Repay Holdings Outperforms in Q3; Shares Rise

Shares of Repay Holdings (RPAY) rose 4.1% during Tuesday’s after market session, after the leading payment solutions provider reported better-than-expected Q3 results.

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Q3 EPS & Revenues Beat

Adjusted earnings of $0.21 per share exceeded analysts’ expectations of $0.18 per share. The company had reported earnings of $0.14 per share in the prior-year period.

Furthermore, revenues jumped 62% year-over-year to $61.1 million, exceeding consensus estimates of $59.35 million. The increase in revenues reflects a 48% surge in card payment volume to $5.6 billion.

Similarly, gross profit increased 69% year-over-year to $45.8 million.

FY2021 Outlook

Based on strong Q3 results, management updated the financial guidance for FY2021. The company expects to post revenues in the range of $216 million to $222 million on the back of an anticipated card payment volume range of $20.3 billion to $20.8 billion.

Furthermore, RPAY expects annual adjusted EBITDA between $93 million and $96 million.

Management Weighs In

The CEO of Repay, John Morris, said, “We’ve made significant strides in driving organic growth and profitability while broadening our addressable market and solutions. In our fast-growing B2B business we have over 80 software integrations, and on the AP side we’ve grown our supplier network to over 105,000.

“We’ve also added many key partnerships over the last few months that should help to further accelerate our B2B business. Additionally, we remain excited about our diversified platform and see strength across all of our other businesses. We look forward to continuing this solid momentum as we move into 2022.”

Wall Street’s Take

Consensus among analysts is a Moderate Buy based on one Buy. The average Repay Holdings price target of $28 implies upside potential of 44.1% from current levels.