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Jun 30, 2021
Verra Mobility Q2 2021 Earnings Report
Reported a strong second quarter driven by a surge in leisure travel and growth in both business segments.
Key Takeaways
Verra Mobility reported a strong second quarter with revenue of $128.7 million, a 61% increase compared to the same period last year. The Commercial Services segment grew triple digits year-over-year, and the Government Solutions segment benefited from the NYC school zone speed camera program. Adjusted EBITDA also saw triple-digit year-over-year growth, with margins improving to approximately 53%.
Second quarter revenue of $128.7 million, a 61% increase compared to Q2 2020.
Net income for the second quarter of 2021 was $4.0 million, or $0.02 per share.
Adjusted EPS for the second quarter of 2021 was $0.10 per share compared to $0.07 per share for the second quarter of 2020.
Adjusted EBITDA was $68.6 million for the second quarter of 2021, compared to $27.6 million for the same period last year.
Verra Mobility
Verra Mobility
Verra Mobility Revenue by Segment
Revenue by Segment
Commercial Services Revenue
CapyFin.comGovernment Solutions Revenue
CapyFin.com Forward Guidance
Verra Mobility expects consolidated revenue between $510 million and $530 million, and consolidated Adjusted EBITDA between $240 million and $245 million for the full year 2021, including contribution from Redflex.
Positive Outlook
- Consolidated revenue is expected to increase 30% to 35% from 2020 full year revenue.
- Consolidated revenue is expected to increase 14% to 18% compared to 2019 full year revenue.
- Consolidated Adjusted EBITDA is expected to be in the range of $240 to $245 million.
- Stronger growth expected in the second half of 2021.
- Improved business metrics and favorable travel trends.
Challenges Ahead
- Guidance is subject to change as a variety of factors can affect actual results.
- Impact of payment delays related to the outstanding receivables with the City of New York Department of Transportation (NYCDOT).
- Disruption to business and results of operations as a result of the COVID-19 pandemic.
- Impact of the COVID-19 pandemic on revenues from key customers in the rental car industry and from photo enforcement programs.
- Customer concentration in Commercial Services and Government Solutions segments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income