Repay (RPAY) - 2024 Q2 - Quarterly Report

Revenue Performance - Total revenue for the six months ended June 30, 2024, was $155,626,000, an increase from$146,320,000 for the same period in 2023, representing a growth of approximately 6.5%[10] - Total revenue for the three months ended June 30, 2024, was $74,906 thousand, an increase from$71,783 thousand for the same period in 2023, representing a growth of approximately 4.9%[30][31] - Total revenue for the first half of 2024 was $155.6 million, a 6.5$146.3 million in the first half of 2023[134] - Total revenue for Q2 2024 was $74.9 million, a 2.9$71.8 million in Q2 2023[124] - Revenue for the Consumer Payments segment was $69.3 million for the three months ended June 30, 2024, representing a$3.4 million or 5.1% year-over-year increase from $65.9 million for the same period in 2023[123] - The Consumer Payments segment generated$69.3 million in revenue for the three months ended June 30, 2024, accounting for approximately 92.5% of total revenue, compared to $65.9 million for the same period in 2023[88] Expense Management - Operating expenses for the six months ended June 30, 2024, totaled$161,551,000, down from $174,150,000 in the prior year, indicating a decrease of about 7.2$35.2 million for the three months ended June 30, 2024, a decrease of $2.9 million or 7.7$38.2 million for the same period in 2023[109] - Selling, general and administrative expenses for the six months ended June 30, 2024, were $72.3 million, a decrease of$4.4 million or 5.8% compared to $76.7 million for the same period in 2023[117] - Costs of services decreased to$16.3 million for the three months ended June 30, 2024, down $0.5 million or 3.1$16.8 million for the same period in 2023[108] Profitability and Loss - The net loss attributable to the company for the three months ended June 30, 2024, was $4,643,000, compared to a net loss of$31,035,000 for the same period in 2023, reflecting a significant improvement[10] - Net loss for the six months ended June 30, 2024, was $9,602,000, compared to a net loss of$33,262,000 for the same period in 2023, representing a 71% improvement[18] - The net loss for the three months ended June 30, 2024, was $4.2 million, a slight improvement from a net loss of$5.3 million for the same period in 2023[88] - The net loss attributable to the Company for the three months ended June 30, 2024, was $(4,071) thousand, compared to a net loss of$(4,643) thousand for the same period in 2023, indicating an improvement of approximately 12.3%[33] Cash Flow and Liquidity - Cash and cash equivalents increased to $147,092,000 as of June 30, 2024, up from$118,096,000 at the end of 2023, marking a growth of approximately 24.5%[7] - Cash provided by operating activities for the six months ended June 30, 2024, was $55,780,000, an increase from$40,784,000 in 2023, indicating a 37% growth[18] - Net cash provided by operating activities increased to $55.8 million for the six months ended June 30, 2024, compared to$40.8 million for the same period in 2023, reflecting a growth of 36.5%[146] - As of June 30, 2024, the company had $147.1 million in cash and cash equivalents, with an available borrowing capacity of$185.0 million under the Amended Credit Agreement[142] Debt and Liabilities - Long-term debt remained relatively stable at $435,589,000 as of June 30, 2024, compared to$434,166,000 at the end of 2023[7] - Total liabilities increased slightly to $690,940,000 as of June 30, 2024, from$689,045,000 at December 31, 2023[7] - The company had $0 drawn against the revolving credit facility as of June 30, 2024, with interest expense totaling$1.8 million for the six months ended June 30, 2024[52] - As of June 30, 2024, the company had convertible senior debt outstanding of $435.6 million, net of deferred issuance costs, under the 2026 Notes[153] Equity and Shareholder Information - Total equity as of June 30, 2024, was$830,725,000, a slight decrease from $830,788,000 at December 31, 2023[8] - The company repurchased approximately$220.0 million of the 2026 Notes on July 8, 2024, using proceeds from the offering of 2029 Notes[151] - The company has $37.5 million remaining capacity under its share repurchase program as of June 30, 2024[144] - The total fair value of PSUs, RSAs, and RSUs vested during the six months ended June 30, 2024, was$11.3 million, with unrecognized compensation expense related to unvested awards at $38.2 million[70] Tax and Regulatory Matters - The effective tax rate for the three months ended June 30, 2024, was 31.8$2.0 million for the three months ended June 30, 2024, compared to an income tax benefit of $1.1 million for the same period in 2023[76] - The company established a liability under the Tax Receivable Agreement (TRA) that may increase upon redemptions or exchanges of Post-Merger Repay Units for Class A common stock[154] Future Outlook and Risks - The company has been monitoring macroeconomic conditions, including inflation and rising interest rates, which may impact payment volumes and overall financial performance[100] - Future debt obligations may impose additional restrictive covenants that could affect the company's financial and operational flexibility[169] - The company may not have sufficient funds to repurchase the Notes or make cash payments upon conversion, which could lead to defaults under the indentures[170]