Revenue Increased 30% Year-over-Year
Contribution Profit Increased 37% Year-over-Year Transactions
Increased 45% Year-over-Year
Paymentus Holdings, Inc. (“Paymentus”) (NYSE: PAY), a leading
provider of cloud-based bill payment technology solutions, today
announced financial results for its third quarter ended September
30, 2021.
“I’m very proud of the progress we made in the third quarter.
Our sales, implementations and financial performance were strong
and we’ve positioned ourselves to have significant momentum as we
turn towards 2022,” said Dushyant Sharma, Founder and CEO. “We
continue to expand and strengthen our partnerships to expand
distribution of our platform and network.”
Business Highlights and Recent
Developments
- Processed 70.6 million transactions, an increase of 44.9% from
the third quarter of 2020.
- Expanded relationship with JPMorgan to power Digital Bill
Payment to Treasury Management clients.
“I’m pleased to see Paymentus accelerate to 37% contribution
profit growth year-over-year in the third quarter as well as
increase our guidance for contribution profit growth to 30% for the
full year," said Matt Parson, CFO. "Our top-line growth coupled
with mid-to-upper teens adjusted EBITDA margin demonstrate our
ability to deliver standout performance at scale.”
Third Quarter 2021 Financial
Highlights
- Revenue was $101.7 million, an increase of 30.3% from the third
quarter of 2020.
- Gross profit was $31.2 million compared to $22.7 million for
the third quarter of 2020. Adjusted gross profit was $32.6 million
compared to $23.5 million for the third quarter of 2020.
- Contribution profit was $40.7 million, compared to $29.7
million for the third quarter of 2020, representing an increase of
37.1%.
- Net income was $0.4 million and GAAP earnings per share was
$0.0. Non-GAAP net income was $1.4 million and Non-GAAP earnings
per share was $0.01.
- Adjusted EBITDA was $5.5 million, representing a 13.6% adjusted
EBITDA margin compared to $6.0 million, or a 20.2% adjusted EBITDA
margin, for the third quarter of 2020.
- Cash and cash equivalents were $177.5 million as of September
30, 2021.
2021 Financial Outlook
Paymentus expects revenue for the full year 2021 to be between
$391 million and $393 million or 29.5% to 30.5% growth
year-over-year. Contribution profit is anticipated to be between
$156 million and $158 million or 30% and 31% growth year-over-year
(1). It expects adjusted EBITDA to be between $26.5 million and $28
million, with an adjusted EBITDA margin of approximately 17% to
18%.
Paymentus has not reconciled its outlook for adjusted EBITDA or
adjusted EBITDA margin because foreign exchange gains and losses
cannot be reasonably calculated or predicted nor can the probable
significance be determined at this time. Accordingly, a
reconciliation is not available without unreasonable effort.
(1)
Gross profit is estimated to be
approximately 76.5% of contribution profit and other cost of
revenue is estimated to be approximately 23.5% of contribution
profit.
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 third quarter results and our outlook for the year. 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 Network™, 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. 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 our financial outlook for 2021, our
expectation for contribution profit growth in 2022 and our
expectations around continued expansion of our partnerships.
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 Quarterly Report on Form 10-Q for the quarter ended
June 30, 2021 filed with the SEC on August 11, 2021 and our
Quarterly Report on Form 10-Q for the quarter ended September 30,
2021, which we expect to file with the SEC on November 10, 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, adjusted EBITDA margin,
free cash flow, 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)), depreciation and amortization 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.
Adjusted EBITDA margin is defined as adjusted EBITDA as a
percentage of contribution profit.
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,
one-time expenses or other non-cash items, including amortization
of acquisition-related intangibles.
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 September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
Revenue
$
101,676
$
78,018
$
287,393
$
219,345
Cost of revenue
70,512
55,365
199,754
152,513
Gross profit
31,164
22,653
87,639
66,832
Operating expenses
Research and development
8,818
6,221
24,469
17,970
Sales and marketing
11,314
8,002
29,041
23,246
General and administrative
9,904
4,959
24,067
12,116
Total operating expenses
30,036
19,182
77,577
53,332
Income from operations
1,128
3,471
10,062
13,500
Other income (loss)
Interest income, net
11
3
4
48
Foreign exchange loss
(16
)
(19
)
(8
)
(109
)
Income before income taxes
1,123
3,455
10,058
13,439
Provision for income taxes
(701
)
(841
)
(5,423
)
(3,361
)
Net income
$
422
$
2,614
$
4,635
$
10,078
Undeclared dividends on Series A preferred
stock
—
(1,319
)
(2,258
)
(3,834
)
Net income attributable to common
stock
$
422
$
1,295
$
2,377
$
6,244
Net income per share attributable to
common stock
Basic
$
—
$
0.01
$
0.02
$
0.06
Diluted
$
—
$
0.01
$
0.02
$
0.06
Weighted-average number of shares used to
compute net income per share attributable to common stock
Basic
118,206,073
103,479,239
110,272,583
103,479,239
Diluted
124,427,777
106,088,898
116,419,674
106,109,507
PAYMENTUS HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS (Unaudited)
(In thousands, except share and
per share data)
September 30,
December 31,
2021
2020
Assets
Current assets
Cash and cash equivalents
$
177,506
$
46,666
Restricted funds held for financial
institutions
38,071
—
Accounts and other receivables, net of
allowance of $96 and $100
37,130
28,034
Income tax receivable
1,185
2,011
Prepaid expenses and other current
assets
9,737
3,117
Total current assets
263,629
79,828
Property and equipment, net of accumulated
depreciation and amortization of $5,479 and $3,760
2,295
1,772
Capitalized internal-use software
development costs, net
27,687
20,963
Intangible assets, net
52,026
296
Goodwill
120,934
13,205
Operating lease right-of-use assets
8,261
8,322
Deferred tax asset
10
270
Other long-term assets
3,931
218
Total assets
$
478,773
$
124,874
Liabilities and Stockholders’
Equity
Current liabilities
Accounts payable
$
25,091
$
16,825
Accrued liabilities
17,381
10,201
Financial institution funds in-transit
38,071
—
Operating lease liabilities
1,687
3,010
Contract liabilities
1,912
612
Income tax payable
—
463
Total current liabilities
84,142
31,111
Deferred tax liability
6,455
3,499
Operating leases, net of current
portion
6,798
5,476
Contract liabilities, net of current
portion
1,888
—
Finance leases and other finance
obligations, net of current portion
955
412
Total liabilities
100,238
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 September 30, 2021
and December 31, 2020, respectively, none issued and outstanding at
September 30, 2021 and December 31, 2020, respectively
—
—
Class A common stock, $0.0001 par value
per share, 883,950,000 and zero shares authorized as of September
30, 2021 and December 31, 2020, respectively; 16,482,529 and zero
shares issued and outstanding as of September 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 September
30, 2021 and December 31, 2020, respectively; 103,486,739 and zero
shares issued and outstanding as of September 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 September 30,
2021 and December 31,2020, respectively; zero and 23,333 shares
issued as of September 30, 2021 and December 31, 2020,
respectively; zero and 23,013 shares outstanding as of September
30, 2021 and December 31, 2020, respectively
—
—
Common stock, $0.005 par value per share;
zero and 150,000,000 shares authorized as of September 30, 2021 and
December 31, 2020, respectively; zero and 104,785,651 shares issued
as of September 30, 2021 and December 31, 2020, respectively; and
zero and 103,479,239 shares outstanding as of September 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 September 30, 2021 and December 31, 2020, respectively
—
(579
)
Additional paid-in capital
353,079
29,175
Accumulated other comprehensive income
174
216
Retained earnings
25,270
55,047
Total stockholders’ equity
378,535
84,376
Total liabilities and stockholders'
equity
$
478,773
$
124,874
PAYMENTUS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS (Unaudited)
(In thousands)
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
Cash flows from operating
activities
Net income
$
422
$
2,614
$
4,635
$
10,078
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation and amortization
3,647
1,997
8,587
6,012
Deferred income taxes
278
429
2,691
1,318
Stock-based compensation
754
511
1,885
1,448
Non-cash lease expense
483
723
2,131
2,008
Amortization of contract asset
246
—
423
—
Change in operating assets and
liabilities, net of impact of business combination
Accounts and other receivables
(2,870
)
(3,394
)
(7,814
)
(7,663
)
Prepaid expenses and other current and
long-term assets
1,072
9
167
16
Accounts payable
4,301
8,516
7,842
13,667
Accrued liabilities
(394
)
1,521
149
2,127
Operating lease liabilities
(498
)
(767
)
(2,071
)
(1,976
)
Contract liabilities
82
155
383
511
Income taxes receivable, net of
payable
(923
)
(101
)
349
583
Net cash provided by operating
activities
6,600
12,213
19,357
28,129
Cash flows from investing
activities
Business combinations, net of cash and
restricted cash acquired
(57,120
)
(290
)
(57,120
)
(290
)
Purchases of property and equipment
(261
)
(73
)
(825
)
(382
)
Capitalized internal-use software
development costs
(4,737
)
(3,681
)
(13,473
)
(10,866
)
Net cash used in investing activities
(62,118
)
(4,044
)
(71,418
)
(11,538
)
Cash flows from financing
activities
Proceeds from initial public offering, net
of underwriter's discounts and commissions
—
—
224,595
—
Proceeds from private placement
—
—
50,000
—
Redemption of Series A preferred stock
—
—
(23,013
)
—
Payment of dividends on Series A preferred
stock
—
—
(34,412
)
—
Proceeds from repayment of related party
loan
—
—
813
—
Financial institution funds in-transit
6,612
—
6,612
—
Payments of deferred offering costs
(1,105
)
—
(1,961
)
—
Payments on other financing
obligations
(715
)
(131
)
(1,482
)
(652
)
Payments on finance leases
(68
)
(88
)
(204
)
(257
)
Net cash provided by (used in) financing
activities
4,724
(219
)
220,948
(909
)
Foreign currency effect on cash, cash
equivalents and restricted cash
(19
)
46
24
23
Net (decrease) increase in cash, cash
equivalents and restricted cash
(50,813
)
7,996
168,911
15,705
Cash, cash equivalents and restricted
cash
Beginning of period
266,390
35,136
46,666
27,427
End of period
$
215,577
$
43,132
$
215,577
$
43,132
The below table reconciles cash, cash
equivalents and restricted cash in the condensed consolidated
balance sheets to the total of the same amounts shown in the
consolidated statements of cash flows:
Cash and cash equivalents
$
177,506
$
43,132
$
177,506
$
43,132
Restricted funds held for financial
institutions
38,071
—
38,071
—
Total cash, cash equivalents and
restricted cash as shown in the consolidated statements of cash
flows
$
215,577
$
43,132
$
215,577
$
43,132
The following tables set forth our non-GAAP financial measures
with reconciliations to the most directly comparable GAAP financial
measures (in thousands):
Contribution Profit
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
(in thousands)
Gross profit
$
31,164
$
22,653
$
87,639
$
66,832
Plus: other cost of revenue
9,488
7,003
25,563
20,442
Contribution profit
$
40,652
$
29,656
$
113,202
$
87,274
Adjusted Gross Profit
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
(in thousands)
Gross profit
$
31,164
$
22,653
$
87,639
$
66,832
Stock-based compensation
—
—
—
—
Amortization
1,398
893
3,610
2,553
Adjusted gross profit
$
32,562
$
23,546
$
91,249
$
69,385
Adjusted EBITDA and Adjusted EBITDA Margin
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
(in thousands)
Net income
$
422
$
2,614
$
4,635
$
10,078
Excluding
Interest income, net
(11
)
(3
)
(4
)
(48
)
Provision for income taxes
701
841
5,423
3,361
Depreciation and amortization
3,647
1,997
8,587
6,012
Foreign exchange loss
16
19
8
109
Stock-based compensation
754
511
1,885
1,448
Other nonrecurring expenses
—
—
2,711
—
Adjusted EBITDA
$
5,529
$
5,979
$
23,245
$
20,960
Adjusted EBITDA margin
13.6
%
20.2
%
20.5
%
24.0
%
Free Cash Flow
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
(in thousands)
Net cash provided by operating
activities
$
6,600
$
12,213
$
19,357
$
28,129
Purchases of property and equipment
(261
)
(73
)
(825
)
(382
)
Capitalized internal-use software
development costs
(4,737
)
(3,681
)
(13,473
)
(10,866
)
Free cash flow
$
1,602
$
8,459
$
5,059
$
16,881
Net cash used in investing activities
$
(62,118
)
$
(4,044
)
$
(71,418
)
$
(11,538
)
Net cash provided by (used in) financing
activities
$
4,724
$
(219
)
$
220,948
$
(909
)
Non-GAAP Net Income
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
(in thousands)
Net income
$
422
$
2,614
$
4,635
$
10,078
Excluding amortization of
acquisition-related intangibles
933
—
933
—
Excluding discrete one-time tax items
—
—
2,062
—
Non-GAAP net income
$
1,355
$
2,614
$
7,630
$
10,078
Non-GAAP EPS
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
(in thousands)
Net income attributable to common
shareholders
$
422
$
1,295
$
2,377
$
6,244
Excluding amortization of
acquisition-related intangibles
933
—
933
—
Excluding undeclared dividends on Series A
preferred stock
—
1,319
2,258
3,834
Excluding discrete one-time tax items
—
—
2,062
—
Numerator for Non-GAAP EPS - basic
$
1,355
$
2,614
$
7,630
$
10,078
Weighted-average shares of common stock -
basic
118,206,073
103,479,239
110,272,583
103,479,239
Non-GAAP EPS - basic
$
0.01
$
0.03
$
0.07
$
0.10
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211109006476/en/
Investor Relations Paul Seamon pseamon@paymentus.com
Media Relations Tony Labriola tony@thinkinsideout.com
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