Repay Holdings Corporation (NASDAQ:RPAY) Q4 2022 Earnings Call Transcript

But we’re very selective. And as we partner with the specific processing partners, it’s — mostly it’s going to be someone of meaningful size. That’s very strategic for us that we have long relationships or existing relationships out in the marketplace that we’re aware of. That is incremental to us. We are just a processing partner for them. And I’ll let Tim kind of talk about the dynamics around that part of it. But very strategic for us. As you’re aware Shaler, one of the co-Founders has led that effort for us. And we will be strategic about it, but also a reminder that Repay is its largest client and we’ll always — we and ourselves will continue to expand and grow with that as well.

Tim Murphy: Yes. Thanks John. So, we have about 30 customers in that part of the business, Andrew like what we would refer to as ISOs and they are typically medium to enterprise, some of them can be quite large and some of them are recent wins have been from the larger kind of legacy processors where these customers are coming to us saying they want a more customized solution. They want to get things done more quickly. They want sponsor bank support all of which we bring to them. And we’re winning business there because of that. And like John said we’ve now modernized the back-end solution itself. And so — those are the type of customers we’re winning. We have about 30 today. We’re adding by several each quarter and that business in the last year actually grew very nicely prior in the mid-teens.

Andrew Jeffrey: Okay, helpful. Thank you. And then if I might on the sales and customer support growth. I think — Tim, I think you called out the addition of or maybe John as you — I don’t remember, sorry, about 30% growth in the sales and support team. I wonder does that — I guess how much of that is sales? And does it kind of skew Repay more toward direct sales than you’ve been in the past? I’m just thinking about go-to-market motion and whether — and sales force productivity and whether the way you’re going to market is changing and how that might influence profitability or LTV to CAC or economic metrics like that?

John Morris: Yes. So, we’ve always been direct. And obviously we partner with our software integrated software partners. But we are continuing to just grow and scale that which we think is a great investment for our direct organic growth. So, it’s a similar pattern that we’ve always had. We continue to just invest in that which that should then obviously continue to deliver us long-term organic growth.

Tim Murphy: And also I’d say, to your question about the 30%, most of that 30% are direct sales roles. And a lot of them now on the consumer side specifically are focused on enterprise accounts. We just want an enterprise account that we’re rolling out that’s pretty meaningful to us. And so a lot of those resources are focused on enterprise and then, we’re adding a lot vertical specific on the B2B side, as Darin mentioned. So a good amount of that 30% is direct sales and the rest would be more support roles.

Andrew Jeffrey: Okay. Thank you.

Operator: Thank you. Our next question is from the line of James Faucette with Morgan Stanley. Please go ahead.

Jeff Goldstein: Hey guys. This is Jeff Goldstein on for James. Thanks for taking my questions. Can you expand a little bit on recent trends you’re seeing in your ARM business? Just curious if you’re starting to benefit from increasing consumer debt there or if that’s yet to come and how we should think about growth in 2023 for that business?