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Dec 31, 2022
i3 Verticals Q1 2023 Earnings Report
Reported record revenue and annualized recurring revenue.
Key Takeaways
i3 Verticals reported a strong first quarter for fiscal year 2023, with record revenue and adjusted EBITDA. Revenue increased by 16.4% year-over-year, and adjusted EBITDA increased by 29.3%. The company also saw a significant rise in annualized recurring revenue.
Revenue was $86.0 million, up 16.4% from the prior year's first quarter.
Net income was $0.2 million, compared to a net loss of $3.7 million in the prior year's first quarter.
Adjusted EBITDA was $23.6 million, a 29.3% increase over the prior year's first quarter.
Annualized Recurring Revenue (ARR) grew by 20.7% to $290.2 million.
i3 Verticals
i3 Verticals
Forward Guidance
The Company is providing the following revised outlook for the fiscal year ending September 30, 2023:
Positive Outlook
- Revenue is expected to be $360 million - $380 million.
- Adjusted EBITDA is expected to be $95 million - $103 million.
- Pro forma adjusted diluted earnings per share is expected to be $1.50 - $1.62.
- AccuFund acquisition is expected to strengthen the Company's Public Sector Vertical.
- Company expects to continue M&A efforts and find opportunities to compound value for its shareholders.
Challenges Ahead
- Reconciliation of adjusted EBITDA and pro forma adjusted diluted earnings per share guidance to the closest corresponding GAAP measure on a forward-looking basis is not available without unreasonable efforts.
- Sufficient information is not available to calculate certain adjustments required for such reconciliations, including changes in the fair value of contingent consideration, income tax expense of i3 Verticals, Inc. and equity-based compensation expense.
- Future economic conditions, including the impact of inflation and rising interest rates, could negatively impact results.
- Competition in the industry and the Company's ability to compete effectively could negatively impact results.
- Regulatory developments and the COVID-19 pandemic could negatively impact results.