RPAY - Earnings call transcript Q2 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 of available financial release of reconciliation are measures of the found our non-GAAP earnings can earnings site. as these to supplement, which measures explanation measures are be non-GAAP An well company’s IR the and each as on financial a these newest GAAP in would the I call to Mr. now over like to turn Morris. Please go ahead.

John Morris

everyone. Thank in growth today’s XXXX. for you, operator, the strategies. more it over I’ll review financials of to and good an on remainder a of our by I afternoon, with to then our business turn update how followed on second Tim quarter On open detail to we’re our want on discuss thoughts quarter, second and the call, executing

of experienced growth During which of we revenue profit growth the included payment second XX%, total included for quarter, across which solid and XX% our QX based growth XX%, gross growth quarter note card organic these businesses, are of May organic. volume of was tough the off payments year, of last Please a in the XX% comp all rates growth XX%, April and as organic of in stimulus of out which went XXXX. results

strides made under of adjusted reported building more penetrated significant We’ve also EBITDA our We in quarter. BXB in growth market. XX% and to second out of large the capture business the

workflows CPS AP healthcare for advanced realize Premier with savings agreement revenue payable rebates. we automation recently improvement will internal with signed provide the through and providers to group Premier, capabilities company. side, agreement healthcare solutions a On accounts streamline hospitals enabling for BXB through This purchasing generating and disbursements, advanced members a leading healthcare

actively pay payments which our vendors at we enable businesses quarter, the launched ERP seamlessly companies, cross-sell Acumatica to cross-sell reducing also Summit. AP simple, most while unnecessary the full secure will Annual XXX a now way very Sage into We’ve leading AR, automation also We recently vendor promoting have in pipeline. been Acumatica solution a During and the costs.

results BXB We’re clients. seeing our for incredible

solutions CPS Kontrol our signing one In including help efficiencies quarter, customers, we them deliver within over using cards. and to an payments variety clients the supplier week were first automation serving new integrations well fifth the of in BXB software, its end based of to AP able XX the for utilizes outbound in ERP addition went payments of of Payables, focus month, clients facilitate. on network of its a the XX provider, our in acquisition of production, monthly on executing plus workflows our Sonifi, live markets, XX,XXX variety generate with payment contract. suppliers over manufacturing, of AP education. integrated modalities we construction, $XXX,XXX a payments One and Late rebates food Kontrol we announced to second the virtual

software BXB X,XXX now more end and XX markets. XX in REPAY acquisitions, these than representing integrations BXB With over has approximately clients vertical

and our market market. payments in both supplier The quarter. we to next $XXX is XX,XXX trillion and expected side, transaction, positioned software grow from competition, XX% sides is solutions AP meaning of uniquely trillion network from it the approximately capture to Unlike this our are share payments today. On the believe We last over decade grown that of growing on of able AR and to increase provide BXB much automation. significant $XXX AP both the we’ve in we to and to the are

lastly, BXB addressable are organization VP role and and Corporate our Development on detail. of business of and side, Strategy and the our presentation a Jake the And BXB posted recently new recently for BXB a created Moore, it filled strategy reviews and in EVP development. have webcast in business We on our we greater opportunity

a Our Business of at Strategy Solutions new his BXB also Development of Divi at Visa. leader brings and Payment Director an as prior of BXB experience incredible Head and amount who Partnerships role

thrilled the family BXB getting and to efforts and to further on his look We’re forward welcome perspective in to him the guidance our to how space. REPAY accelerate

increasing a Post loan repayments personal past stimulus loan months. rebound and the driven On holiday side, tax and few preparation. largely back travel over to we’ve by the and consumer volume demand, season, school seen

our fits are Our which technology. clients ways with well finding with payment also engage very to their customers, lending more digitally

continue the grow leading processing lending loanDepot value they payment solutions leverage backend capabilities and experiences to tech like firms provide mortgage customers great borrowers. existing communication as We consistently in find servicing deliver their our for to services we our

We continue Canada for lending responsible solutions lending leading partners to with borrowers. the Financial, with of Fairstone in expansion of provider addition Canada’s prime new

in opt demand. macro long giving We’re leads pay the business use adoption a in throughout to core repayment repayment funding Auto previous loans these We’ve eventually in seen to with loans as technology, amounts. These of continues record the for engagement, still month elevated enhance our loan working loan instant customer will our increasing activity. this month be and trend second volume We tailwinds engagement, greater terms even digital positive growing of as July. text breaking experience, repaid. each would is indicator funding one growth duration loan their to funded to the significant of personal view product need prices in Fairstone strong borrowers with fastest there flexibility. of to greater are are areas which help digital increasing speaking quarter this the of And experience continued

on June our would BillingTree. and was acquisition review. the We’ve closed we Moving is webcast very BillingTree than on and presentation posted which the expected, acquisition XX, encourage well. site, you earlier a which We on on IR the integration I a going to recently

ISVs. including growth discussed, scale healthcare, and previously credit that expands is has attractive unions, with capabilities, profile our through we focused on and distribution business strong enhances energy. highly position complementary our and markets, management and As accounts integrated both payments in the receivable It also acquisition direct large

with BillingTree, for BillingTree industry. have announced further which processing look as to through billing a ability and capitalize program. for We to relationships performing signed them which That patients. in a processing senior sales to credit Bank processing company, chain. healthcare very the experts executive grow with It’s receivable providers them of forward for business brought National our and to opportunities payment expands services partnership service accounts recently forward to fact, our to merchant synergies, some transaction I realize. the in years to differentiated business already Woodforest processing strategically the order healthcare working because TriSource a customer This on solutions clearly payments capabilities unique creates together. own a of control value team us healthcare very position to such with the customer customize software many selling our We Woodforest full and hired meaningful and talented our payments said of backend their partner in look reporting. has us own well. we we the as services recently experience the cost has areas experience gives chose frictionless we of with platform, technologists been in systems and valuable working In power to market, and provider in to management digital management accelerate begun

with update our mentioned strategy processing is companies ability executed on and TriSource As that for us. APS we integrations by to allowing on to this I’ll also We’ve previously, TriSource continue growth expect provide thereby our ISV to strategies. move BillingTree. third-party realize a to growth us be briefly acquired as with an in strong synergy strategy M&A now costs. channel enhances and processing the back eliminating

and was XX. Canada. continues customers for and now integrations, M&A million a be XXX the deal, have service XXX A our which of new we were addition and to the important both related quarter, processing collections many can with of an U.S. driver to growth customers business. exciting unified loan our Provana have for now for business. During REPAY’s serve process union is added XXX clients recent in as We management. members. ISV application. and to XX over bringing total area the repayment customer platform They X combined north of Provana, credit control approximately representing an BillingTree, Provana’s This solution credit with our collective leverage growth customers all-in-one June

Our as pipeline remains such BXB key areas, and very across active healthcare.

since integrate public going We’re majority over also two made with a our seven very acquisitions ability little years pleased we’ve the ago. of to a

to appear financials have business. the that With on in it also over in hiring Tim for currently that, to turn I’ll the organic remained We the front Tim? the have opportunities detail. busy greater discuss growth we to many

Tim Murphy

John. you, Thank

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

over prior days the of contributed XX billion, across REPAY over incremental all approximately which mentioned, of We delivered was of million revenue of during second quarter. increase revenue. metrics. CPS, million increase benefit, payment $X in the the second was John of key and Kontrol results our second year’s an quarter. $X.X of year’s $XX.X the XX% cPayPlus, an BillingTree Card revenue quarter. prior Total As million, approximately had contributed XX% quarter, second strong volume BillingTree $X.X

$X.X cPayPlus, incremental million to services services $XX.X million Moving other second year CPS, quarter expenses at quarter. $XX.X $X.X prior of second compared costs million, the in the in for QX. on and of The Gross Kontrol was quarter. the an XXXX. BillingTree over million XX% to from increase were Other were of profit costs

organic compared second As we profit John growth was mentioned, the to on an saw gross XX% quarter XXXX. of basis,

see across QX. on processing as organic continued trend as to are loan primarily We well repayment verticals continue growth was positive this to strength early by driven pleased backend with TriSource momentum business. very outperformance into our This

is SG&A in million, Ventanex of quarter was also $XX $XX.X mortgage within to Our business XXXX. nicely, servicing. compared the million particularly second performing

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

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

us in accelerated organic BillingTree XXXX. into of infrastructure as putting for and leverage and a will to slight inorganic fund post sales, Second total a result in quarter continue percentage the place a to decrease to This transaction opportunities. in margin of revenue allow quarter. in Combined is second very adjusted growth net times XX% year increased EBITDA was continue to XX% organic prior X.X and the as level, comfortable approximately compared which basis, technology proper product investment

we balance for revolver As had $XXX a XX, amount the $XXX million of million. liquidity sheet of million of total cash to $XXX and access June undrawn capacity in

we a basis. June on had XX of outstanding XX, million As shares approximately fully diluted

Finally, XXXX. we’ve be strong to gross $XX.X to experienced $XXX between year-to-date, increasing $XXX our across be between billion, results and profit revenue revenue and moving our year. billion volume Due to million, expectations the our We between gross volume we’re to and for businesses outlook the million on for $XX.X total be $XXX expect profits to $XXX million now million. and to for

$XX we the be million. slowly $XX are midpoint increasing adjusted for to million Lastly, and between EBITDA

mentioned I the products, accelerated to believe such infrastructure are as in strategic profits opportunities as reinvest and but organic growth we establish order in to growth previously, and into functional key also beyond. BXB in technology, there next areas, sales, verticals, As for such proper year

occur we Finally, recovery continues, more this to in QX. as economic of expect the increased contribution

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

questions. operator XXXX, We’re look call very turn to the back of to the pleased forward particularly your results of over to remainder half in first now and exciting growth take the the our I’ll organic year. an Operator? with the

Operator

you. your [Operator question. proceed comes Barclays. first Ramsey Please Thank from with with Our El-Assal Instructions] question

Ramsey El-Assal

on you taking ahead gentlemen. XX%. in came Thanks about Can wanted evening. this with at you mid said of minds of us in in your the full organic all gross the change our latest the year. gross ask my to growth, profit teens thoughts organic that Hi, share expectations, Does growth for target organic outperformance given think I I – to which high the of question quarter? that sort for kind profit about your

Tim Murphy

the feel this. good question. this We really Tim. Hey, about Thanks is for

was payments said, the think call, stronger a stimulus into we and and the XXXX QX. bit it think difficult comp Like there. from we on mentioned and the easier little given pretty QX QX we John QX be could QX actually would As get going

high teens half And growth so particularly into the next in in the going year. and year back feel good about organic we XX% to of do

Ramsey El-Assal

you’re little ask I on give a seeing acquisition of And to Great. updated little where about commentary congratulations and – us view you on timing? most BillingTree opportunities your the kind maybe a closing there early. Can synergies, the wanted

Tim Murphy

Yes, sure.

on. are roles already just So realizing synergies. we There certain personnel was identified certain early

then toward then realize throughout move case to platform, that synergies. our year. And processing continue We’ll start cost we’ll remainder And to so that of those to backend the end of which process. start the is year, the we’ll in the processing this

much into toward as the then So first, $X year. of million to target we’re mentioned, end early coming XXXX. we the personnel on coming that by the with next And track for stay on very I processing that of hope fully end the year estimated previously realizing

Ramsey El-Assal

Okay. All Perfect. Thanks comments so your right. today. for much

Tim Murphy

Absolutely.

Operator

Thank you.

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

Timothy Chiodo

on to the card, lot those are Great. exclusive taking that terms question. the base in type of quick XX ISVs, you’ve what would of a I I Thanks any check, the is for of have they’re extent integrations status others. The the underlying those within currently segment also of in great. was enhanced maybe ACH, give what a the ACH, quo little context ISVs hoping follow-up. on, than that more be could Then a touched doing of more context then you BXB which And within us merchant terms

Tim Murphy

Yes.

So of early as we’re lot card still Tim, adoption. a sort we’re fairly of a virtual we and days is of out check product the think and well. terms that enhance ACH still new ACH, kind rolling in There’s of

to there’s about. excited further of still a opportunity really white So ton that something virtual That’s and cards. space we’re penetrate

companies of a because with major, we integrations verticals these that One opportunity. is reasons felt these we in major the bought like was these

is particularly is as and And in increasing mentioned, – to that we’re toward the And increase on full supplier day. the network, supplier virtual getting to of enablement That’s also a we’re have that every quickly card and virtual network. folks are XX,XXX XXX,XXX plus. part of we our enabled to big up that working adoption so And electronic marching having we cards. that payments accept team

lot growth. of So a there for think there’s we’re – we runway

customers software – way. partners. typically that to access these just like exclusive the ourselves We’d and have get preferred better We which have to we relationships provider, in consider case information

so to that’s how exclusive. go not to we often And like but market, it’s

John Morris

ERP in Especially, accounting mostly systems. it’s the BXB space,

So that going they’re to generally not an are on exclusivities side. be

Tim Murphy

acquiring partners thing now think one which we is so BXB is, We we’ve each are I pretty been do But time to will merchant for Acumatica the Sage within accounts have – with and big unique. we mention of some payable big within ability integrations, now. those

that really few, both one automation though, then provide way not AP even AP merchant if exclusive, acquiring again, if not So they’re and payments, and we’re win. that’s of we the providers only can a think we can

Timothy Chiodo

Quick, gave card did That’s you really context much. payment Perfect. you call of growth lot growth. if follow-up, Right. helpful, to the organic I organic Thank mention it, growth QX? you apologize and guys I a so missed but around Tim. for great minor volume on happen

Tim Murphy

estimate in mention to – didn’t we about the GP, but we Yes, so organic it, I’ll low it’s teens. similar the

Timothy Chiodo

those. of Thanks All I time. both appreciate for right. Perfect. the

Operator

you. Thank

question. next proceed Our with your Please Schmidt comes question Andrew Citi. with from

Andrew Schmidt

for running our are that and expected, conservatism applies commentary in there beat look taking that. the growth But Thanks second sounds dig are outlook, built it you’ve the the little absorbed things question a if expectations. bit quarter, a outlook? there. beat better here in want gross some the but bit things probably definitely investments Hey, Obviously, you of little profit my organic to Hey, maybe a Because at for the Tim. some like qualitative into John. than I here. Good like

between, curious back in like more the the So just the half. Thanks. bullish bridge just and quantitative commentary help to gap sounds outlooks

Tim Murphy

And aggressively back results feel of half think particularly accelerate lenders the monitoring know mentioned do earlier, being that the other That is within as have and largest recovery just demand QX, repayments. just should said, we’re picking the we up. even we more very loan growth. I in our continue year. good in that Yes, about originating and that organic We started

volume, our that Although, loan we the as control schedule. own and the don’t on to perfect of the repayment repayment always through have to flows that visibility when it duration depends or

of So it’s we – a if don’t matter when. matter really it’s it’s a – more really map think a of

some end flowing we’re volume that And think monitoring. again, we something so And early into may closely that’s of up XXXX.

for And it reasons of is. that’s one the so the where being guide

Andrew Schmidt

makes continue a on a M&A, BXB be so question fairly a focus Got clearly, like And lot sense. That then from look – to it at seems about it. M&A bit is it of That’s you of Do prudent. building will out M&A talk thinking you a We what out here. pipeline, pipeline more you’re building capabilities? Thanks. perspective. little your about verticals a or an kind when

John Morris

very things key if technology Sure. integrations. important the very And could think This of compliment sub-verticals find if drive inside significant integrations always we be see obviously That John. some we – But would as key that obviously BXB both, there’s will be additional you some well, we help already is space. some complimentary in for sub-verticals we’re It’s with the us. automation. that for looking can we

areas, seeing all in really up We new in enormous We’ve a space different on for it’s We you in good immediate So love for on white we’re the opportunity space. BXB into those couple prospects. brought what that gave us a you situation our we it, customer. our our customers. to pipeline, convert of it’s showing examples a confirmed is

where has the really we the add someone can never So both for value automation solution. is value using add been immediately, AP on sides, significant who

there. to dollars, a spending we really see in opportunity make there. And opportunity as the there’s to shareholders an we we’re wisely there future the out near-term think we we enormous opportunities good actually, into invest but really So see sure to continue the look our

Tim Murphy

one other verticals in and the would addition integrations just is on of the the of important BXB, elements supplier add network. to I And side AP

potentially targets in or opportunities verticals verticals when supplier network, to look is the something at BXB either for about think so within And AP. a lot existing that we new broaden we looking

Andrew Schmidt

Appreciate you, John. comments. Got Tim. it. you, Thank the Thank

Operator

Thank you.

Sanjay comes KBW. question. question with with from next Sakhrani your Our Please proceed

Steven Kwok

is actually Kwok in Steven this for taking Thanks for questions. Hi, filling my Sanjay.

Now Later topic ActivePay. I the first was side, been have on of Buy just Pay had the that acquisition The the hot around question Square’s post relationships given it’s a

Tim Murphy

We sale in in really considered process several Now more installment have shifted lot Buy of as be installment focused, past, relationships of lot model a maybe and we cases would with been Yes, view space. a some for have point of fit business we the their Later. of to an loan that e-commerce so which existing lenders, lenders which in that Pay

We have pipeline additional lenders, very the solution area, that customers. nice U.S. we well And and in Now that active in Canada think to Later. both fits installment Buy again, to bring a that really we Pay have with a and on two really customized

And are customers existing so as have growing and we new sourcing that well. we’re customers

Steven Kwok

hiring the you that And it. operating about organic prepare for you near to on should remained Got just wondering I the term? see. also intermediate to the front over the noted how opportunities busy think that margins we

Tim Murphy

So do adjusted We of the I a to want EBITDA in margins. is range growth. to terms probably XX% think XX% good invest in

We different have across market a of number large verticals. very opportunity addressable a

to going we position team, building into and year just in a our and beyond. uh, is very important technology so team sales put think And product that, address to next our ourselves out

good to to it. this XX% think is of I’d a and say we kind probably about way So XX% where quarter where, are

Steven Kwok

for question. Thanks taking Great. my

Operator

you. Thank

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

Joseph Vafi

to nice pedal and to the continuing just. metal M&A results front, the the Good see on guys. Hey

the more How like, BXB. with It tonight, heard about M&A lot kind seen a on looks call years versus BXB on the BXB on we’ve do the relative off And strategic follow-up we’ve start a focus on perhaps I’ll payment of question. Just, one a on that? I in it to more see then you on versus side where have volume now? consumer of is after business couple front

Tim Murphy

post Yes, as business other see XX% are our that nicely we growing, BillingTree of well. lot – today, growing we it’s parts about of and

can faster think growing than it be the so to it’s continue So part of that, bigger why that’s those, a we mix.

with into make mid organic, to say starts part become – bigger XX% if back acquisitions course, mix. that would XX% I we range move So be if even up would to we’re of of it could the sticking

grow. largest loan expect It’s want definitely to become repayments to bigger. we behind So second today, it to continue the vertical and we BXB

Joseph Vafi

integrations just, on, ISV are up And integrations following you’re side, know, Okay. growing on those just of natural a opportunities. your wondering and relative lot. the via Thanks continuing then getting cadence secondly integrations on cross other sell an it’s ISV what see a organic kind basis the considering on of you question the ISV lot the M&A, you Tim’s M&A earlier, your base, being to and on

Tim Murphy

of from see verticals. this do credit We several acquisitions, growth core did quarter Yes. that unions, organically, across, we also loan but added come other a of lot partners repayments, kind

So two continue verticals see of additional maybe course pipeline nice just have could that five within but M&A quarter. in each would pace, we our some then three we the that and we other partners of do outside do And organically to or of a loan BXB. the in repayment verticals additional an accelerated

we expect continue so to would add there. And to

Joseph Vafi

lot, a Thanks Great. guys.

Operator

Thank you.

next question Andrew from Truist question. Securities. with Jeffrey with proceed your Please comes Our

Andrew Jeffrey

the afternoon. appreciate you I question taking this

couple of say, on network. how is relative much sort comment call before As a of bit ISV little I’ll relationship. you of productivity, volume growing from, them a your growth ISV the on partnership sort legacy coming of John, questions that can on have follow-up your come

getting had over I and ISVs. those next couple I’m years. before IPO at from guess there’s the if perhaps and entire since So room I the that productivity for acquired across what footprint signings you’ve wonder growing of versus new

John Morris

Yes. is. there Sure,

those of are the prior themselves. verticals actually our we IPO, growing actually ISVs existing they’re companies still obviously were strong are for really us. – new to and delivering wins – So Many

great still that. from So we’re wins getting

each trying new out and to as part on off. we those better to at portfolios. of it. one that’s But marketing efforts conditions laying the paying We’re doubling and trying actually obviously relationships, wins are and back out getting more game extract that also And those through well, of plans of marketing they’re is

sales side as can continue – as out the growth drive partner with side, piece relationships of additional them to to BXB on suppose on from the the that of repayment we drive I and on those. loan we So as it. well

we our get one there’s a we organically, of through when know pent-up partners parts our there’s area opportunity business at great the look So we driving better new that as and sales different that’s that at there. demand growth channel

Andrew Jeffrey

Thank of sort in other forward plus big Just Okay. Can grows faster, about seeing the I to others? And just for step as can back some you think or your think yield. is what perhaps and I’ll talk categories slide take your presentation about yield relative Slide think example, about impact look that. then to investor in the you. we business. three across to and you BXB a XX is ARM the really helpful four businesses, trying of your as,

just model frame that to So trying up forward. as we

Tim Murphy

Yes, I’ll take that.

take a than BXB north probably So basis little a bit about piece. probably of merchant yield XXX. Loan BXB space take rate, talking I’m is net bit yes, The probably piece XXX is it lower points. is little or repayment we around somewhere by that. acquiring revenue right

AP about So virtual bit cards. if maybe we – a but the higher think little is side

moving the XXX probably ARM it points. lower. basis I’d as range, is So part quarter, maybe is for say right probably basis take points, to you of basis our a overall But bigger historically, in somewhere on this while, why is that average, up healthcare maybe around the was XXX becomes BillingTree a – XXX then it’s little which a probably now XXX points moving same it, points bit call and mix. in up XXX see slightly more basis from rate

XXX combined basis as contribution. in on a of bring somewhere to the XXX So I’d say BillingTree points between we kind full in basis

Andrew Jeffrey

same? And in. to the Okay. revenue overall just compared growth helpful. one higher organic – That’s BillingTree’s super quick BillingTree’s or if business, sneak or the one I could last lower

Tim Murphy

kind It’s similar. to mid-teens, of high It’s teens. mid

growth. had also rate, they’re so maybe our talked just thought is we than little average. nicely. fastest-growing we nice either very or part BXB, about corporate a BillingTree And even Probably And take bit business name the strong margins in but the of higher a like growing

Andrew Jeffrey

lot. Thank That helps a much. you very

Tim Murphy

Yes.

Operator

you. Thank

Our Autonomous. Maurer proceed with with questions. Please next from Craig comes question your

Craig Maurer

Yes. for the Two questions Hi, questions, of some taking on verticals. traditional your thanks guys.

what partners auto vertical discuss maybe things are you’re healthcare chip as are that still seeing telling impacting segment into and you finance you as your has secondly, just your shortages reaccelerated? in know used business. the I like elective we’re can And evidence First, supply the you’re in more seeing definitely what heavily healthcare reports car chains.

you However, with are Mercedes Thanks. Benz, there. to into captive grow looking entered and have

John Morris

Yes.

from we went have So with and surveyed hospital come and and the it health procedures. the bed we when their our – out to we side, impact continues just have coming back the kind I heard of that on what’s care to really the way and strongly. that’s how situation COVID could customers was same some thing guess elective procedures. Hopefully, elective was customers. That back just temporary, variant monitor and it happening

could a right So now, see In There’s lot pent-up year areas. in positive. we different into we healthcare in healthcare next several within the of really probably that’s think demand general. that we’re space, going

of they’re We’re provider a payment-driven the where directly. part in healthcare, consumer paying just

procedures – space suppliers also cards. such the where their hospital the then in that’s so where to out virtual elective insurance is provider We’re benefiting disbursements, of lot lot see third-party with through paying pay large And we of for would AP that a to payments us. systems doing a a a administrator AP provider, we’re

customer, auto there the lot cars. next right, and material recovery then hasn’t seen potential of large but great been Mercedes a as with shortages. a there’s either. chip and this declines customer, And year any into general. used from you’re we’re And lending, a half is think is we more Mercedes in cars year of going so of focused And in back business we in haven’t used in on impacted much most volume our healthcare

Craig Maurer

Thanks a lot.

Operator

Thank you.

Our final with Please question William with your Bob question. is proceed Blair. Napoli from

Bob Napoli

you. Good thank Hi, afternoon.

personal trended? for that you about? – and rates be And you’re what how growth talking repayments, that loans year-over-year has the loan for in to for what is that going are acceleration growth volume important seeing getting Is loans? On auto payment

Tim Murphy

Yes. auto COVID be in has personal probably I mean, even to on loans a normalized throughout kind continued the basis, mid-teens. XX%-plus. is And of

of And that see so growth we see originations see it really part a matter do a loans there. organic do It’s happening. back, do as We earlier. of get so mentioned for repayment that just auto to our with to coming with back. us combine personal And We can growth volume important of I that rate is very outlook. through the normalized timing how organic that’s outlook that business, demand coming back flows that growth half if mid-teens in the And get the you going and of the to then that kind XXXX. we back when a year into

Bob Napoli

Okay. side, Thank so the BXB on merchant made then acquisitions, the you’ve business, that like? payments AP And on on four different What and does acquiring look five I And side. the you. verticals Or from catch, organization Visa? that reporting these perspective? organization I Is you? up a each hired – you is John, of didn’t from to is leadership Divi being how are or that structured there mean businesses, – one

John Morris

Bob. Sure, Yes.

separate perspective the team. and him here, a to From excited great we we the directly will about an having we’re leadership new we’ll that on be in loan mentioned hire overall reporting me, have So our verticals. did that repayment BXB out

absolutely it just those to is there. call. just internally before have continue we couldn’t know teams on as And announcement later our that. conversations we looking some that on bring But in around trying get who squeezed be some this going to have to all We’re to we’re this month, together, leader

We’re super excited though.

blessed there. to imagine, and our the are superior with what great we’ve product – members solutions can marketplace. you As some team in technology we’re seeing very been And we’ve

some look us through some together year. clarity on as So it, that that that bit of we’re on where bring give for we doing showing teams clearly more piece But of this of to that it. and on as move headed little more know you a we’re piece be we’ll our we what and we

Bob Napoli

Are make AP. made the are you you large cross-sell? And market big confident AR AR acquisition – in between you relevant? – balance side, And out? that another mean in What looking a cross-sell? so the make believing metrics that? How in the to AR the what’s then one acquisitions the side side, you the enough I easy are cross-sell? Are seeing to can cross-sell on cross-sell how on side on give is Are you the you on and acquiring obviously, merchant the on to cross-sell? that from player that

John Morris

Go ahead.

Bob Napoli

– you going give work. thoughts how can us mean Or give metrics being? I that’s hoping in the some successful on to and just us like you’re how future No,

Tim Murphy

a Yes. I it different lot mean we verticals. see of across

a see use wanting idea having lot That’s the something payments that lenders we general. shop capabilities. our In they in AP of to a of our fact, for like one-stop just

and it can now where, example, both provide we Sage AP a then BXB We automation, – have also BXB merchant services acquiring to for see customer. within Acumatica, or within single

sides. payment team for provider have Acumatica a the positive just at Our that on was really one and the of Summit lot both to just out Annual feedback getting and ability do

robust pretty a building they’re pipeline in Acumatica. Sage So and

do I uptick AR can both we’re that we And lending and AP. really we’re there. seeing said, nice our to and customers, selling also like Now

happening. So It’s it’s real.

our salespeople there pipelines building that. We and out on have executing

Bob Napoli

on And of side you. question business. the Thank last then virtual the card

pretty is in in dramatic player transaction. space increases the some revenue showing Another per

the think Now in you going today is what they’re the might is of SMB what Or can mid-market. virtual have space, that SMB opportunity? BXB get – Do have be? space Should somebody same same rate are benefits more. for rest to card it the of see in that because to the type not you business? to penetration your and more you’re you more And – I that

Tim Murphy

we them because card nice virtual had we penetration liked reasons one was we so the acquired, they already. that Yes, the companies of –

or check were focused. They card ACH virtual focused. weren’t they So

our – somewhere penetration higher. bit ours think with little I of teens high across all Maybe So much existing it’s than of may a the ability business, to to XX% the be average. kind in our higher go

on rates example. don’t of them higher. folks ACH, So also we’re do We bring to have for it to get base But we more outsource that’s focused can than we’re in-house a this. at experts which and a kind starting we those off are able think We that. is higher who supplier ourselves, enablement, probably been why company

AP all employ which And room think that. adoption, to and we’re certainly supplier And team to of strategy, be effective now technology the same we doing platform and for same together more earlier looking people businesses the do have of question, bringing so enablement we there’s on a could your within think BXB, those the we businesses. across

been increase. much absolutely but probably we’ve from ACH, as room the just focused to card more there’s not virtual BXB so beginning on And and within

John Morris

And size much volume obviously, deal the the as pursuing. deal we’re and is size greater the

Bob Napoli

you. Thank Appreciate it.

Operator

you. Thank

your question comes proceed with Our question. Stanley. with from next Faucette Morgan Please James

James Faucette

follow-up times other you’re together really how don’t just wanted versus and your BXB, maybe of that’s much the the I I seen hadn’t thanks. lot of BXB. are solutions actually a as get curious, Yes, about that BXB capabilities really together asked great but question just running have competition ask everybody offering about real I’m solutions before? in to much how I’m and and on customers, you into putting run lot talking into suppliers. to – a a customers kind of think I a talking we sense you competition, putting

Tim Murphy

the We that’s to electronic has Yes. partners, me, made cards, open, be away talking enterprise-size and pay. you’re you specifically majority excuse We merchants, and invoice – customers, as see we’re with them using business, into side have cases, could share they cases, virtual When about in we’re of from banks larger or when might of taken and the most taking customer legacy CSI. payments AP running still payments might But banks. electronic oftentimes, the not not wide the see suppliers. the

wide it’s space. just open And a so

then oftentimes, checks So virtual to just those focus and paper versus we see larger and in to legacy we’re but on methods we I do other like competing which would card. from them banks payment names time customers, of electronic, some mentioned, against to time, moving

John Morris

card we at even our level, one total modalities, they enterprise Obviously, then a ACH – one-stop all that different solution ability payment we a a is of a to an invoice its one technology, with back writing umbrella payment may superior along and a throughout ability system. checks under actual they and be they’re that the of find ERP processing track just way payment their pay where it’s to into for trace the life And the shop it deliver using all cycle with way. and bring using processing to may purchasing be

with in We’re we have least as anything superior offering today. not seeing competes the our we think technology, marketplace at that

James Faucette

color. expansion in much right of that and split we contribution? customers? existing terms really customers is and That’s visibility how growth revenue And between or of their now terms And with with versus then growth, growth evolution volumes revenue are useful in new how adding own seeing

Tim Murphy

still more probably I’d we’ve partners. two-thirds as that has it’s Yes, customers. over evolved lot added But existing ISV time a say

lower-penetrated and in a ISVs card it is areas room existing customers, of a existing there’s think, loan sales other have we amount the of force, thing, the to which penetration, we the with be to of just of which now are we is with our and of the so. majority particularly have the So growing more But repayments, customers. customer today some we verticals more acceptance where to somewhere within lot verticals teens, and a very partners access adding just lot course, run still new good a may do are

it, that’s and of continue more as our well. we to force, new So we’ll customer but wins ISV a add still partners grow see as sales majority probably

John Morris

opportunity Remember, just that there out customers. on we pay may to from those be well. upside also our companies those we total card some were some – side, predominantly of roll acquired as some as then we solution great virtual of And older our There’s legacy obviously, and BXB customers. these

James Faucette

That’s really Thank you good. very much.

John Morris

Thank you.

Operator

now to the for call turn have remarks. Ladies Morris of over question-and-answer the end closing and Thank John you. gentlemen, the reached we session. I will

John Morris

for questions for your you, Thank and today everyone, time. your

we’re about As have rest the excited that we we super year the into our of and and second the for even quarter results reported, outlook XXXX.

Our perform well. business continues to

opportunities growth are there. organic Our

Our are pipelines strong.

and business very We to ISV and are members investment want loan organically of for in that. we deliver shareholders, We super implementation members new continue good that’s and organically. have for team channels our acquisitions to joined our about excited as our the think continue markets significant the results, that drive to grateful we in the well team as We us well space. and serve, in excited continue the invest help specifically see to We’ll about pipeline our we’re opportunities that from we’re continue as really our space the opportunities just the repayment we opportunities what’s there. the BXB in to superior white see the a and us for existing space

forward your for to and look you thank arises. the individually you when So with today time speaking opportunity

Operator

your time. your today’s you Thank disconnect lines for and may a and This conference, have concludes evening. participation, wonderful you this at

Repay (RPAY) 10 Aug 212021 Q2 Earnings call transcript