Hardware

Everi Holdings lifts Q2 2023 revenue, suffers income dip

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August 9, 2023

Everi Holdings Inc., a game machine manufacturer, lifted Q2 2023 revenue but suffered an income drop against the prior year period, according to an earnings release.

Highlights include:

• Revenue increased 6% from $197.2 million in Q2 2022 to $208.7 million in the quarter ending June 30, 2023.
• Net income fell from $32.5 million to $27.4 million in comparative quarters.
• Basic EPS fell from 35 cents to 31 cents while diluted EPS fell from 33 cents to 29 cents.
• Adjusted EPS fell from 48 cents to 41 cents.
• Organic revenue rose 3% over the prior year, while revenue from acquisitions completed since July 1, 2022 contributed $5.3 million in the quarter.
• Recurring revenue increased 9% from $139.7 million to $151.6 million driven by growth in both the games and fintech segments.
• Games segment revenue increased 1% from $112.3 million to $113.1 million, reflecting a 5% increase in gaming operations revenue, inclusive of digital gaming operations, partially offset by an 8% decrease in revenue from gaming equipment and systems sales. The recent acquisition of Video King contributed $4.1 million in revenue.
• Fintech revenue increased 13% from $84.9 million to $95.6 million, reflecting a 26% gain in software and other revenues, 9% growth in financial access services and a 6% increase in hardware sales.

Shares traded today at $12.96 against a 52-week range of $12.65 to $21.11.

The $208.7 million in quarterly revenue missed analyst expectations by $600,000 and the non-GAAP EPS of 41 cents beat expectations by 13 cents, according to Seeking Alpha.

"Revenues for both our fintech and games segment grew as we continue to benefit from our investments in new product development as well as from several tuck-in acquisitions we completed since the beginning of 2022," CEO Randy Taylor said in the press release.

The company revised its net income guidance upward as a result of lower expected depreciation and amortization and income tax expense and is now expected to be in a range of $98 million to $106 million compared to the prior range of $92 million to $100 million.

Annual earnings per diluted share is now expected in the range of $1.05 to $1.13 compared to the prior expectation of 97 cents to $1.06 and adjusted EPS is now expected to be in a range of $1.62 to $1.67 compared to the prior expectation of between $1.58 to $1.66.