Verra Mobility Corporation (VRRM) Bundle
A Brief History of Verra Mobility Corporation
Verra Mobility Corporation, a leader in smart transportation solutions, has undergone significant transformations since its inception. As of 2024, the company continues to thrive in the mobility sector, focusing on technology-driven services that enhance transportation efficiency.
Company Overview
Founded in 2018, Verra Mobility has rapidly expanded its portfolio through strategic acquisitions and organic growth. The company operates in three main segments: Commercial Services, Government Solutions, and Parking Solutions. As of September 30, 2024, Verra Mobility reported total revenue of $657.7 million for the nine months ended, reflecting an increase of $51.4 million, or 8.5%, compared to the same period in 2023.
Financial Performance
In the third quarter of 2024, Verra Mobility achieved a net income of $34.7 million, up from $30.3 million in the same quarter of 2023, representing a year-over-year increase of 14.6%. For the nine months ended September 30, 2024, the net income reached $98.1 million, compared to $54.0 million in 2023, marking an impressive 81.7% growth.
| Financial Metrics | 2024 Q3 | 2023 Q3 | 2024 Nine Months | 2023 Nine Months |
|---|---|---|---|---|
| Net Income ($ million) | 34.7 | 30.3 | 98.1 | 54.0 |
| Total Revenue ($ million) | 225.6 | 209.9 | 657.7 | 606.3 |
| Operating Expenses ($ million) | 76.0 | 68.9 | 221.6 | 196.4 |
| Service Revenue ($ million) | 217.3 | 201.0 | 632.0 | 581.8 |
Growth Strategies
Verra Mobility's growth strategies include enhancing its service offerings through technology integration and expanding its market presence via strategic acquisitions. In 2024, the company refinanced its 2021 Term Loan, reducing the interest rate by 50 basis points, which is expected to lower interest expenses significantly.
Market Position
The company maintains a strong position in the mobility sector, driven by its recurring revenue model. As of September 30, 2024, Verra Mobility had cash on hand amounting to $206.1 million and $74.6 million available for borrowing under its revolving credit facility. This financial stability supports ongoing investments in technology and infrastructure to meet growing demand in the transportation sector.
Recent Developments
In October 2023, Verra Mobility's Board of Directors authorized a new share repurchase program, allowing up to $100 million in share buybacks, with $48.5 million remaining as of September 30, 2024. This move reflects the company's commitment to enhancing shareholder value while continuing to invest in growth initiatives.
Conclusion
As of 2024, Verra Mobility Corporation stands as a key player in the smart transportation industry, with a solid financial foundation and a clear strategy for future growth. The company's focus on technology and strategic partnerships positions it well for continued success in an evolving market.
A Who Owns Verra Mobility Corporation (VRRM)
Major Shareholders
As of 2024, the ownership structure of Verra Mobility Corporation is characterized by a mix of institutional investors, private equity firms, and individual shareholders. The following table outlines the major shareholders of the company:
| Shareholder | Ownership Percentage | Type of Investor |
|---|---|---|
| PE Greenlight Holdings, LLC | 40.5% | Private Equity |
| BlackRock, Inc. | 8.7% | Institutional Investor |
| The Vanguard Group, Inc. | 7.3% | Institutional Investor |
| State Street Corporation | 4.9% | Institutional Investor |
| Other Institutional Investors | 15.6% | Various |
| Individual Shareholders | 22.0% | Retail Investors |
Stock Performance
As of September 30, 2024, Verra Mobility Corporation's stock performance has shown resilience, with a share price of $25.00, reflecting a year-to-date increase of approximately 18%. The company's market capitalization stood at $4.1 billion, driven by strong operational performance.
Recent Share Repurchases
In 2024, Verra Mobility has been active in repurchasing its shares as part of a broader strategy to enhance shareholder value. The company repurchased approximately 2.0 million shares for a total cost of $51.5 million, which were subsequently retired. This move was part of a $100 million share repurchase program authorized by the Board of Directors in October 2023.
Financial Overview
For the nine months ended September 30, 2024, Verra Mobility reported total revenue of $657.7 million, which represents an 8.5% increase from $606.3 million in the same period of 2023. The net income for the same period was $98.1 million, a significant increase from $54.0 million year-over-year.
Institutional Ownership Trends
The proportion of institutional ownership in Verra Mobility has been steadily increasing, reflecting growing confidence among institutional investors. As of September 30, 2024, institutional investors collectively held approximately 75% of the company's outstanding shares, compared to 70% at the end of 2023.
Conclusion on Ownership Dynamics
The ownership dynamics of Verra Mobility Corporation indicate a strong backing from institutional investors, particularly private equity firms. This diverse ownership base is expected to contribute positively to the company's long-term strategic initiatives and operational growth.
Verra Mobility Corporation (VRRM) Mission Statement
Company Overview
Verra Mobility Corporation specializes in providing smart transportation solutions, focusing on enhancing mobility through innovative technology and services.
Mission Statement
Verra Mobility's mission is to "provide comprehensive solutions that improve mobility, enhance safety, and reduce costs for our customers." This mission underlines their commitment to leveraging technology to create efficient transportation systems.
Financial Performance
As of September 30, 2024, Verra Mobility reported a net income of $98.1 million, a significant increase from $54.0 million in the same period of 2023. The company's total revenue for the nine months ended September 30, 2024, reached $657.7 million, up from $606.3 million in 2023, marking an increase of 8.5%.
Service Revenue Breakdown
The following table summarizes the service revenue by segment for the nine months ended September 30, 2024:
| Segment | 2024 Revenue ($ in thousands) | 2023 Revenue ($ in thousands) | Percentage of Total Revenue 2024 | Percentage of Total Revenue 2023 | Increase ($ in thousands) | Increase (%) |
|---|---|---|---|---|---|---|
| Commercial Services | $309,013 | $278,243 | 47.0% | 45.9% | $30,770 | 11.1% |
| Government Solutions | $272,747 | $253,319 | 41.5% | 41.8% | $19,428 | 7.7% |
| Parking Solutions | $50,245 | $50,215 | 7.6% | 8.3% | $30 | 0.1% |
| Total Service Revenue | $632,005 | $581,777 | 96.1% | 96.0% | $50,228 | 8.6% |
Operational Highlights
For the three months ended September 30, 2024, Verra Mobility's service revenue increased by $16.2 million, or 8.1%, to $217.3 million from $201.0 million in 2023. The breakdown of this revenue is as follows:
| Segment | 2024 Revenue ($ in thousands) | 2023 Revenue ($ in thousands) | Percentage of Total Revenue 2024 | Percentage of Total Revenue 2023 | Increase ($ in thousands) | Increase (%) |
|---|---|---|---|---|---|---|
| Commercial Services | $109,139 | $98,149 | 48.4% | 46.8% | $10,990 | 11.2% |
| Government Solutions | $91,003 | $85,092 | 40.3% | 40.5% | $5,911 | 6.9% |
| Parking Solutions | $17,125 | $17,788 | 7.6% | 8.5% | ($663) | (3.7%) |
| Total Service Revenue | $217,267 | $201,029 | 96.3% | 95.8% | $16,238 | 8.1% |
Cash Flow and Liquidity
Verra Mobility generated cash flows from operating activities of $183.2 million for the nine months ended September 30, 2024, compared to $170.4 million in 2023. As of September 30, 2024, the company had $206.1 million in cash on hand and $74.6 million available for borrowing under their Revolver.
Debt Management
As of September 30, 2024, Verra Mobility's long-term debt totaled $1.037 billion, with the 2021 Term Loan accounting for $700.1 million. The company has made efforts to manage this debt effectively, including early repayments of approximately $4.5 million during the nine months ended September 30, 2024.
How Verra Mobility Corporation (VRRM) Works
Business Overview
Verra Mobility Corporation operates in the transportation and mobility sector, primarily focusing on providing technology-enabled solutions. The company’s services are divided into three main segments: Commercial Services, Government Solutions, and Parking Solutions. As of the third quarter of 2024, Verra Mobility continues to leverage its expertise in tolling, vehicle registration, and parking management to enhance operational efficiencies and customer satisfaction.
Financial Performance
For the nine months ended September 30, 2024, Verra Mobility reported total revenue of $657.7 million, representing an increase of 8.5% compared to $606.3 million in the same period of 2023. This growth was primarily driven by a rise in service revenue across its segments.
| Segment | 2024 Revenue ($ in thousands) | 2023 Revenue ($ in thousands) | Increase ($ in thousands) | Percentage Increase (%) |
|---|---|---|---|---|
| Commercial Services | $309,013 | $278,243 | $30,770 | 11.1% |
| Government Solutions | $272,747 | $253,319 | $19,428 | 7.7% |
| Parking Solutions | $50,245 | $50,215 | $30 | 0.1% |
| Total Service Revenue | $632,005 | $581,777 | $50,228 | 8.6% |
Service Revenue Breakdown
Service revenue for the three months ended September 30, 2024, reached $217.3 million, an increase of 8.1% from $201.0 million in the same quarter of 2023.
| Segment | 2024 Revenue ($ in thousands) | 2023 Revenue ($ in thousands) | Increase ($ in thousands) | Percentage Increase (%) |
|---|---|---|---|---|
| Commercial Services | $109,139 | $98,149 | $10,990 | 11.2% |
| Government Solutions | $91,003 | $85,092 | $5,911 | 6.9% |
| Parking Solutions | $17,125 | $17,788 | ($663) | (3.7%) |
| Total Service Revenue | $217,267 | $201,029 | $16,238 | 8.1% |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $221.6 million, an increase of 12.8% from $196.4 million in the same period of 2023. This increase was driven by higher wages, information technology costs, and recurring service costs.
| Expense Category | 2024 Amount ($ in thousands) | 2023 Amount ($ in thousands) | Increase ($ in thousands) | Percentage Increase (%) |
|---|---|---|---|---|
| Cost of Service Revenue | $14,324 | $13,718 | $606 | 4.4% |
| Cost of Product Sales | $18,755 | $18,209 | $546 | 3.0% |
| Operating Expenses | $221,569 | $196,373 | $25,196 | 12.8% |
Net Income
Verra Mobility reported a net income of $98.1 million for the nine months ended September 30, 2024, compared to $54.0 million for the same period in 2023, reflecting a significant increase of 81.7%.
Cash Flow and Liquidity
The company generated cash flows from operating activities of $183.2 million for the nine months ended September 30, 2024, compared to $170.4 million for the same period in 2023. As of September 30, 2024, Verra Mobility reported cash on hand of $206.1 million.
Debt Management
Verra Mobility has been actively managing its debt, refinancing its obligations to reduce interest rates. The company has made early repayments of approximately $4.5 million on its 2021 Term Loan during the nine months ended September 30, 2024.
Recent Developments
In October 2023, Verra Mobility's Board authorized a new share repurchase program for up to $100 million of its Class A Common Stock. As of September 30, 2024, approximately $48.5 million remains under this program following the repurchase of 2 million shares for an aggregate purchase price of $51.5 million.
How Verra Mobility Corporation (VRRM) Makes Money
Revenue Streams
Verra Mobility Corporation generates revenue through three primary segments: Commercial Services, Government Solutions, and Parking Solutions. As of September 30, 2024, the breakdown of service revenue by segment is as follows:
| Segment | 2024 Revenue ($ in thousands) | 2023 Revenue ($ in thousands) | Percentage of Total Revenue 2024 (%) | Percentage of Total Revenue 2023 (%) | Increase (Decrease) ($ in thousands) | Increase (Decrease) (%) |
|---|---|---|---|---|---|---|
| Commercial Services | 309,013 | 278,243 | 47.0 | 45.9 | 30,770 | 11.1 |
| Government Solutions | 272,747 | 253,319 | 41.5 | 41.8 | 19,428 | 7.7 |
| Parking Solutions | 50,245 | 50,215 | 7.6 | 8.3 | 30 | 0.1 |
| Total Service Revenue | 632,005 | 581,777 | 96.1 | 96.0 | 50,228 | 8.6 |
Commercial Services
Commercial Services revenue increased by $30.8 million, or 11.1%, primarily driven by higher travel volumes, increased product adoption, and elevated tolling activity. Specifically, RAC tolling revenue growth contributed $16.3 million, while an increase in enrolled vehicles and higher tolling activity for fleet management customers added $7.6 million.
Government Solutions
Government Solutions service revenue grew by $19.4 million, or 7.7%, due to expanding speed, red light, and maintenance programs, which alone accounted for approximately $13.1 million of the increase. This segment also benefitted from improvements in school bus stop arm and bus lane programs.
Parking Solutions
Parking Solutions revenue remained relatively stable at $50.2 million, the same as the prior year. This stability resulted from increased revenue from SaaS product offerings being offset by a decline in professional services associated with parking management.
Product Sales
For the nine months ended September 30, 2024, product sales reached $25.7 million, up from $24.5 million in the same period in 2023, marking an increase of $1.2 million. This was primarily driven by a $3.9 million rise in product sales to Government Solutions customers.
Cost Structure
The cost structure related to service revenue and product sales is critical to understanding profitability. The costs are outlined as follows:
| Cost Type | 2024 ($ in thousands) | 2023 ($ in thousands) | Increase (Decrease) ($ in thousands) | Increase (Decrease) (%) |
|---|---|---|---|---|
| Cost of Service Revenue (excluding depreciation and amortization) | 14,324 | 13,718 | 606 | 4.4 |
| Cost of Product Sales | 18,755 | 18,209 | 546 | 3.0 |
| Total Costs and Expenses | 478,295 | 440,812 | 37,483 | 8.5 |
Operating Expenses
Operating expenses increased by $25.2 million, or 12.8%, from $196.4 million in the nine months ended September 30, 2023, to $221.6 million for the same period in 2024. This increase is primarily due to higher wages and information technology costs.
Net Income
Net income for the nine months ended September 30, 2024, was $98.1 million, a significant increase from $54.0 million in 2023. This increase of $44.1 million was attributed to a decrease in interest expense and favorable changes in operational activities.
Cash Flow and Liquidity
As of September 30, 2024, Verra Mobility reported cash on hand of $206.1 million and generated cash flows from operating activities of $183.2 million.
Debt Management
The company has focused on debt management, refinancing to reduce its interest rate by 50 basis points and making early repayments of approximately $4.5 million on its 2021 Term Loan.
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Article updated on 8 Nov 2024
Resources:
- Verra Mobility Corporation (VRRM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Verra Mobility Corporation (VRRM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Verra Mobility Corporation (VRRM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.