i3 Verticals Reports Fourth Quarter and Full Year 2018 Financial Results
Highlights for the fiscal fourth quarter and full year of 2018 vs. 2017
- Fourth quarter revenue was
$84.1 million , an increase of 17% over the prior year's fourth quarter; Full year revenue was$323.5 million , an increase of 23% over the prior year. - Fourth quarter net revenue1, which excludes interchange and related network fees, was
$28.1 million , an increase of 38% over the prior year's fourth quarter; Full year net revenue1 was$109.0 million , an increase of 48% over the prior year.
- Fourth quarter net income was
$2 .9 million; Full year net loss was$5.0 million . - Fourth quarter adjusted EBITDA1 was
$7.8 million , an increase of 36% over the prior year's fourth quarter; Full year adjusted EBITDA1 was$30.3 million , an increase of 58% over the prior year. - Fourth quarter adjusted EBITDA1 as a percentage of net revenue1 was 28%, compared to 28% in the prior year's fourth quarter; Full year adjusted EBITDA1 as a percentage of net revenue1 was 28%, an increase from 26% in the prior year.
- Fourth quarter diluted net income per share available to Class A common stock was
$0.09 ; Full year diluted net loss per share available to Class A common stock2 was$0.08 . - Fourth quarter and full year pro forma adjusted diluted earnings per share1, which gives pro forma effect to the Company's going forward effective tax rate following its Up-C reorganization in connection with its initial public offering (“IPO”), was
$0.19 and$0.57 , respectively.
- Integrated payments3 were 45% and 43% of payment volume for the three months and full year ended
September 30, 2018 , respectively. - Debt was reduced by
$74.1 million during the year endedSeptember 30, 2018 , primarily with net proceeds from the Company’s IPO and the conversion of a portion of its junior subordinated notes in connection with the IPO. AtSeptember 30, 2018 , the ratio of consolidated debt-to-EBITDA, as defined in the Company's Senior Secured Credit Facility, was 1.27x. - Since the third quarter earnings release issued on
August 9, 2018 , the Company has completed three acquisitions, all within the Proprietary Software and Payments reporting segment. Two of the acquisitions were within the public sector vertical, and the third acquisition provided technology that enhances the Burton Platform. One of the public sector acquisitions was completed during the fourth quarter. The other two acquisitions were completed subsequent toSeptember 30, 2018 . The aggregate purchase price, excluding contingent consideration, for these three acquisitions was$27.1 million .
- Represents a non-GAAP financial measure. For additional information (including reconciliation information), see the attached schedules to this release.
- Diluted loss per Class A common stock is presented only for the period after the Company’s Reorganization Transactions (as defined in the Company's prospectus, dated
June 20, 2018 , filed with theSecurities and Exchange Commission ). - Integrated payments represents payment transactions that are generated in situations where payment technology is embedded within the Company's own proprietary software, a client’s software or critical business process.
Revised 2019 Outlook
The Company's practice is to provide annual guidance, excluding future acquisitions and transaction-related costs. The outlook also excludes the effect of software deferred revenue write-downs resulting from acquisitions that have already closed.1 The Company is providing the following revised outlook for the fiscal year ending
(in thousands, except per share amounts) | Outlook Range | ||||
Fiscal year ended September 30, 2019 | |||||
Adjusted net revenue (non-GAAP) | $ | 122,000 | - | $ | 128,000 |
Adjusted EBITDA (non-GAAP) | $ | 35,000 | - | $ | 36,000 |
Adjusted diluted earnings per share(2) (non-GAAP) | $ | 0.84 | - | $ | 0.87 |
_______________________
- GAAP require companies to adjust, as necessary, beginning balances of acquired deferred revenue to fair value as part of acquisition accounting as defined by GAAP. For the 2019 outlook, the Company has removed the effect of these adjustments to acquisition date fair value from acquisitions that have closed as of the earnings release date.
- Assumes an effective pro forma tax rate of 25.0% (non-GAAP).
With respect to the “Revised 2019 Outlook” above, reconciliation of adjusted net revenue, adjusted EBITDA and adjusted diluted earnings per share guidance to the closest corresponding GAAP measure on a forward-looking basis is not available without unreasonable efforts. This inability results from the inherent difficulty in forecasting generally and quantifying certain projected amounts that are necessary for such reconciliations. In particular, sufficient information is not available to calculate certain adjustments required for such reconciliations, including changes in the fair value of contingent consideration, income tax expenses of
Conference Call
The Company will host a conference call on Thursday, November 29, 2018, at
To listen to the call live via webcast, participants should visit the “Investors” section of the Company’s website, www.i3verticals.com, and go to the “Events & Presentations” page approximately 10 minutes prior to the start of the call. The online replay will be available on this page of the Company’s website beginning shortly after the conclusion of the call and will remain available for 30 days.
Non-GAAP Measures
This press release contains information prepared in conformity with GAAP as well as non-GAAP information. It is management’s intent to provide non-GAAP financial information to enhance understanding of the Company's consolidated financial information as prepared in accordance with GAAP. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Each non-GAAP financial measure and the most directly comparable GAAP financial measure are presented so as not to imply that more emphasis should be placed on the non-GAAP measure. The non-GAAP financial information presented may be determined or calculated differently by other companies.
Additional information about non-GAAP financial measures, including, but not limited to, net revenue, pro forma adjusted net income, adjusted EBITDA and pro forma adjusted diluted EPS, and a reconciliation of those measures to the most directly comparable GAAP measures is included on pages 10-12 in the financial schedules of this release.
About
Helping drive the convergence of software and payments,
Forward-Looking Statements
This release contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact or relating to present facts or current conditions included in this release are forward-looking statements including any statements regarding guidance and statements of a general economic or industry specific nature. Forward-looking statements give the Company's current expectations and projections relating to its financial condition, results of operations, guidance, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “could have,” “exceed,” “significantly,” “likely” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events.
The forward-looking statements contained in this release are based on assumptions that we have made in light of the Company's industry experience and its perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. As you review and consider information presented herein, you should understand that these statements are not guarantees of future performance or results. They depend upon future events and are subject to risks, uncertainties (many of which are beyond the Company's control) and assumptions. Although we believe that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect the Company's actual future performance or results and cause them to differ materially from those anticipated in the forward-looking statements. Certain of these factors and other risks are discussed in the Company's filings with the
Any forward-looking statement made by us in this release speaks only as of the date of this release. Factors or events that could cause the Company's actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Contacts: |
|
Clay Whitson | Scott Meriwether |
Chief Financial Officer | Senior Vice President - Finance |
(615) 988-9890 |
(615) 942-6175 |
cwhitson@i3verticals.com | smeriwether@i3verticals.com |
($ in thousands, except share and per share amounts)
Three months ended September 30, | Year ended September 30, | ||||||||||||||||||||
2018 | 2017 | % Change | 2018 | 2017 | % Change | ||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | |||||||||||||||||||
Revenue | $ | 84,053 | $ | 71,779 | 17 | % | $ | 323,508 | $ | 262,571 | 23 | % | |||||||||
Operating expenses | |||||||||||||||||||||
Interchange and network fees | 55,966 | 51,433 | 9 | % | 214,543 | 189,112 | 13 | % | |||||||||||||
Other costs of services | 10,195 | 8,002 | 27 | % | 40,314 | 28,798 | 40 | % | |||||||||||||
Selling general and administrative | 10,848 | 8,029 | 35 | % | 40,585 | 27,194 | 49 | % | |||||||||||||
Depreciation and amortization | 2,963 | 2,632 | 13 | % | 11,839 | 10,085 | 17 | % | |||||||||||||
Change in fair value of contingent consideration | 586 | (395 | ) | (248 | )% | 3,866 | (218 | ) | n/m | ||||||||||||
Total operating expenses | 80,558 | 69,701 | 16 | % | 311,147 | 254,971 | 22 | % | |||||||||||||
Income from operations | 3,495 | 2,078 | 68 | % | 12,361 | 7,600 | 63 | % | |||||||||||||
Other expenses | |||||||||||||||||||||
Interest expense, net | 849 | 1,975 | (57 | )% | 8,498 | 6,936 | 23 | % | |||||||||||||
Change in fair value of warrant liability | — | (357 | ) | n/m | 8,487 | (415 | ) | n/m | |||||||||||||
Total other expenses | 849 | 1,618 | (48 | )% | 16,985 | 6,521 | 160 | % | |||||||||||||
Income (loss) before income taxes | 2,646 | 460 | 475 | % | (4,624 | ) | 1,079 | (529 | )% | ||||||||||||
(Benefit from) provision for income taxes | (216 | ) | 76 | (384 | )% | 337 | 177 | 90 | % | ||||||||||||
Net income (loss) | 2,862 | 384 | 645 | % | (4,961 | ) | 902 | (650 | )% | ||||||||||||
Net income attributable to non-controlling interest | 2,028 | — | n/m | 1,937 | — | n/m | |||||||||||||||
Net income (loss) attributable to i3 Verticals, Inc. | $ | 834 | $ | 384 | 117 | % | $ | (6,898 | ) | $ | 902 | (865 | )% | ||||||||
Net income per share available to Class A common stock(1): |
|||||||||||||||||||||
Basic | $ | 0.09 | $ | 0.08 | |||||||||||||||||
Diluted | $ | 0.09 | $ | 0.08 | |||||||||||||||||
Weighted average shares of Class A common stock outstanding(1): | |||||||||||||||||||||
Basic | 8,812,630 | 8,812,630 | |||||||||||||||||||
Diluted | 26,891,688 | 26,873,878 |
__________________________
- Basic and diluted net income per Class A common stock are presented only for the period after the Company’s Reorganization Transactions.
(Unaudited)
($ in thousands, except per share amounts)
Three months ended September 30, | Year ended September 30, | ||||||||||||||||
2018 | 2017 | % Change |
2018 | 2017 | % Change | ||||||||||||
Net revenue (non-GAAP) | $ | 28,087 | $ | 20,346 | 38 | % | $ | 108,965 | $ | 73,459 | 48 | % | |||||
Adjusted EBITDA (non-GAAP) |
7,849 | 5,751 | 36 | % | 30,348 | 19,264 | 58 | % | |||||||||
Pro forma adjusted diluted earnings per share (non-GAAP) |
$ | 0.19 | $ | 0.57 |
(Unaudited)
($ in thousands)
Three months ended September 30, | Year ended September 30, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Payment volume(1) | $ | 2,971,220 | $ | 2,772,308 | $ | 11,554,806 | $ | 10,269,435 |
__________________________
- Payment volume is the net dollar value of both 1) Visa,
Mastercard and other payment network transactions processed by the Company's clients and settled to clients by us and 2) ACH transactions processed by the Company's clients and settled to clients by the Company.
(Unaudited)
($ in thousands)
As of and for the Three Months Ended September 30, 2018 | ||||||||||||
Merchant Services | Proprietary Software and Payments | Other | Total | |||||||||
Revenue | $ | 78,258 | $ | 5,795 | $ | — | $ | 84,053 | ||||
Operating expenses | ||||||||||||
Interchange and network fees | 54,683 | 1,283 | — | 55,966 | ||||||||
Other costs of services | 9,450 | 746 | (1 | ) | 10,195 | |||||||
Selling general and administrative | 6,164 | 2,057 | 2,627 | 10,848 | ||||||||
Depreciation and amortization | 2,395 | 482 | 86 | 2,963 | ||||||||
Change in fair value of contingent consideration | 237 | 349 | — | 586 | ||||||||
Income (loss) from operations | $ | 5,329 | $ | 878 | $ | (2,712 | ) | $ | 3,495 | |||
Payment volume |
$ | 2,850,503 | $ | 120,717 | $ | — | $ | 2,971,220 |
As of and for the Year ended September 30, 2018 | ||||||||||||
Merchant Services | Proprietary Software and Payments | Other | Total | |||||||||
Revenue | $ | 302,929 | $ | 20,582 | $ | (3 | ) | $ | 323,508 | |||
Operating expenses | ||||||||||||
Interchange and network fees | 209,695 | 4,848 | — | 214,543 | ||||||||
Other costs of services | 38,399 | 1,916 | (1 | ) | 40,314 | |||||||
Selling general and administrative | 23,291 | 7,602 | 9,692 | 40,585 | ||||||||
Depreciation and amortization | 9,535 | 2,097 | 207 | 11,839 | ||||||||
Change in fair value of contingent consideration | 1,772 | 2,094 | — | 3,866 | ||||||||
Income (loss) from operations | $ | 20,237 | $ | 2,025 | $ | (9,901 | ) | $ | 12,361 | |||
Payment volume |
$ | 11,072,266 | $ | 482,540 | $ | — | $ | 11,554,806 |
(Unaudited)
($ in thousands)
As of and for the Three Months Ended September 30, 2017 | ||||||||||||||
Merchant Services | Proprietary Software and Payments | Other | Total | |||||||||||
Revenue | $ | 67,560 | $ | 4,239 | $ | (20 | ) | $ | 71,779 | |||||
Operating expenses | ||||||||||||||
Interchange and network fees | 50,360 | 1,073 | — | 51,433 | ||||||||||
Other costs of services | 7,459 | 563 | (20 | ) | 8,002 | |||||||||
Selling general and administrative | 4,383 | 1,926 | 1,720 | 8,029 | ||||||||||
Depreciation and amortization | 2,097 | 504 | 31 | 2,632 | ||||||||||
Change in fair value of contingent consideration | (400 | ) | 5 | — | (395 | ) | ||||||||
Income (loss) from operations | $ | 3,661 | $ | 168 | $ | (1,751 | ) | $ | 2,078 | |||||
Payment volume | $ | 2,668,734 | $ | 103,574 | $ | — | $ | 2,772,308 |
As of and for the Year ended September 30, 2017 | ||||||||||||||
Merchant Services | Proprietary Software and Payments | Other | Total | |||||||||||
Revenue | $ | 248,005 | $ | 14,582 | $ | (16 | ) | $ | 262,571 | |||||
Operating expenses | ||||||||||||||
Interchange and network fees | 185,141 | 3,971 | — | 189,112 | ||||||||||
Other costs of services | 27,350 | 1,559 | (111 | ) | 28,798 | |||||||||
Selling general and administrative | 13,858 | 7,194 | 6,142 | 27,194 | ||||||||||
Depreciation and amortization | 8,029 | 1,938 | 118 | 10,085 | ||||||||||
Change in fair value of contingent consideration | 192 | (410 | ) | — | (218 | ) | ||||||||
Income (loss) from operations | $ | 13,435 | $ | 330 | $ | (6,165 | ) | $ | 7,600 | |||||
Payment volume | $ | 9,883,947 | $ | 385,488 | $ | — | $ | 10,269,435 |
($ in thousands, except share and per share amounts)
September 30, | September 30, | |||||
2018 | 2017 | |||||
(unaudited) | ||||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 572 | $ | 955 | ||
Accounts receivable, net | 12,500 | 8,412 | ||||
Settlement assets | 863 | 5,196 | ||||
Prepaid expenses and other current assets | 2,630 | 1,141 | ||||
Total current assets | 16,565 | 15,704 | ||||
Property and equipment, net | 2,958 | 1,420 | ||||
Restricted cash | 665 | 1,013 | ||||
Capitalized software, net | 3,372 | 3,778 | ||||
Goodwill | 83,954 | 58,517 | ||||
Intangible assets, net | 66,023 | 59,259 | ||||
Other assets | 1,605 | 300 | ||||
Total assets | $ | 175,142 | $ | 139,991 | ||
Liabilities, Redeemable Class A Units and equity | ||||||
Liabilities | ||||||
Current liabilities | ||||||
Accounts payable | 4,114 | 1,600 | ||||
Current portion of long-term debt | 5,000 | 4,000 | ||||
Accrued expenses and other current liabilities | 11,538 | 6,706 | ||||
Settlement obligations | 863 | 5,196 | ||||
Deferred revenue | 4,927 | 2,719 | ||||
Total current liabilities | 26,442 | 20,221 | ||||
Long-term debt, less current portion and debt issuance costs, net | 31,776 | 106,836 | ||||
Other long-term liabilities | 4,726 | 2,065 | ||||
Total liabilities | 62,944 | 129,122 | ||||
Commitments and contingencies | ||||||
Redeemable Class A units; 0 and 4,900,000 Units authorized, issued and outstanding as of September 30, 2018 and September 30, 2017, respectively | — | 7,723 | ||||
Stockholders' / Members' equity | ||||||
Members' equity | — | 36,164 | ||||
Preferred stock, par value $0.0001 per share, 10,000,000 shares authorized; 0 shares issued and outstanding as of September 30, 2018 | — | — | ||||
Class A common stock, par value $0.0001 per share, 150,000,000 shares authorized; 9,112,042 shares issued and outstanding as of September 30, 2018 | 1 | — | ||||
Class B common stock, par value $0.0001 per share, 40,000,000 shares authorized; 17,213,806 shares issued and outstanding as of September 30, 2018 | 2 | — | ||||
Additional paid-in-capital | 38,562 | — | ||||
Accumulated earnings (deficit) | 736 | (33,018 | ) | |||
Total Stockholders' / Members' equity | 39,301 | 3,146 | ||||
Non-controlling interest | 72,897 | — | ||||
Total equity | 112,198 | 3,146 | ||||
Total liabilities, Redeemable Class A Units and members' / stockholders' equity (deficit) | $ | 175,142 | $ | 139,991 |
($ in thousands)
Year ended September 30, | |||||||
2018 | 2017 | ||||||
(unaudited) | |||||||
Net cash provided by operating activities | $ | 18,080 | $ | 8,330 | |||
Net cash used in investing activities | $ | (38,055 | ) | $ | (47,903 | ) | |
Net cash provided by financing activities | $ | 19,244 | $ | 37,352 |
Reconciliation of GAAP to Non-GAAP Financial Measures
The Company believes that non-GAAP financial measures are important to enable investors to understand and evaluate its ongoing operating results. Accordingly,
Although non-GAAP financial measures are often used to measure the Company's operating results and assess its financial performance, they are not necessarily comparable to similarly titled measures of other companies due to potential inconsistencies in the method of calculation.
(Unaudited)
($ in thousands)
Three months ended September 30, | Year ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income (loss) attributable to i3 Verticals, Inc. | $ | 834 | $ | 384 | $ | (6,898 | ) | $ | 902 | ||||||
Net income attributable to non-controlling interest |
2,028 | — | 1,937 | — | |||||||||||
Non-GAAP Adjustments: |
|||||||||||||||
(Benefit from) provision for income taxes | (216 | ) | 76 | 337 | 177 | ||||||||||
Offering-related expenses(1) | — | — | 124 | — | |||||||||||
Non-cash change in fair value of contingent consideration(2) | 586 | (395 | ) | 3,866 | (218 | ) | |||||||||
Non-cash change in fair value of warrant liability(3) | — | (357 | ) | 8,487 | (415 | ) | |||||||||
Equity-based compensation(4) | 750 | — | 1,567 | — | |||||||||||
Acquisition-related expenses(5) | 53 | 430 | 531 | 766 | |||||||||||
Acquisition intangible amortization(6) | 2,378 | 2,003 | 9,384 | 7,669 | |||||||||||
Non-cash interest expense(7) | 233 | 124 | 1,072 | 453 | |||||||||||
Other taxes(8) | 2 | 11 | 60 | 36 | |||||||||||
Legal settlement(9) | — | 995 | — | 995 | |||||||||||
Non-GAAP pro forma adjusted income before taxes | 6,648 | 3,271 | 20,467 | 10,365 | |||||||||||
Pro forma taxes at effective tax rate(10) | (1,662 | ) | (818 | ) | (5,117 | ) | (2,591 | ) | |||||||
Pro forma adjusted net income(11) | $ | 4,986 | $ | 2,453 | $ | 15,350 | $ | 7,774 | |||||||
Cash interest expense, net(12) | 616 | 1,851 | 7,426 | 6,483 | |||||||||||
Pro forma taxes at effective tax rate(13) | 1,662 | 818 | 5,117 | 2,591 | |||||||||||
Depreciation and internally developed software amortization(14) | 585 | 629 | 2,455 | 2,416 | |||||||||||
Adjusted EBITDA | $ | 7,849 | $ | 5,751 | $ | 30,348 | $ | 19,264 |
______________
- Includes costs associated with forming
i3 Verticals, Inc. and other expenses directly related to the Reorganization Transactions (as defined in the Company's prospectus, datedJune 20, 2018 , filed with theSecurities and Exchange Commission ). - Non-cash change in fair value of contingent consideration reflects the changes in management’s estimates of future cash consideration to be paid in connection with prior acquisitions from the amount estimated as of the later of the most recent balance sheet date forming the beginning of the income statement period or the original estimates made at the closing of the applicable acquisition.
- Non-cash change in warrant liability reflects the fair value change in certain warrants for the Company's common units associated with the Company's mezzanine notes in the aggregate principal amount of
$10.5 million . These warrants are accounted for as liabilities on the Company's consolidated balance sheets and were repaid with proceeds from its IPO. - Equity-based compensation expense consisted of
$750 and$826 related to stock options issued under the Company's 2018 Equity Incentive Plan during the three months and year endedSeptember 30, 2018 , respectively. Additionally, during the year endedSeptember 30, 2018 , the Company incurred$741 related to tax receivables agreement (TRA) non-participation compensatory shares. TRA non-participation compensatory shares were issued to former equity owners as part of the Reorganization Transactions in conjunction with the IPO. - Acquisition-related expenses are the professional service and related costs directly related to the Company's acquisitions and are not part of its core performance.
- Acquisition intangible amortization reflects amortization of intangible assets and software acquired through business combinations, acquired customer portfolios, acquired referral agreements and related asset acquisitions.
- Non-cash interest expense reflects amortization of deferred financing costs.
- Other taxes consist of franchise taxes, commercial activity taxes and other non-income based taxes. Taxes related to salaries or employment are not included.
- Legal settlement is a charge from certain legal proceedings.
- Pro forma corporate income tax expense is based on Non-GAAP adjusted income before taxes and is calculated using tax rates of 25.0% for 2018 and 2017, based on blended federal and state tax rates, considering the Tax Reform Act for 2018.
- Pro forma adjusted net income assumes that the effect of the Reorganization Transactions and the Company's IPO occurred prior to the year ended
September 30, 2018 , and that all net income during that period is available to the Class A common shareholders. Further, pro forma adjusted diluted earnings per share assumes that all Common Units in i3Verticals, LLC and the associated non-voting Class B common stock were exchanged for Class A common stock at the beginning of the period on a one for one basis. - Cash interest expense, net represents all interest expense recorded on statement of operations other than non-cash interest expense, which represents amortization of deferred financing costs.
- Pro forma corporate income tax expense is based on Non-GAAP adjusted income before taxes and is calculated using tax rates of 25.0% for 2018 and 2017, based on blended federal and state tax rates, considering the Tax Reform Act for 2018.
- Depreciation and internally developed software amortization reflects depreciation on the Company's property, plant and equipment, net, and amortization expense on its internally developed capitalized software.
(Unaudited)
($ in ones)
Three months ended September 30, 2018 | Year ended September 30, 2018 | ||||
Diluted net income (loss) available to Class A common stock per share | $ | 0.09 | $ | 0.08 | |
Pro forma adjusted diluted earnings per share (non-GAAP)(1) |
$ | 0.19 | $ | 0.57 | |
Pro forma weighted average shares of adjusted diluted Class A common stock outstanding(2) | 26,891,688 | 26,873,878 |
_______________
- Pro forma adjusted diluted earnings per share is calculated using pro forma adjusted net income and the pro forma weighted average shares of adjusted diluted Class A common stock outstanding. It presumes that the effect of the Reorganization Transactions and the Company's IPO occurred prior to the year ended
September 30, 2018 , and that all net income during that period is available to the Class A common shareholders. Further, pro forma adjusted diluted earnings per share assumes that all Common Units in i3Verticals, LLC and the associated non-voting Class B common stock were exchanged for Class A common stock at the beginning of the period on a one for one basis. - Pro forma weighted average shares of adjusted diluted Class A common stock outstanding include 17,213,806 outstanding shares of Class A common stock issuable upon the exchange of Common Units in i3
Verticals, LLC and 865,252 and 847,442 shares of unvested Class A common stock and options for the three months and year endedSeptember 30, 2018 , respectively.
(Unaudited)
($ in thousands)
Three months ended September 30, | Year ended September 30, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Revenue | $ | 84,053 | $ | 71,779 | $ | 323,508 | $ | 262,571 | |||
Interchange and network fees | 55,966 | 51,433 | 214,543 | 189,112 | |||||||
Net Revenue | $ | 28,087 | $ | 20,346 | $ | 108,965 | $ | 73,459 |
Source: i3 Verticals