Repay (RPAY)2024-11-12 21:07Financial Performance - Q3 2024 revenue reached 61.6 million, reflecting a 9% growth compared to the previous year[2] - Adjusted EBITDA for Q3 2024 was 48.8 million, a 250% increase compared to the same quarter last year[2] - Revenue for the three months ended September 30, 2024, was 74,320,000 for the same period in 2023, a growth of 10.3%[20] - Net income for the three months ended September 30, 2024, was 6,484,000 for the same period in 2023, indicating a significant turnaround[20] - Revenue for the nine months ended September 30, 2024, was 220,640 thousand in 2023[27] - Adjusted EBITDA for the nine months ended September 30, 2024, was 93,317 thousand in 2023[27] - The company reported a net loss of 39,746 thousand in 2023[27] Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended September 30, 2024, was 68,751 thousand in 2023, representing a significant increase of 68.4%[24] - Net cash provided by operating activities for Q3 2024 was 27,967,000 in Q3 2023, representing a 114% increase[30] - Cash and cash equivalents increased to 118,096,000 at the end of 2023, reflecting improved liquidity[22] - Cash, cash equivalents, and restricted cash at the end of the period increased to 141,390 thousand in 2023, reflecting a growth of 52.2%[24] - Free cash flow for Q3 2024 was 13,941,000 in Q3 2023, indicating a conversion rate of 139%[30] Operating Expenses and Profitability - Total operating expenses for the three months ended September 30, 2024, were 79,439,000 for the same period in 2023[20] - Total operating expenses for the nine months ended September 30, 2024, were 253,589 thousand in 2023[27] - Loss from operations for the nine months ended September 30, 2024, was (32,949,000) in the same period of 2023[29] Client and Network Growth - The company added 13 new credit union clients, bringing the total to 313[5] - The AP supplier network expanded to over 330,000, marking a 42% year-over-year increase[4] - Business Payments gross profit grew by approximately 67% year-over-year, while Consumer Payments gross profit increased by about 2%[4] Debt and Liabilities - Long-term debt increased to 434,166,000 at the end of 2023, indicating a rise in leverage[22] - Total liabilities increased to 689,045,000 at the end of 2023, reflecting higher obligations[22] - The company recorded a gain on extinguishment of debt amounting to 314 million and $320 million[10] - The company aims for a Free Cash Flow Conversion target of approximately 65% for 2024[9] - REPAY's strategy includes organic investments, strategic M&A, and opportunistic share repurchases to drive sustainable growth[3] Share Performance - Weighted-average shares of Class A common stock outstanding - basic were 88,263,285 for the three months ended September 30, 2024, down from 91,160,415 for the same period in 2023[20] - The number of Class A common stock shares outstanding as of September 30, 2024, was 96,259,523, slightly down from 96,778,735 in the same period of 2023[29] - The weighted average shares of Class A common stock outstanding (basic) decreased from 91,160,415 in 2023 to 88,263,285 in 2024[38] - The weighted average shares of Class A common stock outstanding (on an as-converted basis) decreased from 97,052,574 in 2023 to 94,074,811 in 2024[38] Amortization and Intangibles - Amortization of intangibles related to past acquisitions will continue to recur in future periods until fully amortized[36] - Future acquisitions may result in the amortization of additional intangibles[36] - The company emphasizes the importance of understanding the impact of intangibles on revenue generation[36]