Paymentus (US:PAY)2025-11-03 23:13Financial Performance - Revenue for Q3 2025 reached $310,737,000, a 34% increase from $231,571,000 in Q3 2024[18] - Gross profit for Q3 2025 was $74,849,000, up 23% from $60,665,000 in Q3 2024[18] - Net income for Q3 2025 was $17,744,000, compared to $14,430,000 in Q3 2024, representing a 23% increase[18] - Net income for the nine months ended September 30, 2025, increased to $46,264,000 from $31,020,000 in 2024, representing a growth of 49%[22] - Total revenue for the nine months ended September 30, 2025, reached $866,049,000, up from $613,868,000 in 2024, reflecting a growth of 41%[44] - Payment transaction processing revenue for the nine months ended September 30, 2025, was $860,163,000, compared to $606,029,000 in 2024, an increase of 42%[44] - Revenue from the United States for the nine months ended September 30, 2025, was $851,789,000, up from $602,572,000 in 2024, indicating a growth of 41%[44] - Revenue for the three months ended September 30, 2025, increased by 34.2% to $310,737,000 compared to $231,571,000 in the same period of 2024[103] - Revenue for the nine months ended September 30, 2025, increased significantly due to a rise in the number of transactions processed, driven by new billers and increased transactions from existing billers[115] Expenses and Costs - Operating expenses for Q3 2025 totaled $54,988,000, compared to $48,577,000 in Q3 2024, reflecting a 13% increase[18] - Research and development expenses for Q3 2025 were $15,219,000, up from $13,187,000 in Q3 2024, a 15% increase[18] - General and administrative expenses increased by 59.9% to $14,291,000 for the three months ended September 30, 2025, compared to $8,939,000 in 2024[111] - Sales and marketing expenses increased due to higher reseller commissions and marketing costs, indicating a strategic focus on expanding market presence[118] - General and administrative expenses rose due to higher employee-related costs and professional fees, reflecting the company's growth and operational demands[119] Cash Flow and Assets - Cash and cash equivalents increased to $287,908,000 as of September 30, 2025, from $205,900,000 at the end of 2024[17] - Net cash provided by operating activities surged to $116,996,000 in 2025, compared to $35,721,000 in 2024, marking a significant increase of 227%[22] - Cash and cash equivalents and restricted cash at the end of the period increased to $291,474,000 in 2025 from $190,785,000 in 2024, a rise of 53%[22] - As of September 30, 2025, the company had $287.9 million in unrestricted cash and cash equivalents, sufficient to support operations for at least the next 12 months[123] - Net cash used in investing activities for the nine months ended September 30, 2025, was $27.8 million, primarily for capitalized internal-use software development costs[129] Equity and Liabilities - Total stockholders' equity increased to $537,402,000 as of September 30, 2025, from $485,596,000 at the end of 2024[17] - Current liabilities rose to $95,675,000 as of September 30, 2025, compared to $81,550,000 at the end of 2024, a 17% increase[17] - Total contract liabilities increased to $6.441 million as of September 30, 2025, up from $5.720 million as of December 31, 2024[48] Taxation - The effective tax rate for the three months ended September 30, 2025, was 21.5%, compared to 0.03% in the same period of 2024[73] - The effective tax rate for the nine months ended September 30, 2025, increased to 21.3% from 17.6% in the prior year, aligning with the U.S. federal statutory rate of 21%[121] - The company forecasts an estimated effective tax rate of 28% for 2025, primarily due to state taxes and permanent differences on nondeductible compensation[75] Stock-Based Compensation - The company incurred stock-based compensation of $12,929,000 for the nine months ended September 30, 2025, compared to $7,990,000 in 2024, an increase of 62%[22] - The total stock-based compensation expense for the nine months ended September 30, 2025, was $14,557,000, an increase from $9,424,000 in the same period of 2024[72] - There was $67.2 million of total unrecognized compensation cost related to unvested RSUs expected to be recognized over a remaining weighted-average period of 3.6 years[72] Operational Metrics - The company processed 182.3 million transactions in the three months ended September 30, 2025, representing a 17.4% growth compared to 155.3 million transactions in the same period of 2024[84] - The increase in revenue was primarily driven by an increase in the number of transactions processed, attributed to new billers and increased transactions from existing billers[107] - Gross margin compression was noted due to a shift towards high-volume enterprise billers with lower margins, although this was partially mitigated by economies of scale[116] Corporate Governance - Dushyant Sharma serves as the Principal Executive Officer, while Sanjay Kalra is the Principal Financial and Accounting Officer[32.1][32.2] - The report was signed on November 3, 2025, by both the CEO and CFO[152] - The company has a 2021 Equity Incentive Plan for its executives, including Dushyant Sharma[10.1+] Reporting Changes - The company changed its reporting segment structure to a single reporting segment effective January 1, 2025, to provide more focused data for decision-making[32] - The filing includes various Inline XBRL Taxonomy Extension documents for detailed financial reporting[101.SCH][101.CAL][101.DEF][101.LAB][101.PRE]