I3 Verticals Q1 revenue slightly beats analyst expectations

Overview

• Enterprise software provider's fiscal Q1 revenue slightly beat analyst expectations

• Net income for fiscal Q1 declined compared to the previous year

• Company completed acquisition of motor vehicle insurance verification software firm

Outlook

• Company revises full-year revenue guidance to $223 mln - $234 mln

• Company increases full-year adjusted EBITDA forecast to $61 mln - $66.5 mln

• Company maintains full-year adjusted EPS guidance at $1.08 - $1.16

Result Drivers

• RECURRING REVENUE GROWTH - Co reported an 8.4% increase in recurring revenue, reflecting its focus on long-term growth strategy

• SaaS REVENUE INCREASE - SaaS growth rose to 24% in Q1, contributing to overall revenue performance

• ACQUISITION IMPACT - Co acquired a motor vehicle insurance verification software firm, enhancing its transportation market offerings

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the financial technology (fintech) peer group is "buy"

• Wall Street's median 12-month price target for I3 Verticals Inc is $35.00, about 68.9% above its February 4 closing price of $20.72

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release: ID:nBw80NVF8a

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