Quarterly Revenue increased 27.1%
year-over-year Adjusted EBITDA increased 56.4% year-over-year
Paymentus Holdings, Inc. (“Paymentus”) (NYSE: PAY), a leading
provider of cloud-based bill payment technology and solutions,
today announced its unaudited financial results for first quarter
of 2023.
"Paymentus delivered another strong quarter, with revenue up
27.1% year over year and Adjusted EBITDA up 56.4% year-over-year.
Robust bookings resulted in a solid backlog at quarter end, which
we believe demonstrates continuing competitive market momentum and
growth visibility,” said Dushyant Sharma, Founder and CEO.
Q1 2023 Financial and Business
Highlights
- Revenue was $148.3 million, an increase of 27.1%
year-over-year.
- Contribution profit(1) was $53.5 million, an increase of 13.0%
year-over-year.
- Gross profit was $40.1 million, an increase of 15.0%
year-over-year. Adjusted gross profit(1) was $43.7 million, an
increase of 16.9% year-over-year.
- Net income was $0.7 million and GAAP income per share was
$0.01. Non-GAAP net income(1) was $2.9 million and non-GAAP income
per share(1) was $0.02.
- Adjusted EBITDA(1) was $8.4 million for the first quarter of
2023, representing a 15.7% adjusted EBITDA margin(1), an increase
of 56.4% year-over-year.
- Processed 108.5 million transactions in the first quarter of
2023, an increase of 23.4% from the first quarter of 2022.
(1) Descriptions of the non-GAAP financial
measures contribution profit, adjusted gross profit, adjusted
EBITDA, adjusted EBITDA margin, non-GAAP net income, and non-GAAP
earnings per share are provided below under “Use and Definitions of
Non-GAAP Financial Measures,” and reconciliations are provided in
the tables at the end of this release.
Financial Guidance
Certain statements in this release, including without
limitation, those in this section, are forward-looking statements.
For additional information regarding the use and limitations of
such statements, refer to “Forward-Looking Statements” below and
the “Risk Factors” section of Paymentus’ most recent Form 10-K for
the fiscal year ended December 31, 2022 filed with the Securities
and Exchange Commission, or SEC, on March 3, 2023.
Second Quarter 2023
(in thousands)
Revenue
$142 million to $148 million
Contribution Profit
$54 million to $56 million
Adjusted EBITDA
$8 million to $9 million
Fiscal-Year 2023
(in thousands)
Revenue
$591 million to $606 million
Contribution Profit
$225 million to $237 million
Adjusted EBITDA
$34 million to $38.5 million
Paymentus does not reconcile its forward-looking guidance for
non-GAAP measures because certain financial information, the
probable significance of which cannot be determined, is not
available and cannot be reasonably estimated. Refer to “Use of
Forward-Looking Non-GAAP Measures” below for additional
explanation.
The statements in this section are forward-looking statements.
For additional information regarding the use and limitations of
such statements, refer to “Forward-Looking Statements” below.
Conference Call Information
In conjunction with this announcement, Paymentus will host a
conference call for investors at 2:00 p.m. PT (5:00 p.m. ET) today
to discuss first quarter 2023 results and our outlook for the
remainder of 2023. The live webcast and replay will be available at
the Investor Relations section of Paymentus’ website at
ir.paymentus.com or click here. To participate via telephone, dial
1-833-470-1428 (U.S. Toll-Free) or 1-929-526-1599 (International),
access code 838403. A replay will be available after 5:00 p.m. PT
on the same web site.
About Paymentus
Paymentus is a leading provider of cloud-based bill payment
technology and solutions for more than 1,900 billers and financial
institutions across North America. Our omni-channel platform
provides consumers with easy-to-use, flexible and secure electronic
bill payment experiences through their preferred payment channel
and type. Paymentus’ proprietary Instant Payment NetworkTM, or IPN,
extends our reach by connecting our IPN partners’ platforms and
tens of thousands of billers to our integrated billing, payment,
and reconciliation capabilities. For more information, please visit
www.paymentus.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934 and the Private
Securities Litigation Reform Act of 1995. All statements other than
statements of historical or current fact included in this press
release are forward-looking statements, including but not limited
to statements regarding bookings and backlog, the continuing
competitive market momentum and growth visibility, our future
financial performance and our updated second quarter and full-year
2023 financial guidance. Forward-looking statements include
statements containing words such as “expect,” “anticipate,”
“believe,” “project,” “will” and similar expressions intended to
identify forward-looking statements.
These forward-looking statements are based on our current
expectations. Forward-looking statements involve risks and
uncertainties. Our actual results and the timing of events could
differ materially from those anticipated in such forward-looking
statements as a result of these risks and uncertainties, which
include, without limitation, risks related to our ability to
effectively manage our growth and expand our operations, including
into new channels and industry verticals across different markets;
our ability to expand and retain our biller, financial institution,
partner and consumer base; our ability to timely implement new
bookings and recognize anticipated revenue therefrom, the impact of
future widespread health issues or pandemics on our operating
results, liquidity and financial condition and on our employees,
billers, financial institutions, partners, consumers and other key
stakeholders; our ability to remain competitive; our ability to
develop new product features and enhance our platform and brand;
our future acquisitions and strategic investments; our ability to
hire and retain experienced and talented employees; and other risks
and uncertainties included under the caption “Risk Factors” and
elsewhere in our filings with the Securities and Exchange
Commission, or SEC, including, without limitation, our Annual
Report on Form 10-K for the year ended December 31, 2022, filed
with the SEC on March 3, 2023, and our Quarterly Report on Form
10-Q for the quarter ended March 31, 2023, which we expect to file
with the SEC shortly after the date of this release. You are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this press
release.
All forward-looking statements are qualified in their entirety
by this cautionary statement, and we undertake no obligation to
revise or update any forward-looking statements to reflect events
or circumstances after the date hereof.
Use of Forward-Looking Non-GAAP Measures
Paymentus does not meaningfully reconcile guidance for adjusted
EBITDA and adjusted EBITDA margin, because Paymentus cannot provide
guidance for the more significant reconciling items between net
income and adjusted EBITDA without unreasonable effort. This is due
to the fact that future period non-GAAP guidance includes
adjustments for items not indicative of our core operations, which
may include, without limitation, items included in the supplemental
financial information for reconciliation of reported GAAP results
to non-GAAP results. Such items include acquisition related
amortization expense for acquired intangibles, foreign exchange
gains and losses, adjustments to its income tax provision and
certain other items Paymentus believes to be non-indicative of its
ongoing operations. Such adjustments may be affected by changes in
ongoing assumptions, judgments, as well as nonrecurring, unusual or
unanticipated charges, expenses or gains/losses or other items that
may not directly correlate to the underlying performance of our
business operations. The exact amount of these adjustments is not
currently determinable but may be significant.
Use and Definitions of Non-GAAP Financial Measures
In addition to disclosing financial measures in accordance with
accounting principles generally accepted in the United States, or
GAAP, this press release and the accompanying tables contain
certain non-GAAP financial measures, including contribution profit,
adjusted gross profit, and non-GAAP net income (including those
amounts as a percentage of revenue), non-GAAP earnings per share,
adjusted EBITDA, adjusted EBITDA margin, and free cash flow. We use
non-GAAP measures to supplement financial information presented on
a GAAP basis. We believe that excluding certain items from our GAAP
results allows management and our board of directors to more fully
understand our consolidated financial performance from period to
period and helps management project our future consolidated
financial performance as forecasts are developed at a level of
detail different from that used to prepare GAAP-based financial
measures.
Contribution profit is defined as gross profit plus other
cost of revenue. Other cost of revenue equals cost of revenue less
interchange and assessment fees paid by us to our payment
processors. Interchange and assessment fees paid by us to our
payment processors are excluded from contribution profit because we
believe inclusion is less directly reflective of our operating
performance as we do not control the payment channel used by
consumers, which is the primary determinant of the amount of
interchange and assessment fees. We use contribution profit to
measure the amount available to fund our operations after
interchange and assessment fees, which are directly linked to the
number of transactions we process and thus our revenue and gross
profit.
Adjusted gross profit is defined as gross profit adjusted
for certain non-cash items, primarily stock-based compensation and
amortization.
Adjusted EBITDA is defined as net income before other
income (expense) (which consists of interest income (expense), net
and foreign exchange gain (loss)), depreciation and amortization,
and income taxes, adjusted to exclude the effects of stock-based
compensation expense and certain nonrecurring expenses that
management believes are not indicative of ongoing operations.
Adjusted EBITDA margin is defined as adjusted EBITDA as a
percentage of contribution profit.
Free cash flow is defined as net cash provided by (used
in) operating activities less capital expenditures and capitalized
internal-use software development costs.
Non-GAAP net income and non-GAAP EPS are defined
as net income and net income per share, respectively, excluding
certain nonrecurring items such as discrete tax items, one-time
expenses or other non-cash items, including amortization of
acquisition-related intangibles.
We believe Non-GAAP net income and non-GAAP EPS enhance the
understanding of the Company’s operating performance and enables
more meaningful period to period comparisons.
We believe these non-GAAP measures provide our investors with
useful information to help them evaluate our operating results by
facilitating an enhanced understanding of our operating performance
and enabling them to make more meaningful period-to-period
comparisons.
We use these non-GAAP measures in conjunction with GAAP measures
as part of our overall assessment of our performance and liquidity,
including the preparation of our annual operating budget and
quarterly forecasts, to evaluate the effectiveness of our business
strategies, and to communicate with our board of directors
concerning our financial performance and liquidity. There are
limitations to the use of the non-GAAP measures presented in this
press release. Our non-GAAP measures may not be comparable to
similarly titled measures of other companies; other companies,
including companies in our industry, may calculate non-GAAP
measures differently than we do, limiting the usefulness of those
measures for comparative purposes. These non-GAAP measures should
not be considered in isolation from or as a substitute for
financial measures prepared in accordance with GAAP.
We encourage investors and others to review our financial
information in its entirety, not to rely on any single financial
measure, and to view our non-GAAP measures in conjunction with GAAP
financial measures. For a reconciliation of these non-GAAP
financial measures to GAAP measures, please see the tables for the
reconciliation of GAAP to non-GAAP results included at the end of
this release.
PAYMENTUS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited)
(In thousands, except share and
per share data)
Three Months Ended March
31,
2023
2022
Revenue
$
148,328
$
116,704
Cost of revenue
108,250
81,850
Gross profit
40,078
34,854
Operating expenses
Research and development
11,653
10,390
Sales and marketing
20,264
16,190
General and administrative
9,145
9,645
Total operating expenses
41,062
36,225
Loss from operations
(984
)
(1,371
)
Other income (loss)
Interest income (expense), net
1,440
(8
)
Foreign exchange (loss) gain
(8
)
26
Income (loss) before income taxes
448
(1,353
)
Benefit from income taxes
256
3,071
Net income
$
704
$
1,718
Net income per share
Basic
$
0.01
$
0.01
Diluted
$
0.01
$
0.01
Weighted-average number of shares used to
compute net income per share
Basic
123,289,584
120,897,576
Diluted
123,792,741
125,986,510
Comprehensive income
Net income
704
1,718
Foreign currency translation adjustments,
net of tax
(7
)
(45
)
Comprehensive income
$
697
$
1,673
PAYMENTUS HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS (Unaudited)
(In thousands, except share and
per share data)
March 31,
December 31,
2023
2022
Assets
Current assets
Cash and cash equivalents
$
143,637
$
147,334
Restricted cash and cash equivalents
1,386
2,351
Accounts and other receivables, net of
allowance for expected credit losses of $117 and $370,
respectively
76,381
67,789
Income tax receivable
2,141
1,493
Prepaid expenses and other current
assets
9,082
9,994
Total current assets
232,627
228,961
Property and equipment, net
1,668
1,823
Capitalized internal-use software
development costs, net
49,482
46,032
Intangible assets, net
33,808
36,017
Goodwill
131,854
131,851
Operating lease right-of-use assets
10,453
9,561
Deferred tax asset
117
116
Other long-term assets
6,533
7,178
Total assets
$
466,542
$
461,539
Liabilities and Stockholders’
Equity
Current liabilities
Accounts payable
$
32,573
$
29,232
Accrued liabilities
12,288
15,809
Current portion of operating lease
liabilities
1,643
1,462
Contract liabilities
4,639
4,358
Income tax payable
268
635
Total current liabilities
51,411
51,496
Deferred tax liability
772
680
Operating lease liabilities, less current
portion
9,313
8,608
Contract liabilities, less current
portion
4,606
2,826
Finance leases and other finance
obligations, net of current portion
400
750
Total liabilities
66,502
64,360
Stockholders’ equity
Preferred stock, $0.0001 par value per
share, 5,000,000 shares authorized as of March 31, 2023 and
December 31, 2022, respectively; none issued and outstanding as of
March 31, 2023 and December 31, 2022, respectively
—
—
Class A common stock, $0.0001 par value
per share, 883,950,000 shares authorized as of March 31, 2023 and
December 31, 2022, respectively; 20,039,322 and 19,934,331 shares
issued and outstanding as of March 31, 2023 and December 31, 2022,
respectively
2
2
Class B common stock, $0.0001 par value
per share, 111,050,000 shares authorized as of March 31, 2023 and
December 31, 2022, respectively; 103,306,842 shares issued and
outstanding as of March 31, 2023 and December 31, 2022
10
10
Additional paid-in capital
369,931
367,767
Accumulated other comprehensive loss
(29
)
(22
)
Retained earnings
30,126
29,422
Total stockholders’ equity
400,040
397,179
Total liabilities and stockholders'
equity
$
466,542
$
461,539
PAYMENTUS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS (Unaudited)
(In thousands)
Three Months Ended March
31,
2023
2022
Cash flows from operating
activities
Net income
$
704
$
1,718
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation and amortization
7,239
5,474
Deferred income taxes
92
1,406
Stock-based compensation
2,159
1,276
Non-cash lease expense
462
755
Amortization of contract asset
696
467
Provision for expected credit losses
(239
)
95
Change in operating assets and
liabilities
Accounts and other receivables
(8,333
)
(8,082
)
Prepaid expenses and other current and
long-term assets
861
(161
)
Accounts payable
3,297
4,916
Accrued liabilities
(2,749
)
862
Operating lease liabilities
(469
)
(770
)
Contract liabilities
2,061
(57
)
Income taxes receivable, net of
payable
(1,018
)
(4,651
)
Net cash provided by operating
activities
4,763
3,248
Cash flows from investing
activities
Other intangible assets acquired
—
(23
)
Purchases of property and equipment
(67
)
(530
)
Capitalized internal-use software
development costs
(8,219
)
(6,731
)
Net cash used in investing activities
(8,286
)
(7,284
)
Cash flows from financing
activities
Proceeds from exercise of stock-based
awards
5
13
Financial institution funds in-transit
—
3,339
Payments on other financing
obligations
(1,025
)
(915
)
Payments on finance leases
(102
)
(74
)
Net cash (used in) provided by financing
activities
(1,122
)
2,363
Effect of exchange rate changes on Cash
and cash equivalents and Restricted cash
(17
)
10
Net decrease in cash, cash equivalents and
Restricted cash
(4,662
)
(1,663
)
Cash and cash equivalents and Restricted
cash beginning of period
149,685
201,829
Cash and cash equivalents and Restricted
cash end of period
145,023
$
200,166
Reconciliation of Cash and cash
equivalents and Restricted Cash:
Cash and cash equivalents at beginning of
period
147,334
168,386
Restricted cash at beginning of period
2,351
—
Restricted funds held for financial
institutions at beginning of period
—
33,443
Cash and cash equivalents and Restricted
cash at beginning of period
$
149,685
$
201,829
Cash and cash equivalents at end of
period
143,637
163,384
Restricted cash at end of period
1,386
—
Restricted funds held for financial
institutions at end of period
—
36,782
Cash and cash equivalents and Restricted
cash at end of period
$
145,023
$
200,166
Supplemental disclosure of cash flow
information:
Cash paid for income taxes, net of
refunds
$
616
$
173
Non-cash investing activities:
Property and equipment purchases in
accounts payable
$
119
$
123
Right-of-use assets obtained in exchange
of operating lease obligations
$
1,356
$
297
PAYMENTUS HOLDINGS, INC. GAAP to Non-GAAP
Reconciliations (Unaudited) (in thousands, except percentages and
per share data)
The following tables set forth our non-GAAP financial measures
with reconciliations to the most directly comparable GAAP financial
measures.
Contribution Profit
Three Months Ended
March 31, 2023
March 31, 2022
(in thousands)
Gross Profit
$
40,078
$
34,854
Plus: other cost of revenue
13,453
12,531
Contribution Profit
$
53,531
$
47,385
Adjusted Gross Profit
Three Months Ended
March 31, 2023
March 31, 2022
(in thousands)
Gross profit
$
40,078
$
34,854
Stock-based compensation
45
—
Amortization
3,567
2,510
Adjusted gross profit
$
43,690
$
37,364
Adjusted EBITDA and Adjusted EBITDA Margin
Three Months Ended
March 31, 2023
March 31, 2022
(in thousands)
Net income — GAAP
$
704
$
1,718
Interest (income) expense, net
(1,440
)
8
Provision for (benefit from) income
taxes
(256
)
(3,071
)
Depreciation and amortization
7,239
5,474
EBITDA
$
6,247
$
4,129
Adjustments
Foreign exchange loss (gain)
8
(26
)
Stock-based compensation
2,159
1,276
Adjusted EBITDA
$
8,414
$
5,379
Adjusted EBITDA margin
15.7
%
11.4
%
PAYMENTUS HOLDINGS, INC. GAAP to Non-GAAP
Reconciliations (Unaudited) (in thousands, except percentages and
per share data)
Free Cash Flow
Three Months Ended
March 31, 2023
March 31, 2022
(in thousands)
Net cash provided by operating
activities
$
4,763
$
3,248
Purchases of property and equipment and
software
(67
)
(530
)
Other intangible assets acquired
--
(23
)
Capitalized internal-use software
development costs
(8,219
)
(6,731
)
Free cash flow
$
(3,523
)
$
(4,036
)
Net cash used in investing activities
$
(8,286
)
$
(7,284
)
Net cash (used in) provided by financing
activities
$
(1,122
)
$
2,363
Non-GAAP Net Income & Non-GAAP EPS
Three Months Ended
March 31, 2023
March 31, 2022
(in thousands)
Net income
$
704
$
1,718
Excluding amortization of
acquisition-related intangibles (1)
2,224
2,007
Non-GAAP net income
$
2,928
$
3,725
Weighted-average shares of common stock —
diluted
123,792,741
125,986,510
Non-GAAP earnings per share —
diluted
$
0.02
$
0.03
(1) Amortization of acquisition-related
intangibles for the three months ended March 31, 2023 includes
amortization of intangibles acquired in (i) the purchase of PROFIT
Financial, Inc. in the fourth quarter of 2022, (ii) the purchase of
PayVeris LLC in the third quarter of 2021, and (iii) the purchase
of Finovera, Inc. in the third quarter of 2021. Amortization of
acquisition-related intangibles for the three months ended December
31, 2022 and March 31, 2022 includes amortization of intangibles
acquired in (i) the purchase of PayVeris LLC in the third quarter
of 2021 and (ii) the purchase of Finovera, Inc. in the third
quarter of 2021.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230508005235/en/
At the Company Sanjay Kalra Chief Financial Officer
Paymentus Holdings, Inc. ir@paymentus.com
Investor Relations David Hanover paymentus@kcsa.com
Media Relations Tony Labriola tony@thinkinsideout.com
Paymentus (NYSE:PAY)
Historical Stock Chart
From Apr 2024 to May 2024
Paymentus (NYSE:PAY)
Historical Stock Chart
From May 2023 to May 2024