i3 Verticals (IIIV) Q4 2024 earnings summary

Executive summary

• Fiscal year 2024 marked a transformation to a pure-play vertical market software provider, highlighted by the sale of the merchant services business and a focus on recurring revenue streams and operational efficiency.

• Q4 2024 revenue from continuing operations was $60.9M, up 4% year-over-year; full-year revenue reached $229.9M, a 1.4% increase.

• Adjusted EBITDA for Q4 2024 was $16.2M, up 4% year-over-year; full-year adjusted EBITDA was $58.3M, down 1.8% from FY23.

• The company is positioned for growth in 2025, with a strong sales funnel, new product launches, and a robust M&A pipeline targeting public sector and education verticals.

• Net income from continuing operations in Q4 2024 was $11.2M, reversing prior year losses; full-year net loss narrowed to $5.3M.

Financial highlights

• Q4 2024 revenues from continuing operations rose 4% year-over-year to $60.9M, with organic growth of 2%.

• Annualized recurring revenues increased 7.5% to $188.2M, with 77% of Q4 revenues from recurring sources.

• Adjusted EBITDA grew 4% to $16.2M in Q4, representing a 26.7% margin.

• Pro forma adjusted diluted EPS from continuing operations was $0.15 for Q4 2024.

• Q4 net income from continuing operations was $11.2M; full-year net loss from continuing operations was $5.3M.

Outlook and guidance

• Fiscal 2025 guidance: revenues of $243–$263M, adjusted EBITDA of $63–$71.5M, and pro forma adjusted diluted EPS of $1.05–$1.25.

• High single-digit organic revenue growth and 50–100 basis points of annual adjusted EBITDA margin improvement expected.

• Revenue seasonality projected: Q1 23.5%, Q2 26%, Q3 25%, Q4 25.5%.

• Guidance excludes impact of future acquisitions, dispositions, and transaction-related costs.