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Verra Mobility
🇺🇸 NASDAQ:VRRM
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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.

Total Revenue
$129M
Previous year: $62.8M
+104.8%
EPS
$0.1
Previous year: -$0.1
-200.0%
Adjusted EBITDA
$68.6M
Previous year: $27.6M
+148.6%
Adjusted EBITDA Margin
53%
Gross Profit
$121M
Previous year: $69.7M
+73.8%
Cash and Equivalents
$147M
Previous year: $113M
+30.1%
Free Cash Flow
$23.9M
Previous year: $1.54M
+1450.7%
Total Assets
$1.56B
Previous year: $1.36B
+15.1%

Verra Mobility

Verra Mobility

Verra Mobility Revenue by Segment

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

Company Overview

Full financial data and analysis

View Verra Mobility