Repay Holdings Corp (NASDAQ:RPAY) Q4 2019 Earnings Conference Call - Final Transcript
Mar 16, 2020 • 05:00 pm ET
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 intent 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.
Thank you, operator, and good afternoon everyone. We know that COVID-19 is top of mind right now. So, we wanted to begin with a few preliminary thoughts on the virus and how it may impact our business.
First, the health and well-being of our employees, customers, partners, investors and analysts is always on our minds. We hope everyone is staying healthy and safe during this difficult and challenging times.
Second, as we all know, recent world events are unprecedented. While we don't have complete visibility into future developments, we are monitoring the situation closely. We believe that our diverse merchant base and the resilience of the verticals we serve, as well as the secular shift to the more innovative and integrated payment solutions in which we specialize, provide us with unique characteristics that should help insulate us in any type of macro environment.
Just a few thoughts regarding our loan repayment business. A large majority of the payments, we facilitate, are non-discretionary financial obligations, that are recurring in nature such as auto loan payments. These types of payments are usually set up to be automatically paid and are still very necessary even in an economic downturn. Payment volumes could be adversely impacted in a recession, if consumer credit were to tighten. However, this would likely be somewhat offset by additional lending to higher FICO-score-consumers drifting into the non-prime segment. Additionally, we think debit card penetration would accelerate in this type of environment.
And then, with respect to our B2B business. These types of payments were also not discretionary. These are businesses that need to pay each other for services and goods rendered. This world continues to remain right for digitalization in real-time and we have the full suite of payment solutions to enable that experience.
Today, we are providing our outlook for 2020, which Tim will review shortly. Based on what we currently see in our business, our discussions with our customers and our experience operating