i3 Verticals Inc (NASDAQ:IIIV) Q4 2019 Earnings Conference Call - Final Transcript
Nov 22, 2019 • 08:00 am ET
Thank you, sir. [Operator Instructions] We'll take our first question from George Mihalos from Cowen & Company. Please go ahead.
Good morning. This is Allison on for George. Thanks for taking my questions. Congrats on the strong quarter. And also congratulations to Scott. I just wanted to start on the FY '20 outlook. Clay, you mentioned the revenue headwind due to the hardware transition to the soft offering, is baked into the guidance. I was just curious, is that headwind still to $6 million to $7 million communicated on the last call. And then also, and really shouldn't the 2020 guidance, what is embedded in both the revenue and EBITDA outlook from the recently closed public sector acquisition?
Allison, on the first question, you're right, it's the same guidance we gave on the last call that is baked into the 2020 plan. The Public Sector acquisition, we have not disclosed a purchase price. It was not a material acquisition, to give you some idea of the size. We -- you'll be able to figure out from our cash flow statements that the purchase price was around the $10 million mark. And I think you can apply our normal metrics to that -- to give you some idea.
Okay, great, thanks. That's very helpful. And then just a follow-up, can you help us think about the cadence of organic growth in 2020. Is it fair to think that should ramp throughout the year?
That is fair, because as more and more of our post-IPO acquisitions into the calculation, it will help our organic growth rate.
Okay, great. Thanks. Thanks for taking my questions.
Thank you. We'll next move to John Davis with Raymond James. Please go ahead.
Hey, good morning, guys. So I just want to start off on organic growth in the quarter. Nice acceleration there. Anything to call out specific, I think you did have a little bit of an easier comp, but just curious, it's certainly part of the business that are reaccelerated to drive that?
Well, your note mentioned an easier comp, and that's right -- in the third quarter, which is our June quarter of '18, we had a bang-up quarter in IPOS which led to the last quarter being a challenging organic growth quarter. That wasn't the case this quarter, we've excluded IPOS anyway, because going forward, we're transitioning to SaaS, and so it won't be a good comparison. But we had strong growth across a number of areas, B2B came in very strong, our ISV business, and of course, the software-related businesses all had a strong quarter. So it's just a good quarter.
Okay. And it also looks like the acquisitions, I guess, you haven't lapped or also outperforming any specific ones to call out there. I think you mentioned -- Greg mentioned Pace on the call, but any of the acquisitions that are kind of performing above expectations or worth calling out?
Yes, our Texas acquisition, I mean our Louisiana acquisition and our Texas