i3 Verticals, Inc. (NASDAQ:IIIV) Q4 2023 Earnings Call Transcript

Michael Infante: Hi, everyone. It’s Michael Infante on for James. Thanks for taking our question. Just wanted to ask a quick question on take rates, obviously strong for the overall combined business, but can you just unpack some of the drivers within both merchant services and software and payments. It looks like there were some different sequential take rate trends in each that maybe were a little bit more outsized than prior year seasonality. So I just wanted to make sure I understood some of the drivers there. Thanks.

Greg Daily: Well, in software and services. Well let me start with merchant services, we ticked up about four basis points in yield and we had some, we always try to sort of keep these, but even with Visa, Mastercard and they had a price increase in April some of ours didn’t filter through until August. And so we had a four basis point increase there. In software and services the take rate paying down a little bit and we’ve added some payment streams in the utilities business recently and that has very healthy margins, but I mean very healthy volumes, but it’s a lower discount than you’d see in traffic tickets for example. But overall, it improved as software and services grow, it’s just so much higher in software and services, the mix improves pretty easily overtime.

Michael Infante: Yeah, that makes sense. I appreciate it.

Operator: And ladies and gentlemen with that we’ll be concluding today’s question-and-answer session. I’d like to turn the floor back over to Greg for any closing remarks.

Greg Daily: Thank you. To our team, to our investors thank you for your support and I hope everyone has a nice holiday. Thank you.

Operator: Ladies and gentlemen with that, we’ll conclude today’s conference call and presentation. We do thank you for joining. You may now disconnect your lines.