Verra Mobility (VRRM) The 44th Annual William Blair Growth Stock Conference summary

Business overview and financial profile

• Operates globally in smart mobility, serving commercial fleets, governments, and universities in 17 countries with 1,700 employees and over 2,300 customers.

• Reported $835 million TTM revenue, $376 million adjusted EBITDA, 45% EBITDA margin, and 96% recurring revenue, with 91% of sales in North America.

• Commercial services (toll management) and government solutions (automated enforcement) are core segments, each contributing ~45% of revenue, with parking solutions at ~10%.

• Holds leading market positions: #1 in North American toll management and automated enforcement, with 70% market share in the latter.

• Capital deployment includes $1.9B since 2018: 60% to M&A, 17% to buybacks, 12% to CapEx, and $325M returned to shareholders in the past three years.

Legislative and market trends

• Significant legislative momentum in the past three years has enabled automated enforcement in more states than the previous seven years combined.

• Focus on purpose-built enforcement (school zones, buses, work zones) has driven positive sentiment and legislative support.

• New state openings, including California and Florida, have expanded TAM by $125 million, with potential to reach $250 million if California scales statewide.

• RFP activity lags legislation by 6–12 months, with revenue inflection expected late 2024, accelerating into 2025–2026.

• $7 million ARR booked from new legislation, with long-term tailwinds anticipated.

Competitive positioning and investments

• Maintains high market share through ongoing investments in sales, account management, and technology platforms.

• Integration of acquisitions (e.g., Redflex, T2) under a unified operating system drives above-market growth and margin expansion.

• Scale, experience with large cities, and a strong balance sheet provide competitive advantages in new and existing markets.

• Investments in service centers and on-the-ground teams support 7,000–8,000 cameras, ensuring operational reliability.

• Strategic M&A has expanded scale and market reach, including key transactions in 2021.