i3 Verticals Inc - Ordinary Shares (IIIV) 9 Aug 24 2024 Q3 Earnings call transcript
AInvestSaturday, Aug 10, 2024 3:12 pm ET
1min read
IIIV --

In the latest earnings call for i3 Verticals, a leading software and services company, executives provided a comprehensive update on the company's financial performance and strategic initiatives for the third quarter of 2024. The call, led by Chairman and CEO Greg Daily, featured discussions on acquisitions, financial results, and growth strategies, offering valuable insights into the company's current standing and future prospects.

Strategic Acquisition and Transition

i3 Verticals kicked off the call with the announcement of a recent acquisition of a permitting and licensing company, marking a strategic move into the Public Sector vertical. The acquisition, valued at $18 million in cash and stock, is expected to bolster the company's offerings and provide a solid foundation for future growth. The acquisition is a testament to i3 Verticals' focus on vertical market software businesses, a strategy that has been instrumental in its success and growth.

Financial Performance and Outlook

The third quarter of 2024 saw a decline in revenues, primarily due to the sale of the Merchant Services business and the divestiture process. Despite these challenges, the company expressed confidence in its long-term growth prospects, with a focus on internal growth and a revised outlook for high single-digit organic growth in fiscal year 2025. The company's financials, as presented by Clay Whitson, CFO, indicated a decline in adjusted EBITDA for the quarter, but a strong balance sheet and a plan to pay down the revolving credit facility following the Merchant Services sale.

Strategic Focus and Market Opportunities

i3 Verticals' leadership expressed optimism about the company's strategic focus and market opportunities. The company's software and services offerings in the Public Sector, particularly in the utilities market, are experiencing strong demand and growth. The transition to SaaS and the company's expansion into new territories such as North Carolina and Texas are also key drivers of revenue growth and market expansion.

Looking Ahead

The call concluded with a forward-looking outlook for fiscal year 2025, with expectations of high single-digit organic growth and continued investment in product development and acquisitions. The company's focus on improving its software and services offerings, particularly in the Public Sector, is a testament to its commitment to innovation and customer satisfaction.

Conclusion

i3 Verticals' third quarter earnings call provided a comprehensive overview of the company's financial performance, strategic initiatives, and future outlook. Despite the challenges of the current year, the company remains optimistic about its growth prospects and is well-positioned to capitalize on market opportunities in the Public Sector and other verticals. As i3 Verticals moves into fiscal year 2025, it is poised to build on its successes and continue its journey towards sustainable growth and innovation.

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