Repay Holdings Corporation (NASDAQ:RPAY) Q3 2022 Earnings Conference Call November 9, 2022 5:00 PM ET
Company Participants
John Morris - CEO, Co-Founder & Director
Tim Murphy - CFO
Conference Call Participants
Andrew Schmidt - Citi
Gus Gala - Truist Securities
Peter Heckmann - D.A. Davidson & Co.
James Faucette - Morgan Stanley
Timothy Chiodo - Crédit Suisse
Robert Napoli - William Blair & Company
Ramsey El-Assal - Barclays Bank
Operator
Welcome to today's earnings conference call being hosted by Repay. 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, as well as in our most recent Form 10-K 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 earnings supplement, each of which are available on the company's IR site. I would now like to turn the call over to Mr. Morris. Please go ahead, sir. You may begin your presentation at this time.
John Morris
Thank you, operator, and good afternoon, everyone. As you can see from our results, we delivered strong performance in the third quarter across all our key metrics. This demonstrates the resilience of our diversified business model. We saw card payment volume growth of 15%, revenue growth of 17% and gross profit growth of 20%. Organic gross profit growth in the quarter was 15%. While much of the organic growth contribution was from our B2B business this quarter, we are excited about opportunities in both our B2B and consumer payment verticals. As a reminder, consumer represents approximately 70% of our total business. B2B is approximately 20%, and the remainder is primarily RCS.
Consumer and B2B together represent over $5 trillion of annual payment volume, of which we currently process less than 1% on card, which provides support for our tremendous long-term growth opportunities. Both verticals have specific transaction processing needs and have lagged behind other industry verticals and moving to digital payments. This leads to lower penetration rates for electronic payments, specifically, card payments and a general lack of competition, which provides us with the opportunity to embed our payment technology directly into the client and to the client software platform, thereby increasing stickiness and expanding margins.