Flywire Reports Fourth Quarter and Fiscal-Year 2024 Financial Results

Core Insights - Flywire Corporation reported a 17.0% year-over-year increase in revenue for the fourth quarter of 2024, reaching $117.6 million compared to$ 100.5 million in the same quarter of 2023 [6][2] - The company experienced a net loss of $15.9 million in Q4 2024, contrasting with a net income of$ 1.3 million in Q4 2023 [6][21] - Flywire's total payment volume surged by 27.6% year-over-year to $6.9 billion in Q4 2024, up from$ 5.4 billion in Q4 2023 [6][21] Financial Performance - Revenue less ancillary services increased by 17.4% to $112.8 million in Q4 2024, compared to$ 96.1 million in Q4 2023 [6][21] - Gross profit rose to $74.3 million, resulting in a gross margin of 63.2%, compared to a gross profit of$ 61.8 million and a gross margin of 61.5% in Q4 2023 [6][21] - Adjusted EBITDA increased to $16.7 million in Q4 2024, with adjusted EBITDA margins growing by 680 basis points year-over-year to 14.8% [6][21] Client Growth and Market Expansion - The number of clients grew by 16% year-over-year, with over 180 new clients added in Q4 2024 [6][21] - The company signed more than 800 new clients in fiscal year 2024, surpassing the 700 new clients signed in fiscal year 2023 [9] - Flywire's travel vertical became the second largest in terms of revenue less ancillary services, with significant growth in EMEA and APAC regions [9] Strategic Initiatives - The company announced a restructuring that will impact approximately 10% of its workforce to enhance operational efficiency [3] - Flywire is undertaking a comprehensive business portfolio review to focus on its core strengths, including complex payment processing and its global payment network [3] - The acquisition of Sertifi is expected to accelerate growth in the travel vertical, enhancing Flywire's product offerings across over 20,000 hotel locations worldwide [3][7] Future Outlook - For fiscal year 2025, Flywire projects revenue less ancillary services growth of 10-14% on an FX-neutral basis, with an anticipated increase in adjusted EBITDA margin by 200-400 basis points [7][8] - The company expects approximately 3 percentage points of headwind from foreign exchange throughout the year [7] - The Sertifi acquisition is projected to contribute incremental revenue of$ 3.0-4.0 million in Q1 2025 and $30.0-40.0 million for the fiscal year 2025 [7][8]