Repay (RPAY) - 2024 Q1 - Quarterly Report

Financial Performance - Revenue for Q1 2024 was $80,720,000, representing a 8.3$74,537,000 in Q1 2023[13] - Net loss for Q1 2024 was $5,365,000, a significant improvement compared to a net loss of$27,932,000 in Q1 2023[13] - Total revenue for the three months ended March 31, 2024, was $80.72 million, an increase from$74.54 million in the same period of 2023, representing an 8.8% year-over-year growth[33][35] - The net loss attributable to the Company for Q1 2024 was $5.21 million, a decrease from a net loss of$26.39 million in Q1 2023[37] - Total gross profit for Q1 2024 was $61.5 million, compared to$56.6 million in Q1 2023, marking an increase of 8.7%[110] - Adjusted Net Income for the period was $22.38 million, up from$19.19 million in the same period last year, representing a 11.4% increase[136] - Adjusted Net Income per share increased to $0.23, compared to$0.20 in the prior year[136] Segment Performance - Consumer Payments segment revenue for Q1 2024 was $76.14 million, up from$69.94 million in Q1 2023, indicating a growth of 8.8%[33][35] - Business Payments segment revenue for Q1 2024 was $9.68 million, compared to$8.68 million in Q1 2023, reflecting an increase of 11.5%[33][35] - The Consumer Payments segment accounted for approximately 88% of the Company's total revenue for the three months ended March 31, 2024[91] - The Business Payments segment represented approximately 12% of the Company's total revenue for the same period[92] Cash Flow and Liquidity - Cash flows from operating activities provided $24,801,000 in Q1 2024, an increase from$20,831,000 in Q1 2023[19] - Cash and cash equivalents rose to $128,318,000 from$118,096,000, marking an increase of 8.5%[10] - Cash and cash equivalents as of March 31, 2024, totaled $128.3 million, with an available borrowing capacity of$185.0 million under the Amended Credit Agreement[143] - 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[143] Expenses and Cost Management - Operating expenses for Q1 2024 totaled $83,224,000, down from$92,501,000 in Q1 2023, a decrease of 10.0%[13] - Selling, general and administrative expenses decreased to $37.0 million in Q1 2024 from$38.5 million in Q1 2023, a reduction of 3.9%[113] - Costs of services rose to $19.2 million in Q1 2024, up from$18.0 million in Q1 2023, an increase of 6.7%[112] - Depreciation and amortization expenses increased to $27.0 million in Q1 2024 from$26.1 million in Q1 2023, a rise of 3.4%[114] Assets and Liabilities - Total current assets increased to $184,029,000 as of March 31, 2024, up from$169,322,000 at the end of 2023, reflecting a 8.7% growth[10] - Total liabilities decreased slightly to $687,422,000 from$689,045,000, indicating a reduction of 0.2%[11] - Total equity as of March 31, 2024, was $829,298,000, slightly down from$830,788,000 at the end of 2023[11] - The estimated fair value of borrowings as of March 31, 2024, was $407.55 million, compared to$375.65 million as of December 31, 2023[49] Shareholder Activities - The Company has $37.5 million remaining under its Share Repurchase Program as of March 31, 2024[145] - During the three months ended March 31, 2024, the company purchased a total of 245,376 shares of Class A common stock at an average price of$9.82 per share[172] - The Share Repurchase Program has no expiration date and may be modified, suspended, or discontinued at the company's discretion[172] Tax and Accounting - The effective tax rate for the three months ended March 31, 2024, was (6%), with an income tax expense of $0.3 million recorded[81] - The Company had deferred tax assets, net of$146.6 million as of March 31, 2024, primarily related to the basis difference in its investment in Hawk Parent[83] - The Company is evaluating the effects of recently issued accounting standards updates on its consolidated financial statements, including ASU 2023-07 and ASU 2023-09[30][31] Other Notable Items - The Company recognized a loss of $9.9 million associated with the sale of Blue Cow Software, LLC in February 2023, which contributed$1.2 million to revenue in Q1 2023[38][39] - The Company incurred transaction expenses of $3.4 million related to the disposition of Blue Cow Software in Q1 2023, included in selling, general, and administrative expenses[40] - The Company recognized total lease costs of$434,000 for the three months ended March 31, 2024, down from $664,000 in the same period of 2023[68] - The Company recognized a total fair value of$7.4 million for vested PSUs, RSAs, and RSUs during the three months ended March 31, 2024[75]