Paymentus (US:PAY)2025-05-07 11:04Financial 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]