Verra Mobility Corporation. (NASDAQ:VRRM) Q3 2023 Earnings Conference Call November 9, 2023 12:00 PM ET
Company Participants
Mark Zindler - Vice President of Investor Relations
David Roberts - President & CEO
Craig Conti - CFO
Conference Call Participants
Faiza Alwy - Deutsche Bank
Nikolai Cremo - UBS
Daniel Moore - CJS Securities
Keith Housum - Northcoast Research
James Faucette - Morgan Stanley
Louie DiPalma - William Blair
David Koning - Robert W. Baird
Operator
Greetings, and welcome to the Verra Mobility Third Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Mark Zindler, Vice President of Investor Relations. Thank you. You may begin.
Mark Zindler
Thank you. Good afternoon, and welcome to Verra Mobility’s Third Quarter 2023 Earnings Call. Today, we’ll be discussing the results announced in our press release issued after the market closed along with our earnings presentation, which is available on the Investor Relations section of our website at ir.verramobility.com.
With me on the call are David Roberts, Verra Mobility’s Chief Executive Officer; and Craig Conti, our Chief Financial Officer. David will begin with prepared remarks, followed by Craig, and then we’ll open up the call for Q&A.
Management may make forward-looking statements during the call regarding future events, anticipated future trends and the anticipated future performance of the company. We caution you that such statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Actual results may differ materially from those projected in the forward-looking statements due to a variety of factors. These factors are described in our SEC filings. Please refer to our earnings presentation or excuse me, please refer to our earnings press release for Vera Mobility’s complete forward-looking statement disclosure. We do not undertake any obligation to update forward-looking statements.
Finally, during today’s call, we’ll refer to certain non-GAAP financial measures. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measure is included in our earnings release which can be found on our website at ir.verramobility.com and on the SEC’s website at sec.gov.
With that, I’ll turn the call over to David.
David Roberts
Thank you, Mark, and thanks, everyone, for joining us. We delivered a strong third quarter, highlighted by 11% year-over-year recurring service revenue growth. Moreover, we delivered adjusted EBITDA growth of 7% over last year and converted 53% of adjusted EBITDA to free cash flow for the quarter. Additionally, we are pleased to report we renewed the tolling contract with Enterprise Mobility for a 3-year term with terms and conditions that are materially consistent with the prior agreement. Enterprise has been a terrific long-time partner, and we look forward to continued shared success in the future.