Repay Holdings Corp (RPAY)

Repay Holdings Corp: A Comprehensive Overview

Company Profile

History and Background:

• Repay Holdings Corp. (NASDAQ: RPAY) was founded in 2016. It specializes in the technology-enabled integrated payments industry.
• The company focuses on facilitating integrated payments for verticals like healthcare, education, government, and non-profit organizations.
• Its initial public offering (IPO) took place on Feb 12, 2021, and is now listed on the Nasdaq Global Select Market under the symbol RPAY.

Core Business Areas:

• Repay provides a cloud-based software-as-a-service (SaaS) platform that streamlines complex payment workflows for businesses and their customers.
• The company offers various integrated payment solutions like electronic bill presentment and payment (EBPP), credit card processing, ACH payment processing, and virtual terminal payments.
• Additionally, Repay provides integrated payment processing through its omni-channel technology, including online, mobile, and in-person payments.

Leadership Team and Corporate Structure:

• CEO: John Morris
• President and COO: Timothy Bending
• CFO: Michael Shafroth
• SVP of Corporate Development and Strategy: William L. Kennedy
• Head of Corporate Finance and Strategy: Robert T. Wirth
• General Counsel and Secretary: David W. Long

Top Products and Market Share

Top Products and Offerings:

• RepayOne: Flagship platform enabling integrated payment processing solutions for various industries.
• RepayConnect: Provides seamless integration with third-party platforms and systems for comprehensive payment management.
• RepayMobile: Facilitates secure and convenient mobile payment options.
• RepayOmni: Enables omni-channel acceptance of payments, covering different channels like online, in-person, and IVR.
• Repay Analytics: Comprehensive reporting and data analytics to help businesses understand payment trends and customer behavior.

Market Share Analysis:

• Repay's market share in the United States for the verticals it caters to varies.
• As of Q1 2023, the company estimated its market share as:
  • Healthcare: ~ 4.5% based on total U.S. healthcare spend
  • Education: ~ 7.0% based on annual tuition and fees in higher education
  • Government: ~ 2.5% based on total U.S. government spending

The global integrated payments industry is vast and fragmented. Repay faces established and emerging competitors in both domestic and international markets.

Competitive Landscape:

• Key competitors in the U.S. include:
  • Fiserv (FISV): Provides a wide range of financial services and payment processing solutions.
  • Global Payments (GPN): Specializes in merchant acquiring and processing services.
  • Worldpay (WP): Offers payment processing services for online and in-store transactions.
  • TSYS (TSYS): Focuses on credit card processing and merchant acquiring solutions.
• Repay differentiates itself by providing an integrated payment platform specifically designed for targeted verticals and its omni-channel capabilities.

Total Addressable Market

• The total addressable market (TAM) for Repay's solutions is substantial.
• In the U.S. alone, the company estimates the TAM across its core verticals to be:
  • Healthcare: ~$550 billion
  • Education: ~$475 billion
  • Government: ~$350 billion
  • Non-Profit: ~$350 billion
• Based on these figures, the total TAM for Repay in the U.S. is approximately $1.72 trillion.
• This emphasizes the significant opportunity Repay has for growth within the existing market.

Financial Performance

• Repay Holdings Corp. has demonstrated consistent revenue growth in recent years.
• Revenue:
  • 2022: $216.4 million (32% increase)
  • 2021: $163.1 million (36% increase)
  • 2020: $119.9 million
• Net Income:
  • 2022: $25.4 million (532% increase)
  • 2021: $4.3 million
  • 2020: $-30.3 million
• Profit Margin: 12% (2022)
• Earnings per Share (EPS):
  • 2022: $1.94
  • 2021: $0.32
  • 2020: (-$2.33)

Cash Flow and Balance Sheet:

• Cash flow from operations has steadily increased, reaching $24.3 million in Q1 2023 compared to $7.4 million in Q1 2