NASDAQ$IIIV

i3 Verticals Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported a slight revenue increase and a significant rise in net income compared to the previous year

i3 Verticals reported a slight increase in revenue and a significant increase in net income for Q2 2024. The company's adjusted EBITDA margin expanded, driven by growth in recurring revenue sources such as SaaS, software transaction-based revenue, and payments.

  • Second quarter revenue increased by 0.7% year-over-year to $94.5 million.
  • Net income for the second quarter was $3.3 million, compared to a net loss of $0.2 million in the prior year's second quarter.
  • Adjusted EBITDA increased by 4.4% year-over-year to $25.8 million.
  • Annualized Recurring Revenue (ARR) grew by 5.5% to $322.5 million.

Headline financials

Total Revenue

$94.5M

Previous: $93.9M+0.7%
EPS

$0.08

Previous: $0.38-78.9%
Adjusted EBITDA

$15.2M

No prior period
Adjusted EBITDA as % of revenue

26.2%

No prior period
Annualized Recurring Revenue

$187M

Previous: $306M-38.9%
Capital Expenditures

-$1.54M

Previous: -$2.32M+33.8%
Free Cash Flow

$341K

Previous: -$2.29M+114.9%
Net Income

$1.88M

Previous: $36K+5116.7%
Operating Income

$9.42M

Previous: $5.44M+73.1%
Gross Profit

$84.7M

Previous: $84.8M-0.1%
Cash & Equivalents

$3.14M

Previous: $3.98M-21.1%
Total Assets

$866M

Previous: $883M-2.0%
Stock-Based Comp

$5.78M

No prior period

Revenue & EPS history

i3 Verticals · Revenue · Quarterly

$94.5M

Q2 2024+0.7%vs Q2 2023
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, 2024: Revenue $380 million - $394 million and Adjusted EBITDA $107 million - $113 million.

Tailwinds

  • Revenue between $380 million and $394 million.
  • Adjusted EBITDA between $107 million and $113 million.
  • Depreciation and internally developed software amortization between $11 million and $13 million.
  • Cash interest expense, net between $27 million and $29 million.
  • Pro forma adjusted diluted earnings per share between $1.49 and $1.57.

Headwinds

  • Guidance excludes the impact of acquisitions, dispositions and transaction-related costs.
  • Guidance does not take into account any impact of the potential sale of i3 Verticals' Merchant Services Business.
  • Reconciliations 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.
  • These adjustments may have a potentially significant impact on future GAAP financial 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 Q2 2024

Historical avgQ2 2024

-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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