Second Quarter Revenue Increased 22% Year-over-Year Second Quarter Revenue Less Ancillary Services Increased 26% Year-over-Year Company Announces Acquisition of Invoiced, an Award-Winning Accounts Receivable SaaS Platform Board of Directors Authorizes $150 Million Share Repurchase Program BOSTON, Aug. 06, 2024 (GLOBE NEWSWIRE) -- Flywire Corporation (Nasdaq: FLYW) ("Flywire" or the "Company") a global payments enablement and software company, today reported financial results for its second quarter ended Jun ...

Acquisition Overview - Flywire Corporation acquires Invoiced, a SaaS platform specializing in B2B finance automation, to enhance its B2B payments business and expand its software suite for global clients [1] - The acquisition is expected to monetize several billion dollars of domestic and international invoicing volume managed annually by Invoiced [1] - Flywire estimates the target B2B segment to be responsible for approximately $10 trillion in global payment volume [1] Invoiced's Capabilities - Invoiced's SaaS platform automates Accounts Receivable (A/R) processes, including invoice management, payer communication, and payment reconciliation with ERP systems [2] - The platform integrates with leading accounting systems and ERPs such as Oracle's NetSuite, Sage Intacct, and Microsoft Business Dynamics [2] - Invoiced was recently named the 1 2024 A/R Automation Software by G2 Crowd [2] Strategic Benefits - The combination of Invoiced's A/R automation software with Flywire's global payment network, which supports over 140 currencies across 240 countries, is expected to provide a full-suite software and payments solution for the B2B industry [2] - Flywire's CEO emphasizes that the acquisition aligns with the company's thesis that software drives value in payments and will accelerate its product roadmap [3] Market Trends - The global Accounts Receivable Automation revenue market is projected to grow from USD 3.3 billion in 2022 to USD 6.5 billion by 2027, at a CAGR of 14.2% [4] - Businesses are increasingly investing in A/R solutions to improve financial operations, cash flow management, and compliance with tax regulations [4] Financial Impact - Flywire expects Invoiced to contribute approximately $2 million in revenue with software-like gross margins in FY 2024 [5] - The company plans to reinvest the majority of the margin dollars to grow the combined business [5] Flywire's Core Business - Flywire is a global payments enablement and software company that combines its proprietary payments network, next-gen platform, and vertical-specific software to deliver complex payments for clients [7] - The company supports over 4,000 clients with diverse payment methods in more than 140 currencies across 240 countries and territories [9] Integration and Expansion - Flywire leverages its vertical-specific software and payments technology to embed within A/R workflows for clients in education, healthcare, travel, and key B2B industries [8] - The company integrates with leading ERP systems like NetSuite to optimize payment experiences and eliminate operational challenges [8]

Flywire is reportedly exploring a sale after seeing interest in a takeover. The payments processor, which has a market value of $2.3 billion, is working with investment bankers to evaluate interest from private equity firms and other potential buyers, Reuters reported Friday (Aug. 2), citing unnamed sources. The talks are in the early stages and may not result in a deal, according to the report. Flywire did not immediately reply to PYMNTS' request for comment. Potential buyers' interest in an acquisition of ...

The conference call will be webcast live from Flywire's investor relations website at https://ir.flywire.com/. A replay will be available on the investor relations website following the call. Contacts Investor Relations: ICR flywireir@icrinc.com Media: Sarah King media@flywire.com About Flywire Flywire is a global payments enablement and software company. Flywire combines its proprietary global payments network, next-gen payments platform and vertical-specific software to deliver the most important and comp ...

Partnership Overview - Flywire partners with HDFC Credila, India's largest private student loan provider, to digitize cross-border payments for Indian students studying abroad [1][4] - The partnership enables Indian students to pay their educational institutions directly in Indian Rupees, simplifying the payment process [2][4] - Flywire estimates the Indian student loan market to be approximately $3+ billion in annual payment volume [4] Benefits for Stakeholders - HDFC Credila gains full transparency and trackability of overseas payments, while students benefit from an upgraded payment experience [2][5] - Flywire's technology simplifies Tax Collected at Source (TCS) calculations, saving time and money for both students and loan providers [5][7] - The partnership positions Flywire as the preferred payment method for students using HDFC Credila as their primary loan provider [17] Market Opportunity and Expansion - Flywire aims to capitalize on the significant market opportunity in India, where education loans are in high demand, with NBFCs witnessing a 43% growth in their education loan book in the first half of 2023 [17] - The company has expanded its footprint in India by establishing direct integrations with the country's three largest banks: State Bank of India, HDFC Bank, and ICICI Bank [14] - Flywire has invested in local payer support, offering around-the-clock assistance in 8 Indian languages and expanding its network of education agents and counselors [14] Company Background - Flywire supports over 4,000 clients with diverse payment methods in more than 140 currencies across 240+ countries and territories [3] - The company specializes in vertical-specific software and payments technology, serving education, healthcare, travel, and key B2B industries [10] - HDFC Credila has funded over 178,000 Indian students pursuing 3,300+ courses across 4,600+ universities in 63 countries since its inception [19] Strategic Impact - The partnership builds on Flywire's existing success in India and aligns with the growing trend of Indian students seeking overseas education [4][13] - Flywire's collaboration with HDFC Credila addresses a critical market need by streamlining the traditionally complex process of cross-border education payments [7][8] - The initiative enhances Flywire's position as a global leader in payments enablement and software solutions for education-related transactions [18]

Company Overview - Flywire supports over 4,000 clients with diverse payment methods in more than 140 currencies across 240+ countries and territories [1] - The company is headquartered in Boston, MA, with global offices [1] - Flywire is a global payments enablement and software company that combines proprietary global payments network, next-gen payments platform, and vertical-specific software [11] - Flywire leverages its vertical-specific software and payments technology to embed within existing A/R workflows across education, healthcare, travel, and key B2B industries [12] Partnership with HDFC Credila - Flywire partners with HDFC Credila, India's largest private loan provider, to digitize cross-border payment experience for education loans [3] - The partnership simplifies the complex process of making cross-border education payments, particularly for students using education loans [4] - HDFC Credila is India's first dedicated Education Loan Company, offering customized student loans with unique features and benefits [5] - The partnership positions Flywire as the preferred payment method for students using Credila as their primary loan provider [8] - Flywire estimates the Indian student loan market opportunity to be approximately $3+ billion in annual payment volume [7] Market Opportunity and Growth - Flywire expands its footprint in India to capitalize on the billions of dollars of payment volume from education loans [3] - In the first half of 2023, NBFCs in India witnessed a growth of over 43% in their education loan book, driven by demand for overseas education loans [8] - Flywire has established direct integrations with India's three largest banks: State Bank of India, HDFC Bank, and ICICI Bank, accelerating its footprint across the region [10] - Flywire has invested in local payer support, offering around-the-clock support in 8 Indian languages and expanding its network of education agents and counselors [10] Operational Benefits - The partnership with HDFC Credila enables Indian payers to seamlessly and digitally disburse their loan payments in Indian Rupees directly to higher education institutions worldwide [7] - Flywire's solution allows students to track payments through to when funds are delivered to their university [8] - Flywire's software and payments technology provide full visibility into each loan payment, streamline refunds, and simplify Tax Collected at Source (TCS) calculations, ensuring compliance with tax regulations [15] Strategic Impact - The partnership with HDFC Credila builds on Flywire's existing success in India and helps the company capitalize on the significant market opportunity around Indian student loans [7] - Flywire's collaboration with HDFC Credila solves critical market needs for both students and lenders, improving the way student loans are disbursed from India [9] - HDFC Credila benefits from full transparency and trackability of overseas payments through the partnership with Flywire [9]

Core Insights - Flywire Corporation has enhanced its offerings for students and institutions by expanding its third-party invoicing solution, which simplifies the payment process for sponsors covering tuition and fees [1][3] Industry Overview - The use of third-party sponsors, including corporate employers and government agencies, significantly contributes to the U.S. workforce economy, with American institutions and employers spending approximately $1.1 trillion annually on higher education and training [2] - Similar trends are observed in other academic markets like Australia and the U.K., where government and private sector sponsorship is prevalent, with Australia allocating an estimated $10.4 billion for higher education in the 2022-2023 budget [2] Company Developments - Flywire's solution allows higher education institutions to manage their sponsored billing and invoicing processes more effectively, offering sponsors secure payment methods [3] - A client from a large research institution reported a 70% increase in timely third-party tuition payments after implementing Flywire's solution, which centralized the management of student payments and allowed payments in local currencies [3] - The expansion of Flywire's invoicing solution was driven by client demand and collaboration with major research institutions, supported by a global payment network capable of processing over 140 currencies across 240 countries [3] Benefits of Flywire's Solution - The solution reduces administrative time by improving communication between sponsors, students, and institutions, leading to real-time resolution of discrepancies [5] - Institutions experience an approximate 20% reduction in accounts receivable collection times due to the centralized portal for sponsors [5] - Faster payments from sponsors support uninterrupted enrollment and enhance administrative efficiency [5] - Flywire's integration with student systems allows for automatic tracking of payments, ensuring accurate updates to individual student accounts [5]

It whiffed on the bottom line in its latest earnings report, and revenue guidance only met expectations.The market wasn't willing to take flight with financial software company Flywire (FLYW -16.07%) on Wednesday. After the company published its latest set of quarterly results after market hours the previous day, investors assertively traded out of the stock. It ended up closing down by more than 16% in price on a day when the bellwether S&P 500 index moved sideways.Revenue rose, but net loss deepenedOn the ...

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The company reported a 20.9% revenue increase to $114.1 million but a wider net loss of $6.2 million in Q1 2024 [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets and liabilities decreased, while stockholders' equity saw a slight increase as of March 31, 2024 Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$998,715** | **$1,079,731** | | Cash and cash equivalents | $619,014 | $654,608 | | **Total Liabilities** | **$201,730** | **$293,614** | | Funds payable to clients | $124,111 | $210,922 | | **Total Stockholders' Equity** | **$796,985** | **$786,117** | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Revenue grew year-over-year, but higher total costs and operating expenses led to an increased net loss for the quarter Statement of Operations Highlights (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Revenue** | **$114,103** | **$94,357** | | Total costs and operating expenses | $120,066 | $100,925 | | Loss from operations | $(5,963) | $(6,568) | | **Net loss** | **$(6,217)** | **$(3,683)** | | Net loss per share | $(0.05) | $(0.03) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company experienced a greater net cash outflow from operating activities, resulting in a larger net decrease in cash Statement of Cash Flows Highlights (in thousands) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(38,093) | $(20,846) | | Net cash used in investing activities | $(1,514) | $(1,849) | | Net cash provided by financing activities | $2,249 | $1,801 | | **Net decrease in cash** | **$(35,594)** | **$(22,096)** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail key accounting policies, the StudyLink acquisition, a new credit facility, and a voluntary OFAC submission - The company's revenue is primarily generated from clients in the **Americas (50.7%)**, followed by EMEA (31.7%) and APAC (17.6%) for the three months ended March 31, 2024[44](index=44&type=chunk) - In November 2023, the company acquired StudyLink for an estimated total purchase consideration of **$37.6 million**, which contributed **$2.1 million** in platform revenue during Q1 2024[71](index=71&type=chunk)[72](index=72&type=chunk)[77](index=77&type=chunk) - In February 2024, the company entered into a new five-year senior secured revolving credit facility for **$125.0 million**, replacing the previous $50.0 million facility[87](index=87&type=chunk)[88](index=88&type=chunk)[95](index=95&type=chunk) - The company identified potential violations of OFAC sanctions and made a voluntary submission in August 2023, but does not believe any resulting loss would be **material**[127](index=127&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue growth was driven by a 23% increase in payment volume, while the net loss widened due to foreign currency effects Key Operating Metrics and Non-GAAP Measures (in millions) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Payment Volume | $6,952.9 | $5,667.9 | | Revenue | $114.1 | $94.4 | | Revenue Less Ancillary Services | $110.2 | $89.1 | | Adjusted Gross Profit | $71.9 | $59.9 | | Adjusted EBITDA | $13.2 | $7.0 | - Revenue increased by **$19.7 million (20.9%)** YoY, driven by a $18.9 million (24.8%) increase in transaction revenue due to strong growth in payment volume[192](index=192&type=chunk)[193](index=193&type=chunk) - The net loss increased by **$2.5 million** YoY, largely due to a **$(4.4) million loss** from foreign currency remeasurement compared to a $1.5 million gain in the prior year[191](index=191&type=chunk)[202](index=202&type=chunk) - The company's principal source of liquidity is **$619.0 million in cash** and cash equivalents, supplemented by a new, undrawn **$125.0 million** revolving credit facility[204](index=204&type=chunk)[205](index=205&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is primarily exposed to market risks from foreign currency fluctuations and interest rate changes - The company has short-term foreign currency exchange exposure on cross-border payments and utilizes in-house hedging algorithms to mitigate this risk[225](index=225&type=chunk)[226](index=226&type=chunk) - A hypothetical **10% change in foreign exchange rates** would have impacted loss before income taxes by approximately **$15.6 million** as of March 31, 2024[228](index=228&type=chunk) - Interest rate risk exposure comes from cash equivalents and the variable-rate credit facility, under which there was **no outstanding debt** as of March 31, 2024[221](index=221&type=chunk)[224](index=224&type=chunk) [Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2024[230](index=230&type=chunk) - **No material changes** to the company's internal control over financial reporting occurred during the quarter ended March 31, 2024[231](index=231&type=chunk) [PART II. OTHER INFORMATION](index=56&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=56&type=section&id=Item%201.%20Legal%20Proceedings) The company is not party to any material legal proceedings but has voluntarily reported potential OFAC sanctions violations - The company is not currently party to any legal proceedings expected to have a **material impact** on its business or financial statements[234](index=234&type=chunk) - The company made a voluntary submission to OFAC regarding potential sanctions violations but does not believe this matter will result in a **material loss**[235](index=235&type=chunk) [Risk Factors](index=56&type=section&id=Item%201A.%20Risk%20Factors) Key risks include a history of operating losses, competition, cybersecurity threats, and extensive regulatory compliance - The company has a history of operating losses, incurring a **net loss of $6.2 million** for Q1 2024, and may not achieve or sustain profitability[244](index=244&type=chunk) - The business is subject to significant legal and regulatory risks, including complex laws for **money transmission, AML, and data privacy**, which could lead to fines or penalties[390](index=390&type=chunk)[398](index=398&type=chunk)[401](index=401&type=chunk) - Operational risks include dependence on banking partners, **cybersecurity threats**, and the challenge of managing large fund transfers where errors could result in significant losses[276](index=276&type=chunk)[317](index=317&type=chunk)[338](index=338&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=106&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company issued a small number of unregistered common stock shares as part of a settlement during the quarter - In Q1 2024, the company issued **14,166 shares** of common stock in a settlement with a former WPM stockholder, exempt from registration under Regulation S and Regulation D[475](index=475&type=chunk) [Other Information](index=107&type=section&id=Item%205.%20Other%20Information) The President and COO adopted a Rule 10b5-1 trading plan for the sale of company stock - President and COO Robert Orgel adopted a **Rule 10b5-1 trading plan** on February 29, 2024, for the sale of up to **285,548 shares** of common stock[478](index=478&type=chunk) [Exhibits](index=108&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the report, including credit agreements and officer certifications

Exhibit 99.1 Flywire Reports First Quarter 2024 Financial Results First Quarter Revenue Increased 21% Year-over-Year First Quarter Revenue Less Ancillary Services Increased 24% Year-over-Year Company Provides Second Quarter and Fiscal-Year 2024 Outlook Boston, MA – May 7, 2024: Flywire Corporation (Nasdaq: FLYW) ("Flywire" or the "Company") a global payments enablement and software company, today reported financial results for its first quarter ended March 31, 2024. "We are pleased with our 2024 first quart ...