RPAY - Earnings call transcript Q2 2020 | Repay Holdings Corporation

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Operator

Greetings and 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 and in our most recent Form 10-K filed with the SEC. Actual results might differ materially from any forward-looking statements that we may make today. only obligation today, them, or required law. speak not we except statements by any assume intent forward-looking as and of do as The to update discussion provide to – non-GAAP financial to In to certain additional effort include references to investors, an today’s will measures. also non information IR as on in the explanation financial nearest site. An well measures these the our these of can financial non-GAAP reconciliation of found earnings GAAP available release non-GAAP company’s as be measures a measures to like now call to would the I to over Mr. turn Morris. Please go ahead.

John Morris

Thank everyone you, and safe during We operator, and good difficult afternoon, and has everyone. hope challenging this stay continued period. to healthy

pandemic. As the even value you has release, the become from more business can our proposition evident to COVID-XX onslaught see our since the of

reported card growth profit of second quarter, in On XXXX. growth profit. gross second the payment and XX% organic the basis, saw both an quarter compared to For we we volume of gross XX%

our today’s few strategies. call, and made the also they some wanted give how as to to second recently. first For announcements we growth update recent near I reviewing and further as a trends spend long-term more have business want our quarter I been in minutes well how have on an

more Lastly, the about year. will detail our Tim results the review in talk and remainder of

payment demand during clients to our implementation quarter as increased into offerings the our have environment about and accelerated the electronic new experienced trends in second for REPAY quarter we in Now across our today’s review our existing for businesses think and of how several we July, and of customers capabilities. have

customers electronic lenders the exhibit to payments. adopt crisis resiliency and business as repayment has loan remote Our throughout as implement continues and more it

debit send to as from product increase prepaid product, that demand and in an accounts which funds cards, lenders eligible through is electronic. to shift physical and Our instant to disbursements continued has see borrowers’ funding to bank directly lenders allows our borrowers

nicely rebounded is that pre-COVID dipped BXB back to volumes April in levels. now and early While business in May

due to taken rebound. mentioned business As our exposure, has TriSource previously, retail to some impacted than so others it was more longer

TriSource However, now and to nearing recover May late in volumes are pre-COVID began levels. meaningfully

wanted I those mention client majority for further is existing business long-term derived strategies into and near of how announcements tie penetration The our of and growth. our to a recent base. Next, growth few from our

existing We expect driven by usage growth and expect portion continue organic the existing that be term. adoption we volume for significant these the our A our increased continue industry-leading with and growth and XXXX in to in to we which of to customers, will clients have be long our retention. from comes expanded near case

software In by expect verticals This at addition brings new our continue aided integrations customer client force. driven wins to end This which of integration, partners existing to the we organically sales will total the existing of June. to we added XX be in by growth, and XX direct new our during experience to quarter.

Corelation acceleration well solid quarter, integrations. with we closed management variety penetration. our sales for Katabat partnerships, few a This profit new which added for us. a A unions as our Inovatec of is the the on During expanding and efforts us our and that smaller integration due Katabat, quarter. following our quarter, collection, gaining new further recently of address, Turnkey service all announced debt to business already the Symitar Lender, of and first we a as credit focuses record traction in record-setting receivables achieve helped sales gross X verticals

relationship which presence exciting. in makes as Canada this and U.S., and we partnership a are So growth. more hopeful well the valuable can help Inovatec even have this us Lender new increase Turnkey as strong

cost announced and efficiencies are will further, our describe actions. still continue focused on operational Tim finding to we previously As execute

management AP XX currently of automation payments growth concentrations moving property the supplier outbound XX,XXX check. as has boasts Dealertrack our acquisition ACH beneficial in always for integrations over is provides with we many as accounts a enrolled and plus be including access technology in is variety strategy management it CPP and of executes automotive, which services. fuel The to AP space, company. maintains DealerBuilt vertical, reasons, services relationships. the growth rapid or trillion M&A, industries. to as platform This driver automotive company’s for its thesis. a present impressive weeks has or of result as cPayPlus’ to tool of list fuel automotive, Now, efficiently a industries acquisition trends automation property a an experienced card, continue been an REPAY’s virtual ago, the an services via cPayPlus this in integrations A clients’ as announced BXB $XXX to few growth property and of and virtual well ERP cPayPlus, CPP, billion. the pandemic. COVID-XX the business management favorable cPayPlus, including strengthening will of card ERP payable the and well to payment existing provider opportunity existing volume estimated experiencing

intend estimated unlock $XX integration-oriented of market plus employ to more technology also trillion the for automation. SMB our We competencies quickly AP to

our which this one-stop AR automation acquisition the of especially to and solutions payment client base. the our The solutions AP acquisition to lines. focused business REPAY CPP, existing of across customers. is We forward transactions. we coupled accelerate BXB and business of our of sales CPP AP now enable both provide all with software our side software And automotive integrations. REPAY’s payment business the around expect on have a CPP will as we us and the to With is XX case AR, with will BXB go believe a to of be shop, complementary majority automation makes

CEO within Finally, REPAY, join leaders BXB to and we as Darin cPayPlus’ Seth business. cPayPlus’ are Barnard, Horrocks, thrilled serving have the CTO,

that new large, and pipeline M&A attractive for to look underserved. as active growing along verticals Our are remains verticals, current in with continue we targets

of TAM our other market, internal and the wins recent due within I’d over this sales like offer Another our key addressing the year. our as to take has QX is to acquisition, to captives. incredible during to $X as team opportunity expanded up, well initiatives discuss Tim dedication by mind. to more outlook period. health, as Tim? stakeholders, our continued these that call and To our of other wrap well-being, the our CPP business with during over wanted we turn be work our now trillion. Their results well are continue continues remain of the business, the our driver the I Their of for including unique us along inspired has This, we that to to top to Mercedes mention auto to the to prime say solutions well diversity detail that position and to go now actively I I lending will approximately times. as in

Tim Murphy

John. you, Thank

to our all financial macroeconomic Now, quarter I review on of COVID our for move metrics. due Despite guidance of the let’s to the strong QX environment before the second tough updated our financial remainder in pandemic, results across results key delivered XXXX. the REPAY

now prior refunds. metrics. quarter. also Please the contributed virtual related $X.X to million, our volume due revenue note QX during over revenue are card second from year’s tax in in of million and the APS, approximately down second was QX seasonality card quarter the second XX% an volume tracking Total $XX.X For was Note the over second quarter. we Ventanex quarter to are $XX.X revenue TriSource, that second year that prior typically billion, increase of volume payment our the of an increase payment quarter. XX% and

quarter, other APS, the million and The of million primarily of to Ventanex. compared Moving second costs were to was the due $X.X of XXXX. in TriSource, on in to the expenses $X.X additions services quarter increase

quarter. gross those the However, an XX% the increased On the of of in flat when essentially $XX.X quarter additions, second to the XXXX excluding Gross year was profit prior an organic basis, XXXX. of in compared QX. over quarter was profit increase second XX% amount million, second

a our and metric incentives. increase compensation customer $XX acquisitions. our sales reminder, how how due quarter to as for added compared of to share-based second was costs a the team new and increased was XXXX. primarily operating this SG&A key million is we gross As from in deals structure we $X.X hiring, is price profit million us, The

$X.X Second from the net forma compared was was The XXXX. SG&A of of as the income quarter net units offering the Corsair higher second tax exchange the quarter resulted previously. fair of our loss in to decrease related result million well asset, in to of pro the follow-on which described adjustments $X.X mainly as million value receivable

tax million includes income net adjusted share. adjustment. this quarter note, Second was effect or Please $X.XX a per $X.X

the over million, quarter. Lastly, second second an quarter XX% EBITDA increase adjusted $XX.X was year’s prior of

EBITDA increase well contributions XX% was revenue second Second EBITDA in is quarter of of prior This organic XX% total as both TriSource, as adjusted the Ventanex. a quarter. as growth year’s percentage a and result APS, to adjusted compared from in

a and EBITDA our TriSource, below loan As repayment slightly reminder, business. margins APS, are Ventanex

outstanding share. Parent On of on issued cash, which period $X was in remaining mentioned, from payable closing acquire Class materially impact shares. XXXX units REPAY’s cPayPlus closed the common in with of will representing we interest to acquisition upon an company offering growth hand, we liability of Proceeds for at our corporate not of $X closing. resulted were million Hawk shares $XX XX, July at our targets. number million which follow-on financed acquisition per June John of the become and The Holdings was net general On depending the net offering, cash purposes, of where equivalent up XX, announced warrant A certain to for X.X redemption used $XX million X of the million, cPayPlus on we for of new million quarter achievement expired. purchase As including the and The X, the July of stock paid may limited third leverage.

and the of approximately $XX all in issued shares. X As result approximately a million million warrant-related cash company transactions, received

very cash strong. our remain liquidity So positions and

un-drawn As July draw we amount and of million a cash of liquidity million the capacity of capacity delayed on had $XX sheet, un-drawn million million. of revolver loan total for $XX XX, of $XXX balance term $XXX

leverage net approximately our Our covenant pro of leverage which is below net is X.Xx, current forma now well X.Xx.

not As as reflects new the the shares we of This does unvested approximately converted previously, shares. but an XX.X on shares from basis. described warrants XX, outstanding July had include million

equaled shares unvested Our including XX fully approximately shares, million diluted shares.

for that and on may that to quarter call, macroeconomics the make our out business market-specific we our the of three illustrative over first remainder assumptions year, the of laid remainder impact outlook moving year. our in Finally, on drivers scenarios the

have played out, scenario have. all spread to Some not recent but due in summer, assumptions virus this one the

be year. the we quarter giving to second provide reacting the range million, confidence $XXX However, no and of $XXX are call, now year. our payment be million COVID-related to between updated or businesses which the revenue and That guidance total half and consumers create card billion, EBITDA range clarity have first be for to substantial we impacts, this merchants, could being million we between $XX million billion $XX.X and to million believe expect enough $XX $XXX be in how said, to economic This additional to since $XX environment, on us between $XXX assumes and unforeseen further adjusted profit an gross between volume duress million.

in In I $X take cost costs and areas: we to these from prudent turn experienced continue key expense the will management. approximately remain we in have call savings now hiring prioritization, To-date, back operator on Operator? months. and cost we in to the questions. operating vendor to the terms focus three actions will your of over closely actions, managing coming million management

Operator

KBW. Thank proceed with Sakhrani of you. first from your [Operator line comes Instructions] Please question. with question the Sanjay Our

Sanjay Sakhrani

Thanks. afternoon. Good

guys you that impacts. any assuming not are say heard I guess I COVID-related unforeseen you related So,

just And So, relationships. of of if bit gains and August making I just any spooling more some around talk trends maybe are you of sort July assumptions could wondering was a of some about there little was the well? you share and the on details new as

Tim Murphy

Tim. Yes, for hey, It’s the thanks question.

one our recovery. was a analysis, scenario – original QX scenario in the we So

We and virus are summer. this over QX have now surge seen in we the

continue with practical that are put trends July to us strong. these enough now. of events be although loan seen have be to again, of But comments continue we volume confidence the around trying some right we strong do into just and of we August, very those around are the repayments through we early So particularly within mindful uncertainty some have ranges out to

we of and anticipate those QX the of of Some provide experienced being potentially out and that wins wanted could be rolled potential customer mindful new in again, events we be QX just which faster to implemented But actually to could around upside than some it. are we us.

Sanjay Sakhrani

trends? seeing And strength? the kind July mean, further you of on I and anything August are any

Tim Murphy

early and again been yes, has loan July Yes, repayments. driven August by been also strong has strong

we to strong above It’s dipped it back July coming taking at strong really longer pre-COVID while to retail and actually the early As levels, of within have has see is come – BXB, mentioned, in pre-COVID just seen back. TriSource it’s has, return it’s been specifically, levels, now but which because BXB, and April, nearing but we trends in exposure loan of really payments we August. some continue

Sanjay Sakhrani

it. Thanks. talk just And Got M&A you in unfolded? how fin-tech in could your about that? curious getting pretty you John, just talk significant auto into been general, opportunity perspectives maybe environment, to just get update so that has maybe maybe resurgence an the valuations us I think clearly, if then has I there could heard and prime lending on give across on about tech you And

John Morris

your Sure. for time. Thank you

So we have – own organic our perspective, pipeline. we from our had always see M&A

actually We team build there there. we that. additional our an continue out continue in to on to help as initiatives build member July We brought to us

the our do a market. are look things of Obviously, be we look try that doesn’t never for. We we to criteria in see and the to selective. best of deal many we We meet able for want to different some the some things

some I do see could our we We there, seeing that choosing are to We best some were as things. be as think we things selective We try be said. actionable that. to

be bit little could different. depending on vertical, So it valuations, the asset, a the on depending

behind we as would our see that partners that value we not especially think with long-term in those at do expect initiatives integrated but would create they can so and particular historic sales some we technology. we take put think opportunity, be well. And especially And assets, that when lows, we and then around the our we

have because yes, in wanted market, those – to On we pipeline. our the finance mention many captive Obviously, an were we we’ve we auto on. area that it’s touched of

as included are Those to not like things at far in cycles. a automatically that they are repayment market ability were the if you happen, really As those our markets. don’t those that, vertical, looked pursue, into loan translate to going longer sales It’s that. addressable

market to it we offerings we some thought out will through just to come look process. to, appropriate we we mention hopefully some We as marketplace as we have next we those opportunities able in with there to those out – of potentially wins technology Mercedes, So our of and out with years, be did come great think, also go those. as will the bring additional the do some to we and value was few and think as that come contract

Sanjay Sakhrani

Thank that. you. Good with luck

John Morris

Thanks.

Operator

with from the comes with question next your question. Please line Joseph proceed of Our Vafi Canaccord.

Joseph Vafi

kind talk there more puts kind of Thanks are for was what on bit down terms I Good my growth with you those of if perhaps delinquent I pandemic? results. those the guys. little in – a offset a in expansion kind of you loan you given in by a And seeing and little on and going the in takes of book bit Hi, taking have question. as about follow-up. maybe can more wondering maybe auto then payments drill and clients, portfolios

Tim Murphy

Thank Joe. you. Hey,

a our of delinquencies. in off. a So, into of to we to We have collections we our May. lot help tools are deploying late did of see March There auto where customers, April lot early and think leveled have with payment increase been with in reduce some delinquencies instances those actually

vehicle. public there cars time on Also more in more and used to second go May around the to that back our who were using auto work see early originations a now demand into transportation that of for and out and those that there is people as suburbs generally into We given August strong back roads came and going well. to much. moving out maybe the the maybe as continue really think even down – strength are city requires So, we then not

there. think So lot a demand there’s we of drivers

We customers. our are seeing that with

hearing We them. that are from

we as auto, drivers. of think biggest And is volumes seeing there’s to payments again, a also just continued our it one well. growth shift within are which, in card We the organic

was bit delinquencies originations, but that’s and we think a related nicely. a back there to dip that of So there come

Joseph Vafi

contribute relationship quantify they it if on Okay. evolves? attractive. That’s frame relationships, of the kind then the of touch wondering strategic mean kind may you P&L was forward you there helpful. sound just much. recently. And I of moving how as strategic you – or it’s could how lot they announced a And the so maybe opportunity clearly, Thanks we basically to I to them that is have

Tim Murphy

Yes.

referral So at We We a do these software see agents. rely anywhere be our to XXX from these But a sales have do part merchants direct ISOs force, or have even partnerships key platform to we as or of necessarily plus or can larger. like. on partners. we having on software as all distribution don’t we their which XXX strategy. lenders relationships XX And they

And that of for efficiently. a it’s all address to to to so different And think access just these parts this large us markets them from enterprise end more small way merchants. us allows we merchants

think very organic of we growth it’s part strategy. become So core our very, a

up We acquisition. the now with cPayPlus to XX are

further penetration are And in there. adding facilitate strategy. growth all providers the We on internal are existing across Canada, now we have new of quarter which, just with but finding each have the part distribution verticals, focused again, will resources which partnerships. partnerships again, also relationships software ones is We

set to going of focused provide XXXX. up us are And kind toward. resources on going and really to think remain something that’s into that’s continuing So we we nicely

Joseph Vafi

so Great. much, guys. Thank you

John Morris

And little of a had X is to we said acquisition we you can have see, goal add quarter X per our bit to try second to Also, than cPayPlus. our quarter. what the prior more that in as Yes. to is

is driver us It force. we growth part and does relationships as drive help a So are us. we for growth as we It sales become about excited that. to of a direct key accelerate our our key with try critical

Joseph Vafi

Great.

Operator

next with Davidson. Our proceed the line question Please D.A. Peter comes of you question. from Heckmann with

Peter Heckmann

Hey, been estimate it TriSource? been said on million you could $XXX,XXX, that acquisitions, contribution. was in the have about another impact was there, the that pandemic? $XX.X primarily everyone. The afternoon, not added you have $XXX,XXX? I it $XXX,XXX, guess And might I because good what of wondering had Would

Tim Murphy

Yes.

primarily that million TriSource. that’s say good a it would estimate. would between not TriSource, probably I is from disruption, $XX.X coming up end and had $XX that So was we most it had of but yes, somewhere probably million and

Peter Heckmann

Got just should of about the quarter additional it. And fourth of government terms thinking it. be or Got maybe timing in of any then or about anything quarter thinking cadence stimulus, there? third we the

Tim Murphy

stimulus additional Yes. I a paid lot into providing of do think being mean April think there’s to We us previous that now. toward end the strength I package attention helped then of obviously May. and

that currently some I had we And we student us. customers, of sales QX today. being are did help think think It’s then holiday into and could so and strong payroll the of monthly on gross unemployment, that, certainly out the so mentioned When our months the as that impact how what QX. on there consumer. benefit tax then profit. implemented evictions forbearance in we say rolled enhanced QX, takes. – will the customers’ think that depending loans. on think the Those that think and going of think recurring And sales, there’s kind of mean I form will be moratorium will extension we unclear extension we form closed new an I we be there be will earlier, which we yes, – really, in to really and But help the QX

QX all of I will said months as XX benefits well of us we that on a really of we So because get for think earlier, sets gross QX and implementations. full then the end those XXXX recurring profit monthly up new and

of couple – in some those of the next moving kind the pieces quarters. that’s So of

Peter Heckmann

Okay.

that’s in I get the will Okay, bank queue. helpful. Thanks.

Operator

comes the from of Chiodo Timothy Credit Please with Suisse. question question. Our with line your next proceed

Timothy Chiodo

to towards existing your growth could clients it with that. continues that for It you be topic bolster slides I The us we Thanks know that penetrating at merchant is though opportunity and Jack. everybody. there have outlook, base. evening, organic talked growth. medium-term number as typically Great. touch growth medium-term and component least John, comments, and mentioned, on does in wanted of new that about heavily of that larger And to the Good a Tim, this mid-teens sort earlier add weighted appear further or your your I to to additions. be an in

about Mercedes when you being March So I think additional about the the quarter that of think this credit also the customers. unions credit within signing, new for record that, mentioned I opportunity I for and new and Symitar Benz you April months wins, have think union

components? Just you if little terms the Clearly, the out think if additions largest you mid-teens bigger algorithm how a is of term. that you quantify could opportunity longer part bit maybe of the that a existing wonder break but that be could growth new down maybe – in it

Tim Murphy

Yes.

that comes customer So about customers. me, seen excuse organic historically, we growth from XX% of existing – that have existing

lot software your a with lot – partners big our point, being new efforts, to we then a Mercedes recently we new accelerating verticals the a have with win. with have and – added are sales a We added of

I coming do could new. more So think from that there be

direct and and to software sales large, that do I majority lot But a with added And – sales the be bit, are folks there organization, biggest of facilitate we partners last organic think our a think we a is cards. reps growth still a that’s just think have themselves few going but support the have the and we markets adoption of still from to So additional maybe catalyst so that. our been under-penetrated perspective, drops that, XX% expanding think months both so we a driver to and sales that to and accelerate verticals growth usage card real the opportunity. that. These are

see will coming to It in think take to that, do bigger think right. but really new, part a I point. might of I So that that’s do that numbers, quarters few become your from the organic probably a

Timothy Chiodo

great. Okay,

John Morris

enhance the cPayPlus the Obviously, call integrate we our Tim, with as I continue side. to I our BXB there, as offering with offering want supplement in and well sales combine that that us new with and this well. year, growth up we of the into AR our solutions, think could as as that we latter part on that mentioned for set to next for year

Timothy Chiodo

could Great My point. on Mercedes-Benz quick branding is on the earlier, pay via that the Thank is follow-up John. notice and displaying option we you, financial logo clearly And referenced REPAY. the I website, any Mercedes, which early but the up customer. to give services was you how you quantify to the general, just days in ramping of Mercedes wondering just that way, going with in it’s any if asking specific update, the customer in not us new

Tim Murphy

on – strong across and channels. don’t full-scale being, previously, text, say Mercedes. really solution like all said, very different open And IVR our really with are when strength marketing going the there’s card basically we any that we had which speaks offering. about. it I are channels, and which of mobile site, been they I think that well. the the We of Like you very mean, adoption that their know And meaning happy think to It’s we way are

be efficiently, on to the require oftentimes and things technology, high-quality in call, so they And to and quickly customer do mobile touched really like their a is device. this able prime on they more

that’s that really tools And been actually from numbers. so access previously, having and starting Mercedes high in the I pretty opening are those and to to think we see not

it’s So so very far. well going

Timothy Chiodo

my lot a questions. Thanks taking Great. for

John Morris

Absolutely.

Operator

Craig question with proceed comes of your Maurer next the Research. Our question. from Autonomous Please with line

Craig Maurer

Yes. questions. Good Wanted evening, Thanks. to ask two and John Tim.

grow thinking of First, to Tim, down the – you we cadence if the well range not XXXX comparing looking car am if looking can looking are you rate ask back to as in get are guidance, north from to could captives? the at going at are to characterize secondly, if of we opinion? ‘XX, could out But your payment something volume comps big for high or you at, some yields we is that looking materially think slowing when we Thanks. guidance, XX% have curious growth really natural or are used – growth you but teens I returning market you the there pricing different over. to And the versus the are

Tim Murphy

Yes.

growth lot cadence So I most lower the of have of TriSource, I volume terms volume. volume and a mean, in our been is business margin. there, has does impacted But as mentioned, of the part which

are our can And QX, see, you pretty gross down. QX has up as in so margins volume profit actually come the significantly versus but

we up thoughtful being so – back just are how and And think ramps we to be in QX. that QX trying about

perspective a going XXXX. mentioned there will now up nicely from with with but Assuming it volume card set year into that does We fully ramp that anticipated, also are bigger opportunity tracking of volume payment had I up in Ventanex, by the end have of a some now that cPayPlus. numbers. the to virtual we we the levels our us we

numbers payment see will part material into is cPayPlus be come will quickly, you a now, so the because growing and – volume XXXX. that card so become there of And more virtual will

of next So I with growth – those But mindful of in year. two the events could somewhat early of from kind our being the second are around acceleration half practical we into XXXX us. year the again, mind, and factors there just this in for with guidance of current see be an would

take XXXX come lower larger are make coming with couple services these but think higher meaningful go if and volume auto there well. a more rates, resulting a add to we then into at get. than lower and TriSource larger – would then impacting customer. of from volume. a course, might I just We like opportunity virtual channels volume volume take potentially of as they so volume like if But to find of upper card gross will points and And of And that get are terms on in to dollars be those just cPayPlus’ with more ways rate. a is us that certainly, And actual more the and can the profit

like and gross we dollars that So always of from on even lower rates. revenue of try still that processing vendors have to in reducing perspective, a and profit out our like that that larger we primary our to we more can gross customers works is metric, still take been saying the profit work profit, that, way those costs bring with revenue consistent we and with have gross take to

Craig Maurer

so Great. Thank you much.

Operator

comes with Andrew question of your with SunTrust. Please question. the Jeffrey from line next Our proceed

Andrew Jeffrey

Hi. afternoon, Securities gentlemen. And good Truist actually It’s now.

a appreciate couple time. questions, and of I the So

of about what in if of you is wonder specialization of integrations. the in John, assume opportunity loan achieved ERP am a First I analogous But of you’ve Is in all, I an thinking address, Is integrations the I one example, card the could in there are BXB there offering in and in auto. has cPayPlus space things differentiated analog to repayment standard, think really the loan distinguished standard that BXB? ISV REPAY lot track, for debit integration the repayment? providers. dealer the ERP that build a I the to

John Morris

little different. customers the We there. loan Good existing cross-sell do this. some of But ability create is Hi, there opportunity integration bit a think is BXB a Yes. little different the bit BXB opportunities our Andrew. repayment evening. with than piece is and to unique

enhance side. AR help is channel there, integrations with APS that. And drive also same some growth offering that’s features opportunity is that, AR rely Well, we that automation, to As or but dealer management those case. we the, but those we with piece the be partner think That automation we And the business, add that to side system situations. on integrations automation to with – to an channel partners us continue the we coupled on do loan will to – various some there we AP who on AP some partners there our in to think of drive growth there’s there the say AP side, continue what there. opportunity management there system our call, is

so seen signs of systems, bit ability have ways could our a from and are press about seen automation. those always many – are management But lending not loan these customers side, Remember, little we’ve the the times, Although are even institutions, non-banks different on be to many generally existing ERP we release, from a that. that perspective. accounting – finding still do financial talking speaking, about couple the positive for from systems inquiring

all like had Just payments spring, to abilities. with about electronic happened the businesses we in what talked deal

need acquisition continue So our new out integrate we as again, we strategy we – there. enhance continue out offering, lay – to together our to lay to our

why to We do the will as there, – but execute, we to intentional we ability opportunity want there. very will but opportunity the proof that. in like we the see We’re to actually our be

Andrew Jeffrey

And away an from shift loans accelerated installed for that. the there’s paying some think a you’re you’re is of the growth time. thanks like a Okay the you the I that’s result from a the wonder, that’s of seeing or then perspective, seeing of wonder consumers in do some ramp, card for borrower debit base. or check-based new standpoint, behavior growth the base and repaying – installed with first in if I And

John Morris

This is John. Sure.

talk are is to the happening We it’s and So the account. send historically – bank fund that you it What the you volume a here loan loans knew was With because is sure new repay saw, way, here direct new seen consumers’ for debit, lender. heard if funding product you one way. we us most what product loan because not for when we our for brand-new that our us think before – funding, you had thing usually we’ve where that instant we a definitely is Visa about we our directly. MasterCard, was

see sign well. customers. that’s future think, saw, that the a organic about positive think of think that in repayments talk as we we do actually opportunities to funding, accelerate existing payments. create our continues growth again, for We we additional If and on to can we drive adoption just we So continues things some the based or as

don’t payments. we see of all Sometimes their

would time. take It do that repayment we probably And For for we side. do cash while check the longer on forward thought the trends do very things we see that example, their side. we have think could some a loan some we long-term that’s would us – see over think – did see in But would or pull can volume, and we – think never we wouldn’t we little their definitely right? positive shifted, to

we far, So see there. strength positive

Andrew Jeffrey

a trends pandemic has of Appreciate the Okay. help. in Yes, lot accelerated the motion. that are already Thanks.

Operator

Our Please next your of Bob question question. Napoli with proceed comes with from Blair. the line William

Bob Napoli

guys Hope thank Hi, Tim. you John well. are afternoon, you. Good and

strategy ERP need? organically the that BXB team on acquired have you and together? a you need? do need the it? to you to And additional try on the have bring Do the business? or So those stand businesses just do where integrations for you you follow-up have that bringing to you Do you technology something then do BXB acquire as else together. three you to you far maybe do as bring Can And all

Tim Murphy

it’s Bob, So Tim.

that long for of there BXB was founder of we very the things a team cPayPlus that and liked has several about think been one So time, we the payments business in decades. the management that

So know that help to execute the We management solution. an APS merchants asking really adds strength have some at of there. to that AP for us been our

really cross-sell these a happening. and it started accounting can. just probably efficient there’s So direct automated traders choosing more make to already The way want has they and payment that solution, any ERPs they one want there

of AP. cPayPlus So that’s their announcement Wonders we’ve from inbounds to of as following had automate something have a John seeing. then looking the that said, been that we’re couple And

great a strong that So industry hire Darin additional going think Seth are and to to there. we’re seeing We lot they of it BXB think happening, contacts to continue already we help talent. have and really

together, already in see momentum and So just of positive we and really coming near-term are movement are the that’s very cross-sell, a much starting initiative good terms so so to pieces there.

John Morris

Yes, Bob.

We do organically will continue that. technology, in have talent to to and we invest and can

put we will be think let that But say, accelerate that’s to We all we the things can or fit we say, of Anything ability it and upon all opportunities there the with look I a finding that we this we fit that piece would couple inside of if do something BXB. that last help we were of there, verticals that look with kind those us. things, well that would kind some significant, well would of us some provide if think us with But think would some to me at find we opportunities subject open also here. verticals especially thought sub to that. accelerate our we act up would of have would future, we

Bob Napoli

the Thank card cPayPlus have virtual a you. from They team from And came FLEETCOR. the pretty business. good

card builds You you virtual talked on What about or partnering virtual capabilities? – and is card. which virtual the technology are your – and around card today

John Morris

Yes.

our today, we care a of passive offering. in health virtual bit a remember, So little have card

ability enhance the our we to own still customer We obviously those the at have the the in and control we relationships. So those platform But relationship. sponsor processing. banks would of many look to or can entire build of and we can outsource ourselves bring features to, extent that functionalities least some

to would own and relationships Some time offering. out look of inherit some there, go amass we behind existing our over those, you quick

Bob Napoli

you year Do revenue, year? the to But of are your does And year-to-date mean, the �� you mean if you’ve a at how things Okay, been view year look just first you versus ago? lot how I you business at how implemented. signed? thank the ARR do looking that haven’t sales obviously, new last annual compare this or a it question. you. And then I last track

Tim Murphy

at look profit monthly by gross recurring quotas that’s and monthly profit profit. gross sales, – gross We

months and gross so sales acquisitions, the that, quota goals. look we and we both direct profit exceeding often or are expanded organically at force our and we’ve And through hitting

multiple of of beyond across increased and the folks also just So were we’re opportunity number software where year-to-date the number verticals, well sales we integrations. year broader last given the increased

different So business avenues a of we’re to that. for seeing win us and lot now, there’s

And monthly but track terms of that’s we’re we ahead, so say and it quotas. how profit monitor in I’d gross

Bob Napoli

Appreciate it. you. Thank

Operator

next [Operator Securities. Grondahl Our line Instructions] Mike comes question. proceed your of Northland with question from with Please the

Mike Grondahl

impetus mortgage then Knight. any to the Hey, Anything things. payments, think And good border? and on all for was with mortgage on Fiserv main I that Black the that’s afternoon activity out also sort integrations with there Two the Canada, call the things of Ventanex guys. update north of out

Tim Murphy

Yes.

complex well. the but has the They unique business they within Ventanex does able be on they’re and typically do couple monthly the lot So if like type wins really transactions what in working lenders as in to just integrations payments, mortgage active customer actually principal nice they’re refinancing and them, refinancing or experienced environment. do. a processing of activity, kind a processing they have switch not servicers, switch been there’s that’s some well that a They’re of and for that mortgage of to of

now sales including nicely. is business been integrations. in that We’ve all software the So doing then And have our pieces Canada, place building we new team in there. out

real that’s to And see some going again, another traction XXXX. growth so we’re into starting there, driver And too.

Mike Grondahl

it. you. Got Thank

John Morris

pandemic bit had we’ve – on the but little as of mortgage we’ve the itself adjust servicing positive lots had side, as A that to additional this market longer cycle it. seen whole Got conversations. much to has as sales well. But

strong looks pipeline there. Our

with of future can key the of about excited like do in the looks what are our some we offerings area we some integrations So there. that and

world. in sales little that a bit longer Just cycle

Mike Grondahl

Okay, okay. Thanks guys.

Operator

in queue, questions over Mr. no back the turn left any to the Since there Morris would are call like further I to closing for remarks.

John Morris

Yes.

much, time and for evening. So us. healthy. appreciate look third safe pleasant wonderful Good to We quarter everyone, today. update time. forward giving you Thank November. your Really thank you for bye. in joining you our continue a you to an Have so your We on you hope call be

Operator

teleconference. today’s concludes This

a lines Thank time. disconnect day. at for wonderful you and You may have your your participation this now

Repay (RPAY) 11 Aug 202020 Q2 Earnings call transcript