NASDAQ$VRRM

Verra Mobility Corporation · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Verra Mobility's first quarter results for 2024 were announced, showcasing revenue growth and increased profitability.

Verra Mobility reported a strong start to 2024 with a 9% increase in total revenue to $209.7 million and a significant rise in net income to $29.1 million. The company's performance was driven by the successful implementation of the Verra Mobility Operating System (vmOS) and robust secular growth drivers. As a result, Verra Mobility is increasing its financial guidance for the year.

  • Total revenue increased by 9% to $209.7 million compared to Q1 2023.
  • Net income rose to $29.1 million, or $0.17 per share, compared to $4.6 million, or $0.03 per share in Q1 2023.
  • Adjusted EBITDA was $92.8 million, compared to $87.9 million in the same period last year.
  • The Commercial Services segment experienced a 12% revenue increase, while the Government Solutions segment grew by 10%.

Headline financials

Total Revenue

$26.4M

Previous: $24.3M+8.3%
EPS (adj)

$0.27

Previous: $0.26+3.8%
Capital Expenditures

-$14.3M

Previous: -$18.4M+22.3%
Free Cash Flow

$14.9M

Previous: -$13.8M+207.8%
Net Income

$29.1M

Previous: $4.58M+536.9%
Operating Income

$54.4M

Previous: $50.1M+8.5%
Gross Profit

-$44.3M

Previous: -$37.5M-18.1%
Cash & Equivalents

$150M

Previous: $64.3M+132.7%
Total Assets

$1.77B

Previous: $1.71B+3.4%
Stock-Based Comp

$5.56M

Previous: $3.38M+64.5%

Revenue & EPS history

Verra Mobility · Revenue · Quarterly

$26.4M

Q1 2024+8.3%vs Q1 2023
Beat estimate in 3 of 15 quarters(20%)
ActualEstimate

Revenue by segment

Verra Mobility · $210M total across 3 segments · Q3 2023

  • Commercial Services
    $98.1M+13.9%
  • Government Solutions
    $90.3M+0.7%
  • Parking Solutions
    $21.5M-1.8%

Forward guidance

Based on the first quarter results and outlook for the remainder of the year, Verra Mobility is expecting to deliver results at the upper-end of the previous guidance for total revenue, Adjusted EBITDA and Adjusted EPS, while maintaining the previous guidance for Adjusted Free Cash Flow.

Tailwinds

  • Total Revenue: Expecting to deliver results at the upper-end of the previous range ($865 million to $880 million)
  • Adjusted EBITDA: Expecting to deliver results at the upper-end of the previous range ($395 million to $405 million)
  • Adjusted EPS: Expecting to deliver results at the upper-end of the previous range ($1.15 to $1.20)
  • Adjusted Free Cash Flow: Maintaining the previous guidance ($155 million to $165 million)
  • Strong Q1 performance driven by vmOS implementation

Headwinds

  • Guidance is subject to change due to various factors affecting operating results.
  • Customer concentration in Commercial Services and Government Solutions segments.
  • Risks related to government contracts, including legislative changes and termination rights.
  • Potential decreases in the prevalence or acceptance of automated enforcement methods.
  • Risks related to international operations and intellectual property protection.

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 2024

Historical avgQ1 2024

+0.0%

Avg return

Earnings day

-0.7%

Avg return

5 days after

-0.4%

Avg return

30 days after

51%

18 / 35 earnings

Positive

+9.4%

Q1 2024

Best reaction

-18.7%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.2%-4.8%-70.3%
Q4 2025-13.6%-10.7%-25.8%
Q3 2025-2.5%-3.0%-7.1%
Q1 2025+9.1%+6.0%+9.7%
Q4 2024-11.8%-16.5%-22.2%
Q3 2024-12.2%-12.2%-10.1%
Q2 2024+0.6%-0.6%-4.3%
Q1 2024+9.4%+11.9%+12.4%
Q4 2023+6.1%+0.2%+15.8%
Q3 2023+4.6%+2.5%+8.2%
Q2 2023-1.4%-5.4%-13.5%
Q1 2023+6.1%+4.5%+12.7%
Q4 2022+3.0%+2.0%-1.8%
Q3 2022-18.7%-22.3%-5.9%
Q2 2022+4.7%-1.3%-4.0%
Q1 2022+7.2%+10.3%+21.7%
Q4 2021-1.9%-6.5%+2.4%
Q3 2021+0.1%+1.4%-8.1%
Q2 2021+6.0%+4.4%-1.8%
Q1 2021-0.2%+1.5%+1.9%
Q4 2020-2.5%+2.2%-5.0%
Q3 2020+0.9%+18.5%+28.0%
Q2 2020+3.2%+2.6%-6.7%
Q1 2020+5.0%+6.0%+30.3%
Q4 2019-3.9%-20.4%-58.5%
Q3 2019+2.7%+0.6%-2.9%
Q2 2019+6.5%+8.6%+10.4%
Q1 2019+3.0%+4.7%+13.6%
Q4 2017-1.9%-2.7%+25.1%
Q2 2018-1.9%-2.7%+25.1%
Q4 2018-1.9%-2.7%+25.1%
Q3 2018+4.4%+3.7%-1.8%
Q1 2018+0.0%-0.2%-0.1%
Q2 2017+0.0%-0.5%-1.1%
Q1 2017-5.6%-3.2%-4.0%

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