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Jun 30, 2022
i3 Verticals Q3 2022 Earnings Report
Reported a net loss but revenue and adjusted EBITDA increased year over year.
Key Takeaways
i3 Verticals reported a 27.6% increase in revenue to $80.6 million for the third quarter of 2022. While the company experienced a net loss of $4.7 million, adjusted EBITDA rose by 29.1% to $20.1 million. Annualized Recurring Revenue grew by 30.2%.
Third quarter revenue increased by 27.6% year-over-year to $80.6 million.
Net loss for the third quarter was $4.7 million, compared to a net loss of $4.2 million in the prior year's third quarter.
Adjusted EBITDA increased by 29.1% year-over-year to $20.1 million.
Annualized Recurring Revenue (ARR) grew by 30.2% year-over-year.
i3 Verticals
i3 Verticals
Forward Guidance
The Company is providing the following revised outlook for the fiscal year ending September 30, 2022:
Positive Outlook
- Revenue is expected to be between $307 million and $317 million.
- Adjusted EBITDA is expected to be between $76.5 million and $80.5 million.
- Pro forma adjusted diluted earnings per share is expected to be between $1.41 and $1.47.
- Assumes an effective pro forma tax rate of 25.0% (non-GAAP).
- Excluding future acquisitions and transaction-related costs.
Challenges Ahead
- Reconciliation of net revenue, 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.
- This inability results from the inherent difficulty in forecasting generally and quantifying certain projected amounts that are necessary for such reconciliations.
- 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.
- The Company expects these adjustments may have a potentially significant impact on future GAAP financial results.
- Guidance excludes future acquisitions and transaction-related costs.