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]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $275.2 million, an increase of 48.9% year over year, driven by increased clients and transactions [8][17] - Contribution profit was $87.6 million, up 26.3% year over year, with an adjusted EBITDA of $30 million, reflecting a 51.3% increase year over year [8][21] - Adjusted EBITDA margin reached a record 34.2%, with over 50% of year-over-year growth in contribution profit dropping to the bottom line [9][22] - The company ended Q1 with total cash and cash equivalents of $249.6 million, up from $209.4 million at the end of 2024, and generated a record free cash flow of $41.1 million [23][24] Business Line Data and Key Metrics Changes - The company signed clients across various industry verticals including utilities, government agencies, telecommunications, banking, insurance, and education, indicating a diverse client base [11][12] - The onboarding of large enterprise clients has contributed significantly to transaction growth, with a higher level of transactions processed reaching $173.2 million, up 28% year over year [17][18] Market Data and Key Metrics Changes - The company continues to serve essential sectors of the domestic economy, focusing on non-discretionary bills such as utilities and insurance, which are fundamental for households [5][6] - The average revenue per transaction increased to $1.59 from $1.37 in the prior year, attributed to the mix of large enterprise billers [17][18] Company Strategy and Development Direction - The company aims to maintain a compound annual growth rate (CAGR) of 20% for revenue and 20% to 30% for adjusted EBITDA, with a focus on leveraging operating efficiency [9][28] - The management emphasizes the importance of their technology platform and ecosystem, which reduces costs for clients while improving customer experience [7][32] - The company is exploring potential M&A opportunities but remains focused on organic growth, with no immediate need for acquisitions [25][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance despite macroeconomic challenges, citing strong sales momentum and a solid pipeline for future growth [5][31] - The management noted that they are not seeing any changes in sales cycles or implementation speeds, indicating resilience in their business model [44][45] - The company believes it is well-positioned for further growth, with a strong backlog and encouraging trends in consumer and business payment behaviors [29][31] Other Important Information - The company has a strong cash position, allowing for financial flexibility and the potential for strategic investments [25][51] - The management highlighted the importance of their diverse partner ecosystem, which complements their direct go-to-market strategy [12][102] Q&A Session Summary Question: Transaction growth trends and contributions from new vs. existing clients - Management indicated that both new customer implementations and same-store sales are growing, with new implementations currently contributing more significantly [37][38] Question: Dynamics behind gross revenue guidance - Management explained that the guidance reflects caution regarding large enterprise customers, as their growth patterns are still being assessed [39][41] Question: Changes in sales cycles or implementation pace due to macro uncertainty - Management reported no significant changes in sales cycles or implementation speeds, maintaining a strong pipeline [44][45] Question: M&A opportunities and criteria - Management stated that M&A is a secondary objective, with no immediate needs or specific criteria set for potential acquisitions [49][50] Question: Free cash flow conversion and expectations - Management emphasized that while free cash flow can fluctuate, they expect to generate decent cash annually after taxes [56][58] Question: Trends in demand across various verticals - Management noted strong performance across multiple verticals, with a proven platform that meets the needs of diverse clients [90][91] Question: Long-term operating margin expectations - Management refrained from providing specific long-term margin targets but indicated confidence in achieving good operating leverage [93][94]

Paymentus (PAY) Q1 2025 Earnings Call May 05, 2025 05:00 PM ET Speaker0 Good day, and welcome to the First Quarter twenty twenty five Paymentus Holdings Earnings Conference Call. This call is being recorded. All participants are currently in listen mode only. There will be an opportunity to ask questions following management's prepared remarks. At this time, I will now turn the call over to Scott Eckstein, Investor Relations. Speaker1 Thank you, operator. Good afternoon. Welcome, and thank you for joining t ...

In addition to the GAAP financial measures presented in our consolidated financial statements, this presentation includes key performance indicators and non-GAAP financial measures that our management uses to help us evaluate our business, identify trends affecting our business, formulate business plans and make strategic decisions. There are limitations to contribution profit and margin, adjusted gross profit, non-GAAP operating expenses, non-GAAP net income, non-GAAP earnings per share, EBITDA, adjusted E ...

Paymentus Reports First Quarter 2025 Financial Results Revenue increased 48.9% year-over-year Adjusted EBITDA rose 51.3%, reflecting a 34.2% adjusted EBITDA margin CHARLOTTE, North Carolina, May 5, 2025 -- Paymentus Holdings, Inc. ("Paymentus") (NYSE: PAY), a leading provider of cloud-based bill payment technology and solutions, today announced its unaudited financial results for the quarter ended March 31, 2025. "Paymentus started 2025 on strong footing, with year-over-year growth in revenue, contribution ...

Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum characteristics, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] - Each stock is rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score assesses a company's future prospects by analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score evaluates stocks based on price trends and earnings outlook, utilizing one-week price changes and monthly earnings estimate changes [5] VGM Score - The VGM Score combines the three Style Scores to identify stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] Investment Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks but high Style Scores may still present risks if earnings forecasts are declining [10] Company Spotlight: Paymentus (PAY) - Paymentus is rated 2 (Buy) on the Zacks Rank with a VGM Score of B, indicating strong potential for momentum investors [11] - The company has seen a 5.9% increase in shares over the past four weeks, with a consensus earnings estimate of $0.58 per share for fiscal 2025 [12] - Paymentus has an average earnings surprise of 33.3%, making it a strong candidate for investors [12]

Core Insights - PayPoint Plc anticipates delivering a financial performance in line with expectations, with underlying EBITDA of approximately £90 million and year-end net debt below £100 million [3] - The company has been actively engaging in a share buyback program, purchasing a total of 2,227,615 shares for £15.9 million as of April 17, 2025 [3] - Preliminary results for the financial year ending March 31, 2025, will be announced on June 12, 2025, along with updates on group strategy and financial objectives for the three-year period to FY28 [4] Business Overview - PayPoint Group serves a diverse range of organizations, including SMEs, convenience retailers, local authorities, government, multinational service providers, and e-commerce brands [6] - The company operates across four core business divisions, creating long-term value for stakeholders [6] - In the Shopping division, PayPoint enhances retailer propositions and customer experiences through various payment technologies and partnerships across over 60,000 locations [7] - The E-commerce division offers tech-based delivery solutions through Collect+, facilitating parcel pick-up and drop-off at local stores [7] - In Payments and Banking, PayPoint provides a digital payments platform, MultiPay, which supports various payment methods including Open Banking and card payments [7] - The Love2shop division offers gifting and prepaid savings solutions, being the UK's leading multi-retailer gifting provider [7]