NASDAQ$IIIV

i3 Verticals Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported a net loss but revenue and adjusted EBITDA increased year over year.

i3 Verticals reported a 27.6% increase in revenue to $80.6 million for the third quarter of 2022. While the company experienced a net loss of $4.7 million, adjusted EBITDA rose by 29.1% to $20.1 million. Annualized Recurring Revenue grew by 30.2%.

  • Third quarter revenue increased by 27.6% year-over-year to $80.6 million.
  • Net loss for the third quarter was $4.7 million, compared to a net loss of $4.2 million in the prior year's third quarter.
  • Adjusted EBITDA increased by 29.1% year-over-year to $20.1 million.
  • Annualized Recurring Revenue (ARR) grew by 30.2% year-over-year.

Headline financials

Total Revenue

$80.6M

Previous: $62M+30.0%
EPS (adj)

$0.37

Previous: $0.26+42.3%
Annualized Recurring Revenue

$267M

No prior period
Capital Expenditures

-$1.4M

Previous: -$1.36M-2.3%
Free Cash Flow

-$5.12M

Previous: -$4.67M-9.7%
Net Income

-$3.73M

Previous: -$3.31M-12.7%
Operating Income

-$2.73M

Previous: -$2M-36.5%
Gross Profit

$71.5M

Previous: $54M+32.3%
Cash & Equivalents

$9.05M

Previous: $4.65M+94.4%
Total Assets

$780M

Previous: $645M+21.1%
Stock-Based Comp

$6.8M

Previous: $5.11M+33.0%

Revenue & EPS history

i3 Verticals · Revenue · Quarterly

$80.6M

Q3 2022+30%vs Q3 2021
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, 2022:

Tailwinds

  • Revenue is expected to be between $307 million and $317 million.
  • Adjusted EBITDA is expected to be between $76.5 million and $80.5 million.
  • Pro forma adjusted diluted earnings per share is expected to be between $1.41 and $1.47.
  • Assumes an effective pro forma tax rate of 25.0% (non-GAAP).
  • Excluding future acquisitions and transaction-related costs.

Headwinds

  • Reconciliation of net revenue, 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.
  • This inability results from the inherent difficulty in forecasting generally and quantifying certain projected amounts that are necessary for such reconciliations.
  • 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.
  • The Company expects these adjustments may have a potentially significant impact on future GAAP financial results.
  • Guidance excludes future acquisitions and transaction-related costs.

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 Q3 2022

Historical avgQ3 2022

-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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