Verra Mobility Corporation (NASDAQ:VRRM) Q4 2022 Earnings Call Transcript

Faiza Alwy : Great. That’s all that — really appreciate all the color. Just my last question is, I think you mentioned as part of the Commercial Services growth drivers, you mentioned improving TSA volumes. So just wanted to just clarify that. Are you expecting growth? I mean, the way I’ve been looking at it is really TSA volumes as a percentage of 2019. Are you expecting that volume sort of get back to those pre-COVID levels in 2023?

Craig Conti : The short answer to your question is, yes, that’s what we’re expecting. I think the way I have the plan done right now, I think the second half of the year looks like 2019, the first half kind of ramps to get there. But in all fairness, I have to compare that to where we are in a February year-to-date basis, we’re at 102% through February. Now this is not an exercise in false precision here. I do think over — I would look at 2023 as a percentage of 2019. And in general, we expect to get back to 2019 levels, and that’s where we have the business plan today.

Operator: Your next question comes from Louie Dipalma from William Blair.

Louie Dipalma : David, Craig and Mark, good afternoon. What is the expectation for the non-tolling services for your commercial division in terms of growth? And by non-tolling, I’m referring to like the violation, management and title and registration. Is there expected to be growth in those services as well coming off what appeared to be a pretty solid 2022?

Craig Conti : In totality, the answer is yes. We don’t spike those out specifically in terms of growth rates. But I can tell you that if you look at the consolidated growth of the business, the RAC tolling piece is going to grow faster than the combination of the ones that you just mentioned. But yes, there will be growth year-over-year.

Louie Dipalma : Great. And for David or Craig. In January, you announced your zero-in initiative. I know it’s early, but what has been the initial feedback? Do you expect other municipalities to follow the lead of New York City and Oslo?

David Roberts : Yes. I mean I think that’s already been happening. Other cities have adopted that globally. I think what we were just trying to do is to make sure we wanted to draw attention that it’s still relevant, it’s still important and that we don’t want to anyone to not stay focused on that, given the increase in traffic fatalities over the last year or so. So we wouldn’t — we believe a key driver of government solutions over the long term is an increased attention to traffic safety and congestion.

Louie Dipalma : Great. Another one on the Government Services division. David, you indicated that you’re investing in software. What does that new software enable strategically for you?

David Roberts : Yes. I mean, I guess what I would just say is the software that we have has been — it’s the original software that the business was founded on. So we’re just modernizing both the architecture as well as building in new capabilities and functionality to streamline the way that it’s both built, coded and service. So just think of it as a bit of an update. Now with that, we’ll obviously — that will be our in the cloud web-based platform that we’ll be using for the future that will also host a new functionality as we provided in the years to come.

Louie Dipalma : Great. And are there any, I guess, new features that you’re able to implement with your existing cameras with the software such that — I remember a few years ago for your red light cameras, you indicated that in certain situations, law enforcement would have the ability to tap into your feeds for your red light cameras or for your feed cameras. And right now, there seems to be a major focus on school safety, and you have a big network of cameras around schools. And so I’m wondering if there’s any type of school public safety services that you could cross-sell or add on top of your existing services with your network of cameras.