RPAY - Earnings call transcript Q1 2021 | 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 filing 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 financial non-GAAP to In to measures. additional effort include references to investors, an today's will also certain information reconciliation are GAAP earnings of a which financial each on be in non-GAAP our measures and IR well these measures earnings site. of non-GAAP explanation measures are can these An as the company's to release supplement, -- available financial as of the newest found I would turn the to over call now like to Mr. Morris. Please go ahead.

John Morris

the our and everyone. by open followed business Thank good the you, we I'll wanted which discussing on of the including first I also to to for BillingTree, today's a to on of turn then in review discuss acquisition operator, an our growth thoughts remainder update afternoon, today. quarter on On of quarter, call, and Tim our how over it XXXX. detail announced more first with executing strategy, we're

pleased These across our businesses. and revenue payment total the growth in gross volume were with results of performance quarter our XX%, card of growth XX%. growth EBITDA with of of adjusted XX%, profit all XX% of strong experienced growth are We

TAM, On underpenetrated business. the positions strong. auto our auto industry the the loan one parts and sales with of large repayment as be This, tailwind payments coupled side, continue to a to fastest-growing digital of

focused also a buying mortgage we specific business the on servicing well are the home while are within of and market, transaction fairly mortgage Our And increased very processing we mortgage. type origination due activity. in quarter performed refinancing to monitoring

for a to continue macro in will there believe any be our need technology we So environment.

our mortgage payments seamless live streamlines Payment of went integrates LIFT and that credit we servicers IQ and on union with XX a experience. messaging X quarter, a our platform, platform top the proprietary XX and top the During for

Advisory servicer top We to XX a the mortgage also Board. STX added

for goal Board's standardize is errors, and Advisory flow, eliminate STX delinquencies the reminder, reduce payment experience and to a As borrowers. improve better a create

also continuing to add real-time recently activities Finally, partnership. with completed integration we additional customers this through Ellie Mae,

volumes On thus in been have loan the XXXX. personal side, far strong

and While in still May. we momentum we tax positive see refund expected seasonal early stimulus, through QX recent following slowdown a

Instant to significant showing record funding with Our recent adoption Funding continues product experience months loan amounts.

suppliers developed specific help ability will an recently electronic showed partnership, total over We Our And Program. to automotive that quarter-over-quarter. enabler CDK to BXB We XX of with the on automate business connection became AP process nationwide a grown a district this a XX the to CDK, marketplace end-to-end BXB payments based thousands AP on invoice we leading electronic payables we've now signed approximately of system. of have automotive succeed. the and integration, also is side, strength a agreement applications dealers automotive of have In CDK which vendors software data participant the up school for We we the city. various and top integrations. recently public during supplier U.S. Through commerce, dealers Global the to XX% within to our announced quarter. joined that Partner in network XX,XXX, the integrations

to global Additionally, technology are payables largest now hospitality the processing we in-room brands. for provider hospitality

Lastly, the throughout performing Our restrictions been country. TriSource processing lift business as nicely very has

phase. areas all focus the growth first against and quarter. X solid recently with several We the progress our customers in have are We processing strong contracting Sales, product key of the growth strategies made now. additional right technology in ISOs showing

a add integrations which direct channel talent. sales decades payment strong combined continue On ISV driven to X for leaders to we sales force hired the we've great recently sales with quarter had be in side, us. experience. wins We some senior-level of our growth the to client also by continued

During customers of union collective which as XX the March the X We brings credit quarter, XX. quarter, bringing added added XXX XXX,XXX representing integrations, in members. approximately to new total us our we to XX,

that We've over in relationships they Last have progress software quarter, and in Now retail grow hit installment partnership development-related names Pay XX also in firm be development staff, to the to add Ireland continue ground We with and space. product recently technology Protego. opened believe the a this understand Buy a asset pipeline. technology our in existing Later new we office already sales payment side. hired in we our great software companies made many also of a We to local and and the We've running. announced called

of a [Paysafe] different great been have we to convenience additional and our payers a and to retail types and initiatives verticals XX,XXX locations was felt consumer meet More to payment lot map way platform payments We product many greater merchant with to recently, attack, get time. to to on to REPAY access partnership resources quickly cash make This in the transactions payments. with have this to cash partnership expands to finalizing of the supported capabilities road will on accept merchants other merchants partnership and throughput. allow even add approximately preferences. have electronic consumers and we real to will a technology and It enable lenders

we most This growth to driver date. important largest incremental on and important This our continues to very acquisition it's which REPAY's the a M&A, as is announcement let's evening, be exciting company. of Now an transaction announced move for to BillingTree.

[Flex the patient payments main and and and HSA our to highlight customers is payment forms integrated acquisition which evaluated on technology, allows Relations and payments, have years, has including leading verticals. over posted all We company. a to solutions a omnichannel, site. transaction BillingTree care presentation we of scale combination We talent BillingTree separate engagement Card]. of hundreds provider candidates is X platform, believe best has promotes to CareView, BillingTree the our that direct in biller patient streamlines of the communication, of attractive software FSA, complement and distribution, accept health Investor the products:

EBITDA which verticals. our and paper-to-digital volume billion. $XX enhances markets million pro year and year over management forma revenue to Addressable XXX. billion forma biller access retention platforms, BillingTree such with and expand integrated BillingTree's Payrazr, and in and the has meaningfully X,XXX suite core position card integrated, integrations tightly customers acquisition, result in credit in are their using existing The health for to in care, XXXX. a favorable medium adjusted the enterprise our accept the They million full metrics. shift software clients, growth health product payment BillingTree's to million an end revenue software solutions serves as in large payment markets BillingTree over that with BillingTree's platform the payments allows our multiple synergies credit ARM before pandemic, unions, XX BillingTree including verticals. will the card payment expect unions billion unions. and energy software our receivable industry-leading XXX have Next, expected also customers of $XXX scale, over Pro strengthen choice. acquisition full care, to impact in as over over end them for within accelerating volume of provide XXX credit card payment estimated verticals volumes, and for accounts markets million COVID-XX payment contributing attractive in with EBITDA omnichannel BillingTree volumes, direct over offers customers tailwinds of we custom-tailored the of reconcile partner attractive expands $XX the and $X.X BillingTree Their across over of $XX have to deeply experienced and payment ISVs. $XXX opportunity industry. acquisition and card solutions the over is in $XXX

XXX% net recurring volume retention a revenue model has also and margins. average BillingTree with Additionally, highly strong

transaction value as synergies expect accretive in to capabilities to cost increased adjusted the combined a expect represents savings combined scale, opportunities The XXXX opportunities EPS and platform creation infrastructure We company. efficiencies. the shareholder from for and be further of and significant before synergy

realize and expect of synergies expense of result rationalization, reductions approximately a processing As operational million. we cost $X to annualized

to acquisition, delivered strategic the excited when this incredibly shareholders significant year promise proceeds on this M&A. are we having earlier we pursue raised to made We about our highly

maintain We financials consolidation in that the active that, M&A to mid-market across I'll there discuss very Tim? continue will will be prospects, and turn the opportunities greater of With additional industry. continue to to expect payments evaluate a pipeline Tim it attractive detail. to over

Tim Murphy

Thank you, John.

on our revised Now let's our I guidance move to QX results review financial before XXXX. for financial

million $X.X key As the quarter, year's incremental quarter. in mentioned, metrics. Card results all delivered cPayPlus first XX% prior Total revenue increase billion, was contributed million, CPS quarter. the XX% Ventanex, prior an first our of increase during of the volume first an $XX.X and payment was of revenue first $X.X strong John quarter. approximately over across over year REPAY the of

an Other first million quarter of of profit across $X.X for to cost was over processing million an of by This expenses first XX% first increase of organic performance well On quarter. first SG&A our prior CPS as were quarter $XX.X XXXX. driven back-end XXXX. of business. incremental primarily XXXX. QX. gross compared and other cPayPlus organic $XX.X growth to of of $XX.X quarter. compared on growth basis, our quarter the $XX was cost better-than-expected from repayment Moving Ventanex, strength profit we The were loan to Gross $XX.X services in million, million the was million services saw million the in XX% in as verticals compared the TriSource to the year's in

quarter net was of $XX.X first the to loss of First million loss net in XXXX. compared quarter a $XX million

or First share. million $X.XX quarter net income adjusted $XX.X was per

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

increase revenue first was cost as to a growth in EBITDA continued adjusted quarter focus of prior acquired percentage as quarter. as This well compared organic on EBITDA result and management. total businesses XX% contributions XX% in from the was adjusted a of year First

cash $XXX acquisition date. we for $XXX be today, consisting with on million will in stock. cash, mentioned, will to our John in million As which million, and largest financed announced This acquisition of of $XXX the be hand, BillingTree

of by basis, subject $XX on earnings will very opportunities. before the level, of XXXX, will in to closing capital of certain great synergies post-transaction organic expected accretive and a a markets allow fund a the example to The second approximately also comfortable leverage be which is close transaction and to benefit anticipate We continue immediately access tax X.Xx us we This a Combined the to of customary deal approximately chose why million. to is net both is quarter to end be to expected inorganic conditions. January.

will of forma $XXX of amount $XXX million. revolver XX, of and As on BillingTree, capacity the of for million total access to balance million liquidity April sheet undrawn have $XXX we a pro cash for

basis. pro XX.X As million approximately will outstanding forma a April diluted have we of XX, for fully shares on BillingTree,

our the to second on outlook our experienced this our across businesses in that our all outlook year, for moving to coupled XXXX. result Finally, of further of XXXX, momentum will BillingTree. are we for excluding Due drive year-to-date, the we've with updating strong current half acceleration

We $XXX million. million; are and between expecting to billion; to million; between between be $XXX gross total million between lastly, profit revenue to be be $XX million $XXX adjusted million now and billion volume and and be EBITDA $XX $XXX $XX.X $XX.X to and

$X of to Please $XXX close profit we note, total million EBITDA for we months of be final to $XX.X between impact BillingTree, between the and $XX revenue $XX.X $XXX on to adjusted lastly, of July this the expect X and including Now to million $XXX volume gross XXXX: forma X, approximately million. and $XXX million; million between billion be expected XXXX. includes following pro will assume synergies the and and be $XX between for million million; which be billion;

no unforeseen assumes during create could impacts, which As with range year. prior further substantial the duress this COVID-related economic quarters,

We now to I'll are outer over along the pleased look call turn operator the to remainder welcome and REPAY of with your Operator? growth family back accelerated the questions. BillingTree exciting to an the in to XXXX, forward take to years.

Operator

question [Operator is Suisse. Tim Chiodo Instructions] Our from first with Credit

Tim Chiodo

the and that ISVs. I also over with client relationships came BillingTree the dig wanted of into to some

would those XX little bit So and extra clients that you really I is a base how Maybe penetrated just Is over there? there there are Was existing much of XX runway net the about Is gross REPAY context X,XXX relative Any helpful. could number? How to maybe that ISVs. saw number? a and merchants? a be any talk ISVs overlap?

Tim Murphy

Sure. Tim. This Yes. is

ARM probably in high-quality about their is health definitely across number, I have very pretty They credit situation. of And a relationships overlap. we're you all similar overlap So noted supplement, existing and in And ISVs we a customers unions, these think the excited are they're lot The them to few penetration to software XX the verticals, maybe there's we the We energy. getting of think exclude earnings underpenetrated relationships. in mid-XXs, access it's there. care, left. and in think these We there if some the markets. end still our

recently, And be put we've like relationships. BillingTree. We'll we're so just further those with out doing similar penetrating something

big terms for a and in like of an experience. us, fact that that's opportunity omnichannel us in to they go very way a market to So the we similar integrated

was integrated thesis approach is a of markets. a different our within that big part that access lot So and here, getting these of just to merchants end

Tim Chiodo

of on payable Okay. extent merchants cross-sell you A that there side, synergy the might Great. BXB CPS, The into be of and/or also -- able an to so cPayPlus follow-up, extent base brief somewhat side. this related the accounts ISVs? some existing is that

John Morris

a some with CPP Obviously, great with and there. existing our Yes. there's This opportunity opportunity BXB do John. platform think see CPS. is we We our

already care has that uses it health et hospitals, overall, several the platform already CPS cetera. specifically opportunities for Our

As BillingTree, in has you health can care current see, offering. its it with

And give that. so early needs we We're does great to there, that a there's still of us opportunity we opportunity. of sides in some do but cross-sell evaluating our on on think both think an

even to add we all of an other the integrated there's into we as opportunity that our across verticals, some BXB some the think on things So also offerings. side do

Operator

Craig And Research. with our from next is question Maurer Autonomous

Craig Maurer

of you the which So to and deal, one fastest-growing the it's auto unrelated sales strong continuing be to is discussed piece REPAY.

you can there own if will any that are Second, following discuss how you on Capital transaction? lockups regarding deal, the can weighing XX% take the discuss on rate? So Parthenon the that's

Tim Murphy

been. that auto the I'd XX%, first is material. strong, question, continues rate has yes, And not Craig, XX% really take the To Yes. be to too as say impact growing plus it

and the to see, quarters, rate was can we take continue. to quarter expect this that prior you As similar

a impact, So that market. get we think end and a I don't be to that's also just lot in material volume going more

through to And so flows that gross profit.

of And with there'll terms in so X-month lockup a be lockup, Parthenon.

And so straightforward. that's pretty

Operator

question our And KBW. Sanjay from is with next Sakhrani

Sanjay Sakhrani

guess you the to you just anything the maybe be the deal. leading you part the And Was just specific if specific any on to of I wondering call saw on impacts first for more core year. during out Congrats question quarter trend. back the related could that stimulus? optimistic

Tim Murphy

Yes.

we May, That's about. quarter stimulus that was in into than definitely stronger anticipated, March. and something excited as a expected. around that tax and it's we was dropped late expected, growth been actually organic seasonality better we're than first we from XX%. in a due So little the early There off refunds but to benefit But stimulus volume April bit

things about year. led So the rest us more optimistic those be both of to the combined

back-end a TriSource We lot in also processing have business. our of strength

we're some we're We ramp have that right contracting And there that ISOs customers some to have as and that. continued grow, also now. and excited we have customers large about new pretty

that So well. us gives as confidence

had a to as And I and the seeing those but stimulus extent QX the we drop again, we're maybe are off positive that expected. expected us out. in QX, would impact not in that call things same So for

that's So positive. another

John Morris

side seen we've wins And nice well. on BXB some as the

Sanjay Sakhrani

to how to growth Okay. XXs? speak quick revenues much That's great. that the But I you That's EBITDA the for you sort And -- of to on the able hear. business improvement just and the in see margin low question then be great that rates you see BillingTree. financial slide see might can profile. in of on how a more on

Tim Murphy

sure. Yes,

they XX-plus for It's gross is EBITDA, which to see kind us. a adjusted similar so in So have rates the mid-teens. profit gross XX% profit, volume, bit And growth in range, the you actually deck, for margins, a percent the revenues really in XX% higher low strong. of little can XX% the here for than

maybe they're BillingTree as into high think has currently XX% realize strong of even XXs, these some could, mid-XXs synergies. and profit the EBITDA solid tick growth from the perspective. synergy gross then We up hit an So And adjusted in with that margins. we realization,

financial a growth So perspective perspective. a from margin profile, very strong and both

Sanjay Sakhrani

to And the business teens think just in can you you past continue to high clarify, can grow that -- do 'XX?

Tim Murphy

grow -- those think think have to expansion is high with yes. margins the teens of I where and can kind some realization. synergy it we with Mid-

Operator

Our with Citigroup. is next Schmidt question Andrew from

Andrew Schmidt

especially back I the the that the the on expectation acquisition. into into start trending this personal Have congrats -- quarter vertical. the of question to loan BillingTree It -- wanted expected sounds And obviously, revised sort that's with than against on the second more half, what like you in for better in here. the back up in normalization the the of more context vertical be you're half we is to back kind of Or levels? some of great. come terms personal easier rate of as run Just a would contemplating comps? it

Tim Murphy

mean better where we Yes. Like far a so we good we QX. than talked are in we about, about feel I are it's -- do bit little expected.

then was specifically comps assumption macro and then So those in easier recovery QX and initial to within and QX, around into that personal repayments starting versus leading general, a our particularly in that in loans lead to growth QX strong loan XXXX. stronger very year would and quarters rate exit last given

and think So the accelerated trend QX that's even in that the that far case. next growth for the be year. rest quarter, some of we could holds anticipate QX maybe up of we going more If so in the into QX still

what see we're so we So definitely encouraged far. by

Andrew Schmidt

from platform an just it it verticals these across billing just verticals is a Got picking you're Any leverage technology direct in? it. technology tech that benefits new sounds like into? other to Or sort there up leveraging this more And from to some of opportunity good BillingTree, you're with the getting perspective? isolated Is some of here. their you're that

John Morris

Yes.

stack. our are omnichannel. stack good technology The really We very fits So well both here technology. technology yes, with

our to are similar. ways built platforms integration much model well. our to as Some that we've That's very make of the easier operating the target going technology

-- some providers authorization own the serving, that We some if technology. well, the for But They on to going It's side, fit have do we we the on verticals, of health be some but engine going that's a stack especially about us. the it. as verticals other use side TriSource. specifically, few things energy really to of software back-end enhance well opportunities robust some to we they're health want ability front-end things is going side on it's a going technology technology opportunity the overall, well, have well, that to of give to some we we -- additional built currently us some since That's do direct to same care really -- the of don't But do. give Obviously, our if stack. you think tech obviously, there's biller us they still care, more it. our

So the critical fit us this with do in we some integration But additional well And continue expand to health abilities key will yes, well care as unions. it. is credit in specifically and there. give they really as the

Operator

question is Davidson. Heckmann D.A. Peter from And with our next

Peter Heckmann

of a how platform forma and if almost AR? to for numbers volume all When down break would And include receivable, of BXB, segmented kind vision of I we health lot between of well, that it care, to of trying at, I'm is talking you're like, basis, what to your looks the primarily AP I post $X one BillingTree accounts BXB. guess over guess, like just But deal. reconcile vertical looking pro if on -- you've a but the billion acquisition, you're BillingTree were great time? that, maybe into BillingTree it came A kind conforming looks some, what, presence through. about combined your and

Tim Murphy

Yes.

is ARM not consider So actually we space what BXB. would the traditional

in that looking efficiently. and are process include more get part would that from wouldn't coming then them but more themselves that be on of customers enterprise And business. we so outsourcing to help the of for sort consumers. the -- paid business And And the payments actually quickly

side. on So the it's more acceptance

that's opportunity. verticals. volume these a across large payment market very And of collectively all annual so -- opportunity It's yes, billion $XXX but

of increase So total example, to if our volume -- of payment it volume market could remove unions, you annual and addressable for duplicate opportunity. some credit kind trillion $X.X in

very of a perspective. So market. integration a of software and each to total within the additive then And verticals very, technology addressable lot benefits these from

John Morris

investor on is care a XX% XX%, And you'll you're also is see ARM business the is other XX%, about in if about health basis, post-acquisition about mix, of Yes. and and XX%. presentation, about loan this BXB is about is at payment repayment looking XX% volume,

Peter Heckmann

about Got can That's -- next Okay. needed this just And Any then you so? I closed really like. X approvals just before assume get the thinking it. helpful. think the close, Do in in looks close. it of customary you regular weeks or terms

Tim Murphy

Yes. Yes.

by and expectations Just standard the to were customary the QX. of end close closing conditions,

Operator

Ramsey Our is El-Assal next from question Barclays. with

Unidentified Analyst

Robert is on for business. on TriSource This Ramsey. Question

of up ramping You back had this mentioned that growing and is nicely kind now.

business kind mean do scenario? rebound, portfolio, million $X a a As business how mix are you revenue thinking ex of about that post-COVID business the how was of TriSource in core I starts see the but BillingTree, $X you to pre-COVID, reshaping? or million that

Tim Murphy

we And really have clearing the recovered business where of higher and Yes. part ISOs, help substantially the the that's that. doing of is -- the really than well and that -- But pre-COVID really customers business volume-based with settlement. the business, them the kind levels. are the we part processing has back-end business It's to of

And really nicely. that to has so continued that's the the business perform part of

still still much $X million other. that TriSource. other higher we if its And of the out so is now mentioned and when BillingTree XXXX. you in at to total in include that onto million And that And the strip about other investor presentation, XX%, mostly $X ARM terms even own it's that we look than is bucket, you of

Unidentified Analyst

it. Got

energy. the question related XX% follow-up least acquired to BillingTree at Okay. portfolio looks -- helpful. It energy second, like on And guys a the then or you vertical. That's as had

more of can so that Are acquired further guys kind energy? expand go-forward understand part looking is that strategy help you to as your in the of assets So us into you the deal? you Or vertical?

Tim Murphy

It's had addition has for a there's -- software. in that BillingTree payments, number some years. to asset an actually of It's

buying so one But buying good monetization a software past potentially in payment the the only companies. We've about the a is we've traditionally software companies. there's energy within And focused within payments where this talked opportunity on example space. of

software dealers, doing a they're propane providing bundled and it and to and So in fuel they're way. payments

we get the side, being the that's So happening. there's on go processed a software think are but lot volume payments to of not

So that's forward, further. strategy to part of the going try payments those monetize is to

Operator

Our next with Joseph from question is Vafi Canaccord.

Joseph Vafi

It Congrats on BillingTree nice the add. a like sounds asset.

dig loans. about bit And their bit? me Let is little now. for bit obviously, are to thinking on on going are back Are some of just big. What the then little loan right customers what loans, into thoughts is, books auto saying you more a strategic What M&A your scale the personal little follow-up so there a -- look BillingTree front? I'm a on you sorry, are pretty could your we

Tim Murphy

Yes.

really well Our technology. they're still an now. that been. quality lenders have growth. about digitally is good I really the think to consumers, engagement with feel think And their They're issue our really ways through don't payments. to their fits have that more digital payment which with just allow with books even nicely right We credit finding them I engage and growing

really be offering. into auto continued terms build seen And customers to their more of us within a customers. so that And lending growth and theme as that's in try penetration we've that just to our helps existing that

And X.Xx for is very sitting strong. which pipeline. be We're of active at in I'd have us. net leverage, terms continues pretty additional So to a still we comfortable M&A, an then level that say that,

balance $XXX have $XXX million the between revolver. about sheet to acquisition on the cash million We undrawn access after liquidity, access million BillingTree to $XXX of and

we M&A. So future capacity we for have think

BXB. health care have opportunities sense pipeline. at potential still of other active BillingTree that in looking deals We qualities have an lot make has. looking at and and We're that verticals We're a the

still active M&A an So have pipeline.

Operator

with is Blair. from question Bob next Our Napoli William

Bob Napoli

transaction, it good looks A like.

is an the it mean is -- count? of the are what Just Is getting? number stock, shares I that there exact Parthenon share opt-in

Tim Murphy

Yes.

shares. XX just So it's million over

Bob Napoli

right? a that's locked-in number, Okay. And share

Tim Murphy

a signing. XX-day based was up to VWAP on It Yes. leading

Bob Napoli

Great.

Okay.

the the Now there's at know there's in think ARM overlap, there's union I presentation, BillingTree parts decent little is recovery. I knowing -- debt credit ARM, is mean I I bit but some the of And -- primarily it's a auto? the I energy, And looking mean in you're mean, and primarily personal and loans? not union about your I that credit think, -- some like business. --

Tim Murphy

-- credit we is it the They have to. we've much about have Our software end had was very have been quarter, XX relationships -- in over They talking some we additive. that union XXX. unions that about customers. don't of They credit had

well great So like and a there. That's vertical that's that. really they've done

relationships. have was And then leader excited And think the and that ton a with great -- so space health we're have really They that's that about of done that then merchants and with we they and what have both a a software big management, great providers. again, they're in technology. of And part really thesis. very And accounts additive great care. us, is they relationships, receivable to have

more whether we're the that care it take whether health opportunity, lot and we AP you side as for processing hospital of may but a There's also we're their doctor payments, care the over administrators, health us think or billion systems. And market where gets for recall, companies providers processing third-party This patient into consumer-driven more from insurance on so in may as be AP and side, hospital in decide to a with or it's to control a choices. into practice, this care. growing care, health quickly part dental health very of a it's parts of consumers us obviously different $XXX gets a payments

and in lot as also have well, of they the about, growth where where that's strength really a focused, we're will other So but that's excited verticals be these Bob.

John Morris

thing add with would Bob, that. sorry I other Yes. -- about it the

the other unions lean I add credit towards auto would The lending. thing would is the

Bob Napoli

is revenue Flywire? care, who Or the like Okay. management, the of be then would Great. cycle with space? that some competing that in in And health care is competition health

Tim Murphy

we cycle also That like with competing Ventanex we'd in ARM, and be health care care. InstaMed overlaps of see name business. -- revenue between kind that maybe That's health management but the in a

from come some straddles said, and that So other they're that's time. it of across. private the companies definitely I time one we care to kind like there's also that But RCM space, would definitely, health And see management. receivables in and

Bob Napoli

And then last question.

I together? Just, good-sized good I I mean obviously cultural leadership. I in mean -- the from amount that does guess clearly it's some cost mean some health with of -- how feel how how those does energy together? that have huge there. the -- synergies this do organization I a But how you the a mean fit about does perspective, mean, fit and culture care, teams fit? how you'll I a

guess. that's I So growth -- it's more oriented,

John Morris

Yes, sure.

we they Very with our think from of trying they fit our understand opportunity omnichannel. attractive attractive together. lots integrate fits So a our we a combination, If -- of makes different do just pretty from ability have -- very omnichannels I'm a find financial cultures perspective to lot that The well and but that an -- there's compelling optimal one-for-ones sense. doing. It's that serve. to of verticals also the what we lot they're exactly are actually a it's as strategically well

continue this a first-class have these Parthenon And opportunity really us. This Yes. has but they've in Our makes good sense synergies, we is us some a that. there built put a obviously, this to verticals. a a mean team nice who's we scenario expand for to really lot think for in done I technology well. company. find fits of where to is

Operator

Tim Our Fargo. is question with Willi Wells from next

Tim Willi

at good is marketplace, terms the there out the attractive about in jumped of margin the revenue that in the beginning at if bit right missed the the sort apologize customer the about, they're at? in way now, you I already very they're dialed I'm attractive the look there -- yourself or the guess very this late. something back base, of its sort first, inherent that others it margin such that that I just versus and monetization dynamics acquisition, of the the revenue an profile curious, running could is with so at profile revenue the talk size. I of of But a size I obviously, office gives call. just

Tim Murphy

to underpenetrated integrated providers. our these verticals, software And just the with payment are an also Similar from highly Yes. it's perspective. key relatively electronic

lot electronic, just they're able because environment their just they're that from hold method not attractive moving lot of retail And are, competition, BillingTree REPAY, a specifically a that. and more legacy value away not like heavy to competitive -- margin a chosen verticals to So a be. merchants have like adds payment to of would I very of card, transaction maybe said, like

allow their And adjusted from think vendors they've a high with strong and run good there's And a keep I a the a lean contracts place building with then margins. processing job perspective solid stronger to margins to cost in and so relatively gross for their done way in those putting vendors just relationships business EBITDA have of margin.

these on of question omnichannels of about processing asked in from it's perspective a to highly way. the a was a focused similar earlier a have, culture. perspective, I way perspective similar built So and in They've verticals very integrated terms business also OpEx kind specific their in technology both we from

overlap very of positive. lot a So and

Tim Willi

Yes. out to comments. appreciate around in I industry, on if an that there, I that. end the somewhere around anything And call get momentum-wise? partnership-wise, just apologize it opportunity. prepared But to you follow-up, your one of quick just want touched initiative mortgage sort Just any update and again, the about Great. update market

Tim Murphy

platform all momentum a a highly their recently. complex servicers exception-based mortgage that there. some We've credit large added for lot very of processing A them large We've processing. signed of do mortgage payments to union looking handles customized Yes. recently,

So Mae the customers adding coming quickly. nicely, Ellie We're a with momentum and customers onboard where that Gaining relationship of lot Ellie is that of of to a we're more Mae. furthering technology together lot technology integration of momentum there. piece the

of within lot trends mortgage. positive a So

Operator

with Our is Faucette Morgan from next Stanley. question James

Priscilla Russo

is Two This Priscilla me. quick on for James. questions from

And and make The Could the of on then incremental recovery obviously, sure out capturing you're as just April-May give Just the been a what to the the seeing. sense volume we're seasonality first cadence strength trending is that that seeing? of side. you any should the to other called at? that be follow-up the payment should quick business organic just been from the Is volume growth we has a like trends of some us versus you on you've ongoing any want look then the there aware payment we what side. in that

Tim Murphy

Yes.

Typically, refunds. get a those to a on originating growth receive of their So start and in repayments, they additional the when QX then our than pay from and we is collecting then QX. lenders even refunds, loans has lot larger-than-normal QX. dip due QX make seasonal to we are within and in tax lending volume When off the might loan refunds, focused seasonality see payments often accelerated usually loans. in are in that on more consumers they or And their

So reason, we would that growth then QX. play QX again, seasonally, trend would we for accelerated is And in be expect from that but and continuing QX experience QX down to out. that

So continue. growth profit we Organic And XX%. that an quarter. perspective, organic strong seeing from we're a then really was had gross

from signal. was of strong and us, for excited We good our So a that large we're had was and and lot auto about a that. volumes that very lenders, really personal larger

Operator

Our Michael next question with from is Securities. Grondahl Northland

Mike Grondahl

Can senior X they a you on that more salespeople say you up vertical BillingTree? be did the you specific with many generalist? you how or salespeople then focusing will hired, And picked say

Tim Murphy

lot be of additional part has focused our looking business. customers specifically The I on nicely. TriSource particular that customers. for sales there to salesperson that It's -- Like so and a experience margin, selling in and looking really within add we're one the of has hires, payments And performed very add to there. them said, this processing high will payment business of new business, back-end ISOs

on very looking add customers loan focused sub-verticals across and will different others large to loan repayment. enterprise-level be customers repayments, the within The

teams focused. And largely will partners. relied from So that's distribution then have be they the on where software BillingTree really

sales haven't to relationships do They huge penetrate every to a trying find That had And those those help further team. have direct sales So a us. lot ISV do force. to be partners. to referrals very strong will be from have of ways additive they we'll They've day. a software gained just we like

Operator

question from with Blakey next SunTrust. Our is Tom

Tom Blakey

BXB on -- Billtrust base? about ERP how is BXB going would of acquisition actual volume. interesting coming was of question qualitative in is thinking customers? First a volume a from the percentage helpful. part And like kind or rate much the be forward I That how your of what relatedly, be the growth of of customer your in further business of AR new And attach total BXB is integrations? coming rate is opportunity then And segment, from acquiring would related with very wondering their your BillingTree A management. is is would to year. penetration complementary existing second -- this relationship. question existing on big What

Tim Murphy

merchant and AR. mean the opportunity opportunity in of I AP our volume volume, and virtual trillion of huge. addressable BXB in higher-than-average volume we automation, BXB is $X.X payment so market have rate. about trillion, opportunity $X.X at is that In terms our a think probably estimate the we BXB across $X.X customers trillion BXB And AP card acquiring of penetration

And virtual cards, business suppliers so payments and than, send a them card us that take accept say, higher-margin more have ACH. -- the their we're which via trying and enabled have virtual increase of is to for traditional more to and

And That's of BillingTree, we're whether AR revenue be the will part trying go the talked revenue transaction merchant various most BXB hospital It's ERPs, in And management acceptance has acceptance side integration. on trying enhanced example. helping not We billing that's get business those collections the going business-to-business -- be trying about efficiently. kind really or be care party, payments. before a Acumatica, trying side. not customer of merchant It that's there's patients, sub-verticals. from outsourced -- more or just more market Sage is do, maybe and and their it. virtual within those paid something to related penetration It's management and it's again, customer base not to that card -- late what BPN of business to for a is their to and there also tap customers management. increase It's on process payment, a are a payments to just takeaway. So acceptance acquiring health really outsourcing just and about out of and to specifically to take yes, ACH of to their quickly in on through able to and BXB, from it to be away conversations them cycle via in past just utilize may more payables then it cards accept check it's payments move card acquiring. of In and also a cycle looking greenfield payable card. the for the And their where an competitive that's payments about is card third due, and hospital is electronic

Operator

And from Napoli question with is our Bob William next Blair.

Bob Napoli

close XXX little higher REPAY. right, like than the that take Just basis Does rate for on Brings like BillingTree, points. looks the that points, like XXX that? basis rate up bit is net something is sound to blended a it

Tim Murphy

a higher take they That right, Yes. Yes, have yes. do sounds rate.

Bob Napoli

Is that pieces. regards, some sustainable that in in mean, -- and head-to-head I some guess, compete do you I

in bit could little areas? less a some that it So competitive make maybe

Tim Murphy

Yes.

we've the the and sustainable. partners I software data and and do seen it's within think organization, we on we've the had it's the sustainable. salespeople think conversations Based customers with

again, rate, you're financial high -- it's going take Strong profit that's out. adjusted and think margin, as pointing so And we and can very EBITDA has that very profile, forward. a gross attractive a persist

Bob Napoli

just then sure, on John. And -- question a

John Morris

the -- take Bob, rate. there's in and other Credit to be a space of the higher rate. can has itself things, going credit be that energy bit because some of because take and little care a the there of health more

Bob Napoli

Okay.

made, combined? growth? X standing what's business, And is you've standing what's others with the or Okay. payments Great. overall just than And out? really working the then So the growth of that's What's anything business acquisitions payment BXB what out? better on that the BXB rate

Tim Murphy

all we're public their And win we've we've for school now a the large them their of XX sale. They're client, well. large seen about top really that systems. does doing customers. some now business that talked call, payables system. at U.S. really Like of payables the are really type good going for They enterprise or an done in and education has they're after CPS hospital systems city,

of just you types a be wins. of a just can payables. continue those various will that across vendors there on basis. seeing of verticals. nice a lot do supplier And large XX%, of there'll is that of to is big imagine, we're hope We a adding and A very business combined network. that. As part with those growing the it probably lot lot job They a And enterprise XX%

payables rates Both of card As the them we great only virtual have supplier you card sub-verticals enabling virtual the why strong. enablement. enablement we as higher-than-average and to big cPayPlus cards. that's in business. piece And is particular CPS these acceptance virtual adding of know, accept That's a very a suppliers, not think do job

Bob Napoli

actually BPN it? are still integrating -- on the you the Is Or -- do use are this you working at you BPN point?

Tim Murphy

The technology particularly within to here, from near close that integration customers sub-verticals, some the we've is benefit think future we that field identified near but term. will fairly complete, services, in

Bob Napoli

rate? BPN, Is does move the card materially that the the And is that to acceptance benefit? going -- virtual that

Tim Murphy

there. of accepts and of yes, value the part supplier are, get to their that's the cards rates understand should, access It kind to who already what and directory proposition

Operator

end concludes at for reached this session, this the you may disconnect question-and-answer your the and have also time. your and participation. lines you we conference, Thank of today's And

Repay (RPAY) 11 May 212021 Q1 Earnings call transcript