I3 Verticals, Inc. (NASDAQ: IIIV) has reported its financial results for the fiscal fourth quarter and year ended September 30, 2024. The company's revenue from continuing operations in the fourth quarter was $60.9 million, indicating a 3.9% increase over the prior year's fourth quarter. Full-year revenue from continuing operations was $229.9 million, up 1.4% from the prior year.
Notably, the fourth quarter net income from continuing operations was $7.0 million, a significant improvement from a net loss of $1.2 million in the prior year's fourth quarter. However, the net loss from continuing operations for the year ended September 30, 2024, was $13.3 million, compared to a net loss of $23.7 million for the year ended September 30, 2023.
The company's adjusted EBITDA from continuing operations was $16.2 million in the fourth quarter, marking a 3.5% increase over the prior year's fourth quarter. However, the adjusted EBITDA for the year ended September 30, 2024, was $58.3 million, a decrease of 1.8% from the prior year.
The fourth quarter diluted net income per share attributable to class A common stock from continuing operations was $0.23, compared to a diluted net loss per share of $0.02 in the prior year's fourth quarter. Full-year diluted net loss per share attributable to class A common stock from continuing operations was $0.34, an improvement from a diluted net loss per share of $0.67 in the prior year.
Annualized Recurring Revenue (ARR) from continuing operations for the fourth quarter of 2024 and 2023 was $188.2 million and $175.1 million, respectively, representing a 7.5% growth rate.
The company's outlook for the fiscal year ending September 30, 2025, remains unchanged from the previous guidance, with revenue expected to range between $243,000 and $263,000. Adjusted EBITDA is projected to be in the range of $63,000 to $71,500, and pro forma adjusted diluted earnings per share are expected to be between $1.05 and $1.25.
It's important to note that the company completed the sale of its merchant services business on September 20, 2024, and as a result, the historical results of the merchant services business have been reflected in discontinued operations in the company's consolidated financial statements. The company now has two reportable segments, public sector and healthcare.
Greg Daily, Chairman and CEO of i3 Verticals, expressed satisfaction with the fourth quarter earnings and highlighted the company's streamlined and scaled vertical market software provider position. He also emphasized the focus on growing recurring revenue, which improved by 7.5% in the quarter.
The company's 2025 outlook indicates an optimistic stance, with expectations of revenue growth and margin expansion. Additionally, the addition of Chad Fenner as the new Chief Product Officer is emphasized as a strategic move to drive growth through product development and management. Today the company's shares have moved -0.5% to a price of $24.28. For more information, read the company's full 8-K submission here.
