Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $280.1 million, representing a 41.9% year-over-year increase, driven by an increased number of billers and higher transactions [12][17][18] - Contribution profit increased to $93.5 million, up 22.3% year-over-year, with an adjusted EBITDA of $31.7 million, reflecting a 40.7% year-over-year increase and a 33.9% adjusted EBITDA margin [12][22][31] - The company exceeded the rule of 40 for the quarter, achieving a score of 56, indicating solid execution and high-quality earnings alongside revenue growth [12][23] Business Line Data and Key Metrics Changes - The number of transactions processed grew to 175.8 million in Q2, a 25.2% year-over-year increase, with the average price per transaction rising from $1.41 to $1.59 [18][19] - Contribution margin for Q2 was 33.4%, down from 38.7% in the prior year, attributed to the addition of larger enterprise billers [19][20] Market Data and Key Metrics Changes - Strong bookings were noted in the large enterprise segment across various verticals, including utilities, government agencies, telecommunications, and banking [13][14][26] - The company reported a significant backlog growth, providing greater visibility for the remainder of 2025 and into 2026 [17][26] Company Strategy and Development Direction - The company aims to leverage its unmatched visibility and strong backlog to focus on long-term shareholder value through innovation and execution [5][6] - The management expressed confidence in becoming a multibillion-dollar revenue company in the coming years, primarily through organic growth without significant M&A activity [6][30] Management's Comments on Operating Environment and Future Outlook - Management highlighted the positive trends in customer activity and demand, raising full-year guidance for revenue, contribution profit, and adjusted EBITDA [17][30] - The company is optimistic about the impact of Agentic AI on the broader technology landscape, positioning itself to capitalize on this shift [7][60] Other Important Information - The company ended Q2 with total cash and cash equivalents of $270 million and no debt, providing financial flexibility for working capital investments and potential M&A opportunities [24][33] - Free cash flow generated during the quarter was $22.5 million, driven by strong adjusted EBITDA [24][62] Q&A Session Summary Question: Historical seasonality and Q3 growth expectations - Management noted a shift in seasonality due to increased market share and large government customers, indicating that past trends may not apply [35][36] Question: Quality of earnings and bad debt expense - Management stated that the bad debt expense is insignificant and reflects prudent write-offs of old amounts [40][41] Question: Demand in verticals and enterprise success - Management emphasized the strength of their platform and ecosystem, which has led to success across various verticals, including utilities and government agencies [46][49] Question: Sustainability of operating leverage - Management confirmed that they expect to maintain high operating leverage while being cautious with spending, focusing on converting pipeline into bookings [51][54] Question: Free cash flow expectations - Management indicated that cash flow generation is strong, with a model provided for forecasting free cash flow based on adjusted EBITDA and working capital needs [62][66] Question: AI and agentic payments future - Management expressed readiness to capitalize on AI opportunities, viewing it as a potential revenue center and a means to enhance customer experience [70][72] Question: Hiring plans across Salesforce and implementation - Management highlighted a balanced approach to hiring, focusing on sales to convert pipeline into bookings while also strengthening technical capabilities [73][76] Question: Incremental EBITDA margin sustainability - Management reassured that the company has strong operating leverage and expects incremental EBITDA margins to improve over time [85]