Company Overview - Paymentus (PAY) shares increased by 5.8% to $30.05, following a significant trading volume, contrasting with a 13.1% loss over the past four weeks [1] - The stock received a rating upgrade from Market Perform to Outperform by Raymond James, with a price target set at $37.00 [2] - Paymentus has a competitive edge due to its scalable, cloud-native platform that supports omnichannel, real-time bill payments [2] Technology and Integration - The company’s integration with billing and ERP systems, along with its proprietary Instant Payment Network (IPN), connects thousands of billers and partners, including PayPal and Walmart, enhancing its market reach [3] - AI-powered features facilitate smart engagement, while flexible APIs and secure infrastructure contribute to efficiency and reliability, positioning Paymentus as a leader in modern bill payment solutions [3] Financial Performance Expectations - Paymentus is projected to report quarterly earnings of $0.14 per share, reflecting a year-over-year increase of 16.7%, with revenues expected to reach $257.95 million, up 30.7% from the previous year [4] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [5] Industry Context - Paymentus operates within the Zacks Financial Transaction Services industry, which includes other companies like MasterCard (MA) [6] - MasterCard's consensus EPS estimate for its upcoming report has increased by 0.2% to $4.05, representing a 12.8% change from the previous year [7]

Core Viewpoint - PayPoint plc has announced an extension of its share buyback programme, committing to return at least £30 million per annum to shareholders until March 2028, aiming for a reduction of at least 20% in the company's equity base over this period [2][5]. Group 1: Buyback Programme Details - The initial tranche of the buyback programme, amounting to £20 million, ran from July 1, 2024, to June 30, 2025, during which 2,849,507 ordinary shares were repurchased at an average price of 701.88 pence per share, representing 3.9% of the issued share capital at the programme's commencement [3]. - The second tranche of the buyback programme will purchase ordinary shares for an aggregate consideration of up to £30 million, starting immediately and concluding no later than March 31, 2026 [4]. - The buyback programme's sole purpose is to reduce PayPoint's share capital, with all purchased ordinary shares being cancelled [5]. Group 2: Regulatory and Operational Framework - The second tranche is subject to the authority granted by a special resolution passed on August 1, 2024, allowing for the purchase of a maximum of 7,257,609 ordinary shares, and further authority to be granted at the 2025 annual general meeting for up to 7,024,818 ordinary shares [6]. - PayPoint has engaged Investec Bank plc to conduct the buyback programme on its behalf, with trading decisions made independently of the company, adhering to pre-set parameters and regulations [7]. - Any purchases made under the buyback programme will be announced by PayPoint no later than 7:30 a.m. on the business day following the purchase [8]. Group 3: Share Capital Information - As of the announcement date, PayPoint's share capital consists of 70,140,123 ordinary shares of 1/3 pence each, with each share carrying one vote at general meetings [10].

Core Viewpoint - PayPoint Plc has demonstrated a resilient financial performance for the year ended 31 March 2025, making significant progress towards achieving its target of £100 million EBITDA by the end of FY26, while also establishing new growth targets for the next three years [3][20][44]. Group Financial Highlights - Revenue increased by 1.4% to £310.7 million from £306.4 million in FY24 [2] - Net revenue rose by 3.7% to £187.7 million compared to £181.0 million in FY24 [2] - Underlying EBITDA grew by 10.7% to £90.0 million from £81.3 million in FY24 [2] - Underlying profit before tax increased by 10.2% to £68.0 million from £61.7 million in FY24 [2] - Profit before tax decreased by 45.4% to £26.3 million from £48.2 million in FY24, impacted by adjusting items [2] - Net corporate debt rose by 44.2% to £97.4 million from £67.5 million in FY24 [2] Strategic Outlook - The company aims for net revenue growth of 5% to 8% per annum through FY28, supported by a robust business mix and growth opportunities [4][20] - An organizational framework will be established to enhance automation and agility in operations [4][21] - A share buyback program will be enhanced to return at least £30 million per annum to shareholders until the end of March 2028, targeting a reduction of at least 20% of issued share capital [4][8][22] Business Division Highlights - The Shopping division's net revenue increased by 1.2% to £65.2 million [10] - E-commerce division net revenue surged by 39.0% to £16.4 million [14] - Payments & Banking division net revenue grew by 1.7% to £54.4 million [14] - Love2shop division net revenue increased by 0.8% to £51.7 million [15] Key Performance Indicators - Underlying EBITDA reached £90.0 million, up from £81.3 million in FY24 [48] - Underlying profit before tax was £68.0 million, compared to £61.7 million in FY24 [48] - Diluted underlying earnings per share increased to 69.1 pence from 62.6 pence in FY24 [48] - Net corporate debt stood at £97.4 million, up from £67.5 million in FY24 [48]

Issuer Details - The issuer is PayPoint PLC, a UK-based company [1] - The notification pertains to an acquisition or disposal of voting rights [1] Shareholder Information - Harwood Capital LLP and North Atlantic Smaller Companies Investment Trust Plc are the shareholders involved [2] - Both entities are registered in London, United Kingdom [2] Voting Rights Notification - The threshold for voting rights was crossed on May 21, 2025, and the issuer was notified on May 22, 2025 [3] - The resulting voting rights held by Harwood Capital LLP are 4.053% of the total voting rights, amounting to 2,852,000 shares [3][4] Previous Position - The previous notification indicated a voting rights percentage of 3.031910% [3] Breakdown of Voting Rights - The voting rights attached to shares include 2,000 direct voting rights and 2,850,000 indirect voting rights, totaling 2,852,000 [4] - The direct voting rights percentage is 0.003% and the indirect voting rights percentage is 4.050% [4] Financial Instruments - There are no financial instruments reported that may affect voting rights [5][6] Control Structure - The ultimate controlling person is Christopher Harwood, associated with Harwood Capital LLP and North Atlantic Smaller Companies Investment Trust Plc [7] - The voting rights held by Christopher Harwood through Harwood Capital LLP are 0.003% and through North Atlantic Smaller Companies Investment Trust Plc are 4.050% [7] Completion Information - The completion date of the notification is May 22, 2025, and it was completed at the London Stock Exchange [8]

Paymentus (PAY) FY Conference May 13, 2025 04:30 PM ET Speaker0 Alright. Let's get started. My name is Tien Tsin Huang. I follow payments and IT services at JPMorgan, and this is the Paymentus fireside chat. We're happy to take questions at the end and also through the through the portal. But thank you to the Paymentus team for being here. Dushant Sharma, CEO Sanjay Kahara, CFO. Again, thank you both for for being here. I I always say like, Dushant, what you founded Paymentus of what, 02/2004, is that what ...

Core Viewpoint - Growth investors are increasingly focused on stocks with above-average financial growth, but identifying stocks that can sustain this growth is challenging due to associated risks and volatility [1] Group 1: Company Overview - Paymentus (PAY) is currently highlighted as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2] - The stock has a historical EPS growth rate of 132.1%, with projected EPS growth of 15.7% this year, surpassing the industry average of 11.1% [4] Group 2: Financial Metrics - Paymentus exhibits a year-over-year cash flow growth of 43.8%, significantly higher than the industry average of 5.6% [5] - The company's annualized cash flow growth rate over the past 3-5 years stands at 36.2%, compared to the industry average of 12.9% [6] Group 3: Earnings Estimates - The current-year earnings estimates for Paymentus have been revised upward, with the Zacks Consensus Estimate increasing by 4.2% over the past month [8] - The positive trend in earnings estimate revisions correlates strongly with potential near-term stock price movements [7] Group 4: Investment Positioning - Paymentus has achieved a Zacks Rank of 2 (Buy) and a Growth Score of A, positioning it well for potential outperformance in the market [10]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Overview: Paymentus (PAY) - Paymentus currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating a favorable outlook for the stock [3][4]. - The stock has shown significant price performance, with a 10.13% increase over the past week and a 29.66% increase over the past month, outperforming the Zacks Financial Transaction Services industry, which saw a 0.24% and 2.18% increase respectively [6]. - Over the past quarter, shares of Paymentus have increased by 17.11%, and over the past year, they have gained 82.44%, while the S&P 500 has moved -6.34% and 9.94% respectively [7]. Trading Volume - The average 20-day trading volume for Paymentus is 428,243 shares, which serves as a baseline for price-to-volume analysis, indicating bullish or bearish trends [8]. Earnings Outlook - Recent earnings estimate revisions for Paymentus have been positive, with one estimate moving higher for the full year, increasing the consensus estimate from $0.57 to $0.59 over the past 60 days [10]. - For the next fiscal year, one estimate has also moved upwards, with no downward revisions noted [10]. Conclusion - Considering the positive momentum indicators and earnings outlook, Paymentus is positioned as a promising investment opportunity with a Momentum Score of B and a Zacks Rank of 2 (Buy) [12].

Financial Performance - Revenue for Q1 2025 was $275,235,000, representing a 48.7% increase from $184,875,000 in Q1 2024[17] - Gross profit for Q1 2025 was $66,024,000, up from $52,725,000 in Q1 2024, indicating a gross margin improvement[17] - Net income for Q1 2025 reached $13,813,000, compared to $7,226,000 in Q1 2024, reflecting an increase of 91.5%[17] - Total revenue for the three months ended March 31, 2025, was $275.2 million, a 48.7% increase from $184.9 million in the same period of 2024[40] - Payment transaction processing revenue was $273.3 million for the three months ended March 31, 2025, compared to $182.8 million in 2024, reflecting a growth of 49.5%[40] - Contribution profit rose by approximately 26.3% to $87.6 million in Q1 2025 from $69.4 million in Q1 2024[84] - Adjusted gross profit increased by 25.9% to $72.6 million in Q1 2025 compared to $57.6 million in Q1 2024[85] - Adjusted EBITDA grew by 51.3% to $30.0 million in Q1 2025 from $19.8 million in Q1 2024[88] - Basic net income per share attributable to common stock increased to $0.11 for the three months ended March 31, 2025, compared to $0.06 for the same period in 2024[70] Cash Flow and Assets - The company reported a net cash provided by operating activities of $50,441,000 for Q1 2025, significantly higher than $10,954,000 in Q1 2024[21] - Free cash flow for Q1 2025 was $41.1 million, significantly up from $1.6 million in Q1 2024[89] - Cash and cash equivalents rose to $245,849,000 at the end of Q1 2025, compared to $205,900,000 at the end of 2024[16] - The company had $245.8 million in unrestricted cash and cash equivalents as of March 31, 2025, sufficient to support operations for at least the next 12 months[100] - The net increase in cash, cash equivalents, and restricted cash for the three months ended March 31, 2025, was $40.2 million, a substantial rise from $957,000 in the same period of 2024[103] Expenses and Liabilities - Operating expenses for Q1 2025 totaled $50,335,000, up from $44,382,000 in Q1 2024, primarily driven by increased R&D and marketing expenses[17] - Stock-based compensation expense for the three months ended March 31, 2025, totaled $3,545,000, an increase of 20.9% compared to $2,933,000 for the same period in 2024[63] - Total accrued and other liabilities decreased from $26,462,000 on December 31, 2024, to $19,475,000 on March 31, 2025, representing a reduction of 26.4%[52] - Net cash used in investing activities for the three months ended March 31, 2025, was $8.3 million, consistent with $9.5 million in the same period of 2024[106][107] - Net cash used in financing activities for the three months ended March 31, 2025, was $1.9 million, compared to $0.5 million in the same period of 2024[108][109] Equity and Assets - Total stockholders' equity increased to $500,395,000 as of March 31, 2025, from $485,596,000 at the end of 2024[19] - The Company capitalized $9.4 million in software development costs during the three months ended March 31, 2025, slightly up from $9.3 million in 2024[47] - The Company reported a total of $60.6 million in intangible assets, net, as of March 31, 2025, with an amortization expense of $2.1 million for the three months ended March 31, 2025[48] - Total current assets increased to $361,513,000 as of March 31, 2025, from $345,641,000 at the end of 2024[16] Taxation - The company's effective tax rate for the three months ended March 31, 2025, was 22.4%, down from 32.8% in the same period of 2024[65] - The effective tax rate decreased to 22.4% in Q1 2025 from 32.8% in Q1 2024, primarily due to permanent differences related to stock-based compensation[99] - The company forecasts an estimated effective tax rate of 27% for 2025, primarily due to state taxes and permanent differences on nondeductible compensation[66] Business Operations - Paymentus continues to focus on expanding its SaaS platform for electronic bill presentment and payment services, enhancing its market position[23] - The company serves over 2,500 biller business and financial institution clients, with approximately 46 million consumers and businesses using its platform globally as of December 2024[71] - The company’s platform allows consumers to pay bills using their preferred payment type and channel, enhancing the electronic bill payment experience[72] - The number of transactions processed increased by approximately 28.0% to 173.2 million in Q1 2025 from 135.3 million in Q1 2024[73] - No customer accounted for more than 10% of revenue for the three months ended March 31, 2025, indicating a diversified customer base[29] Future Outlook - The company plans to explore additional financing sources to lower its cost of capital, which may include equity and debt financing[101] - The Company has contractual rights to receive $63.8 million of fixed consideration related to future minimum guarantees through 2029[42] - As of March 31, 2025, there were approximately 26.4 million shares remaining available for grant under the 2021 Equity Incentive Plan[59] - The company has entered into non-cancellable agreements for software and marketing services, with no material changes to contractual obligations compared to the previous year[53] Other Information - The company incurred $9.3 million in capitalized internal-use software development costs for the three months ended March 31, 2025[106][107] - The Company reported non-cash charges of $15.8 million for the three months ended March 31, 2025, primarily due to depreciation and amortization[104] - Changes in operating assets and liabilities contributed $20.9 million to cash provided from operating activities for the three months ended March 31, 2025[104] - There have been no material changes in the company's risk factors since December 31, 2024[119]

Group 1 - Paymentus (PAY) is currently outperforming its peers in the Business Services sector, with a year-to-date gain of approximately 4.5% compared to the sector's average return of 0.5% [4] - The Zacks Rank system indicates that Paymentus has a Zacks Rank of 2 (Buy), reflecting a positive analyst sentiment and an improving earnings outlook, with a 9.2% increase in the consensus estimate for full-year earnings over the past three months [3] - Paymentus belongs to the Financial Transaction Services industry, which includes 35 companies and is currently ranked 86 in the Zacks Industry Rank, with an average gain of 3.3% year-to-date, further indicating its strong performance [5] Group 2 - Society Pass Incorporated (SOPA) is another stock in the Business Services sector that has shown strong performance, with a year-to-date return of 28.1% and a Zacks Rank of 2 (Buy) [4][5] - The consensus estimate for Society Pass's current year EPS has increased by 27.1% over the past three months, indicating positive analyst sentiment similar to that of Paymentus [5] - The Technology Services industry, where Society Pass operates, has underperformed with a year-to-date decline of -6.5%, contrasting with the performance of Paymentus and SOPA [6]

Core Viewpoint - Paymentus (PAY) reported quarterly earnings of $0.14 per share, exceeding the Zacks Consensus Estimate of $0.13 per share, and showing an increase from $0.10 per share a year ago, indicating a positive earnings surprise of 7.69% [1] Financial Performance - Paymentus achieved revenues of $275.24 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 10.91%, and up from $184.88 million year-over-year [2] - The company has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Stock Performance - Paymentus shares have increased approximately 5.8% since the beginning of the year, contrasting with the S&P 500's decline of -3.3% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.15 on revenues of $251.66 million, and for the current fiscal year, it is $0.58 on revenues of $1.06 billion [7] - The estimate revisions trend for Paymentus is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [6] Industry Context - The Financial Transaction Services industry, to which Paymentus belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]