Flywire Corporation (Nasdaq: FLYW) (“Flywire” or the “Company”) a
global payments enablement and software company, today reported
financial results for its fourth quarter and fiscal-year ended
December 31, 2024.
"Our fourth quarter results capped off another strong year for
Flywire as we continued to grow the business while navigating a
complex macro environment with significant headwinds,” said Mike
Massaro, CEO of Flywire, “We continued to focus on business and
bottom line growth and generated 17% revenue growth and 680 bps
adjusted EBITDA margin growth in the quarter.”
"Looking ahead, we’re focused on driving effectiveness and
discipline throughout our global business. We will be undertaking
an operational and business portfolio review. The operational
review will help ensure we are efficient and effective, with a
focus on driving productivity and optimizing investments across all
areas. Our comprehensive business portfolio review will focus on
Flywire’s core strengths - such as complex, large-value payment
processing, our global payment network, and verticalized
software.”
“One of the efficiency measures we are undertaking is a
restructuring, which impacts approximately 10% of our workforce. It
is difficult to say goodbye to so many FlyMates, and I want to
thank them for their hard work as we endeavor to support them
throughout this transition.”
“As we refocus our teams on areas that we believe will drive
Flywire’s future growth, we are excited to announce the acquisition
of Sertifi, which is expected to accelerate the expansion of our
fast-growing Travel vertical. Sertifi augments our travel product
offering with a leading dedicated hotel property management system
integration and expands our footprint across more than 20,000 hotel
locations worldwide."
Fourth Quarter 2024 Financial Highlights:
GAAP Results
- Revenue increased 17.0% to $117.6 million in the fourth quarter
of 2024, compared to $100.5 million in the fourth quarter of
2023.
- Gross Profit increased to $74.3 million, resulting in Gross
Margin of 63.2%, for the fourth quarter of 2024, compared to Gross
Profit of $61.8 million and Gross Margin of 61.5% in the fourth
quarter of 2023.
- Net loss was ($15.9) million in the fourth quarter of 2024,
compared to net income of $1.3 million in the fourth quarter of
2023.
Key Operating Metrics and Non-GAAP Results
- Number of clients grew by 16%year-over-year, with over 180 new
clients added in the fourth quarter of 2024.
- Total Payment Volume increased 27.6% to $6.9 billion in the
fourth quarter of 2024, compared to $5.4 billion in the fourth
quarter of 2023.
- Revenue Less Ancillary Services increased 17.4% to $112.8
million in the fourth quarter of 2024, compared to $96.1 million in
the fourth quarter of 2023.
- Adjusted Gross Profit increased to $75.6 million, up 19.1%
compared to $63.5 million in the fourth quarter of 2023. Adjusted
Gross Margin was 67.0% in the fourth quarter of 2024 compared to
66.1% in the fourth quarter of 2023.
- Adjusted EBITDA increased to $16.7 million in the fourth
quarter of 2024, compared to $7.7 million in the fourth quarter of
2023. Our adjusted EBITDA margins increased 680 bps year-over-year
to 14.8% in the fourth quarter of 2024.
2024 Business Highlights:
- We signed more than 800 new clients in fiscal-year 2024
surpassing the 700 new clients signed in fiscal-year 2023.
- Our transaction payment volume grew by 23.6% year-over-year to
$29.7 billion
- Our global education
vertical, continued to strengthen in a number of core
geographies, with U.K. region outperformance driven by new clients
and net revenue retention; accompanied by growth in our network of
international recruitment agents to further
connect our ecosystem of clients, agents and payers
- Our travel vertical grew into our second
largest vertical in terms of revenue less ancillary services, and
we generated strong growth most notably with EMEA and APAC based
Tour Operators and DMC providers, particularly in our new sub
vertical of ocean experiences.
- Our business-to-business vertical continued
its strong organic growth, enhanced by the acquisition of
Invoiced.
- We further optimized our global payment
network to enable vertical growth with a focus on new
acceptance rails, market localization and expanded network
coverage. This included continued support of our strategic payer
markets like India and China, enhancing our
offerings to digitize the disbursement of student loans from India
and strengthening partnerships with India’s three largest
banks.
- We repurchased 2.3 million shares for approximately $44
million, inclusive of commissions, under our share repurchase
program announced on August 6th, 2024.
First Quarter and Fiscal-Year 2025 Outlook:
“Effective execution drove both revenue growth and margin
expansion in 2024, in spite of significant macroeconomic
challenges” said Flywire's CFO, Cosmin Pitigoi. “For our 2025
financial outlook, we project revenue less ancillary services
growth of 10-14% on an FX-neutral (constant currency) basis, and a
200-400 basis point increase in adjusted EBITDA margin. We expect
approximately 3 percentage points of headwind from FX throughout
the year. This guidance excludes the contributions from the
Sertifi acquisition, as well as any potential lessening of the
macroeconomic headwinds. We are particularly encouraged by the
anticipated performance of our combined travel vertical, as well as
the emerging B2B vertical, both of which are expected to exceed our
historical growth rate for the applicable vertical”
Based on information available as of February 25, 2025, Flywire
anticipates the following results for the first quarter and
fiscal-year 2025 excluding Sertifi.
|
|
Fiscal-Year 2025 |
|
FX-Neutral GAAP Revenue Growth |
9-13% YoY |
|
FX-Neutral Revenue Less Ancillary Services Growth |
10-14% YoY |
|
Adjusted EBITDA* Margin Growth |
+200-400 bps YoY |
|
|
|
|
|
First Quarter 2025 |
|
FX-Neutral GAAP Revenue Growth |
10-13% YoY |
|
FX-Neutral Revenue Less Ancillary Services Growth |
11-14% YoY |
|
Adjusted EBITDA* Margin Growth |
+300-600 bps YoY |
|
|
|
“Based on Sertifi’s historical financials, we currently expect
the acquisition to provide incremental revenue of $3.0-4.0 million
and $30.0-40.0 million in revenue in the first quarter and
fiscal year 2025, respectively. In addition, we currently
expect the Sertifi acquisition to have a flat to slightly positive
effect on adjusted EBITDA and positive (low single–digit million)
effect on adjusted EBITDA, in the first quarter and fiscal year
2025, respectively, as we plan to invest in the combined solution
during 2025.”
*Flywire has not provided a quantitative reconciliation of
forecasted Adjusted EBITDA Margin growth to forecasted GAAP Net
Income Margin growth within this earnings release because Flywire
is unable, without making unreasonable efforts, to calculate
certain reconciling items with confidence. These items include, but
are not limited to income taxes which are directly impacted by
unpredictable fluctuations in the market price of Flywire's stock
and in foreign currency exchange rates.
These statements are forward-looking and actual results may
differ materially. Refer to the “Safe Harbor Statement” below for
information on the factors that could cause Flywire’s actual
results to differ materially from these forward-looking
statements.
Conference Call
The Company will host a conference call to discuss fourth
quarter and fiscal-year 2024 financial results today at 5:00 pm ET.
Hosting the call will be Mike Massaro, CEO, Rob Orgel, President
and COO, and Cosmin Pitigoi, CFO. The conference call can be
accessed live via webcast from the Company's investor relations
website at https://ir.flywire.com/. A replay will be available on
the investor relations website following the call.
Note Regarding Share Repurchase Program
Repurchases under the Company’s share repurchase program (the
Repurchase Program) may be made from time to time through open
market purchases, in privately negotiated transactions or by other
means, including through the use of trading plans intended to
qualify under Rule 10b5-1 under the Securities Exchange Act of
1934, as amended, in accordance with applicable securities laws and
other restrictions, including Rule 10b-18. The timing, value and
number of shares repurchased will be determined by the Company in
its discretion and will be based on various factors, including an
evaluation of current and future capital needs, current and
forecasted cash flows, the Company’s capital structure, cost of
capital and prevailing stock prices, general market and economic
conditions, applicable legal requirements, and compliance with
covenants in the Company’s credit facility that may limit share
repurchases based on defined leverage ratios. The Repurchase
Program does not obligate the Company to purchase a specific number
of, or any, shares. The Repurchase Program does not expire
and may be modified, suspended or terminated at any time without
notice at the Company’s discretion.
Key Operating Metrics and Non-GAAP Financial
Measures
Flywire uses non-GAAP financial measures to supplement financial
information presented on a GAAP basis. The Company believes that
excluding certain items from its GAAP results allows management to
better understand its consolidated financial performance from
period to period and better project its future consolidated
financial performance as forecasts are developed at a level of
detail different from that used to prepare GAAP-based financial
measures. Moreover, Flywire believes these non-GAAP financial
measures provide its stakeholders with useful information to help
them evaluate the Company’s operating results by facilitating an
enhanced understanding of the Company’s operating performance and
enabling them to make more meaningful period to period comparisons.
There are limitations to the use of the non-GAAP financial measures
presented here. Flywire’s non-GAAP financial measures may not be
comparable to similarly titled measures of other companies. Other
companies, including companies in Flywire’s industry, may calculate
non-GAAP financial measures differently, limiting the usefulness of
those measures for comparative purposes.
Flywire uses supplemental measures of its performance which are
derived from its consolidated financial information, but which are
not presented in its consolidated financial statements prepared in
accordance with GAAP. These non-GAAP financial measures include the
following:
- Revenue Less Ancillary Services. Revenue Less Ancillary
Services represents the Company’s consolidated revenue in
accordance with GAAP after excluding (i) pass-through cost for
printing and mailing services and (ii) marketing fees. The Company
excludes these amounts to arrive at this supplemental non-GAAP
financial measure as it views these services as ancillary to the
primary services it provides to its clients.
- Adjusted Gross Profit and Adjusted Gross Margin. Adjusted
gross profit represents Revenue Less Ancillary Services less cost
of revenue adjusted to (i) exclude pass-through cost for printing
services, (ii) offset marketing fees against costs incurred and
(iii) exclude depreciation and amortization, including accelerated
amortization on the impairment of customer set-up costs tied to
technology integration. Adjusted Gross Margin represents Adjusted
Gross Profit divided by Revenue Less Ancillary Services.
Management believes this presentation supplements the GAAP
presentation of Gross Margin with a useful measure of the gross
margin of the Company’s payment-related services, which are the
primary services it provides to its clients.
- Adjusted EBITDA. Adjusted EBITDA represents EBITDA
further adjusted by excluding (i) stock-based compensation expense
and related payroll taxes, (ii) the impact from the change in fair
value measurement for contingent consideration associated with
acquisitions,(iii) gain (loss) from the remeasurement of foreign
currency, (iv) indirect taxes related to intercompany activity, (v)
acquisition related transaction costs, and (vi) employee retention
costs, such as incentive compensation, associated with acquisition
activities. Management believes that the exclusion of these amounts
to calculate Adjusted EBITDA provides useful measures for
period-to-period comparisons of the Company’s business. We
calculate adjusted EBITDA margin by dividing adjusted EBITDA by
Revenue Less Ancillary Services.
- Revenue Less Ancillary Services at Constant Currency.
Revenue Less Ancillary Services at Constant Currency represents
Revenue Less Ancillary Services adjusted to show presentation on a
constant currency basis. The constant currency information
presented is calculated by translating current period results using
prior period weighted average foreign currency exchange
rates. Flywire analyzes Revenue Less Ancillary Services
on a constant currency basis to provide a comparable framework for
assessing how the business performed excluding the effect of
foreign currency fluctuations.
- Non-GAAP Operating Expenses - Non-GAAP Operating Expenses
represents GAAP Operating Expenses adjusted by excluding (i)
stock-based compensation expense and related payroll taxes, (ii)
depreciation and amortization, (iii) acquisition related
transaction costs, if applicable, (iv) employee retention costs,
such as incentive compensation, associated with acquisition
activities and (v) the impact from the change in fair value
measurement for contingent consideration associated with
acquisitions.
These non-GAAP financial measures are not meant to be considered
as indicators of performance in isolation from or as a substitute
for the Company’s revenue, gross profit, gross margin or net income
(loss), or operating expenses prepared in accordance with GAAP and
should be read only in conjunction with financial information
presented on a GAAP basis. Reconciliations of Revenue Less
Ancillary Services, Revenue Less Ancillary Services at Constant
Currency, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted
EBITDA and non-GAAP Operating Expenses to the most directly
comparable GAAP financial measure are presented below. Flywire
encourages you to review these reconciliations in conjunction with
the presentation of the non-GAAP financial measures for each of the
periods presented. In future fiscal periods, Flywire may exclude
such items and may incur income and expenses similar to these
excluded items. Flywire has not provided a quantitative
reconciliation of forecasted Adjusted EBITDA Margin growth to
forecasted GAAP Net Income growth within this earnings release
because it is unable, without making unreasonable efforts, to
calculate certain reconciling items with confidence. These items
include but are not limited to income taxes which are directly
impacted by unpredictable fluctuations in the market price of
Flywire's stock and in foreign exchange rates. For figures in
this press release reported on an "FX-Neutral basis,” Flywire
calculates the year-over-year impact of foreign currency movements
using prior period weighted average foreign currency rates.
About Flywire
Flywire is a global payments enablement and software company. We
combine our proprietary global payments network, next-gen payments
platform and vertical-specific software to deliver the most
important and complex payments for our clients and their
customers.
Flywire leverages its vertical-specific software and payments
technology to deeply embed within the existing A/R workflows for
its clients across the education, healthcare and travel vertical
markets, as well as in key B2B industries. Flywire also integrates
with leading ERP systems, such as NetSuite, so organizations can
optimize the payment experience for their customers while
eliminating operational challenges.
Flywire supports approximately 4,500** clients with diverse
payment methods in more than 140 currencies across 240 countries
and territories around the world. Flywire is headquartered in
Boston, MA, USA with global offices. For more information, visit
www.flywire.com. Follow Flywire on X (formerly known as Twitter),
LinkedIn and Facebook.
**Excludes clients from Flywire’s Invoiced and Sertifi
acquisitions
Safe Harbor Statement
This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including, but not limited to, statements regarding Flywire’s
future operating results and financial position, Flywire’s business
strategy and plans, market growth, and Flywire’s objectives for
future operations. Flywire intends such forward-looking statements
to be covered by the safe harbor provisions for forward-looking
statements contained in Section 21E of the Securities Exchange Act
of 1934 and the Private Securities Litigation Reform Act of 1995.
In some cases, you can identify forward-looking statements by terms
such as, but not limited to, “believe,” “may,” “will,”
“potentially,” “estimate,” “continue,” “anticipate,” “intend,”
“could,” “would,” “project,” “target,” “plan,” “expect,” or the
negative of these terms, and similar expressions intended to
identify forward-looking statements. Such forward-looking
statements are based upon current expectations that involve risks,
changes in circumstances, assumptions, and uncertainties. Important
factors that could cause actual results to differ materially from
those reflected in Flywire's forward-looking statements include,
among others, Flywire’s future financial performance, including its
expectations regarding FX-Neutral GAAP Revenue Growth, FX-Neutral
Revenue Less Ancillary Services Growth, and Adjusted EBITDA Margin
Growth and foreign exchange rates. Risks that may cause
actual results to differ materially from these forward looking
statements include, but are not limited to: Flywire’s ability
to execute its business plan and effectively manage its growth;
Flywire’s cross-border expansion plans and ability to expand
internationally; anticipated trends, growth rates, and challenges
in Flywire’s business and in the markets in which Flywire operates;
the sufficiency of Flywire’s cash and cash equivalents to
meet its liquidity needs; political, economic, foreign
currency exchange rate, inflation, legal, social and health risks,
that may affect Flywire’s business or the global economy; Flywire’s
beliefs and objectives for future operations; Flywire’s ability to
develop and protect its brand; Flywire’s ability to maintain and
grow the payment volume that it processes; Flywire’s ability to
further attract, retain, and expand its client base; Flywire’s
ability to develop new solutions and services and bring them to
market in a timely manner; Flywire’s expectations concerning
relationships with third parties, including financial institutions
and strategic partners; the effects of increased competition in
Flywire’s markets and its ability to compete effectively; recent
and future acquisitions or investments in complementary companies,
products, services, or technologies; Flywire’s ability to enter new
client verticals, including its relatively new
business-to-business sector; Flywire’s expectations regarding
anticipated technology needs and developments and its ability to
address those needs and developments with its solutions; Flywire’s
expectations regarding its ability to meet existing performance
obligations and maintain the operability of its solutions;
Flywire’s expectations regarding the effects of existing and
developing laws and regulations, including with respect to payments
and financial services, taxation, privacy and data protection;
economic and industry trends, projected growth, or trend analysis;
the effects of global events and geopolitical conflicts, including
without limitation the continuing hostilities in Ukraine and
involving Israel; Flywire’s ability to adapt to changes in
U.S. federal income or other tax laws or the interpretation of tax
laws, including the Inflation Reduction Act of 2022;
Flywire’s ability to attract and retain qualified employees;
Flywire’s ability to maintain, protect, and enhance its
intellectual property; Flywire’s ability to maintain the security
and availability of its solutions; the increased expenses
associated with being a public company; the future market price of
Flywire’s common stock; and other factors that are described in the
"Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" sections of
Flywire's Annual Report on Form 10-K for the year ended December
31, 2023, and Quarterly Report on Form 10-Q for the quarter ended
September 30, 2024, which are on file with the Securities and
Exchange Commission (SEC) and available on the SEC's website at
https://www.sec.gov/. Additional factors may be described in those
sections of Flywire’s Annual Report on Form 10-K for the year ended
December 31, 2024, expected to be filed in the first quarter of
2025. The information in this release is provided only as of the
date of this release, and Flywire undertakes no obligation to
update any forward-looking statements contained in this release on
account of new information, future events, or otherwise, except as
required by law.
Contacts
Investor Relations:Masha
Kahnir@Flywire.com
Media:Sarah
KingMedia@Flywire.com
|
Condensed Consolidated Statements of Operations and
Comprehensive Loss |
|
(Unaudited) (Amounts in thousands, except share and per
share amounts) |
| |
|
|
|
|
|
|
|
| |
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Revenue |
$ |
117,550 |
|
|
$ |
100,545 |
|
|
$ |
492,144 |
|
|
$ |
403,094 |
|
| Costs
and operating expenses: |
|
|
|
|
|
|
|
| Payment
processing services costs |
|
41,384 |
|
|
|
36,780 |
|
|
|
177,490 |
|
|
|
147,339 |
|
|
Technology and development |
|
17,370 |
|
|
|
16,898 |
|
|
|
66,636 |
|
|
|
62,028 |
|
| Selling
and marketing |
|
33,353 |
|
|
|
28,830 |
|
|
|
129,435 |
|
|
|
107,621 |
|
| General
and administrative |
|
31,218 |
|
|
|
28,065 |
|
|
|
125,838 |
|
|
|
107,624 |
|
| Total
costs and operating expenses |
|
123,325 |
|
|
|
110,573 |
|
|
|
499,399 |
|
|
|
424,612 |
|
| Loss
from operations |
$ |
(5,775 |
) |
|
$ |
(10,028 |
) |
|
$ |
(7,255 |
) |
|
$ |
(21,518 |
) |
| Other
income (expense): |
|
|
|
|
|
|
|
| Interest
expense |
|
(135 |
) |
|
|
(92 |
) |
|
|
(538 |
) |
|
|
(372 |
) |
| Interest
income |
|
4,872 |
|
|
|
5,638 |
|
|
|
21,440 |
|
|
|
13,349 |
|
| Gain
(loss) from remeasurement of foreign currency |
|
(13,866 |
) |
|
|
7,707 |
|
|
|
(11,787 |
) |
|
|
4,189 |
|
| Total
other income (expense), net |
|
(9,129 |
) |
|
|
13,253 |
|
|
|
9,115 |
|
|
|
17,166 |
|
| Income
(loss) before provision for income taxes |
|
(14,904 |
) |
|
|
3,225 |
|
|
|
1,860 |
|
|
|
(4,352 |
) |
|
Provision (benefit) for income taxes |
|
995 |
|
|
|
1,938 |
|
|
|
(1,040 |
) |
|
|
4,214 |
|
| Net
Income (Loss) |
$ |
(15,899 |
) |
|
$ |
1,287 |
|
|
$ |
2,900 |
|
|
$ |
(8,566 |
) |
| Foreign
currency translation adjustment |
|
(7,330 |
) |
|
|
3,731 |
|
|
|
(3,594 |
) |
|
|
3,232 |
|
|
Unrealized losses on available-for-sale debt securities, net |
$ |
(441 |
) |
|
$ |
— |
|
|
$ |
208 |
|
|
$ |
— |
|
| Total
other comprehensive income (loss) |
$ |
(7,771 |
) |
|
$ |
3,731 |
|
|
$ |
(3,386 |
) |
|
$ |
3,232 |
|
|
Comprehensive income (loss) |
$ |
(23,670 |
) |
|
$ |
5,018 |
|
|
$ |
(486 |
) |
|
$ |
(5,334 |
) |
| Net loss
attributable to common stockholders - basic and diluted |
$ |
(15,899 |
) |
|
$ |
1,287 |
|
|
$ |
2,900 |
|
|
$ |
(8,566 |
) |
| Net loss
per share attributable to common stockholders - basic |
$ |
(0.13 |
) |
|
$ |
0.01 |
|
|
$ |
0.02 |
|
|
$ |
(0.07 |
) |
| Net loss
per share attributable to common stockholders - diluted |
$ |
(0.12 |
) |
|
$ |
0.01 |
|
|
$ |
0.02 |
|
|
$ |
(0.07 |
) |
| Weighted
average common shares outstanding - basic |
|
124,463,252 |
|
|
|
121,690,938 |
|
|
|
124,269,820 |
|
|
|
114,828,494 |
|
| Weighted
average common shares outstanding - diluted |
|
128,924,166 |
|
|
|
128,877,877 |
|
|
|
129,339,462 |
|
|
|
114,828,494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheets |
|
(Unaudited) (Amounts in thousands, except share
amounts) |
| |
|
|
|
|
|
December 31, |
|
December 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
Assets |
|
|
|
| Current
assets: |
|
|
|
| Cash and
cash equivalents |
$ |
495,242 |
|
|
$ |
654,608 |
|
|
Restricted cash |
|
— |
|
|
|
— |
|
|
Short-term investments |
|
115,848 |
|
|
|
— |
|
| Accounts
receivable, net |
|
23,703 |
|
|
|
18,215 |
|
| Unbilled
receivables, net |
|
15,453 |
|
|
|
10,689 |
|
| Funds
receivable from payment partners |
|
90,110 |
|
|
|
113,945 |
|
| Prepaid
expenses and other current assets |
|
22,528 |
|
|
|
18,227 |
|
| Total
current assets |
|
762,884 |
|
|
|
815,684 |
|
|
Long-term investments |
|
50,125 |
|
|
|
— |
|
| Property
and equipment, net |
|
17,160 |
|
|
|
15,134 |
|
|
Intangible assets, net |
|
118,684 |
|
|
|
108,178 |
|
|
Goodwill |
|
149,558 |
|
|
|
121,646 |
|
| Other
assets |
|
24,035 |
|
|
|
19,089 |
|
| Total
assets |
$ |
1,122,446 |
|
|
$ |
1,079,731 |
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
| Current
liabilities: |
|
|
|
| Accounts
payable |
$ |
15,353 |
|
|
$ |
12,587 |
|
| Funds
payable to clients |
|
217,788 |
|
|
|
210,922 |
|
| Accrued
expenses and other current liabilities |
|
49,297 |
|
|
|
43,315 |
|
| Deferred
revenue |
|
7,337 |
|
|
|
6,968 |
|
| Total
current liabilities |
|
289,775 |
|
|
|
273,792 |
|
| Deferred
tax liabilities |
|
12,643 |
|
|
|
15,391 |
|
| Other
liabilities |
|
5,261 |
|
|
|
4,431 |
|
| Total
liabilities |
|
307,679 |
|
|
|
293,614 |
|
|
Commitments and contingencies (Note 16) |
|
|
|
|
Stockholders’ equity: |
|
|
|
|
Preferred stock, $0.0001 par value; 10,000,000 shares authorized as
of December 31, 2024 and 2023; and no shares issued and
outstanding as of December 31, 2024 and 2023 |
|
— |
|
|
|
— |
|
| Voting
common stock, $0.0001 par value; 2,000,000,000 shares authorized
as of December 31, 2024 and December 31, 2023; 126,853,852
shares issued and 122,182,878 shares outstanding as of
December 31, 2024; 123,010,207 shares issued and 120,695,162
shares outstanding as of December 31, 2023 |
|
13 |
|
|
|
11 |
|
|
Non-voting common stock, $0.0001 par value; 10,000,000 shares
authorized as of December 31, 2024 and December 31, 2023;
1,873,320 shares issued and outstanding as of December 31,
2024 and December 31, 2023 |
|
— |
|
|
|
1 |
|
| Treasury
voting common stock, 4,670,974 and 2,315,045 shares as of
December 31, 2024 and December 31, 2023, respectively, held at
cost |
|
(46,268 |
) |
|
|
(747 |
) |
|
Additional paid-in capital |
|
1,033,958 |
|
|
|
959,302 |
|
|
Accumulated other comprehensive income |
|
(2,066 |
) |
|
|
1,320 |
|
|
Accumulated deficit |
|
(170,870 |
) |
|
|
(173,770 |
) |
| Total
stockholders’ equity |
|
814,767 |
|
|
|
786,117 |
|
| Total
liabilities and stockholders’ equity |
$ |
1,122,446 |
|
|
$ |
1,079,731 |
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statement of Cash
Flows |
|
(Unaudited) (Amounts in thousands) |
| |
|
|
|
| |
Twelve Months Ended December 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
Cash flows from operating activities: |
|
|
|
| Net
income (loss) |
$ |
2,900 |
|
|
$ |
(8,566 |
) |
|
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
Depreciation and amortization |
|
17,363 |
|
|
|
15,764 |
|
|
Stock-based compensation expense |
|
64,933 |
|
|
|
43,726 |
|
|
Amortization of deferred contract costs |
|
972 |
|
|
|
1,789 |
|
| Change
in fair value of contingent consideration |
|
(978 |
) |
|
|
380 |
|
| Deferred
tax provision (benefit) |
|
(8,794 |
) |
|
|
72 |
|
|
Provision for uncollectible accounts |
|
(83 |
) |
|
|
326 |
|
| Non-cash
interest expense |
|
230 |
|
|
|
298 |
|
| Non-cash
interest income |
|
(1,435 |
) |
|
|
— |
|
| Changes
in operating assets and liabilities, net of acquisitions: |
|
|
|
| Accounts
receivable |
|
(5,292 |
) |
|
|
(2,082 |
) |
| Unbilled
receivables |
|
(4,764 |
) |
|
|
(5,394 |
) |
| Funds
receivable from payment partners |
|
23,835 |
|
|
|
(50,975 |
) |
| Prepaid
expenses, other current assets and other assets |
|
(5,322 |
) |
|
|
(4,279 |
) |
| Funds
payable to clients |
|
6,867 |
|
|
|
86,616 |
|
| Accounts
payable, accrued expenses and other current liabilities |
|
3,302 |
|
|
|
5,548 |
|
|
Contingent consideration |
|
(93 |
) |
|
|
(467 |
) |
| Other
liabilities |
|
(1,543 |
) |
|
|
(1,260 |
) |
| Deferred
revenue |
|
(630 |
) |
|
|
(871 |
) |
| Net cash
provided by operating activities |
|
91,468 |
|
|
|
80,625 |
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
Acquisition of businesses, net of cash acquired |
|
(45,230 |
) |
|
|
(32,764 |
) |
| Purchase
of debt securities |
|
(193,927 |
) |
|
|
— |
|
| Sale of
debt securities |
|
29,598 |
|
|
|
— |
|
|
Capitalization of internally developed software |
|
(5,317 |
) |
|
|
(5,004 |
) |
|
Purchases of property and equipment |
|
(924 |
) |
|
|
(1,009 |
) |
| Net cash
(used in) investing activities |
|
(215,800 |
) |
|
|
(38,777 |
) |
|
Cash flows from financing activities: |
|
|
|
| Proceeds
from issuance of common stock under public offering, net of
underwriter discounts and commissions |
|
— |
|
|
|
261,119 |
|
| Payments
of costs related to public offering |
|
— |
|
|
|
(1,062 |
) |
| Payment
of debt issuance costs |
|
(783 |
) |
|
|
— |
|
|
Contingent consideration paid for acquisitions |
|
(1,032 |
) |
|
|
(1,207 |
) |
| Payments
of tax withholdings for net settled equity awards |
|
(797 |
) |
|
|
(8,483 |
) |
|
Purchases of treasury stock |
|
(43,740 |
) |
|
|
— |
|
| Proceeds
from the issuance of stock under Employee Stock Purchase Plan |
|
3,108 |
|
|
|
2,691 |
|
| Proceeds
from exercise of stock options |
|
5,613 |
|
|
|
10,360 |
|
| Net cash
provided by (used in) financing activities |
|
(37,631 |
) |
|
|
263,418 |
|
| Effect
of exchange rates changes on cash and cash equivalents |
|
2,597 |
|
|
|
(1,835 |
) |
|
Net increase (decrease) in cash, cash equivalents and
restricted cash |
|
(159,366 |
) |
|
|
303,431 |
|
|
Cash, cash equivalents and restricted cash, beginning of
year |
$ |
654,608 |
|
|
$ |
351,177 |
|
|
Cash, cash equivalents and restricted cash, end of
year |
$ |
495,242 |
|
|
$ |
654,608 |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures |
|
(Unaudited) (Amounts in millions, except
percentages) |
| |
|
|
|
|
|
|
|
|
| |
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Revenue |
|
$ |
117.6 |
|
|
$ |
100.5 |
|
|
$ |
492.1 |
|
|
$ |
403.1 |
|
| Adjusted
to exclude gross up for: |
|
|
|
|
|
|
|
|
|
Pass-through cost for printing and mailing |
|
|
(4.5 |
) |
|
|
(4.0 |
) |
|
|
(15.9 |
) |
|
|
(19.4 |
) |
|
Marketing fees |
|
|
(0.3 |
) |
|
|
(0.4 |
) |
|
|
(2.0 |
) |
|
|
(2.2 |
) |
| Revenue
Less Ancillary Services |
|
$ |
112.8 |
|
|
$ |
96.1 |
|
|
$ |
474.2 |
|
|
$ |
381.5 |
|
| Payment
processing services costs |
|
|
41.4 |
|
|
|
36.8 |
|
|
|
177.5 |
|
|
|
147.3 |
|
| Hosting
and amortization costs within technology and development
expenses |
|
|
1.9 |
|
|
|
1.9 |
|
|
|
7.7 |
|
|
|
8.4 |
|
| Cost of
Revenue |
|
$ |
43.3 |
|
|
$ |
38.7 |
|
|
$ |
185.2 |
|
|
$ |
155.7 |
|
| Adjusted
to: |
|
|
|
|
|
|
|
|
| Exclude
printing and mailing costs |
|
|
(4.5 |
) |
|
|
(4.0 |
) |
|
|
(15.9 |
) |
|
|
(19.4 |
) |
| Offset
marketing fees against related costs |
|
|
(0.3 |
) |
|
|
(0.4 |
) |
|
|
(2.0 |
) |
|
|
(2.2 |
) |
| Exclude
depreciation and amortization |
|
|
(1.3 |
) |
|
|
(1.7 |
) |
|
|
(5.9 |
) |
|
|
(6.7 |
) |
| Adjusted
Cost of Revenue |
|
$ |
37.2 |
|
|
$ |
32.6 |
|
|
$ |
161.4 |
|
|
$ |
127.4 |
|
| Gross
Profit |
|
$ |
74.3 |
|
|
$ |
61.8 |
|
|
$ |
306.9 |
|
|
$ |
247.4 |
|
| Gross
Margin |
|
|
63.2 |
% |
|
|
61.5 |
% |
|
|
62.4 |
% |
|
|
61.4 |
% |
| Adjusted
Gross Profit |
|
$ |
75.6 |
|
|
$ |
63.5 |
|
|
$ |
312.8 |
|
|
$ |
254.1 |
|
| Adjusted
Gross Margin |
|
|
67.0 |
% |
|
|
66.1 |
% |
|
|
66.0 |
% |
|
|
66.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended December 31, 2024 |
|
Twelve Months Ended December 31, 2024 |
| |
|
Transaction |
|
Platform and Other Revenues |
|
Revenue |
|
Transaction |
|
Platform and Other Revenues |
|
Revenue |
|
Revenue |
|
$ |
95.3 |
|
|
$ |
22.3 |
|
|
$ |
117.6 |
|
|
$ |
410.2 |
|
|
$ |
81.9 |
|
|
$ |
492.1 |
|
| Adjusted
to exclude gross up for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass-through cost for printing and mailing |
|
|
— |
|
|
|
(4.5 |
) |
|
|
(4.5 |
) |
|
|
— |
|
|
|
(15.9 |
) |
|
|
(15.9 |
) |
|
Marketing fees |
|
|
(0.3 |
) |
|
|
— |
|
|
|
(0.3 |
) |
|
|
(2.0 |
) |
|
|
— |
|
|
|
(2.0 |
) |
| Revenue
Less Ancillary Services |
|
$ |
95.0 |
|
|
$ |
17.8 |
|
|
$ |
112.8 |
|
|
$ |
408.2 |
|
|
$ |
66.0 |
|
|
$ |
474.2 |
|
|
Percentage of Revenue |
|
|
81.0 |
% |
|
|
19.0 |
% |
|
|
100.0 |
% |
|
|
83.4 |
% |
|
|
16.6 |
% |
|
|
100.0 |
% |
|
Percentage of Revenue Less Ancillary Services |
|
|
84.2 |
% |
|
|
15.8 |
% |
|
|
100.0 |
% |
|
|
86.1 |
% |
|
|
13.9 |
% |
|
|
100.0 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended December 31, 2023 |
|
Twelve Months Ended December 31, 2023 |
| |
|
Transaction |
|
Platform and Other Revenues |
|
Revenue |
|
Transaction |
|
Platform and Other Revenues |
|
Revenue |
|
Revenue |
|
$ |
81.9 |
|
|
$ |
18.6 |
|
|
$ |
100.5 |
|
|
$ |
329.7 |
|
|
$ |
73.4 |
|
|
$ |
403.1 |
|
| Adjusted
to exclude gross up for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass-through cost for printing and mailing |
|
|
— |
|
|
|
(4.0 |
) |
|
|
(4.0 |
) |
|
|
— |
|
|
|
(19.4 |
) |
|
|
(19.4 |
) |
|
Marketing fees |
|
|
(0.4 |
) |
|
|
— |
|
|
|
(0.4 |
) |
|
|
(2.2 |
) |
|
|
— |
|
|
|
(2.2 |
) |
| Revenue
Less Ancillary Services |
|
$ |
81.5 |
|
|
$ |
14.6 |
|
|
$ |
96.1 |
|
|
$ |
327.5 |
|
|
$ |
54.0 |
|
|
$ |
381.5 |
|
|
Percentage of Revenue |
|
|
81.5 |
% |
|
|
18.5 |
% |
|
|
100.0 |
% |
|
|
81.8 |
% |
|
|
18.2 |
% |
|
|
100.0 |
% |
|
Percentage of Revenue Less Ancillary Services |
|
|
84.8 |
% |
|
|
15.2 |
% |
|
|
100.0 |
% |
|
|
85.8 |
% |
|
|
14.2 |
% |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FX Neutral
Revenue Less Ancillary Services |
|
|
|
|
|
|
|
|
|
|
|
| (unaudited) (in
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended December 31, |
|
|
|
Twelve Months Ended December 31, |
|
|
|
|
|
|
2024 |
|
|
|
2023 |
|
|
Growth Rate |
|
|
2024 |
|
|
|
2023 |
|
|
Growth Rate |
|
Revenue |
|
$ |
117.6 |
|
|
$ |
100.5 |
|
|
|
17 |
% |
|
$ |
492.1 |
|
|
$ |
403.1 |
|
|
|
22 |
% |
|
Ancillary services |
|
|
(4.8 |
) |
|
|
(4.4 |
) |
|
|
|
|
(17.9 |
) |
|
|
(21.6 |
) |
|
|
| Revenue
Less Ancillary Services |
|
|
112.8 |
|
|
|
96.1 |
|
|
|
17 |
% |
|
|
474.2 |
|
|
|
381.5 |
|
|
|
24 |
% |
| Effects
of foreign currency rate fluctuations |
|
|
(1.1 |
) |
|
|
— |
|
|
|
|
|
(2.3 |
) |
|
|
— |
|
|
|
| FX
Neutral Revenue Less Ancillary Services |
|
$ |
111.7 |
|
|
$ |
96.1 |
|
|
|
16 |
% |
|
$ |
471.9 |
|
|
$ |
381.5 |
|
|
|
24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA and Adjusted
EBITDA |
|
|
|
|
|
|
|
|
| (Unaudited) (in
millions) |
|
|
|
|
|
|
|
|
| |
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Net
loss |
|
$ |
(15.9 |
) |
|
$ |
1.3 |
|
|
$ |
2.9 |
|
|
$ |
(8.6 |
) |
| Interest
expense |
|
|
0.1 |
|
|
|
0.1 |
|
|
|
0.5 |
|
|
|
0.4 |
|
| Interest
income |
|
|
(4.8 |
) |
|
|
(5.6 |
) |
|
|
(21.4 |
) |
|
|
(13.3 |
) |
|
Provision for income taxes |
|
|
1.0 |
|
|
|
1.9 |
|
|
|
(1.0 |
) |
|
|
4.2 |
|
|
Depreciation and amortization |
|
|
5.0 |
|
|
|
4.3 |
|
|
|
18.5 |
|
|
|
16.4 |
|
|
EBITDA |
|
|
(14.6 |
) |
|
|
2.0 |
|
|
|
(0.5 |
) |
|
|
(0.9 |
) |
|
Stock-based compensation expense and related taxes |
|
|
16.8 |
|
|
|
12.9 |
|
|
|
65.8 |
|
|
|
45.2 |
|
| Change
in fair value of contingent consideration |
|
|
0.0 |
|
|
|
— |
|
|
|
(1.0 |
) |
|
|
0.4 |
|
| (Gain)
loss from remeasurement of foreign currency |
|
|
13.9 |
|
|
|
(7.7 |
) |
|
|
11.8 |
|
|
|
(4.2 |
) |
| Indirect
taxes related to intercompany activity |
|
|
0.5 |
|
|
|
— |
|
|
|
0.7 |
|
|
|
0.2 |
|
|
Acquisition related transaction costs |
|
|
0.1 |
|
|
|
0.4 |
|
|
|
0.6 |
|
|
|
0.4 |
|
|
Acquisition related employee retention costs |
|
|
— |
|
|
|
0.1 |
|
|
|
0.5 |
|
|
|
0.9 |
|
| Adjusted
EBITDA |
|
$ |
16.7 |
|
|
$ |
7.7 |
|
|
$ |
77.9 |
|
|
$ |
42.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Operating Expenses |
|
|
|
|
|
|
|
(Unaudited) (in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
(in millions) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
GAAP Technology and development |
|
$ |
17.4 |
|
|
$ |
16.9 |
|
|
$ |
66.6 |
|
|
$ |
62.0 |
|
|
(-) Stock-based compensation expense and related taxes |
|
|
(3.1 |
) |
|
|
(2.5 |
) |
|
|
(11.8 |
) |
|
|
(9.2 |
) |
|
(-) Depreciation and amortization |
|
|
(2.1 |
) |
|
|
(2.3 |
) |
|
|
(7.4 |
) |
|
|
(8.4 |
) |
|
(-) Acquisition related employee retention costs |
|
|
— |
|
|
|
0.3 |
|
|
|
— |
|
|
|
(0.5 |
) |
| Non-GAAP Technology and
development |
|
$ |
12.2 |
|
|
$ |
12.4 |
|
|
$ |
47.4 |
|
|
$ |
43.9 |
|
| |
|
|
|
|
|
|
|
| GAAP Selling and
marketing |
|
$ |
33.4 |
|
|
$ |
28.8 |
|
|
$ |
129.5 |
|
|
$ |
107.6 |
|
|
(-) Stock-based compensation expense and related taxes |
|
|
(4.8 |
) |
|
|
(3.2 |
) |
|
|
(18.3 |
) |
|
|
(12.4 |
) |
|
(-) Depreciation and amortization |
|
|
(2.2 |
) |
|
|
(1.3 |
) |
|
|
(8.2 |
) |
|
|
(5.2 |
) |
|
(-) Acquisition related employee retention costs |
|
|
— |
|
|
|
(0.2 |
) |
|
|
(0.5 |
) |
|
|
(0.4 |
) |
| Non-GAAP Selling and
marketing |
|
$ |
26.4 |
|
|
$ |
24.1 |
|
|
$ |
102.5 |
|
|
$ |
89.6 |
|
| |
|
|
|
|
|
|
|
| GAAP General and
administrative |
|
$ |
31.2 |
|
|
$ |
28.0 |
|
|
$ |
125.8 |
|
|
$ |
107.6 |
|
|
(-) Stock-based compensation expense and related taxes |
|
|
(8.9 |
) |
|
|
(7.2 |
) |
|
|
(35.7 |
) |
|
|
(23.6 |
) |
|
(-) Depreciation and amortization |
|
|
(0.8 |
) |
|
|
(0.7 |
) |
|
|
(3.0 |
) |
|
|
(2.8 |
) |
|
(-) Change in fair value of contingent consideration |
|
|
— |
|
|
|
— |
|
|
|
1.0 |
|
|
|
(0.4 |
) |
|
(-) Acquisition related transaction costs |
|
|
(0.1 |
) |
|
|
(0.4 |
) |
|
|
(0.6 |
) |
|
|
(0.4 |
) |
| Non-GAAP General and
administrative |
|
$ |
21.4 |
|
|
$ |
19.7 |
|
|
$ |
87.5 |
|
|
$ |
80.4 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net
Margin, EBITDA Margin and Adjusted EBITDA Margin |
|
(Unaudited) (Amounts in millions, except
percentages) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended December 31, |
|
|
|
Twelve Months Ended December 31, |
|
|
|
|
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
Revenue (A) |
|
$ |
117.6 |
|
|
$ |
100.5 |
|
|
$ |
17.1 |
|
|
$ |
492.1 |
|
|
$ |
403.1 |
|
|
$ |
89.0 |
|
| Revenue less ancillary
services (B) |
|
|
112.8 |
|
|
|
96.1 |
|
|
|
16.7 |
|
|
|
474.2 |
|
|
|
381.5 |
|
|
|
92.7 |
|
| Net loss
(C) |
|
|
(15.9 |
) |
|
|
1.3 |
|
|
|
(17.2 |
) |
|
|
2.9 |
|
|
|
(8.6 |
) |
|
|
11.5 |
|
| EBITDA (D) |
|
|
(14.6 |
) |
|
|
2.0 |
|
|
|
(16.6 |
) |
|
|
(0.5 |
) |
|
|
(0.9 |
) |
|
|
0.4 |
|
| Adjusted
EBITDA (E) |
|
|
16.7 |
|
|
|
7.7 |
|
|
|
9.0 |
|
|
|
77.9 |
|
|
|
42.0 |
|
|
|
35.9 |
|
| Net margin (C/A) |
|
|
-13.5 |
% |
|
|
1.3 |
% |
|
|
-14.8 |
% |
|
|
0.6 |
% |
|
|
-2.1 |
% |
|
|
2.7 |
% |
| Net margin using RLAS
(C/B) |
|
|
-14.1 |
% |
|
|
1.3 |
% |
|
|
-15.4 |
% |
|
|
0.6 |
% |
|
|
-2.3 |
% |
|
|
2.9 |
% |
| EBITDA Margin (D/A) |
|
|
-12.4 |
% |
|
|
2.0 |
% |
|
|
-14.4 |
% |
|
|
-0.1 |
% |
|
|
-0.2 |
% |
|
|
0.1 |
% |
| Adjusted EBITDA Margin
(E/A) |
|
|
14.2 |
% |
|
|
7.6 |
% |
|
|
6.6 |
% |
|
|
15.8 |
% |
|
|
10.4 |
% |
|
|
5.4 |
% |
| EBITDA Margin using RLAS
(D/B) |
|
|
-12.9 |
% |
|
|
2.1 |
% |
|
|
-15.0 |
% |
|
|
-0.1 |
% |
|
|
-0.2 |
% |
|
|
0.1 |
% |
| Adjusted EBITDA Margin using
RLAS (E/B) |
|
|
14.8 |
% |
|
|
8.0 |
% |
|
|
6.8 |
% |
|
|
16.4 |
% |
|
|
11.0 |
% |
|
|
5.4 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of FX Neutral Revenue Growth Guidance toFX
Neutral Revenue Less Ancillary Services Growth
Guidance |
| |
|
|
|
|
|
|
|
| |
Three Months Ended March 31, 2025 |
|
Year Ended December 31, 2025 |
| |
Low |
|
High |
|
Low |
|
High |
| |
|
|
|
|
|
|
|
|
FX Neutral GAAP Revenue Growth |
|
10 |
% |
|
|
13 |
% |
|
|
9 |
% |
|
|
13 |
% |
| |
|
|
|
|
|
|
|
|
Adjustment for Ancillary Services |
|
1 |
% |
|
|
1 |
% |
|
|
1 |
% |
|
|
1 |
% |
| |
|
|
|
|
|
|
|
| FX
Neutral Revenue Less Ancillary Services Growth |
|
11 |
% |
|
|
14 |
% |
|
|
10 |
% |
|
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flywire (NASDAQ:FLYW)
Historical Stock Chart
From Jan 2025 to Feb 2025
Flywire (NASDAQ:FLYW)
Historical Stock Chart
From Feb 2024 to Feb 2025
