On August 6, 2024, Flywire Corp (FLYW, Financial) released its 8-K filing for the second quarter ended June 30, 2024. Flywire Corp, a global payments enablement and software company, reported a 22% year-over-year increase in revenue, reaching $103.7 million, surpassing the analyst estimate of $102.66 million. However, the company reported a net loss per share of $0.11, missing the analyst estimate of -$0.09.
Company Overview
Flywire Corp provides a secure payment platform, offering its clients a streamlined process to receive reconciled domestic and international payments more cost-effectively and efficiently. The company's solutions are built on three core elements: a payments platform, a proprietary global payment network, and vertical-specific software backed by deep industry expertise. Geographically, the majority of revenue is from the Americas.
Performance and Challenges
Flywire Corp's performance in Q2 2024 demonstrates resilience, with the company signing more than 200 new clients and achieving a 26% year-over-year increase in revenue less ancillary services. However, the company faced revenue headwinds due to ongoing Canadian government actions involving student study permits, which impacted its education business in Canada.
“Our second quarter results demonstrate resilient performance across the business where we signed more than 200 new clients and grew revenue by 22% and revenue less ancillary services by 26% year-over-year, despite revenue headwinds related to the ongoing Canadian government actions involving student study permits,” said Mike Massaro, CEO of Flywire.
Financial Achievements
Flywire Corp's financial achievements include a significant increase in revenue and the acquisition of Invoiced, an award-winning Accounts Receivable SaaS platform. The acquisition is expected to accelerate Flywire's progress in the fast-growing B2B vertical. Additionally, the company's Board of Directors authorized a $150 million share repurchase program, reflecting confidence in the long-term potential of the business and the strength of its balance sheet.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $103.7 million | $84.9 million |
| Net Loss | $(13.88) million | $(16.81) million |
| Net Loss per Share | $(0.11) | $(0.15) |
| Adjusted Gross Profit | $63.4 million | $50.5 million |
| Adjusted Gross Margin | 63.5% | 63.5% |
Income Statement Highlights
Flywire Corp reported a total revenue of $103.7 million for Q2 2024, up from $84.9 million in Q2 2023. The company incurred total costs and operating expenses of $119.5 million, resulting in a loss from operations of $15.8 million. Despite a net loss of $13.88 million, the company showed improvement compared to the net loss of $16.81 million in the same quarter last year.
Balance Sheet and Cash Flow
As of June 30, 2024, Flywire Corp had total assets of $998.7 million, including $539.3 million in cash and cash equivalents. The company's total liabilities amounted to $196.2 million, with stockholders' equity at $802.6 million. The company reported a net cash outflow from operating activities of $57.4 million for the first six months of 2024.
Outlook and Analysis
Flywire Corp anticipates revenue for Fiscal-Year 2024 to be in the range of $483 to $506 million, with adjusted EBITDA between $72 to $80 million. For Q3 2024, the company expects revenue between $146 to $157 million and adjusted EBITDA between $37 to $43 million. Despite challenges in the Canadian education business, Flywire's diversified revenue streams and strategic acquisitions position it well for future growth.
“Our first half results demonstrate the resilience of our team and our business model despite softer than expected performance in our Canadian education business. For Fiscal Year 2024, we are lowering our revenue outlook due to our current expectations regarding the external headwinds in Canada and raising our Full Year Adjusted EBITDA guidance which reflects 490 basis points of margin improvement at the midpoint, 170 basis points higher than our prior guidance,” said Cosmin Pitigoi, CFO of Flywire.
For more detailed financial information, visit Flywire Corp's 8-K filing.
Explore the complete 8-K earnings release (here) from Flywire Corp for further details.
