Verra Mobility Stock

Verra Mobility Corporation provides smart mobility technology solutions throughout the United States, Australia, Europe, and Canada.

The company makes transportation safer, smarter and more connected through the company’s integrated, data-driven solutions, including toll and violations management, title and registration services, automated safety and traffic enforcement and commercial parking management.

The company brings together vehicles, hardware, software, data, and people to solve transportation challenges for customers around the world, including fleet owners, such as rental car companies (‘RACs’) and fleet management companies (‘FMCs’), governments, universities, parking operators, healthcare facilities, transportation hubs, and other violation-issuing authorities.

Segments

The company’s solutions are offered through three segments: Commercial Services, Government Solutions, and Parking Solutions.

Commercial Services

The company’s Commercial Services segment is the market-leading provider of automated toll and violations management and title and registration solutions to RACs, FMCs and other large fleet owners in North America. In Europe, the company’s Commercial Services segment provides violations processing through Euro Parking Collection plc (‘EPC’) and consumer tolling services through Pagatelia S.L.U. (‘Pagatelia’).

The company has long-standing relationships with, among others, the three largest RACs in the United States, Avis Budget Group, Enterprise Holdings, Inc. and The Hertz Corporation. The company also has relationships with key European RACs and the five largest FMCs in the United States. Through the company’s established relationships with individual tolling authorities throughout the United States, the company provides an automated and outsourced administrative solution for the company’s customers while also providing a value-added convenience for vehicle drivers and benefits to the tolling and issuing authorities.

The company’s toll and violations management solutions help ensure timely payment for tolls and violations incurred by the company’s customers’ vehicles and perform timely transfers of liability on the company’s customers’ behalf, and billing and collecting from the driver as applicable. The company also manages regional toll transponder installation and vehicle association, a critical and highly complex process for RAC and FMC customers, to ensure that the transponder (and corresponding toll transactions) are associated with the correct vehicle.

Government Solutions

The company’s Government Solutions segment is the market-leading provider of automated safety solutions in the United States, Canada and Australia to state and local governments. In the United States, the company provides government agencies with road safety cameras to detect and process traffic violations for red-light, speed, school bus, and city bus lanes. The company’s proprietary hardware and software technologies provide government agencies the information, data, and automated end-to-end administrative capabilities to enforce traffic violations through photo enforcement.

On behalf of the company’s customers, it installs, maintains, and manages automated safety solution hardware and software that processes event data, applies customer specific rules and connects a traffic violation to the responsible driver or vehicle owner. Additionally, upon law enforcement’s determination that a violation has occurred, the company offers an ‘end-to-end’ solution to manage the citation mailing, billing, and other administrative tasks on behalf of the company’s customers. For many international customers, the company designs, engineers, and maintains roadside photo enforcement technology, including both hardware and software, which is sold or licensed to government agencies and often maintained with maintenance contracts to support the technology.

Parking Solutions

The company formed its Parking Solutions segment after the company’s acquisition of T2 Systems Parent Corporation (‘T2 Systems’) in December 2021. The company’s Parking Solutions segment is a North American leader of end-to-end commercial parking management solutions in the markets the company serves. This segment serves over 2,000 customers in the university, municipal, healthcare and commercial operator markets. The company’s proprietary software and hardware technologies provides its customers with solutions needed to manage and monetize parking and enforcement operations. In 2022, the company processed over 163 million transactions using the company’s various parking solutions systems. Each need requires technology solutions for parking access and revenue control, single- and multi-space pay stations, integrated physical and mobile payments, back-office parking rate management, permit issuance and management, online citation payment, event parking, occupancy, and back-office management of violations, amongst other requirements.

Markets

Commercial Fleet: The company’s Commercial Services customers consist of RACs, FMCs and other large fleet owners.

Products

Commercial Services

Toll Management Solutions

The company provides fully outsourced toll management solutions for its fleet owner customers, including RACs and FMCs, while also providing a value-added convenience for vehicle drivers via the company’s established relationships and integrations with more than 50 individual tolling authorities throughout the United States. This comprehensive network allows RAC and FMC drivers the convenience of using cashless and all-electronic tolls. Additionally, this service helps prevent the liability and business disruption of costly toll violations incurred by vehicles owned by RAC and FMC customers and eliminates their need to manage a nationwide program internally. The company’s proprietary software technology and hardware allow the company to effectively match a toll to the specific RAC or FMC vehicle and driver so that the toll can accurately and reliably be billed and collected on behalf of, or directly from, the RAC or FMC.

Violations Management Solutions

The company’s violations management solutions process violations incurred by the drivers of RAC and FMC vehicles by working with more than 8,000 domestic violation-issuing authorities (more than 400 of which the company is directly integrated with) to either pay the fine on behalf of the vehicle owner (for which the company is able to bill the driver) or to transfer liability directly to the vehicle driver. Vehicle-issued violations include parking and photo enforcement violations. In Europe, the company specializes in the identification, notification, and collection of unpaid traffic, parking and public transport related fees, charges, and penalties issued to foreign registered vehicles or persons on behalf of issuing authorities in 17 European countries.

Title and Registration Solutions

The company’s title and registration solutions provide RAC and FMC customers with an integrated, end-to-end solution for managing vehicle titles and registrations and annual renewals. The company provides automated title and registration solutions by leveraging connections with individual departments of motor vehicles for electronic title and registration processing in 20 states.

Government Solutions

The company serves as a value-add partner to government agencies by providing photo enforcement solutions that promote traffic safety and reduce traffic violations. The company works with its customers to identify problematic traffic areas and install, maintain and manage the technology platform needed to capture images or videos of drivers committing traffic violations. Red-light cameras are placed at intersections to capture vehicles running red lights. Similarly, speed safety cameras are used to capture vehicles exceeding speed limits, either on a fixed basis or in a mobile platform, and often in school zones. School bus cameras are fixed to the side of buses to capture vehicles passing school buses with extended stop arms. Finally, bus lane cameras are designed to capture vehicles illegally driving in restricted bus lanes.

For customers of the company’s end-to-end solutions, the company automatically sends captured events to the designated enforcement agency of the customer, where an authorized individual determines if a violation occurred. Direct service revenue from red-light cameras, speed cameras, school bus cameras, and city bus lane cameras accounted for approximately 38.3% of the company’s 2022 revenues. Other segment service revenue consists primarily of ancillary revenue streams, which comprised 3.2% of total revenue. Product sales to customers are not recurring and are dependent on the company’s customers’ needs, and account for 3.9% of total revenue.

Parking Solutions

Parking Access and Revenue Control

The company’s Parking Access and Revenue Control (‘PARCS’) technology solutions include both software and hardware offerings, which work in concert to help the company’s customers manage their gated, gateless and license plate recognition-based parking lot and parking garage needs. The company installed over 2,500 PARCS lanes as of December 31, 2022. The company’s related software is the industry’s original hosted parking management software, which allows management of the company’s customers’ PARCS solutions from a computer or mobile device.

Pay Stations

The company’s pay stations hardware technology has interoperability with over 50 third-party systems, as well as the company’s PARCS and parking enforcement solutions. They are powered by a highly configurable and data driven software technology, which supports the enforcement, mobile payments, and back-office and accounting needs of the company’s customers. The company’s fleet of Pay Stations hardware exceeded 16,800 units as of December 31, 2022.

Permits & Enforcement

The company’s Permits & Enforcement (‘PE’) software technology solutions allow the company’s customers to control who is parking in their facilities and when and where drivers can park using physical or virtual permits, allowing customers to control traffic and maximize their parking-related revenues. This technology also provides enforcement officers with real-time information and custom notifications on their enforcement devices. Citations management features also help to organize fine escalations and notification letters to parking violators.

Intellectual Property

The company owns approximately 82 U.S.- and foreign-issued patents and pending patent applications, including patents and rights to patent applications acquired through strategic transactions, which relate to various aspects of the company’s products and technology. The company’s patent portfolio evolves as new patents are awarded to the company and as older patents expire. Patents expire at various dates, generally 20 years from their original filing dates.

The company has approximately 214 registrations and pending applications in the United States and foreign jurisdictions for trademarks and service marks, reflecting the company’s many products and services. These registrations and applications include the company’s historic and acquired brands, as well as Verra Mobility.

Government Regulation

The company’s operations are subject to regulation by various U.S. federal agencies, including the U.S. Department of Transportation, (‘USDOT’), the Federal Trade Commission, (‘FTC’), the Federal Communications Commission, the Consumer Product Safety Commission, and the Environmental Protection Agency, as well as comparable international, state and local agencies, including the departments of transportation, departments of motor vehicles, and offices of inspectors general, and laws related to financial and banking regulations. Following the acquisition of EPC, Pagatelia and Redflex Holdings Limited, now known as Redflex Holdings Pty Ltd. (‘Redflex’), and in connection with the company’s European expansion efforts, the company is subject to laws, regulations and administrative practices addressing many of these same matters in Europe, Australia and Canada, including those specifically relating to accessing and use of information obtained from vehicle licensing authorities, as well as European regulations to traffic enforcement and collections and other financial and banking regulations.

As part of the company’s business, the company collects, receives, processes, uses, transmits, discloses, and retains information relating to identifiable individuals (‘personal information’) and, therefore, are subject to various laws protecting privacy and security of personal information, including but not limited to the U.S. Driver Privacy Protection Act, the General Data Protection Regulation (the ‘GDPR’) in the European Union (the ‘E.U.’), the Data Protection Act of 2018 in the United Kingdom, the Canadian Personal Information Protection and Electronic Documents Act, the Australia Privacy Act of 1988, New Zealand’s Privacy Act of 2020, the California Consumer Privacy Act (the ‘CCPA’) and other national and state privacy laws.

The company is also subject to similar restrictions and audit requirements pursuant to the company’s contracts with the organizations from which the company gains access to personal information, such as the departments of motor vehicles and the National Law Enforcement Telecommunications System.

History

Verra Mobility Corporation was incorporated in 2016.