Repay Holdings Corporation (NASDAQ:RPAY) Q2 2024 Earnings Conference Call August 8, 2024 5:00 PM ET

Company Participants

Stewart Grisante – Head-Investor Relations
John Morris – Co-Founder and Chief Executive Officer
Tim Murphy – Chief Financial Officer

Conference Call Participants

Ramsey El-Assal – Barclays
Sanjay Sakhrani – KBW
Peter Heckmann – D.A. Davidson
Pallav Saini – Canaccord Genuity
Charles Nabhan – Stephens
Rufus Hone – BMO Capital Markets
Andrew Schmidt – Citi

Operator

Good afternoon. I'd like to welcome everyone to Repay's Second Quarter 2024 Earnings Conference Call. This call is being recorded today, August 8, 2024.

I'd like to turn the session over to Grant [ph] Grisante, Head of Investor Relations at Repay. Stewart, you may proceed.

Stewart Grisante

Thank you. Good afternoon, and welcome to our second quarter 2024 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. Those 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. 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 the earnings supplement, which are available in the company's IR site.

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

John Morris

Thanks, Stewart. Good afternoon, everyone. Thank you for joining us today. In Q2, we experienced another quarter of profitable growth with gross profit growth of 7%, adjusted EBITDA growth of approximately 10% and free cash flow conversion of 57%, representing 90% plus growth year-over-year with each metric performing in line to our expectations. Our year-to-date results represent a strong first half of the year with double-digit adjusted EBITDA growth as we aim to capture new payment flows with payment vertical expertise across our Consumer and Business Payments segments.

During the quarter, we continued to make progress on our three main strategic initiatives that will drive growth in 2024 and beyond. As a reminder, they include our go-to-market efficiency, client implementations and a focus on product. In Q2, Consumer Payments gross profit growth was 7%. Our solid performance in Q2 represents the continued execution of our growth algorithm, which includes growth coming from existing clients as well as signing new clients over the past several quarters. Our growth is also aided by the ongoing secular tailwinds within our Consumer Payments verticals.