Flywire Reports Fourth Quarter and Fiscal-Year 2024 Financial Results
Flywire (FLYW) reported Q4 2024 financial results with revenue increasing 17.0% year-over-year to $117.6 million. The company's total payment volume grew 27.6% to $6.9 billion in Q4 2024.
Key Q4 metrics include: gross profit of $74.3 million (63.2% margin), net loss of $15.9 million, and adjusted EBITDA of $16.7 million. The company added over 180 new clients in Q4, bringing the total client growth to 16% year-over-year.
Notable developments include:
- Announcement of restructuring impacting 10% of workforce
- Acquisition of Sertifi to expand Travel vertical
- Repurchase of 2.3 million shares for approximately $44 million
For fiscal-year 2025, Flywire projects revenue less ancillary services growth of 10-14% on an FX-neutral basis, with a 200-400 basis point increase in adjusted EBITDA margin. The Sertifi acquisition is expected to provide incremental revenue of $30.0-40.0 million in fiscal year 2025.
Flywire (FLYW) ha riportato i risultati finanziari del Q4 2024 con un aumento del fatturato del 17,0% rispetto all'anno precedente, raggiungendo i 117,6 milioni di dollari. Il volume totale dei pagamenti dell'azienda è cresciuto del 27,6%, raggiungendo i 6,9 miliardi di dollari nel Q4 2024.
I principali indicatori del Q4 includono: un utile lordo di 74,3 milioni di dollari (margine del 63,2%), una perdita netta di 15,9 milioni di dollari e un EBITDA rettificato di 16,7 milioni di dollari. L'azienda ha acquisito oltre 180 nuovi clienti nel Q4, portando la crescita totale dei clienti al 16% rispetto all'anno precedente.
Sviluppi notevoli includono:
- Annuncio di una ristrutturazione che impatta il 10% della forza lavoro
- Acquisizione di Sertifi per espandere il settore dei viaggi
- Riacquisto di 2,3 milioni di azioni per circa 44 milioni di dollari
Per l'anno fiscale 2025, Flywire prevede una crescita del fatturato, escluse le entrate accessorie, del 10-14% su base neutrale rispetto ai tassi di cambio, con un aumento di 200-400 punti base nel margine EBITDA rettificato. Si prevede che l'acquisizione di Sertifi fornisca un incremento del fatturato di 30,0-40,0 milioni di dollari per l'anno fiscale 2025.
Flywire (FLYW) reportó los resultados financieros del Q4 2024, con un aumento del 17,0% en los ingresos interanuales, alcanzando los 117,6 millones de dólares. El volumen total de pagos de la compañía creció un 27,6%, alcanzando los 6,9 mil millones de dólares en el Q4 2024.
Las métricas clave del Q4 incluyen: un beneficio bruto de 74,3 millones de dólares (margen del 63,2%), una pérdida neta de 15,9 millones de dólares y un EBITDA ajustado de 16,7 millones de dólares. La empresa sumó más de 180 nuevos clientes en el Q4, llevando el crecimiento total de clientes al 16% interanual.
Desarrollos notables incluyen:
- Anuncio de una reestructuración que afecta al 10% de la fuerza laboral
- Adquisición de Sertifi para expandir el sector de viajes
- Recompra de 2,3 millones de acciones por aproximadamente 44 millones de dólares
Para el año fiscal 2025, Flywire proyecta un crecimiento de ingresos, excluyendo servicios auxiliares, del 10-14% en base neutral a tipo de cambio, con un aumento de 200-400 puntos básicos en el margen EBITDA ajustado. Se espera que la adquisición de Sertifi proporcione ingresos adicionales de 30,0-40,0 millones de dólares en el año fiscal 2025.
플라이와이어 (FLYW)는 2024년 4분기 재무 결과를 보고하며, 수익이 전년 대비 17.0% 증가하여 1억 1,760만 달러에 달했다고 발표했습니다. 회사의 총 결제 금액은 27.6% 증가하여 69억 달러에 도달했습니다.
4분기의 주요 지표로는 7,430만 달러의 총 이익(63.2% 마진), 1,590만 달러의 순손실, 1,670만 달러의 조정 EBITDA가 포함됩니다. 회사는 4분기에 180명 이상의 신규 고객을 추가하여 연간 고객 성장률을 16%로 끌어올렸습니다.
주요 개발 사항에는 다음이 포함됩니다:
- 10%의 인력에 영향을 미치는 구조조정 발표
- 여행 분야 확장을 위한 Sertifi 인수
- 약 4,400만 달러에 230만 주의 자사주 매입
2025 회계연도에 대해 플라이와이어는 부수 서비스 제외 시 수익이 10-14% 성장할 것으로 예상하며, 조정 EBITDA 마진이 200-400 베이시스 포인트 증가할 것으로 보입니다. Sertifi 인수는 2025 회계연도에 3천만~4천만 달러의 추가 수익을 제공할 것으로 예상됩니다.
Flywire (FLYW) a annoncé ses résultats financiers pour le 4ème trimestre 2024, avec une augmentation de 17,0% des revenus par rapport à l'année précédente, atteignant 117,6 millions de dollars. Le volume total des paiements de l'entreprise a augmenté de 27,6% pour atteindre 6,9 milliards de dollars au 4ème trimestre 2024.
Les indicateurs clés du 4ème trimestre comprennent : un bénéfice brut de 74,3 millions de dollars (marge de 63,2%), une perte nette de 15,9 millions de dollars et un EBITDA ajusté de 16,7 millions de dollars. L'entreprise a ajouté plus de 180 nouveaux clients au 4ème trimestre, portant la croissance totale des clients à 16% par rapport à l'année précédente.
Les développements notables incluent :
- Annonce d'une restructuration touchant 10% de la main-d'œuvre
- Acquisition de Sertifi pour étendre le secteur des voyages
- Rachat de 2,3 millions d'actions pour environ 44 millions de dollars
Pour l'exercice fiscal 2025, Flywire prévoit une croissance des revenus, hors services annexes, de 10-14% sur une base neutre en matière de change, avec une augmentation de 200-400 points de base de la marge EBITDA ajustée. L'acquisition de Sertifi devrait générer des revenus supplémentaires de 30,0-40,0 millions de dollars pour l'exercice fiscal 2025.
Flywire (FLYW) hat die finanziellen Ergebnisse für das 4. Quartal 2024 veröffentlicht, mit einem Umsatzanstieg von 17,0% im Vergleich zum Vorjahr auf 117,6 Millionen Dollar. Das Gesamtzahlungsvolumen des Unternehmens wuchs um 27,6% auf 6,9 Milliarden Dollar im 4. Quartal 2024.
Wichtige Kennzahlen des 4. Quartals sind: ein Bruttogewinn von 74,3 Millionen Dollar (63,2% Marge), ein Nettoverlust von 15,9 Millionen Dollar und ein bereinigtes EBITDA von 16,7 Millionen Dollar. Das Unternehmen hat im 4. Quartal über 180 neue Kunden hinzugewonnen, was das gesamte Kundenwachstum auf 16% im Vergleich zum Vorjahr bringt.
Bemerkenswerte Entwicklungen umfassen:
- Ankündigung einer Umstrukturierung, die 10% der Belegschaft betrifft
- Übernahme von Sertifi zur Erweiterung des Reisebereichs
- Rückkauf von 2,3 Millionen Aktien für etwa 44 Millionen Dollar
Für das Geschäftsjahr 2025 prognostiziert Flywire ein Umsatzwachstum ohne Nebendienstleistungen von 10-14% auf FX-neutraler Basis, mit einem Anstieg der bereinigten EBITDA-Marge um 200-400 Basispunkte. Die Übernahme von Sertifi wird voraussichtlich zusätzliche Einnahmen von 30,0-40,0 Millionen Dollar im Geschäftsjahr 2025 bringen.
- Total Payment Volume grew 27.6% YoY to $6.9B in Q4
- Revenue increased 17.0% YoY to $117.6M
- Adjusted EBITDA margins improved 680 bps YoY to 14.8%
- Client base grew 16% YoY with 800+ new clients in 2024
- Strategic acquisition of Sertifi to expand Travel vertical
- Net loss of $15.9M in Q4 2024 vs. net income of $1.3M in Q4 2023
- Restructuring affecting 10% of workforce
- Lowered growth outlook for 2025 (10-14% vs. previous growth rates)
- 3% FX headwind expected throughout 2025
Insights
Flywire's Q4 2024 results reveal a company in strategic transition, balancing strong operational performance with decisive restructuring moves. The 17.4% growth in revenue less ancillary services to $112.8 million, alongside a 27.6% increase in payment volume to $6.9 billion, demonstrates robust demand for Flywire's payment solutions despite macroeconomic headwinds.
The standout metric is the 680 basis point improvement in adjusted EBITDA margin to 14.8%, signaling management's successful execution on operational efficiency initiatives. This margin expansion occurred despite a net loss of $15.9 million, which likely includes restructuring costs and investments in future growth initiatives.
The announced 10% workforce reduction coupled with the Sertifi acquisition represents a significant strategic pivot. This dual approach of cost-cutting while simultaneously expanding through acquisition indicates a deliberate portfolio reshaping rather than merely expense management. Management's focus on "complex, large-value payment processing" suggests Flywire is doubling down on higher-margin business segments where it holds competitive advantages.
The travel vertical's emergence as Flywire's second-largest revenue generator explains the strategic rationale behind acquiring Sertifi, which brings 20,000+ hotel locations to Flywire's network. This vertical integration strengthens Flywire's competitive positioning in travel payments, a sector with substantial cross-border transaction volumes and complex payment needs that align with Flywire's core competencies.
For 2025, the projected 10-14% organic growth (FX-neutral) with an additional $30-40 million from Sertifi indicates confidence in the underlying business despite the 3 percentage point FX headwind. The forecasted 200-400 basis point increase in adjusted EBITDA margin suggests continued operational leverage and efficiency gains.
The $44 million share repurchase (2.3 million shares) demonstrates management's belief in Flywire's intrinsic value despite the current net loss position. This capital allocation decision, alongside the Sertifi acquisition, indicates a balanced approach to shareholder returns and strategic growth investments.
Investors should monitor several key factors: 1) integration progress with Sertifi, 2) realization of restructuring benefits, 3) FX impact mitigation strategies, and 4) continued momentum in the travel and B2B verticals, which management expects to outperform historical growth rates.
Fourth Quarter Revenue Increased
Fourth Quarter Revenue Less Ancillary Services Increased
Company Provides First Quarter and Fiscal-Year 2025 Outlook
BOSTON, Feb. 25, 2025 (GLOBE NEWSWIRE) -- Flywire Corporation (Nasdaq: FLYW) (“Flywire” or the “Company”) a global payments enablement and software company, today reported financial results for its fourth quarter and fiscal-year ended December 31, 2024.
"Our fourth quarter results capped off another strong year for Flywire as we continued to grow the business while navigating a complex macro environment with significant headwinds,” said Mike Massaro, CEO of Flywire, “We continued to focus on business and bottom line growth and generated
"Looking ahead, we’re focused on driving effectiveness and discipline throughout our global business. We will be undertaking an operational and business portfolio review. The operational review will help ensure we are efficient and effective, with a focus on driving productivity and optimizing investments across all areas. Our comprehensive business portfolio review will focus on Flywire’s core strengths - such as complex, large-value payment processing, our global payment network, and verticalized software.”
“One of the efficiency measures we are undertaking is a restructuring, which impacts approximately
“As we refocus our teams on areas that we believe will drive Flywire’s future growth, we are excited to announce the acquisition of Sertifi, which is expected to accelerate the expansion of our fast-growing Travel vertical. Sertifi augments our travel product offering with a leading dedicated hotel property management system integration and expands our footprint across more than 20,000 hotel locations worldwide."
Fourth Quarter 2024 Financial Highlights:
GAAP Results
- Revenue increased
17.0% to$117.6 million in the fourth quarter of 2024, compared to$100.5 million in the fourth quarter of 2023. - Gross Profit increased to
$74.3 million , resulting in Gross Margin of63.2% , for the fourth quarter of 2024, compared to Gross Profit of$61.8 million and Gross Margin of61.5% in the fourth quarter of 2023. - Net loss was (
$15.9) million in the fourth quarter of 2024, compared to net income of$1.3 million in the fourth quarter of 2023.
Key Operating Metrics and Non-GAAP Results
- Number of clients grew by
16% year-over-year, with over 180 new clients added in the fourth quarter of 2024. - Total Payment Volume increased
27.6% to$6.9 billion in the fourth quarter of 2024, compared to$5.4 billion in the fourth quarter of 2023. - Revenue Less Ancillary Services increased
17.4% to$112.8 million in the fourth quarter of 2024, compared to$96.1 million in the fourth quarter of 2023. - Adjusted Gross Profit increased to
$75.6 million , up19.1% compared to$63.5 million in the fourth quarter of 2023. Adjusted Gross Margin was67.0% in the fourth quarter of 2024 compared to66.1% in the fourth quarter of 2023. - Adjusted EBITDA increased to
$16.7 million in the fourth quarter of 2024, compared to$7.7 million in the fourth quarter of 2023. Our adjusted EBITDA margins increased 680 bps year-over-year to14.8% in the fourth quarter of 2024.
2024 Business Highlights:
- We signed more than 800 new clients in fiscal-year 2024 surpassing the 700 new clients signed in fiscal-year 2023.
- Our transaction payment volume grew by
23.6% year-over-year to$29.7 billion - Our global education vertical, continued to strengthen in a number of core geographies, with U.K. region outperformance driven by new clients and net revenue retention; accompanied by growth in our network of international recruitment agents to further connect our ecosystem of clients, agents and payers
- Our travel vertical grew into our second largest vertical in terms of revenue less ancillary services, and we generated strong growth most notably with EMEA and APAC based Tour Operators and DMC providers, particularly in our new sub vertical of ocean experiences.
- Our business-to-business vertical continued its strong organic growth, enhanced by the acquisition of Invoiced.
- We further optimized our global payment network to enable vertical growth with a focus on new acceptance rails, market localization and expanded network coverage. This included continued support of our strategic payer markets like India and China, enhancing our offerings to digitize the disbursement of student loans from India and strengthening partnerships with India’s three largest banks.
- We repurchased 2.3 million shares for approximately
$44 million , inclusive of commissions, under our share repurchase program announced on August 6th, 2024.
First Quarter and Fiscal-Year 2025 Outlook:
“Effective execution drove both revenue growth and margin expansion in 2024, in spite of significant macroeconomic challenges” said Flywire's CFO, Cosmin Pitigoi. “For our 2025 financial outlook, we project revenue less ancillary services growth of 10
Based on information available as of February 25, 2025, Flywire anticipates the following results for the first quarter and fiscal-year 2025 excluding Sertifi.
| Fiscal-Year 2025 | |
| FX-Neutral GAAP Revenue Growth | 9 |
| FX-Neutral Revenue Less Ancillary Services Growth | 10 |
| Adjusted EBITDA* Margin Growth | +200-400 bps YoY |
| First Quarter 2025 | |
| FX-Neutral GAAP Revenue Growth | 10 |
| FX-Neutral Revenue Less Ancillary Services Growth | 11 |
| Adjusted EBITDA* Margin Growth | +300-600 bps YoY |
“Based on Sertifi’s historical financials, we currently expect the acquisition to provide incremental revenue of
*Flywire has not provided a quantitative reconciliation of forecasted Adjusted EBITDA Margin growth to forecasted GAAP Net Income Margin growth within this earnings release because Flywire is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. These items include, but are not limited to income taxes which are directly impacted by unpredictable fluctuations in the market price of Flywire's stock and in foreign currency exchange rates.
These statements are forward-looking and actual results may differ materially. Refer to the “Safe Harbor Statement” below for information on the factors that could cause Flywire’s actual results to differ materially from these forward-looking statements.
Conference Call
The Company will host a conference call to discuss fourth quarter and fiscal-year 2024 financial results today at 5:00 pm ET. Hosting the call will be Mike Massaro, CEO, Rob Orgel, President and COO, and Cosmin Pitigoi, CFO. The conference call can be accessed live via webcast from the Company's investor relations website at https://ir.flywire.com/. A replay will be available on the investor relations website following the call.
Note Regarding Share Repurchase Program
Repurchases under the Company’s share repurchase program (the Repurchase Program) may be made from time to time through open market purchases, in privately negotiated transactions or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions, including Rule 10b-18. The timing, value and number of shares repurchased will be determined by the Company in its discretion and will be based on various factors, including an evaluation of current and future capital needs, current and forecasted cash flows, the Company’s capital structure, cost of capital and prevailing stock prices, general market and economic conditions, applicable legal requirements, and compliance with covenants in the Company’s credit facility that may limit share repurchases based on defined leverage ratios. The Repurchase Program does not obligate the Company to purchase a specific number of, or any, shares. The Repurchase Program does not expire and may be modified, suspended or terminated at any time without notice at the Company’s discretion.
Key Operating Metrics and Non-GAAP Financial Measures
Flywire uses non-GAAP financial measures to supplement financial information presented on a GAAP basis. The Company believes that excluding certain items from its GAAP results allows management to better understand its consolidated financial performance from period to period and better project its future consolidated financial performance as forecasts are developed at a level of detail different from that used to prepare GAAP-based financial measures. Moreover, Flywire believes these non-GAAP financial measures provide its stakeholders with useful information to help them evaluate the Company’s operating results by facilitating an enhanced understanding of the Company’s operating performance and enabling them to make more meaningful period to period comparisons. There are limitations to the use of the non-GAAP financial measures presented here. Flywire’s non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Other companies, including companies in Flywire’s industry, may calculate non-GAAP financial measures differently, limiting the usefulness of those measures for comparative purposes.
Flywire uses supplemental measures of its performance which are derived from its consolidated financial information, but which are not presented in its consolidated financial statements prepared in accordance with GAAP. These non-GAAP financial measures include the following:
- Revenue Less Ancillary Services. Revenue Less Ancillary Services represents the Company’s consolidated revenue in accordance with GAAP after excluding (i) pass-through cost for printing and mailing services and (ii) marketing fees. The Company excludes these amounts to arrive at this supplemental non-GAAP financial measure as it views these services as ancillary to the primary services it provides to its clients.
- Adjusted Gross Profit and Adjusted Gross Margin. Adjusted gross profit represents Revenue Less Ancillary Services less cost of revenue adjusted to (i) exclude pass-through cost for printing services, (ii) offset marketing fees against costs incurred and (iii) exclude depreciation and amortization, including accelerated amortization on the impairment of customer set-up costs tied to technology integration. Adjusted Gross Margin represents Adjusted Gross Profit divided by Revenue Less Ancillary Services. Management believes this presentation supplements the GAAP presentation of Gross Margin with a useful measure of the gross margin of the Company’s payment-related services, which are the primary services it provides to its clients.
- Adjusted EBITDA. Adjusted EBITDA represents EBITDA further adjusted by excluding (i) stock-based compensation expense and related payroll taxes, (ii) the impact from the change in fair value measurement for contingent consideration associated with acquisitions,(iii) gain (loss) from the remeasurement of foreign currency, (iv) indirect taxes related to intercompany activity, (v) acquisition related transaction costs, and (vi) employee retention costs, such as incentive compensation, associated with acquisition activities. Management believes that the exclusion of these amounts to calculate Adjusted EBITDA provides useful measures for period-to-period comparisons of the Company’s business. We calculate adjusted EBITDA margin by dividing adjusted EBITDA by Revenue Less Ancillary Services.
- Revenue Less Ancillary Services at Constant Currency. Revenue Less Ancillary Services at Constant Currency represents Revenue Less Ancillary Services adjusted to show presentation on a constant currency basis. The constant currency information presented is calculated by translating current period results using prior period weighted average foreign currency exchange rates. Flywire analyzes Revenue Less Ancillary Services on a constant currency basis to provide a comparable framework for assessing how the business performed excluding the effect of foreign currency fluctuations.
- Non-GAAP Operating Expenses - Non-GAAP Operating Expenses represents GAAP Operating Expenses adjusted by excluding (i) stock-based compensation expense and related payroll taxes, (ii) depreciation and amortization, (iii) acquisition related transaction costs, if applicable, (iv) employee retention costs, such as incentive compensation, associated with acquisition activities and (v) the impact from the change in fair value measurement for contingent consideration associated with acquisitions.
These non-GAAP financial measures are not meant to be considered as indicators of performance in isolation from or as a substitute for the Company’s revenue, gross profit, gross margin or net income (loss), or operating expenses prepared in accordance with GAAP and should be read only in conjunction with financial information presented on a GAAP basis. Reconciliations of Revenue Less Ancillary Services, Revenue Less Ancillary Services at Constant Currency, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted EBITDA and non-GAAP Operating Expenses to the most directly comparable GAAP financial measure are presented below. Flywire encourages you to review these reconciliations in conjunction with the presentation of the non-GAAP financial measures for each of the periods presented. In future fiscal periods, Flywire may exclude such items and may incur income and expenses similar to these excluded items. Flywire has not provided a quantitative reconciliation of forecasted Adjusted EBITDA Margin growth to forecasted GAAP Net Income growth within this earnings release because it is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. These items include but are not limited to income taxes which are directly impacted by unpredictable fluctuations in the market price of Flywire's stock and in foreign exchange rates. For figures in this press release reported on an "FX-Neutral basis,” Flywire calculates the year-over-year impact of foreign currency movements using prior period weighted average foreign currency rates.
About Flywire
Flywire is a global payments enablement and software company. We combine our proprietary global payments network, next-gen payments platform and vertical-specific software to deliver the most important and complex payments for our clients and their customers.
Flywire leverages its vertical-specific software and payments technology to deeply embed within the existing A/R workflows for its clients across the education, healthcare and travel vertical markets, as well as in key B2B industries. Flywire also integrates with leading ERP systems, such as NetSuite, so organizations can optimize the payment experience for their customers while eliminating operational challenges.
Flywire supports approximately 4,500** clients with diverse payment methods in more than 140 currencies across 240 countries and territories around the world. Flywire is headquartered in Boston, MA, USA with global offices. For more information, visit www.flywire.com. Follow Flywire on X (formerly known as Twitter), LinkedIn and Facebook.
**Excludes clients from Flywire’s Invoiced and Sertifi acquisitions
Safe Harbor Statement
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding Flywire’s future operating results and financial position, Flywire’s business strategy and plans, market growth, and Flywire’s objectives for future operations. Flywire intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terms such as, but not limited to, “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “target,” “plan,” “expect,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. Such forward-looking statements are based upon current expectations that involve risks, changes in circumstances, assumptions, and uncertainties. Important factors that could cause actual results to differ materially from those reflected in Flywire's forward-looking statements include, among others, Flywire’s future financial performance, including its expectations regarding FX-Neutral GAAP Revenue Growth, FX-Neutral Revenue Less Ancillary Services Growth, and Adjusted EBITDA Margin Growth and foreign exchange rates. Risks that may cause actual results to differ materially from these forward looking statements include, but are not limited to: Flywire’s ability to execute its business plan and effectively manage its growth; Flywire’s cross-border expansion plans and ability to expand internationally; anticipated trends, growth rates, and challenges in Flywire’s business and in the markets in which Flywire operates; the sufficiency of Flywire’s cash and cash equivalents to meet its liquidity needs; political, economic, foreign currency exchange rate, inflation, legal, social and health risks, that may affect Flywire’s business or the global economy; Flywire’s beliefs and objectives for future operations; Flywire’s ability to develop and protect its brand; Flywire’s ability to maintain and grow the payment volume that it processes; Flywire’s ability to further attract, retain, and expand its client base; Flywire’s ability to develop new solutions and services and bring them to market in a timely manner; Flywire’s expectations concerning relationships with third parties, including financial institutions and strategic partners; the effects of increased competition in Flywire’s markets and its ability to compete effectively; recent and future acquisitions or investments in complementary companies, products, services, or technologies; Flywire’s ability to enter new client verticals, including its relatively new business-to-business sector; Flywire’s expectations regarding anticipated technology needs and developments and its ability to address those needs and developments with its solutions; Flywire’s expectations regarding its ability to meet existing performance obligations and maintain the operability of its solutions; Flywire’s expectations regarding the effects of existing and developing laws and regulations, including with respect to payments and financial services, taxation, privacy and data protection; economic and industry trends, projected growth, or trend analysis; the effects of global events and geopolitical conflicts, including without limitation the continuing hostilities in Ukraine and involving Israel; Flywire’s ability to adapt to changes in U.S. federal income or other tax laws or the interpretation of tax laws, including the Inflation Reduction Act of 2022; Flywire’s ability to attract and retain qualified employees; Flywire’s ability to maintain, protect, and enhance its intellectual property; Flywire’s ability to maintain the security and availability of its solutions; the increased expenses associated with being a public company; the future market price of Flywire’s common stock; and other factors that are described in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of Flywire's Annual Report on Form 10-K for the year ended December 31, 2023, and Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, which are on file with the Securities and Exchange Commission (SEC) and available on the SEC's website at https://www.sec.gov/. Additional factors may be described in those sections of Flywire’s Annual Report on Form 10-K for the year ended December 31, 2024, expected to be filed in the first quarter of 2025. The information in this release is provided only as of the date of this release, and Flywire undertakes no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.
Contacts
Investor Relations:
Masha Kahn
ir@Flywire.com
Media:
Sarah King
Media@Flywire.com
| Condensed Consolidated Statements of Operations and Comprehensive Loss | |||||||||||||||
| (Unaudited) (Amounts in thousands, except share and per share amounts) | |||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | $ | 117,550 | $ | 100,545 | $ | 492,144 | $ | 403,094 | |||||||
| Costs and operating expenses: | |||||||||||||||
| Payment processing services costs | 41,384 | 36,780 | 177,490 | 147,339 | |||||||||||
| Technology and development | 17,370 | 16,898 | 66,636 | 62,028 | |||||||||||
| Selling and marketing | 33,353 | 28,830 | 129,435 | 107,621 | |||||||||||
| General and administrative | 31,218 | 28,065 | 125,838 | 107,624 | |||||||||||
| Total costs and operating expenses | 123,325 | 110,573 | 499,399 | 424,612 | |||||||||||
| Loss from operations | $ | (5,775 | ) | $ | (10,028 | ) | $ | (7,255 | ) | $ | (21,518 | ) | |||
| Other income (expense): | |||||||||||||||
| Interest expense | (135 | ) | (92 | ) | (538 | ) | (372 | ) | |||||||
| Interest income | 4,872 | 5,638 | 21,440 | 13,349 | |||||||||||
| Gain (loss) from remeasurement of foreign currency | (13,866 | ) | 7,707 | (11,787 | ) | 4,189 | |||||||||
| Total other income (expense), net | (9,129 | ) | 13,253 | 9,115 | 17,166 | ||||||||||
| Income (loss) before provision for income taxes | (14,904 | ) | 3,225 | 1,860 | (4,352 | ) | |||||||||
| Provision (benefit) for income taxes | 995 | 1,938 | (1,040 | ) | 4,214 | ||||||||||
| Net Income (Loss) | $ | (15,899 | ) | $ | 1,287 | $ | 2,900 | $ | (8,566 | ) | |||||
| Foreign currency translation adjustment | (7,330 | ) | 3,731 | (3,594 | ) | 3,232 | |||||||||
| Unrealized losses on available-for-sale debt securities, net | $ | (441 | ) | $ | — | $ | 208 | $ | — | ||||||
| Total other comprehensive income (loss) | $ | (7,771 | ) | $ | 3,731 | $ | (3,386 | ) | $ | 3,232 | |||||
| Comprehensive income (loss) | $ | (23,670 | ) | $ | 5,018 | $ | (486 | ) | $ | (5,334 | ) | ||||
| Net loss attributable to common stockholders - basic and diluted | $ | (15,899 | ) | $ | 1,287 | $ | 2,900 | $ | (8,566 | ) | |||||
| Net loss per share attributable to common stockholders - basic | $ | (0.13 | ) | $ | 0.01 | $ | 0.02 | $ | (0.07 | ) | |||||
| Net loss per share attributable to common stockholders - diluted | $ | (0.12 | ) | $ | 0.01 | $ | 0.02 | $ | (0.07 | ) | |||||
| Weighted average common shares outstanding - basic | 124,463,252 | 121,690,938 | 124,269,820 | 114,828,494 | |||||||||||
| Weighted average common shares outstanding - diluted | 128,924,166 | 128,877,877 | 129,339,462 | 114,828,494 | |||||||||||
| Condensed Consolidated Balance Sheets | |||||||
| (Unaudited) (Amounts in thousands, except share amounts) | |||||||
| December 31, | December 31, | ||||||
| 2024 | 2023 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 495,242 | $ | 654,608 | |||
| Restricted cash | — | — | |||||
| Short-term investments | 115,848 | — | |||||
| Accounts receivable, net | 23,703 | 18,215 | |||||
| Unbilled receivables, net | 15,453 | 10,689 | |||||
| Funds receivable from payment partners | 90,110 | 113,945 | |||||
| Prepaid expenses and other current assets | 22,528 | 18,227 | |||||
| Total current assets | 762,884 | 815,684 | |||||
| Long-term investments | 50,125 | — | |||||
| Property and equipment, net | 17,160 | 15,134 | |||||
| Intangible assets, net | 118,684 | 108,178 | |||||
| Goodwill | 149,558 | 121,646 | |||||
| Other assets | 24,035 | 19,089 | |||||
| Total assets | $ | 1,122,446 | $ | 1,079,731 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 15,353 | $ | 12,587 | |||
| Funds payable to clients | 217,788 | 210,922 | |||||
| Accrued expenses and other current liabilities | 49,297 | 43,315 | |||||
| Deferred revenue | 7,337 | 6,968 | |||||
| Total current liabilities | 289,775 | 273,792 | |||||
| Deferred tax liabilities | 12,643 | 15,391 | |||||
| Other liabilities | 5,261 | 4,431 | |||||
| Total liabilities | 307,679 | 293,614 | |||||
| Commitments and contingencies (Note 16) | |||||||
| Stockholders’ equity: | |||||||
| Preferred stock, | — | — | |||||
| Voting common stock, | 13 | 11 | |||||
| Non-voting common stock, | — | 1 | |||||
| Treasury voting common stock, 4,670,974 and 2,315,045 shares as of December 31, 2024 and December 31, 2023, respectively, held at cost | (46,268 | ) | (747 | ) | |||
| Additional paid-in capital | 1,033,958 | 959,302 | |||||
| Accumulated other comprehensive income | (2,066 | ) | 1,320 | ||||
| Accumulated deficit | (170,870 | ) | (173,770 | ) | |||
| Total stockholders’ equity | 814,767 | 786,117 | |||||
| Total liabilities and stockholders’ equity | $ | 1,122,446 | $ | 1,079,731 | |||
| Condensed Consolidated Statement of Cash Flows | |||||||
| (Unaudited) (Amounts in thousands) | |||||||
| Twelve Months Ended December 31, | |||||||
| 2024 | 2023 | ||||||
| Cash flows from operating activities: | |||||||
| Net income (loss) | $ | 2,900 | $ | (8,566 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
| Depreciation and amortization | 17,363 | 15,764 | |||||
| Stock-based compensation expense | 64,933 | 43,726 | |||||
| Amortization of deferred contract costs | 972 | 1,789 | |||||
| Change in fair value of contingent consideration | (978 | ) | 380 | ||||
| Deferred tax provision (benefit) | (8,794 | ) | 72 | ||||
| Provision for uncollectible accounts | (83 | ) | 326 | ||||
| Non-cash interest expense | 230 | 298 | |||||
| Non-cash interest income | (1,435 | ) | — | ||||
| Changes in operating assets and liabilities, net of acquisitions: | |||||||
| Accounts receivable | (5,292 | ) | (2,082 | ) | |||
| Unbilled receivables | (4,764 | ) | (5,394 | ) | |||
| Funds receivable from payment partners | 23,835 | (50,975 | ) | ||||
| Prepaid expenses, other current assets and other assets | (5,322 | ) | (4,279 | ) | |||
| Funds payable to clients | 6,867 | 86,616 | |||||
| Accounts payable, accrued expenses and other current liabilities | 3,302 | 5,548 | |||||
| Contingent consideration | (93 | ) | (467 | ) | |||
| Other liabilities | (1,543 | ) | (1,260 | ) | |||
| Deferred revenue | (630 | ) | (871 | ) | |||
| Net cash provided by operating activities | 91,468 | 80,625 | |||||
| Cash flows from investing activities: | |||||||
| Acquisition of businesses, net of cash acquired | (45,230 | ) | (32,764 | ) | |||
| Purchase of debt securities | (193,927 | ) | — | ||||
| Sale of debt securities | 29,598 | — | |||||
| Capitalization of internally developed software | (5,317 | ) | (5,004 | ) | |||
| Purchases of property and equipment | (924 | ) | (1,009 | ) | |||
| Net cash (used in) investing activities | (215,800 | ) | (38,777 | ) | |||
| Cash flows from financing activities: | |||||||
| Proceeds from issuance of common stock under public offering, net of underwriter discounts and commissions | — | 261,119 | |||||
| Payments of costs related to public offering | — | (1,062 | ) | ||||
| Payment of debt issuance costs | (783 | ) | — | ||||
| Contingent consideration paid for acquisitions | (1,032 | ) | (1,207 | ) | |||
| Payments of tax withholdings for net settled equity awards | (797 | ) | (8,483 | ) | |||
| Purchases of treasury stock | (43,740 | ) | — | ||||
| Proceeds from the issuance of stock under Employee Stock Purchase Plan | 3,108 | 2,691 | |||||
| Proceeds from exercise of stock options | 5,613 | 10,360 | |||||
| Net cash provided by (used in) financing activities | (37,631 | ) | 263,418 | ||||
| Effect of exchange rates changes on cash and cash equivalents | 2,597 | (1,835 | ) | ||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | (159,366 | ) | 303,431 | ||||
| Cash, cash equivalents and restricted cash, beginning of year | $ | 654,608 | $ | 351,177 | |||
| Cash, cash equivalents and restricted cash, end of year | $ | 495,242 | $ | 654,608 | |||
| Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||
| (Unaudited) (Amounts in millions, except percentages) | ||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue | $ | 117.6 | $ | 100.5 | $ | 492.1 | $ | 403.1 | ||||||||
| Adjusted to exclude gross up for: | ||||||||||||||||
| Pass-through cost for printing and mailing | (4.5 | ) | (4.0 | ) | (15.9 | ) | (19.4 | ) | ||||||||
| Marketing fees | (0.3 | ) | (0.4 | ) | (2.0 | ) | (2.2 | ) | ||||||||
| Revenue Less Ancillary Services | $ | 112.8 | $ | 96.1 | $ | 474.2 | $ | 381.5 | ||||||||
| Payment processing services costs | 41.4 | 36.8 | 177.5 | 147.3 | ||||||||||||
| Hosting and amortization costs within technology and development expenses | 1.9 | 1.9 | 7.7 | 8.4 | ||||||||||||
| Cost of Revenue | $ | 43.3 | $ | 38.7 | $ | 185.2 | $ | 155.7 | ||||||||
| Adjusted to: | ||||||||||||||||
| Exclude printing and mailing costs | (4.5 | ) | (4.0 | ) | (15.9 | ) | (19.4 | ) | ||||||||
| Offset marketing fees against related costs | (0.3 | ) | (0.4 | ) | (2.0 | ) | (2.2 | ) | ||||||||
| Exclude depreciation and amortization | (1.3 | ) | (1.7 | ) | (5.9 | ) | (6.7 | ) | ||||||||
| Adjusted Cost of Revenue | $ | 37.2 | $ | 32.6 | $ | 161.4 | $ | 127.4 | ||||||||
| Gross Profit | $ | 74.3 | $ | 61.8 | $ | 306.9 | $ | 247.4 | ||||||||
| Gross Margin | 63.2 | % | 61.5 | % | 62.4 | % | 61.4 | % | ||||||||
| Adjusted Gross Profit | $ | 75.6 | $ | 63.5 | $ | 312.8 | $ | 254.1 | ||||||||
| Adjusted Gross Margin | 67.0 | % | 66.1 | % | 66.0 | % | 66.6 | % | ||||||||
| Three Months Ended December 31, 2024 | Twelve Months Ended December 31, 2024 | |||||||||||||||||||||||
| Transaction | Platform and Other Revenues | Revenue | Transaction | Platform and Other Revenues | Revenue | |||||||||||||||||||
| Revenue | $ | 95.3 | $ | 22.3 | $ | 117.6 | $ | 410.2 | $ | 81.9 | $ | 492.1 | ||||||||||||
| Adjusted to exclude gross up for: | ||||||||||||||||||||||||
| Pass-through cost for printing and mailing | — | (4.5 | ) | (4.5 | ) | — | (15.9 | ) | (15.9 | ) | ||||||||||||||
| Marketing fees | (0.3 | ) | — | (0.3 | ) | (2.0 | ) | — | (2.0 | ) | ||||||||||||||
| Revenue Less Ancillary Services | $ | 95.0 | $ | 17.8 | $ | 112.8 | $ | 408.2 | $ | 66.0 | $ | 474.2 | ||||||||||||
| Percentage of Revenue | 81.0 | % | 19.0 | % | 100.0 | % | 83.4 | % | 16.6 | % | 100.0 | % | ||||||||||||
| Percentage of Revenue Less Ancillary Services | 84.2 | % | 15.8 | % | 100.0 | % | 86.1 | % | 13.9 | % | 100.0 | % | ||||||||||||
| Three Months Ended December 31, 2023 | Twelve Months Ended December 31, 2023 | |||||||||||||||||||||||
| Transaction | Platform and Other Revenues | Revenue | Transaction | Platform and Other Revenues | Revenue | |||||||||||||||||||
| Revenue | $ | 81.9 | $ | 18.6 | $ | 100.5 | $ | 329.7 | $ | 73.4 | $ | 403.1 | ||||||||||||
| Adjusted to exclude gross up for: | ||||||||||||||||||||||||
| Pass-through cost for printing and mailing | — | (4.0 | ) | (4.0 | ) | — | (19.4 | ) | (19.4 | ) | ||||||||||||||
| Marketing fees | (0.4 | ) | — | (0.4 | ) | (2.2 | ) | — | (2.2 | ) | ||||||||||||||
| Revenue Less Ancillary Services | $ | 81.5 | $ | 14.6 | $ | 96.1 | $ | 327.5 | $ | 54.0 | $ | 381.5 | ||||||||||||
| Percentage of Revenue | 81.5 | % | 18.5 | % | 100.0 | % | 81.8 | % | 18.2 | % | 100.0 | % | ||||||||||||
| Percentage of Revenue Less Ancillary Services | 84.8 | % | 15.2 | % | 100.0 | % | 85.8 | % | 14.2 | % | 100.0 | % | ||||||||||||
| FX Neutral Revenue Less Ancillary Services | ||||||||||||||||||||||||
| (unaudited) (in millions) | ||||||||||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||
| 2024 | 2023 | Growth Rate | 2024 | 2023 | Growth Rate | |||||||||||||||||||
| Revenue | $ | 117.6 | $ | 100.5 | 17 | % | $ | 492.1 | $ | 403.1 | 22 | % | ||||||||||||
| Ancillary services | (4.8 | ) | (4.4 | ) | (17.9 | ) | (21.6 | ) | ||||||||||||||||
| Revenue Less Ancillary Services | 112.8 | 96.1 | 17 | % | 474.2 | 381.5 | 24 | % | ||||||||||||||||
| Effects of foreign currency rate fluctuations | (1.1 | ) | — | (2.3 | ) | — | ||||||||||||||||||
| FX Neutral Revenue Less Ancillary Services | $ | 111.7 | $ | 96.1 | 16 | % | $ | 471.9 | $ | 381.5 | 24 | % | ||||||||||||
| EBITDA and Adjusted EBITDA | ||||||||||||||||
| (Unaudited) (in millions) | ||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net loss | $ | (15.9 | ) | $ | 1.3 | $ | 2.9 | $ | (8.6 | ) | ||||||
| Interest expense | 0.1 | 0.1 | 0.5 | 0.4 | ||||||||||||
| Interest income | (4.8 | ) | (5.6 | ) | (21.4 | ) | (13.3 | ) | ||||||||
| Provision for income taxes | 1.0 | 1.9 | (1.0 | ) | 4.2 | |||||||||||
| Depreciation and amortization | 5.0 | 4.3 | 18.5 | 16.4 | ||||||||||||
| EBITDA | (14.6 | ) | 2.0 | (0.5 | ) | (0.9 | ) | |||||||||
| Stock-based compensation expense and related taxes | 16.8 | 12.9 | 65.8 | 45.2 | ||||||||||||
| Change in fair value of contingent consideration | 0.0 | — | (1.0 | ) | 0.4 | |||||||||||
| (Gain) loss from remeasurement of foreign currency | 13.9 | (7.7 | ) | 11.8 | (4.2 | ) | ||||||||||
| Indirect taxes related to intercompany activity | 0.5 | — | 0.7 | 0.2 | ||||||||||||
| Acquisition related transaction costs | 0.1 | 0.4 | 0.6 | 0.4 | ||||||||||||
| Acquisition related employee retention costs | — | 0.1 | 0.5 | 0.9 | ||||||||||||
| Adjusted EBITDA | $ | 16.7 | $ | 7.7 | $ | 77.9 | $ | 42.0 | ||||||||
| Reconciliation of Non-GAAP Operating Expenses | ||||||||||||||||
| (Unaudited) (in millions) | ||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| GAAP Technology and development | $ | 17.4 | $ | 16.9 | $ | 66.6 | $ | 62.0 | ||||||||
| (-) Stock-based compensation expense and related taxes | (3.1 | ) | (2.5 | ) | (11.8 | ) | (9.2 | ) | ||||||||
| (-) Depreciation and amortization | (2.1 | ) | (2.3 | ) | (7.4 | ) | (8.4 | ) | ||||||||
| (-) Acquisition related employee retention costs | — | 0.3 | — | (0.5 | ) | |||||||||||
| Non-GAAP Technology and development | $ | 12.2 | $ | 12.4 | $ | 47.4 | $ | 43.9 | ||||||||
| GAAP Selling and marketing | $ | 33.4 | $ | 28.8 | $ | 129.5 | $ | 107.6 | ||||||||
| (-) Stock-based compensation expense and related taxes | (4.8 | ) | (3.2 | ) | (18.3 | ) | (12.4 | ) | ||||||||
| (-) Depreciation and amortization | (2.2 | ) | (1.3 | ) | (8.2 | ) | (5.2 | ) | ||||||||
| (-) Acquisition related employee retention costs | — | (0.2 | ) | (0.5 | ) | (0.4 | ) | |||||||||
| Non-GAAP Selling and marketing | $ | 26.4 | $ | 24.1 | $ | 102.5 | $ | 89.6 | ||||||||
| GAAP General and administrative | $ | 31.2 | $ | 28.0 | $ | 125.8 | $ | 107.6 | ||||||||
| (-) Stock-based compensation expense and related taxes | (8.9 | ) | (7.2 | ) | (35.7 | ) | (23.6 | ) | ||||||||
| (-) Depreciation and amortization | (0.8 | ) | (0.7 | ) | (3.0 | ) | (2.8 | ) | ||||||||
| (-) Change in fair value of contingent consideration | — | — | 1.0 | (0.4 | ) | |||||||||||
| (-) Acquisition related transaction costs | (0.1 | ) | (0.4 | ) | (0.6 | ) | (0.4 | ) | ||||||||
| Non-GAAP General and administrative | $ | 21.4 | $ | 19.7 | $ | 87.5 | $ | 80.4 | ||||||||
| Net Margin, EBITDA Margin and Adjusted EBITDA Margin | ||||||||||||||||||||||||
| (Unaudited) (Amounts in millions, except percentages) | ||||||||||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||
| 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||
| Revenue (A) | $ | 117.6 | $ | 100.5 | $ | 17.1 | $ | 492.1 | $ | 403.1 | $ | 89.0 | ||||||||||||
| Revenue less ancillary services (B) | 112.8 | 96.1 | 16.7 | 474.2 | 381.5 | 92.7 | ||||||||||||||||||
| Net loss (C) | (15.9 | ) | 1.3 | (17.2 | ) | 2.9 | (8.6 | ) | 11.5 | |||||||||||||||
| EBITDA (D) | (14.6 | ) | 2.0 | (16.6 | ) | (0.5 | ) | (0.9 | ) | 0.4 | ||||||||||||||
| Adjusted EBITDA (E) | 16.7 | 7.7 | 9.0 | 77.9 | 42.0 | 35.9 | ||||||||||||||||||
| Net margin (C/A) | -13.5 | % | 1.3 | % | -14.8 | % | 0.6 | % | -2.1 | % | 2.7 | % | ||||||||||||
| Net margin using RLAS (C/B) | -14.1 | % | 1.3 | % | -15.4 | % | 0.6 | % | -2.3 | % | 2.9 | % | ||||||||||||
| EBITDA Margin (D/A) | -12.4 | % | 2.0 | % | -14.4 | % | -0.1 | % | -0.2 | % | 0.1 | % | ||||||||||||
| Adjusted EBITDA Margin (E/A) | 14.2 | % | 7.6 | % | 6.6 | % | 15.8 | % | 10.4 | % | 5.4 | % | ||||||||||||
| EBITDA Margin using RLAS (D/B) | -12.9 | % | 2.1 | % | -15.0 | % | -0.1 | % | -0.2 | % | 0.1 | % | ||||||||||||
| Adjusted EBITDA Margin using RLAS (E/B) | 14.8 | % | 8.0 | % | 6.8 | % | 16.4 | % | 11.0 | % | 5.4 | % | ||||||||||||
| Reconciliation of FX Neutral Revenue Growth Guidance to FX Neutral Revenue Less Ancillary Services Growth Guidance | |||||||||||||||
| Three Months Ended March 31, 2025 | Year Ended December 31, 2025 | ||||||||||||||
| Low | High | Low | High | ||||||||||||
| FX Neutral GAAP Revenue Growth | 10 | % | 13 | % | 9 | % | 13 | % | |||||||
| Adjustment for Ancillary Services | 1 | % | 1 | % | 1 | % | 1 | % | |||||||
| FX Neutral Revenue Less Ancillary Services Growth | 11 | % | 14 | % | 10 | % | 14 | % | |||||||
FAQ
What were Flywire's (FLYW) key financial metrics for Q4 2024?
How many shares did Flywire (FLYW) repurchase in 2024?
What is the expected revenue impact of Flywire's Sertifi acquisition for FY2025?
What is Flywire's (FLYW) revenue growth guidance for fiscal year 2025?
How many new clients did Flywire (FLYW) add in fiscal year 2024?
