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 ...

Investors with an interest in Financial Transaction Services stocks have likely encountered both Nuvei Corporation (NVEI) and Flyware (FLYW) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on ...

PRINCETON, N.J., April 18, 2024 /PRNewswire/ -- Major League Table Tennis (MLTT) is thrilled to announce Flywire (Nasdaq: FLYW) as the title sponsor for its upcoming championship weekend, set to take place at Loyola University's Gentile Arena in Chicago, Illinois, on April 27-28, 2024. Major League Table Tennis is thrilled to announce Flywire as the title sponsor for its championship weekend in Chicago. Post this Jiwei Xia (right) of the Portland Paddlers returns a serve from Olajide Omotayo of the Seatt ...

Flyware (FLYW) has been on a downward spiral lately with significant selling pressure. After declining 9.6% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.Here is How to Spot Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is ove ...

Flywire's integration with VTEX provides a streamlined payment experience across entire student financial lifecycle Partnership underscores Flywire's commitment to expansion throughout Latin America BOSTON, March 21, 2024 (GLOBE NEWSWIRE) -- Flywire Corporation (Flywire) (NASDAQ:FLYW), a global payments enablement and software company, has announced a strategic partnership with VTEX, the global enterprise digital commerce platform. Incorporating Flywire's digital education payment solution into the VTEX dig ...

Shares of Flyware (FLYW) have gained 9.6% over the past four weeks to close the last trading session at $24.95, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $36 indicates a potential upside of 44.3%.The mean estimate comprises 16 short-term price targets with a standard deviation of $4.29. While the lowest estimate of $30 indicates a 20.2% increase from the current price leve ...

Investors might want to bet on Flyware (FLYW) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.The upward trend in estimate revisions for this payments company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trend ...

Flyware (FLYW) closed the last trading session at $28.25, gaining 28.8% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $35.71 indicates a 26.4% upside potential.The mean estimate comprises 17 short-term price targets with a standard deviation of $4.38. While the lowest estimate of $30 indicates a 6.2% increase from the current price level, the most optimistic analyst expects the s ...