NASDAQ$VRRM

Verra Mobility Corporation · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported strong recurring revenue growth and free cash flow generation.

Verra Mobility announced strong Q3 2023 results with a 6% increase in total revenue to $209.9 million and a net income of $30.3 million. The company highlighted the renewal of a key customer contract and an increase in financial guidance for 2023. The Board of Directors authorized a $100 million share repurchase program.

  • Total revenue reached $209.9 million, a 6% increase year-over-year.
  • Net income was reported at $30.3 million, or $0.18 per share.
  • Adjusted EPS increased to $0.29 per share, compared to $0.27 per share in the prior year.
  • Adjusted EBITDA was $97.4 million, with a margin of 46%.

Headline financials

Total Revenue

$25.9M

Previous: $23.2M+11.9%
EPS (adj)

$0.29

Previous: $0.27+7.4%
Adjusted EBITDA

$97.4M

Previous: $90.9M+7.2%
Adjusted EBITDA Margin

46.0%

Previous: 46.0%+0.0%
Capital Expenditures

-$40.5M

Previous: -$35.9M-12.7%
Free Cash Flow

-$10.2M

Previous: -$11.4M+10.2%
Net Income

$30.3M

Previous: $24.6M+23.3%
Operating Income

$59.2M

Previous: $45.5M+30.1%
Gross Profit

-$42.9M

Previous: -$37.4M-15.0%
Cash & Equivalents

$114M

Previous: $51.6M+121.8%
Total Assets

$1.76B

Previous: $1.72B+2.2%
Stock-Based Comp

$4.44M

Previous: $4.64M-4.3%

Revenue & EPS history

Verra Mobility · Revenue · Quarterly

$25.9M

Q3 2023+11.9%vs Q3 2022
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

Verra Mobility increased its full year 2023 guidance.

Tailwinds

  • Total Revenue expected to be at the upper-end of the prior range ($800 million to $810 million)
  • Adjusted EBITDA expected to be at the upper-end of the prior range ($365 million to $370 million)
  • Adjusted EPS expected between $1.05 to $1.10
  • Free Cash Flow expected between $145 million to $155 million

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 2023

Historical avgQ3 2023

+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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