NASDAQ$IIIV

i3 Verticals Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported a decrease in revenue and net loss compared to the prior year's third quarter, while also completing a public sector acquisition and authorizing a share repurchase program.

i3 Verticals reported a 2% decrease in revenue, a widened net loss, and a decrease in adjusted EBITDA. However, the company is focusing on its vertical market software business and has completed an acquisition in the public sector.

  • Revenue decreased by 2% compared to the prior year's third quarter.
  • Net loss increased compared to the prior year's third quarter.
  • Adjusted EBITDA decreased by 11% over the prior year's third quarter.
  • The company acquired a permitting and licensing business to drive revenue growth.

Headline financials

Total Revenue

$56M

Previous: $93.9M-40.3%
EPS

-$0.32

Previous: $0.38-184.2%
Adjusted EBITDA

$10.8M

No prior period
Adjusted EBITDA as % of revenue

23.3%

No prior period
Annualized Recurring Revenue

$144M

Previous: $311M-53.9%
Capital Expenditures

-$2.43M

Previous: -$3.11M+21.7%
Free Cash Flow

-$9.98M

Previous: -$8.27M-20.7%
Net Income

-$7.55M

Previous: -$5.16M-46.4%
Operating Income

-$669K

Previous: $2.63M-125.4%
Gross Profit

-$4.97M

Previous: $84.9M-105.8%
Cash & Equivalents

$9.75M

Previous: $5.04M+93.2%
Total Assets

$862M

Previous: $876M-1.6%
Stock-Based Comp

$5.1M

Previous: $7.2M-29.1%

Revenue & EPS history

i3 Verticals · Revenue · Quarterly

$56M

Q3 2024-40.3%vs Q3 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

The company provided an outlook for continuing operations for fiscal years 2024 and 2025, excluding the impact of acquisitions, dispositions, and transaction-related costs.

Tailwinds

  • Revenue is expected to be between $228 million and $234 million for fiscal year 2024.
  • Revenue is expected to be between $243 million and $263 million for fiscal year 2025.
  • Adjusted EBITDA is expected to be between $56 million and $60 million for fiscal year 2024.
  • Adjusted EBITDA is expected to be between $63 million and $71.5 million for fiscal year 2025.
  • Pro forma adjusted diluted earnings per share is expected to be between $1.05 and $1.25 for fiscal year 2024.

Headwinds

  • Reconciliations of adjusted EBITDA from continuing operations and pro forma adjusted diluted earnings per share from continuing operations 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.
  • Company is withdrawing the consolidated-level guidance previously provided in the Company's earnings release issued on May 10, 2024.
  • Margins will initially take a step back after the Merchant Services transaction

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 2024

Historical avgQ3 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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