Revenue Increased 30% Year-over-Year
Contribution Profit Increased 25%
Year-over-Year
Transactions Increased 39% Year-over-Year
Signed Definitive Agreement to Acquire
Payveris
Paymentus Holdings, Inc. (“Paymentus”) (NYSE: PAY), a leading
provider of cloud-based bill payment technology solutions, today
announced financial results for its second quarter ended June 30,
2021.
"I'm very pleased with our first quarter as a public company. We
had strong Q2 results and we've made solid progress on the
execution of our multi-pronged strategy during the 2nd quarter,"
said Dushyant Sharma, CEO and Founder. "In addition, we believe our
acquisition of Payveris enables us to accelerate our Instant
Payments Network by expanding our payments platform reach to
hundreds of banks and credit unions.”
Business Highlights and Recent
Developments
- Processed 64.2 million transactions, an increase of 39% from
the second quarter of 2020.
- Signed a definitive agreement to acquire Payveris, a leading
payments processing company for financial institutions.
- Signed a definitive agreement to acquire Finovera, a leading
bill aggregation technology provider for financial
institutions.
"As a result of our continued execution, we saw almost 40%
growth in the number of transactions processed by our platform in
the second quarter bringing the annualized run rate of transactions
to more than 250 million," said Matt Parson, Paymentus CFO.
"Consequently both revenue and contribution profit also experienced
strong growth in the quarter."
Second Quarter 2021 Financial
Highlights
- Total revenue was $93.5 million, an increase of 30.3% from the
second quarter of 2020.
- Gross profit was $28.9 million compared to $23.4 million for
the second quarter of 2020. Adjusted gross profit was $30.1 million
compared to $24.3 million for the second quarter of 2020.
- Contribution profit was $37.4 million, compared to $30.0
million for the second quarter of 2020, representing an increase of
24.8%
- Adjusted EBITDA was $8.3 million, representing a 22.2% margin
compared to $8.8 million, or a 29.3% margin, for the second quarter
of 2020.
- Net income and EPS were $0.6 million and $0.0 per share.
Non-GAAP net income and Non-GAAP EPS were $2.6 million and $0.02
per share.
- Effective tax rate was 86% due to one-time discrete tax items.
When one-time items are excluded the adjusted tax rate is
approximately 30%.
- Cash and cash equivalents were $266.4 million as of June 30,
2021
2021 Financial Outlook
Paymentus expects revenue for the full year 2021 to be between
$378 million and $382 million or 25% to 27% growth. Contribution
profit is anticipated to be between $152 million and $154 million
or 26% and 28% growth. It expects adjusted EBITDA to be between $25
million and $28 million, which is a margin of 16.5% to 18.5%. The
outlook is inclusive of the Payveris and Finovera acquisitions.
Conference Call Information
In conjunction with this announcement, Paymentus will host a
conference call for investors at 2:00 p.m. PT (5:00 p.m. ET) today
to discuss second quarter results, our outlook for the year and our
pending acquisitions of Payveris and Finovera. The live webcast and
replay will be available at the Investor Relations section of
Paymentus’ website.
About Paymentus
Paymentus is a leading provider of cloud-based bill payment
technology and solutions for more than 1,300 billers across North
America. Our omni-channel platform provides consumers with
easy-to-use, flexible and secure electronic bill payment
experiences through their preferred payment channel and type.
Paymentus’ proprietary Instant Payment NetworkTM, or IPN, extends
our reach by connecting our IPN partners’ platforms and tens of
thousands of billers to our integrated billing, payment, and
reconciliation capabilities. Approximately 16 million consumers and
businesses used the Paymentus platform to pay their bills and
engage with our billers as of December 2020. For more information,
please visit www.paymentus.com
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934 and the Private
Securities Litigation Reform Act of 1995. All statements other than
statements of historical or current fact included in this press
release are forward-looking statements, including but not limited
to statements regarding including but not limited to statements
regarding our financial outlook for 2021, execution of business
strategies, the impact of acquisitions and our ability to add more
billers. Forward-looking statements include statements containing
words such as “expect,” “anticipate,” “believe,” “project,” “will”
and similar expressions intended to identify forward-looking
statements. These forward-looking statements are based on our
current expectations. Forward-looking statements involve risks and
uncertainties. Our actual results and the timing of events could
differ materially from those anticipated in such forward-looking
statements as a result of these risks and uncertainties, which
include, without limitation, risks related to our ability to
effectively manage our growth and expand our operations, including
into new channels and industry verticals across different markets;
our ability to expand and retain our biller, partner and consumer
base; the continued impact of the COVID-19 pandemic on our
operating results, liquidity and financial condition and on our
employees, billers, partners, consumers and other key stakeholders;
our ability to remain competitive; our ability to develop new
product features and enhance our platform and brand; our future
acquisitions and strategic investments; our ability to hire and
retain experienced and talented employees; and other risks and
uncertainties included under the caption “Risk Factors” and
elsewhere in our filings with the Securities and Exchange
Commission, or SEC, including, without limitation, our final
prospectus filed with the SEC under Rule 424(b)(4) on May 26, 2021
and our Quarterly Report on Form 10-Q for the quarter ended June
30, 2021, which we expect to file with the SEC on August 11, 2021.
You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. All forward-looking statements are qualified in
their entirety by this cautionary statement, and we undertake no
obligation to revise or update any forward-looking statements to
reflect events or circumstances after the date hereof.
Use of Non-GAAP Measures
In addition to disclosing financial measures in accordance with
accounting principles generally accepted in the United States, or
GAAP, this press release and the accompanying tables contain
certain non-GAAP financial measures, including contribution profit,
adjusted gross profit, adjusted EBITDA, free cash flow and Non-GAAP
net income and Non-GAAP EPS. We use non-GAAP measures to supplement
financial information presented on a GAAP basis. We believe that
excluding certain items from our GAAP results allows management and
our board of directors to more fully understand our consolidated
financial performance from period to period and helps management
project our future consolidated financial performance as forecasts
are developed at a level of detail different from that used to
prepare GAAP-based financial measures.
Contribution profit is defined as gross profit plus other cost
of revenue. Other cost of revenue equals cost of revenue less
interchange and assessment fees paid by us to our payment
processors.
Adjusted gross profit is defined as gross profit adjusted for
non-cash items, primarily stock-based compensation and
amortization.
Adjusted EBITDA is defined as net income before other income
(expense) (which consists of interest income (expense), net and
foreign exchange gain (loss)), amortization and depreciation and
income taxes, adjusted to exclude the effects of stock-based
compensation expense and certain nonrecurring expenses that
management believes are not indicative of ongoing operations,
consisting primarily of professional fees and other indirect
charges associated with our initial public offering.
Free cash flow is defined as net cash provided by (used in)
operating activities less capital expenditures and capitalized
internal-use software development costs.
Non-GAAP net income and Non-GAAP EPS are defined as net income
excluding certain nonrecurring items such as discrete tax items or
potential acquisition related costs or other non-cash items.
We believe these non-GAAP measures provide our investors with
useful information to help them evaluate our operating results by
facilitating an enhanced understanding of our operating performance
and enabling them to make more meaningful period-to-period
comparisons. In particular, we exclude interchange and assessment
fees in the presentation of contribution profit because we believe
inclusion is less directly reflective of our operating performance
as we do not control the payment channel used by consumers, which
is the primary determinant of the amount of interchange and
assessment fees. We use contribution profit to measure the amount
available to fund our operations after interchange and assessment
fees, which are directly linked to the number of transactions we
process and thus our revenue and gross profit.
We use these non-GAAP measures in conjunction with GAAP measures
as part of our overall assessment of our performance and liquidity,
including the preparation of our annual operating budget and
quarterly forecasts, to evaluate the effectiveness of our business
strategies, and to communicate with our board of directors
concerning our financial performance and liquidity. There are
limitations to the use of the non-GAAP measures presented in this
press release. Our non-GAAP measures may not be comparable to
similarly titled measures of other companies; other companies,
including companies in our industry, may calculate non-GAAP
measures differently than we do, limiting the usefulness of those
measures for comparative purposes. These non-GAAP measures should
not be considered in isolation from or as a substitute for
financial measures prepared in accordance with GAAP.
We encourage investors and others to review our financial
information in its entirety, not to rely on any single financial
measure, and to view our non-GAAP measures in conjunction with GAAP
financial measures. For a reconciliation of these non-GAAP
financial measures to GAAP measures, please see the tables for the
reconciliation of GAAP to non-GAAP results included at the end of
this release.
PAYMENTUS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS (Unaudited)
(In thousands, except share and
per share data)
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Revenue
$
93,495
$
71,734
$
185,717
$
141,327
Cost of revenue
64,567
48,332
129,242
97,148
Gross profit
28,928
23,402
56,475
44,179
Operating expenses
Research and development
7,921
5,981
15,651
11,749
Sales and marketing
9,505
7,632
17,727
15,244
General and administrative
7,421
3,469
14,163
7,157
Total operating expenses
24,847
17,082
47,541
34,150
Income from operations
4,081
6,320
8,934
10,029
Other income (loss)
Interest income (expense), net
(4
)
3
(7
)
45
Foreign exchange (loss) gain
(1
)
(24
)
8
(90
)
Income before income taxes
4,076
6,299
8,935
9,984
Provision for income taxes
(3,501
)
(1,614
)
(4,722
)
(2,520
)
Net income
$
575
$
4,685
$
4,213
$
7,464
Undeclared dividends on Series A preferred
stock
(898
)
(1,273
)
(2,258
)
(2,515
)
Net income (loss) attributable to common
stock
$
(323
)
$
3,412
$
1,955
$
4,949
Net income (loss) per share attributable
to common stock
Basic
$
—
$
0.03
$
0.02
$
0.05
Diluted
$
—
$
0.03
$
0.02
$
0.05
Weighted-average number of shares used to
compute net income per share attributable to common stock
Basic
108,970,604
103,479,239
106,240,091
103,479,239
Diluted
108,970,604
106,151,678
112,244,054
106,135,251
PAYMENTUS HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS (Unaudited)
(In thousands, except share and
per share data)
June 30,
December 31,
2021
2020
Assets
Current assets
Cash and cash equivalents
$
266,390
$
46,666
Accounts and other receivables, net of
allowance of $95 and $100
32,967
28,034
Income tax receivable
263
2,011
Prepaid expenses and other current
assets
7,234
3,117
Total current assets
306,854
79,828
Property and equipment, net of accumulated
depreciation and amortization of $4,347 and $3760
2,056
1,772
Capitalized internal-use software
development costs, net
25,366
20,963
Intangible assets, net
195
296
Goodwill
13,216
13,205
Operating lease right-of-use assets
9,506
8,322
Deferred tax asset
144
270
Other long-term assets
3,463
218
Total assets
$
360,800
$
124,874
Liabilities and Stockholders’
Equity
Current liabilities
Accounts payable
$
21,705
$
16,825
Accrued liabilities
12,185
10,201
Operating lease liabilities
2,311
3,010
Contract liabilities
913
612
Income tax payable
-
463
Total current liabilities
37,114
31,111
Deferred tax liability
5,775
3,499
Operating leases, net of current
portion
7,440
5,476
Finance leases and other finance
obligations, net of current portion
279
412
Total liabilities
50,608
40,498
Commitments and contingencies (Note 9)
Stockholders’ equity
Preferred stock, $0.0001 par value per
share, 5,000,000 and zero shares authorized at June 30, 2021 and
December 31, 2020, respectively, none issued and outstanding at
June 30, 2021 and December 31, 2020
—
—
Class A common stock, $0.0001 par value
per share, 883,950,000 and zero shares authorized as of June 30,
2021 and December 31, 2020, respectively; 13,880,950 and zero
shares issued and outstanding as of June 30, 2021 and December 31,
2020, respectively
1
—
Class B common stock, $0.0001 par value
per share, 111,050,000 and zero shares authorized as of June 30,
2021 and December 31, 2020, respectively; 103,479,239 and zero
shares issued and outstanding as of June 30, 2021 and December 31,
2020, respectively
11
—
Series A preferred stock, par value $0.01
per share; zero and 50,000 shares authorized as of June 30, 2021
and December 31,2020, respectively; zero and 23,333 shares issued
as of June 30, 2021 and December 31, 2020, respectively; zero and
23,013 shares outstanding as of June 30, 2021 and December 31,
2020, respectively
—
—
Common stock, $0.005 par value per share;
zero and 150,000,000 shares authorized as of June 30, 2021 and
December 31, 2020, respectively; zero and 104,785,651 shares issued
as of June 30, 2021 and December 31, 2020, respectively; and zero
and 103,479,239 shares outstanding as of June 30, 2021 and December
31, 2020, respectively
—
517
Treasury stock at cost, zero and 320
Series A preferred shares; and zero and 1,306,412 common shares as
of June 30, 2021 and December 31, 2020, respectively
—
(579
)
Additional paid-in capital
285,164
29,175
Accumulated other comprehensive income
168
216
Retained earnings
24,848
55,047
Total stockholders’ equity
310,192
84,376
Total liabilities and stockholders'
equity
$
360,800
$
124,874
PAYMENTUS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS (Unaudited)
(In thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Cash flows from operating
activities
Net income
$
575
$
4,685
$
4,213
$
7,464
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation and amortization
2,548
1,995
4,940
4,015
Deferred income taxes
1,656
482
2,413
889
Stock-based compensation
568
462
1,131
937
Non-cash lease expense
857
658
1,648
1,285
Amortization of contract asset
177
—
177
—
Change in operating assets and
liabilities, net of impact of business combination
Accounts and other receivables
652
(1,182
)
(4,944
)
(4,269
)
Prepaid expenses and other current and
long-term assets
(828
)
464
(905
)
7
Accounts payable
(1,229
)
2,490
3,541
5,151
Accrued liabilities
610
1,403
543
606
Operating lease liabilities
(848
)
(652
)
(1,573
)
(1,209
)
Contract liabilities
(582
)
(2
)
301
356
Income taxes receivable, net of
payable
1,424
212
1,272
684
Net cash provided by operating
activities
5,580
11,015
12,757
15,916
Cash flows from investing
activities
Purchases of property and equipment
(408
)
(145
)
(564
)
(309
)
Capitalized internal-use software
development costs
(4,480
)
(3,731
)
(8,736
)
(7,185
)
Net cash used in investing activities
(4,888
)
(3,876
)
(9,300
)
(7,494
)
Cash flows from financing
activities
Proceeds from initial public offering, net
of underwriter's discounts and commissions
224,595
—
224,595
—
Proceeds from private placement
50,000
—
50,000
—
Redemption of Series A preferred stock
(23,013
)
—
(23,013
)
—
Payment of dividends on Series A preferred
stock
(34,412
)
—
(34,412
)
—
Proceeds from repayment of related party
loan
—
—
813
—
Payments of deferred offering costs
(399
)
—
(856
)
—
Payments on other financing
obligations
(384
)
(262
)
(767
)
(521
)
Payments on finance leases
(68
)
(111
)
(136
)
(169
)
Net cash used in financing activities
216,319
(373
)
216,224
(690
)
Foreign currency effect on cash and cash
equivalents
10
24
43
(23
)
Net increase in cash and cash
equivalents
217,021
6,790
219,724
7,709
Cash and cash equivalents
Beginning of period
49,369
28,346
46,666
27,427
End of period
$
266,390
$
35,136
$
266,390
$
35,136
The following schedules reflect our non-GAAP measures and
reconciles our non-GAAP financial measures to the related GAAP
financial measures (in thousands):
Contribution Profit
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
(in thousands)
Gross profit
$
28,928
$
23,402
$
56,475
$
44,179
Plus: other cost of revenue
8,513
6,589
16,075
13,440
Contribution profit
$
37,441
$
29,991
$
72,550
$
57,619
Adjusted Gross Profit
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
(in thousands)
Gross profit
$
28,928
$
23,402
$
56,475
$
44,179
Stock-based compensation
—
—
—
—
Amortization
1,164
858
2,212
1,660
Adjusted gross profit
$
30,092
$
24,260
$
58,687
$
45,839
Adjusted EBITDA
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
(in thousands)
Net income
$
575
$
4,685
$
4,213
$
7,464
Excluding
Interest (income) expense, net
4
(3
)
7
(45
)
Provision for income taxes
3,501
1,614
4,722
2,520
Depreciation and amortization
2,548
1,995
4,940
4,015
Foreign exchange (gain) loss
1
24
(8
)
90
Stock-based compensation
568
462
1,131
937
Other nonrecurring expenses
1,115
--
2,711
--
Adjusted EBITDA
$
8,312
$
8,777
$
17,716
$
14,981
Free Cash Flow
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
(in thousands)
Net cash provided by operating
activities
$
5,580
$
11,015
$
12,757
$
15,916
Purchases of property and equipment
(408
)
(145
)
(564
)
(309
)
Capitalized internal-use software
development costs
(4,480
)
(3,731
)
(8,736
)
(7,185
)
Free cash flow
$
692
$
7,139
$
3,457
$
8,422
Net cash used in investing activities
$
(4,888
)
$
(3,876
)
$
(9,300
)
$
(7,494
)
Net cash provided by (used in) financing
activities
$
216,319
$
(373
)
$
216,224
$
(690
)
Non-GAAP Net Income
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
(in thousands)
Net income
$
575
$
4,685
$
4,213
$
7,464
Excluding discrete one-time tax items
2,062
—
2,062
—
Adjusted net income
$
2,637
$
4,685
$
6,275
$
7,464
Non-GAAP EPS
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
(in thousands)
Net income attributable to common
shareholders
$
(323
)
$
3,412
$
1,955
$
4,949
Excluding undeclared dividends on Series A
preferred stock
898
1,273
2,258
2,515
Excluding discrete one-time tax items
2,062
—
2,062
—
Numerator for Non-GAAP EPS - basic
$
2,637
$
4,685
$
6,275
$
7,464
Weighted-average shares of common stock -
basic
108,970,604
103,479,239
106,240,091
103,479,239
Non-GAAP EPS - basic
$
0.02
$
0.05
$
0.06
$
0.07
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210810005958/en/
Investor Relations Paul Seamon pseamon@paymentus.com
Media Relations Tony Labriola tony@thinkinsideout.com
(978) 815-8640
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