Fourth Quarter Revenue Increased 22.2%
Year-over-Year Fourth Quarter Gross Profit increased 21.9%
Year-over-Year Fourth Quarter Contribution Profit* Increased 19.4%
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, 2022.
"Paymentus delivered a strong quarter that was successful, both
financially and strategically," said Dushyant Sharma, Founder and
CEO. "I’m especially excited about the fact that we exceeded our
revenue expectations we originally communicated at the beginning of
2022."
Business Highlights and Recent
Developments
- Signed Citizens Financial Group, a large Bill Center client
win.
- Expanded our reach through partnerships with Green Dot and a
large real estate software provider.
- Launched a small business product to expand our offerings and
total addressable market.
“We are proud to deliver over $10 million of adjusted EBITDA in
the fourth quarter,” said Paul Seamon, Interim CFO. “The quarter
demonstrates our ability to expand margin as the business
grows.”
Fourth Quarter 2022 Financial
Highlights*
- Revenue was $132.2 million, an increase of 22.2% from the
fourth quarter of 2021.
- Gross profit was $41.1 million compared to $33.7 million for
the fourth quarter of 2021. Adjusted gross profit was $44.6 million
compared to $36.1 million for the fourth quarter of 2021.
- Contribution profit was $54.1 million, compared to $45.3
million for the fourth quarter of 2021, representing an increase of
19.4%.
- Net income was $1.0 million and GAAP earnings per share was
$0.01. Non-GAAP net income was $3.0 million and non-GAAP earnings
per share was $0.02.
- Adjusted EBITDA was $10.2 million, representing a 18.9%
adjusted EBITDA margin, compared to $6.3 million, representing a
13.8% adjusted EBITDA margin, for the fourth quarter of 2021.
Full Year 2022 Financial
Highlights*
- Revenue was $497.0 million, an increase of 25.7% from
2021.
- Gross profit was $149.7 million, compared to $121.4 million for
2021. Adjusted gross profit was $161.8 million, compared to $127.4
million for 2021.
- Contribution profit was $201.3 million, compared to $158.5
million for 2021, representing an increase of 27.0%.
- Net loss was $(0.5) million and GAAP loss per share was $0.00.
Non-GAAP net income was $8.1 million and non-GAAP earnings per
share was $0.07.
- Adjusted EBITDA was $28.6 million, representing a 14.2%
adjusted EBITDA margin, compared to $29.5 million, representing a
18.6% adjusted EBITDA margin for 2021.
- Cash and cash equivalents were $147.3 million as of December
31, 2022.
*
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.
Q1 and Full Year 2023 Financial
Outlook
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, 2021 and the Form 10-K for the
fiscal year ended December 31, 2022, expected to be filed with the
Securities and Exchange Commission, or SEC, in early March
2023.
Paymentus expects revenue for the first quarter of 2023 to be
between $136 million and $140 million, or 17% to 20% growth current
quarter over prior year quarter. Contribution profit is anticipated
to be between $51 million and $53 million, or 8% to 12% growth
current quarter over prior year quarter. Adjusted EBITDA is
expected to be between $7 million and $8 million, resulting in an
expected adjusted EBITDA margin of approximately 13% to 15%.
Paymentus expects revenue for the full year 2023 to be between
$575 million and $600 million, or 16% to 21% growth year-over-year.
Contribution profit is anticipated to be between $224 million and
$237 million, or 11% to 18% growth year-over-year. Adjusted EBITDA
is expected to be between $32 million and $38 million, resulting in
an expected adjusted EBITDA margin of approximately 14% to 16%.
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.
Conference Call Information
In conjunction with this announcement, Paymentus will host a
conference call for investors at 5:00 p.m. ET today to discuss
fourth quarter and full year 2022 results and our outlook for 2023.
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 ability to expand our addressable
market and product offerings, our ability to expand margin as our
business grows in the future, and first quarter and full-year 2023
financial outlook. 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 impact of widespread health issues
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 SEC, including,
without limitation, our Annual Report on Form 10-K for the year
ended December 31, 2021, filed with the SEC on March 3, 2022, our
Quarterly Report on Form 10-Q for the quarter ended September 30,
2022 filed with the SEC on November 10, 2022 and our Annual Report
on Form 10-K for the year ended December 31, 2022, which we expect
to file with the SEC in early March 2023. 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,
Twelve Months Ended December
31,
2022
2021
2022
2021
Revenue
$
132,176
$
108,131
$
497,001
$
395,524
Cost of revenue
91,037
74,390
347,323
274,144
Gross profit
41,139
33,741
149,678
121,380
Operating expenses
Research and development
10,295
9,653
41,220
34,122
Sales and marketing
20,206
14,876
73,295
43,917
General and administrative
9,101
8,901
38,139
32,968
Total operating expenses
39,602
33,430
152,654
111,007
(Loss) income from
operations
1,537
311
(2,976
)
10,373
Other income (loss)
Interest income (expense),
net
1,069
(10
)
1,663
(6
)
Foreign exchange gain
(loss)
(47
)
7
5
(1
)
(Loss) income before income
taxes
2,559
308
(1,308
)
10,366
(Provision for) benefit from
income taxes
(1,602
)
4,357
795
(1,066
)
Net (loss) income
$
957
$
4,665
$
(513
)
$
9,300
Undeclared dividends on Series
A preferred stock
—
—
—
(2,258
)
Net (loss) income attributable
to common stock
$
957
$
4,665
$
(513
)
$
7,042
Net (loss) income per share
attributable to common stock
Basic
$
0.01
$
0.04
$
--
$
0.06
Diluted
$
0.01
$
0.04
$
--
$
0.06
Weighted-average number of
shares used to compute net (loss) income per share attributable to
common stock
Basic
123,090,334
120,154,077
122,099,437
112,763,261
Diluted
124,395,447
126,169,616
122,099,437
118,821,925
PAYMENTUS HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share
and per share data)
December 31,
December 31,
2022
2021
Assets
Current assets
Cash and cash equivalents
$
147,334
$
168,386
Restricted cash and cash
equivalents
2,351
—
Restricted funds held for
financial institutions
-
33,443
Accounts and other receivables,
net of allowance of $370 and $102
67,789
43,935
Income tax receivable
1,493
2,488
Prepaid expenses and other
current assets
9,994
8,184
Total current assets
228,961
256,436
Property and equipment, net of accumulated
depreciation and amortization of $5,744 and $4,791
1,823
2,044
Capitalized internal-use software
development costs, net
46,032
30,888
Intangible assets, net
36,017
42,088
Goodwill
131,851
129,413
Operating lease right-of-use assets
9,561
7,703
Deferred tax asset
116
163
Other long-term assets
7,178
4,207
Total assets
$
461,539
$
472,942
Liabilities and Stockholders’
Equity
Current liabilities
Accounts payable
$
29,232
$
24,748
Accrued liabilities
15,809
12,491
Financial institution funds
in-transit
—
33,443
Operating lease liabilities
1,462
1,456
Contract liabilities
4,358
2,173
Income tax payable
635
122
Total current liabilities
51,496
74,433
Deferred tax liability
680
3,318
Operating leases, net of current
portion
8,608
6,463
Contract liabilities, net of current
portion
2,826
1,713
Finance leases and other finance
obligations, net of current portion
750
883
Total liabilities
64,360
86,810
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.0001 par
value per share, 5,000,000 shares authorized as of December 31,
2022 and 2021, respectively; none issued and outstanding as of
December 31, 2022 and 2021, respectively
—
—
Class A common stock, $0.0001
par value per share, 883,950,000 shares authorized as of December
31, 2022 and 2021, respectively; 19,934,331 and 17,251,079 shares
issued and outstanding as of December 31, 2022 and 2021,
respectively
2
1
Class B common stock, $0.0001
par value per share, 111,050,000 shares authorized as of December
31, 2022 and 2021, respectively; 103,306,842 and 103,388,082 shares
issued and outstanding as of December 31, 2022 and 2021,
respectively
10
11
Additional paid-in capital
367,767
356,017
Accumulated other comprehensive
(loss) income
(22
)
168
Retained earnings
29,422
29,935
Total stockholders’ equity
397,179
386,132
Total liabilities and
stockholders' equity
$
461,539
$
472,942
PAYMENTUS HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In
thousands)
Three Months Ended December
31,
Twelve Months Ended December
31,
2022
2021
2022
2021
Cash flows from operating
activities
Net (loss) income
$
957
$
4,665
$
(513
)
$
9,300
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation and
amortization
6,545
4,708
24,063
13,295
Deferred income taxes
350
(3,351
)
(2,981
)
(660
)
Stock-based compensation
2,114
1,251
6,736
3,136
Non-cash lease expense
432
366
2,135
2,497
Amortization of contract
asset
711
246
2,058
669
Provision for credit losses
49
106
268
106
Change in operating assets and
liabilities
Accounts and other
receivables
(5,144
)
(6,922
)
(24,287
)
(14,736
)
Prepaid expenses and other
current and long-term assets
2,065
1,179
1,211
1,346
Accounts payable
1,791
(462
)
4,766
7,380
Accrued liabilities
1,010
(193
)
3,400
(44
)
Operating lease liabilities
(434
)
(372
)
(1,832
)
(2,443
)
Contract liabilities
3,219
91
3,299
474
Income taxes receivable, net of
payable
1,059
(1,176
)
1,544
(827
)
Net cash provided by operating
activities
14,724
136
19,867
19,493
Cash flows from investing
activities
Business combinations, net of
cash and restricted cash acquired
(3,260
)
(280
)
(3,260
)
(57,400
)
Other intangible assets
acquired
(32
)
(130
)
(280
)
(130
)
Purchases of property and
equipment
(94
)
(154
)
(1,257
)
(979
)
Capitalized internal-use
software development costs
(7,506
)
(5,827
)
(29,763
)
(19,300
)
Net cash used in investing
activities
(10,892
)
(6,391
)
(34,560
)
(77,809
)
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-based awards
21
315
1,490
315
Financial institution funds
in-transit
(77,601
)
(4,628
)
(33,443
)
1,984
Payments of deferred offering
costs
—
—
—
(1,961
)
Payments on other financing
obligations
(2,576
)
(3,080
)
(5,062
)
(4,562
)
Payments on finance leases
(67
)
(68
)
(268
)
(272
)
Net cash (used in) provided by
financing activities
(80,223
)
(7,461
)
(37,283
)
213,487
Foreign currency effect on cash, cash
equivalents and restricted cash
161
(32
)
(168
)
(8
)
Net (decrease) increase in cash, cash
equivalents and restricted cash
(76,230
)
(13,748
)
(52,144
)
155,163
Cash, cash equivalents and restricted
cash
Beginning of period
225,915
215,577
201,829
46,666
End of period
$
149,685
$
201,829
$
149,685
$
201,829
PAYMENTUS HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) (Unaudited) (In
thousands)
Three Months Ended December
31,
Twelve Months Ended December
31,
2022
2021
2022
2021
The below table reconciles cash, cash
equivalents and restricted cash in the condensed consolidated
balance sheets to the total of the same amounts shown in the
condensed consolidated statements of cash flows:
Cash and cash equivalents
$
147,334
$
168,386
$
147,334
$
168,386
Restricted cash
2,351
--
2,351
--
Restricted funds held for
financial institutions
--
33,443
--
33,443
Total cash, cash equivalents
and restricted cash as shown in the condensed consolidated
statements of cash flows
$
149,685
$
201,829
$
149,685
$
201,829
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,
2022
2021
2022
2021
(in thousands)
Gross profit
$
41,139
$
33,741
$
149,678
$
121,380
Plus: other cost of revenue
12,918
11,535
51,622
37,098
Contribution profit
$
54,057
$
45,276
$
201,300
$
158,478
Adjusted Gross Profit
Three Months Ended December
31,
Year Ended December
31,
2022
2021
2022
2021
(in thousands)
Gross profit
$
41,139
$
33,741
$
149,678
$
121,380
Stock-based compensation
—
—
—
—
Amortization
3,502
2,395
12,077
6,005
Adjusted gross profit
$
44,641
$
36,136
$
161,755
$
127,385
Adjusted EBITDA and Adjusted EBITDA
Margin
Three Months Ended December
31,
Twelve Months Ended December
31,
2022
2021
2022
2021
(in thousands)
Net (loss) income
$
957
$
4,665
$
(513
)
$
9,300
Excluding
Interest income, net
(1,069
)
10
(1,663
)
6
Provision for (benefit from)
income taxes
1,602
(4,357
)
(795
)
1,066
Depreciation and
amortization
6,545
4,708
24,063
13,295
Foreign exchange (gain)
loss
47
(7
)
(5
)
1
Stock-based compensation
2,114
1,251
6,736
3,136
Other nonrecurring expenses
—
—
769
2,711
Adjusted EBITDA
$
10,196
$
6,270
$
28,592
$
29,515
Adjusted EBITDA margin
18.9
%
13.8
%
14.2
%
18.6
%
Free Cash Flow
Three Months Ended December
31,
Year Ended December
31,
2022
2021
2022
2021
(in thousands)
Net cash provided by operating
activities
$
14,724
$
136
$
19,867
$
19,493
Purchases of property and
equipment and software
(94
)
(154
)
(1,257
)
(979
)
Other intangible assets
acquired
(32
)
(130
)
(280
)
(130
)
Capitalized internal-use
software development costs
(7,506
)
(5,827
)
(29,763
)
(19,300
)
Free cash flow
$
7,092
$
(5,975
)
$
(11,443
)
$
(916
)
Net cash used in investing activities
$
(10,892
)
$
(6,391
)
$
(34,560
)
$
(77,809
)
Net cash provided by financing
activities
$
(80,223
)
$
(7,461
)
$
(37,283
)
$
213,487
Non-GAAP Net Income
Three Months Ended December
31,
Twelve Months Ended December
31,
2022
2021
2022
2021
(in thousands)
Net (loss) income
$
957
$
4,665
$
(513
)
$
9,300
Excluding amortization of
acquisition-related intangibles
2,007
1,743
8,028
2,676
Excluding discrete one-time
items, net of tax
--
—
565
—
Excluding discrete tax and
other one-time items
—
(4,334
)
—
(2,272
)
Non-GAAP net (loss) income
$
2,964
$
2,074
$
8,080
$
9,704
Non-GAAP EPS
Three Months Ended December
31,
Twelve Months Ended December
31,
2022
2021
2022
2021
(in thousands, except share
and per share data)
Net (loss) income attributable to common
shareholders
$
957
$
4,665
$
(513
)
$
7,042
Excluding amortization of
acquisition-related intangibles
2,007
1,743
8,028
2,676
Excluding undeclared dividends
on Series A preferred stock
—
—
—
2,258
Excluding discrete one-time
items, net of tax
—
—
565
—
Excluding discrete tax one-time
items
—
(4,334
)
—
(2,272
)
Numerator for Non-GAAP EPS - basic
$
2,964
$
2,074
$
8,080
$
9,704
Weighted-average shares of common stock -
basic
123,090,334
120,154,077
122,099,437
112,763,261
Non-GAAP EPS - basic
$
0.02
$
0.02
$
0.07
$
0.09
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230223005807/en/
Investor Relations Paul Seamon pseamon@paymentus.com
Media Relations Tony Labriola tony@thinkinsideout.com
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