Repay Holdings Corporation (NASDAQ:RPAY) Q3 2024 Earnings Conference Call November 12, 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
Joseph Vafi - Canaccord Genuity
Andrew Schmidt – Citi
Peter Heckmann – D.A. Davidson
Rufus Hone – BMO Capital Markets
Alex Newman - Stephens
Patrick Ennis - Credit Suisse

Operator

Good afternoon. I'd like to welcome everyone to REPAY's Third Quarter 2024 Earnings Conference Call. This call is being recorded today, November 12, 2024.

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

Stewart Grisante

Thank you. Good afternoon, and welcome to our third 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. Q3 represented another quarter of profitable growth at REPAY, with gross profit growth of 9%, adjusted EBITDA growth of approximately 10%, and free cash flow conversion of 139%. Our year-to-date results represent strong double digit adjusted EBITDA growth and the acceleration of free cash flow conversion towards our updated full year target.

Throughout this year, we have been determined to make progress on our three main strategic initiatives to drive growth for 2024 and beyond. As a reminder, they include our go-to-market efficiency, client implementations and a focus on product. Our Q3 consumer payments performance represents the continuous execution of our core growth algorithm, which includes growth from existing clients as well as signing new clients over the past several quarters.