Q3 2024 I3 Verticals Inc Earnings Call Transcript
Key Points
- i3 Verticals Inc (IIIV) announced a strategic acquisition that fits well with their existing business and offers significant growth potential.
- SaaS and transaction-based software revenues grew by 8%, and payments revenues increased by 9% in Q3 2024.
- Over 80% of the company's revenues in the quarter came from recurring sources, providing a stable revenue base.
- ARR increased by 4% to $181.3 million for Q3 2024, compared to $174.5 million for Q3 2023.
- The company has a strong balance sheet with a consolidated leverage ratio of 3.6 times, well within the constraint of 5 times under their $450 million revolving credit facility.
- Revenues for Q3 2024 declined by 2% to $56 million from $57.3 million for Q3 2023, reflecting a decrease in non-recurring sources.
- Adjusted EBITDA declined by 11% to $12.9 million for Q3 2024 from $14.5 million for Q3 2023.
- Professional services revenues declined by $1.1 million due to delays in project implementation caused by external factors.
- The company faced significant headwinds in 2024, including a $3 million impact from the Manitoba project delay, a $5 million drag from the SaaS transition, and a $4 million headwind in the education sector.
- The sale of the merchant services business has not yet closed, creating uncertainty in the financial outlook for fiscal year 2024.
Good day, everyone, and welcome to the i3 Verticals' third quarter 2024 earnings conference call. Today's call is being recorded. (Operator Instructions) At this time, for opening remarks, I'd like to turn the conference call over to Geoff Smith, SVP of Finance. Please go ahead, sir.
Good morning, and welcome to the third quarter 2024 conference call for i3 Verticals. Joining me on this call are Greg Daily, our Chairman and CEO; Clay Whitson, our CFO; Rick Stanford, our President; and Paul Christians, our CRO.
To the extent any non-GAAP financial measures discussed in today's call, you will also find a reconciliation to the most directly comparable GAAP financial measure by reviewing yesterday's earnings release. It is the company's intent to provide non-GAAP financial information to enhance understanding of its consolidated GAAP financial information. This non-GAAP financial information should be considered by each individual in addition to, but not instead of the GAAP financial
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