Verra Mobility : Q3 2020 Earnings Presentation

Earnings Overview

Verra Mobility Q3 Earnings Presentation

For the Quarter Ended September 30, 2020

Forward-looking statements

This presentation includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "forecast," "intend," "seek," "target," "anticipate," "believe," "expect," "estimate," "plan," "outlook," and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include projected financial information.

Such forward-looking statements with respect to revenues, earnings, performance, strategies, prospects and other aspects of the business of Verra Mobility Corporation and its subsidiaries (collectively, "Verra Mobility") are based on current expectations that are subject to risks and uncertainties.

A number of factors could cause actual results or outcomes to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to: (1) the disruption to our business and results of operations as a result of the COVID-19 pandemic; (2) the impact of the COVID-19 pandemic on our revenues from key customers in the rental car industry and from photo enforcement programs; (3) customer concentration in our Commercial Services and Government Solutions segments; (4) decreases in the prevalence of automated photo enforcement or the use of tolling; (5) risks and uncertainties related to our government contracts, including but not limited to administrative hurdles, legislative changes, termination rights, audits and investigations; (6) decreased interest in outsourcing from our customers; (7) our ability to properly perform under our contracts and otherwise satisfy our customers; (8) our ability to compete in a highly competitive and rapidly evolving market; (9) our ability to keep up with technological developments and changing customer preferences; (10) the success of our new products and changes to existing products and services; (11) our ability to successfully integrate our recent or future acquisitions; (12) failures in or breaches of our networks or systems, including as a result of cyber-attacks; and (13) other risks and uncertainties indicated from time to time in documents filed or to be filed with the Securities and Exchange Commission (the "SEC") by Verra Mobility.

You are cautioned not to place undue reliance upon any forward-looking statements, including the projections, which speak only as of the date made. Verra Mobility does not undertake any commitment to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Information

This presentation uses certain non-GAAP financial information, including earnings before interest, taxes, depreciation and amortization ("EBITDA") and adjusted EBITDA, which further excludes certain non-cash expenses, loss on extinguishment of debt and other transactions management believes are not indicative of Verra Mobility's business.

Verra Mobility believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Verra Mobility's financial condition and results of operations. These financial measures are not recognized measures under GAAP and they are not intended to be and should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. EBITDA, adjusted EBITDA and adjusted EBITDA margin are non-GAAP financial measures as defined by SEC rules. This non-GAAP financial information may be determined or calculated differently by other companies. A reconciliation of Verra Mobility's non-GAAP financial information to GAAP financial information is provided in the Appendix hereto and in Verra Mobility's Form 8-K, filed with the SEC, with the earnings press release for the period indicated.

1

Q3 Results by Segment - Commercial Services

For the Quarter Ended September 30, 2020

Commercial Services

Revenue & YoY Growth

$ in Millions

$100

(2%) (60%) (43%)

$80

$60

$40

$20

$0

Q1 Q2 Q3 Q4

2019 2020

2020 Trended Service Revenue & YoY Growth

	Adj. EBITDA & Margin %				Commercial Services Commentary
$ in Millions							• Revenue of $44.2M in Q3 decreased 43.1%
$60				70%				from the same quarter in the prior year
55%	27%
$50					• Adjusted EBITDA of $31.0M in the quarter
$40									decreased $20.0M or 39.3% from the same
								period of the prior year
$30								• The CS segment is closely tied to the rental
$20
								car industry and saw impacts in Q3 due to
$10									reduced demand resulting from Covid-19
$0								• Operating expenses of $11.8M in Q3 2020
	Q1		Q2		Q3	Q4			decreased by $6.0M or 33.6% from the
					same period in the prior year, reflecting the
			2019		2020
							cost out measures taken in response to the
									Covid-19 impact on revenue
								• SG&A of $5.9M for Q3 2020 decreased by
									$4.5M over the same period in the prior

$ in Millions

5% 2% (12%)

(50%)

(64%) (66%)

(31%)

(48%) (49%)

year.

• We are pleased with our revenue recovery

and our EBITDA margins which are best in

class during the worst times

JAN FEB MAR APR MAY JUN JUL AUG SEP

2

Q3 Results by Segment - Government Solutions

For the Quarter Ended September 30, 2020

Government Solutions
	Revenue & YoY Growth					Adj. EBITDA & Margin %						Government Solutions Commentary
$ in Millions								$ in Millions									• Revenue of $52.8M in Q3 increased 4.2%
	55%	27%	4%					38%	39%	43%
$60				$25						from the same quarter in the prior year
$50								$20										•	Service Revenue improved by $5.7M. During
$40									$15											the same period product revenue reduced
$30																		$3.6M.
								$10
$20																	•	Adjusted EBITDA of $22.5M in the quarter
$10									$5											improved $2.7M or 13.8% from the same
																	period of the prior year. The increase was the
$0								$0											result of improved service revenue in the
	Q1		Q2		Q3	Q4				Q1		Q2	Q3	Q4		quarter and management of cost
			2019		2020							2019		2020

2020 Trended Service Revenue & YoY Growth

$ in Millions

6% 9% 8% (1%) (2%) 8% 15% 20% 17%

JAN FEB MAR APR MAY JUN JUL AUG SEP

3