1 $1,433.9 72% Processing and Service Fees 34.2 21.4 12.8 60% Interchange and Network Fees 15.0 12.5 2.6 21% Total Revenue $49.3 $33.9 $15.4 45% Interchange and Network Fees 1

  15. Slide 15: FY 2019 Financial Update

    FY 2019 Financial Update Twelve months ended December 31, Change ($MM) 2019 2018 Amount % Card Payment Volume $10,696.7 $7,451.8 $3,244.9 44% Processing and Service Fees 108.2 82.2 26.0 32% Interchange and Network Fees 57.6 47.8 9.8 20% Total Revenue $165.8 $130.0 $35.8 28% Interchange and Network F

  16. Slide 16: Income Statement – Historical

    Income Statement – Historical ($MM) 2017A 2018A 2019A Card Payment Volume $5,248 $7,452 $10,697 YoY Growth 21% 42% 44% Processing and Service Fees $57.1 $82.2 $108.2 Interchange and Network Fees 36.9 47.8 57.6 Total Revenue $94.0 $130.0 $165.8 YoY Growth 14% 38% 28% Interchange and Network Fees 36.9

  17. Slide 17: Adjusted EBITDA Reconciliation – Historical

    Adjusted EBITDA Reconciliation – Historical Adjusted EBITDA Reconciliation ($MM) 2017A 2018A 2019A Q4 2019 Q4 2018 Net Income (Loss) $9.4 $10.5 ($39.9) ($7.5) $2.1 Interest Expense 5.7 6.1 9.1 3.2 1.6 Depreciation and Amortization 7.5 10.4 14.6 4.9 2.8 (1) Income Tax Expense (Benefit) - - (5.0) (2.3

  18. Slide 18: Adjusted Net Income Reconciliation – Historical

    Adjusted Net Income Reconciliation – Historical Adjusted Net Income Reconciliation ($MM) 2017A 2018A 2019A Q4 2019 Q4 2018 Net Income (Loss) $9.4 $10.5 ($39.9) ($7.5) $2.1 (1) Amortization of Acquisition-Related Intangibles 6.6 7.9 9.9 3.4 2.0 Other Adjustments Loss on Extinguishment of Debt(2) 1.2

  19. Slide 19: Depreciation and Amortization Detail – Historical

    Depreciation and Amortization Detail – Historical Depreciation and Amortization ($MM) 2017A 2018A 2019A Q4 2019 Q4 2018 Acquisition-Related Intangibles $6.6 $7.9 $9.9 $3.4 $2.0 Software 0.7 2.1 3.9 1.2 0.7 Reseller Buyouts 0.0 0.1 0.1 0.0 0.0 Amortization 7.3 10.0 13.9 4.6 2.7 Depreciation 0.2 0.4 0

  20. Slide 20: Share Count

    Share Count Shares (1) Number Notes (2) Shares held by Public 18,905,687  Shares previously held by SPAC public shareholders, together with shares issued related to warrant exercises Founder Shares 4,115,000  Not subject to forfeiture; not in escrow Shares Underlying the Post-Merger Repay Units 29

  21. Slide 21: REPAY – Realtime Electronic Payments

    R EPA Realtime Electronic Payments

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