Travel Increase Boosts Toll Managing, More

 Travel Increase Boosts Toll Managing, More

As travel increases, so does the number of tolls, tickets and parking meters to be paid.

Verra Mobility reported that its total revenue in the first quarter increased by 90% per year. The company’s organic service revenue grew 45% mainly due to increased travel demand. Two companies that recently acquired it have also contributed to the expansion.

“All aspects of our business have benefited from strong macro trends, including a significant increase in travel that has driven our performance in Commercial Services,” CEO of Verra Mobility. David Roberts said in a press release.

Cashless Tolls, Toll Rates Rising

The operations portion of the Commercial Service offers automated toll management and violations and title and registration solutions to auto rental companies and other owners of large ships.

Revenue in that segment increased 61% annually. Compared to the pre-pandemic first quarter of 2019, revenue increased by 17%.

Company executives reported that the growth was helped by boosting demand for travel which led to an increase in the demand for car rental, with car rental companies seeing a significant increase in demand compared to in the last quarter and last year.

“While car rental volumes remained below pre-pandemic levels, the percentage of cashless tolls, toll rates, billable days and customer adoption trends are increasing,” Verra Mobility Chief Financial Officer Craig Conti said during the company’s quarterly earnings call.

Additional Photo Enforcement Deployed

New York City’s photo enforcement expansion efforts contributed 28% year-over-year revenue growth to another part of Verra Mobility’s operations, Government Solutions, which offers technology that enables the implementation of photo related to speed, red light, school bus and city bus lane management.

“Overall, the market for photo enforcement appears to be growing at a rapid pace, likely after many municipalities slowed purchasing activities during the COVID period,” Roberts said during the call.

On the other hand, Parking Solutions, provides software and hardware for parking management. This feature is new for Verra Mobility and was formed by its acquisition of T2 Systems in December. In this regard, the company says it expects short-term double-digit revenue growth.

“I am very pleased with our financial results in all our areas, and we have experienced a strong increase in bookings and our sales pipeline, both of which are the leading indicators for future growth, “Roberts said in a press release.

Cities, Fleets Looking for Smart Mobility

Looking ahead, the company sees strong secular driver growth, including the shift to cashless tolling, strong demand for photo enforcement to improve safety and growing parking management opportunities. on the curbside, said a presentations issued simultaneously with the revenue call. As a result, it expects continued revenue growth in all three sectors.

After two new acquisitions, Verra Mobility is also always thinking more.

“We continue to look at the entire ecosystem of intelligent mobility,” Roberts said during the call. “I think one is anything we can continue to look at that can improve our commercial fleet business in terms of other more connected fleet-related auto games not just now. but in the future.And then continue the search for the next set of technologies that will help towns bring safety to their communities.



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