Paymentus Holdings, Inc. (NYSE:PAY) Q2 2024 Earnings Conference Call August 8, 2024 5:00 PM ET Company Participants David Hanover - Investor Relations Dushyant Sharma - Founder and CEO Sanjay Kalra - SVP and CFO Conference Call Participants David Koning - Baird Will Nance - Goldman Sachs Darrin Peller - Wolfe Research Andrew Bauch - Wells Fargo John Davis - Raymond James Andrew Polkowitz - JPMorgan Matthew O’Neill - FT Partners Operator Good day, and welcome to the Second Quarter 2024 Paymentus Earnings Con ...

Paymentus (PAY) came out with quarterly earnings of $0.12 per share, beating the Zacks Consensus Estimate of $0.09 per share. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 33.33%. A quarter ago, it was expected that this electronic bill payment services would post earnings of $0.08 per share when it actually produced earnings of $0.10, delivering a surprise of 25%. Over the last four quarte ...

I am positive on Paymentus (NYSE:PAY). My summarized thesis is that PAY offers a solution that disrupts a large market, and with just less than 3% market share today, the growth runway is extremely long. The strong value proposition of a modern payment platform to billers and consumer demand for flexible payments should continue to drive adoption of PAY. PAY competes in a massive market that enables it to continue growing for a very long time. Based on Datos Insights (source: PAY investor presentation in Ap ...

Paymentus Holdings, Inc. (NYSE:PAY) Q1 2024 Earnings Conference Call May 6, 2024 5:00 PM ET Company Participants David Hanover - Investor Relations Dushyant Sharma - Founder and Chief Executive Officer Sanjay Kalra - Chief Financial Officer Conference Call Participants John Davis - Raymond James Dave Koning - Baird Darrin Peller - Wolfe Research Will Nance - Goldman Sachs Tien-Tsin Huang - JPMorgan Andrew Bauch - Wells Fargo Zachary Gunn - FT Partners Operator Good day, and welcome to First Quarter 2024 Pay ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited Q1 2024 financial statements show strong year-over-year growth in revenue, net income, and operating cash flow [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $514.0 million by March 31, 2024, with a slight decrease in liabilities and growth in equity Balance Sheet Highlights (in thousands) | Balance Sheet Highlights (in thousands) | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $180,138 | $179,361 | | Capitalized internal-use software, net | $61,767 | $58,787 | | Total assets | $513,975 | $504,863 | | **Liabilities & Equity** | | | | Total liabilities | $74,591 | $75,247 | | Total stockholders' equity | $439,384 | $429,616 | [Condensed Consolidated Statements of Operations and Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Q1 2024 saw revenue grow 24.6% to $184.9 million, with net income significantly increasing to $7.2 million Income Statement (in thousands, except EPS) | Income Statement (in thousands, except EPS) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenue | $184,875 | $148,328 | | Gross Profit | $52,725 | $40,078 | | Income (loss) from operations | $8,343 | $(984) | | Net Income | $7,226 | $704 | | Diluted EPS | $0.06 | $0.01 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow more than doubled to $11.0 million in Q1 2024, driven by higher net income Cash Flow Summary (in thousands) | Cash Flow Summary (in thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $10,954 | $4,763 | | Net cash used in investing activities | $(9,513) | $(8,286) | | Net cash used in financing activities | $(406) | $(1,122) | | Net increase (decrease) in cash | $957 | $(4,662) | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue disaggregation, capitalized software costs, and unrecognized stock-based compensation - Payment transaction processing revenue was **$182.8 million** for Q1 2024, up from **$146.4 million** in Q1 2023, with the United States accounting for **$181.3 million** of total revenue in Q1 2024[38](index=38&type=chunk) - The company capitalized **$9.3 million** in software development costs in Q1 2024, an increase from **$8.1 million** in Q1 2023[46](index=46&type=chunk) - As of March 31, 2024, **$38.5 million** of total unrecognized compensation cost related to unvested RSUs is expected to be recognized over a weighted-average period of **3.8 years**[63](index=63&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q1 2024 performance to transaction volume growth and pricing, with significant improvements in non-GAAP metrics Key Metrics | Key Metrics | Q1 2024 | Q1 2023 | % Growth | | :--- | :--- | :--- | :--- | | Transactions processed (in millions) | 135.3 | 108.5 | 24.7% | Non-GAAP Financials (in thousands) | Non-GAAP Financials (in thousands) | Q1 2024 | Q1 2023 | % Growth | | :--- | :--- | :--- | :--- | | Contribution Profit | $69,367 | $53,531 | 29.6% | | Adjusted Gross Profit | $57,634 | $43,690 | 31.9% | | Adjusted EBITDA | $19,813 | $8,414 | 135.5% | | Free Cash Flow | $1,562 | $(3,523) | n/m | - Revenue growth was driven by an increase in transactions from new and existing billers, along with pricing improvements related to inflation management[92](index=92&type=chunk) - The company believes there is a reasonable possibility that within the next 12 months, sufficient positive evidence may allow for the release of a significant portion of the valuation allowance on its deferred tax assets[109](index=109&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk exposures, including interest rate, foreign currency, and inflation risks, were reported - There have been no material changes in the company's market risk exposures since the end of the last fiscal year[114](index=114&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were deemed ineffective due to material weaknesses in internal control over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were not effective as of March 31, 2024, due to material weaknesses in internal control[115](index=115&type=chunk) - Material weaknesses identified include a lack of sufficient trained accounting professionals and ineffective IT general controls related to program change management and user access[116](index=116&type=chunk) - The company has implemented several remediation measures, including hiring experienced personnel and updating system controls, but testing of operating effectiveness is still ongoing[116](index=116&type=chunk)[117](index=117&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings or aware of any pending actions - As of the filing date, the company is not involved in any material legal proceedings[121](index=121&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors were reported for the current quarter - No material changes to risk factors were reported for the quarter[122](index=122&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the reporting period - None[123](index=123&type=chunk) [Item 5. Other Information](index=35&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the quarter - No directors or officers adopted or terminated a Rule 10b5-1 trading plan during the quarter[126](index=126&type=chunk)

Paymentus Reports First Quarter 2024 Financial Results Revenue increased 24.6% year-over-year Adjusted EBITDA rose 135.5%, reflecting a 28.6% adjusted EBITDA margin CHARLOTTE, North Carolina, May 6, 2024 -- 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, 2024. "Paymentus began this year with another outstanding quarter, driven mainly by higher transacti ...

Financial Data and Key Metrics Changes - In Q4 2023, revenue was $164.8 million, up 24.7% year-over-year, and for the full year, revenue increased 23.6% to $614.5 million, exceeding the long-term target of 20% growth [46][52] - Adjusted EBITDA for Q4 was $19.9 million, up 95.4% year-over-year, and for the full year, it increased 103.1% to $58.1 million, significantly surpassing the long-term target of 20% to 30% [46][52] - Contribution profit for Q4 was $66.3 million, up 22.7% year-over-year, and for the full year, it grew 19.7% to $240.9 million [46][52] Business Line Data and Key Metrics Changes - The number of transactions processed in Q4 grew to 124.8 million, up 28.4% year-over-year, indicating strong business momentum [59] - Contribution profit per transaction for Q4 was $0.53, slightly down from $0.56 in the prior year, primarily due to biller mix [60] Market Data and Key Metrics Changes - The company signed several notable clients in Q4, including large insurance companies, utilities, and government agencies, demonstrating a diverse client base [53][54] - The company ended Q4 with a strong backlog and cash position of $183.2 million, up from $166.9 million at the end of Q3 2023 [64] Company Strategy and Development Direction - The company aims to continue diversifying into new verticals while maintaining its existing go-to-market strategy, focusing on onboarding its strong backlog to drive future growth [161] - The company plans to invest in sales and marketing to enhance its pipeline for future growth, indicating a focus on organic growth [129] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage operating expenses and maintain profitability despite external factors affecting contribution profit [31][68] - The company expects revenue for 2024 to be in the range of $720 million to $744 million, reflecting growth of 19.1% to 21.1% [66] Other Important Information - The company has no debt and generated free cash flow of $16 million during the quarter [94] - The company exceeded the Rule of 40 for the fourth quarter, coming in at approximately 53, indicating strong performance [62] Q&A Session Summary Question: What contributed to the revenue growth from new clients? - Management indicated that both new client growth and existing client growth contributed to overall growth, but specific ratios were not disclosed [71] Question: What is the normalized tax rate for earnings? - Management suggested using a tax rate closer to the statutory rate in the U.S., approximately 25% for long-term earnings planning [106] Question: How does the company view competition and pricing? - Management noted that they worked closely with clients during inflationary periods to maintain strong partnerships and pricing strategies [141]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40429 Paymentus Holdings, Inc. (Exact Name of Registrant as Specified in its Charter) (State or other jurisdiction of incorporation or organiza ...

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) [Fourth Quarter 2023 Financial and Business Highlights](index=1&type=section&id=Fourth%20Quarter%202023%20Financial%20and%20Business%20Highlights) In the fourth quarter of 2023, Paymentus demonstrated strong year-over-year growth, with revenue increasing by 24.7% to $164.8 million, driven by a 28.4% rise in transaction volume. Adjusted EBITDA saw a significant surge of 95.4% to $19.9 million, representing a 30.0% margin of contribution profit. Net income was $9.4 million, a substantial improvement from the prior year Q4 2023 Key Financial Metrics (YoY) | Metric | Q4 2023 | Q4 2022 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $164.8M | $132.2M | +24.7% | | Gross Profit | $49.5M | $41.1M | +20.3% | | Contribution Profit | $66.3M | $54.1M | +22.7% | | Adjusted EBITDA | $19.9M | $10.2M | +95.4% | | Net Income | $9.4M | $1.0M | +875% | | GAAP EPS (Diluted) | $0.07 | $0.01 | +600% | | Non-GAAP EPS (Diluted) | $0.11 | $0.04 | +175% | | Transactions Processed | 124.8M | 97.2M | +28.4% | [Full Year 2023 Financial and Business Highlights](index=1&type=section&id=Full%20Year%202023%20Financial%20and%20Business%20Highlights) For the full year 2023, Paymentus reported a 23.6% increase in revenue to $614.5 million, fueled by a 24.9% growth in transactions. The company achieved a significant turnaround in profitability, with net income reaching $22.3 million compared to a net loss in 2022. Adjusted EBITDA more than doubled, growing 103.1% to $58.1 million Full Year 2023 Key Financial Metrics (YoY) | Metric | Full Year 2023 | Full Year 2022 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $614.5M | $497.0M | +23.6% | | Gross Profit | $182.3M | $149.7M | +21.8% | | Contribution Profit | $240.9M | $201.3M | +19.7% | | Adjusted EBITDA | $58.1M | $28.6M | +103.1% | | Net Income (Loss) | $22.3M | ($0.5M) | N/A | | GAAP EPS (Diluted) | $0.18 | $0.00 | N/A | | Non-GAAP EPS (Diluted) | $0.32 | $0.12 | +166.7% | | Transactions Processed | 458.2M | 366.9M | +24.9% | [Financial Guidance](index=2&type=section&id=Financial%20Guidance) [Financial Guidance for 2024](index=2&type=section&id=Financial%20Guidance%20for%202024) Paymentus has issued its financial outlook for the first quarter and the full fiscal year of 2024. The company anticipates continued growth in revenue, contribution profit, and adjusted EBITDA. However, it does not provide a reconciliation for its forward-looking non-GAAP measures due to the uncertainty of certain financial items Financial Guidance for 2024 | Metric | First Quarter 2024 | Fiscal-Year 2024 | | :--- | :--- | :--- | | Revenue | $170M - $176M | $720M - $744M | | Contribution Profit | $64M - $66M | $274M - $288M | | Adjusted EBITDA | $15M - $17M | $65M - $75M | - The company does not reconcile its forward-looking guidance for non-GAAP measures like Adjusted EBITDA and Contribution Profit, citing that certain financial information is not available and cannot be reasonably estimated[7](index=7&type=chunk)[14](index=14&type=chunk) [Use and Definitions of Non-GAAP Financial Measures](index=3&type=section&id=Use%20and%20Definitions%20of%20Non-GAAP%20Financial%20Measures) This section details the non-GAAP financial measures used by Paymentus to supplement its GAAP-based financial reporting. The company believes these measures, including adjusted gross profit, contribution profit, adjusted EBITDA, and non-GAAP net income, provide a fuller understanding of its consolidated financial performance and help in projecting future results. It provides specific definitions for each metric, clarifying what adjustments are made to the corresponding GAAP measures - Paymentus uses non-GAAP measures to help management and the board understand financial performance, project future performance, and evaluate business strategies[15](index=15&type=chunk)[23](index=23&type=chunk) - **Adjusted gross profit**: Gross profit adjusted for stock-based compensation and amortization of certain intangible assets[16](index=16&type=chunk) - **Contribution profit**: Gross profit plus other cost of revenue (which excludes interchange and assessment fees). This metric is used to measure funds available for operations[17](index=17&type=chunk) - **Adjusted EBITDA**: Net income adjusted for interest, taxes, D&A, stock-based compensation, and certain nonrecurring expenses[18](index=18&type=chunk) - **Non-GAAP net income & EPS**: Net income and EPS excluding items like stock-based compensation (starting Q2 2023) and amortization of acquisition-related intangibles[21](index=21&type=chunk) - **Free cash flow**: Net cash from operating activities less capital expenditures and capitalized internal-use software development costs[22](index=22&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Operations and Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) For the year ended December 31, 2023, Paymentus reported revenues of $614.5 million, a 23.6% increase from 2022. The company achieved a significant turnaround in profitability, recording a net income of $22.3 million, compared to a net loss of $0.5 million in the previous year. This improvement was driven by higher gross profit and effective management of operating expenses Full Year Statement of Operations Highlights (in thousands) | Line Item | 2023 | 2022 | | :--- | :--- | :--- | | Revenue | $614,490 | $497,001 | | Gross Profit | $182,342 | $149,678 | | Income (Loss) from Operations | $18,093 | ($2,976) | | Net Income (Loss) | $22,322 | ($513) | | Diluted EPS | $0.18 | $0.00 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of December 31, 2023, Paymentus's balance sheet showed total assets of $504.9 million, up from $461.5 million at the end of 2022. The increase was primarily driven by higher cash and cash equivalents and capitalized software costs. Total liabilities rose to $75.2 million, while total stockholders' equity increased to $429.6 million, reflecting the year's net income Balance Sheet Highlights (in thousands) | Line Item | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $179,361 | $147,334 | | Total Current Assets | $270,348 | $228,961 | | Total Assets | $504,863 | $461,539 | | Total Current Liabilities | $62,788 | $51,496 | | Total Liabilities | $75,247 | $64,360 | | Total Stockholders' Equity | $429,616 | $397,179 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the full year 2023, Paymentus generated $68.8 million in net cash from operating activities, a significant increase from $19.9 million in 2022. Cash used in investing activities remained stable at approximately $34.3 million. The company's cash and cash equivalents, including restricted cash, increased by $33.5 million during the year, ending at $183.2 million Statement of Cash Flows Highlights (in thousands) | Line Item | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $68,828 | $19,867 | | Net cash used in investing activities | ($34,299) | ($34,560) | | Net cash (used in) provided by financing activities | ($1,195) | ($37,283) | | Net increase in cash, cash equivalents and Restricted cash | $33,510 | ($52,144) | | Cash, cash equivalents and Restricted cash end of period | $183,195 | $149,685 | [GAAP to Non-GAAP Reconciliations](index=9&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliations) [Adjusted Gross Profit Reconciliation](index=9&type=section&id=Adjusted%20Gross%20Profit) This table reconciles GAAP Gross Profit to Non-GAAP Adjusted Gross Profit. For the full year 2023, Adjusted Gross Profit was $199.2 million, compared to $161.8 million in 2022. The adjustments primarily consist of adding back amortization of capitalized software and acquisition-related intangibles Adjusted Gross Profit Reconciliation (in thousands) | Line Item | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | Gross profit | $182,342 | $149,678 | | Amortization of capitalized software development costs | $13,341 | $8,763 | | Amortization of acquisition-related intangibles | $3,314 | $3,314 | | **Adjusted gross profit** | **$199,153** | **$161,755** | [Contribution Profit Reconciliation](index=9&type=section&id=Contribution%20Profit) This table reconciles GAAP Gross Profit to Contribution Profit by adding back 'other cost of revenue'. For the full year 2023, Contribution Profit increased to $240.9 million from $201.3 million in 2022, representing a 19.7% year-over-year growth Contribution Profit Reconciliation (in thousands) | Line Item | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | Gross profit | $182,342 | $149,678 | | Plus: other cost of revenue | $58,606 | $51,622 | | **Contribution profit** | **$240,948** | **$201,300** | [Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation](index=9&type=section&id=Adjusted%20EBITDA%20and%20Adjusted%20EBITDA%20Margin) This section reconciles GAAP Net Income to Adjusted EBITDA. For the full year 2023, Adjusted EBITDA more than doubled to $58.1 million from $28.6 million in 2022. The Adjusted EBITDA margin, calculated as a percentage of contribution profit, improved significantly from 14.2% in 2022 to 24.1% in 2023 Adjusted EBITDA Reconciliation (in thousands) | Line Item | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | Net income (loss) — GAAP | $22,322 | ($513) | | Adjustments (Interest, Taxes, D&A, Stock Comp, etc.) | $35,761 | $29,105 | | **Adjusted EBITDA** | **$58,083** | **$28,592** | | **Adjusted EBITDA margin** | **24.1%** | **14.2%** | [Non-GAAP Net Income & Non-GAAP EPS Reconciliation](index=10&type=section&id=Non-GAAP%20Net%20Income%20%26%20Non-GAAP%20EPS%20Reconciliation) This section reconciles GAAP Net Income to Non-GAAP Net Income, using a revised methodology that excludes stock-based compensation and amortization of acquisition-related intangibles. For the full year 2023, Non-GAAP Net Income was $40.1 million, resulting in a Non-GAAP Diluted EPS of $0.32, up from $0.12 in 2022 - The company revised its methodology for calculating Non-GAAP Net Income and EPS to also exclude stock-based compensation, effective from Q2 2023. Prior periods have been recast for comparability[21](index=21&type=chunk)[40](index=40&type=chunk) Non-GAAP Net Income & EPS Reconciliation (Revised Methodology) | Line Item | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | Net income (loss) — GAAP | $22,322K | ($513K) | | Stock-based compensation | $9,390K | $6,736K | | Amortization of acquisition-related intangibles | $8,380K | $8,028K | | **Non-GAAP net income** | **$40,092K** | **$14,816K** | | **Non-GAAP earnings per share — diluted** | **$0.32** | **$0.12** | [Free Cash Flow Reconciliation](index=11&type=section&id=Free%20Cash%20Flow) This table reconciles Net Cash Provided by Operating Activities to Free Cash Flow. In 2023, Paymentus generated $34.5 million in free cash flow, a significant positive shift from a cash usage of $11.4 million in 2022. The improvement was driven by higher cash from operations Free Cash Flow Reconciliation (in thousands) | Line Item | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $68,828 | $19,867 | | Purchases of property and equipment and software | ($600) | ($1,257) | | Capitalized software development costs | ($33,699) | ($29,763) | | **Free cash flow** | **$34,529** | **($11,433)** |

Paymentus Holdings, Inc. (NYSE:PAY) Q3 2023 Earnings Conference Call November 6, 2023 5:00 PM ET Company Participants David Hanover - Investor Relations Dushyant Sharma - Founder and Chief Executive Officer Sanjay Kalra - Chief Financial Officer Conference Call Participants John Davis - Raymond James Dave Koning - Baird Will Nance - Goldman Sachs Rebecca Lu - Citigroup Matt O’Neill - FT Partners Operator Good day and welcome to Paymentus’ Third Quarter 2023 Earnings Call. This call is being recorded. [Opera ...