Usio, Inc. (USIO) Earnings Call Transcript & Summary

Good afternoon, everybody. My name is Paul Manley. I'm Senior Vice President of Investor Relations at Usio here. First of all, thank you to Kimberly for putting together that awesome short video. Thank you for attending and helping us celebrate Usio's 25th anniversary today. We're very excited to have you here today during Thanksgiving week, and we want to thank you for listening to our corporate update and management presentation. Today, you will hear from our CEO, Chairman of the Board and Co-Founder, Louis Hoch; our CFO, Mr. Tom Jewell; our Executive Vice President of Payment Acceptance, Greg Carter; our Senior Vice President, Card Issuing, Houston Frost; and our Senior Vice President of Output Solutions, Sy Green. At the conclusion of these presentations, we'll have a short question-and-answer session or as long as we need. And again, I want to thank you for attending. And now I will turn it over to Mr. Louis Hoch.

Thanks, Paul. Unlike Paul, I don't have prepared remarks, so we'll get right to it. The complete executive team at Usio is here today. You're going to be able to hear from all of them, and you'll get to meet them, but I'd like to recognize Michelle Miller, who is our Board -- one of our Board members also here today and other executives from Usio, Wayne Gonzales, Joseph Saahene, Michael White, Kyle Ruschman and Joe Huch. And if I missed anybody else, then you probably don't work here anymore. Okay, so as Paul mentioned, we're here today at the beautiful NASDAQ site to celebrate our 25th anniversary. We actually have two anniversaries this year. July of this year was when we were founded. And I mean, July 25 years ago was when we were founded. November is when we first became public, and it actually happened during Thanksgiving week. So we're actually on the 25th week -- 25th year in the same week. So Usio is a leading fintech payment processor. We have advanced technology that operates in the cloud. And is very highly scalable. We handle all types to payments. One of the strengths of Usio is that we believe in diversity -- diversity in the industries that we serve and diversity in the payment channels that we offer. Payment channels have -- all the payment channels has been the key to our success because consumers need to choose how they want to pay a company or consumers can choose how they want to get paid. That flexibility has served us very well, especially during times of economic macro issues like during COVID in 2020. As I said today, this week marks our 25th year, and our company has evolved over time. Initially, the first 5 years of our company were known as Billserv. We're the industry leader in electronic bill presentment and payment. We were trading on NASDAQ at the same time. We had -- the slide says more than $500 million market cap. I believe it actually touched $1 billion at one point. We had 16% of all consumer bills under contract. What that means is a company like AT&T, the largest [ biller ] in the United States was our exclusive client. We had clients like Time Warner Cable with Sallie Mae and major utilities throughout United States. The whole industry at the time that it was before our type. Everybody in this room has probably paid a bill online this week. Back then, people were still putting checks in the mail and mailing it to their billers. So nobody in our industry was able to reach profitability, but we are by far the leader and raised actually the least amount of capital, which means during that time period, we developed the skill that we've kept to this day. We do a lot with a little. And so in 2003, we decided to exit that business because we weren't able to raise any more capital. Because of 9/11 event when the market's closed, and we reorganized and we reorganized to become a leader in ACH processing. So in 2003, we started that development work. We concluded it about 2005. And today, we're a leader in the ACH processing space, so much so that if we were a bank, we'd be the 50th largest bank in the United States based upon the volume that we pumped through the Federal Reserve in any given year. Over time, we added more payment channels. And this has been a key to our success. We added credit card processing, and then we added prepaid card processing and during the years, we initiated 3 acquisitions. The first was Akimbo Financial, a leading prepaid program manager. And then subsequently, we bought Singular Payments, which is our entry into payment facilitation, which is a big part of our offerings today. We'll explain what payment facilitation is here in a second. So when you look at our 25 years, really only the last 6 to 7 years really matter because that's when we shifted our focus to become a high-growth oriented company. We always knew our products and services were industry-leading, but -- and so did the industry. But the question was, would it scale? So we decided we wanted to grow the company rapidly to show our industry that our products do scale and they scale well. And so you can see the little yellow dots. Those are the significant events that have occurred over the years. And today, we're focused on growing the company and continuing being the leader in our industry. So when you look at our company last year, we grew 12% year-over-year, our top line sales, and that was with us losing our largest customer last year. This year, we will grow over 20%. And we will talk a little bit more about that. Last year was record revenues. This year will be record revenues. Our public guidance has us around $84 million in sales this year, which is about a 20% gain over last year. We have one type of equity, common shares. Everybody is on the same playing field. The majority of the shares -- not the majority, but a big part of those shares is owned in this room by the executives of Usio. As a fintech payment processor, we have two operating metrics that we watch very closely. In fact, we watch these sometimes hourly. Dollars processed are important to us and transactions processed are very important to us. Some of our products and services, we earn a click fee for every transaction or every piece of paper that we print. Some of our products, we actually are in a percentage of the dollars we process. So ideally, you want to see both of these go up, but they don't have to. So last year, we had 16% increase in transactions. That was enough to cause us to have 12% growth in sales last year. Our dollars actually went down last year because we exited the cryptocurrency industry, which is a very high ticket transaction in the cryptocurrency world, a transaction averages about $500. The rest of our customer base, it's $200. So you'll see -- you see the decrease last year. Again, ideally, you want to see both of these metrics go up, but they don't have to. If one goes up, then we can still grow our company. And when we talk about growth, we've done a great job in growing and this year is going to be no exception. In fact, our public guidance is 18% to 20% growth -- top line growth this year, put us right around $84 million as sales. And we're continuing that trend into next year. We have four operating divisions, payment facilitation. And again, every one of these executives are going to talk about today. Payment facilitation is card processing, but we primarily do it for integrated software vendors, companies that write software for industry vertical. ACH processing, we're a leader in. We have significant scale. Again, if we were a bank, we'd be the 50th largest bank in the United States. ACH is direct debits and credits off your checking or your savings account. Card issuing, amazing tech stack with that part of our business. We issue prepaid cards for a variety of use cases. And then Output Solutions is our print and mail house that prints first-class mail statements, tax notices, a lot, a lot of checks lately. And also digitizes everything before they print it. So everything is PDF. And so we do a lot of electronic statementing and even sometimes add payments on those. So our company, our main uniqueness in the industry has a lot to do with technology. It has a lot to do with how we handle customer service. But these four items is what makes us very unique in the industry. Again, payment channels, we have all of them. And today, we're focusing on leading ones that are not mainstream yet like FedNow and the Clearing House, which both are real-time payments. And today, they're only credits, only money going out. But we'll be there, and we'll have that channel in our toolkit. And if consumers want that and merchants want it, it's going to be available on our platform. Our organization is very highly responsive. We have somebody pick up the phone when our customers call, which is very unique. Our competition Stripe and others, you're lucky to get an e-mail response back. You're not going to find anybody that picks up the phone. Our technology is built on a hub-and-spoke model and is in the cloud. It allows us to add new offerings and to keep our division separate, but to share data across our organizations and allows for easy cross-selling. It allows us, very importantly, to put on new customers without having to buy expensive machines or make big capital expenditures. Our go-to-market strategy is also very unique. We don't spend time selling to individual merchants. You won't see us at a restaurant. You won't see us at a rental car place. We sell primarily to software vendors, companies that write software for a doctor's office. One of our companies as customers is PracticeSuite. They have 20,000 doctors' offices that runs their software. And every day, they add new accounts for us. So we sell to one software vendor and then as they add new clients on their software, we get new clients. So I don't know what the total is, but 10, 20 accounts a day come from them. And we don't have to do any touch -- we don't have any touch points. So it's very unique. When you try to compare us to a company, find a comparable you've got to go really big. You got to look at Pfizer or FIS, major offerings, but we have the same technology and we're positioned to grow very rapidly. So now I'd like to introduce Greg Carter. He's our Executive Vice President of Payment Acceptance. So any type of payment that's coming in through our merchant, Greg overseas. And there you go Greg.

Thank you, Louis, and thank you, everyone, for joining us today. As Louis said, I have the privilege of managing our Payment Acceptance division at Usio. So I think anything that is incoming, any kind of payments where it's credit card, ACH, PINless debit, RCC, that's what our team manages in San Antonio. But next week will be my fourth year at Usio, although I've known Louis professionally for 32 years, seen the company grow dramatically in the last 4 years and looking forward to future growth. First, we'll talk about payment facilitation, and that's really a fancy word for credit card processing. As Louis said, we do target software vendors who write operating software for physicians, for attorneys, for field service workers and what we actually offer is payment facilitation as a Service. Usio is the registered PayFac. Just to put this into context, if you were a software company and wanted to accept payments on your own, it would cost you as a company, literally millions of dollars. You would have to hire risk and compliance staff, you would have to have a bank sponsor. You'd have to get card brand approval, and that endeavor could take you $2 million to $3 million and 18 months. Or you can come sign an agreement with Usio and we can, depending on your integration into our software, you could be accepting payments in as little as 2 weeks. Most often is the case, these ISVs will take anywhere from 6 weeks to 2 years to integrate because it's whatever their user experience or however they want that software that touch point to look and feel. So there's no set way of doing that. But essentially, we get these software vendors the ability to accept payments and the value proposition for them is, one, it doesn't cost them any money; and two, we share revenue with them. So the interchange that we receive from processing payments. We share with that ISV anywhere from 10% to 60% typically. So in most cases, well, we have one ISV right now that's receiving over $35,000 a month just in royalties from being our customer. So it's a meaningful amount of money when you're talking about credit card processing. Card business at Usio, as you see on the slide in front of you is 35%, that includes PayFac. PayFac did grow 27% year-over-year. And I'm happy to say, in the last 12 years -- or the last 4 years, we've essentially gone from $0 to $12 million in revenue. So it's obviously a high end. It's a growth engine for the company, and we continue to sign new ISVs each and every week. As Louis said, we onboard new merchants every morning. So we'll come to work, and we'll have anywhere from 10 to 25 new merchants that have onboarded from the previous day. And the nice thing about payment facilitation is we do this electronically. So gone are the days where you would submit paperwork, financial statements, ownership statements, go through a traditional underwriting that could take 2 weeks before you even approved. With Usio, assuming you put the information correctly, we can have you approved as a vendor in as little as 10 minutes and processing payments within 20 minutes. That can be for one vendor or 1,000. We do have the ability to do the batch boarding, but it's interesting to point out that, that information needs to be correct. Otherwise, it goes through risk review and more of a traditional underwriting approach. Unfortunately, card business is somewhat of a commodity, and it's our lowest margin product at Usio, especially given that we have to share that interchange. So you can see that the net to Usio is best case is 15% on this. So we need to sell a lot of volume to really contribute hard cash or real cash dollars to the company. That's the reason for our expanded sales force and efforts. This is a really cool success story. We have one customer that came to us literally start-up, never done anything with payments before. They had a great idea to start a booster fundraising type software initiative that she would take to schools and other functions like that. So they could sell tickets, merchandise, et cetera. Well, she came to Usio, we were able to get her integrated. And you can see on the slide, she's already earned $35,000 in the last 12 months and went from 0 to $7.5 million in processing volume. She can't do that with Stripe. You can't do that with Square. One, they don't share the revenue; and two, Tracy Rickman, who is our lead developer in the Payment Acceptance side, essentially walked her through the entire process. And this is going to be a very big customer for us. Those that are familiar with the San Antonio area, there's a festival that's put on every fall called Wurstfest. It's a German-oriented celebration. Well, she did all the payments because of her software, they were so impressed through high school. So obviously, Usio benefits from that. But this is really the story of Usio is if we have an opportunity, we're going to exploit the opportunity with them working hand in hand. We don't turn down startups. We don't turn down smaller entities because those smaller entities become larger. As Louis said, we also have ACH. This is probably the -- one of the fundamental building blocks of Usio as a company, a very large scale player. We are Nacha certified, which is the regulatory standard for this industry, longest tenured, and this is one of our highest margin products, especially when we had Voyager last year. They were our largest ACH customer at the time. Everybody in this room has probably used ACH more than once a month. I mean if you do your mortgage payments, your car payments, et cetera. So ACH is direct debits and credits from your checking or savings account. Obviously, really strong margins, 17% of our revenue. So if you look at the payment acquiring space, we're roughly 60% of the company's revenue. And now I'm going to turn it over to Houston Frost to talk about Card Issuing.

Thank you, Greg, and Thanks, everyone, for being here this afternoon. I just pushed the screen button, is that how I will go forward. So Usio's Card Issuing division we issue debit cards, and we issue them for a variety of reasons, and we issue a variety of card types for a variety of organizations. So some of these -- some examples of the cards that we issue are incentive disbursement or promotional type cards. In fact, one of our largest programs that we've done to date was right here in New York City for the local entity called the Economic Development Corporation and we issued 1 million cards, $100 cards each for vaccine incentives. So we did the entire New York City vaccine incentive program, along with a few other cities in the country. We also issue cards for fintech organizations for corporations. We actually, I think, have a few clients here in the audience for Emirates Airlines. Thank you all for being here and MoviePass. Is that right? Do we have -- he's coming. Okay. So these cards may be instead of our promotional cards, but also corporate expense type products as well. We operate the full stack platform behind all these cards, everything from transaction authorization to the mobile apps and the web apps that are used by the cardholders. Customer service is all performed in-house. And so we act really is what you call the program manager as well as the issuer processor. So how do we earn -- generate revenue on these cards? Well, there's 3 primary sources of revenue. One is there are fees that are charged to clients. A second source is their fees that are charged to cardholders. And then the third source is not charged to clients or cardholders, but is actually earned in the form of interchange when our cards are used at various merchants. We generate around 30% to 40% gross margins in this business, and we've had exceptional growth over the past 4 years. In fact, 3 of the past 4 years, we have grown over 100% annually, the card issuing division. So we are currently working to launch an expanded offering for our clients that will be more than just physical or virtual cards, but we'll actually give consumers a choice when they receive money from any organization, government entity or corporation from us. They'll be able to log in to their app. They can view a virtual card number right away or they will be able to link a bank account or a debit card and push that money out to their bank or they can send a check right from our very own output solutions group. So we're excited to be launching this. We actually have a few clients using our Consumer Choice platform today. So I'm brief here, and I will turn it over now to Sy Green, who is our SVP of Output Solutions. Thank you all very much.

Hi, everybody. I'm Sy Green. I manage the Output Solutions department at Usio. Pretty much just what it says is the output instead of taking in the money. We're in charge of sending out bills, statements and invoices and of course, checks. So we do a lot of printing and mailing. For our printers, we print on printers that print at about 420 feet per minute, about 57,000 images an hour full color. On big rolls that are 17 miles long, we'll print those rolls in about 1.5 hours. We're running that 24 hours, so we're actually hauling the mill. We're billing a lot of bills, statements and invoices. So we don't do any standard mail. It's mainly just transaction stuff. Besides printing, we also do a postage too. So we're one of the few printers that have a presort apartment in-house, means we have the same equipment that the postal service does that we're sorting the mail in-house and combining hundreds of mailings per day and taking and making money off that and delivered to the post office already sorted. That enables for quicker turnarounds on mail time and reduce [ postage ] savings. And then besides that, we do a lot of electronic presentment and payments. So there's a lot of payment paper, but nowadays are doing more and more like electronic bill presentment, e-mailing and e-billing. We're doing millions of these. And that's pretty good profit in that too because there's not a lot of labor to do that. So our margins are fairly good at 18% to 22%. In the third quarter, we actually had 25% of the revenue to the company, and we had 9% growth quarter-over-quarter from last year. So lot of people use Output Solutions. We're very efficient. We're automated. We streamline. We speed up the billing process, which is really important of how quickly can you get your bills in your hands for e-mail or mail. So last year, we mailed about 28.5 million invoices and checks. We print millions of checks and tons of invoices and statements, lot of collection letters, medical, they're big in the energy sector. We also do a ton of bill presentment, e-billing and hosting. Document compositions is all done in-house at in-house technology. So everything we get, we turn into PDF to print, display to host. I mentioned e-billing and hosting. Scan to Pay is a nice little feature we've implemented since Usio acquired us. So now we can actually print barcodes on statements, QR codes that linked to payment portals. So if you get a statement, we can put a barcode and you can scan with your mobile device right away and make a payment. It's very convenient. It's a big hit. So Usio wins both ways. So for the printing and mailing, we're making money and then when they're making the payments we're actually processing that to Usio also. We have a success story with the Scan to Pay. So we're working with the tax office in South Texas and they're increasing their tax bills every year. So they put a scan to pay on their tax statements. And because of their increase in tax bills, they were actually able to lower the cost of processing all those payments with all the labor and the extra people they had in-house. So people are actually scanning the QR codes on their tax bills and paying them. They have to log in and go straight to their site. They just go enter their account number and they will go straight to their account, and they just enter their credit card number and they pay their tax bills. And it was amazing because I didn't think people really paid their tax bills over a QR code. But even better than that is they actually -- they paid earlier than later. Tax bills aren't due to late January. Most of their payments are actually paid in November and December using the QR code. And with that, I'll turn this over to Tom Jewell.

Sy didn't even mention that he was going to be getting a new -- he actually has got the new piece of equipment now. So we're really -- we're really looking forward to the efficiencies related to that. So I'm just going to give you quick highlights of our financial performance. So we'll talk a little bit more about the revenue growth, but really, if you look at the chart, pretty much relative to 2022, all of our financial metrics are substantially improved, and we will continue to work to get those going in the right direction. As I say, I will talk about sales. Our metric that we use is adjusted EBITDA. So in the third quarter, we dropped slightly negative. But through 9 months, we're up $2.1 million. And hopefully, that will continue. In terms of the financial success factor, we've really focused on with the higher interest rates, improving our interest income. And so in the third quarter, we had $521,000 of interest income for the 9 months, it's over $800,000. And we actually think that in the fourth quarter, we'll get another $800,000 at least of interest income. Michael White is on the back row. He's our Controller. And what we've done is we went to the banks a couple of times to get higher interest rates, and we still think there might be another higher interest rate that we can get. So we're on our visit this week, we were meeting with [ Oppenheimer ] talking about incremental interest income. So bottom line, net loss, $700,000, as you can tell, 9 months it is $500,000. So the first 2 quarters of the year for the first time we had positive net income, which was awesome. And you can see our outstanding shares. So each one of our line of business, people talked about their lines of business. ACH is the core. It was up 9% in the quarter. Year-to-date, it's flat, and that's mostly because losing Voyager. That's been a big challenge. So credit cards were up 5% for the quarter and 6% year-to-date. Houston talked about card issuing, I still think it's prepaid, but there were up 197% in the quarter and 157% year-to-date. So we expect 300% next year. All right. In Print and Mail, which is Sy, up 9% for the quarter and year-to-date, 18%. They had a really strong first quarter, which was awesome. And we really look forward to the increased capabilities that we have with the new machine that I can't wait for him to get up and running. And I'll be there watching him every day to make sure it gets up there up and running. Okay. So ironically, for the quarter, up 25% and for the year-to-date, up 25%. Obviously, Louis talked about our expectation is only to be up 20%. Fourth quarter was really strong last year. In fact, the first -- the last quarter of 2022, first 2 quarters were the most successful quarters that we've had all with positive adjusted EBITDA of $1 million. So we're headed in the right direction. As I said, we focus in on the non-GAAP, and this is something that we have to do. We always reconcile from operating income to adjusted EBITDA and so negative -- so first 2 columns are the last 2 full years that we have. And as you can see in 2021, we produced $4 million of adjusted EBITDA. In 2022 on the heels of the last quarter being very positive, we lost $400,000. And so for the 3 months, we lost just under $100,000, but again, comparable to 2022 positive and then there's the $2.1 million. And as you can look at the margins with the four lines of business, and being a public company, the margins are what they are. So again, with all of our focus on interest income and the positive results for the year, we've improved our cash by $1.7 million. So as you think about interest income, we have prepaid card loads that somebody else's money, reserves, there's a lot of cash and restricted funds, and we're taking all that to the bank and earning interest as much as we can. And then the other non-GAAP reconciliation is adjusted cash flows and unfortunately, the PCOB and SEC, they won't consider all these noncash items into an operating cash flow statement. So -- the good news is when you take out all the noncash activities or nonoperating activities for the first 9 months, we're up $2.4 million versus a loss of $1.1 million last year. That's from a highlights perspective. And with that, I'll turn it over to Paul for questions and answers. Thank you all so much for being here. We really appreciate it.

Thank you, Tom. Let's give one more round of applause. Thanks for all the department heads and Louis for a great presentation and overview today. So we're going to take some questions. I know that hopefully, some people have some questions here, and I'll take the microphone, and I'll pass it around to whoever has one.

You seem to have had a lot of success with government programs across all four of your business units. Could you, including the most recent I think State of Florida. Could you just talk about the potential there?

Yes, most recent was the state of California. Yes. We did do -- we did do -- we did [indiscernible] and City of Miami for fees and fines. But government is an important sector to us. And especially because government likes to hand out money. So it works really well with our Card Issuing division to issue virtual cards and plastic cards to the citizens of the city, county or state. And we've got -- we've built up amazing reputation with these cities. Our reputation with L.A. County won us the State of California because they talk and they said, we're great. And you'll see us land some more state deals. Is there any more questions?

Darren Chervitz, Jacob Asset Management. Just curious, you mentioned some pretty big competitors, Stripe, Square, a lot of technology expertise there. Talk a little bit about how you differentiate yourself and compete with those guys. But -- can you give me any more color exactly how you win deals going up against those type of player? And then secondly, if you can just discuss maybe macro trends and how that's potentially affecting your business here in the fourth quarter in the next 12 months?

Yes. So we don't compete against Square. Square does primarily retail, and we like to stay out of retail. We do see Stripe all the time. I mean, every time we see Stripe, we get excited because we win. And we win because we have a very rich technology, but it's all about the customer service aspect where Stripe doesn't do a good job at. And so you can pick up phones with us and reach us. When you're implementing, you can talk to our development team which you can't do at Stripe. So being smaller and nimble and having a focus on customer service, that's how we beat Stripe. And each one of our divisions has a different set of competitors, right? So on the card side, we see Stripe and Tilled. Tilled is a PayFac. And Tilled does it on their own technology. So they're not able to move quick when it comes to customizations or they can't even customize. So you kind of get what they've got. So that's how we win in our card division. In card issuing, we have some industry-leading technology and just amazing references. Mastercard loves us so much that they give us deals every week. And they -- we wouldn't be in the government sector for prepaid if it wasn't for MasterCard. MasterCard gave us our first referral for the City of New York. And Los Angeles, called New York and said, "Hey, how are you doing that? And we got the second city, #1 and #2, just from referrals. And today, we're in 7 out of the top 10 cities in the United States. All because of Mastercard started that for us. So every one of our divisions, we focus on customer service. So it's not just enough to have industry-leading technology, we believe in white glove service. And then macro events. We're not in retail. So you won't see us in restaurants and places that get affected by economic downturns. A majority of our accounts are nondiscretionary. It's government -- by the way, when things go bad, the government hands out more money. We've experienced that. And so if we have a bad downturn, States are going to hand out money, especially California, they love to do that. So we see that -- during COVID, we had experienced some trends. Consumers' purchasing habits changed. They didn't want to touch a physical terminal anymore. So they wanted to use their wallets and their phones and do tap and pay. And people didn't want to touch plastic cards either. So during that time frame, we issued more virtual cards in plastic. That trend is kept, has stayed, which we love because the margins on virtual cards are higher than plastic cards. In fact, in most cases, we give away our plastic cards. We don't mark them up. And then the industries we serve are typically ones that continue to get paid, like utilities, mortgage industry, tax payments. And then we have a segment in nonbank lending, our fintech lenders. When things go bad in the macro world, they excel. People borrow and borrow more money from their fintech lenders. So it actually increases our transactions. So during COVID, we saw 2 segments that we have kind of get hit. We have some dental offices from ISVs and some veterinarian offices. They shut down for like 6 weeks, and that costs us about $1 million or so in top line revenue. we actually grew revenues in 2020 over 2019, which is rare for payment processing industry. In fact, companies that had retail were down as much as 60% or 80% top line. and we actually grew revenues in 2020. And we did that because we had a lot of government disbursements during that time frame. Our fintech lending continued to go up and then our nondiscretionary accounts continue to process as normal. Another segment that we're a leader in that's kind of -- won't be touched by macro events is guaranteed income programs. And we pretty much have every guaranteed income program today as a client. And we have that because -- we've developed unique methods to share the data that these programs need to track the purchasing history. So when they're handing out money there's a great one here in New York where single first-time mothers is if they take their babies to -- if they go to their prenatal appointments and then they continue to take the babies to follow-up care, they get $750 a month, and we're distributing those funds. We have other guaranteed income programs where it's just if you live in a certain city or a county or township, you're just receiving a check every month. And of course, it's a prepaid card from us. So those type of programs, they tend to thrive in bad macro events.

How about -- have you looked at parking tickets, traffic tickets, building permits and those other kind of related government programs?

Yes. So we do a lot of fees and fines processing. So if you don't pay your parking tickets, if you don't pay your speeding tickets, we're involved in that in a big way. Some major cities that we do that for Los Angeles County, 11 million citizens. Miami-Dade County, a couple of million, an offshoot to that is toll ways where when you go through a toll way and you don't have a tag and they're just scanning your license plate. We send out bills for that. Then we put a QR code on it that directs them back to our payment site. So we do a lot of fees and fines. We love that business. We actually have an ISV that brings us a lot of that business, and they're doing property tax, fees and fines and then work with counties and cities and states. Any more questions? Darren?

From an M&A perspective, very fragmented industry. You do have a little bit of history with output and before that. But I'm just curious, what are the opportunities you see out there with somewhat limited resources you have. But just curious if you were going to make a move, which business is probably most likely to see activity. And then do you see potentially because scale is so important that at some point, you yourself would be an attractive acquisition candidate for a larger company.

We have done -- completed 3 acquisitions in the history of the company all in the last 7 years. And well, I guess it's maybe a little bit longer, but we have a very strict criteria, we don't buy companies just to buy them. We've got to have some type of synergy. People, technology, industry segment. And then we've got to be able to buy them right. The third one that's kind of hard to accomplish is they have to be able to take care of themselves. We're not going to buy somebody else's problem and think that we're going to wave a magic wand and fix their problem. We don't want that distraction because we know that we have visibility into continued growth ourselves. So right now, we look at properties all the time. And there's a lot of properties in our space that we would have synergies with or we could buy right, but the third criteria is that they have some problem and it's going to distract us. So we haven't found anything we wanted to buy. And so obviously, we wouldn't want to do an equity raise right now to buy. So we would do something with debt if we ran into something. So we're always looking, but we're really, really picky and it's because we have so much visibility into our own growth. The second question is are we an acquisition candidate. The board is very open to being acquired and the calls have already happened. So we continue to manage those calls. And it's a likely outcome for our company. Well, thanks, everybody, for coming today. I'd tell you what time do we say we're going to take pictures, so 3:30 NASDAQ is going to take professional photos, anybody that wishes to participate. And we'll do that in their studio, right? So you can pretend like you ringing the bell, make yourself a really cool Instagram photo. And then you'll get your picture on the market site board, which is right here, right there. We'll go outside. So -- and then our event is at the Marriott Marquis and Broadway Lounge. If you go across the street over there, and you go to the eighth floor, that's where the Broadway Lounge is, and we'll be serving drinks and food and have some fun and get rid of this tie. And I hope to see everybody there.