Flywire(US:FLYW)2024-11-07 22:04Financial Performance - Total payment volume increased by approximately 24% year-over-year, from $8.9 billion in Q3 2023 to $11.0 billion in Q3 2024[161] - Revenue for the nine months ended September 30, 2024, was $374.6 million, compared to $302.5 million for the same period in 2023, representing a year-over-year increase of approximately 24%[165] - Revenue for Q3 2024 was $156.8 million, a 27.2% increase from $123.3 million in Q3 2023, representing a change of $33.5 million[209] - Revenue for the three months ended September 30, 2024, was $156.8 million, a 27% increase from $123.3 million in the same period of 2023[250] - Revenue less ancillary services for the nine months ended September 30, 2024, was $361.5 million, representing a 27% growth compared to $285.3 million in 2023[250] - Adjusted EBITDA for the nine months ended September 30, 2024, was $61.2 million, up from $34.3 million in the same period of 2023, indicating a significant improvement in operational performance[234] - Adjusted EBITDA for the nine months ended September 30, 2024, was not explicitly stated but is derived from the adjustments made to GAAP figures[246] Client and Market Expansion - As of September 30, 2024, the company serves over 4,000 clients globally, including more than 2,960 educational institutions and over 100 healthcare systems[164] - The company completed the acquisition of Invoiced for approximately $52.3 million to enhance its B2B vertical and global expansion[171] - The acquisition of StudyLink for approximately $35.5 million aims to accelerate growth in the Australian higher education market[172] - The company expanded its global payments network to over 240 countries and territories, supporting more than 140 currencies[162] Income and Expenses - The company incurred a net income of $18.8 million for the nine months ended September 30, 2024, compared to a net loss of $9.9 million for the same period in 2023[165] - Net income surged to $38.9 million in Q3 2024, up 267.0% from $10.6 million in Q3 2023[209] - Income from operations for Q3 2024 was $20.3 million, a significant increase of 70.6% from $11.9 million in Q3 2023[209] - Payment processing services costs increased to $54.6 million in Q3 2024, up 27.3% from $42.9 million in Q3 2023[209] - Technology and development expenses rose to $16.7 million, a 14.4% increase from $14.6 million in the same quarter last year[209] - Selling and marketing expenses increased by 26.2% to $34.2 million compared to $27.1 million in Q3 2023[209] - General and administrative expenses were $31.1 million, reflecting a 15.6% increase from $26.9 million in Q3 2023[209] Cash Flow and Financing - Cash and cash equivalents as of September 30, 2024, totaled $565.0 million, with an additional $116.1 million in short-term available-for-sale debt securities[254] - The company completed a follow-on public offering resulting in net proceeds of $260.1 million in August and September 2023[257] - Net cash provided by operating activities increased to $132.9 million for the nine months ended September 30, 2024, compared to $20.9 million for the same period in 2023, driven by improved operating performance[263] - The company expects existing cash to support working capital needs for at least the next 12 months, with potential future capital requirements depending on various growth factors[258] - The company may seek additional equity or debt financing in the future, depending on its capital needs and market conditions[258] Tax and Profitability - The effective tax rate was (12.3)% for the nine months ended September 30, 2024, compared to (28.6)% for the same period in 2023, reflecting a non-recurring tax benefit[232] - The gross margin for the nine months ended September 30, 2024, was 62.1%, compared to 61.3% for the same period in 2023, indicating a slight improvement in profitability[234] - Adjusted gross profit for the three months ended September 30, 2024, was $101.9 million, with an adjusted gross margin of 67.3%[248] - The company reported a gross margin of 64.0% for the three months ended September 30, 2024, compared to 63.6% in the same period of 2023[248] Foreign Exchange and Interest Rate Exposure - The company has been leveraging in-house currency hedging algorithms since 2014 to mitigate volatility related to fluctuations in foreign exchange rates[278] - A potential change in foreign exchange rates of 10% from remeasurement would have impacted income (loss) before income taxes by approximately $28.0 million and $19.9 million at September 30, 2024 and December 31, 2023, respectively[282] - The company is exposed to interest rate risk related to cash and cash equivalents and available-for-sale debt securities, primarily consisting of AAA-rated money market funds[274] - An immediate 10% increase or decrease in interest rates would not have a material effect on the company's financial position, results of operations, or cash flows[274] Employee Growth - The company had a 17% increase in full-time employees, growing from 1,123 to 1,314 from September 30, 2023, to September 30, 2024[168]