i3 Verticals Inc (NASDAQ:IIIV) stock fell 2.25% (As on November 19, 11:23:20 AM UTC-4, Source: Google Finance) after the company reported fourth quarter net income from continuing operations was $7.0 million, compared to a net loss from continuing operations of $1.2 million in the prior year’s fourth quarter. Fourth quarter net income from continuing operations attributable to i3 Verticals, Inc. was $11.2 million, compared to net income from continuing operations attributable to i3 Verticals, Inc. of $1.3 million in the prior year’s quarter. Fourth quarter adjusted EBITDA from continuing operations was $16.2 million, an increase of 3.5% over the prior year’s fourth quarter. Adjusted EBITDA from continuing operations as a percentage of revenue was 26.7% for the three months ended September 30, 2024, compared to 26.8% for the three months ended September 30, 2023, respectively. Annualized Recurring Revenue (“ARR”) from continuing operations for the fourth quarter of 2024 and 2023 was $188.2 million and $175.1 million, respectively, representing a period-to-period growth rate of 7.5%. Net loss from continuing operations for the year ended September 30, 2024, was $13.3 million, compared to a net loss from continuing operations of $23.7 million for the year ended September 30, 2023. Cash interest expense for the three months and year ended September 30, 2024, was $6.7 million and $28.1 million, respectively. As a result of the sale of the Company’s merchant services business, which was completed on September 20, 2024, the historical results of i3 Verticals’ merchant services business have been reflected in discontinued operations in the consolidated statement of operations.

IIIV in the fourth quarter of FY 24 has reported the adjusted earnings per share of 23 cents, compared to a diluted net loss per share of $0.02 in the prior year’s fourth quarter. The company had reported the adjusted revenue growth of 3.9 percent to $60.9 million in the fourth quarter of FY 24, missing the analysts’ estimates for revenue of $61.25 million. The company is now a streamlined and scaled vertical market software provider. The company have also de-levered and are ready to capitalize on multiple growth opportunities in 2025.

I3 Verticals expects full-year earnings in the range of $1.05 to $1.25 per share, with revenue in the range of $243 million to $263 million. The company remain focused on growing recurring revenue, which improved by 7.5% this quarter. Looking ahead the company expects to achieve high-single digits organic revenue growth in fiscal 2025 and increase our margins by more than 100 bps.