Everi Holdings reported record revenue for Q2 2022, with double digit growth in both games and fintech businesses, surpassing analyst expectations, according to an earnings report. Highlights include:

  • Revenue rose 14% from $172.6 million in Q2 2021 to $197.22 million for the quarter ending June 30, 2022. Recurring revenues grew 7% to $139.7 million and revenues from non-recurring sales increased 37% to $57.5 million.
  • Net income fell from $36.21 million to $35.52 million, as the provision for income taxes increased $9.3 million in the 2022 second quarter related to the reversal of deferred tax asset valuation allowance in the 2021 fourth quarter; cash taxes paid were essentially flat at $100,000.
  • Basic EPS fell from 41 cents to 35 cents, while diluted EPS fell from 36 cents to 33 cents.
  • Games segment revenue grew 13% to a record $112.3 million compared to $99.3 million in the second quarter of 2021, primarily driven by record sales of gaming machines and ongoing growth in digital gaming revenues.
  • Fintech revenue increased 16% to an all-time quarterly record $84.9 million compared to $73.2 million in the 2021 second quarter, reflecting a 14% increase in financial access services, a 22% increase in software and other revenues, and a 17% improvement in revenues from hardware sales. Revenues from the recent acquisition of ecash Holdings in Australia contributed $4.2 million in the 2022 second quarter.

Shares traded at $19.78 Wednesday against a 52-week range of $15.05-$26.61.

The $197.22 million in quarterly revenue beat analyst expectations by $16.28 million and the GAAP EPS of 33 cents was in line with expectations, according to Seeking Alpha.

"Our strong operating momentum continued in the second quarter, as we delivered all-time quarterly record revenues, income before income tax, adjusted EBITDA and free cash flow," CEO Rod Taylor said in the press release. "These record financial results were driven by another consecutive quarter of record recurring revenues for both our games and fintech businesses despite the very challenging year-over-year comparison for these operations, as last year's results included the significant benefit from casino reopening activities and financial stimulus payments provided to consumers."

Everi reiterated its full year 2022 guidance for net income of $125 million to $132 million, adjusted EBITDA of $368 million to $378 million and free cash flow of $187 million to $200 million.

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