Paymentus (US:PAY)2023-02-26 15:49Financial Data and Key Metrics Changes - Revenue for Q4 2022 was $132.2 million, up 22.2% year-over-year, while full-year revenue reached $497 million, representing a growth of almost 26% [12][13][33] - Contribution profit for Q4 2022 was $54.1 million, up 19.4% year-over-year, and for the full year, it was $201.3 million, reflecting a 27% increase [12][13][34] - Adjusted EBITDA for Q4 2022 was $10.2 million, with a margin of almost 19%, while the full-year adjusted EBITDA was $28.6 million, with a margin of 14.2% [12][22][44] Business Line Data and Key Metrics Changes - The company launched a product for small- and medium-sized businesses (SMBs), which is expected to expand the total addressable market (TAM) and shift interchange from a cost center to a revenue center [11][21] - The company processed 97.2 million transactions in Q4 2022, a 16.7% increase year-over-year, and for the full year, 366.9 million transactions were processed, marking a 30.8% increase compared to 2021 [31][32] Market Data and Key Metrics Changes - The company expanded its instant payment network through a partnership with Green Dot, allowing cash payments at over 90,000 retail locations across the U.S. [16] - The company signed a large bank, Citizens Financial Group, for consumable payment with its Bill Center product, indicating strong interest from larger institutions [15] Company Strategy and Development Direction - The company aims to leverage its IP ecosystem to reach a broader TAM and transform interchange into a revenue source through its SMB offering [54] - Continued investments in sales and marketing are planned to drive topline revenue growth while seeking expanded margins in 2023 [55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth prospects of the business despite macroeconomic challenges, emphasizing the resilience of the business [53][51] - The company expects revenue for 2023 to be between $575 million and $600 million, representing 16% to 21% growth, with contribution profit anticipated between $224 million and $237 million [22][40] Other Important Information - The company had $147.3 million in cash and cash equivalents as of December 31, 2022, with a decrease attributed to the acquisition of an SMB product [39] - Non-GAAP net income for Q4 2022 was $3.0 million, with a non-GAAP EPS of $0.02 [46] Q&A Session Summary Question: Discussion on Biller Direct vs. Bank Aggregator models - Management clarified that the strategy involves pursuing both models, with a focus on modernizing the payment experience for banks and billing companies [60][62] Question: Readiness of the SMB product - Management confirmed that the SMB product is live and operational, with ongoing efforts to grow this segment [66][68] Question: Changes in consumer payment behavior - Management noted a steady mix of payment methods, with a slight increase in advanced payment methods like Venmo and PayPal, but no significant shifts in credit usage [71] Question: Pricing actions and inflation impact - Management indicated that pricing actions will continue throughout the year to address inflationary pressures, which have impacted EBITDA margins [75][76] Question: Biller count and implementation pipeline - Management confirmed achieving over $100 million in new bookings and indicated a strong start to the year regarding the implementation pipeline [84][85]