Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-40429

Paymentus Holdings, Inc.

(Exact Name of Registrant as Specified in its Charter)


Delaware	45-3188251
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
11605 North Community House Road, Suite 300 Charlotte, NC	28277
(Address of principal executive offices)	(Zip Code)

(888) 440-4826

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

    Title of each class

    Trading
Symbol(s)

    Name of each exchange on which registered

    Class A Common Stock, par value $0.0001 per share

    PAY

    New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 8, 2024, the registrant had 24,522,383 shares of Class A Common Stock, $0.0001 par value per share and 100,111,193 shares of Class B Common Stock, $0.0001 par value per share, outstanding.

Table of Contents


		Page
	Special Note Regarding Forward-Looking Statements	3

PART I.	FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets	5
	Condensed Consolidated Statements of Operations and Comprehensive Income	6
	Condensed Consolidated Statements of Stockholders' Equity	7
	Condensed Consolidated Statements of Cash Flows	9
	Notes to Condensed Consolidated Financial Statements	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26
Item 4.	Controls and Procedures	26

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	28
Item 1A.	Risk Factors	28
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28
Item 3.	Defaults Upon Senior Securities	28
Item 4.	Mine Safety Disclosures	28
Item 5.	Other Information	28
Item 6.	Exhibits	29
Signatures		30

Special Note Regarding Forward-Looking Statements

This quarterly report on Form 10-Q for the period ended September 30, 2024 (“Quarterly Report”) contains forward-looking statements within the meaning of the federal securities laws, such as those under the headings “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations,” which statements involve substantial risks and uncertainties. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements contained in this report may include statements about:

•

our ability to effectively manage our growth and expand our operations;

•

our ability to further attract, retain and expand our biller, financial institutions, partner and consumer base;

•

our ability to timely implement and recognize revenue from new customers;

•

our expectations regarding our revenue, expenses and other operating results;

•

the impact of any material cybersecurity incident on our reputation as a trusted brand or on our business, operating results and financial condition;

•

our market opportunity and anticipated trends in our business and industry;

•

our ability to remain competitive as we continue to scale our business;

•

our ability to develop new product features and enhance our platform;

•

our ability to hire and retain experienced and talented employees as we grow our business;

•

general economic conditions, including inflation, and their impact on us, consumer demand, average bill amounts and interchange fees, and the impact of changes from an evolving regulatory environment;

•

the impact of disruptions or instability in the financial services industry, or perceived or actual liquidity constraints at financial institutions, on our ability or the ability of our customers and vendors to meet operating expense requirements or to satisfy financial or other obligations;

•

our ability to realize the anticipated benefits of past or future acquisitions or strategic investments in complementary companies, products or technologies and our ability to manage the potential business disruption and diversion of management attention caused by such acquisitions;

•

our ability to maintain and enhance our brand;

•

our plan to expand into new channels and industry verticals across different markets;

•

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 international expansion plans and ability to expand internationally; and

•

those factors described in the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Conditions and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2023 and, where applicable, our subsequent Quarterly Reports on Form 10-Q, and the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Quarterly Report.

We caution you that the foregoing list may not contain all of the forward-looking statements made in this report.

You should not place undue reliance on our forward-looking statements as predictions of future events. We have based the forward-looking statements primarily on our current expectations and projections about future events and trends that we believe may affect our business, operating results, financial condition and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors, including those described in the section titled “Risk Factors” and elsewhere in this Quarterly Report. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this report. We cannot

assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.

Neither we nor any other person assumes responsibility for the ultimate outcome of any of these forward-looking statements. Moreover, the forward-looking statements made in this report relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this report to reflect events or circumstances after the date of this report or to reflect new information or the occurrence of unanticipated events, except as required by law.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this report, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information.

Certain Definitions

In this report, unless the context requires otherwise, all references to “we,” “our,” “us,” “Paymentus,” and the “Company” refer to Paymentus Holdings, Inc., and where appropriate its consolidated subsidiaries.

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

PAYMENTUS HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

(Unaudited)


	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

The accompanying notes are an integral part of these condensed consolidated financial statements.

PAYMENTUS HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(In thousands, except share and per share data)

(Unaudited)


	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

The accompanying notes are an integral part of these condensed consolidated financial statements.

PAYMENTUS HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands, except share amounts)

(Unaudited)


					Additional				Other			Total
	Common Stock				Paid-In		Retained		Comprehensive			Stockholders’
	Shares		Amount		Capital		Earnings		Income (Loss)			Equity
Balances at December 31, 2023		123,821,111	$	12	$	377,773	$	51,744	$	87		$	429,616
Stock-based compensation		—		—		2,484		—		—			2,484
Issuance of Class A common stock for stock-based awards		304,865		—		100		—		—			100
Other comprehensive loss		—		—		—		—		(42	)		(42	)
Net income		—		—		—		7,226		—			7,226
Balances at March 31, 2024		124,125,976	$	12	$	380,357	$	58,970	$	45		$	439,384
Stock-based compensation		—		—		2,882		—		—			2,882
Issuance of Class A common stock for stock-based awards		348,503		—		37		—		—			37
Other comprehensive loss		—		—		—		—		(40	)		(40	)
Net income		—		—		—		9,364		—			9,364
Balances at June 30, 2024		124,474,479	$	12	$	383,276	$	68,334	$	5		$	451,627
Stock-based compensation		—		—		2,725		—		—			2,725
Issuance of Class A common stock for stock-based awards		130,707		—		19		—		—			19
Other comprehensive income		—		—		—		—		(8	)		(8	)
Net income		—		—		—		14,430		—			14,430
Balances at September 30, 2024		124,605,186	$	12		386,020	$	82,764	$	(3	)	$	468,793


					Additional				Other			Total
	Common Stock				Paid-In		Retained		Comprehensive			Stockholders’
	Shares		Amount		Capital		Earnings		Income (Loss)			Equity
Balances at December 31, 2022		123,241,173	$	12	$	367,767	$	29,422	$	(22	)	$	397,179
Stock-based compensation		—		—		2,159		—		—			2,159
Issuance of Class A common stock for stock-based awards		104,991		—		5		—		—			5
Other comprehensive loss		—		—		—		—		(7	)		(7	)
Net income		—		—		—		704		—			704
Balances at March 31, 2023		123,346,164	$	12	$	369,931	$	30,126	$	(29	)	$	400,040
Stock-based compensation		—		—		2,276		—		—			2,276
Issuance of Class A common stock for stock-based awards		160,625		—		196		—		—			196
Other comprehensive income		—		—		—		—		93			93
Net income		—		—		—		5,839		—			5,839
Balances at June 30, 2023		123,506,789	$	12	$	372,403	$	35,965	$	64		$	408,444
Stock-based compensation		—		—		2,456		—		—			2,456
Issuance of Class A common stock for stock-based awards		185,159		—		235		—		—			235
Other comprehensive loss		—		—		—		—		(64	)		(64	)
Net income		—		—		—		6,377		—			6,377
Balances at September 30, 2023		123,691,948	$	12	$	375,094	$	42,342	$	—		$	417,448

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

PAYMENTUS HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)


	Nine Months Ended September 30,
	2024			2023
Cash flows from operating activities
Net income	$	31,020		$	12,920
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization		26,827			22,314
Deferred income taxes		(1,333	)		278
Stock-based compensation		9,424			6,891
Non-cash lease expense		1,806			1,346
Amortization of contract asset		1,395			2,197
Provision for (benefit from) expected credit losses		114			(122	)
Other non-cash adjustments		(213	)		—
Change in operating assets and liabilities
Accounts and other receivables		(34,917	)		(6,941	)
Prepaid expenses and other current and long-term assets		(4,579	)		(1,797	)
Accounts payable		14,349			4,279
Accrued liabilities		(197	)		4,188
Operating lease liabilities		(1,656	)		(1,364	)
Contract liabilities		(1,883	)		1,232
Income taxes receivable, net of payable		(4,436	)		(1,034	)
Net cash provided by operating activities		35,721			44,387
Cash flows from investing activities
Purchases of property and equipment		(376	)		(511	)
Purchase of interest-bearing deposits		(2,569	)		—
Proceeds from matured interest-bearing deposits		2,566			—
Capitalized internal-use software development costs		(27,238	)		(25,339	)
Net cash used in investing activities		(27,617	)		(25,850	)
Cash flows from financing activities
Proceeds from exercise of stock-based awards		156			435
Settlement of holdback liability related to prior acquisitions		(545	)		—
Payments on other financing obligations		—			(1,709	)
Payments on finance leases		—			(102	)
Net cash used in financing activities		(389	)		(1,376	)
Effect of exchange rate changes on Cash and cash equivalents and Restricted cash		(125	)		46
Net increase in cash, cash equivalents and Restricted cash		7,590			17,207
Cash and cash equivalents and Restricted cash at the beginning of period		183,195			149,685
Cash and cash equivalents and Restricted cash at the end of period	$	190,785		$	166,892
Reconciliation of Cash and cash equivalents and Restricted Cash:
Cash and cash equivalents at the beginning of period		179,361			147,334
Restricted cash at the beginning of period		3,834			2,351
Cash and cash equivalents and Restricted cash at the beginning of period	$	183,195		$	149,685
Cash and cash equivalents at the end of period		187,542			162,062
Restricted cash at the end of period		3,243			4,830
Cash and cash equivalents and Restricted cash at the end of period	$	190,785		$	166,892
Supplemental disclosure of cash flow information:
Cash paid for income taxes, net of refunds	$	12,419		$	1,718
Right-of-use assets obtained in exchange of operating lease obligations	$	466		$	1,356

The accompanying notes are an integral part of these condensed consolidated financial statements.

PAYMENTUS HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, unless otherwise stated)

(Unaudited)

1. Organization and Description of Business

Description of Business

Paymentus Holdings, Inc. and its wholly owned subsidiaries (“Paymentus” or the “Company”) provides electronic bill presentment and payment services, enterprise customer communication and self-service revenue management to billers through a Software-as-a-Service (“SaaS”), secure, omni-channel technology platform. The platform seamlessly integrates into a biller’s core financial and operating systems to provide flexible and secure access to payment processing of credit cards, debit cards, eChecks and digital wallets across a significant number of channels including online, mobile, IVR, call center, chatbot and voice-based assistants. Paymentus was incorporated in the state of Delaware on September 2, 2011 with office locations in Charlotte, North Carolina, Dallas, Texas, Santa Clara, California, Richmond Hill, Ontario (Canada), and Gurugram, Mohali and Bangalore (India). The Company is headquartered in Charlotte, North Carolina.

2. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited interim condensed consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the United States Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all disclosures normally required in annual consolidated financial statements prepared in accordance with GAAP. Therefore, these unaudited condensed consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements and the related notes included in the Company's Form 10-K for the year ended December 31, 2023 filed with the SEC on March 5, 2024 (the “2023 Form 10-K”).

These unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the Company’s financial position, results of operations and comprehensive income, changes in stockholders' equity and cash flows for the periods presented. The results of operations for the three and nine months ended September 30, 2024 and 2023 are not necessarily indicative of the results to be expected for the full year or any other future interim or annual period.

Principles of Consolidation

The unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and balances have been eliminated upon consolidation.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Such estimates include revenue recognition, cost of revenue recognition, the allowance for credit losses, the lives of tangible and intangible assets, the valuation of acquired intangible assets and the recoverability or impairment of intangible assets, including goodwill, internal-use software development costs, valuation of stock warrants issued, stock-based compensation, and accounting for income taxes. The Company bases its estimates on historical experience and also on assumptions that management considers reasonable. The Company assesses these estimates on a regular basis; however, actual results could differ from these estimates.

Custodial Accounts

The Company has established a relationship with its merchant processors to act as collection and paying agents, whereby a merchant processor receives funds from customers and forwards such funds to the respective Paymentus client, based on the instructions received from the Company. These merchant processors act as custodians of the cash received, and the Company has no legal ownership rights to the funds held in such custodial accounts and does not control the use of these funds. As the Company does not take ownership of the funds, these custodial accounts are not included in the Company’s consolidated balance sheets. The balance of cash in the custodial accounts held by these merchant processors was $123.3 million and $510.8 million as of September 30, 2024 and December 31, 2023, respectively.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to credit risk primarily consist of cash, cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents with high-quality financial institutions with investment-grade ratings. For accounts receivable, the Company is exposed to credit risk in the event of nonpayment by customers and resellers to the extent of the amounts recorded in the consolidated balance sheets. No customer accounted for more than 10% of revenue for either of the three or nine months ended September 30, 2024 and 2023. As of December 31, 2023 and September 30, 2024 one reseller accounted for more than 10% of accounts receivable.

Segment Information

Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to make operating decisions, allocate resources and assess performance. The Company has three operating segments based on geography. The United States segment represents the vast majority of the Company’s consolidated net sales and gross profit. The additional two operating segments, Canada and India, do not meet the quantitative thresholds for separate reporting, either individually or in the aggregate. None of the operating segments qualified for aggregation. The Company’s CODM is its chief executive officer. The CODM evaluates the performance of the Company’s operating segments based on revenue and gross profit. The Company does not analyze discrete segment balance sheet information related to long-term assets. All other financial information is presented on a consolidated basis. For information regarding the Company’s long-lived assets and revenue by geographic area, see Note 4 and Note 3, respectively.

Summary of Significant Accounting Policies

The Company’s significant accounting policies are discussed in Note 2, “Basis of Presentation and Summary of Significant Accounting Policies,” in the Notes to Consolidated Financial Statements as of December 31, 2023 and 2022 and for the years ended December 31, 2023, 2022 and 2021 included in the 2023 Form 10-K. There have been no significant changes to these policies during the three and nine months ended September 30, 2024.

Recently Adopted Accounting Standards

The Company is provided the option to adopt new or revised accounting guidance as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 either (1) within the same periods as those otherwise applicable to public business entities, or (2) within the same time periods as non-public business entities, including early adoption when permissible. With the exception of standards the Company elected to early adopt, when permissible, the Company has elected to adopt new or revised accounting guidance within the same time period as non-public business entities, as indicated below.

Accounting Standards Updates ("ASU") not listed below were assessed and determined to be either not applicable or are not expected to have a material impact on the consolidated financial statements.

Accounting Pronouncements Not Yet Adopted

In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements under ASU 2023-07 are also required for public entities with a single reportable segment. The amendments in ASU 2023-07 are effective for public companies for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the potential impact of adopting this new guidance on our condensed consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09 "Income Tax Disclosures", which makes changes to annual disclosures of income taxes paid for all entities and requires entities to disclose the amount of income taxes paid, net of refunds received, disaggregated by federal, state and foreign jurisdiction. Additionally, entities are required to disclose income taxes paid, net of refunds received, for individual jurisdictions that comprise 5% or more of total income taxes paid. The 5% threshold is evaluated using the absolute value of the net refund or net payment in each jurisdiction compared to the absolute value of the total income taxes paid (net of refunds received). ASU 2023-09 requires all entities to disclose disaggregated domestic and foreign pre-tax income (or loss) from continuing operations along with disaggregated income tax expense (or benefit) by federal, state and foreign components. Such disaggregation by jurisdiction should classify taxes by jurisdiction based on the jurisdiction imposing the taxes. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024 for public companies. Early adoption is permitted. We are currently evaluating the potential impact of adopting this new guidance on our condensed consolidated financial statements and related disclosures.

3. Revenue, Performance Obligations and Contract Balances

Disaggregation of Revenue

The following table presents a disaggregation of revenue from contracts with customers:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(in thousands)
Payment transaction processing revenue	$	228,826	$	150,500	$	605,142	$	443,565
Other		2,745		1,923		8,726		6,125
Total revenue	$	231,571	$	152,423	$	613,868	$	449,690

Revenue by geographic area, based on the location of the Company’s users, was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(in thousands)
United States	$	227,788	$	149,526	$	602,572	$	441,029
Other		3,783		2,897		11,296		8,661
Total	$	231,571	$	152,423	$	613,868	$	449,690

Remaining Performance Obligations

As of September 30, 2024, the aggregate amount of transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied was $4.9 million, of which the Company expects to recognize over 68% within the next two years, 24% between two to four years and the remainder thereafter. The timing of revenue recognition within the next four years is largely dependent upon the go-live dates of the Company's customers under the Company’s contracts.

As of September 30, 2024, the Company has contractual rights under its commercial agreements with customers and resellers to receive $79.5 million of fixed consideration related to the future minimum guarantees through 2029. As permitted, the Company has elected to exclude from this disclosure any variable consideration that meets specified criteria. Accordingly, the total unsatisfied or partially unsatisfied performance obligations related to processing services is significantly higher than the amount disclosed.

Contract Balances

Contract balances consist of the following:


	September 30,		December 31,
	2024		2023
	(in thousands)
Contract Assets included under:
Prepaid expenses and other current assets	$	2,893	$	2,893
Other long-term assets		3,397		4,783
Total contract assets	$	6,290	$	7,676
Contract Liabilities:
Current	$	2,192	$	4,089
Non-current		2,744		2,731
Total contract liabilities	$	4,936	$	6,820

The amortization of related contract assets included in the condensed consolidated statements of operations and comprehensive income was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(in thousands)
Revenue	$	153	$	635	$	459	$	1,888
Sales and marketing		740		121		2,268		308
Total amortization of contact assets	$	893	$	756	$	2,727	$	2,196

Revenue recognized during the three months ended September 30, 2024 and 2023 that was included in the contract liabilities balance at the beginning of each of the periods was $1.1 million and $0.5 million, respectively. Revenue recognized during the nine months ended September 30, 2024 and 2023 that was included in the contract liabilities balance at the beginning of each of the periods was $3.6 million and $1.4 million, respectively.

4. Property and Equipment, net

Property and equipment, net consisted of the following:


	September 30,			December 31,
	2024			2023
	(in thousands)
Computer equipment	$	6,293		$	6,059
Furniture and fixtures		1,796			1,715
Leasehold improvements		391			396
Total property and equipment		8,480			8,170
Less: Accumulated depreciation		(7,157	)		(6,612	)
Property and equipment, net	$	1,323		$	1,558

Depreciation expense recorded for property and equipment was $0.2 million and $0.2 million for the three months ended September 30, 2024 and 2023, respectively, and $0.6 million and $0.7 million for nine months ended September 30, 2024 and 2023, respectively.

The geographic locations of the Company’s long-lived assets, comprising property and equipment, based on physical location of the assets were as follows:


	September 30,		December 31,
	2024		2023
	(in thousands)
United States	$	516	$	558
Other		807		1,000
Total	$	1,323	$	1,558

5. Goodwill, Internal-use Software Development Costs and Intangible Assets

Goodwill

The changes in the carrying amount of goodwill by reporting unit were as follows (in thousands):


	United States		Other			Total
Balance as of December 31, 2023	$	131,028	$	832		$	131,860
Foreign currency translation adjustments		—		(11	)		(11	)
Balance as of September 30, 2024	$	131,028	$	821		$	131,849

Internal-use Software Development Costs

During the three months ended September 30, 2024 and 2023, the Company capitalized $9.0 million and $8.7 million in software development and implementation costs, respectively, and during the nine months ended September 30, 2024 and 2023, the Company capitalized $27.4 million and $25.3 million in software development and implementation costs, respectively.

During the three months ended September 30, 2024 and 2023, the Company recorded $4.6 million and $3.5 million of amortization expense in cost of revenue, respectively, and $2.5 million and $2.0 million of amortization expense in operating expenses, respectively. During the nine months ended September 30, 2024 and 2023, the Company recorded $13.0 million and $9.5 million of amortization expense in cost of revenue, respectively, and $7.1 million and $5.8 million of amortization expense in operating expenses, respectively.

Intangible Assets

Intangible assets, net consisted of the following (in thousands):


	September 30, 2024
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Technology	$	21,833	$	(17,767	)	$	4,066
Customer relationship		31,991		(15,917	)		16,074
Software and license		2,962		(2,946	)		16
Trademark		4,038		(3,098	)		940
Total	$	60,824	$	(39,728	)	$	21,096


	December 31, 2023
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Technology	$	21,845	$	(14,951	)	$	6,894
Customer relationship		32,006		(13,480	)		18,526
Software and license		3,019		(2,979	)		40
Trademark		4,038		(2,340	)		1,698
Total	$	60,908	$	(33,750	)	$	27,158

Amortization expense of intangible assets was $2.0 million and $2.1 million for the three months ended September 30, 2024 and 2023, respectively, and $6.1 million and $6.4 million for the nine months ended September 30, 2024 and 2023, respectively.

As of September 30, 2024, future expected amortization expense is as follows (in thousands):


Years Ending December 31,
2024 (remaining 3 months)	$	2,036
2025		6,604
2026		3,738
2027		3,269
2028		3,269
Thereafter		2,180
Total future amortization expense	$	21,096

There were no impairments of goodwill, internal-use software development costs or intangible assets in the three or nine months ended September 30, 2024 and 2023.

6. Accrued Liabilities

The composition of accrued liabilities is as follows:


	September 30,		December 31,
	2024		2023
	(in thousands)
Payroll and employee-related expenses	$	14,129	$	15,455
Other accrued liabilities		6,170		5,846
Total	$	20,299	$	21,301

7. Commitments and Contingencies

Other Commitments

The Company has entered into certain non-cancellable agreements for software and marketing services that specify all significant terms, including fixed or minimum services to be used, pricing provisions and the approximate timing of the transaction. Obligations under contracts that are cancellable or with remaining terms of 12 months or less are not included. There have been no material changes to the Company's contractual obligations or commitments outside of the ordinary course of business as compared to those described in the 2023 Form 10-K.

Legal Matters

The Company is involved from time to time in various claims and legal proceedings arising in the ordinary course of business. From time to time as appropriate, the Company accrues liabilities related to legal claims in its financial statements. While it is not feasible to predict or determine the ultimate outcome of these matters, the Company believes that, as of September 30, 2024, no current claims and legal proceedings will have a material adverse effect on its financial position, results of operations, or cash flows.

Indemnification

The Company enters into indemnification provisions under agreements with other parties in the ordinary course of business, including business partners, investors, contractors, customers, and the Company’s officers, directors, and certain employees. The Company has agreed to indemnify and defend the indemnified party claims and related losses suffered or incurred by the indemnified party from actual or threatened third-party claims due to the Company’s activities or non-compliance with obligations or representations made by the Company. The Company seeks to limit, or cap, its indemnification exposure in its commercial and other contracts. It is not possible to determine the maximum potential loss under these indemnification provisions due to the Company’s limited history of prior indemnification claims and the unique facts and circumstances involved in each particular provision.

8. Equity

Warrant

On May 13, 2021, the Company entered into a warrant agreement with JPMC Strategic Investments I Corporation (“JPMC”), an affiliate of J.P. Morgan Securities LLC, an underwriter in our 2021 initial public offering ("IPO"), pursuant to which the Company agreed to issue a warrant to JPMC for up to 509,370 shares of Class A common stock upon completion of the IPO at an exercise price of $18.38 per share (the “May 2021 warrant agreement”). Upon completion of the IPO, 382,027 of the warrant shares vested and were exercisable. The vesting of the remaining 127,343 shares of Class A common stock underlying the warrant will be subject to the achievement of certain commercial milestones through December 31, 2025 pursuant to a related commercial agreement with JPMorgan Chase Bank, National Association (“JPM Chase”), an affiliate of JPMC. As discussed below, this commercial agreement was amended in August 2022, and the achievement of certain commercial milestones was extended through December 31, 2026 and minimum revenue commitments were set for each of the calendar years through 2026. As of September 30, 2024, 448,880 warrant shares were vested and exercisable under the May 2021 warrant agreement.

On August 29, 2022, the Company entered into a second warrant agreement with JPMC, in connection with an amendment to the Company's existing commercial agreement with JPM Chase discussed above, pursuant to which the Company issued a warrant to JPMC for up to 684,510 shares of Class A common stock at an exercise price of $10.10 per share (the “August 2022 warrant agreement”). Upon signing the August 2022 warrant agreement, 171,128 of the warrant shares vested and were exercisable. The vesting of the remaining 513,382 shares of Class A common stock underlying the warrant will be subject to the achievement of certain commercial milestones through December 31, 2026 pursuant to the commercial agreement, as amended. As of September 30, 2024 there were no additional warrant shares vested under the August 2022 warrant agreement.

As of September 30, 2024, an aggregate of 620,008 warrants had vested and were exercisable under the outstanding warrant agreements.

The Company accounts for the consideration payable in the form of warrants to its vendor as share based compensation expense. The warrant fair value was determined using the Black-Scholes pricing model in accordance with ASC 718, Compensation-Stock Compensation.

9. Stock-Based Compensation

In May 2021, the Company’s board of directors (the "Board") adopted, and its stockholders approved, the 2021 Equity Incentive Plan (the “2021 Plan”), which became effective in connection with the IPO. The 2021 Plan provides for the grant

of incentive stock options, within the meaning of Section 422 of the Internal Revenue Code ("IRC"), to the Company’s employees and any of its parent or subsidiary corporations’ employees, and for the grant of non-statutory stock options, restricted stock, restricted stock units, stock appreciation rights, and performance awards to the Company’s employees, directors and consultants and any of its parent or subsidiary corporations’ employees and consultants. A total of approximately 10.5 million shares of the Company’s Class A common stock have been reserved for issuance under the 2021 Plan in addition to (i) an annual increase of 4% of the outstanding shares of the Company's common stock, with Class A and Class B common stock taken together, on the first day of each fiscal year, subject to the Compensation Committee of the Board exercising discretion to increase or decrease such amount (the “Evergreen Addition”), and (ii) upon the expiration, forfeiture, cancellation, or reacquisition of any shares of Class B common stock underlying outstanding stock awards granted under the 2012 Equity Incentive Plan, an equal number of shares of Class A common stock, such number of shares not to exceed 7.6 million shares. On January 1, 2024, pursuant to the Evergreen Addition, approximately 5 million shares of Class A common stock were added to the 2021 Plan issuance reserve. At September 30, 2024, there were approximately 21.8 million remaining shares available for the Company to grant under the 2021 Plan.

Stock Options

A summary of the Company’s option activity during the nine months ended September 30, 2024 was as follows (in thousands, except for share and per share amount):


						Weighted-
				Weighted-		Average
				Average		Remaining		Aggregate
	Options			Exercise Price		Contractual		Intrinsic
	Outstanding			per Share		Life (years)		Value
Outstanding at December 31, 2023		3,849,350		$	7.87		5.06	$	38,505
Options exercised		(209,459	)		0.74
Options forfeited		(2,333	)		8.66
Outstanding at September 30, 2024		3,637,558		$	8.28		4.46	$	42,705
Exercisable at September 30, 2024		3,610,609		$	8.27		4.45	$	42,407

No options were granted or expired during the nine months ended September 30, 2024. Aggregate intrinsic value represents the difference between the exercise price of the options and the fair value of the Company’s common stock.

Restricted Stock Units (“RSUs”)

A summary of the Company’s RSU activity during the nine months ended September 30, 2024 was as follows:


				Weighted-
	Number of			Average
	RSUs			Grant Date
	Outstanding			Fair Value
Awarded and unvested at December 31, 2023		1,946,006		$	12.74
Awards granted		1,045,344			19.23
Awards vested		(573,116	)		12.62
Awards forfeited		(188,826	)		11.66
Awarded and unvested at September 30, 2024		2,229,408		$	15.90

The fair value of RSU grants is determined based upon the market closing price of the Company’s Class A common stock on the date of grant. RSUs vest over the requisite service period, which generally ranges between four years and five years from the date of grant for employees and one to three years for directors, subject to continued employment for employees and provision of services for non-employees.

Stock-based compensation expense included in the condensed consolidated statements of operations and comprehensive income was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(in thousands)
Cost of revenue	$	67	$	36	$	184	$	110
Research and development		823		484		2,277		1,492
Sales and marketing		1,331		690		4,135		2,096
General and administrative		947		1,246		2,828		3,193
Total stock-based compensation	$	3,168	$	2,456	$	9,424	$	6,891

At September 30, 2024, there was $0.1 million of total unrecognized compensation cost related to unvested stock options granted under the 2012 Equity Incentive Plan, which is expected to be recognized over a remaining weighted-average period of 1.1 years.

At September 30, 2024, there was $32.0 million of total unrecognized compensation cost related to unvested RSUs granted under the 2021 Plan, which is expected to be recognized over a remaining weighted-average period of 3.4 years.

10. Income Taxes

The Company computes its tax provision for the three and nine months ended September 30, 2024 by applying the estimated annual effective tax rate to year-to-date income from recurring operations and adjusting for discrete items arising in that quarter. During the current quarter, given demonstrated profitability net of permanent adjustments now resulting in cumulative income in recent years and other positive factors including the utilization of federal net operating losses and continued forecasted profitability, the Company has determined to release its valuation allowance against most US deferred tax assets, resulting in a discrete benefit for the three months ended September 30, 2024.

The Company’s effective tax rate for the three and nine months ended September 30, 2024 was 0.03% and 17.6%, respectively, and for the three and nine months ended September 30, 2023 was 11.4% and 7.2%, respectively. The difference between the Company’s effective tax rate and the U.S. federal statutory rate of 21% in 2024 was primarily due to the determination to release a valuation allowance against deferred tax assets in the US. In addition, the Company recorded certain discrete benefits related to excess tax benefits on stock-based compensation and research and development credit claims that were finalized during the three months ended September 30, 2024. In 2023, the difference between the Company’s effective tax rate and the US federal statutory rate of 21% was primarily the result of changes in the Company's net US deferred tax assets and corresponding valuation allowance.

The Company forecasts an estimated effective tax rate in 2024, exclusive of discrete benefits, of 27%, which primarily differs from the US federal statutory rate due to state taxes and permanent differences on nondeductible compensation.

11. Net Income per Share Attributable to Common Stock

Basic net income per share attributable to common stock is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period.

Diluted net income per share attributable to common stock is computed by giving effect to all potentially dilutive common stock equivalents to the extent they are dilutive. The dilutive effect of outstanding options, RSUs and warrants is reflected in diluted net income per share attributable to common stock by application of the treasury stock method. The calculation of diluted net income per share attributable to common stock excludes all anti-dilutive common shares.

The rights of the holders of Class A and Class B common stock are identical, except with respect to voting and conversion. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis to each class of common stock and the resulting basic and diluted net income per share attributable to common stockholders are, therefore, the same for both Class A and Class B common stock on both an individual and combined basis.

The following table sets forth the computation of basic and diluted net income per share attributable to common stock (in thousands, except for share and per share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Numerator:
Net income	$	14,430	$	6,377	$	31,020	$	12,920
Denominator:
Weighted-average shares of common stock — basic		124,538,195		123,620,260		124,251,147		123,430,652
Dilutive effect of stock options to purchase common stock		2,210,027		1,548,680		2,178,842		868,922
Dilutive effect of RSUs		721,882		429,863		714,991		153,330
Dilutive effect of warrants		144,011		41,076		109,631		4,456
Weighted-average shares of common stock — diluted		127,614,115		125,639,879		127,254,611		124,457,360
Net income per share
Basic	$	0.12	$	0.05	$	0.25	$	0.10
Diluted	$	0.11	$	0.05	$	0.24	$	0.10

The following table summarizes the weighted average securities that were excluded from the computation of diluted net income per share attributable to common stock as their inclusion would have been antidilutive:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Stock options to purchase common stock		—		—		—		103,804
RSUs		150,723		580,102		200,322		1,149,853
Warrants		—		417,045		—		417,045

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

We are a leading provider of cloud-based bill payment technology and solutions. We deliver our next-generation product suite through a modern technology stack to more than 2,200 biller business and financial institution clients. Our platform was used by approximately 34 million consumers and businesses in North America in December 2023 to pay their bills, make money movements and engage with our clients. We serve billers of all sizes that primarily provide non-discretionary services across a variety of industry verticals, including utilities, financial services, insurance, government, telecommunications, real estate management, healthcare and education. We also serve financial institutions by providing them with a modern platform that their customers use for bill payment, account-to-account transfers and person-to-person transfers. By powering this comprehensive network of billers and financial institutions, each with their own set of bill payment requirements, we believe we have created an enviable feedback loop that enables us to continuously drive innovation, grow our business and uniquely improve the electronic bill payment experience for participants in the bill payment ecosystem.

Our platform provides our clients with easy-to-use, flexible and secure electronic bill payment experiences powered by an omni-channel payment infrastructure that allows consumers to pay their bills using their preferred payment type and channel. Because our biller platform is developed on a single code base and leverages a SaaS infrastructure, we can rapidly deploy new features and tools to our entire biller base simultaneously. Through a single point of integration to our billers’ core financial and operating systems, our mission-critical solutions provide our billers with a payments operating system that helps them collect revenue faster and more profitably and empower their consumers with the information and transparency needed to control their finances.

Transactions Processed


	Three Months Ended September 30,							Nine Months Ended September 30,
	2024		2023		% Growth			2024		2023		% Growth
	(in millions)							(in millions)
Transactions processed		155.3		115.4		34.6	%		431.0		333.4		29.3	%

We define transactions processed as the number of revenue generating payment transactions, such as checks, credit card and debit card transactions, automated clearing house, or ACH, items and emerging payment types, which are initiated and generally processed through our platform during a period. The number of transactions also includes account-to-account and person-to-person transfers. The increase in the number of transactions processed during the three and nine months ended September 30, 2024 as compared to the same periods in 2023 was primarily driven by the addition of new billers and financial institutions and increased transactions from our existing billers and financial institutions.

Other Key Factors and Trends Affecting Our Operating Results

The discussion below includes a number of forward-looking statements regarding our future performance. For a discussion of important factors, including the continuing development of our business and other factors which could cause actual results to differ materially from matters referred to below, see the discussions under “Risk Factors” and “Special Note Regarding Forward-Looking Statements” herein and in our Form 10-K for the year ended December 31, 2023 or, the "2023 Form 10-K".

Impact of Economic and Inflationary Trends

Inflationary pressures have moderated, with price increases occurring at a reduced pace, and current expectations indicate further deceleration in inflation. However, economic uncertainty persists and may continue to present challenges to our performance for the remainder of 2024 and into 2025. While inflationary conditions have stabilized, elevated costs, particularly in the utility sector, and higher interchange fees remain impactful. We are proactively adjusting pricing to mitigate these pressures; however, the timing of our adjustments typically lags the inflationary effects experienced by our clients. We will remain vigilant in monitoring the economic landscape and will implement further pricing adjustments as necessary to address ongoing market dynamics.

Non-GAAP Measures

We use supplemental measures of our performance that are derived from our consolidated financial information but which are not presented in our consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles, or GAAP. These supplemental non-GAAP measures include contribution profit, adjusted gross profit, adjusted EBITDA and free cash flow.

Contribution Profit

We calculate contribution profit 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

We calculate adjusted gross profit as gross profit adjusted for non-cash items, primarily stock-based compensation and amortization of acquisition-related intangible assets and capitalized software development costs.

Adjusted EBITDA

We calculate adjusted EBITDA as net income before interest income, net, other income (expense), depreciation and amortization of acquisition-related intangible assets and capitalized software development costs, and income taxes, adjusted to exclude the effects of foreign exchange gains (losses), stock-based compensation expense and certain nonrecurring expenses that management believes are not indicative of ongoing operations.

Free Cash Flow

We calculate free cash flow as net cash provided by (used in) operating activities less capital expenditures, other intangible assets acquired, and capitalized internal-use software development costs.

How we use Non-GAAP Measures

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. Moreover, 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 product or 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. There are limitations to the use of the non-GAAP measures presented in this report. 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 also urge you to review the reconciliation of these non-GAAP financial measures included below. To properly and prudently evaluate our business, we encourage you to review the condensed consolidated financial statements and related notes included elsewhere in this report and to not rely on any single financial measure to evaluate our business.

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

In general, contribution profit is driven by the number of transactions we process offset by network fees associated with processing those transactions. The amount of contribution profit per transaction may vary due to a variety of factors substantially outside of our control, including client size, type and industry as well as whether the client is a biller, financial institution or other partner. Contribution profit for the three and nine months ended September 30, 2024 increased approximately 30.1%, and 29.3%, respectively, as compared to the same periods in 2023. The increase was primarily driven by growth in transaction count and volume driven by the addition of new billers and financial institutions and increased transactions from our existing billers and financial institutions.

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

Adjusted gross profit for the three and nine months ended September 30, 2024 increased 29.1% and 29.6%, respectively, as compared to the same periods in 2023. Adjusted gross profit improved in line with contribution profit. Adjusted gross profit as a percentage of contribution profit remained consistent for the three and nine months ended September 30, 2024. Adjusted gross profit is driven primarily by the same factors that impact gross profit with the exception of excluding the amortization and stock-based compensation recorded in cost of revenue. The increase in amortization was driven by additional capitalization of software costs.

Adjusted EBITDA


	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

(1) Other income consists of a remeasurement adjustment relating to the purchase price of a prior acquisition.

Adjusted EBITDA is a measure of profitability and generally is expected to move in line with revenue, contribution profit, gross profit and adjusted gross profit. Adjusted EBITDA increased 58.2% and 75.4% in the three and nine months ended September 30, 2024, respectively, as compared to the same periods in 2023. The increase was primarily driven by growth in transaction count and volume driven by the addition of new billers and financial institutions and increased transactions from our existing billers and financial institutions and the implementation of certain cost improvement measures.

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	)

The decrease in free cash flow for the three and nine months ended September 30, 2024, as compared to the same periods in 2023, was primarily due to decreases in cash generated from operations.

Results of Operations

The following table sets forth our condensed consolidated statements of operations for the periods presented:


	Three Months Ended September 30,						Change						Nine Months Ended September 30,						Change
	2024			2023			$			%			2024			2023			$			%
	(in thousands)												(in thousands)
Revenue	$	231,571		$	152,423		$	79,148			51.9	%	$	613,868		$	449,690		$	164,178			36.5	%
Cost of revenue		170,906			105,513			65,393			62.0	%		441,727			316,840			124,887			39.4	%
Gross profit		60,665			46,910			13,755			29.3	%		172,141			132,850			39,291			29.6	%
Gross margin (1)		26.2	%		30.8	%								28.0	%		29.5	%
Operating expenses
Research and development		13,187			11,035			2,152			19.5	%		37,773			33,595			4,178			12.4	%
Sales and marketing		26,451			21,481			4,970			23.1	%		76,456			63,344			13,112			20.7	%
General and administrative		8,939			9,083			(144	)		(1.6	)%		27,245			26,958			287			1.1	%
Total operating expenses		48,577			41,599			6,978			16.8	%		141,474			123,897			17,577			14.2	%
Income from operations		12,088			5,311			6,777		n/m				30,667			8,953			21,714		n/m
Interest income, net		2,342			1,905			437			22.9	%		6,722			5,003			1,719			34.4	%
Other income (expense) (2)		5			(17	)		22		n/m				275			(32	)		307		n/m
Income before income taxes		14,435			7,199			7,236		n/m				37,664			13,924			23,740		n/m
Provision for income taxes		(5	)		(822	)		817			(99.4	)%		(6,644	)		(1,004	)		(5,640	)	n/m
Net income	$	14,430		$	6,377		$	8,053		n/m			$	31,020		$	12,920		$	18,100		n/m

________________

n/m - not meaningful

(1) Gross margin is calculated as gross profit divided by revenue.

(2) Other income (expense) includes a remeasurement adjustment relating to the purchase price of a prior acquisition.

The following table presents the components of our condensed consolidated statements of operations for the periods presented as a percentage of revenue:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Revenue		100.0	%		100.0	%		100.0	%		100.0	%
Cost of revenue		73.8	%		69.2	%		72.0	%		70.5	%
Gross profit		26.2	%		30.8	%		28.0	%		29.5	%
Operating expenses
Research and development		5.7	%		7.2	%		6.20	%		7.5	%
Sales and marketing		11.4	%		14.1	%		12.50	%		14.1	%
General and administrative		3.9	%		6.0	%		4.40	%		6.0	%
Total operating expenses		21.0	%		27.3	%		23.1	%		27.6	%
Income from operations		5.2	%		3.5	%		5.0	%		1.9	%
Interest income, net		1.0	%		1.2	%		1.1	%		1.1	%
Other income (expense)		0.0	%		0.0	%		0.0	%		0.0	%
Income before income taxes		6.2	%		4.7	%		6.1	%		3.0	%
Provision for income taxes		—			(0.5	)%		(1.1	)%		(0.2	)%
Net income		6.2	%		4.2	%		5.0	%		2.8	%

Comparison of the Three Months Ended September 30, 2024 and 2023

Revenue

The increase in revenue was primarily driven by an increase in the number of transactions processed, which was driven by the implementation of new billers, the early launch of certain large enterprise billers and increased transactions from our existing billers.

Cost of Revenue, Gross Profit and Gross Margin

The increase in cost of revenue was driven by the increase in revenue and transactions processed, as it consists primarily of interchange fees and processor costs, as well as other direct costs associated with making our platform available to our billers.

Gross margin decreased due to changes in customer mix resulting primarily from the addition of large high volume enterprise billers with lower margins to our customer base.

Research and Development Expenses

The increase in research and development expenses was primarily due to increased amortization of capitalized internal-use software development costs and an increase in employee-related costs, including an increase in stock-based compensation expenses.

Sales and Marketing Expenses

The increase in sales and marketing expenses was primarily due to increased employee-related costs as a result of increased hiring, including higher stock-based compensation expenses, and reseller commissions including amortization of warrants.

General and Administrative Expenses

The marginal decrease in general and administrative expenses was primarily due to lower cost of insurance premiums of certain business policies and stock-based compensation expenses, which were offset by an increase in legal fees.

Interest Income, net

The increase in interest income, net was a result of higher cash balances held with banks for the three months ended September 30, 2024 compared to the same period in 2023.

Income Taxes

For the three months ended September 30, 2024, the Company’s effective tax rate was 0.03%, lower than the 11.41% in the same period of 2023. The primary driver for the lower rate in 2024 was the release of a valuation allowance on U.S. deferred tax assets, while the 2023 rate was influenced by a full valuation allowance. Additionally, in 2024, the Company

recognized discrete benefits related to stock-based compensation and finalized research and development credit claims, further lowering the effective tax rate.

Comparison of the Nine Months Ended September 30, 2024 and 2023

Revenue

The increase in revenue was primarily driven by an increase in the number of transactions processed, which was driven by the implementation of new billers and increased transactions from our existing billers. Revenue increase was also driven by pricing improvements.

Cost of Revenue, Gross Profit and Gross Margin

Gross margin experienced a slight decrease, driven by changes in customer mix resulting primarily from the addition of large, high-volume enterprise billers with lower margins in our biller mix. This decline was partially offset by cost improvement initiatives and the realization of economies of scale.

Research and Development Expenses

Sales and Marketing Expenses

General and Administrative Expenses

The marginal increase in general and administrative expenses was primarily due to increases in professional fees, legal fees and lease expenses, which were offset by lower cost of insurance premiums of certain business policies.

Interest income, net

The increase in interest income, net was a result of higher cash balances held with banks for the nine months ended September 30, 2024 compared to the same period in 2023, together with increases in the Federal Reserve rates.

Income Taxes

The change in provision for income taxes as well as the increase in the Company's effective tax rate, which was 17.6% for the nine months ended September 30, 2024 as compared to 7.2% for the same period in the prior year, was primarily due to an increase in income before income taxes as well as the results of permanent differences for disallowed stock-based compensation pursuant to IRC Section 162(m) and state taxes, offset by the release of the valuation allowance. In 2023, it was primarily the result of near break-even pre-tax income from operations, state taxes, the impact of the full valuation allowance and other permanent adjustments in addition to a return to provision benefit recorded in connection with a change in estimate of costs required to be capitalized under IRC Section 174.

Liquidity and Capital Resources

Sources and Uses of Funds

As of September 30, 2024, we had $187.5 million of unrestricted cash and cash equivalents. We believe that existing unrestricted cash and cash equivalents will be sufficient to support our working capital and capital expenditure requirements for at least the next 12 months. Since inception, we have financed operations primarily through the sale of equity securities and revenue from payment transaction fees and subscriptions. Our principal uses of cash are funding operations and capital expenditures.

From time to time, we may explore additional financing sources and means to lower our cost of capital, which could include equity, equity-linked and debt financing. We cannot assure you that any additional financing will be available to us on acceptable terms, or at all. The inability to raise capital would adversely affect our ability to achieve our business objectives. If we raise additional funds by issuing equity or equity-linked securities, the ownership of our existing stockholders will be diluted. If we raise additional financing by the incurrence of indebtedness, we may be subject to increased fixed payment obligations and could be subject to additional restrictive covenants, such as limitations on our

ability to incur additional debt, and other operating restrictions that could adversely impact our ability to conduct our business or execute our growth strategy. Any future indebtedness we incur may result in terms that could be unfavorable to equity investors.

Historical Cash Flows

The following table summarizes our condensed consolidated cash flows.


	Nine Months Ended September 30,
	2024			2023
	(in thousands)
Net cash provided by (used in):
Operating activities	$	35,721		$	44,387
Investing activities		(27,617	)		(25,850	)
Financing activities		(389	)		(1,376	)
Effects of foreign exchange on cash		(125	)		46
Net increase in cash, cash equivalents and Restricted cash	$	7,590		$	17,207

Net Cash Provided by Operating Activities

Our primary source of operating cash is revenue from payment transaction fees. Our primary uses of operating cash are personnel-related costs, payments to third parties to fulfill our payment transactions and payments to sales and marketing partners. Net cash provided by operating activities for the nine months ended September 30, 2024 was $35.7 million. Net income was $31.0 million, adjusted for non-cash charges of $38.0 million consisting primarily of depreciation and amortization, stock-based compensation, amortization of contract assets and non-cash lease expense, which contributed positively to cash provided from operating activities. This was decreased by net cash outflows of $33.3 million for changes in our operating assets and liabilities.

Net cash provided by operating activities for the nine months ended September 30, 2023 was $44.4 million. Net income was $12.9 million, adjusted for non-cash charges of $32.9 million consisting primarily of depreciation and amortization, stock-based compensation, amortization of contract assets and non-cash lease expense, which contributed positively to cash provided from operating activities. This was decreased by net cash outflows of $1.4 million for changes in our operating assets and liabilities.

Net Cash Used in Investing Activities

Net cash used in investing activities for the nine months ended September 30, 2024 consisted of $27.2 million of capitalized software development costs and $0.4 million of purchases of property and equipment.

Net cash used in investing activities for the nine months ended September 30, 2023 consisted of $25.3 million of capitalized internal-use software development costs and $0.5 million of purchases of property and equipment.

Net Cash Used in Financing Activities

Net cash used in financing activities for the nine months ended September 30, 2024 consisted of $0.6 million of settlement of holdback liability relating to a prior acquisition, which was offset by $0.2 million of proceeds from exercise of stock-based awards by employees.

Net cash used in financing activities for the nine months ended September 30, 2023 consisted of $1.7 million of payments on other financing obligations, $0.1 million of payments on finance leases and $0.4 million of proceeds from exercise of stock-based awards by employees.

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and disclosures of contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Our significant accounting policies are described in Note 2, “Basis of Presentation and Summary of Significant Accounting Policies” to our consolidated financial statements included in our 2023 Form 10-K. There have been no material changes in our critical accounting policies and estimates since December 31, 2023.

Recent Accounting Pronouncements

See Note 2 “Basis of Presentation and Summary of Significant Accounting Policies” in the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report for a full description of recent accounting

pronouncements, including the respective dates of adoption or expected adoption and effects on our condensed consolidated financial statements contained in Item 1 of this Quarterly Report.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

There have been no material changes in our exposures to market risk since December 31, 2023. For details on the Company’s interest rate, foreign currency exchange, and inflation risks, see Part I, Item 7A. “Quantitative and Qualitative Information About Market Risk” in our 2023 Form 10-K.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated, as of the end of the period covered by this Quarterly Report on Form 10-Q, the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act). Based on that evaluation, and as a result of the material weaknesses in internal control over financial reporting described below, our Chief Executive Officer and Chief Financial Officer concluded that, as of September 30, 2024, our disclosure controls and procedures were not effective at the reasonable assurance level. In light of this fact, our management has performed additional analyses, reconciliations, and other post-closing procedures and has concluded that, notwithstanding the material weaknesses in our internal control over financial reporting, the unaudited condensed consolidated financial statements for the periods covered by and included in this Quarterly Report on Form 10-Q fairly state, in all material respects, our financial position, results of operations and cash flows for the periods presented in conformity with GAAP.

Material Weaknesses in Internal Control over Financial Reporting

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our financial statements will not be prevented or detected on a timely basis. As of September 30, 2024, our material weaknesses were as follows:

•

We lacked a sufficient number of trained professionals with an appropriate level of accounting knowledge, training and experience to appropriately analyze, record and disclose accounting matters, including accounting for capitalized internal-use software development costs, identification of reporting units, translation of foreign currency in consolidation, accounting for deferred compensation, calculation of earnings per share and classification of accounts in the financial statements. Additionally, we did not design and maintain effective controls over verifying the appropriate review and approval of journal entries.

•

We did not design and maintain effective controls relevant to the preparation of our financial statements with respect to certain IT general controls for information systems. Specifically, we did not design and maintain (1) program change management controls to ensure that IT program and data changes affecting certain IT applications and underlying accounting records are identified, tested, authorized and implemented appropriately; and (2) user access controls to ensure appropriate segregation of duties and that adequately restrict user and privileged access to financial applications, programs and data to appropriate company personnel.

Status of Remediation Plan

We believe we have made significant progress towards remediation of the material weaknesses described above. As previously disclosed, we have completed the following remediation measures:

•

onboarded experienced finance and accounting professionals at various senior roles;

•

updated the design of our general ledger accounting system to allow for effective restricted access and segregation of duties to govern the preparation and review of journal entries;

•

implemented management review controls over journal entries and the identification and review of complex transactions;

•

secured the general ledger accounting system by implementing single sign-on (SSO); and

•

implemented additional change management and access controls for our relevant IT applications to further restrict privileged access and implemented controls to review activities, which may materially affect our financial statements, for those users who have privileged access.

In addition to the aforementioned actions that have been completed to date, during the third quarter, we continued to enhance the design and implementation of certain IT general controls for information systems. While we believe that these

actions will remediate the material weaknesses, the material weaknesses will not be considered remediated until the applicable controls have operated for a sufficient period of time, and management has concluded, through testing, that these controls are designed and operating effectively.

Changes in Internal Control over Financial Reporting

Other than continuing to make progress on the ongoing remediation efforts described above, there were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the three months ended September 30, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Inherent Limitations on Effectiveness of Controls

Management does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent or detect all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the company have been detected. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

From time to time, we may be involved in claims, regulatory examinations or investigations and legal proceedings arising in the ordinary course of our business. The outcome of any such claims or proceedings, regardless of the merits, and the Company’s ultimate liability, if any, is inherently uncertain. Furthermore, we may become subject to stockholder inspection demands under Delaware law and derivative or other similar litigation. We are not currently party to any material legal proceedings, and we are not aware of any pending or threatened legal proceeding against us that we believe could have a material adverse effect on our business, operating results, cash flows or financial condition.

Item 1A. Risk Factors.

There have been no material changes in the risk factors previously disclosed in Item 1A. of our 2023 Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not Applicable.

Item 5. Other Information.

Except as set forth below, during the quarter ended September 30, 2024, none of the Company’s directors or officers adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as such terms are defined in Item 408(a) of Regulation S‑K.

On September 4, 2024, Andrew Gerber, the Company’s General Counsel, adopted a trading arrangement for the sale of the Company’s Class A common stock (a “Rule 10b5-1 Trading Plan”) that is intended to satisfy the affirmative defense conditions of Securities Exchange Act Rule 10b5-1(c). Mr. Gerber’s Rule 10b5-1 Trading Plan, which expires February 27, 2026, provides for the sale of up to 56,765 shares of common stock pursuant to the terms of the plan.

Item 6. Exhibits.

(a) Exhibits

     
    Incorporated by Reference

    Exhibit
Number

    Description

    Form

    File No.

    Exhibit

    Filing Date

    Filed/
Furnished Herewith

    3.1.1

    Amended and Restated Certificate of Incorporation of Paymentus Holdings, Inc.

    8-K

    001-40429

    3.1

    May 28, 2021

    3.1.2

    Amendment to Amended and Restated Certificate of Incorporation of Paymentus Holdings, Inc.

    10-Q

    001-40429

    3.1

    August 7, 2023

    3.2

    Amended and Restated Bylaws of Paymentus Holdings, Inc.

    8-K

    001-40429

    3.2

    November 14, 2022

    31.1

    Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

    X

    31.2

    Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

    X

    32.1*

    Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

    X

    32.2*

    Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 

    X

    101.INS

    Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.

    101.SCH

    Inline XBRL Taxonomy Extension Schema Document

    101.CAL

    Inline XBRL Taxonomy Extension Calculation Linkbase Document

    101.DEF

    Inline XBRL Taxonomy Extension Definition Linkbase Document

    101.LAB

    Inline XBRL Taxonomy Extension Label Linkbase Document

    101.PRE

    Inline XBRL Taxonomy Extension Presentation Linkbase Document

    104

    Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

* The certifications attached as Exhibit 32.1 and 32.2 that accompany this report are not deemed filed with the Securities and Exchange Commission and are not to be incorporated by reference into any filing of Paymentus Holdings, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this report, irrespective of any general incorporation language contained in such filing.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	PAYMENTUS HOLDINGS, INC.

Date: November 12, 2024	By:	/s/ Dushyant Sharma
		Dushyant Sharma
		Chairman, President and Chief Executive Officer
		(Principal Executive Officer)

Date: November 12, 2024	By:	/s/ Sanjay Kalra
		Sanjay Kalra
		Senior Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)

Exhibit 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Dushyant Sharma, certify that:

I have reviewed this Quarterly Report on Form 10-Q of Paymentus Holdings, Inc.;

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date: November 12, 2024	By:	/s/ Dushyant Sharma
		Dushyant Sharma
		Chairman, President and Chief Executive Officer
		(Principal Executive Officer)

Exhibit 31.2

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Sanjay Kalra, certify that:

I have reviewed this Quarterly Report on Form 10-Q of Paymentus Holdings, Inc.;

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date: November 12, 2024	By:	/s/ Sanjay Kalra
		Sanjay Kalra
		Senior Vice President and Chief Financial Officer
		(Principal Financial Officer)

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Paymentus Holdings, Inc. (the “Company”) for the three and nine months period ended September 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:


(1)	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and


(2)		The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the periods presented in the Report.


Date: November 12, 2024	By:	/s/ Dushyant Sharma
		Dushyant Sharma
		Chairman, President and,
		Chief Executive Officer
		(Principal Executive Officer)

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


(1)	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and


(2)		The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the periods presented in the Report.


Date: November 12, 2024	By:	/s/ Sanjay Kalra
		Sanjay Kalra
		Senior Vice President and Chief Financial Officer
		(Principal Financial Officer)

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2024	Nov. 08, 2024
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Document Quarterly Report	true
Document Transition Report	false
Entity Registrant Name	Paymentus Holdings, Inc.
Entity Central Index Key	0001841156
Entity File Number	001-40429
Entity Tax Identification Number	45-3188251
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	11605 North Community House Road
Entity Address Address Line2	Suite 300
Entity Address, City or Town	Charlotte
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	28277
City Area Code	888
Local Phone Number	440-4826
Title of 12(b) Security	Class A Common Stock, par value $0.0001 per share
Trading Symbol	PAY
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Common Class A [Member]
Document Information [Line Items]
Entity Common Stock Shares Outstanding		24,522,383
Common Class B [Member]
Document Information [Line Items]
Entity Common Stock Shares Outstanding		100,111,193

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
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
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	0	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	0	0
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
Class A Common Stock [Member]
Stockholders’ equity
Common Stock, Value, Issued	2	2
Class B Common Stock [Member]
Stockholders’ equity
Common Stock, Value, Issued	$ 10	$ 10

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Allowance for accounts and other receivables	$ 354	$ 435
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Class A Common Stock [Member]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	883,950,000	883,950,000
Common stock, shares issued	24,478,802	20,758,603
Common stock, shares outstanding	24,478,802	20,758,603
Class B Common Stock [Member]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	111,050,000	111,050,000
Common stock, shares issued	100,126,384	103,062,508
Common stock, shares outstanding	100,126,384	103,062,508

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
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	$ 0.1
Diluted	$ 0.11	$ 0.05	$ 0.24	$ 0.1
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
Net Income (Loss)	$ 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

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Shares [Member]	Additional Paid-In-Capital	Retained Earnings	Other Comprehensive Income (Loss)
Beginning balance at Dec. 31, 2022	$ 397,179	$ 12	$ 367,767	$ 29,422	$ (22)
Beginning balance (in shares) at Dec. 31, 2022		123,241,173
Stock-based compensation	2,159		2,159
Issuance of Class A common stock for stock-based awards( value)	5		5
Issuance of Class A common stock for stock-based awards ( shares)		104,991
Other comprehensive income (loss)	(7)				(7)
Net Income (Loss)	704			704
Ending balance at Mar. 31, 2023	400,040	$ 12	369,931	30,126	(29)
Ending balance (in shares) at Mar. 31, 2023		123,346,164
Beginning balance at Dec. 31, 2022	397,179	$ 12	367,767	29,422	(22)
Beginning balance (in shares) at Dec. 31, 2022		123,241,173
Net Income (Loss)	12,920
Ending balance at Sep. 30, 2023	417,448	$ 12	375,094	42,342	0
Ending balance (in shares) at Sep. 30, 2023		123,691,948
Beginning balance at Mar. 31, 2023	400,040	$ 12	369,931	30,126	(29)
Beginning balance (in shares) at Mar. 31, 2023		123,346,164
Stock-based compensation	2,276		2,276
Issuance of Class A common stock for stock-based awards( value)	196		196
Issuance of Class A common stock for stock-based awards ( shares)		160,625
Other comprehensive income (loss)	93				93
Net Income (Loss)	5,839			5,839
Ending balance at Jun. 30, 2023	408,444	$ 12	372,403	35,965	64
Ending balance (in shares) at Jun. 30, 2023		123,506,789
Stock-based compensation	2,456		2,456
Issuance of Class A common stock for stock-based awards( value)	235		235
Issuance of Class A common stock for stock-based awards ( shares)		185,159
Other comprehensive income (loss)	(64)				(64)
Net Income (Loss)	6,377			6,377
Ending balance at Sep. 30, 2023	417,448	$ 12	375,094	42,342	0
Ending balance (in shares) at Sep. 30, 2023		123,691,948
Beginning balance at Dec. 31, 2023	429,616	$ 12	377,773	51,744	87
Beginning balance (in shares) at Dec. 31, 2023		123,821,111
Stock-based compensation	2,484		2,484
Issuance of Class A common stock for stock-based awards( value)	100		100
Issuance of Class A common stock for stock-based awards ( shares)		304,865
Other comprehensive income (loss)	(42)				(42)
Net Income (Loss)	7,226			7,226
Ending balance at Mar. 31, 2024	439,384	$ 12	380,357	58,970	45
Ending balance (in shares) at Mar. 31, 2024		124,125,976
Beginning balance at Dec. 31, 2023	429,616	$ 12	377,773	51,744	87
Beginning balance (in shares) at Dec. 31, 2023		123,821,111
Net Income (Loss)	31,020
Ending balance at Sep. 30, 2024	468,793	$ 12	386,020	82,764	(3)
Ending balance (in shares) at Sep. 30, 2024		124,605,186
Beginning balance at Mar. 31, 2024	439,384	$ 12	380,357	58,970	45
Beginning balance (in shares) at Mar. 31, 2024		124,125,976
Stock-based compensation	2,882		2,882
Issuance of Class A common stock for stock-based awards( value)	37		37
Issuance of Class A common stock for stock-based awards ( shares)		348,503
Other comprehensive income (loss)	(40)				(40)
Net Income (Loss)	9,364			9,364
Ending balance at Jun. 30, 2024	451,627	$ 12	383,276	68,334	5
Ending balance (in shares) at Jun. 30, 2024		124,474,479
Stock-based compensation	2,725		2,725
Issuance of Class A common stock for stock-based awards( value)	19		19
Issuance of Class A common stock for stock-based awards ( shares)		130,707
Other comprehensive income (loss)	(8)				(8)
Net Income (Loss)	14,430			14,430
Ending balance at Sep. 30, 2024	$ 468,793	$ 12	$ 386,020	$ 82,764	$ (3)
Ending balance (in shares) at Sep. 30, 2024		124,605,186

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities
Net income	$ 31,020	$ 12,920
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	26,827	22,314
Deferred income taxes	(1,333)	278
Stock-based compensation	9,424	6,891
Non-cash lease expense	1,806	1,346
Amortization of contract asset	1,395	2,197
Provision for (benefit from) expected credit losses	114	(122)
Other non-cash adjustments	(213)	0
Change in operating assets and liabilities
Accounts and other receivables	(34,917)	(6,941)
Prepaid expenses and other current and long-term assets	(4,579)	(1,797)
Accounts payable	14,349	4,279
Accrued liabilities	(197)	4,188
Operating lease liabilities	(1,656)	(1,364)
Contract liabilities	(1,883)	1,232
Income taxes receivable, net of payable	(4,436)	(1,034)
Net cash provided by operating activities	35,721	44,387
Cash flows from investing activities
Purchases of property and equipment	(376)	(511)
Purchase of interest-bearing deposits	(2,569)	0
Proceeds from matured interest-bearing deposits	2,566	0
Capitalized internal-use software development costs	(27,238)	(25,339)
Net cash used in investing activities	(27,617)	(25,850)
Cash flows from financing activities
Proceeds from exercise of stock-based awards	156	435
Settlement of holdback liability related to prior acquisitions	(545)	0
Payments on other financing obligations	0	(1,709)
Payments on finance leases	0	(102)
Net cash used in financing activities	(389)	(1,376)
Effect of exchange rate changes on Cash and cash equivalents and Restricted cash	(125)	46
Net increase in cash, cash equivalents and Restricted cash	7,590	17,207
Cash, cash equivalents and restricted cash
Cash and cash equivalents and Restricted cash at the beginning of period	183,195	149,685
Cash and cash equivalents and Restricted cash at the end of period	190,785	166,892
Supplemental disclosure of cash flow information:
Cash paid for income taxes, net of refunds	12,419	1,718
Right-of-use assets obtained in exchange of operating lease obligations	466	1,356
Cash and Cash Equivalents [Member]
Cash, cash equivalents and restricted cash
Cash and cash equivalents and Restricted cash at the beginning of period	179,361	147,334
Cash and cash equivalents and Restricted cash at the end of period	187,542	162,062
Restricted Cash [Member]
Cash, cash equivalents and restricted cash
Cash and cash equivalents and Restricted cash at the beginning of period	3,834	2,351
Cash and cash equivalents and Restricted cash at the end of period	$ 3,243	$ 4,830

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 14,430	$ 9,364	$ 7,226	$ 6,377	$ 5,839	$ 704	$ 31,020	$ 12,920

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2024 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	Item 5. Other Information. Except as set forth below, during the quarter ended September 30, 2024, none of the Company’s directors or officers adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as such terms are defined in Item 408(a) of Regulation S‑K. On September 4, 2024, Andrew Gerber, the Company’s General Counsel, adopted a trading arrangement for the sale of the Company’s Class A common stock (a “Rule 10b5-1 Trading Plan”) that is intended to satisfy the affirmative defense conditions of Securities Exchange Act Rule 10b5-1(c). Mr. Gerber’s Rule 10b5-1 Trading Plan, which expires February 27, 2026, provides for the sale of up to 56,765 shares of common stock pursuant to the terms of the plan.
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Andrew Gerber [Member]
Trading Arrangements, by Individual
Name	Andrew Gerber
Title	General Counsel
Rule 10b5-1 Arrangement Adopted	true
Non-Rule 10b5-1 Arrangement Adopted	false
Adoption Date	September 4, 2024
Expiration Date	February 27, 2026
Arrangement Duration	541 days
Aggregate Available	56,765

Organization and Description of Business

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Description of Business

1. Organization and Description of Business

Description of Business

Basis of Presentation and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

2. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

Principles of Consolidation

Use of Estimates

Custodial Accounts

Concentration of Credit Risk

Segment Information

Summary of Significant Accounting Policies

Recently Adopted Accounting Standards

Accounting Standards Updates ("ASU") not listed below were assessed and determined to be either not applicable or are not expected to have a material impact on the consolidated financial statements.

Accounting Pronouncements Not Yet Adopted

Revenue, Performance Obligations and Contract Balances

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue, Performance Obligations and Contract Balances

3. Revenue, Performance Obligations and Contract Balances

Disaggregation of Revenue

The following table presents a disaggregation of revenue from contracts with customers:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(in thousands)
Payment transaction processing revenue	$	228,826	$	150,500	$	605,142	$	443,565
Other		2,745		1,923		8,726		6,125
Total revenue	$	231,571	$	152,423	$	613,868	$	449,690

Revenue by geographic area, based on the location of the Company’s users, was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(in thousands)
United States	$	227,788	$	149,526	$	602,572	$	441,029
Other		3,783		2,897		11,296		8,661
Total	$	231,571	$	152,423	$	613,868	$	449,690

Remaining Performance Obligations

Contract Balances

Contract balances consist of the following:


	September 30,		December 31,
	2024		2023
	(in thousands)
Contract Assets included under:
Prepaid expenses and other current assets	$	2,893	$	2,893
Other long-term assets		3,397		4,783
Total contract assets	$	6,290	$	7,676
Contract Liabilities:
Current	$	2,192	$	4,089
Non-current		2,744		2,731
Total contract liabilities	$	4,936	$	6,820

The amortization of related contract assets included in the condensed consolidated statements of operations and comprehensive income was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(in thousands)
Revenue	$	153	$	635	$	459	$	1,888
Sales and marketing		740		121		2,268		308
Total amortization of contact assets	$	893	$	756	$	2,727	$	2,196

Property and Equipment, Net

9 Months Ended

Sep. 30, 2024

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

4. Property and Equipment, net

Property and equipment, net consisted of the following:


	September 30,			December 31,
	2024			2023
	(in thousands)
Computer equipment	$	6,293		$	6,059
Furniture and fixtures		1,796			1,715
Leasehold improvements		391			396
Total property and equipment		8,480			8,170
Less: Accumulated depreciation		(7,157	)		(6,612	)
Property and equipment, net	$	1,323		$	1,558

The geographic locations of the Company’s long-lived assets, comprising property and equipment, based on physical location of the assets were as follows:


	September 30,		December 31,
	2024		2023
	(in thousands)
United States	$	516	$	558
Other		807		1,000
Total	$	1,323	$	1,558

Goodwill, Internal-use Software Development Costs and Intangible Assets

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill, Internal-use Software Development Costs and Intangible Assets

5. Goodwill, Internal-use Software Development Costs and Intangible Assets

Goodwill

The changes in the carrying amount of goodwill by reporting unit were as follows (in thousands):


	United States		Other			Total
Balance as of December 31, 2023	$	131,028	$	832		$	131,860
Foreign currency translation adjustments		—		(11	)		(11	)
Balance as of September 30, 2024	$	131,028	$	821		$	131,849

Internal-use Software Development Costs

Intangible Assets

Intangible assets, net consisted of the following (in thousands):


	September 30, 2024
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Technology	$	21,833	$	(17,767	)	$	4,066
Customer relationship		31,991		(15,917	)		16,074
Software and license		2,962		(2,946	)		16
Trademark		4,038		(3,098	)		940
Total	$	60,824	$	(39,728	)	$	21,096


	December 31, 2023
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Technology	$	21,845	$	(14,951	)	$	6,894
Customer relationship		32,006		(13,480	)		18,526
Software and license		3,019		(2,979	)		40
Trademark		4,038		(2,340	)		1,698
Total	$	60,908	$	(33,750	)	$	27,158

As of September 30, 2024, future expected amortization expense is as follows (in thousands):


Years Ending December 31,
2024 (remaining 3 months)	$	2,036
2025		6,604
2026		3,738
2027		3,269
2028		3,269
Thereafter		2,180
Total future amortization expense	$	21,096

There were no impairments of goodwill, internal-use software development costs or intangible assets in the three or nine months ended September 30, 2024 and 2023.

Accrued Liabilities

9 Months Ended

Sep. 30, 2024

Accrued Liabilities, Current [Abstract]

Accrued Liabilities

6. Accrued Liabilities

The composition of accrued liabilities is as follows:


	September 30,		December 31,
	2024		2023
	(in thousands)
Payroll and employee-related expenses	$	14,129	$	15,455
Other accrued liabilities		6,170		5,846
Total	$	20,299	$	21,301

Commitments and Contingencies

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

7. Commitments and Contingencies

Other Commitments

Legal Matters

Indemnification

Equity

9 Months Ended

Sep. 30, 2024

Equity [Abstract]

Equity

8. Equity

Warrant

As of September 30, 2024, an aggregate of 620,008 warrants had vested and were exercisable under the outstanding warrant agreements.

Stock-Based Compensation

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

9. Stock-Based Compensation

Stock Options

A summary of the Company’s option activity during the nine months ended September 30, 2024 was as follows (in thousands, except for share and per share amount):


						Weighted-
				Weighted-		Average
				Average		Remaining		Aggregate
	Options			Exercise Price		Contractual		Intrinsic
	Outstanding			per Share		Life (years)		Value
Outstanding at December 31, 2023		3,849,350		$	7.87		5.06	$	38,505
Options exercised		(209,459	)		0.74
Options forfeited		(2,333	)		8.66
Outstanding at September 30, 2024		3,637,558		$	8.28		4.46	$	42,705
Exercisable at September 30, 2024		3,610,609		$	8.27		4.45	$	42,407

Restricted Stock Units (“RSUs”)

A summary of the Company’s RSU activity during the nine months ended September 30, 2024 was as follows:


				Weighted-
	Number of			Average
	RSUs			Grant Date
	Outstanding			Fair Value
Awarded and unvested at December 31, 2023		1,946,006		$	12.74
Awards granted		1,045,344			19.23
Awards vested		(573,116	)		12.62
Awards forfeited		(188,826	)		11.66
Awarded and unvested at September 30, 2024		2,229,408		$	15.90

Stock-based compensation expense included in the condensed consolidated statements of operations and comprehensive income was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(in thousands)
Cost of revenue	$	67	$	36	$	184	$	110
Research and development		823		484		2,277		1,492
Sales and marketing		1,331		690		4,135		2,096
General and administrative		947		1,246		2,828		3,193
Total stock-based compensation	$	3,168	$	2,456	$	9,424	$	6,891

Income Taxes

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

10. Income Taxes

Net Income per Share Attributable to Common Stock

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Net Income per Share Attributable to Common Stock

11. Net Income per Share Attributable to Common Stock

Basic net income per share attributable to common stock is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period.

The following table sets forth the computation of basic and diluted net income per share attributable to common stock (in thousands, except for share and per share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Numerator:
Net income	$	14,430	$	6,377	$	31,020	$	12,920
Denominator:
Weighted-average shares of common stock — basic		124,538,195		123,620,260		124,251,147		123,430,652
Dilutive effect of stock options to purchase common stock		2,210,027		1,548,680		2,178,842		868,922
Dilutive effect of RSUs		721,882		429,863		714,991		153,330
Dilutive effect of warrants		144,011		41,076		109,631		4,456
Weighted-average shares of common stock — diluted		127,614,115		125,639,879		127,254,611		124,457,360
Net income per share
Basic	$	0.12	$	0.05	$	0.25	$	0.10
Diluted	$	0.11	$	0.05	$	0.24	$	0.10


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Stock options to purchase common stock		—		—		—		103,804
RSUs		150,723		580,102		200,322		1,149,853
Warrants		—		417,045		—		417,045

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the United States Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all disclosures normally required in annual consolidated financial statements prepared in accordance with GAAP. Therefore, these unaudited condensed consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements and the related notes included in the Company's Form 10-K for the year ended December 31, 2023 filed with the SEC on March 5, 2024 (the “2023 Form 10-K”). These unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the Company’s financial position, results of operations and comprehensive income, changes in stockholders' equity and cash flows for the periods presented. The results of operations for the three and nine months ended September 30, 2024 and 2023 are not necessarily indicative of the results to be expected for the full year or any other future interim or annual period.
Principles of Consolidation	Principles of Consolidation The unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and balances have been eliminated upon consolidation.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Such estimates include revenue recognition, cost of revenue recognition, the allowance for credit losses, the lives of tangible and intangible assets, the valuation of acquired intangible assets and the recoverability or impairment of intangible assets, including goodwill, internal-use software development costs, valuation of stock warrants issued, stock-based compensation, and accounting for income taxes. The Company bases its estimates on historical experience and also on assumptions that management considers reasonable. The Company assesses these estimates on a regular basis; however, actual results could differ from these estimates.
Custodial Accounts	Custodial Accounts The Company has established a relationship with its merchant processors to act as collection and paying agents, whereby a merchant processor receives funds from customers and forwards such funds to the respective Paymentus client, based on the instructions received from the Company. These merchant processors act as custodians of the cash received, and the Company has no legal ownership rights to the funds held in such custodial accounts and does not control the use of these funds. As the Company does not take ownership of the funds, these custodial accounts are not included in the Company’s consolidated balance sheets. The balance of cash in the custodial accounts held by these merchant processors was $123.3 million and $510.8 million as of September 30, 2024 and December 31, 2023, respectively.
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk primarily consist of cash, cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents with high-quality financial institutions with investment-grade ratings. For accounts receivable, the Company is exposed to credit risk in the event of nonpayment by customers and resellers to the extent of the amounts recorded in the consolidated balance sheets. No customer accounted for more than 10% of revenue for either of the three or nine months ended September 30, 2024 and 2023. As of December 31, 2023 and September 30, 2024 one reseller accounted for more than 10% of accounts receivable.
Segment Information	Segment Information Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to make operating decisions, allocate resources and assess performance. The Company has three operating segments based on geography. The United States segment represents the vast majority of the Company’s consolidated net sales and gross profit. The additional two operating segments, Canada and India, do not meet the quantitative thresholds for separate reporting, either individually or in the aggregate. None of the operating segments qualified for aggregation. The Company’s CODM is its chief executive officer. The CODM evaluates the performance of the Company’s operating segments based on revenue and gross profit. The Company does not analyze discrete segment balance sheet information related to long-term assets. All other financial information is presented on a consolidated basis. For information regarding the Company’s long-lived assets and revenue by geographic area, see Note 4 and Note 3, respectively.
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies The Company’s significant accounting policies are discussed in Note 2, “Basis of Presentation and Summary of Significant Accounting Policies,” in the Notes to Consolidated Financial Statements as of December 31, 2023 and 2022 and for the years ended December 31, 2023, 2022 and 2021 included in the 2023 Form 10-K. There have been no significant changes to these policies during the three and nine months ended September 30, 2024.
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards The Company is provided the option to adopt new or revised accounting guidance as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 either (1) within the same periods as those otherwise applicable to public business entities, or (2) within the same time periods as non-public business entities, including early adoption when permissible. With the exception of standards the Company elected to early adopt, when permissible, the Company has elected to adopt new or revised accounting guidance within the same time period as non-public business entities, as indicated below. Accounting Standards Updates ("ASU") not listed below were assessed and determined to be either not applicable or are not expected to have a material impact on the consolidated financial statements. Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements under ASU 2023-07 are also required for public entities with a single reportable segment. The amendments in ASU 2023-07 are effective for public companies for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the potential impact of adopting this new guidance on our condensed consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09 "Income Tax Disclosures", which makes changes to annual disclosures of income taxes paid for all entities and requires entities to disclose the amount of income taxes paid, net of refunds received, disaggregated by federal, state and foreign jurisdiction. Additionally, entities are required to disclose income taxes paid, net of refunds received, for individual jurisdictions that comprise 5% or more of total income taxes paid. The 5% threshold is evaluated using the absolute value of the net refund or net payment in each jurisdiction compared to the absolute value of the total income taxes paid (net of refunds received). ASU 2023-09 requires all entities to disclose disaggregated domestic and foreign pre-tax income (or loss) from continuing operations along with disaggregated income tax expense (or benefit) by federal, state and foreign components. Such disaggregation by jurisdiction should classify taxes by jurisdiction based on the jurisdiction imposing the taxes. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024 for public companies. Early adoption is permitted. We are currently evaluating the potential impact of adopting this new guidance on our condensed consolidated financial statements and related disclosures.

Revenue, Performance Obligations and Contract Balances (Tables)

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Summary of Disaggregation of Revenue

The following table presents a disaggregation of revenue from contracts with customers:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(in thousands)
Payment transaction processing revenue	$	228,826	$	150,500	$	605,142	$	443,565
Other		2,745		1,923		8,726		6,125
Total revenue	$	231,571	$	152,423	$	613,868	$	449,690

Summary of Revenue by Geographic Area

Revenue by geographic area, based on the location of the Company’s users, was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(in thousands)
United States	$	227,788	$	149,526	$	602,572	$	441,029
Other		3,783		2,897		11,296		8,661
Total	$	231,571	$	152,423	$	613,868	$	449,690

Summary of Contract Asset and Liability

Contract balances consist of the following:


	September 30,		December 31,
	2024		2023
	(in thousands)
Contract Assets included under:
Prepaid expenses and other current assets	$	2,893	$	2,893
Other long-term assets		3,397		4,783
Total contract assets	$	6,290	$	7,676
Contract Liabilities:
Current	$	2,192	$	4,089
Non-current		2,744		2,731
Total contract liabilities	$	4,936	$	6,820

Summary of Amortization of Contract Assets

The amortization of related contract assets included in the condensed consolidated statements of operations and comprehensive income was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(in thousands)
Revenue	$	153	$	635	$	459	$	1,888
Sales and marketing		740		121		2,268		308
Total amortization of contact assets	$	893	$	756	$	2,727	$	2,196

Property and Equipment, Net (Tables)

9 Months Ended

Sep. 30, 2024

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment, Net

Property and equipment, net consisted of the following:


	September 30,			December 31,
	2024			2023
	(in thousands)
Computer equipment	$	6,293		$	6,059
Furniture and fixtures		1,796			1,715
Leasehold improvements		391			396
Total property and equipment		8,480			8,170
Less: Accumulated depreciation		(7,157	)		(6,612	)
Property and equipment, net	$	1,323		$	1,558

Long-lived Assets by Geographic Areas

The geographic locations of the Company’s long-lived assets, comprising property and equipment, based on physical location of the assets were as follows:


	September 30,		December 31,
	2024		2023
	(in thousands)
United States	$	516	$	558
Other		807		1,000
Total	$	1,323	$	1,558

Goodwill, Internal-use Software Development Costs and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Goodwill by Reporting Unit

The changes in the carrying amount of goodwill by reporting unit were as follows (in thousands):


	United States		Other			Total
Balance as of December 31, 2023	$	131,028	$	832		$	131,860
Foreign currency translation adjustments		—		(11	)		(11	)
Balance as of September 30, 2024	$	131,028	$	821		$	131,849

Summary of Intangible Assets

Intangible assets, net consisted of the following (in thousands):


	September 30, 2024
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Technology	$	21,833	$	(17,767	)	$	4,066
Customer relationship		31,991		(15,917	)		16,074
Software and license		2,962		(2,946	)		16
Trademark		4,038		(3,098	)		940
Total	$	60,824	$	(39,728	)	$	21,096


	December 31, 2023
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Technology	$	21,845	$	(14,951	)	$	6,894
Customer relationship		32,006		(13,480	)		18,526
Software and license		3,019		(2,979	)		40
Trademark		4,038		(2,340	)		1,698
Total	$	60,908	$	(33,750	)	$	27,158

Schedule of Expected Future Amortization Expense

As of September 30, 2024, future expected amortization expense is as follows (in thousands):


Years Ending December 31,
2024 (remaining 3 months)	$	2,036
2025		6,604
2026		3,738
2027		3,269
2028		3,269
Thereafter		2,180
Total future amortization expense	$	21,096

Accrued Liabilities (Tables)

9 Months Ended

Sep. 30, 2024

Accrued Liabilities, Current [Abstract]

Summary of Accrued Liabilities

The composition of accrued liabilities is as follows:


	September 30,		December 31,
	2024		2023
	(in thousands)
Payroll and employee-related expenses	$	14,129	$	15,455
Other accrued liabilities		6,170		5,846
Total	$	20,299	$	21,301

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Stock Option Activity

A summary of the Company’s option activity during the nine months ended September 30, 2024 was as follows (in thousands, except for share and per share amount):


						Weighted-
				Weighted-		Average
				Average		Remaining		Aggregate
	Options			Exercise Price		Contractual		Intrinsic
	Outstanding			per Share		Life (years)		Value
Outstanding at December 31, 2023		3,849,350		$	7.87		5.06	$	38,505
Options exercised		(209,459	)		0.74
Options forfeited		(2,333	)		8.66
Outstanding at September 30, 2024		3,637,558		$	8.28		4.46	$	42,705
Exercisable at September 30, 2024		3,610,609		$	8.27		4.45	$	42,407

Summary of RSU Activity

A summary of the Company’s RSU activity during the nine months ended September 30, 2024 was as follows:


				Weighted-
	Number of			Average
	RSUs			Grant Date
	Outstanding			Fair Value
Awarded and unvested at December 31, 2023		1,946,006		$	12.74
Awards granted		1,045,344			19.23
Awards vested		(573,116	)		12.62
Awards forfeited		(188,826	)		11.66
Awarded and unvested at September 30, 2024		2,229,408		$	15.90

Summary of Stock Based Compensation Expense

Stock-based compensation expense included in the condensed consolidated statements of operations and comprehensive income was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(in thousands)
Cost of revenue	$	67	$	36	$	184	$	110
Research and development		823		484		2,277		1,492
Sales and marketing		1,331		690		4,135		2,096
General and administrative		947		1,246		2,828		3,193
Total stock-based compensation	$	3,168	$	2,456	$	9,424	$	6,891

Net Income per Share Attributable to Common Stock (Tables)

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Net Income Per Share Attributable to Common Stock

The following table sets forth the computation of basic and diluted net income per share attributable to common stock (in thousands, except for share and per share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Numerator:
Net income	$	14,430	$	6,377	$	31,020	$	12,920
Denominator:
Weighted-average shares of common stock — basic		124,538,195		123,620,260		124,251,147		123,430,652
Dilutive effect of stock options to purchase common stock		2,210,027		1,548,680		2,178,842		868,922
Dilutive effect of RSUs		721,882		429,863		714,991		153,330
Dilutive effect of warrants		144,011		41,076		109,631		4,456
Weighted-average shares of common stock — diluted		127,614,115		125,639,879		127,254,611		124,457,360
Net income per share
Basic	$	0.12	$	0.05	$	0.25	$	0.10
Diluted	$	0.11	$	0.05	$	0.24	$	0.10

Schedule of Common Stock Equivalents Excluded from Income (Loss) Per Diluted Share


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Stock options to purchase common stock		—		—		—		103,804
RSUs		150,723		580,102		200,322		1,149,853
Warrants		—		417,045		—		417,045

Geographic Information (Tables)

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Summary of Revenue by Geographic Area

Revenue by geographic area, based on the location of the Company’s users, was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(in thousands)
United States	$	227,788	$	149,526	$	602,572	$	441,029
Other		3,783		2,897		11,296		8,661
Total	$	231,571	$	152,423	$	613,868	$	449,690

Long-lived Assets by Geographic Areas

The geographic locations of the Company’s long-lived assets, comprising property and equipment, based on physical location of the assets were as follows:


	September 30,		December 31,
	2024		2023
	(in thousands)
United States	$	516	$	558
Other		807		1,000
Total	$	1,323	$	1,558

Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2024 USD ($) Customer	Sep. 30, 2023 Customer	Sep. 30, 2024 USD ($) Customer Segment	Sep. 30, 2023 Customer	Dec. 31, 2023 USD ($) Customer
Summary Of Significant Accounting Policies [Line Items]
Number of operating segment \| Segment			3
Cash in custodial account \| $	$ 123.3		$ 123.3		$ 510.8
Number Of Customer	0	0	0	0
Revenue [Member] \| Customer Concentration Risk [Member] \| Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage	10.00%	10.00%	10.00%	10.00%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| One Customer [Member]
Summary Of Significant Accounting Policies [Line Items]
Number Of Customer			1		1
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Minimum [Member] \| One Customer [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage			10.00%		10.00%

Revenue, Performance Obligations and Contract Balances - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Remaining performance obligation, aggregate amount of transaction price	$ 4.9		$ 4.9
Remaining performance obligation, percentage	24.00%		24.00%
Expected revenue period			2 years
Fixed consideration related to the future minimum guarantees, contract amount	$ 79.5		$ 79.5
Maximum [Member]
Disaggregation of Revenue [Line Items]
Expected revenue period			4 years
Minimum [Member]
Disaggregation of Revenue [Line Items]
Remaining performance obligation, percentage	68.00%		68.00%
Expected revenue period			2 years
Payment Transaction Processing Revenue [Member]
Disaggregation of Revenue [Line Items]
Contract With Customer Liability	$ 1.1	$ 0.5	$ 3.6	$ 1.4

Revenue, Performance Obligations and Contract Balances - Summary of Disaggregation of Revenue from Contracts with Customer (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation Of Revenue [Line Items]
Revenue	$ 231,571	$ 152,423	$ 613,868	$ 449,690
Payment Transaction Processing Revenue [Member]
Disaggregation Of Revenue [Line Items]
Revenue	228,826	150,500	605,142	443,565
Other [Member]
Disaggregation Of Revenue [Line Items]
Revenue	$ 2,745	$ 1,923	$ 8,726	$ 6,125

Revenue, Performance Obligations and Contract Balances - Summary of Revenue by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 231,571	$ 152,423	$ 613,868	$ 449,690
United States
Disaggregation of Revenue [Line Items]
Revenue	227,788	149,526	602,572	441,029
Other
Disaggregation of Revenue [Line Items]
Revenue	$ 3,783	$ 2,897	$ 11,296	$ 8,661

Revenue, Performance Obligations and Contract Balances - Summary of Contract Asset and Liability (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Contract Assets included under:
Total contract assets	$ 6,290	$ 7,676
Contract Liabilities
Current	2,192	4,089
Non-current	2,744	2,731
Total contract liabilities	4,936	6,820
Prepaid Expenses and Other Current Assets [Member]
Contract Assets included under:
Total contract assets	2,893	2,893
Other Long-term Assets [Member]
Contract Assets included under:
Total contract assets	$ 3,397	$ 4,783

Revenue, Performance Obligations and Contract Balances - Summary of Amortization of Contract Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Amortization Of Contact Assets	$ 893	$ 756	$ 2,727	$ 2,196
Revenue [Member]
Disaggregation of Revenue [Line Items]
Amortization Of Contact Assets	153	635	459	1,888
Sales and Marketing [Member]
Disaggregation of Revenue [Line Items]
Amortization Of Contact Assets	$ 740	$ 121	$ 2,268	$ 308

Business Combinations - Schedule Of Assets Acquired And Liabilities Assumed (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Business Acquisition [Line Items]
Goodwill	$ 131,849	$ 131,860

Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Property Plant And Equipment [Line Items]
Total property and equipment	$ 8,480	$ 8,170
Less: Accumulated depreciation	(7,157)	(6,612)
Property and equipment, net	1,323	1,558
Computer Equipment
Property Plant And Equipment [Line Items]
Total property and equipment	6,293	6,059
Furniture And Fixtures
Property Plant And Equipment [Line Items]
Total property and equipment	1,796	1,715
Leasehold Improvements
Property Plant And Equipment [Line Items]
Total property and equipment	$ 391	$ 396

Property and Equipment, Net - Schedule Of Property and Equipment, Net Based On Physical Location (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property and equipment, net	$ 1,323	$ 1,558
United States
Property, Plant and Equipment [Line Items]
Property and equipment, net	516	558
Other
Property, Plant and Equipment [Line Items]
Property and equipment, net	$ 807	$ 1,000

Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 0.2	$ 0.2	$ 0.6	$ 0.7

Goodwill, Internal-use Software Development Costs and Intangible Assets - Summary of Goodwill by Reporting Units (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Goodwill [Line Items]
Beginning Balance	$ 131,860
Foreign currency translation adjustments	(11)
Ending Balance	131,849
United States
Goodwill [Line Items]
Beginning Balance	131,028
Foreign currency translation adjustments	0
Ending Balance	131,028
Other
Goodwill [Line Items]
Beginning Balance	832
Foreign currency translation adjustments	(11)
Ending Balance	$ 821

Goodwill, Internal-use Software Development Costs and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Goodwill [Line Items]
Capitalized internal-use software development costs			$ 27,238	$ 25,339
Amortization of Intangible Assets, Total	$ 2,000	$ 2,100	6,100	6,400
Computer Software, Intangible Asset [Member]
Goodwill [Line Items]
Impairment of Intangible Assets (Excluding Goodwill)	0	0	0	0
Software and Software Development Costs [Member]
Goodwill [Line Items]
Capitalized internal-use software development costs	9,000	8,700	27,400	25,300
Cost Of Revenue [Member]
Goodwill [Line Items]
Amortizaion expense of capitalized software costs	4,600	3,500	13,000	9,500
Operating Expense [Member]
Goodwill [Line Items]
Amortizaion expense of capitalized software costs	$ 2,500	$ 2,000	$ 7,100	$ 5,800

Goodwill, Internal-use Software Development Costs and Intangible Assets - Summary of Intagible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 60,824	$ 60,908
Accumulated Amortization	(39,728)	(33,750)
Total future amortization expense	21,096	27,158
Technology
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	21,833	21,845
Accumulated Amortization	(17,767)	(14,951)
Total future amortization expense	4,066	6,894
Customer Relationships
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	31,991	32,006
Accumulated Amortization	(15,917)	(13,480)
Total future amortization expense	16,074	18,526
Software And License
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,962	3,019
Accumulated Amortization	(2,946)	(2,979)
Total future amortization expense	16	40
Trademark
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	4,038	4,038
Accumulated Amortization	(3,098)	(2,340)
Total future amortization expense	$ 940	$ 1,698

Goodwill, Internal-use Software Development Costs and Intangible Assets - Schedule of Expected Future Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
2024 (remaining 3 months)	$ 2,036
2025	6,604
2026	3,738
2027	3,269
2028	3,269
Thereafter	2,180
Total future amortization expense	$ 21,096	$ 27,158

Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Accrued Liabilities, Current [Abstract]
Payroll and employee-related expenses	$ 14,129	$ 15,455
Other accrued liabilities	6,170	5,846
Accrued liabilities	$ 20,299	$ 21,301

Commitments and Contingencies - Additional Information (Details)	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Other commitments, description	The Company has entered into certain non-cancellable agreements for software and marketing services that specify all significant terms, including fixed or minimum services to be used, pricing provisions and the approximate timing of the transaction. Obligations under contracts that are cancellable or with remaining terms of 12 months or less are not included. There have been no material changes to the Company's contractual obligations or commitments outside of the ordinary course of business as compared to those described in the 2023 Form 10-K.

Equity - Additional Information (Details) - $ / shares	Sep. 30, 2024	Aug. 29, 2022	May 13, 2021
Class Of Stock [Line Items]
Common stock, par value		$ 10.1	$ 18.38
Warrant Issue		684,510	509,370
Warrant shares vested and exercisable			448,880
Fully Vested	620,008	171,128	382,027
Vesting of the Remaining Shares of the Warrant		513,382	127,343

Stock-Based compensation - Additional Information (Details) - USD ($) $ in Millions	1 Months Ended	9 Months Ended
	May 31, 2021	Sep. 30, 2024	Jan. 01, 2024	Dec. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options granted in period		0
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total unrecognized compensation cost		$ 32.0
Total unrecognized compensation cost, recognition period		3 years 4 months 24 days
Class A Common Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares reserved for issuance			5,000,000
Class A & Class B Common Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Percentage of annual increase of outstanding shares				4.00%
Equity Incentive Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total unrecognized compensation cost		$ 0.1
Total unrecognized compensation cost, recognition period		1 year 1 month 6 days
Equity Incentive Plan [Member] \| Class A Common Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares reserved for issuance	10.5
Options granted in period	7.6
2021 Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares reserved for issuance		21,800,000

Stock-Based compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]
Options Outstanding, Beginning	3,849,350
Options exercised	(209,459)
Options forfeited	(2,333)
Options Outstanding, Ending	3,637,558	3,849,350
Options Outstanding, Exercisable	3,610,609
Weighted Average Exercise Price, Beginning	$ 7.87
Weighted Average Exercise Price, Exercised	0.74
Weighted Average Exercise Price, Forfeited	8.66
Weighted Average Exercise Price, Ending	8.28	$ 7.87
Weighted Average Exercise Price, Exercisable	$ 8.27
Weighted Average Remaining Contractual Term (years)	4 years 5 months 15 days	5 years 21 days
Weighted Average Remaining Contractual Term (years), Exercisable	4 years 5 months 12 days
Aggregate Intrinsic Value, Beginning	$ 38,505
Aggregate Intrinsic Value, Ending	42,705	$ 38,505
Aggregate Intrinsic Value, Exercisable	$ 42,407

Stock Based Compensation - Summary of RSU Activity (Details) - Restricted Stock Units (RSUs) [Member]	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Awarded and unvested, Beginning Balance \| shares \| shares	1,946,006
Awards, Granted \| shares \| shares	1,045,344
Awards, Vested \| shares \| shares	(573,116)
Awards,Forfeited \| shares \| shares	(188,826)
Awarded and unvested, Ending Balance \| shares \| shares	2,229,408
Weighted Average Grant-Date Fair Value, Unvested, Beginning Balance \| $ / shares \| $ / shares	$ 12.74
Weighted Average Grant-Date Fair Value, Granted \| $ / shares \| $ / shares	19.23
Weighted Average Grant-Date Fair Value, Vested \| $ / shares \| $ / shares	12.62
Weighted Average Grant-Date Fair Value, Forfeited \| $ / shares \| $ / shares	11.66
Weighted Average Grant-Date Fair Value, Unvested, Ending Balance \| $ / shares \| $ / shares	$ 15.9

Stock-Based compensation - Summary of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	$ 3,168	$ 2,456	$ 9,424	$ 6,891
Cost Of Revenue [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	67	36	184	110
Research and Development [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	823	484	2,277	1,492
Sales and Marketing [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	1,331	690	4,135	2,096
General and Administrative [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	$ 947	$ 1,246	$ 2,828	$ 3,193

Income Taxes - Additional Information (Details)	3 Months Ended		9 Months Ended
Income Taxes - Additional Information (Details)	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Effective tax rate	0.03%	11.40%	17.60%	7.20%
Effective Income Tax Rate Reconciliation			27.00%
Difference between effective tax rate and federal statutory rate			21.00%	21.00%

Net Income per Share Attributable to Common Stock - Schedule of Computation of Basic and Diluted Net Income Per Share Attributable to Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Numerator:
Net Income (Loss)	$ 14,430	$ 9,364	$ 7,226	$ 6,377	$ 5,839	$ 704	$ 31,020	$ 12,920
Denominator:
Weighter-average shares of common stock - basic	124,538,195			123,620,260			124,251,147	123,430,652
Dilutive effect of stock options to purchase common stock	2,210,027			1,548,680			2,178,842	868,922
Dilutive effect of RSUs	721,882			429,863			714,991	153,330
Dilutive effect of warrants	144,011			41,076			109,631	4,456
Weighter-average shares of common stock - diluted	127,614,115			125,639,879			127,254,611	124,457,360
Net income per share
Basic	$ 0.12			$ 0.05			$ 0.25	$ 0.1
Diluted	$ 0.11			$ 0.05			$ 0.24	$ 0.1

Net Income per Share Attributable to Common Stock - Schedule of Common Stock Equivalents Excluded from Income (Loss) Per Diluted Share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Employee Stock Option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities	0	0	0	103,804
RSU [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities	150,723	580,102	200,322	1,149,853
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities	0	417,045	0	417,045

Paymentus (NYSE:PAY)
Historical Stock Chart
From Nov 2024 to Dec 2024

Paymentus (NYSE:PAY)
Historical Stock Chart
From Dec 2023 to Dec 2024

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

PAY Paymentus Holdings Inc

Paymentus Holdings Inc News

Your Recent History

Company

Business

Popular

Get The App

Trending Now

Toplists

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

PAY Paymentus Holdings Inc

Paymentus Holdings Inc News

Your Recent History

Company

Business

Popular

Get The App

Go Ad-Free