Flywire Corporation (Nasdaq: FLYW) (“Flywire” or the “Company”) a
global payments enablement and software company, today reported
financial results for its second quarter ended June 30, 2024.
“Our second quarter results demonstrate resilient performance
across the business where we signed more than 200 new clients and
grew revenue by 22% and revenue less ancillary services by 26%
year-over-year, despite revenue headwinds related to the ongoing
Canadian government actions involving student study permits,” said
Mike Massaro, CEO of Flywire. “These results reflect our ability to
both grow within our existing accounts and drive revenue diversity,
demonstrating continued progress against our strategy of optimizing
our Go-To-Market capabilities, expanding our Flywire Advantage and
strengthening our FlyMate community. I am also thrilled to be
welcoming a talented group of new FlyMates to our global team with
the acquisition of Invoiced, an award-winning Accounts Receivable
SaaS platform. We expect Invoiced to help accelerate our organic
progress to date in the fast growing B2B vertical.”
Second Quarter 2024 Financial Highlights:
GAAP Results
- Revenue increased 22% to $103.7
million in the second quarter of 2024, compared to $84.9 million in
the second quarter of 2023.
- Gross Profit increased to $61.9 million, resulting in Gross
Margin of 59.7%, for the second quarter of 2024, compared to Gross
Profit of $48.8 million and Gross Margin of 57.5% in the second
quarter of 2023.
- Net loss was $13.9 million in the second quarter of 2024,
compared to net loss of $16.8 million in the second quarter of
2023.
Key Operating Metrics and Non-GAAP Results
- Total Payment Volume increased 19% to $4.9 billion in the
second quarter of 2024, compared to $4.1 billion in the second
quarter of 2023.
- Revenue Less Ancillary Services increased 26% to $99.9 million
in the second quarter of 2024, compared to $79.5 million in the
second quarter of 2023. Revenue Less Ancillary Services in the
second quarter of 2024 was estimated to be unfavorably impacted by
changes in foreign exchange rates between March 31, 2024 and June
30, 2024 by approximately $0.1 million.
- Adjusted Gross Profit increased to $63.4 million, resulting in
Adjusted Gross Margin of 63.5% in the second quarter of 2024,
compared to Adjusted Gross Profit of $50.5 million and Adjusted
Gross Margin of 63.5% in the second quarter of 2023.
- Adjusted EBITDA increased to $5.8 million in the second quarter
of 2024, compared to $(0.1) million in the second quarter of 2023,
a 593 bps adjusted EBITDA margin expansion compared to the second
quarter of 2023.
Second Quarter 2024 and Recent Business
Highlights:
- Signed more than 200 new clients across all verticals.
- Expanded availability of third-party invoicing, streamlining
the payment experience for third-party sponsors paying a student’s
tuition and fees.
- Announced Partnership with HDFC by Credila, the largest
independent student loan provider in India, to enable Indian payers
to seamlessly and digitally disburse their loan payments in their
local currency (Indian Rupees) directly to higher education
institutions all over the world.
- Acquired Invoiced to bolster Flywire’s global B2B payment
network with award-winning Accounts Receivable SaaS platform
Share Repurchase Program:
As part of Flywire’s capital allocation strategy to maximize
shareholder value, the Company’s Board of Directors authorized a
share repurchase program, pursuant to which the Company may, from
time to time, purchase shares of its common stock, up to an
aggregate repurchase price of $150 million.
Third Quarter and Fiscal-Year 2024 Outlook:
“We had a strong quarter across many of our key operating
metrics and financial measures”, said Cosmin Pitigoi, CFO of
Flywire. "Our first half results demonstrate the resilience of our
team and our business model despite softer than expected
performance in our Canadian education business. For Fiscal Year
2024, we are lowering our revenue outlook due to our current
expectations regarding the external headwinds in Canada and raising
our Full Year Adjusted EBITDA guidance which reflects 490 basis
points of margin improvement at the midpoint, 170 basis points
higher than our prior guidance. Lastly, our share repurchase
program is a direct reflection of our confidence in the long term
potential of the business and the strength of our balance sheet. We
believe this program still allows us ample capacity to continue
investing organically and to pursue strategic value-enhancing
acquisitions".
Based on information available as of August 6, 2024, Flywire
anticipates the following results for the third quarter and
Fiscal-Year 2024.
|
Fiscal-Year 2024* |
Revenue |
$483 to $506 million |
Revenue Less Ancillary Services |
$469 to $485 million |
Adjusted EBITDA** |
$72 to $80 million |
|
Third Quarter 2024* |
Revenue |
$146 to $157 million |
Revenue Less Ancillary Services |
$141 to $151 million |
Adjusted EBITDA** |
$37 to $43 million |
*The Company has assumed foreign exchange rates prevailing as of
June 30, 2024.
**Flywire has not provided a quantitative reconciliation of
forecasted Adjusted EBITDA to forecasted GAAP net income (loss) or
to forecasted GAAP income (loss) before income taxes 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.
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 second
quarter 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, 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 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 to forecasted GAAP net
income (loss) or to forecasted GAAP income (loss) before income
taxes 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.
About Flywire
Flywire is a global payments enablement and software company.
Flywire combines its proprietary global payments network, next-gen
payments platform and vertical-specific software to deliver the
most important and complex payments for its 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, so organizations can optimize the payment
experience for their customers while eliminating operational
challenges.
Flywire supports more than 4,000 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 additional offices around the globe. For more
information, visit www.flywire.com. Follow Flywire
on X (formerly known as Twitter), LinkedIn and
Facebook.
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 Revenue, Revenue Less Ancillary Services,
and Adjusted EBITDA 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 litigation and legal and
regulatory matters; 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; 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 March 31, 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 Quarterly Report on Form
10-Q for the quarter ended March 31, 2024, expected to be filed
with the SEC in the third quarter of 2024. 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:ir@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 June 30, |
|
Six Months Ended June 30, |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Revenue |
|
$ |
103,676 |
|
|
$ |
84,869 |
|
|
$ |
217,779 |
|
|
$ |
179,226 |
|
|
Costs and
operating expenses: |
|
|
|
|
|
|
|
|
|
Payment
processing services costs |
|
|
39,899 |
|
|
|
33,804 |
|
|
|
81,549 |
|
|
|
67,659 |
|
|
Technology
and development |
|
|
15,834 |
|
|
|
16,016 |
|
|
|
32,571 |
|
|
|
30,539 |
|
|
Selling and
marketing |
|
|
31,771 |
|
|
|
27,273 |
|
|
|
61,854 |
|
|
|
51,707 |
|
|
General and
administrative |
|
|
31,959 |
|
|
|
24,584 |
|
|
|
63,555 |
|
|
|
52,697 |
|
|
Total costs
and operating expenses |
|
|
119,463 |
|
|
|
101,677 |
|
|
|
239,529 |
|
|
|
202,602 |
|
|
Loss from
operations |
|
$ |
(15,787) |
|
|
$ |
(16,808) |
|
|
$ |
(21,750) |
|
|
$ |
(23,376) |
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
(133) |
|
|
|
(78) |
|
|
|
(275) |
|
|
|
(181) |
|
|
Interest
income |
|
|
5,719 |
|
|
|
1,935 |
|
|
|
11,598 |
|
|
|
3,870 |
|
|
Gain (loss)
from remeasurement of foreign currency |
|
|
998 |
|
|
|
(755) |
|
|
|
(3,378) |
|
|
|
715 |
|
|
Total other
income (expense), net |
|
|
6,584 |
|
|
|
1,102 |
|
|
|
7,945 |
|
|
|
4,404 |
|
|
Loss before
provision for income taxes |
|
|
(9,203) |
|
|
|
(15,706) |
|
|
|
(13,805) |
|
|
|
(18,972) |
|
|
Provision
for income taxes |
|
|
4,677 |
|
|
|
1,107 |
|
|
|
6,292 |
|
|
|
1,524 |
|
|
Net
Loss |
|
$ |
(13,880) |
|
|
$ |
(16,813) |
|
|
$ |
(20,097) |
|
|
$ |
(20,496) |
|
|
Foreign
currency translation adjustment |
|
|
193 |
|
|
|
2,449 |
|
|
|
(1,168) |
|
|
|
2,082 |
|
|
Unrealized
losses on available-for-sale debt securities, net |
|
$ |
(53) |
|
|
$ |
— |
|
|
$ |
(53) |
|
|
$ |
— |
|
|
Total other
comprehensive income (loss) |
|
$ |
140 |
|
|
$ |
2,449 |
|
|
$ |
(1,221) |
|
|
$ |
2,082 |
|
|
Comprehensive loss |
|
$ |
(13,740) |
|
|
$ |
(14,364) |
|
|
$ |
(21,318) |
|
|
$ |
(18,414) |
|
|
Net loss
attributable to common stockholders - basic and diluted |
|
$ |
(13,880) |
|
|
$ |
(16,813) |
|
|
$ |
(20,097) |
|
|
$ |
(20,496) |
|
|
Net loss per
share attributable to common stockholders - basic and diluted |
|
$ |
(0.11) |
|
|
$ |
(0.15) |
|
|
$ |
(0.16) |
|
|
$ |
(0.19) |
|
|
Weighted
average common shares outstanding - basic and diluted |
|
|
124,562,015 |
|
|
|
111,133,221 |
|
|
|
123,859,762 |
|
|
|
110,464,092 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheets |
(Unaudited) (Amounts in thousands, except share
amounts) |
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
2024 |
|
2023 |
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
539,300 |
|
$ |
654,608 |
Restricted cash |
|
— |
|
— |
Short-term investments |
|
31,694 |
|
— |
Accounts receivable, net |
|
20,275 |
|
18,215 |
Unbilled receivables, net |
|
13,052 |
|
10,689 |
Funds receivable from payment partners |
|
84,974 |
|
113,945 |
Prepaid expenses and other current assets |
|
21,633 |
|
18,227 |
Total current assets |
|
710,928 |
|
815,684 |
Long-term investments |
|
26,721 |
|
— |
Property and equipment, net |
|
17,074 |
|
15,134 |
Intangible assets, net |
|
101,303 |
|
108,178 |
Goodwill |
|
120,657 |
|
121,646 |
Other assets |
|
22,029 |
|
19,089 |
Total assets |
|
$ |
998,712 |
|
$ |
1,079,731 |
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
13,509 |
|
$ |
12,587 |
Funds payable to clients |
|
116,191 |
|
210,922 |
Accrued expenses and other current liabilities |
|
43,536 |
|
43,315 |
Deferred revenue |
|
4,183 |
|
6,968 |
Total current liabilities |
|
177,419 |
|
273,792 |
Deferred tax liabilities |
|
14,744 |
|
15,391 |
Other liabilities |
|
3,989 |
|
4,431 |
Total liabilities |
|
196,152 |
|
293,614 |
Commitments and contingencies (Note 16) |
|
|
|
|
Stockholders’ equity: |
|
|
|
|
Preferred stock, $0.0001 par value; 10,000,000 shares authorized as
of June 30, 2024 and December 31, 2023; and no shares issued and
outstanding as of June 30, 2024 and December 31, 2023 |
|
— |
|
— |
Voting common stock, $0.0001 par value; 2,000,000,000 shares
authorized as of June 30, 2024 and December 31, 2023; 125,528,991
shares issued and 123,233,953 shares outstanding as of June 30,
2024; 123,010,207 shares issued and 120,695,162 shares outstanding
as of December 31, 2023 |
|
11 |
|
11 |
Non-voting common stock, $0.0001 par value; 10,000,000 shares
authorized as of June 30, 2024 and December 31, 2023; 1,873,320
shares issued and outstanding as of June 30, 2024 and December 31,
2023 |
|
1 |
|
1 |
Treasury voting common stock, 2,295,038 and 2,315,045 shares as of
June 30, 2024 and December 31, 2023, respectively, held at
cost |
|
(741) |
|
(747) |
Additional paid-in capital |
|
997,057 |
|
959,302 |
Accumulated other comprehensive income |
|
99 |
|
1,320 |
Accumulated deficit |
|
(193,867) |
|
(173,770) |
Total stockholders’ equity |
|
802,560 |
|
786,117 |
Total liabilities and stockholders’ equity |
|
$ |
998,712 |
|
$ |
1,079,731 |
|
|
|
|
|
|
|
Condensed
Consolidated Statement of Cash Flows |
|
(Unaudited)
(Amounts in thousands) |
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
Cash
flows from operating activities: |
|
|
|
|
|
Net
loss |
|
$ |
(20,097) |
|
|
$ |
(20,496) |
|
|
Adjustments
to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
Depreciation
and amortization |
|
|
8,463 |
|
|
|
7,876 |
|
|
Stock-based
compensation expense |
|
|
31,903 |
|
|
|
19,979 |
|
|
Amortization
of deferred contract costs |
|
|
517 |
|
|
|
228 |
|
|
Change in
fair value of contingent consideration |
|
|
(894) |
|
|
|
410 |
|
|
Deferred tax
provision (benefit) |
|
|
(1,045) |
|
|
|
(584) |
|
|
Provision
for uncollectible accounts |
|
|
(121) |
|
|
|
599 |
|
|
Non-cash
interest expense |
|
|
138 |
|
|
|
144 |
|
|
Accretion of
discounts on investments, net of amortization of premiums |
|
|
(143) |
|
|
|
— |
|
|
Changes in
operating assets and liabilities, net of acquisitions: |
|
|
|
|
|
Accounts
receivable |
|
|
(1,939) |
|
|
|
(6,186) |
|
|
Unbilled
receivables |
|
|
(2,363) |
|
|
|
(1,511) |
|
|
Funds
receivable from payment partners |
|
|
28,971 |
|
|
|
19,649 |
|
|
Prepaid
expenses, other current assets and other assets |
|
|
(4,421) |
|
|
|
(1,030) |
|
|
Funds
payable to clients |
|
|
(94,730) |
|
|
|
(42,347) |
|
|
Accounts
payable, accrued expenses and other current liabilities |
|
|
1,807 |
|
|
|
1,121 |
|
|
Contingent
consideration |
|
|
— |
|
|
|
(467) |
|
|
Other
liabilities |
|
|
(675) |
|
|
|
(574) |
|
|
Deferred
revenue |
|
|
(2,785) |
|
|
|
(2,463) |
|
|
Net cash
used in operating activities |
|
|
(57,414) |
|
|
|
(25,652) |
|
|
|
|
|
|
|
|
Cash
flows from investing activities: |
|
|
|
|
|
Purchase of
debt securities |
|
|
(58,491) |
|
|
|
— |
|
|
Sale of debt
securities |
|
|
165 |
|
|
|
— |
|
|
Capitalization of internally developed software |
|
|
(3,304) |
|
|
|
(2,812) |
|
|
Purchases of
property and equipment |
|
|
(604) |
|
|
|
(671) |
|
|
Net cash
used in investing activities |
|
|
(62,234) |
|
|
|
(3,483) |
|
|
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 |
|
|
3,227 |
|
|
|
6,044 |
|
|
Net cash
provided by (used in) financing activities |
|
|
3,859 |
|
|
|
5,701 |
|
|
Effect of
exchange rates changes on cash and cash equivalents |
|
|
481 |
|
|
|
320 |
|
|
Net
increase (decrease) in cash, cash equivalents and restricted
cash |
|
|
(115,308) |
|
|
|
(23,114) |
|
|
Cash, cash equivalents and restricted cash, beginning of
year |
|
$ |
654,608 |
|
|
$ |
351,177 |
|
|
Cash, cash equivalents and restricted cash, end of
year |
|
$ |
539,300 |
|
|
$ |
328,063 |
|
Reconciliation of Non-GAAP Financial Measures |
(Unaudited) (Amounts in millions, except
percentages) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Revenue |
|
$ |
103.7 |
|
$ |
84.9 |
|
$ |
217.8 |
|
$ |
179.2 |
Adjusted to exclude gross up for: |
|
|
|
|
|
|
|
|
Pass-through cost for printing and mailing |
|
(3.6) |
|
(5.3) |
|
(7.2) |
|
(10.2) |
Marketing fees |
|
(0.2) |
|
(0.1) |
|
(0.5) |
|
(0.5) |
Revenue Less Ancillary Services |
|
$ |
99.9 |
|
$ |
79.5 |
|
$ |
210.1 |
|
$ |
168.5 |
Payment processing services costs |
|
39.9 |
|
33.8 |
|
81.5 |
|
67.7 |
Hosting and amortization costs within technology and development
expenses |
|
1.9 |
|
2.3 |
|
3.9 |
|
4.5 |
Cost of Revenue |
|
$ |
41.8 |
|
$ |
36.1 |
|
$ |
85.4 |
|
$ |
72.2 |
Adjusted to: |
|
|
|
|
|
|
|
|
Exclude printing and mailing costs |
|
(3.6) |
|
(5.3) |
|
(7.2) |
|
(10.2) |
Offset marketing fees against related costs |
|
(0.2) |
|
(0.1) |
|
(0.5) |
|
(0.5) |
Exclude depreciation and amortization |
|
(1.5) |
|
(1.7) |
|
(3.0) |
|
(3.3) |
Adjusted Cost of Revenue |
|
$ |
36.5 |
|
$ |
29.0 |
|
$ |
74.7 |
|
$ |
58.2 |
Gross Profit |
|
$ |
61.9 |
|
$ |
48.8 |
|
$ |
132.4 |
|
$ |
107.0 |
Gross Margin |
|
59.7% |
|
57.5% |
|
60.8% |
|
59.7% |
Adjusted Gross Profit |
|
$ |
63.4 |
|
$ |
50.5 |
|
$ |
135.4 |
|
$ |
110.3 |
Adjusted Gross Margin |
|
63.5% |
|
63.5% |
|
64.4% |
|
65.5% |
|
|
Three Months Ended June 30,
2024 |
|
Six Months Ended June 30,
2024 |
|
|
Transaction |
|
Platform and Other Revenues |
|
Revenue |
|
Transaction |
|
Platform and Other Revenues |
|
Revenue |
Revenue |
|
$ |
85.3 |
|
$ |
18.4 |
|
$ |
103.7 |
|
$ |
180.5 |
|
$ |
37.3 |
|
$ |
217.8 |
Adjusted to exclude gross up for: |
|
|
|
|
|
|
|
|
|
|
|
|
Pass-through cost for printing and mailing |
|
— |
|
(3.6) |
|
(3.6) |
|
— |
|
(7.2) |
|
(7.2) |
Marketing fees |
|
(0.2) |
|
— |
|
(0.2) |
|
(0.5) |
|
— |
|
(0.5) |
Revenue Less Ancillary Services |
|
$ |
85.1 |
|
$ |
14.8 |
|
$ |
99.9 |
|
$ |
180.0 |
|
$ |
30.1 |
|
$ |
210.1 |
Percentage of Revenue |
|
82.3% |
|
17.7% |
|
100.0% |
|
82.9% |
|
17.1% |
|
100.0% |
Percentage of Revenue Less Ancillary Services |
|
85.2% |
|
14.8% |
|
100.0% |
|
85.7% |
|
14.3% |
|
100.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
2023 |
|
Six Months Ended June 30,
2023 |
|
|
Transaction |
|
Platform and Other Revenues |
|
Revenue |
|
Transaction |
|
Platform and Other Revenues |
|
Revenue |
Revenue |
|
$ |
66.8 |
|
$ |
18.0 |
|
$ |
84.9 |
|
$ |
143.1 |
|
$ |
36.1 |
|
$ |
179.2 |
Adjusted to exclude gross up for: |
|
|
|
|
|
|
|
|
|
|
|
|
Pass-through cost for printing and mailing |
|
— |
|
(5.3) |
|
(5.3) |
|
— |
|
(10.2) |
|
(10.2) |
Marketing fees |
|
(0.1) |
|
— |
|
(0.1) |
|
(0.5) |
|
— |
|
(0.5) |
Revenue Less Ancillary Services |
|
$ |
66.7 |
|
$ |
12.7 |
|
$ |
79.5 |
|
$ |
142.6 |
|
$ |
25.9 |
|
$ |
168.5 |
Percentage of Revenue |
|
78.8% |
|
21.2% |
|
100.0% |
|
79.9% |
|
20.1% |
|
100.0% |
Percentage of Revenue Less Ancillary Services |
|
84.0% |
|
16.0% |
|
100.0% |
|
84.6% |
|
15.4% |
|
100.0% |
Revenue Less Ancillary Services at Constant
Currency: |
|
|
|
|
|
|
|
|
|
(unaudited) (in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
|
Six Months Ended June 30, |
|
|
|
|
2024 |
|
2023 |
|
Growth Rate |
|
2024 |
|
2023 |
|
Growth Rate |
Revenue |
|
$ |
103.7 |
|
$ |
84.9 |
|
22% |
|
$ |
217.8 |
|
$ |
179.2 |
|
22% |
Ancillary services |
|
(3.8) |
|
(5.4) |
|
|
|
(7.7) |
|
(10.7) |
|
|
Revenue Less Ancillary Services |
|
99.9 |
|
79.5 |
|
26% |
|
210.1 |
|
168.5 |
|
25% |
Effects of foreign currency rate fluctuations |
|
0.9 |
|
— |
|
|
|
0.7 |
|
— |
|
|
Revenue Less Ancillary Services at Constant Currency |
|
$ |
100.8 |
|
$ |
79.5 |
|
27% |
|
$ |
210.8 |
|
$ |
168.5 |
|
25% |
EBITDA and Adjusted EBITDA |
|
|
|
|
|
|
|
|
(Unaudited) (in
millions) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Net loss |
|
$ |
(13.9) |
|
$ |
(16.8) |
|
$ |
(20.1) |
|
$ |
(20.5) |
Interest expense |
|
0.1 |
|
0.1 |
|
0.3 |
|
0.2 |
Interest income |
|
(5.7) |
|
(1.9) |
|
(11.6) |
|
(3.9) |
Provision for income taxes |
|
4.7 |
|
1.1 |
|
6.3 |
|
1.5 |
Depreciation and amortization |
|
4.5 |
|
4.3 |
|
9.0 |
|
8.1 |
EBITDA |
|
(10.3) |
|
(13.2) |
|
(16.1) |
|
(14.6) |
Stock-based compensation expense and related taxes |
|
17.5 |
|
11.7 |
|
32.6 |
|
20.7 |
Change in fair value of contingent consideration |
|
(0.4) |
|
0.0 |
|
(0.9) |
|
0.4 |
(Gain) loss from remeasurement of foreign currency |
|
(1.0) |
|
0.8 |
|
3.4 |
|
(0.7) |
Indirect taxes related to intercompany activity |
|
— |
|
— |
|
0.1 |
|
0.1 |
Acquisition related employee retention costs |
|
— |
|
0.6 |
|
— |
|
0.9 |
Adjusted EBITDA |
|
$ |
5.8 |
|
$ |
(0.1) |
|
$ |
19.1 |
|
$ |
6.8 |
Reconciliation of Non-GAAP Operating Expenses |
|
|
|
|
|
|
(Unaudited) (in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
(in millions) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
GAAP Technology and development |
|
$ |
15.8 |
|
$ |
16 |
|
$ |
32.6 |
|
$ |
30.5 |
(-) Stock-based compensation expense and related taxes |
|
|
(2.9) |
|
|
(2.7) |
|
|
(5.5) |
|
|
(4.3) |
(-) Depreciation and amortization |
|
|
(1.7) |
|
|
(2.3) |
|
|
(3.6) |
|
|
(4.0) |
(-) Acquisition related employee retention costs |
|
|
— |
|
|
(0.6) |
|
|
— |
|
|
(0.7) |
Non-GAAP Technology and development |
|
$ |
11.2 |
|
$ |
10.4 |
|
$ |
23.5 |
|
$ |
21.5 |
|
|
|
|
|
|
|
|
GAAP Selling and marketing |
|
$ |
31.8 |
|
$ |
27.3 |
|
$ |
61.9 |
|
$ |
51.7 |
(-) Stock-based compensation expense and related taxes |
|
|
(4.9) |
|
|
(3.5) |
|
|
(9.0) |
|
|
(6.1) |
(-) Depreciation and amortization |
|
|
(2.0) |
|
|
(1.3) |
|
|
(3.9) |
|
|
(2.6) |
(-) Acquisition related employee retention costs |
|
|
— |
|
|
— |
|
|
— |
|
|
(0.2) |
Non-GAAP Selling and marketing |
|
$ |
24.9 |
|
$ |
22.5 |
|
$ |
49.0 |
|
$ |
42.8 |
|
|
|
|
|
|
|
|
GAAP General and administrative |
|
$ |
32.0 |
|
$ |
24.6 |
|
$ |
63.6 |
|
$ |
52.7 |
(-) Stock-based compensation expense and related taxes |
|
|
(9.7) |
|
|
(5.5) |
|
|
(18.1) |
|
|
(10.3) |
(-) Depreciation and amortization |
|
|
(0.8) |
|
|
(0.7) |
|
|
(1.5) |
|
|
(1.5) |
(-) Change in fair value of contingent consideration |
|
|
0.4 |
|
|
— |
|
|
0.9 |
|
|
(0.4) |
Non-GAAP General and administrative |
|
$ |
21.9 |
|
$ |
18.4 |
|
$ |
44.9 |
|
$ |
40.5 |
Net
Margin, EBITDA Margin and Adjusted EBITDA Margin |
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) (Amounts in millions, except
percentages) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
|
Six Months Ended June 30, |
|
|
|
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
Revenue (A) |
|
$ |
103.7 |
|
$ |
84.9 |
|
$ |
18.8 |
|
$ |
217.8 |
|
$ |
179.2 |
|
$ |
38.6 |
Revenue less ancillary
services (B) |
|
99.9 |
|
79.5 |
|
20.4 |
|
210.1 |
|
168.5 |
|
41.6 |
Net loss (C) |
|
(13.9) |
|
(16.8) |
|
2.9 |
|
(20.1) |
|
(20.5) |
|
0.4 |
EBITDA (D) |
|
(10.3) |
|
(13.2) |
|
2.9 |
|
(16.1) |
|
(14.6) |
|
(1.5) |
Adjusted EBITDA (E) |
|
5.8 |
|
(0.1) |
|
5.9 |
|
19.1 |
|
6.8 |
|
12.3 |
Net margin (C/A) |
|
-13.4% |
|
-19.8% |
|
6.4% |
|
-9.2% |
|
-11.4% |
|
2.2% |
Net margin using RLAS
(C/B) |
|
-13.9% |
|
-21.1% |
|
7.3% |
|
-9.6% |
|
-12.2% |
|
2.6% |
EBITDA Margin (D/A) |
|
-9.9% |
|
-15.6% |
|
5.6% |
|
-7.4% |
|
-8.1% |
|
0.8% |
Adjusted EBITDA Margin
(E/A) |
|
5.6% |
|
-0.1% |
|
5.7% |
|
8.8% |
|
3.8% |
|
5.0% |
EBITDA Margin using RLAS
(D/B) |
|
-10.3% |
|
-16.6% |
|
6.3% |
|
-7.7% |
|
-8.7% |
|
1.0% |
Adjusted EBITDA Margin using
RLAS (E/B) |
|
5.8% |
|
-0.1% |
|
6.0% |
|
9.1% |
|
4.0% |
|
5.1% |
|
Guidance |
|
|
(in millions) |
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
2024 |
|
Year Ended December 31, 2024 |
|
|
Low |
|
High |
|
Low |
|
High |
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
146.0 |
|
$ |
157.0 |
|
$ |
483.0 |
|
$ |
506.0 |
|
Adjusted to exclude gross up
for: |
|
|
|
|
|
|
|
|
Pass through cost for printing
and mailing |
(3.4) |
|
(4.2) |
|
(11.8) |
|
(18.0) |
|
Marketing fees |
(1.7) |
|
(1.9) |
|
(2.2) |
|
(3.0) |
|
Revenue Less Ancillary
Services |
$ |
141.0 |
|
$ |
151.0 |
|
$ |
469.0 |
|
$ |
485.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
37.0 |
|
$ |
43.0 |
|
$ |
72.0 |
|
$ |
80.0 |
Flywire (NASDAQ:FLYW)
過去 株価チャート
から 8 2024 まで 9 2024
Flywire (NASDAQ:FLYW)
過去 株価チャート
から 9 2023 まで 9 2024