Revenue up 51.9% year-over-year
Adjusted EBITDA up 58.2% year-over-year,
reflecting a 30.7% adjusted EBITDA margin
Paymentus Holdings, Inc. (“Paymentus”) (NYSE: PAY), a leading
provider of cloud-based bill payment technology and solutions,
today announced its unaudited financial results for the quarter
ended September 30, 2024.
“Paymentus has delivered excellent results to date in 2024 with
third quarter revenue, contribution profit and adjusted EBITDA
increasing 51.9%, 30.1% and 58.2% year-over-year, respectively. We
exited the quarter with strong bookings and backlog and are
confident in our ability to continue to deliver on our near and
longer-term growth and strategic objectives,” said Dushyant Sharma,
Founder and CEO.
Third Quarter 2024 Financial and
Business Highlights
- Revenue was a record $231.6 million, a year-over-year increase
of 51.9%, driven largely by increased billers and
transactions.
- Gross profit was $60.7 million, an increase of 29.3%
year-over-year. Adjusted gross profit(1) was $66.2 million, up
29.1% year-over-year.
- Contribution profit(1) was 80.0 million, a year-over-year
increase of 30.1%.
- Net income was $14.4 million and GAAP earnings per share was
$0.11. Non-GAAP net income(1) was $19.6 million and non-GAAP
earnings per share(1) was $0.15.
- Record adjusted EBITDA(1) was $24.6 million, representing a
30.7% adjusted EBITDA margin(1), a 58.2% increase in adjusted
EBITDA year-over-year.
- The Company processed 155.3 million transactions during the
third quarter of 2024, an increase of 34.6% from the third quarter
of 2023.
(1) Descriptions of the non-GAAP financial
measures adjusted gross profit, contribution profit, non-GAAP net
income, non-GAAP earnings per share, adjusted EBITDA, and adjusted
EBITDA margin 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.
Financial Guidance
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 and
the “Risk Factors” section of Paymentus’ most recent Form 10-K for
the fiscal year ended December 31, 2023, filed with the Securities
and Exchange Commission, or SEC, on March 5, 2024.
Fourth Quarter 2024
Fiscal-Year 2024
Revenue
$215 million to $220 million
$829 million to $834 million
Contribution Profit
$79 million to $81 million
$305 million to $307 million
Adjusted EBITDA
$22 million to $24 million
$89 million to $91 million
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 due to potential
variability, complexity and uncertainty as to the items that would
be excluded from the GAAP measure in the relevant future period.
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 today at 5:00 p.m. ET (2:00 p.m. PT)
to discuss its third quarter 2024 results and outlook for the
remainder of 2024. The live webcast and replay will be available at
the Investor Relations section of Paymentus’ website at
ir.paymentus.com or click here. To participate via telephone, dial
1-833-470-1428 (U.S. Toll-Free) or 1-404-975-4839 (International),
access code 361435. A replay will be available after 5:00 p.m. PT
on the same web site.
About Paymentus
Paymentus is a leading provider of cloud-based bill payment
technology and solutions for more than 2,200 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 bookings and backlog, our ability to
deliver near and longer-term growth and strategic objectives,
outlook for 2024, our future financial performance and our updated
fourth quarter and full-year 2024 financial guidance.
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; our ability to timely implement new
bookings and recognize anticipated revenue therefrom, our ability
to manage economic challenges, including inflation; the impact of
future 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; the impact of any
cybersecurity incidents; 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, 2023, filed with the SEC on
March 5, 2024, and subsequent Quarterly Reports on Form 10-Q,
including our Quarterly Report on Form 10-Q for the quarter ended
September 30, 2024, which we expect to file with the SEC shortly
after the date of this release. 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
We do not meaningfully reconcile guidance for adjusted EBITDA
and adjusted EBITDA margin, because we 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 our income tax provision and certain other
items we believe to be non-indicative of our ongoing operations.
Such adjustments may be affected by changes in ongoing assumptions
and judgments, 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. In addition, we do not
meaningfully reconcile guidance for contribution profit, because
the determination of contribution is subject to variables outside
our control, such as an increase in the average payment amount,
changes in the payment mix, or the payment channel used by
consumers that can influence contribution profit, and cannot be
determined without unreasonable effort, if at all.
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 adjusted gross
profit, contribution profit, non-GAAP net income (including those
amounts as a percentage of revenue), non-GAAP earnings per share,
adjusted EBITDA, adjusted EBITDA margin, non-GAAP operating expense
and free cash flow. 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.
Adjusted gross profit is defined as gross profit adjusted
for certain non-cash items, primarily stock-based compensation and
amortization of acquisition-related intangible assets and
capitalized software development costs.
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. Interchange and assessment fees paid by us to our
payment processors are excluded from 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.
Adjusted EBITDA is defined as net income before interest
income (expense), net, other income (expense), depreciation and
amortization of acquisition related intangible assets and
capitalized software development costs, and income taxes, adjusted
to exclude foreign exchange gain (loss), the effects of stock-based
compensation expense and certain nonrecurring expenses that
management believes are not indicative of ongoing operations.
Adjusted EBITDA margin is defined as adjusted EBITDA as a
percentage of contribution profit.
Non-GAAP operating expense is defined as total operating
expense excluding amortization of acquisition-related intangibles,
stock-based compensation and other nonrecurring expenses.
Management believes that the adjustment of acquisition-related
intangibles amortization supplements the GAAP information with a
measure that can be used to assess the comparability of operating
performance. Although we exclude amortization of
acquisition-related intangible assets from our non-GAAP expenses,
management believes that it is important for investors to
understand that such intangible assets were recorded as part of
purchase accounting and contribute to revenue generation.
Amortization of intangible assets that relate to past acquisitions
will recur in future periods until such intangible assets have been
fully amortized. Any future acquisitions may result in the
amortization of additional intangible assets.
Non-GAAP net income and non-GAAP EPS are defined
as net income and net income per share, respectively, excluding
stock-based compensation, amortization of acquisition-related
intangibles and certain nonrecurring items such as discrete tax
items, one-time expenses or other non-cash items.
We believe non-GAAP net income and non-GAAP EPS enhance the
understanding of our operating performance and enable more
meaningful period-to-period comparisons.
Free cash flow is defined as net cash provided by (used
in) operating activities less capital expenditures and capitalized
internal-use software development costs.
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.
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.
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited)
(In thousands, except share and
per share data)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Revenue
$
231,571
$
152,423
$
613,868
$
449,690
Cost of revenue
170,906
105,513
441,727
316,840
Gross profit
60,665
46,910
172,141
132,850
Operating expenses
Research and development
13,187
11,035
37,773
33,595
Sales and marketing
26,451
21,481
76,456
63,344
General and administrative
8,939
9,083
27,245
26,958
Total operating expenses
48,577
41,599
141,474
123,897
Income from operations
12,088
5,311
30,667
8,953
Interest income, net
2,342
1,905
6,722
5,003
Other income (expense)
5
(17
)
275
(32
)
Income before income taxes
14,435
7,199
37,664
13,924
Provision for income taxes
(5
)
(822
)
(6,644
)
(1,004
)
Net income
$
14,430
$
6,377
$
31,020
$
12,920
Net income per share
Basic
$
0.12
$
0.05
$
0.25
$
0.10
Diluted
$
0.11
$
0.05
$
0.24
$
0.10
Weighted-average number of shares used to
compute net income per share
Basic
124,538,195
123,620,260
124,251,147
123,430,652
Diluted
127,614,115
125,639,879
127,254,611
124,457,360
Comprehensive income
Net income
14,430
6,377
31,020
12,920
Foreign currency translation adjustments,
net of tax
(8
)
(64
)
(90
)
22
Comprehensive income
$
14,422
$
6,313
$
30,930
$
12,942
PAYMENTUS HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS (Unaudited)
(In thousands, except share and
per share data)
September 30,
December 31,
2024
2023
Assets
Current assets
Cash and cash equivalents
$
187,542
$
179,361
Restricted cash and cash equivalents
3,243
3,834
Accounts and other receivables, net of
allowance for expected credit losses of $354 and $435,
respectively
111,174
76,389
Income tax receivable
4,334
259
Prepaid expenses and other current
assets
13,804
10,505
Total current assets
320,097
270,348
Property and equipment, net
1,323
1,558
Capitalized internal-use software
development costs, net
65,993
58,787
Intangible assets, net
21,096
27,158
Goodwill
131,849
131,860
Operating lease right-of-use assets
8,610
10,027
Deferred tax asset
358
94
Other long-term assets
3,606
5,031
Total assets
$
552,932
$
504,863
Liabilities and Stockholders’
Equity
Current liabilities
Accounts payable
$
49,659
$
35,182
Accrued liabilities
20,299
21,301
Current portion of operating lease
liabilities
2,098
1,853
Contract liabilities
2,192
4,089
Income tax payable
—
363
Total current liabilities
74,248
62,788
Deferred tax liability
1
1,067
Operating lease liabilities, less current
portion
7,146
8,661
Contract liabilities, less current
portion
2,744
2,731
Total liabilities
84,139
75,247
Stockholders’ equity
Preferred stock, $0.0001 par value per
share, 5,000,000 shares authorized as of September 30, 2024 and
December 31, 2023; none issued and outstanding as of September 30,
2024 and December 31, 2023
—
—
Class A common stock, $0.0001 par value
per share, 883,950,000 shares authorized as of September 30, 2024
and December 31, 2023; 24,478,802 and 20,758,603 shares issued and
outstanding as of September 30, 2024 and December 31, 2023,
respectively
2
2
Class B common stock, $0.0001 par value
per share, 111,050,000 shares authorized as of September 30, 2024
and December 31, 2023; 100,126,384 and 103,062,508 shares issued
and outstanding as of September 30, 2024 and December 31, 2023,
respectively
10
10
Additional paid-in capital
386,020
377,773
Accumulated other comprehensive income
(3
)
87
Retained earnings
82,764
51,744
Total stockholders’ equity
468,793
429,616
Total liabilities and stockholders'
equity
$
552,932
$
504,863
PAYMENTUS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS (Unaudited)
(In thousands)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Cash flows from operating
activities
Net income
$
14,430
$
6,377
$
31,020
$
12,920
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation and amortization
9,321
7,772
26,827
22,314
Deferred income taxes
(1,510
)
91
(1,333
)
278
Stock-based compensation
3,168
2,456
9,424
6,891
Non-cash lease expense
608
442
1,806
1,346
Amortization of contract asset
514
756
1,395
2,197
Provision for (benefit from) expected
credit losses
(44
)
112
114
(122
)
Other non-cash adjustments
—
—
(213
)
—
Change in operating assets and
liabilities
Accounts and other receivables
(21,068
)
(7,806
)
(34,917
)
(6,941
)
Prepaid expenses and other current and
long-term assets
(4,498
)
(2,594
)
(4,579
)
(1,797
)
Accounts payable
6,399
2,929
14,349
4,279
Accrued liabilities
3,921
3,297
(197
)
4,188
Operating lease liabilities
(583
)
(448
)
(1,656
)
(1,364
)
Contract liabilities
(830
)
(625
)
(1,883
)
1,232
Income taxes receivable, net of
payable
(3,091
)
384
(4,436
)
(1,034
)
Net cash provided by operating
activities
6,737
13,143
35,721
44,387
Cash flows from investing
activities
Purchases of property and equipment
(72
)
(158
)
(376
)
(511
)
Purchase of interest-bearing deposits
(1,256
)
—
(2,569
)
—
Proceeds from matured interest-bearing
deposits
1,376
—
2,566
—
Capitalized internal-use software
development costs
(8,876
)
(8,728
)
(27,238
)
(25,339
)
Net cash used in investing activities
(8,828
)
(8,886
)
(27,617
)
(25,850
)
Cash flows from financing
activities
Proceeds from exercise of stock-based
awards
19
234
156
435
Settlement of holdback liability related
to prior acquisitions
(39
)
—
(545
)
—
Payments on other financing
obligations
—
—
—
(1,709
)
Payments on finance leases
—
—
—
(102
)
Net cash provided by (used in) financing
activities
(20
)
234
(389
)
(1,376
)
Effect of exchange rate changes on Cash
and cash equivalents and Restricted cash
16
(67
)
(125
)
46
Net increase in cash, cash equivalents and
Restricted cash
(2,095
)
4,424
7,590
17,207
Cash and cash equivalents and Restricted
cash at the beginning of period
192,880
162,468
183,195
149,685
Cash and cash equivalents and Restricted
cash at the end of period
$
190,785
$
166,892
$
190,785
$
166,892
Reconciliation of Cash and cash
equivalents and Restricted Cash:
Cash and cash equivalents at the beginning
of period
188,810
159,068
179,361
147,334
Restricted cash at the beginning of
period
4,070
3,400
3,834
2,351
Cash and cash equivalents and Restricted
cash at the beginning of period
$
192,880
$
162,468
$
183,195
$
149,685
Cash and cash equivalents at the end of
period
187,542
162,062
187,542
162,062
Restricted cash at the end of period
3,243
4,830
3,243
4,830
Cash and cash equivalents and Restricted
cash at the end of period
$
190,785
$
166,892
$
190,785
$
166,892
PAYMENTUS HOLDINGS, INC. GAAP to Non-GAAP
Reconciliations (Unaudited) (in thousands, except percentages and
per share data)
The following tables set forth our non-GAAP financial measures
with reconciliations to the most directly comparable GAAP financial
measures.
Adjusted Gross Profit
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
(in thousands)
Gross profit
$
60,665
$
46,910
$
172,141
$
132,850
Stock-based compensation
67
36
184
110
Amortization of capitalized software
development costs
4,627
3,493
13,022
9,473
Amortization of acquisition-related
intangibles
829
829
2,486
2,486
Adjusted gross profit
$
66,188
$
51,268
$
187,833
$
144,919
Contribution Profit
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
(in thousands)
Gross profit
$
60,665
$
46,910
$
172,141
$
132,850
Plus: other cost of revenue
19,339
14,583
53,711
41,764
Contribution profit
$
80,004
$
61,493
$
225,852
$
174,614
Adjusted EBITDA and Adjusted EBITDA Margin
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
(in thousands)
Net income — GAAP
$
14,430
$
6,377
31,020
$
12,920
Interest income, net
(2,342
)
(1,905
)
(6,722
)
(5,003
)
Other income (1)
—
—
(213
)
—
Provision for income taxes
5
822
6,644
1,004
Amortization of capitalized software
development costs
7,097
5,473
20,147
15,286
Amortization of acquisition-related
intangibles
2,020
2,095
6,061
6,359
Depreciation
204
204
619
669
EBITDA
$
21,414
$
13,066
$
57,556
$
31,235
Adjustments
Foreign exchange (gain) loss
(4
)
17
(61
)
32
Stock-based compensation
3,168
2,456
9,424
6,891
Adjusted EBITDA
$
24,578
$
15,539
$
66,919
$
38,158
Adjusted EBITDA margin
30.7
%
25.3
%
29.6
%
21.9
%
(1) Other income consists of a
remeasurement adjustment relating to the purchase price of a prior
acquisition.
PAYMENTUS HOLDINGS, INC. GAAP to Non-GAAP
Reconciliations (Unaudited) (in thousands, except percentages and
per share data)
Non-GAAP Operating Expense
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
(in thousands)
Operating expenses - GAAP
$
48,577
$
41,599
$
141,474
$
123,897
Stock-based compensation
(3,101
)
(2,420
)
(9,240
)
(6,781
)
Amortization of acquisition-related
intangibles
(1,192
)
(1,266
)
(3,576
)
(3,873
)
Non-GAAP operating expense
$
44,284
$
37,913
$
128,658
$
113,243
Non-GAAP Net Income & Non-GAAP EPS
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
(in thousands)
Net income — GAAP
$
14,430
$
6,377
$
31,020
$
12,920
Stock-based compensation
3,168
2,456
9,424
6,891
Amortization of acquisition-related
intangibles
2,020
2,095
6,061
6,359
Non-GAAP net income
$
19,618
$
10,928
$
46,505
$
26,170
Weighted-average shares of common stock —
diluted
127,614,115
125,639,879
127,254,611
124,457,360
Non-GAAP earnings per share —
diluted
$
0.15
$
0.09
$
0.37
$
0.21
Free Cash Flow
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
(in thousands)
Net cash provided by operating
activities
$
6,737
$
13,143
$
35,721
$
44,387
Purchases of property and equipment and
software
(72
)
(158
)
(376
)
(511
)
Capitalized internal-use software
development costs
(8,876
)
(8,728
)
(27,238
)
(25,339
)
Free cash flow
$
(2,211
)
$
4,257
$
8,107
$
18,537
Net cash used in investing activities
$
(8,828
)
$
(8,886
)
$
(27,617
)
$
(25,850
)
Net cash provided by (used in) financing
activities
$
(20
)
$
234
$
(389
)
$
(1,376
)
CATEGORY:EARNINGS
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241112090919/en/
At the Company Sanjay Kalra Chief Financial Officer
Paymentus Holdings, Inc. ir@paymentus.com
Investor Relations David Hanover paymentus@kcsa.com
Media Relations Tony Labriola
media-relations@paymentus.com
Paymentus (NYSE:PAY)
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