Repay (RPAY) - 2024 Q3 - Quarterly Report

Financial Performance - Total revenue for the three months ended September 30, 2024, was $79,145,000, an increase of 6.3$74,320,000 for the same period in 2023[7]. - Net income attributable to the Company for the three months ended September 30, 2024, was $3,243,000, compared to a net loss of$6,168,000 for the same period in 2023[7]. - Operating expenses for the three months ended September 30, 2024, totaled $79,820,000, slightly up from$79,439,000 for the same period in 2023[7]. - The Company reported a basic income per share of $0.04 for the three months ended September 30, 2024, compared to a loss of$0.07 for the same period in 2023[6]. - The Company experienced a loss from operations of $675,000 for the three months ended September 30, 2024, compared to a loss of$5,119,000 for the same period in 2023[7]. - Net income for the three months ended September 30, 2024, was $3.2 million, compared to a net loss of$6.5 million for the same period in 2023[110]. - Adjusted Net Income for the three months ended September 30, 2024, was $21,245,000, compared to$19,896,000 in 2023, reflecting a 6.8% increase[148]. - Adjusted EBITDA for the three months ended September 30, 2024, was $35.1 million, a 10.2$31.9 million in 2023[154]. Revenue Segmentation - Consumer Payments revenue for the nine months ended September 30, 2024, was $214,617, compared to$204,622 in 2023, indicating an increase of 4.9%[29]. - Business Payments revenue for the nine months ended September 30, 2024, was $35,566, up from$28,170 in 2023, showing a significant growth of 26.2%[30]. - The Consumer Payments segment generated approximately 81% of total revenue for the three months ended September 30, 2024, compared to 87% for the same period in 2023[89]. - The Business Payments segment contributed approximately 19% of total revenue for the three months ended September 30, 2024, up from 13% in the same period in 2023[91]. - Business Payments segment revenue surged by $5.6 million or 57.6$15.3 million for the three months ended September 30, 2024[131]. Assets and Liabilities - Total current assets increased to $224,769,000 as of September 30, 2024, from$169,322,000 as of December 31, 2023, representing a growth of 32.7%[5]. - Total liabilities rose to $794,569,000 as of September 30, 2024, compared to$689,045,000 as of December 31, 2023, indicating an increase of 15.3%[5]. - Long-term debt increased to $496,214,000 as of September 30, 2024, from$434,166,000 as of December 31, 2023, reflecting a rise of 14.3%[5]. - Total equity decreased to $769,699,000 as of September 30, 2024, from$830,788,000 as of December 31, 2023, a decline of 7.3%[5]. - Total assets as of September 30, 2024, were $217,755,000, with cash and cash equivalents amounting to$168,715,000[38]. Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2024, was $115,838, compared to$68,751 for the same period in 2023, representing an increase of 68.4%[15]. - Cash, cash equivalents, and restricted cash at the end of the period increased to $215,255 from$141,390, marking a rise of 52.2%[15]. - Net cash used in investing activities was $34.1 million for the nine months ended September 30, 2024, primarily due to software development capitalization[165]. - The Company expects cash flow from operations and available borrowing capacity to be sufficient to fund operations and capital expenditures for the next twelve months[160]. Debt and Financing - The company issued long-term debt amounting to$287,500 during the nine months ended September 30, 2024[15]. - The Company repurchased $220.0 million of the 2026 Notes at a discount, resulting in a gain of$13.1 million for the three and nine months ended September 30, 2024[55]. - As of September 30, 2024, the Company had convertible senior notes outstanding of $496.2 million, net of deferred issuance costs[175]. - The company increased its senior secured credit facilities to a$250.0 million revolving credit facility on July 10, 2024[191]. Expenses - Selling, general and administrative expenses rose by $1.4 million or 4.0$36.7 million for the three months ended September 30, 2024, primarily due to increased legal and equity compensation expenses[112]. - Total operating expenses for the nine months ended September 30, 2024, were $241,371,000, down from$253,589,000 in 2023, a decrease of 4.8%[150]. - Stock-based compensation for the quarter was $5,686,000, showing an increase from$5,684,000 in the previous quarter[10]. Taxation - The effective tax rate for the three months ended September 30, 2024, was (18.2)%, compared to 24% for the same period in 2023, indicating a significant decrease[79]. - The Company recorded an income tax expense of $1.5 million for the three months ended September 30, 2024, and an income tax benefit of$0.1 million for the nine months ended September 30, 2024[79]. Strategic Initiatives - The company plans to continue its market expansion and product development initiatives in the upcoming quarters[12]. - The company is actively pursuing strategic acquisitions to enhance its market position and product offerings[12]. Shareholder Information - The Company repurchased 158,496 shares for approximately $1.3 million during the three months ended September 30, 2024, with$36.2 million remaining under the Share Repurchase Program[162]. - The number of Class A shares outstanding increased to 90,936,507 as of September 30, 2023, from 90,294,728 as of June 30, 2023[10].