As travel has resumed, the number of tolls, tickets and parking meters to be paid has also increased.
Mobility will see reported that his total revenue for the first quarter was up 90% year over year. Revenue from the company’s organic services increased 45%, primarily due to improved travel demand. Two recently acquired companies also contributed to the expansion.
“All areas of our business are benefiting from strong macroeconomic trends, including a significant increase in travel which is driving the performance of our commercial services,” said Verra Mobility’s CEO. David Robert said in a statement.
Cashless tolls, toll rates increase
The Commercial Services operating segment offers automated toll and violation management solutions, as well as title and registration solutions to car rental companies and other large fleet owners.
Revenue in this segment increased 61% year over year. Compared to the pre-pandemic first quarter of 2019, revenue increased by 17%.
Company executives reported that the growth was aided by an improvement in travel demand which led to an increase in demand for rental cars, with car rental companies seeing a significant increase in demand by compared to the previous quarter and to the previous year.
“While rental car volumes remain below pre-pandemic levels, the percentage of cashless tolls, toll rates, billable days and customer adoption trends are all increasing,” the manager said. finance from Verra Mobility. Craig Conti said on the company’s quarterly earnings call.
More photo app is rolled out
Efforts to expand the Photos app in New York contributed to 28% year-over-year revenue growth in another of Verra Mobility’s operating segments, Government Solutions, which offers technology that enables the application of photos related to speeding, red lights, school buses and city bus lanes management.
“Generally, the photo app market appears to be growing at a faster rate, likely after many municipalities slowed procurement activities during COVID,” Roberts said on the call.
Another segment, Parking Solutions, provides software and hardware for parking management. This segment is new to Verra Mobility and was formed by its acquisition of T2 Systems in December. In this segment, the company said it expects low double-digit revenue growth.
“I am very pleased with our financial results across all of our segments, and we are seeing solid increases in bookings and our sales pipelines, both of which are leading indicators of future growth,” Roberts said in the press release. .
Cities and fleets are looking for smart mobility
Looking ahead, the company sees strong secular growth drivers, including a shift to cashless tolling, strong demand for the application of photos to improve safety and growing opportunities in curbside parking management, said she said in a statement. presentation published in conjunction with the call for results. As a result, he expects continued revenue growth in all three segments.
Following two recent acquisitions, Verra Mobility is also always considering more.
“We continue to look across the smart mobility ecosystem,” Roberts said on the call. “I think one is anything we can continue to look at that would strengthen our commercial fleet business in terms of other, more connected vehicle games that are relevant to fleets not just today but in the future. And then keep looking for the next set of technologies that will help cities keep their communities safe. »