NASDAQ$IIIV

i3 Verticals Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported record revenue and annualized recurring revenue.

i3 Verticals reported a strong first quarter for fiscal year 2023, with record revenue and adjusted EBITDA. Revenue increased by 16.4% year-over-year, and adjusted EBITDA increased by 29.3%. The company also saw a significant rise in annualized recurring revenue.

  • Revenue was $86.0 million, up 16.4% from the prior year's first quarter.
  • Net income was $0.2 million, compared to a net loss of $3.7 million in the prior year's first quarter.
  • Adjusted EBITDA was $23.6 million, a 29.3% increase over the prior year's first quarter.
  • Annualized Recurring Revenue (ARR) grew by 20.7% to $290.2 million.

Headline financials

Total Revenue

$86M

Previous: $73.9M+16.4%
EPS (adj)

$0.37

Previous: $0.35+5.7%
Annualized Recurring Revenue

$290M

Previous: $240M+20.7%
Capital Expenditures

-$1.44M

Previous: -$384K-274.5%
Free Cash Flow

-$1.68M

Previous: -$2.91M+42.4%
Net Income

-$240K

Previous: -$2.53M+90.5%
Operating Income

$5.84M

Previous: -$755K+873.2%
Gross Profit

$77.3M

Previous: $65.9M+17.2%
Cash & Equivalents

$3.61M

Previous: $3.37M+7.1%
Total Assets

$869M

Previous: $776M+12.0%
Stock-Based Comp

$6.85M

Previous: $6.62M+3.4%

Revenue & EPS history

i3 Verticals · Revenue · Quarterly

$86M

Q1 2023+16.4%vs Q1 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

The Company is providing the following revised outlook for the fiscal year ending September 30, 2023:

Tailwinds

  • Revenue is expected to be $360 million - $380 million.
  • Adjusted EBITDA is expected to be $95 million - $103 million.
  • Pro forma adjusted diluted earnings per share is expected to be $1.50 - $1.62.
  • AccuFund acquisition is expected to strengthen the Company's Public Sector Vertical.
  • Company expects to continue M&A efforts and find opportunities to compound value for its shareholders.

Headwinds

  • Reconciliation of adjusted EBITDA and pro forma adjusted diluted earnings per share 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.
  • Future economic conditions, including the impact of inflation and rising interest rates, could negatively impact results.
  • Competition in the industry and the Company's ability to compete effectively could negatively impact results.
  • Regulatory developments and the COVID-19 pandemic could negatively impact results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.5%

Avg return

Earnings day

-0.7%

Avg return

5 days after

+0.0%

Avg return

30 days after

35%

11 / 31 earnings

Positive

+14.6%

Q4 2019

Best reaction

-13.8%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-7.7%-17.5%-13.9%
Q1 2026+5.3%+9.8%+18.0%
Q4 2025-10.4%-17.5%-9.4%
Q2 2025-4.3%-0.6%-7.7%
Q1 2025+9.9%+12.7%-2.4%
Q4 2024-1.2%-3.0%-3.9%
Q3 2024-5.2%-11.0%-9.6%
Q2 2024-9.9%-10.1%-13.9%
Q1 2024+0.3%+3.8%+20.7%
Q4 2023-0.8%+1.4%+1.8%
Q3 2023-5.7%-2.0%-3.0%
Q2 2023-3.8%-9.3%-0.9%
Q1 2023-11.1%-10.3%-16.8%
Q4 2022+7.8%+4.5%+5.1%
Q3 2022-8.2%-12.6%-22.3%
Q2 2022-3.1%-7.1%-4.1%
Q1 2022+10.3%+12.1%+8.1%
Q4 2021-2.4%-12.0%-5.1%
Q3 2021-4.8%-8.0%-8.6%
Q2 2021-2.6%-0.3%-0.7%
Q1 2021+8.0%+4.0%-1.6%
Q4 2020+0.0%+11.5%+31.2%
Q3 2020+10.9%+10.4%+3.2%
Q2 2020+9.5%+10.7%+36.9%
Q1 2020-2.9%-12.1%-30.4%
Q4 2019+14.6%+18.0%+28.7%
Q3 2019-13.8%-22.2%-19.5%
Q2 2019-1.5%+0.6%-3.2%
Q1 2019-3.7%-3.8%-10.6%
Q4 2018+11.5%+26.9%+27.5%
Q3 2018-1.5%+10.3%+7.2%
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q1 2016

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