Repay Holdings Corp is engaged in providing integrated payment processing solutions to verticals that have transaction processing needs. It allows customers to pay through Mobile App, Text, Interactive Voice Response, Virtual Terminal, Hosted Payment Page, and Online Customer Portal among others. It operates in two segments: Consumer Payment and Business Payments.
Performance Overview
Repay Holdings Corp (RPAY, Financial) reported revenue of $74.9 million for Q2 2024, a 4% increase year-over-year but below the analyst estimate of $76.11 million. The company posted a net loss of $4.2 million, translating to an earnings per share (EPS) of -$0.04, which was worse than the analyst estimate of -$0.02.
Financial Highlights
| Metric | Q2 2023 | Q2 2024 | YoY Change |
|---|---|---|---|
| Revenue ($ millions) | 71.8 | 74.9 | 4% |
| Gross Profit ($ millions) | 54.9 | 58.6 | 7% |
| Net Loss ($ millions) | (5.3) | (4.2) | 21% |
| Adjusted EBITDA ($ millions) | 30.5 | 33.7 | 10% |
| Free Cash Flow ($ millions) | 10.0 | 19.3 | 93% |
Segment Performance
The Consumer Payments segment reported a 7% year-over-year increase in gross profit, while the Business Payments segment saw an 11% increase. The company also accelerated its AP supplier network to over 300,000, a 55% increase year-over-year.
Balance Sheet and Cash Flow
As of June 30, 2024, Repay Holdings Corp (RPAY, Financial) had cash and cash equivalents of $147.1 million, up from $118.1 million at the end of 2023. The company reported net cash provided by operating activities of $31.0 million for Q2 2024, a 55% increase year-over-year.
Commentary and Outlook
"We are pleased with our performance in the second quarter and our year-to-date results represent a strong first half to the year as we aim to capture our client’s embedded payment flows," said John Morris, CEO of REPAY.
Repay Holdings Corp (RPAY, Financial) reiterated its 2024 outlook, expecting revenue between $314 million and $320 million, gross profit between $245 million and $250 million, and adjusted EBITDA between $139 million and $142 million.
Conclusion
Despite missing revenue estimates, Repay Holdings Corp (RPAY, Financial) showed resilience with better-than-expected EPS and strong growth in key financial metrics. The company's focus on expanding its payment solutions and improving free cash flow conversion positions it well for future growth.
Explore the complete 8-K earnings release (here) from Repay Holdings Corp for further details.
