Fourth Quarter Revenue Increased 31%
Year-over-Year Fourth Quarter Gross Profit increased 31% and
Contribution Profit* Increased 36% Year-over-Year Fourth Quarter
Transactions Increased 54% Year-over-Year
Paymentus Holdings, Inc. (“Paymentus”) (NYSE: PAY), a leading
provider of cloud-based bill payment technology solutions, today
announced financial results for its fourth quarter and full year
ended December 31, 2021.
"I'm proud of our performance in our first year as a public
company, but I feel like we're just getting started," said Dushyant
Sharma, Founder and CEO. "2021 laid the foundation for our strong
outlook in 2022, and we believe our core strategy of building a
network and growing market share is paying off."
Business Highlights and Recent
Developments
- Processed 83.3 million transactions in the fourth quarter of
2021, an increase of 53.7% from the fourth quarter of 2020.
- Expanded partnership with Amazon to include bill payment in the
Amazon mobile app.
- Earned biller direct industry best-in-class rating by
Aite-Novarica Group.
"With full year revenue growth of over 31% and another year of
solid profitability, Paymentus continued its history of responsible
growth," said Matt Parson, CFO. "I am also very pleased to provide
an outlook that anticipates us continuing to be a 'Rule of 40'
company in 2022 as well."
Fourth Quarter 2021 Financial
Highlights*
- Revenue was $108.1 million, an increase of 31.2% from the
fourth quarter of 2020.
- Gross profit was $33.7 million compared to $25.8 million for
the fourth quarter of 2020. Adjusted gross profit was $36.1 million
compared to $26.8 million for the fourth quarter of 2020.
- Contribution profit was $45.3 million, compared to $33.2
million for the fourth quarter of 2020, representing an increase of
36.3%.
- Net income was $4.7 million and GAAP earnings per share was
$0.04. Non-GAAP net income was $2.1 million and non-GAAP earnings
per share was $0.02.
- Adjusted EBITDA was $6.3 million, representing a 13.8% adjusted
EBITDA margin compared to $7.5 million, representing a 22.7%
adjusted EBITDA margin, for the fourth quarter of 2020.
Full Year 2021 Financial
Highlights*
- Revenue was $395.5 million, an increase of 31.1% from
2020.
- Gross profit was $121.4 million compared to $92.6 million for
2020. Adjusted gross profit was $127.4 million compared to $96.1
million for 2020.
- Contribution profit was $158.5 million, compared to $120.5
million for 2020, representing an increase of 31.5%.
- Net income was $9.3 million and GAAP earnings per share was
$0.06. Non-GAAP net income was $9.7 million and non-GAAP earnings
per share was $0.09.
- Adjusted EBITDA was $29.5 million, representing an 18.6%
adjusted EBITDA margin compared to $28.5 million, representing a
23.6% adjusted EBITDA margin for 2020.
- Cash and cash equivalents were $168.4 million as of December
31, 2021
* Descriptions of the non-GAAP financial measures contribution
profit, adjusted gross profit, adjusted EBITDA, adjusted EBITDA
margin, non-GAAP net income and non-GAAP net income 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.
2022 Financial Outlook
Paymentus expects revenue for the full year 2022 to be between
$490 million and $495 million or 24% to 26% growth year-over-year.
Contribution profit is anticipated to be between $204 million and
$206 million or 29% and 30% growth year-over-year(1). Adjusted
EBITDA is expected to be between $28 million and $33 million,
resulting in an expected adjusted EBITDA margin of approximately
14% to 16%.
(1) Gross profit is estimated to be approximately 72% of
contribution profit and other cost of revenue is estimated to be
approximately 28% of contribution profit. The decrease in GAAP
gross profit for 2022 is primarily driven by amortization of
acquired intangibles, as such this will not impact adjusted gross
profit.
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 fourth quarter and full year 2021 results and our
outlook for 2022. The live webcast and replay will be available at
the Investor Relations section of Paymentus’ website.
About Paymentus
Paymentus is a leading provider of cloud-based bill payment
technology and solutions for more than 1,700 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 our 2022 financial outlook and our ability
to maintain our status as a Rule of 40' company in 2022.
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; the continued impact of the COVID-19
pandemic 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 Quarterly Report on Form 10-Q for the quarter ended
September 30, 2021 filed with the SEC on November 10, 2021 and our
Annual Report on Form 10-K for the year ended December 31, 2021,
which we expect to file with the SEC in early March 2022. 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, judgements, 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, adjusted EBITDA, adjusted EBITDA margin,
free cash flow, non-GAAP net income and non-GAAP earnings per
share, or EPS. 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.
Adjusted gross profit is defined as gross profit adjusted
for 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,
consisting primarily of professional fees and other indirect
charges associated with our initial public offering.
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 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 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. In particular, we exclude interchange and assessment
fees in the presentation of 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.
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.
CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited)
(In thousands, except share and
per share data)
Three Months Ended December
31,
Year Ended December
31,
2021
2020
2021
2020
Revenue
$
108,131
$
82,422
$
395,524
$
301,767
Cost of revenue
74,390
56,627
274,144
209,140
Gross profit
33,741
25,795
121,380
92,627
Operating expenses
Research and development
9,653
6,540
34,122
24,510
Sales and marketing
14,876
8,596
43,917
31,842
General and administrative
8,901
5,731
32,968
17,847
Total operating expenses
33,430
20,867
111,007
74,199
Income from operations
311
4,928
10,373
18,428
Other income (loss)
Interest (expense) income, net
(10
)
4
(6
)
52
Foreign exchange gain (loss)
7
(7
)
(1
)
(116
)
Income before income taxes
308
4,925
10,366
18,364
Benefit from (provision for) income
taxes
4,357
(1,292
)
(1,066
)
(4,653
)
Net income
$
4,665
$
3,633
$
9,300
$
13,711
Undeclared dividends on Series A preferred
stock
—
(1,352
)
(2,258
)
(5,186
)
Net income attributable to common
stock
$
4,665
$
2,281
$
7,042
$
8,525
Net income per share attributable to
common stock
Basic
$
0.04
$
0.02
$
0.06
$
0.08
Diluted
$
0.04
$
0.02
$
0.06
$
0.08
Weighted-average number of shares used to
compute net income per share attributable to common stock
Basic
120,154,077
103,479,239
112,763,261
103,479,239
Diluted
126,169,616
106,500,475
118,821,925
106,207,883
PAYMENTUS HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share and
per share data)
December 31,
2021
2020
Assets
Current assets
Cash and cash equivalents
$
168,386
$
46,666
Restricted funds held for financial
institutions
33,443
—
Accounts and other receivables, net of
allowance of $102 and $100
43,935
28,034
Income tax receivable
2,488
2,011
Prepaid expenses and other current
assets
8,184
3,117
Total current assets
256,436
79,828
Property and equipment, net of accumulated
depreciation and amortization of $4,791 and $3,760
2,044
1,772
Capitalized internal-use software
development costs, net
30,888
20,963
Intangible assets, net
42,088
296
Goodwill
129,413
13,205
Operating lease right-of-use assets
7,703
8,322
Deferred tax asset
163
270
Other long-term assets
4,207
218
Total assets
$
472,942
$
124,874
Liabilities and Stockholders’
Equity
Current liabilities
Accounts payable
$
24,748
$
16,825
Accrued liabilities
12,491
10,201
Financial institution funds in-transit
33,443
—
Operating lease liabilities
1,456
3,010
Contract liabilities
2,173
612
Income tax payable
122
463
Total current liabilities
74,433
31,111
Deferred tax liability
3,318
3,499
Operating leases, net of current
portion
6,463
5,476
Contract liabilities, net of current
portion
1,713
—
Finance leases and other finance
obligations, net of current portion
883
412
Total liabilities
86,810
40,498
Commitments and contingencies (Note 9)
Stockholders’ equity
Preferred stock, $0.0001 par value per
share, 5,000,000 and zero shares authorized at December 31, 2021
and 2020, respectively, none issued and outstanding at December 31,
2021 and 2020, respectively
—
—
Class A common stock, $0.0001 par value
per share, 883,950,000 and zero shares authorized as of December
31, 2021 and 2020, respectively; 17,251,079 and zero shares issued
and outstanding as of December 31, 2021 and 2020, respectively
1
—
Class B common stock, $0.0001 par value
per share, 111,050,000 and zero shares authorized as of December
31, 2021 and 2020, respectively; 103,388,082 and zero shares issued
and outstanding as of December 31, 2021 and 2020, respectively
11
—
Series A preferred stock, par value $0.01
per share; zero and 50,000 shares authorized as of December 31,
2021 and 2020, respectively; zero and 23,333 shares issued as of
December 31, 2021 and 2020, respectively; zero and 23,013 shares
outstanding as of December 31, 2021 and 2020, respectively
—
—
Common stock, $0.005 par value per share;
zero and 150,000,000 shares authorized as of December 31, 2021 and
2020, respectively; zero and 104,785,651 shares issued as of
December 31, 2021 and 2020, respectively; and zero and 103,479,239
shares outstanding as of December 31, 2021 and 2020,
respectively
—
517
Treasury stock at cost, zero and 320
Series A preferred shares; and zero and 1,306,412 common shares as
of December 31, 2021 and 2020, respectively
—
(579
)
Additional paid-in capital
356,017
29,175
Accumulated other comprehensive income
168
216
Retained earnings
29,935
55,047
Total stockholders’ equity
386,132
84,376
Total liabilities and stockholders'
equity
$
472,942
$
124,874
PAYMENTUS HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS (Unaudited)
(In thousands)
Three Months Ended December
31,
Year Ended December
31,
2021
2020
2021
2020
Cash flows from operating
activities
Net income
$
4,665
$
3,633
$
9,300
$
13,711
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation and amortization
4,708
2,057
13,295
8,069
Deferred income taxes
(3,351
)
320
(660
)
1,638
Stock-based compensation
1,251
546
3,136
1,994
Non-cash lease expense
366
794
2,497
2,802
Amortization of contract asset
246
—
669
—
Provision for credit losses
106
100
106
100
Change in operating assets and
liabilities, net of impact of business combination
Accounts and other receivables
(6,922
)
(1,026
)
(14,736
)
(8,689
)
Prepaid expenses and other current and
long-term assets
1,179
824
1,346
840
Accounts payable
(352
)
969
7,490
14,636
Accrued liabilities
(193
)
632
(44
)
2,759
Operating lease liabilities
(372
)
(665
)
(2,443
)
(2,641
)
Contract liabilities
91
(327
)
474
184
Income taxes receivable, net of
payable
(1,176
)
(366
)
(827
)
217
Net cash provided by operating
activities
246
7,491
19,603
35,620
Cash flows from investing
activities
Business combinations, net of cash and
restricted cash acquired
(280
)
—
(57,400
)
(290
)
Other intangible assets acquired
(130
)
—
(130
)
—
Purchases of property and equipment
(264
)
(76
)
(1,089
)
(458
)
Capitalized internal-use software
development costs
(5,827
)
(3,523
)
(19,300
)
(14,389
)
Net cash used in investing activities
(6,501
)
(3,599
)
(77,919
)
(15,137
)
Cash flows from financing
activities
Proceeds from initial public offering, net
of underwriter's discounts and commissions
—
—
224,595
—
Proceeds from private placement
—
—
50,000
—
Redemption of Series A preferred stock
—
—
(23,013
)
—
Payment of dividends on Series A preferred
stock
—
—
(34,412
)
—
Proceeds from repayment of related party
loan
—
—
813
—
Proceeds from exercise of stock
options
315
—
315
—
Financial institution funds in-transit
(4,628
)
—
1,984
—
Payments of deferred offering costs
—
—
(1,961
)
—
Payments on other financing
obligations
(3,080
)
(383
)
(4,562
)
(1,035
)
Payments on finance leases
(68
)
(66
)
(272
)
(323
)
Net cash (used in) provided by financing
activities
(7,461
)
(449
)
213,487
(1,358
)
Foreign currency effect on cash, cash
equivalents and restricted cash
(32
)
91
(8
)
114
Net (decrease) increase in cash, cash
equivalents and restricted cash
(13,748
)
3,534
155,163
19,239
Cash, cash equivalents and restricted
cash
Beginning of period
215,577
43,132
46,666
27,427
End of period
$
201,829
$
46,666
$
201,829
$
46,666
PAYMENTUS HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS (continued) (Unaudited)
(In thousands)
Three Months Ended December
31,
Year Ended December
31,
2021
2020
2021
2020
The below table reconciles cash, cash
equivalents and restricted cash in the consolidated balance sheets
to the total of the same amounts shown in the consolidated
statements of cash flows:
Cash and cash equivalents
$
168,386
$
46,666
$
168,386
$
46,666
Restricted funds held for financial
institutions
33,443
—
33,443
—
Total cash, cash equivalents and
restricted cash as shown in the consolidated statements of cash
flows
$
201,829
$
46,666
$
201,829
$
46,666
The following tables set forth our non-GAAP financial measures
with reconciliations to the most directly comparable GAAP financial
measures (in thousands):
Contribution Profit
Three Months Ended December
31,
Year Ended December
31,
2021
2020
2021
2020
Gross profit
$
33,741
$
25,795
$
121,380
$
92,627
Plus: other cost of revenue
11,535
7,433
37,098
27,876
Contribution profit
$
45,276
$
33,228
$
158,478
$
120,503
Adjusted Gross Profit
Three Months Ended December
31,
Year Ended December
31,
2021
2020
2021
2020
(in thousands)
Gross profit
$
33,741
$
25,795
$
121,380
$
92,627
Stock-based compensation
—
—
—
—
Amortization
2,395
960
6,005
3,513
Adjusted gross profit
$
36,136
$
26,755
$
127,385
$
96,140
Adjusted EBITDA and Adjusted EBITDA Margin
Three Months Ended December
31,
Year Ended December
31,
2021
2020
2021
2020
(in thousands)
Net income
$
4,665
$
3,633
$
9,300
$
13,711
Excluding
Interest expense (income), net
10
(4
)
6
(52
)
Benefit from (provision for) income
taxes
(4,357
)
1,292
1,066
4,653
Depreciation and amortization
4,708
2,057
13,295
8,069
Foreign exchange (gain) loss
(7
)
7
1
116
Stock-based compensation
1,251
546
3,136
1,994
Other nonrecurring expenses
—
—
2,711
—
Adjusted EBITDA
$
6,270
$
7,531
$
29,515
$
28,491
Adjusted EBITDA margin
13.8
%
22.7
%
18.6
%
23.6
%
Free Cash Flow
Three Months Ended December
31,
Year Ended December
31,
2021
2020
2021
2020
(in thousands)
Net cash provided by operating
activities
$
246
$
7,491
$
19,603
$
35,620
Purchases of property and equipment
(264
)
(76
)
(1,089
)
(458
)
Capitalized internal-use software
development costs
(5,827
)
(3,523
)
(19,300
)
(14,389
)
Free cash flow
$
(5,845
)
$
3,892
$
(786
)
$
20,773
Net cash used in investing activities
$
(6,501
)
$
(3,599
)
$
(77,919
)
$
(15,137
)
Net cash (used in) provided by financing
activities
$
(7,461
)
$
(449
)
$
213,487
$
(1,358
)
Non-GAAP Net Income
Three Months Ended December
31,
Year Ended December
31,
2021
2020
2021
2020
(in thousands)
Net income
$
4,665
$
3,633
$
9,300
$
13,711
Excluding amortization of
acquisition-related intangibles
1,743
—
2,676
—
Excluding discrete one-time tax items
(4,334
)
—
(2,272
)
—
Non-GAAP net income
$
2,074
$
3,633
$
9,704
$
13,711
Non-GAAP EPS
Three Months Ended December
31,
Year Ended December
31,
2021
2020
2021
2020
(in thousands)
Net income attributable to common
shareholders
$
4,665
$
2,281
$
7,042
$
8,525
Excluding amortization of
acquisition-related intangibles
1,743
—
2,676
—
Excluding undeclared dividends on Series A
preferred stock
—
1,352
2,258
5,186
Excluding discrete one-time tax items
(4,334
)
—
(2,272
)
—
Numerator for Non-GAAP EPS - basic
$
2,074
$
3,633
$
9,704
$
13,711
Weighted-average shares of common stock -
basic
120,154,077
103,479,239
112,763,261
103,479,239
Non-GAAP EPS - basic
$
0.02
$
0.04
$
0.09
$
0.13
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220216006036/en/
Investor Relations Paul Seamon pseamon@paymentus.com
Media Relations Tony Labriola tony@thinkinsideout.com
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