Paymentus Reports Fourth Quarter and Full Year 2024 Financial Results

Rhea-AI Summary

Paymentus (NYSE: PAY) reported strong Q4 2024 financial results with record revenue of $257.9 million, up 56.5% year-over-year. The company processed 166.0 million transactions, a 33.0% increase from the previous year.

Key Q4 highlights include:

• Gross profit of $66.0 million (+33.4% YoY)
• Net income of $13.1 million vs $9.4 million in prior period
• Adjusted EBITDA of $27.3 million (+36.9% YoY) with 31.6% margin
• Diluted GAAP EPS of $0.10 vs $0.07 in prior period

Full year 2024 performance showed revenue of $871.7 million (+41.9% YoY), with 597.0 million transactions processed (+30.3% YoY). Net income reached $44.2 million compared to $22.3 million in the prior year, with diluted GAAP EPS of $0.35.

Positive

• Record quarterly revenue of $257.9M, up 56.5% YoY
• Q4 net income increased 39.4% to $13.1M
• Full year revenue grew 41.9% to $871.7M
• Full year net income doubled to $44.2M from $22.3M
• Transaction volume grew 33% YoY to 166M in Q4
• Strong Q4 adjusted EBITDA margin of 31.6%

Negative

• Gross profit growth (33.4%) lagged behind revenue growth (56.5%)
• Contribution profit growth (30.0%) slower than revenue growth

Insights

Financial Analyst

Paymentus delivered stellar Q4 2024 results that demonstrate exceptional momentum across all key financial metrics. The 56.5% year-over-year revenue growth to $257.9 million significantly outpaces typical fintech growth rates, indicating strong market share capture in the bill payment technology space.

Particularly impressive is the company's ability to maintain robust profitability while scaling rapidly. The 36.9% increase in adjusted EBITDA with a 31.6% margin demonstrates disciplined operational execution. This combination of high growth and expanding profitability is the hallmark of a business with strong unit economics and scalable infrastructure.

The 33% transaction volume growth to 166 million quarterly transactions suggests Paymentus continues expanding its biller network while driving higher engagement per client. The full-year metrics are equally impressive, with 41.9% revenue growth and EBITDA increasing 62.2% year-over-year.

Most noteworthy is the company's ability to nearly double net income for the full year ($44.2 million vs $22.3 million), translating to diluted GAAP EPS growth from $0.18 to $0.35. This demonstrates Paymentus is successfully converting its top-line growth into tangible shareholder value while maintaining investment in future capabilities.

The CEO's statement regarding strong bookings and backlog suggests this growth trajectory has momentum extending into 2025, indicating the company's competitive positioning remains strong in the evolving bill payment landscape.

56.5% Quarterly Revenue growth year-over-year

Adjusted EBITDA rose 36.9% year-over-year, reflecting a 31.6% margin

CHARLOTTE, N.C.--(BUSINESS WIRE)-- Paymentus Holdings, Inc. (“Paymentus”) (NYSE: PAY), a leading provider of cloud-based bill payment technology and solutions, today announced its unaudited financial results for its fourth quarter and full year ended December 31, 2024.

“Paymentus ended the year with quarterly results that exceeded our expectations across virtually all facets of our business. Fourth quarter revenue, contribution profit and adjusted EBITDA rose 56.5%, 30.0% and 36.9% year-over-year, respectively. These results, combined with our strong bookings and backlog at year-end, give us confidence that we are well positioned to deliver solid growth in 2025, as we continue to execute on our longer-term strategic goals,” said Dushyant Sharma, Founder and CEO.

Fourth Quarter 2024 Financial and Business Highlights

• Revenue was a record $257.9 million, a year-over-year increase of 56.5%, driven largely by increased billers and transactions.
• Gross profit was $66.0 million, an increase of 33.4% year-over-year. Adjusted gross profit⁽¹⁾ was $71.8 million, up 32.4% year-over-year.
• Contribution profit⁽¹⁾ was $86.2 million, a year-over-year increase of 30.0%.
• Net income was $13.1 million compared to $9.4 million in the prior period and diluted GAAP earnings per share was $0.10 compared to $0.07 in the prior period.
• Non-GAAP net income^{(1, 2)} was $16.3 million compared to $11.8 million the prior period and diluted non-GAAP earnings per share^{(1, 2)} was $0.13 compared to $0.09 in the prior period.
• Record adjusted EBITDA⁽¹⁾ was $27.3 million, representing a 31.6% adjusted EBITDA margin⁽¹⁾, a 36.9% increase in adjusted EBITDA year-over-year.
• The Company processed 166.0 million transactions during the fourth quarter of 2024, an increase of 33.0% year-over-year.

Full Year 2024 Financial and Business Highlights

• Revenue was $871.7 million, an increase of 41.9% year-over-year, driven largely by increased billers and transactions.
• Gross profit was $238.2 million, an increase of 30.6% year-over-year. Adjusted gross profit⁽¹⁾ was $259.6 million, up 30.4% year-over-year.
• Contribution profit⁽¹⁾ was $312.1 million, a year-over-year increase of 29.5%.
• Net income was $44.2 million compared to $22.3 million in the prior period and diluted GAAP earnings per share was $0.35 compared to $0.18 in the prior period.
• Non-GAAP net income^{(1, 2)} was $56.2 million compared to $32.2 million in the prior period and diluted non-GAAP earnings per share^{(1, 2)} was $0.44 compared to $0.26 in the prior period.
• Adjusted EBITDA⁽¹⁾ was $94.2 million for the full year of 2024, representing a 30.2% adjusted EBITDA margin⁽¹⁾, an increase of 62.2% year-over-year.
• The Company processed 597.0 million transactions for the full year 2024, an increase of 30.3% year-over-year.

(1) Descriptions of the non-GAAP financial measures adjusted gross profit, contribution profit, non-GAAP net income, non-GAAP earnings per share, adjusted EBITDA, and adjusted EBITDA margin are provided below under “Use and Definitions of Non-GAAP Financial Measures,” and reconciliations are provided in the tables at the end of this release.

(2) Non-GAAP net income and Non-GAAP earnings per share are adjusted for an assumed provision for income taxes based on our long term projected non-GAAP tax rate of 25%. See “Use and Definitions of Non-GAAP Financial Measures” below for additional information regarding Non-GAAP net income and Non-GAAP earnings per share.

Financial Guidance

The statements in this section are forward-looking statements. For additional information regarding the use and limitations of such statements, refer to “Forward-Looking Statements” below and the “Risk Factors” section of Paymentus’ most recent Form 10-K for the fiscal year ended December 31, 2023, filed with the Securities and Exchange Commission, or SEC, on March 5, 2024, subsequent Forms 10-Q filed with the SEC in 2024, and Form 10-K for the fiscal year ended December 31, 2024, expected to be filed with the SEC in March 2025.

	First Quarter 2025	Fiscal-Year 2025
Revenue	$241 million to $249 million	$1,040 million to $1,060 million
Contribution Profit	$84 million to $86 million	$358 million to $366 million
Adjusted EBITDA	$24 million to $26 million	$112 million to $116 million

Paymentus does not reconcile its forward-looking guidance for non-GAAP measures because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated due to potential variability, complexity and uncertainty as to the items that would be excluded from the GAAP measure in the relevant future period. Refer to “Use of Forward-Looking Non-GAAP Measures” below for additional explanation.

Conference Call Information

In conjunction with this announcement, Paymentus will host a conference call for investors today at 5:00 p.m. ET (2:00 p.m. PT) to discuss its fourth quarter and full year 2024 results and outlook for 2025. The live webcast and replay will be available at the Investor Relations section of Paymentus’ website at ir.paymentus.com or click here. To participate via telephone, dial 1-833-470-1428 (US Toll-Free) or 1-404-975-4839 (International), access code 897629. A replay will be available after 5:00 p.m. PT on the same web site.

About Paymentus

Paymentus is a leading provider of cloud-based bill payment technology and solutions for more than 2,500 billers and financial institutions across North America. Our omni-channel platform provides consumers with easy-to-use, flexible and secure electronic bill payment experiences through their preferred payment channel and type. Paymentus’ proprietary Instant Payment Network^TM, or IPN, extends our reach by connecting our IPN partners’ platforms and tens of thousands of billers to our integrated billing, payment, and reconciliation capabilities. For more information, please visit www.paymentus.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding bookings and backlog, our ability to deliver near and longer-term growth and strategic objectives, outlook for 2025, future financial performance and our first quarter and full year 2025 financial guidance. Forward-looking statements include statements containing words such as “expect,” “anticipate,” “believe,” “project,” “will” and similar expressions intended to identify forward-looking statements.

These forward-looking statements are based on our current expectations. Forward-looking statements involve risks and uncertainties. Our actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to our ability to effectively manage our growth and expand our operations, including into new channels and industry verticals across different markets; our ability to expand and retain our biller, financial institution, partner and consumer base; our ability to timely implement new bookings and recognize anticipated revenue therefrom, our ability to manage economic challenges, including inflation; the impact of future widespread health issues on our operating results, liquidity and financial condition and on our employees, billers, financial institutions, partners, consumers and other key stakeholders; our ability to remain competitive; our ability to develop new product features and enhance our platform and brand; our future acquisitions and strategic investments; our ability to hire and retain experienced and talented employees; the impact of any cybersecurity incidents; the impact of evolving regulations and our ability to maintain regulatory compliance; and other risks and uncertainties included under the caption “Risk Factors” and elsewhere in our filings with the SEC, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 5, 2024, and subsequent Quarterly Reports on Form 10-Q filed with the SEC in 2024, and our Annual Report on Form 10-K for the year ended December 31, 2024, which we expect to file with the SEC shortly after the date of this release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

All forward-looking statements are qualified in their entirety by this cautionary statement, and we undertake no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.

Use of Forward-Looking Non-GAAP Measures

We do not meaningfully reconcile guidance for adjusted EBITDA and adjusted EBITDA margin, because we cannot provide guidance for the more significant reconciling items between net income and adjusted EBITDA without unreasonable effort. This is due to the fact that future period non-GAAP guidance includes adjustments for items not indicative of our core operations, which may include, without limitation, items included in the supplemental financial information for reconciliation of reported GAAP results to non-GAAP results. Such items include acquisition related amortization expense for acquired intangibles, foreign exchange gains and losses, adjustments to our income tax provision and certain other items we believe to be non-indicative of our ongoing operations. Such adjustments may be affected by changes in ongoing assumptions and judgments, as well as nonrecurring, unusual or unanticipated charges, expenses or gains/losses or other items that may not directly correlate to the underlying performance of our business operations. The exact amount of these adjustments is not currently determinable but may be significant. In addition, we do not meaningfully reconcile guidance for contribution profit, because the determination of contribution is subject to variables outside our control, such as an increase in the average payment amount, changes in the payment mix, or the payment channel used by consumers that can influence contribution profit, and cannot be determined without unreasonable effort, if at all.

Use and Definitions of Non-GAAP Financial Measures

In addition to disclosing financial measures in accordance with accounting principles generally accepted in the United States, or GAAP, this press release and the accompanying tables contain certain non-GAAP financial measures, including adjusted gross profit, contribution profit, non-GAAP net income (including those amounts as a percentage of revenue), non-GAAP earnings per share, adjusted EBITDA, adjusted EBITDA margin, non-GAAP operating expense and free cash flow. We use non-GAAP measures to supplement financial information presented on a GAAP basis. We believe that excluding certain items from our GAAP results allows management and our board of directors to more fully understand our consolidated financial performance from period to period and helps management project our future consolidated financial performance as forecasts are developed at a level of detail different from that used to prepare GAAP-based financial measures.

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

Contribution profit is defined as gross profit plus other cost of revenue. Other cost of revenue equals cost of revenue less interchange and assessment fees paid by us to our payment processors. Interchange and assessment fees paid by us to our payment processors are excluded from contribution profit because we believe inclusion is less directly reflective of our operating performance as we do not control the payment channel used by consumers, which is the primary determinant of the amount of interchange and assessment fees. We use contribution profit to measure the amount available to fund our operations after interchange and assessment fees, which are directly linked to the number of transactions we process and thus our revenue and gross profit.

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

Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of contribution profit.

Non-GAAP operating expense is defined as total operating expense excluding amortization of acquisition-related intangibles, stock-based compensation and other nonrecurring expenses. Management believes that the adjustment of acquisition-related intangibles amortization supplements the GAAP information with a measure that can be used to assess the comparability of operating performance. Although we exclude amortization of acquisition-related intangible assets from our non-GAAP expenses, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Any future acquisitions may result in the amortization of additional intangible assets.

Non-GAAP net income and non-GAAP EPS are defined as the applicable GAAP measure, adjusted for (1) stock-based compensation, (2) amortization of acquisition-related intangibles (3) certain nonrecurring items such as discrete tax items, one-time expenses or other non-cash items and (4) an assumed provision for income taxes based on our long-term projected non-GAAP tax rate. Our long-term projected non-GAAP tax rate is subject to change for a variety of reasons, including significant changes in our earnings, tax adjustments, and potential future changes to business operations. We will re-evaluate our long-term projected tax rate as appropriate.

We believe non-GAAP net income and non-GAAP EPS enhance the understanding of our operating performance and enable more meaningful period-to-period comparisons.

Free cash flow is defined as net cash provided by (used in) operating activities less capital expenditures and capitalized internal-use software development costs.

We believe these non-GAAP measures provide our investors with useful information to help them evaluate our operating results by facilitating an enhanced understanding of our operating performance and enabling them to make more meaningful period-to-period comparisons.

We use these non-GAAP measures in conjunction with GAAP measures as part of our overall assessment of our performance and liquidity, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance and liquidity. There are limitations to the use of the non-GAAP measures presented in this press release. Our non-GAAP measures may not be comparable to similarly titled measures of other companies; other companies, including companies in our industry, may calculate non-GAAP measures differently than we do, limiting the usefulness of those measures for comparative purposes. These non-GAAP measures should not be considered in isolation from or as a substitute for financial measures prepared in accordance with GAAP.

We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure, and to view our non-GAAP measures in conjunction with GAAP financial measures. For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables for the reconciliation of GAAP to non-GAAP results included at the end of this release.

PAYMENTUS HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (In thousands, except share and per share data)
	Three Months Ended December 31,								Year Ended December 31,
	2024				2023				2024				2023
Revenue	$	257,877			$	164,800			$	871,745			$	614,490
Cost of revenue		191,848				115,308				633,575				432,148
Gross profit		66,029				49,492				238,170				182,342
Operating expenses
Research and development		13,561				10,653				51,334				44,248
Sales and marketing		28,596				20,652				105,052				83,996
General and administrative		9,682				9,047				36,927				36,005
Total operating expenses		51,839				40,352				193,313				164,249
Income from operations		14,190				9,140				44,857				18,093
Interest income, net		2,020				2,016				8,742				7,019
Other income		70				44				345				12
Income before income taxes		16,280				11,200				53,944				25,124
Provision for income taxes		(3,131	)			(1,798	)			(9,775	)			(2,802	)
Net income	$	13,149			$	9,402			$	44,169			$	22,322
Net income per share
Basic	$	0.11			$	0.08			$	0.36			$	0.18
Diluted	$	0.10			$	0.07			$	0.35			$	0.18
Weighted-average number of shares used to compute net income per share
Basic		124,732,054				123,751,835				124,372,031				123,511,608
Diluted		128,714,996				126,502,771				127,714,622				125,071,829
Comprehensive income
Net income		13,149				9,402				44,169				22,322
Foreign currency translation adjustments, net of tax		(230	)			87				(320	)			109
Comprehensive income	$	12,919			$	9,489			$	43,849			$	22,431

PAYMENTUS HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data)
	December 31,				December 31,
	2024				2023
Assets
Current assets
Cash and cash equivalents	$	205,900			$	179,361
Restricted cash and cash equivalents		3,511				3,834
Accounts and other receivables, net of allowance for expected credit losses of $257 and $435, respectively		119,816				76,389
Income tax receivable		3,356				259
Prepaid expenses and other assets		13,058				10,505
Total current assets		345,641				270,348
Property and equipment, net		1,157				1,558
Capitalized internal-use software development costs, net		67,375				58,787
Intangible assets, net		19,076				27,158
Goodwill		131,815				131,860
Operating lease right-of-use assets		7,801				10,027
Deferred tax asset		367				94
Prepaid expenses and other assets, less current portion		3,015				5,031
Total assets	$	576,247			$	504,863
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	49,871			$	35,182
Accrued liabilities		26,462				21,301
Current portion of operating lease liabilities		2,090				1,853
Contract liabilities		2,937				4,089
Income tax payable		190				363
Total current liabilities		81,550				62,788
Deferred tax liability		—				1,067
Operating lease liabilities, less current portion		6,318				8,661
Contract liabilities, less current portion		2,783				2,731
Total liabilities		90,651				75,247
Stockholders’ equity
Class A common stock, $0.0001 par value per share, 883,950,000 shares authorized as of December 31, 2024 and December 31, 2023; 32,136,989 and 20,758,603 shares issued and outstanding as of December 31, 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 December 31, 2024 and December 31, 2023; 92,699,294 and 103,062,508 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively		10				10
Additional paid-in capital		389,904				377,773
Accumulated other comprehensive (loss) income		(233	)			87
Retained earnings		95,913				51,744
Total stockholders’ equity		485,596				429,616
Total liabilities and stockholders' equity	$	576,247			$	504,863

PAYMENTUS HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
	Three Months Ended December 31,								Year Ended December 31,
	2024				2023				2024				2023
Cash flows from operating activities
Net income	$	13,149			$	9,402			$	44,169			$	22,322
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization		9,657				8,286				36,484				30,600
Deferred income taxes		(16	)			135				(1,349	)			413
Stock-based compensation		3,000				2,499				10,990				9,390
Amortization of capitalized warrants cost		572				482				2,006				1,911
Non-cash lease expense		583				443				2,389				1,789
Amortization of capitalized contract acquisition cost		356				320				1,751				1,088
Provision for expected credit losses and credit adjustments		517				603				3,369				886
Other non-cash adjustments		—				—				(213	)			—
Change in operating assets and liabilities
Accounts and other receivables		(9,266	)			(2,126	)			(46,921	)			(9,472	)
Prepaid expenses and other assets		1,162				613				(3,417	)			(1,184	)
Accounts payable		(524	)			1,738				13,825				6,017
Accrued liabilities		7,356				2,100				7,159				6,288
Operating lease liabilities		(597	)			(453	)			(2,253	)			(1,817	)
Contract liabilities		786				(1,593	)			(1,097	)			(361	)
Income taxes receivable, net of payable		1,178				1,992				(3,258	)			958
Net cash provided by operating activities		27,913				24,441				63,634				68,828
Cash flows from investing activities
Purchases of property and equipment		(81	)			(89	)			(457	)			(600	)
Purchases of interest-bearing deposits		(1,122	)			—				(3,691	)			—
Proceeds from matured interest-bearing deposits		940				—				3,506				—
Capitalized internal-use software development costs		(8,881	)			(8,360	)			(36,119	)			(33,699	)
Net cash used in investing activities		(9,144	)			(8,449	)			(36,761	)			(34,299	)
Cash flows from financing activities
Proceeds from exercise of stock-based awards		182				181				338				616
Settlement of holdback liability related to prior acquisitions		—				—				(545	)			—
Payments on other financing obligations		—				—				—				(1,709	)
Payments on finance leases		—				—				—				(102	)
Net cash provided by (used in) financing activities		182				181				(207	)			(1,195	)
Effect of exchange rate changes on Cash and cash equivalents and Restricted cash		(325	)			130				(450	)			176
Net increase in cash, cash equivalents and Restricted cash		18,626				16,303				26,216				33,510
Cash and cash equivalents and Restricted cash at the beginning of period		190,785				166,892				183,195				149,685
Cash and cash equivalents and Restricted cash at the end of period	$	209,411			$	183,195			$	209,411			$	183,195
Reconciliation of Cash and cash equivalents and Restricted Cash:
Cash and cash equivalents at the beginning of period		187,542				162,062				179,361				147,334
Restricted cash at the beginning of period		3,243				4,830				3,834				2,351
Cash and cash equivalents and Restricted cash at the beginning of period	$	190,785			$	166,892			$	183,195			$	149,685
Cash and cash equivalents at the end of period		205,900				179,361				205,900				179,361
Restricted cash at the end of period		3,511				3,834				3,511				3,834
Cash and cash equivalents and Restricted cash at the end of period	$	209,411			$	183,195			$	209,411			$	183,195

PAYMENTUS HOLDINGS, INC.
GAAP to Non-GAAP Reconciliations (Unaudited)
(in thousands, except percentages and per share data)

The following tables set forth our non-GAAP financial measures with reconciliations to the most directly comparable GAAP financial measures.

Adjusted Gross Profit

	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
	(in thousands)
Gross profit	$	66,029		$	49,492		$	238,170		$	182,342
Stock-based compensation		67			46			251			156
Amortization of capitalized software development costs		4,889			3,868			17,911			13,341
Amortization of acquisition-related intangibles		828			828			3,313			3,314
Adjusted gross profit	$	71,813		$	54,234		$	259,645		$	199,153

Contribution Profit

	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
	(in thousands)
Gross profit	$	66,029		$	49,492		$	238,170		$	182,342
Plus: other cost of revenue		20,187			16,842			73,898			58,606
Contribution profit	$	86,216		$	66,334		$	312,068		$	240,948

Adjusted EBITDA and Adjusted EBITDA Margin

	Three Months Ended December 31,								Year Ended December 31,
	2024				2023				2024				2023
	(in thousands)
Net income — GAAP	$	13,149			$	9,402				44,169			$	22,322
Interest income, net		(2,020	)			(2,016	)			(8,742	)			(7,019	)
Other income(1)		—				—				(213	)			—
Provision for income taxes		3,131				1,798				9,775				2,802
Amortization of capitalized software development costs		7,439				6,063				27,586				21,349
Amortization of acquisition-related intangibles		2,020				2,021				8,081				8,380
Depreciation		198				202				817				871
EBITDA	$	23,917			$	17,470			$	81,473			$	48,705
Adjustments
Foreign exchange gain		(70	)			(44	)			(132	)			(12	)
Stock-based compensation		3,431				2,499				12,855				9,390
Adjusted EBITDA	$	27,278			$	19,925			$	94,196			$	58,083
Adjusted EBITDA margin		31.6	%			30.0	%			30.2	%			24.1	%

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

PAYMENTUS HOLDINGS, INC.
GAAP to Non-GAAP Reconciliations (Unaudited)
(in thousands, except percentages and per share data)

Non-GAAP Operating Expense

	Three Months Ended December 31,								Year Ended December 31,
	2024				2023				2024				2023
	(in thousands)
Operating expenses — GAAP	$	51,839			$	40,352			$	193,313			$	164,249
Stock-based compensation		(3,364	)			(2,453	)			(12,604	)			(9,234	)
Amortization of acquisition-related intangibles		(1,192	)			(1,193	)			(4,768	)			(5,066	)
Non-GAAP operating expense	$	47,283			$	36,706			$	175,941			$	149,949

Non-GAAP Net Income & Non-GAAP EPS⁽¹⁾

	Three Months Ended December 31,								Year Ended December 31,
	2024				2023				2024				2023
	(in thousands)
Income before taxes — GAAP	$	16,280			$	11,200			$	53,944			$	25,124
Provision for income taxes — GAAP		(3,131	)			(1,798	)			(9,775	)			(2,802	)
Net income — GAAP		13,149				9,402				44,169				22,322
Stock-based compensation		3,431				2,499				12,855				9,390
Amortization of acquisition-related intangibles		2,020				2,021				8,081				8,380
Non-GAAP net income before non-GAAP tax adjustments		18,600				13,922				65,105				40,092
Income tax effects on adjustments		(2,302	)			(2,132	)			(8,945	)			(7,922	)
Non-GAAP net income after non-GAAP tax adjustments	$	16,298			$	11,790			$	56,160			$	32,170
Weighted-average shares of common stock — diluted		128,714,996				126,502,771				127,714,622				125,071,829
Earnings per share — diluted (GAAP)	$	0.10			$	0.07			$	0.35			$	0.18
Earnings per share before tax adjustments — diluted (Non-GAAP)	$	0.14			$	0.11			$	0.51			$	0.32
Earnings per share after tax adjustments — diluted (Non-GAAP)	$	0.13			$	0.09			$	0.44			$	0.26

(1) Non-GAAP financial information for the periods shown are adjusted for an assumed provision for income taxes based on our long-term projected tax rate of 25%. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, our long term projected tax rate on non-GAAP net income may differ from our GAAP tax rate and from our actual tax liabilities.

Free Cash Flow

	Three Months Ended December 31,								Year Ended December 31,
	2024				2023				2024				2023
	(in thousands)
Net cash provided by operating activities	$	27,913			$	24,441			$	63,634			$	68,828
Purchases of property and equipment		(81	)			(89	)			(457	)			(600	)
Capitalized internal-use software development costs		(8,881	)			(8,360	)			(36,119	)			(33,699	)
Free cash flow	$	18,951			$	15,992			$	27,058			$	34,529
Net cash used in investing activities	$	(9,144	)		$	(8,449	)		$	(36,761	)		$	(34,299	)
Net cash provided by (used in) financing activities	$	182			$	181			$	(207	)		$	(1,195	)

CATEGORY:EARNINGS

View source version on businesswire.com: https://www.businesswire.com/news/home/20250310165062/en/

At the Company

Sanjay Kalra

Chief Financial Officer

Paymentus Holdings, Inc.

ir@paymentus.com

Investor Relations

David Hanover

paymentus@kcsa.com

Media Relations

Jon Goldberg

jgoldberg@kcsa.com

Source: Paymentus

FAQ

What was Paymentus (PAY) revenue growth in Q4 2024?

Paymentus achieved 56.5% year-over-year revenue growth in Q4 2024, reaching $257.9 million.

How many transactions did PAY process in Q4 2024?

PAY processed 166.0 million transactions in Q4 2024, a 33.0% increase year-over-year.

What was PAY's earnings per share (EPS) for full year 2024?

PAY reported diluted GAAP EPS of $0.35 for full year 2024, up from $0.18 in the prior year.

How much did PAY's adjusted EBITDA grow in Q4 2024?

PAY's adjusted EBITDA grew 36.9% year-over-year in Q4 2024, reaching $27.3 million with a 31.6% margin.

What was Paymentus (PAY) full year 2024 net income?

PAY reported full year 2024 net income of $44.2 million, nearly doubling from $22.3 million in the prior year.