First Quarter Revenue Increased 21% Year-over-Year
First Quarter Revenue Less Ancillary Services Increased 24% Year-over-Year
Company Provides Second Quarter and Fiscal-Year 2024 Outlook
"We are pleased with our 2024 first quarter results, where we signed more than 200 new clients, the highest the company has signed in a quarter," said
First Quarter 2024 Financial Highlights:
GAAP Results
- Revenue increased 21% to
$114.1 million in the first quarter of 2024, compared to$94.4 million in the first quarter of 2023. - Gross Profit increased to
$70.4 million , resulting in Gross Margin of 61.7%, for the first quarter of 2024, compared to Gross Profit of$58.3 million and Gross Margin of 61.8% in the first quarter of 2023. - Net loss was
$6.2 million in the first quarter of 2024, compared to net loss of$3.7 million in the first quarter of 2023.
Key Operating Metrics and Non-GAAP Results
- Total Payment Volume increased 23% to
$7.0 billion in the first quarter of 2024, compared to$5.7 billion in the first quarter of 2023. - Revenue Less Ancillary Services increased 24% to
$110.2 million in the first quarter of 2024, compared to$89.1 million in the first quarter of 2023. Revenue Less Ancillary Services in the first quarter of 2024 was estimated to be unfavorably impacted by changes in foreign exchange rates betweenDecember 31, 2023 andMarch 31, 2024 by approximately$1.2 million . - Adjusted Gross Profit increased to
$71.9 million , resulting in Adjusted Gross Margin of 65.2% in the first quarter of 2024, compared to Adjusted Gross Profit of$59.9 million and Adjusted Gross Margin of 67.2% in the first quarter of 2023. - Adjusted EBITDA increased to
$13.2 million in the first quarter of 2024, compared to$7.0 million in the first quarter of 2023.
First Quarter 2024 Business Highlights:
- Signed more than 200 new clients, the highest the company has signed in a quarter, and
Flywire now supports more than 4,000 clients globally. - In the company’s travel vertical, signed a historical high of projected ARR in a single quarter.
- Strengthened management team with appointment of
Cosmin Pitigoi as Chief Financial Officer. - Integrated with State Bank of India (SBI), India’s largest public sector bank, to digitize education payments from the region.
- Signed partnership with VTEX, a digital commerce platform in
Latin America , to deliver an integrated digital payment experience to higher education institutions acrossLatin America .
Second Quarter and Fiscal-Year 2024 Outlook:
“I am excited by the culture and the long term growth opportunity at
Based on information available as of
Fiscal-Year 2024* | |
Revenue | |
Revenue Less Ancillary Services | |
Adjusted EBITDA** |
Second Quarter 2024* | |
Revenue | |
Revenue Less Ancillary Services | |
Adjusted EBITDA** |
*The Company has assumed foreign exchange rates prevailing as of
**
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 first quarter 2024 financial results today at
Key Operating Metrics and Non-GAAP Financial Measures
- 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, if applicable, 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.
- 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, 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.
About
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.
Contacts
Investor Relations:
ir@Flywire.com
Media:
Sarah.King@Flywire.com
pro-flywire@prosek.com
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) | ||||||||
(Unaudited) (Amounts in thousands, except share and per share amounts) | ||||||||
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Revenue | $ | 114,103 | $ | 94,357 | ||||
Costs and operating expenses: | ||||||||
Payment processing services costs | 41,650 | 33,855 | ||||||
Technology and development | 16,737 | 14,523 | ||||||
Selling and marketing | 30,083 | 24,434 | ||||||
General and administrative | 31,596 | 28,113 | ||||||
Total costs and operating expenses | 120,066 | 100,925 | ||||||
Loss from operations | $ | (5,963 | ) | $ | (6,568 | ) | ||
Other income (expense): | ||||||||
Interest expense | (142 | ) | (103 | ) | ||||
Interest income | 5,879 | 1,935 | ||||||
Gain (loss) from remeasurement of foreign currency | (4,376 | ) | 1,470 | |||||
Total other income (expense), net | 1,361 | 3,302 | ||||||
Loss before provision for income taxes | (4,602 | ) | (3,266 | ) | ||||
Provision for income taxes | 1,615 | 417 | ||||||
Net Loss | $ | (6,217 | ) | $ | (3,683 | ) | ||
Foreign currency translation adjustment | (1,361 | ) | (367 | ) | ||||
Comprehensive loss | $ | (7,578 | ) | $ | (4,050 | ) | ||
Net loss attributable to common stockholders - basic and diluted | $ | (6,217 | ) | $ | (3,683 | ) | ||
Net loss per share attributable to common stockholders - basic and diluted | $ | (0.05 | ) | $ | (0.03 | ) | ||
Weighted average common shares outstanding - basic and diluted | 123,143,343 | 109,787,528 | ||||||
Condensed Consolidated Balance Sheets | ||||||||
(Unaudited) (Amounts in thousands, except share amounts) | ||||||||
2024 | 2023 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 619,014 | $ | 654,608 | ||||
Accounts receivable, net | 19,688 | 18,215 | ||||||
Unbilled receivables, net | 7,995 | 10,689 | ||||||
Funds receivable from payment partners | 76,231 | 113,945 | ||||||
Prepaid expenses and other current assets | 16,222 | 18,227 | ||||||
Total current assets | 739,150 | 815,684 | ||||||
Property and equipment, net | 15,588 | 15,134 | ||||||
Intangible assets, net | 103,421 | 108,178 | ||||||
119,720 | 121,646 | |||||||
Other assets | 20,836 | 19,089 | ||||||
Total assets | $ | 998,715 | $ | 1,079,731 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 15,385 | $ | 12,587 | ||||
Funds payable to clients | 124,111 | 210,922 | ||||||
Accrued expenses and other current liabilities | 37,385 | 43,315 | ||||||
Deferred revenue | 5,619 | 6,968 | ||||||
Total current liabilities | 182,500 | 273,792 | ||||||
Deferred tax liabilities | 14,587 | 15,391 | ||||||
Other liabilities | 4,643 | 4,431 | ||||||
Total liabilities | 201,730 | 293,614 | ||||||
Commitments and contingencies (Note 16) | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock, | — | — | ||||||
Voting common stock, | 11 | 11 | ||||||
Non-voting common stock, | 1 | 1 | ||||||
(742 | ) | (747 | ) | |||||
Additional paid-in capital | 977,743 | 959,302 | ||||||
Accumulated other comprehensive income (loss) | (41 | ) | 1,320 | |||||
Accumulated deficit | (179,987 | ) | (173,770 | ) | ||||
Total stockholders’ equity | 796,985 | 786,117 | ||||||
Total liabilities and stockholders’ equity | $ | 998,715 | $ | 1,079,731 | ||||
Condensed Consolidated Statement of Cash Flows | ||||||||
(Unaudited) (Amounts in thousands) | ||||||||
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (6,217 | ) | $ | (3,683 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 4,259 | 3,731 | ||||||
Stock-based compensation expense | 14,842 | 8,603 | ||||||
Amortization of deferred contract costs | 242 | 109 | ||||||
Change in fair value of contingent consideration | (478 | ) | 410 | |||||
Deferred tax provision (benefit) | (643 | ) | (620 | ) | ||||
Provision for uncollectible accounts | (16 | ) | 83 | |||||
Non-cash interest expense | 92 | 72 | ||||||
Changes in operating assets and liabilities, net of acquisitions: | ||||||||
Accounts receivable | (1,457 | ) | (4,324 | ) | ||||
Unbilled receivables | 2,694 | 1,247 | ||||||
Funds receivable from payment partners | 37,714 | 34,323 | ||||||
Prepaid expenses, other current assets and other assets | 1,863 | (828 | ) | |||||
Funds payable to clients | (86,810 | ) | (60,343 | ) | ||||
Accounts payable, accrued expenses and other current liabilities | (2,489 | ) | 2,780 | |||||
Contingent consideration | — | (467 | ) | |||||
Other liabilities | (340 | ) | (413 | ) | ||||
Deferred revenue | (1,349 | ) | (1,526 | ) | ||||
Net cash provided by operating activities | (38,093 | ) | (20,846 | ) | ||||
Cash flows from investing activities: | ||||||||
Capitalization of internally developed software | (1,259 | ) | (1,368 | ) | ||||
Purchases of property and equipment | (255 | ) | (481 | ) | ||||
Net cash used in investing activities | (1,514 | ) | (1,849 | ) | ||||
Cash flows from financing activities: | ||||||||
Payment of debt issuance costs | (783 | ) | — | |||||
Contingent consideration paid for acquisitions | — | (1,207 | ) | |||||
Proceeds from the issuance of stock under Employee Stock Purchase Plan | 1,415 | 864 | ||||||
Proceeds from exercise of stock options | 1,617 | 2,144 | ||||||
Net cash provided by (used in) financing activities | 2,249 | 1,801 | ||||||
Effect of exchange rates changes on cash and cash equivalents | 1,764 | (1,202 | ) | |||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (35,594 | ) | (22,096 | ) | ||||
Cash, cash equivalents and restricted cash, beginning of year | $ | 654,608 | $ | 351,177 | ||||
Cash, cash equivalents and restricted cash, end of year | $ | 619,014 | $ | 329,081 | ||||
Reconciliation of Non-GAAP Financial Measures | ||||||||
(Amounts in millions, except percentages) | ||||||||
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Revenue | $ | 114.1 | $ | 94.4 | ||||
Adjusted to exclude gross up for: | ||||||||
Pass-through cost for printing and mailing | (3.6 | ) | (4.9 | ) | ||||
Marketing fees | (0.3 | ) | (0.4 | ) | ||||
Revenue Less Ancillary Services | $ | 110.2 | $ | 89.1 | ||||
Payment processing services costs | 41.7 | 33.9 | ||||||
Hosting and amortization costs within technology and development expenses | 2.0 | 2.2 | ||||||
Cost of Revenue | $ | 43.7 | $ | 36.1 | ||||
Adjusted to: | ||||||||
Exclude printing and mailing costs | (3.6 | ) | (4.9 | ) | ||||
Offset marketing fees against related costs | (0.3 | ) | (0.4 | ) | ||||
Exclude depreciation and amortization | (1.5 | ) | (1.6 | ) | ||||
Adjusted Cost of Revenue | $ | 38.3 | $ | 29.2 | ||||
Gross Profit | $ | 70.4 | $ | 58.3 | ||||
Gross Margin | 61.7 | % | 61.8 | % | ||||
Adjusted Gross Profit | $ | 71.9 | $ | 59.9 | ||||
Adjusted Gross Margin | 65.2 | % | 67.2 | % |
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Net income (loss) | $ | (6.2 | ) | $ | (3.7 | ) | ||
Interest expense | 0.1 | 0.1 | ||||||
Interest income | (5.9 | ) | (1.9 | ) | ||||
Provision for income taxes | 1.6 | 0.4 | ||||||
Depreciation and amortization | 4.5 | 3.8 | ||||||
EBITDA | (5.9 | ) | (1.3 | ) | ||||
Stock-based compensation expense and related taxes | 15.1 | 9.0 | ||||||
Change in fair value of contingent consideration | (0.5 | ) | 0.4 | |||||
(Gain) loss from remeasurement of foreign currency | 4.4 | (1.5 | ) | |||||
Indirect taxes related to intercompany activity | 0.1 | 0.1 | ||||||
Acquisition related employee retention costs | 0.0 | 0.3 | ||||||
Adjusted EBITDA | $ | 13.2 | $ | 7.0 |
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Revenue | $ | 114.1 | $ | 94.4 | ||||
Ancillary services | (3.9 | ) | (5.3 | ) | ||||
Revenue Less Ancillary Services | 110.2 | 89.1 | ||||||
Effects of foreign currency rate fluctuations | (0.2 | ) | — | |||||
Revenue Less Ancillary Services at Constant Currency | $ | 110.0 | $ | 89.1 |
Three Months Ended | ||||||||
(in millions) | 2024 | 2023 | ||||||
GAAP Technology and development | $ | 16.7 | $ | 14.5 | ||||
(-) Stock-based compensation expense and related taxes | (2.6 | ) | (1.6 | ) | ||||
(-) Depreciation and amortization | (1.9 | ) | (1.7 | ) | ||||
(-) Acquisition related employee retention costs | — | (0.1 | ) | |||||
Non-GAAP Technology and development | $ | 12.2 | $ | 11.1 | ||||
GAAP Selling and marketing | $ | 30.1 | $ | 24.4 | ||||
(-) Stock-based compensation expense and related taxes | (4.1 | ) | (2.6 | ) | ||||
(-) Depreciation and amortization | (1.9 | ) | (1.3 | ) | ||||
(-) Acquisition related employee retention costs | — | (0.2 | ) | |||||
Non-GAAP Selling and marketing | $ | 24.1 | $ | 20.3 | ||||
GAAP General and administrative | $ | 31.6 | $ | 28.1 | ||||
(-) Stock-based compensation expense and related taxes | (8.4 | ) | (4.8 | ) | ||||
(-) Depreciation and amortization | (0.7 | ) | (0.7 | ) | ||||
(-) Change in fair value of contingent consideration | 0.5 | (0.4 | ) | |||||
Non-GAAP General and administrative | $ | 23.0 | $ | 22.2 | ||||
Guidance | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
Low | High | Low | High | ||||||||||||
Revenue | $ | 99.0 | $ | 108.0 | $ | 491.0 | $ | 519.0 | |||||||
Adjusted to exclude gross up for: | |||||||||||||||
Pass through cost for printing and mailing | (2.9 | ) | (3.8 | ) | (10.8 | ) | (18.1 | ) | |||||||
Marketing fees | (0.1 | ) | (0.2 | ) | (2.2 | ) | (2.9 | ) | |||||||
Revenue Less Ancillary Services | $ | 96.0 | $ | 104.0 | $ | 478.0 | $ | 498.0 | |||||||
Adjusted EBITDA | $ | 1.0 | $ | 4.0 | $ | 64.0 | $ | 75.0 |
Source:
2024 GlobeNewswire, Inc., source