The following is a summary of the I3 Verticals, Inc. (IIIV) Q4 2024 Earnings Call Transcript:
Financial Performance:
Q4 2024 revenue totaled $60.9 million, marking a 4% increase from $58.6 million in Q4 2023, with organic growth contributing 2%.
Annualized recurring revenues climbed 7.5% to $188.2 million in Q4 2024 from $175.1 million in Q4 2023, with 77% of Q4 revenues being recurring.
Adjusted EBITDA for Q4 2024 rose by 4% year-over-year to $16.2 million.Pro forma adjusted diluted EPS was $0.15 for Q4 2024.
Business Progress:
The company has moved towards a cloud-first business model, centralizing cybersecurity measures and achieving efficient cloud migration of data centers.
New Chief Product Officer, Chad Fenner, hired to drive product strategy across the company's verticals.
Significant technology transitions and product roadmap expansions noted, with emphasis on SOC 2 Type II compliance for cybersecurity.
Structured sales and operational frameworks have been implemented to bolster customer engagement and increase revenue streams.
Opportunities:
Continuing to prioritize cloud infrastructure investments and operational efficiencies.
Anticipating sustained demand in the education, public sector, and utilities markets.
Expectation of ongoing acquisitions to drive growth and geographic expansion.
Risks:
Noted a decline in Healthcare segment revenues due to market consolidation.
Professional services revenue faced a decline of 7%, mainly due to delays caused by external factors like public worker union strikes.
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