i3 Verticals, Inc. has recently released its 10-K report, providing a comprehensive overview of its operations and financial performance. The company primarily offers integrated payment and software solutions to the public sector and healthcare markets in the United States. It operates in two segments, Software and Services, and Merchant Services, and provides a range of payment processing services, software platforms, and professional services to its clients.
In the "Management's Discussion and Analysis of Financial Condition and Results of Operations" section, i3 Verticals highlights its economic trends, liquidity, recent developments, and key performance indicators. The company reported having $86.5 million in cash and cash equivalents and $450.0 million of available capacity under its 2023 Senior Secured Credit Facility as of September 30, 2024. It also emphasized the sale of its Merchant Services Business and various acquisitions made during the year, including the acquisition of a business to expand its permitting and licensing software offerings in the Public Sector vertical, and another business to expand its software offerings.
The report also delves into the company's revenue and expenses, providing insights into its revenue sources, such as software and related services revenue, volume-based payment processing fees, and fixed transaction or service fees. Additionally, it outlines various expenses, including other costs of services, selling, general and administrative expenses, depreciation and amortization, and interest expense.
i3 Verticals assesses its business performance using key performance indicators such as Annualized Recurring Revenue (ARR) and Adjusted EBITDA margin. The company reported a 7.5% period-to-period growth rate in ARR for the three months ended September 30, 2024, and highlighted its Adjusted EBITDA margin for its Public Sector and Healthcare segments.
The report also provides a detailed comparison of the company's results of operations for the year ended September 30, 2024, compared to the year ended September 30, 2023. It shows a 1.4% increase in revenue, totaling $229.9 million for 2024, and outlines the changes in operating expenses, income from operations, other expenses, and net income attributable to i3 Verticals, Inc.
The market has reacted to these announcements by moving the company's shares -0.4% to a price of $23.93. If you want to know more, read the company's complete 10-K report here.
