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Mar 31, 2024
Verra Mobility Q1 2024 Earnings Report
Verra Mobility's first quarter results for 2024 were announced, showcasing revenue growth and increased profitability.
Key Takeaways
Verra Mobility reported a strong start to 2024 with a 9% increase in total revenue to $209.7 million and a significant rise in net income to $29.1 million. The company's performance was driven by the successful implementation of the Verra Mobility Operating System (vmOS) and robust secular growth drivers. As a result, Verra Mobility is increasing its financial guidance for the year.
Total revenue increased by 9% to $209.7 million compared to Q1 2023.
Net income rose to $29.1 million, or $0.17 per share, compared to $4.6 million, or $0.03 per share in Q1 2023.
Adjusted EBITDA was $92.8 million, compared to $87.9 million in the same period last year.
The Commercial Services segment experienced a 12% revenue increase, while the Government Solutions segment grew by 10%.
Verra Mobility
Verra Mobility
Verra Mobility Revenue by Segment
Revenue by Segment
Commercial Services Revenue
CapyFin.comGovernment Solutions Revenue
CapyFin.comParking Solutions Revenue
CapyFin.com Forward Guidance
Based on the first quarter results and outlook for the remainder of the year, Verra Mobility is expecting to deliver results at the upper-end of the previous guidance for total revenue, Adjusted EBITDA and Adjusted EPS, while maintaining the previous guidance for Adjusted Free Cash Flow.
Positive Outlook
- Total Revenue: Expecting to deliver results at the upper-end of the previous range ($865 million to $880 million)
- Adjusted EBITDA: Expecting to deliver results at the upper-end of the previous range ($395 million to $405 million)
- Adjusted EPS: Expecting to deliver results at the upper-end of the previous range ($1.15 to $1.20)
- Adjusted Free Cash Flow: Maintaining the previous guidance ($155 million to $165 million)
- Strong Q1 performance driven by vmOS implementation
Challenges Ahead
- Guidance is subject to change due to various factors affecting operating results.
- Customer concentration in Commercial Services and Government Solutions segments.
- Risks related to government contracts, including legislative changes and termination rights.
- Potential decreases in the prevalence or acceptance of automated enforcement methods.
- Risks related to international operations and intellectual property protection.
Revenue & Expenses
Visualization of income flow from segment revenue to net income