Flywire Reports Fourth Quarter and Fiscal-Year 2024 Financial Results

Fourth Quarter Revenue Increased 17.0% Year-over-Year

Fourth Quarter Revenue Less Ancillary Services Increased 17.4% Year-over-Year

Company Provides First Quarter and Fiscal-Year 2025 Outlook

BOSTON, Feb. 25, 2025 (GLOBE NEWSWIRE) -- Flywire Corporation (Nasdaq: FLYW) ("Flywire" or the "Company") a global payments enablement and software company, today reported financial results for its fourth quarter and fiscal-year ended December 31, 2024.

"Our fourth quarter results capped off another strong year for Flywire as we continued to grow the business while navigating a complex macro environment with significant headwinds," said Mike Massaro, CEO of Flywire, "We continued to focus on business and bottom line growth and generated 17% revenue growth and 680 bps adjusted EBITDA margin growth in the quarter."

"Looking ahead, we're focused on driving effectiveness and discipline throughout our global business. We will be undertaking an operational and business portfolio review. The operational review will help ensure we are efficient and effective, with a focus on driving productivity and optimizing investments across all areas. Our comprehensive business portfolio review will focus on Flywire's core strengths - such as complex, large-value payment processing, our global payment network, and verticalized software."

"One of the efficiency measures we are undertaking is a restructuring, which impacts approximately 10% of our workforce. It is difficult to say goodbye to so many FlyMates, and I want to thank them for their hard work as we endeavor to support them throughout this transition."

"As we refocus our teams on areas that we believe will drive Flywire's future growth, we are excited to announce the acquisition of Sertifi, which is expected to accelerate the expansion of our fast-growing Travel vertical. Sertifi augments our travel product offering with a leading dedicated hotel property management system integration and expands our footprint across more than 20,000 hotel locations worldwide."

Fourth Quarter 2024 Financial Highlights:

GAAP Results

   -- Revenue increased 17.0% to $117.6 million in the fourth quarter of 2024, 
      compared to $100.5 million in the fourth quarter of 2023. 
 
   -- Gross Profit increased to $74.3 million, resulting in Gross Margin of 
      63.2%, for the fourth quarter of 2024, compared to Gross Profit of $61.8 
      million and Gross Margin of 61.5% in the fourth quarter of 2023. 
 
   -- Net loss was ($15.9) million in the fourth quarter of 2024, compared to 
      net income of $1.3 million in the fourth quarter of 2023. 

Key Operating Metrics and Non-GAAP Results

   -- Number of clients grew by 16%year-over-year, with over 180 new clients 
      added in the fourth quarter of 2024. 
 
   -- Total Payment Volume increased 27.6% to $6.9 billion in the fourth 
      quarter of 2024, compared to $5.4 billion in the fourth quarter of 2023. 
 
   -- Revenue Less Ancillary Services increased 17.4% to $112.8 million in the 
      fourth quarter of 2024, compared to $96.1 million in the fourth quarter 
      of 2023. 
 
   -- Adjusted Gross Profit increased to $75.6 million, up 19.1% compared to 
      $63.5 million in the fourth quarter of 2023. Adjusted Gross Margin was 
      67.0% in the fourth quarter of 2024 compared to 66.1% in the fourth 
      quarter of 2023. 
 
   -- Adjusted EBITDA increased to $16.7 million in the fourth quarter of 2024, 
      compared to $7.7 million in the fourth quarter of 2023. Our adjusted 
      EBITDA margins increased 680 bps year-over-year to 14.8% in the fourth 
      quarter of 2024. 

2024 Business Highlights:

   -- We signed more than 800 new clients in fiscal-year 2024 surpassing the 
      700 new clients signed in fiscal-year 2023. 
 
   -- Our transaction payment volume grew by 23.6% year-over-year to $29.7 
      billion 
 
   -- Our global education vertical, continued to strengthen in a number of 
      core geographies, with U.K. region outperformance driven by new clients 
      and net revenue retention; accompanied by growth in our network of 
      international recruitment agents to further connect our ecosystem of 
      clients, agents and payers 
 
   -- Our travel vertical grew into our second largest vertical in terms of 
      revenue less ancillary services, and we generated strong growth most 
      notably with EMEA and APAC based Tour Operators and DMC providers, 
      particularly in our new sub vertical of ocean experiences. 
 
   -- Our business-to-business vertical continued its strong organic growth, 
      enhanced by the acquisition of Invoiced. 
 
   -- We further optimized our global payment network to enable vertical growth 
      with a focus on new acceptance rails, market localization and expanded 
      network coverage. This included continued support of our strategic payer 
      markets like India and China, enhancing our offerings to digitize the 
      disbursement of student loans from India and strengthening partnerships 
      with India's three largest banks. 
 
   -- We repurchased 2.3 million shares for approximately $44 million, 
      inclusive of commissions, under our share repurchase program announced on 
      August 6th, 2024. 

First Quarter and Fiscal-Year 2025 Outlook:

"Effective execution drove both revenue growth and margin expansion in 2024, in spite of significant macroeconomic challenges" said Flywire's CFO, Cosmin Pitigoi. "For our 2025 financial outlook, we project revenue less ancillary services growth of 10-14% on an FX-neutral (constant currency) basis, and a 200-400 basis point increase in adjusted EBITDA margin. We expect approximately 3 percentage points of headwind from FX throughout the year. This guidance excludes the contributions from the Sertifi acquisition, as well as any potential lessening of the macroeconomic headwinds. We are particularly encouraged by the anticipated performance of our combined travel vertical, as well as the emerging B2B vertical, both of which are expected to exceed our historical growth rate for the applicable vertical"

Based on information available as of February 25, 2025, Flywire anticipates the following results for the first quarter and fiscal-year 2025 excluding Sertifi.

 
                                                       Fiscal-Year 2025 
---------------------------------------------------  ------------------ 
  FX-Neutral GAAP Revenue Growth                          9-13% YoY 
---------------------------------------------------  ------------------ 
  FX-Neutral Revenue Less Ancillary Services Growth       10-14% YoY 
---------------------------------------------------  ------------------ 
  Adjusted EBITDA* Margin Growth                       +200-400 bps YoY 
---------------------------------------------------  ------------------ 
 
 
 
                                                       First Quarter 2025 
---------------------------------------------------  -------------------- 
  FX-Neutral GAAP Revenue Growth                           10-13% YoY 
---------------------------------------------------  -------------------- 
  FX-Neutral Revenue Less Ancillary Services Growth        11-14% YoY 
---------------------------------------------------  -------------------- 
  Adjusted EBITDA* Margin Growth                        +300-600 bps YoY 
---------------------------------------------------  -------------------- 
 
 

"Based on Sertifi's historical financials, we currently expect the acquisition to provide incremental revenue of $3.0-4.0 million and $30.0-40.0 million in revenue in the first quarter and fiscal year 2025, respectively. In addition, we currently expect the Sertifi acquisition to have a flat to slightly positive effect on adjusted EBITDA and positive (low single--digit million) effect on adjusted EBITDA, in the first quarter and fiscal year 2025, respectively, as we plan to invest in the combined solution during 2025."

*Flywire has not provided a quantitative reconciliation of forecasted Adjusted EBITDA Margin growth to forecasted GAAP Net Income Margin growth within this earnings release because Flywire is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. These items include, but are not limited to income taxes which are directly impacted by unpredictable fluctuations in the market price of Flywire's stock and in foreign currency exchange rates.

These statements are forward-looking and actual results may differ materially. Refer to the "Safe Harbor Statement" below for information on the factors that could cause Flywire's actual results to differ materially from these forward-looking statements.

Conference Call

The Company will host a conference call to discuss fourth quarter and fiscal-year 2024 financial results today at 5:00 pm ET. Hosting the call will be Mike Massaro, CEO, Rob Orgel, President and COO, and Cosmin Pitigoi, CFO. The conference call can be accessed live via webcast from the Company's investor relations website at https://ir.flywire.com/. A replay will be available on the investor relations website following the call.

Note Regarding Share Repurchase Program

Repurchases under the Company's share repurchase program (the Repurchase Program) may be made from time to time through open market purchases, in privately negotiated transactions or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions, including Rule 10b-18. The timing, value and number of shares repurchased will be determined by the Company in its discretion and will be based on various factors, including an evaluation of current and future capital needs, current and forecasted cash flows, the Company's capital structure, cost of capital and prevailing stock prices, general market and economic conditions, applicable legal requirements, and compliance with covenants in the Company's credit facility that may limit share repurchases based on defined leverage ratios. The Repurchase Program does not obligate the Company to purchase a specific number of, or any, shares. The Repurchase Program does not expire and may be modified, suspended or terminated at any time without notice at the Company's discretion.

Key Operating Metrics and Non-GAAP Financial Measures

Flywire uses non-GAAP financial measures to supplement financial information presented on a GAAP basis. The Company believes that excluding certain items from its GAAP results allows management to better understand its consolidated financial performance from period to period and better project its future consolidated financial performance as forecasts are developed at a level of detail different from that used to prepare GAAP-based financial measures. Moreover, Flywire believes these non-GAAP financial measures provide its stakeholders with useful information to help them evaluate the Company's operating results by facilitating an enhanced understanding of the Company's operating performance and enabling them to make more meaningful period to period comparisons. There are limitations to the use of the non-GAAP financial measures presented here. Flywire's non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Other companies, including companies in Flywire's industry, may calculate non-GAAP financial measures differently, limiting the usefulness of those measures for comparative purposes.

Flywire uses supplemental measures of its performance which are derived from its consolidated financial information, but which are not presented in its consolidated financial statements prepared in accordance with GAAP. These non-GAAP financial measures include the following:

   -- Revenue Less Ancillary Services.  Revenue Less Ancillary Services 
      represents the Company's consolidated revenue in accordance with GAAP 
      after excluding (i) pass-through cost for printing and mailing services 
      and (ii) marketing fees. The Company excludes these amounts to arrive at 
      this supplemental non-GAAP financial measure as it views these services 
      as ancillary to the primary services it provides to its clients. 
 
   -- Adjusted Gross Profit and Adjusted Gross Margin.  Adjusted gross profit 
      represents Revenue Less Ancillary Services less cost of revenue adjusted 
      to (i) exclude pass-through cost for printing services, (ii) offset 
      marketing fees against costs incurred and (iii) exclude depreciation and 
      amortization, including accelerated amortization on the impairment of 
      customer set-up costs tied to technology integration. Adjusted Gross 
      Margin represents Adjusted Gross Profit  divided by Revenue Less 
      Ancillary Services. Management believes this presentation supplements the 
      GAAP presentation of Gross Margin with a useful measure of the gross 
      margin of the Company's payment-related services, which are the primary 
      services it provides to its clients. 
 
   -- Adjusted EBITDA.  Adjusted EBITDA represents EBITDA further adjusted by 
      excluding (i) stock-based compensation expense and related payroll taxes, 
      (ii) the impact from the change in fair value measurement for contingent 
      consideration associated with acquisitions,(iii) gain (loss) from the 
      remeasurement of foreign currency, (iv) indirect taxes related to 
      intercompany activity, (v) acquisition related transaction costs, and 
      (vi) employee retention costs, such as incentive compensation, associated 
      with acquisition activities. Management believes that the exclusion of 
      these amounts to calculate Adjusted EBITDA provides useful measures for 
      period-to-period comparisons of the Company's business. We calculate 
      adjusted EBITDA margin by dividing adjusted EBITDA by Revenue Less 
      Ancillary Services. 
 
   -- Revenue Less Ancillary Services at Constant Currency.  Revenue Less 
      Ancillary Services at Constant Currency represents Revenue Less Ancillary 
      Services adjusted to show presentation on a constant currency basis. The 
      constant currency information presented is calculated by translating 
      current period results using prior period weighted average foreign 
      currency exchange rates.  Flywire  analyzes Revenue Less Ancillary 
      Services on a constant currency basis to provide a comparable framework 
      for assessing how the business performed excluding the effect of foreign 
      currency fluctuations. 
 
   -- Non-GAAP Operating Expenses - Non-GAAP Operating Expenses represents GAAP 
      Operating Expenses adjusted by excluding (i) stock-based compensation 
      expense and related payroll taxes, (ii) depreciation and amortization, 
      (iii) acquisition related transaction costs, if applicable, (iv) employee 
      retention costs, such as incentive compensation, associated with 
      acquisition activities and (v) the impact from the change in fair value 
      measurement for contingent consideration associated with acquisitions. 

These non-GAAP financial measures are not meant to be considered as indicators of performance in isolation from or as a substitute for the Company's revenue, gross profit, gross margin or net income (loss), or operating expenses prepared in accordance with GAAP and should be read only in conjunction with financial information presented on a GAAP basis. Reconciliations of Revenue Less Ancillary Services, Revenue Less Ancillary Services at Constant Currency, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted EBITDA and non-GAAP Operating Expenses to the most directly comparable GAAP financial measure are presented below. Flywire encourages you to review these reconciliations in conjunction with the presentation of the non-GAAP financial measures for each of the periods presented. In future fiscal periods, Flywire may exclude such items and may incur income and expenses similar to these excluded items. Flywire has not provided a quantitative reconciliation of forecasted Adjusted EBITDA Margin growth to forecasted GAAP Net Income growth within this earnings release because it is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. These items include but are not limited to income taxes which are directly impacted by unpredictable fluctuations in the market price of Flywire's stock and in foreign exchange rates. For figures in this press release reported on an "FX-Neutral basis," Flywire calculates the year-over-year impact of foreign currency movements using prior period weighted average foreign currency rates.

About Flywire

Flywire is a global payments enablement and software company. We combine our proprietary global payments network, next-gen payments platform and vertical-specific software to deliver the most important and complex payments for our clients and their customers.

Flywire leverages its vertical-specific software and payments technology to deeply embed within the existing A/R workflows for its clients across the education, healthcare and travel vertical markets, as well as in key B2B industries. Flywire also integrates with leading ERP systems, such as NetSuite, so organizations can optimize the payment experience for their customers while eliminating operational challenges.

Flywire supports approximately 4,500** clients with diverse payment methods in more than 140 currencies across 240 countries and territories around the world. Flywire is headquartered in Boston, MA, USA with global offices. For more information, visit www.flywire.com. Follow Flywire on X (formerly known as Twitter), LinkedIn and Facebook.

**Excludes clients from Flywire's Invoiced and Sertifi acquisitions

Safe Harbor Statement

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding Flywire's future operating results and financial position, Flywire's business strategy and plans, market growth, and Flywire's objectives for future operations. Flywire intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terms such as, but not limited to, "believe," "may," "will, " "potentially," "estimate," "continue," "anticipate," "intend," "could, " "would," "project," "target," "plan," "expect," or the negative of these terms, and similar expressions intended to identify forward-looking statements. Such forward-looking statements are based upon current expectations that involve risks, changes in circumstances, assumptions, and uncertainties. Important factors that could cause actual results to differ materially from those reflected in Flywire's forward-looking statements include, among others, Flywire's future financial performance, including its expectations regarding FX-Neutral GAAP Revenue Growth, FX-Neutral Revenue Less Ancillary Services

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