Slide 1: Earnings Overview
Earnings Overview Verra Mobility Q4 2024 Earnings Presentation For the Quarter Ended December 31, 2024
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements which address our expected future business and financial performance, and may contain words such as “goal,” “target,” “future,” “estimate,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “project,” “may,”
Slide 3: Q4 2024 Financial Highlights Executive Summary
Q4 2024 Financial Highlights Executive Summary Total Revenue • Solid consolidated fourth quarter top-line performance - Commercial Services: 4% Y-o-Y growth driven by resilient travel demand $221 million; 5% YoY growth - Government Solutions: 5% Y-o-Y service revenue growth driven by core market acc
Slide 4: Strong top-line growth driven by travel & speed enforcement trends
Strong top-line growth driven by travel & speed enforcement trends Consolidated – Q4 Results Total Revenue ($M) Adjusted EBITDA ($M) * Service Product Total $221 $211 +5% $9 $12 Total $102 $202 Service $210 $91 +12% +4% Q4 2023 Q4 2024 Q4 2023 Q4 2024 Adjusted EPS * Free Cash Flow ($M) * $0.33 $22 3
Slide 5: Core Businesses Drive Strong Growth and FCF Conversion
Core Businesses Drive Strong Growth and FCF Conversion Total Revenue Breakdown ($M) Adjusted EBITDA & Margins * ($M) Service Total Revenue Product CAGR 22% Adj EBITDA CAGR 22% Service Revenue CAGR 26% 46% $879 45% $817 $38 $742 $34 46% $46 $551 49% $58 $394 $402 $784 $842 $372 $57 $695 $339 46% $493
Slide 6: Robust travel demand driving strong performance
Robust travel demand driving strong performance Commercial Services – Q4 Results Total Revenue & YoY Growth Segment Profit & YoY Growth Segment Profit $62 +4% $65 $95 Srvc Rev $99 +4% Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 – Key Highlights • Fourth quarter Revenue up 4% over Q4 2023 due to strength in R
Slide 7: Revenue fueled by core market acceleration
Revenue fueled by core market acceleration Government Services – Q4 Results Total Revenue & YoY Growth Segment Profit & YoY Growth Service Product Revenue $103 $94 Total Rev $3 +10% $8 Srvc Rev $95 Segment Profit $35 $91 +5% 44% $24 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 – Key Highlights • Service Reven
Slide 8: Strong Recurring SaaS Revenue offset by declining product sales and professional services
Strong Recurring SaaS Revenue offset by declining product sales and professional services T2 Systems – Q4 Results Total Revenue & YoY Change Segment Profit & YoY Change SaaS & Service Revenue Product Revenue $23 Total Rev -13% $20 $6 $4 Srvc Rev $5 Segment Profit $17 -4% $16 -43% $3 Q4 2023 Q4 2024
Slide 9: Strong, Flexible Balance Sheet + Robust Cash Flow
2 0 2 1 I N V E S T O R D A Y – © B U I L D E R9 S F I R S T S O U R C E Strong, Flexible Balance Sheet + Robust Cash Flow Capital Summary & Financial Highlights ($M) Net Leverage* Improvement ($M) December 31, 2024 $918 $903 $928 $968 $844 Cash & Cash Equivalents $78 2.5x 2.4x 2.4x 2.2x 2.4x Debt $
Slide 10: 2025 Financial Outlook delivers solid revenue and earnings growth and Free Cash Flow conversion
2025 Financial Outlook delivers solid revenue and earnings growth and Free Cash Flow conversion 2025 Guidance In millions, except per share data & net leverage Commentary Total Revenue growth of 6% at the mid-point of guidance CS … HSD growth 1 Total Revenue $925 - $935 GS … MSD to HSD growth CS dri
Slide 11: Additional 2025 Guidance Assumptions
Additional 2025 Guidance Assumptions 2025 fully diluted share count of approximately 163 million shares (weighted average for the year) Effective tax rate of 28.5 to 29.5% including State taxes; approximately $65 million in 2025 total cash taxes paid 2025 depreciation and amortization expected to be
Slide 12: Appendix
Appendix 12
Slide 13: Key Definitions
KEY DEFINITIONS EBITDA and Adjusted EBITDA We define "EBITDA" as net income adjusted to exclude interest expense, net, income taxes, depreciation and amortization. "Adjusted EBITDA" further excludes certain non-cash expenses and non-recurring items. Adjusted EBITDA Margin We define “Adjusted EBITDA
Slide 14: Key Definitions, Continued
KEY DEFINITIONS, Continued Net Debt We define “Net Debt” as total long-term debt (including current portion of long-term debt) excluding original issue discounts and unamortized deferred financing costs, less cash and cash equivalents. Net Leverage We define “Net Leverage” as Net Debt divided by the
Slide 15: Verra Mobility Quarterly Results
Verra Mobility Quarterly Results 2021 – FY 2024 Full Year Full Year Unaudited ($ in millions) 2021 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Full Year 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Full Year 2024 Service revenue $492.8 $695.2 $184.7 $196.0 $201.0 $201.8 $783.6 $202.7 $212.0 $217.3 $209.7 $841.7 Pr
Slide 16: Verra Mobility Quarterly Results: Segment Results of Operations
Verra Mobility Quarterly Results Segment Results of Operations Commercial Services Unaudited ($ in millions) Full Year Full Year Full Year Full Year Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2021 2022 2023 2024 Total Revenue Commercial Services $260.9 $326.0 $85.6 $94.5 $98.1 $
Slide 17: Adj. Net Income and Adjusted EPS Reconciliations
Verra Mobility Adj. Net Income and Adjusted EPS Reconciliations (in $MM, except per share data) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Net Income $3.0 $29.1 $34.2 $34.7 ($66.7) Amortization of intangibles 16.7 16.7 16.7 16.8 16.7 Transaction and other related expenses 0.1 1.5 0.1 2.5 1.2 Transforma
Slide 18: Free Cash Flow Reconciliation, incl. % of Adj. EBITDA
Verra Mobility Free Cash Flow Reconciliation, incl. % of Adj. EBITDA ($MM) 2019 2020 2021 2022 2023 2024 Adjusted EBITDA $ 241 $ 182 $ 271 $ 339 $372 $402 Net cash provided by operating $ 134 $ 47 $ 193 $ 218 $206 $224 activities 1 Purchases of installation and service parts and property and equipme
Slide 19: Net Debt and Net Leverage Reconciliation
Verra Mobility Net Debt and Net Leverage Reconciliation Q4 Q1 Q2 Q3 Q4 ($MM) 2023 2024 2024 2024 2024 2021 Term Loan, due 2028 $ 705 $ 702 $ 700 $700 $696 Plus: Senior Notes, due 2029 $ 350 $ 350 $ 350 $350 $350 Long-term Debt, excluding original issue discounts and unamortized $ 1,055 $1,052 $1,050
Slide 20: Thank You
Thank You http://ir.verramobility.com/