Repay Holdings Corp (NASDAQ:RPAY) Q3 2019 Earnings Conference Call - Final Transcript

Nov 14, 2019 • 05:00 pm ET


Repay Holdings Corp (NASDAQ:RPAY) Q3 2019 Earnings Conference Call - Final Transcript


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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. Actual results might differ materially from any forward-looking statements that we make today. The 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. An explanation of these non-GAAP financial measures as well as a reconciliation of these non-GAAP measures to the nearest GAAP financial measures can be found in our earnings release available in the company's IR site.

I would now like to turn the call over to Mr. Morris. Please go ahead.

John Morris

Thank you, operator, and good afternoon, everyone. Thank you for joining us to discuss our third quarter results. I'm pleased to announce another successful quarter. Our ability to deliver robust organic growth speaks to the strength of our people and the consistent execution of our strategy, building on our unique competitive advantages, including our integrated platform, proprietary technology and our comprehensive solution set.

We are consistently winning market share, and we continue to see strengths across our business. We are investing for the future, and we are delivering strong results for shareholders by pursuing highly strategic acquisitions, deploying new products and technologies and expanding into new verticals.

We are pleased with our results in the quarter, which included volume growth of 40% to $2.6 billion, gross profit growth of 39% to $19.4 million and adjusted EBITDA growth of 29% to $11.9 million compared to the third quarter of 2018.

During the quarter, we made strong progress across key growth categories. Starting with organic growth, we expanded usage, increased adoption of debit cards within our existing customer base as we continue to see the secular shift away from cash, check and ACH payments to debit cards. We continue to win new customers in existing and new verticals by leveraging our sales and marketing efforts with our open platform strategy to convert near-term pipeline of both merchants and software partners.

We added three software partners during the quarter, bringing our total number to 59. Software integrations are invaluable to our business. They enable our direct sales force to more easily access customer opportunities and respond to inbound leads.

In the quarter, we announced that we joined the Jack Henry Symitar Vendor Integration Program, providing access to over 800 credit unions. Participation in the program will provide us with connectivity to Symitar's technical resources to enable REPAY's proprietary payment platform to integrate with Symitar's Episys platform. The vendor integration program is designed to help ensure that Symitar's customers can