Repay Holdings Corporation (NASDAQ:RPAY) Q1 2023 Earnings Conference Call May 10, 2023 5:00 PM ET

Company Participants

Stewart Grisante - Head, IR

John Morris - CEO, Co-Founder & Director

Timothy Murphy - CFO

Conference Call Participants

Ramsey El-Assal - Barclays Bank

Peter Heckmann - D.A. Davidson & Co.

Andrew Schmidt - Citigroup

Timothy Chiodo - Crédit Suisse

Andrew Jeffrey - Truist Securities

Adib Choudhury - William Blair & Company

James Faucette - Morgan Stanley

Joseph Vafi - Canaccord Genuity

Michael Grondahl - Northland Capital Markets

Charles Nabhan - Stephens Inc.

Stephen Kwok - KBW

Operator

Good afternoon. I would like to welcome everybody to REPAY's First Quarter 2023 Earnings Conference Call. This call is being recorded today, May 10, 2023. I would like to turn the session over to Stewart Grisante, Head of Investor Relations at REPAY. Stewart, you may begin.

Stewart Grisante

Thank you. Good afternoon, and welcome to our first quarter 2023 earnings conference call. With us today are John Morris, Co-Founder and Chief Executive Officer; and Tim Murphy, Chief Financial Officer. During this call, we will be making forward-looking statements about our beliefs and estimates regarding future events and results. These forward-looking statements are subject to risks and uncertainties, including those set forth in the SEC filings related to today's results and in our most recent Form 10-K and 10-Q filed with the SEC. Actual results may differ materially from any forward-looking statements that we make today. Forward-looking statements speak only as of today, and we do not assume any obligation or intend to update them, except as required by law. In an effort to provide additional information to investors, today's discussion will also include references to certain non-GAAP financial measures.

Reconciliations and other explanations of those non-GAAP financial measures can be found in today's press release and in the earnings supplement, each of which are available on the company's IR site. Those materials include reconciliations and other explanations with respect to REPAY's organic growth. As described in our materials, Q1 2023 organic growth is calculated by excluding incremental contributions attributable to Blue Cow software business in Q1 2022. Since REPAY divested Blue Cow during Q1 2023.

With that, I now would like to turn the call over to John.

John Morris

Thank you, Stewart, and good afternoon, everyone. Thank you for joining us today to review our first quarter results. which provided a strong start to the year. On an organic basis, in Q1, we reported revenue growth of 12% and gross profit growth of 13%. We believe these results highlight the benefit of our resilient and diversified business model. Organic growth was largely driven by strong performance in our Consumer Payments segment. We remain excited about the opportunities across both the Business Payments and Consumer Payment segments. We also now have 248 software integration partners across REPAY, enabling our go-to-market to develop robust sales pipelines across our verticals.