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Jun 30, 2024
i3 Verticals Q3 2024 Earnings Report
Reported a decrease in revenue and net loss compared to the prior year's third quarter, while also completing a public sector acquisition and authorizing a share repurchase program.
Key Takeaways
i3 Verticals reported a 2% decrease in revenue, a widened net loss, and a decrease in adjusted EBITDA. However, the company is focusing on its vertical market software business and has completed an acquisition in the public sector.
Revenue decreased by 2% compared to the prior year's third quarter.
Net loss increased compared to the prior year's third quarter.
Adjusted EBITDA decreased by 11% over the prior year's third quarter.
The company acquired a permitting and licensing business to drive revenue growth.
i3 Verticals
i3 Verticals
Forward Guidance
The company provided an outlook for continuing operations for fiscal years 2024 and 2025, excluding the impact of acquisitions, dispositions, and transaction-related costs.
Positive Outlook
- Revenue is expected to be between $228 million and $234 million for fiscal year 2024.
- Revenue is expected to be between $243 million and $263 million for fiscal year 2025.
- Adjusted EBITDA is expected to be between $56 million and $60 million for fiscal year 2024.
- Adjusted EBITDA is expected to be between $63 million and $71.5 million for fiscal year 2025.
- Pro forma adjusted diluted earnings per share is expected to be between $1.05 and $1.25 for fiscal year 2024.
Challenges Ahead
- Reconciliations of adjusted EBITDA from continuing operations and pro forma adjusted diluted earnings per share from continuing operations 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.
- Company is withdrawing the consolidated-level guidance previously provided in the Company's earnings release issued on May 10, 2024.
- Margins will initially take a step back after the Merchant Services transaction