Repay Holdings Corporation

Welcome to today's earnings conference call being hosted by Repay. With us today are John Morris, co-founder and chief executive officer, and Tim Murphy, chief financial officer. During this call, we will be making forward-looking statements about our beliefs and estimates regarding future events and results. These forward-looking statements are subject to risks and uncertainties, including those set forth in the SEC filings related to today's results. and as well as in our most recent form, 10-K Files with the SEC. Actual results may differ materially from any forward-looking statements that we make today. The forward-looking statements speak only as of today, and we do not assume any obligation or intent to update them, except as required by law. In an effort to provide additional information to investors, today's discussion will also include references to certain non-GAAP financial measures, Reconciliations and other explanations of those non-GAAP financial measures can be found in today's press release and in earnings supplements, each of which are available on the company's IR site. I would now like to turn the call over to Mr. Morris. Please go ahead, sir. You may begin your presentation at this time.

Thank you, operator, and good afternoon, everyone. There are three subjects I will be covering on today's call. First, I'll briefly review our Q2 results and business updates. Second, provide color on our current trends. and what we're expecting for the rest of the year. And lastly, discuss our medium-term vision for the business. First, on the second quarter, we reported card payment volume growth of 34%, total revenue growth of 39%, and gross profit growth of 42%. Organic gross profit growth in the quarter was 10%. We view these as solid results in light of the increasingly uncertain macro environment. We continue to see strength in our B2B payments business during the quarter. This strength is driven by secular tailwinds, including the digitization of business payments, as well as the need to find more efficiencies now that many U.S. businesses are implementing hiring freezes. This has been aided by our focus on our B2B go-to-market strategy, which is partially through our direct sales team, which continues to expand, as well as through our 85 software integration partners. Also importantly, our supplier network has grown to 135,000 vendors. We continue to be at the forefront of B2B innovation, including our offering for both AR and AP. In fact, we were recently honored at Premier Inc's 2022 Breakthroughs Conference with the Supplier Horizon Award within the Purchase Services category. We experienced strong business development quarter in the consumer payments side of our business. We continue to succeed in the credit union space, reaching 225 credit union clients. One of our new partners in the space is Q2. Many of you know Q2 Holdings, which is a leading provider of digital transformation solutions for banking and lending. This integration means that Repay will be able to offer its payment technology within Q2's digital banking solution, as well as leverage Q2's integrations with various core systems, further expanding our reach within the personal loan and credit union verticals. Credit unions have been able to differentiate by maintaining lower rates, getting share in this new operating environment.

So they have continued to be a focus of ours from a business development standpoint. We also experienced another record quarter with our instant funding product.