Triumph Financial, Inc. Q4 FY2024 earnings call

• Milestones: Touching 50% of all brokered freight transactions in the US and eclipsing over $100 billion in total payments from the payment segment. • AI and ML Impact: Changing network transactions, with touch-free processing being worked on, where audit and payment features can process invoices without human touch. • Intelligence Segment: Target customers are largely existing TriumphPay customers, expanding to top 1,000 freight brokers. Customers want data insights as Triumph is neutral and has precise payment data. • Investments: In Factoring-as-a-Service and LoadPay, with LoadPay having potential large scale and active debit card usage with interchange rates being monitored.

The company has a payment segment that eclipsed over $100 billion in total payments. A new Intelligence segment was introduced, but specific absolute revenue figures and contribution percentages for segments weren't detailed in absolute terms with exact percentages in the transcript.

• Aim to be at 60% to 65% market share by end of 2024, with revenue from newer deals weighted in the second half. • Expect EBITDA improvement throughout the year. • Factoring-as-a-Service starting with large brokers like C.H. Robinson, with potential for other brokers to follow later. • LoadPay has active debit card usage with average interchange rate of about 1.9% in January, with potential for growth as more accounts are used.

• Uncertainty in pull-through from C.H. Robinson's marketing campaign for adding new Factoring-as-a-Service and LoadPay customers. • Market conditions affecting the growth of factoring volume and EBITDA margin. • Technical debt issues in legacy software used by factors, limiting the value proposition initially as they couldn't ingest data as expected.

Q: You discussed about increasing market share in your factoring business, which I believe is currently around 15%. How quickly do you think you'll be able to raise your market share? Is something like 100 basis points a year achievable in your view?

A: Aaron Graft said 1% market share growth is achievable, talking about market dynamics and C.H. Robinson's role in driving adoption, and historical application numbers showing potential for market share growth when the market turns.