Loading...
•
Mar 31, 2024
i3 Verticals Q2 2024 Earnings Report
Reported a slight revenue increase and a significant rise in net income compared to the previous year
Key Takeaways
i3 Verticals reported a slight increase in revenue and a significant increase in net income for Q2 2024. The company's adjusted EBITDA margin expanded, driven by growth in recurring revenue sources such as SaaS, software transaction-based revenue, and payments.
Second quarter revenue increased by 0.7% year-over-year to $94.5 million.
Net income for the second quarter was $3.3 million, compared to a net loss of $0.2 million in the prior year's second quarter.
Adjusted EBITDA increased by 4.4% year-over-year to $25.8 million.
Annualized Recurring Revenue (ARR) grew by 5.5% to $322.5 million.
i3 Verticals
i3 Verticals
Forward Guidance
The Company is providing the following revised outlook for the fiscal year ending September 30, 2024: Revenue $380 million - $394 million and Adjusted EBITDA $107 million - $113 million.
Positive Outlook
- Revenue between $380 million and $394 million.
- Adjusted EBITDA between $107 million and $113 million.
- Depreciation and internally developed software amortization between $11 million and $13 million.
- Cash interest expense, net between $27 million and $29 million.
- Pro forma adjusted diluted earnings per share between $1.49 and $1.57.
Challenges Ahead
- Guidance excludes the impact of acquisitions, dispositions and transaction-related costs.
- Guidance does not take into account any impact of the potential sale of i3 Verticals' Merchant Services Business.
- Reconciliations 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.
- These adjustments may have a potentially significant impact on future GAAP financial results.