Corpay (CPAY) Q1 2025 Earnings Call May 06, 2025 05:00 PM ET Company Participants Jim Eglseder - Investor RelationsRon Clarke - Chairman and Chief Executive OfficerAlissa Vickery - Chief Accounting Officer & Interim CFOShray Gurtata - Assistant Vice PresidentSanjay Sakhrani - Managing DirectorTrevor Williams - Managing DirectorRayna Kumar - Managing Director - Fintech Equity Research Conference Call Participants Tien-tsin Huang - Senior AnalystAndrew Jeffrey - Research AnalystAndrew Schmidt - Equity Researc ...

Financial Data and Key Metrics Changes - Revenue less ancillary services was $128.7 million in Q1 2025, representing a 16.8% year-over-year growth rate or 18.6% on an FX neutral basis [37] - Adjusted gross profit increased to $82.5 million during the quarter, up 14.6% year-over-year, with an adjusted gross margin of 64% [41] - GAAP net loss was $4.2 million, representing a year-over-year improvement of approximately $2 million [43] Business Line Data and Key Metrics Changes - Transaction revenue saw a 14% year-over-year increase, driven by a 28% increase in transaction-related payment volume [38] - Platform and other revenues increased by 35% year-over-year, primarily driven by platform fees and improvements in the healthcare business [40] - The travel vertical is experiencing strong momentum, with notable new clients and significant growth opportunities following the Certify acquisition [31][33] Market Data and Key Metrics Changes - The UK education segment is now the largest market for the company, with strong growth driven by new product offerings [68] - Australia and Canada are experiencing market uncertainty post-elections, but the company has seen resilience in Australia [29] - The international education market is expanding beyond traditional markets, with significant growth in Germany, France, Japan, and Singapore [20] Company Strategy and Development Direction - The company is focused on driving innovation, delivering exceptional value, and executing strategic initiatives despite macroeconomic challenges [4][5] - A digital transformation initiative is underway to enhance data analytics and system capabilities, aiming for operational efficiency and improved client insights [13][14] - The company is streamlining its structure and optimizing investments across products and geographies to drive greater efficiency [10][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging macro environment but remains confident in the company's performance and future growth potential [4][5] - The company expects U.S. education revenue growth to be in the low single digits, with potential impacts from geopolitical tensions affecting international student demand [46][49] - The outlook for the healthcare business is positive, with expectations of strong growth driven by unique integrated solutions [35][36] Other Important Information - The company repurchased 3.6 million shares for approximately $49 million, with $57 million remaining in the current buyback program [43] - The company is maintaining its full-year 2025 revenue guidance for FX neutral revenue growth in the range of 10% to 14% excluding Certify [49] Q&A Session Summary Question: FX guidance and growth expectations for the second half - Management explained the expected slowdown in Q2 due to seasonal effects and macroeconomic factors, with a reacceleration anticipated in the second half driven by client ramp-ups and easier comparisons [55][57][59] Question: Impact of international student demand on sales cycles - Management noted that despite macroeconomic pressures, demand for international education remains strong, and clients are looking to improve their technology solutions [60][62] Question: Growth contribution from the UK market - The UK is now the largest market for the company, with strong growth driven by new product offerings and successful client acquisitions [68][70] Question: Sources of upside in revenue growth - Travel and Australia were highlighted as key drivers of growth, with strong performance in both sectors despite macroeconomic uncertainties [73][75] Question: Competitive positioning in the education sector - Management emphasized that the company competes on product performance and results, with a strong reputation in the market and continued client acquisition [92][93]

1Q 2025 Earnings Supplement May 6, 2025 Disclosures This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this presentation, including statements regarding the outcome of the operational and portfolio reviews, the costs, cash outlays, benefits, timing and financial impacts of the actions that may b ...

First Quarter Revenue Increased 17.0% Year-over-Year First Quarter Revenue Less Ancillary Services Increased 16.8% Year-over-Year Previous Fiscal Year 2025 guidance reaffirmed BOSTON, May 06, 2025 (GLOBE NEWSWIRE) -- Flywire Corporation (Nasdaq: FLYW) (“Flywire” or the “Company”), a global payments enablement and software company, today reported financial results for its first quarter ended March 31, 2025. "We are pleased with our 2025 first quarter results, as we signed more than 200 new clients, led by ou ...

Financial Data and Key Metrics Changes - The company reported a 9% increase in net revenue, reaching $224.6 million, with adjusted gross profit growing by 14% to $87.3 million and adjusted EBITDA increasing by 11% to $51.3 million [4][6] - Adjusted EPS rose by $0.19 year over year, reaching $0.22 for the quarter [21][22] - Annual transaction volume increased by $5 billion to over $135 billion, and account balances under administration improved to $1.3 billion [5][6] Business Segment Data and Key Metrics Changes - The SMB segment generated Q1 revenue of $151.7 million, a 5.3% increase year over year, with adjusted gross profit of $33.1 million, up 3.9% [12][13] - B2B revenue grew by 12.1% to $23.9 million, with adjusted gross profit increasing by 17.8% to $7.3 million [15][17] - The Enterprise segment saw revenue of $50.1 million, a 22.2% increase, with adjusted gross profit also rising by 22.2% to $46.9 million [18] Market Data and Key Metrics Changes - The company noted a 0.3% decline in U.S. GDP during Q1, with consumer spending growth slowing to 1.8% from 4% [25][26] - The company reported that its core acquiring channels produced 10% organic revenue growth, while countercyclical segments grew by 12% to 22% [27][28] Company Strategy and Development Direction - The company aims to gain market share in the acquiring segment while strengthening countercyclical assets like automated payables and CFT Pay [26][27] - The focus is on investing efficiently in new verticals with large total addressable markets (TAMs) that are still early in the adoption of integrated payment and banking solutions [26][28] - The company is positioned to benefit from the fallout of less stable banking as a service providers [64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 10% to 14% top-line revenue growth for 2025, despite potential headwinds from lower interest rates and macroeconomic uncertainty [5][22] - The company is actively working to remediate a material weakness related to automated controls, with substantial progress reported [23] Other Important Information - The company ended the quarter with $117.6 million in available liquidity, including $70 million of borrowing capacity under its revolving credit facility [19] - The company has made a $10 million prepayment on its term loan during the quarter, reducing debt levels to $935.5 million [19][20] Q&A Session Summary Question: Can you provide details on the increase in SG&A and salaries? - Management clarified that SG&A increased by 26% year over year when normalizing for non-recurring items, with significant costs related to cloud migration and headcount additions [31][32] Question: What percentage of gross profit comes from B2B and enterprise? - Management confirmed that over 62% of gross profit now comes from B2B and enterprise segments, with a significant portion also from recurring revenues [34][35] Question: Can you elaborate on the Minnesota Wild contract win? - Management highlighted that the contract was won due to the ability to optimize cash flow and provide banking transparency, which is crucial for sports franchises [39][41] Question: How did the one less day in Q1 impact revenue? - Management acknowledged that the one less day did impact daily revenue, particularly in the SMB segment, and noted other unusual influences on volume [43][44] Question: What are the considerations for segment growth in Q2? - Management indicated that shifts in interest rates could impact growth, particularly in high-margin interest income [48] Question: How has consumer behavior changed post-tariffs? - Management noted no material changes in consumer behavior yet, with a resilient portfolio that includes recession-resistant sectors [54][56] Question: What opportunities exist in the embedded finance space? - Management stated that the company is well-positioned to capture opportunities from the fallout of less stable banking service providers [64]

Core Insights - Global Payments reported revenue of $2.2 billion for the quarter ended March 2025, reflecting a 1% increase year-over-year and matching the Zacks Consensus Estimate, with an EPS of $2.82, up from $2.59 in the previous year [1] - The company achieved an EPS surprise of +4.83%, exceeding the consensus estimate of $2.69 [1] Revenue Performance - Non-GAAP Revenues from Merchant Solutions reached $1.69 billion, slightly above the $1.68 billion estimate, marking a +0.5% year-over-year change [4] - Non-GAAP Revenues from Issuer Solutions were reported at $528.82 million, surpassing the $528.21 million estimate, with a +2.6% change compared to the previous year [4] - Revenues from Issuer Solutions totaled $620.73 million, exceeding the $607.50 million estimate, representing a +3% year-over-year increase [4] - Revenues from Merchant Solutions were $1.81 billion, slightly below the $1.82 billion estimate, indicating a -1.4% year-over-year change [4] Operating Income Analysis - Non-GAAP Operating Income for Merchant Solutions was $808.95 million, above the $802.11 million estimate [4] - Non-GAAP Operating Income for Issuer Solutions was $244.94 million, slightly below the $246.04 million estimate [4] - Operating Income for Merchant Solutions was reported at $614.10 million, exceeding the $599.26 million estimate [4] - Operating Income for Corporate was -$256.53 million, worse than the -$215.98 million estimate [4]

Fidelity National Information Services (FIS) Q1 2025 Earnings Call May 06, 2025 08:30 AM ET Company Participants George Mihalos - SVP & Head of Investor RelationsStephanie Ferris - CEO, President & DirectorJames Kehoe - Chief Financial OfficerJohn Davis - Managing DirectorRyan Campbell - VP - Equity ResearchBryan Bergin - Managing DirectorRayna Kumar - Managing Director - Fintech Equity ResearchVasundhara Govil - Managing Director Conference Call Participants Tien-tsin Huang - Senior AnalystDan Dolev - Seni ...

Global Payments (GPN) Q1 2025 Earnings Call May 06, 2025 07:30 AM ET Speaker0 Ladies and gentlemen, thank you for standing by, and welcome to Global Payments First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. Later, we will open the lines for questions and answers. And as a reminder, today's conference will be recorded. At this time, I'd like to turn the conference over to your host, Senior Vice President, Investor Relations, Winnie Smith. Pl ...

Global Payments (GPN) Q1 2025 Earnings Call May 06, 2025 07:30 AM ET Company Participants Winnie Smith - SVP, IRCameron Bready - Director & CEORobert Cortopassi - President & COOJosh Whipple - Senior Executive Vice President and Chief Financial OfficerAdam Frisch - Senior Managing Director - EquitiesRyan Campbell - VP - Equity ResearchTimothy Chiodo - Managing Director Conference Call Participants Jason Kupferberg - Senior Equity Research AnalystTien-tsin Huang - Senior AnalystDavid Koning - Senior Research ...

1Q 2025 earnings May 6, 2025 +5% Adjusted net revenue growth1 +70 bps Forward-looking statements This presentation may contain certain forward-looking statements within the meaning of the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on current expectations, estimates and projections about the industry and markets in which we operate, and beliefs of and assumptions made by our management, involve risks, uncertainties and a ...