First Quarter Transactions Increased 41%
Year-over-Year First Quarter Revenue Increased 27% Year-over-Year
First Quarter Gross Profit Increased 27% Year-over-Year
Contribution Profit* Increased 35% 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 first quarter ended March 31,
2022.
"We had a great quarter, headlined by about 50% growth in new
clients signed, which we believe positions us well for 2022 and
beyond," said Dushyant Sharma, Founder and CEO. "We are also very
proud to have the third quarter in a row of contribution profit
growth above 30%."
First Quarter 2022 Business and
Financial Highlights*
- Processed 87.9 million transactions in the first quarter of
2022, an increase of 40.9% from the first quarter of 2021.
- Revenue was $116.7 million, an increase of 26.5% from the first
quarter of 2021.
- Gross profit was $34.9 million compared to $27.5 million for
the first quarter of 2021. Adjusted gross profit was $37.4 million
compared to $28.6 million for the first quarter of 2021.
- Contribution profit was $47.4 million, compared to $35.1
million for the first quarter of 2021, representing an increase of
35.0%.
- Net income was $1.7 million and GAAP income per share was
$0.01. Non-GAAP net income was $3.7 million and non-GAAP earnings
per share was $0.03.
- Adjusted EBITDA was $5.4 million, representing an 11.4%
adjusted EBITDA margin compared to $9.4 million, representing a
26.8% adjusted EBITDA margin, for the first quarter of 2021.
"35% contribution profit growth and crossing a payments volume
run rate of $100 billion are two of our first quarter highlights,"
said Matt Parson, CFO. "As a result of this continued momentum, we
are raising our contribution profit outlook. We now expect
contribution profit growth of 30-31%, which is approaching the same
range we achieved in 2021."
* Descriptions of the non-GAAP financial measures contribution
profit, adjusted gross profit, adjusted EBITDA, adjusted EBITDA
margin, non-GAAP net income and non-GAAP earnings per share are
provided below under “Use and Definitions of Non-GAAP Financial
Measures,” and reconciliations are provided in the tables at the
end of this release.
Updated 2022 Financial
Outlook
Paymentus expects revenue for the full year 2022 to be between
$492 million and $497 million or approximately 24.5% to 26% growth
year-over-year. Contribution profit is anticipated to be between
$206 million and $208 million or 30% and 31% growth
year-over-year(1). Adjusted EBITDA is expected to be between $30
million and $33 million, resulting in an expected adjusted EBITDA
margin of approximately 14.5% to 16%.
(1) Gross profit is estimated to be approximately 72% of
contribution profit and other cost of revenue is estimated to be
approximately 28% of contribution profit. The decrease in GAAP
gross profit for 2022 is primarily driven by amortization of
acquired intangibles, as such this will not impact adjusted gross
profit.
Paymentus does not reconcile its forward-looking guidance for
non-GAAP measures because certain financial information, the
probable significance of which cannot be determined, is not
available and cannot be reasonably estimated. Refer to “Use of
Forward-Looking Non-GAAP Measures” below for additional
explanation. The statements in this section are forward-looking
statements. For additional information regarding the use and
limitations of such statements, refer to “Forward-Looking
Statements” below.
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 first quarter 2022 results and our outlook for 2022. 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 1,700 billers and financial
institutions 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. 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 future financial performance and our
updated 2022 financial outlook. 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, financial institution,
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, financial institutions,
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 Annual Report on Form 10-K for the year ended
December 31, 2021, filed with the SEC on March 3, 2022 and our
Quarterly Report on Form 10-Q for the quarter ended March 31, 2022,
which we expect to file with the SEC in early May 2022. 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 Forward-Looking Non-GAAP Measures
Paymentus does not meaningfully reconcile guidance for adjusted
EBITDA and adjusted EBITDA margin, because Paymentus cannot provide
guidance for the more significant reconciling items between net
income and adjusted EBITDA without unreasonable effort. This is due
to the fact that future period non-GAAP guidance includes
adjustments for items not indicative of our core operations, which
may include, without limitation, items included in the supplemental
financial information for reconciliation of reported GAAP results
to non-GAAP results. Such items include acquisition related
amortization expense for acquired intangibles, foreign exchange
gains and losses, adjustments to its income tax provision and
certain other items Paymentus believes to be non-indicative of its
ongoing operations. Such adjustments may be affected by changes in
ongoing assumptions, judgements, as well as nonrecurring, unusual
or unanticipated charges, expenses or gains/losses or other items
that may not directly correlate to the underlying performance of
our business operations. The exact amount of these adjustments is
not currently determinable but may be significant.
Use and Definitions of Non-GAAP Financial 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 earnings per
share, or 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 March
31,
2022
2021
Revenue
$
116,704
$
92,222
Cost of revenue
81,850
64,675
Gross profit
34,854
27,547
Operating expenses
Research and development
10,390
7,730
Sales and marketing
16,190
8,222
General and administrative
9,645
6,742
Total operating expenses
36,225
22,694
(Loss) income from operations
(1,371
)
4,853
Other income (loss)
Interest expense, net
(8
)
(3
)
Foreign exchange gain
26
9
(Loss) income before income taxes
(1,353
)
4,859
Benefit from (provision for) income
taxes
3,071
(1,221
)
Net income
$
1,718
$
3,638
Undeclared dividends on Series A preferred
stock
—
(1,360
)
Net income attributable to common
stock
$
1,718
$
2,278
Net income per share attributable to
common stock
Basic
$
0.01
$
0.02
Diluted
$
0.01
$
0.02
Weighted-average number of shares used to
compute net income per share attributable to common stock
Basic
120,897,576
103,479,239
Diluted
125,986,510
106,303,894
PAYMENTUS HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS (Unaudited)
(In thousands, except share and
per share data)
March 31,
December 31,
2022
2021
Assets
Current assets
Cash and cash equivalents
$
163,384
$
168,386
Restricted funds held for financial
institutions
36,782
33,443
Accounts and other receivables, net of
allowance of $192 and $102
51,913
43,935
Income tax receivable
8,583
2,488
Prepaid expenses and other current
assets
7,366
8,184
Total current assets
268,028
256,436
Property and equipment, net of accumulated
depreciation and amortization of $5,147 and $4,791
2,155
2,044
Capitalized internal-use software
development costs, net
34,513
30,888
Intangible assets, net
40,039
42,088
Goodwill
129,417
129,413
Operating lease right-of-use assets
7,702
7,703
Deferred tax asset
1,052
163
Other long-term assets
4,707
4,207
Total assets
$
487,613
$
472,942
Liabilities and Stockholders’
Equity
Current liabilities
Accounts payable
$
29,527
$
24,748
Accrued liabilities
12,503
12,491
Financial institution funds in-transit
36,782
33,443
Operating lease liabilities
1,356
1,456
Contract liabilities
1,253
2,173
Income tax payable
1,579
122
Total current liabilities
83,000
74,433
Deferred tax liability
5,600
3,318
Operating leases, net of current
portion
6,552
6,463
Contract liabilities, net of current
portion
2,581
1,713
Finance leases and other finance
obligations, net of current portion
786
883
Total liabilities
98,519
86,810
Commitments and contingencies (Note 9)
Stockholders’ equity
Preferred stock, $0.0001 par value per
share, 5,000,000 authorized at March 31, 2022 and December 31,
2021, respectively, none issued and outstanding at March 31, 2022
and December 31, 2021, respectively
—
—
Class A common stock, $0.0001 par value
per share, 883,950,000 shares authorized as of March 31, 2022 and
December 31, 2021, respectively; 17,715,046 and 17,251,079 shares
issued and outstanding as of March 31, 2022 and December 31, 2021,
respectively
2
1
Class B common stock, $0.0001 par value
per share, 111,050,000 shares authorized as of March 31, 2022 and
December 31, 2021, respectively; 103,336,337 and 103,388,082 shares
issued and outstanding as of March 31, 20222 and December 31, 2021,
respectively
10
11
Additional paid-in capital
357,306
356,017
Accumulated other comprehensive income
123
168
Retained earnings
31,653
29,935
Total stockholders’ equity
389,094
386,132
Total liabilities and stockholders'
equity
$
487,613
$
472,942
PAYMENTUS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS (Unaudited)
(In thousands)
Three Months Ended March
31,
2022
2021
Cash flows from operating
activities
Net income
$
1,718
$
3,638
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation and amortization
5,474
2,392
Deferred income taxes
1,406
757
Stock-based compensation
1,276
563
Non-cash lease expense
755
791
Amortization of contract asset
467
—
Provision for credit losses
95
—
Change in operating assets and
liabilities
Accounts and other receivables
(8,082
)
(5,596
)
Prepaid expenses and other current and
long-term assets
(161
)
(77
)
Accounts payable
4,916
4,770
Accrued liabilities
862
(67
)
Operating lease liabilities
(770
)
(725
)
Contract liabilities
(57
)
883
Income taxes receivable, net of
payable
(4,651
)
(152
)
Net cash provided by operating
activities
3,248
7,177
Cash flows from investing
activities
Other intangible assets acquired
(23
)
—
Purchases of property and equipment
(530
)
(156
)
Capitalized internal-use software
development costs
(6,731
)
(4,256
)
Net cash used in investing activities
(7,284
)
(4,412
)
Cash flows from financing
activities
Proceeds from repayment of related party
loan
—
813
Proceeds from exercise of stock
options
13
—
Financial institution funds in-transit
3,339
—
Payments of deferred offering costs
—
(457
)
Payments on other financing
obligations
(915
)
(383
)
Payments on finance leases
(74
)
(68
)
Net cash provided by (used in) financing
activities
2,363
(95
)
Foreign currency effect on cash, cash
equivalents and restricted cash
10
33
Net (decrease) increase in cash, cash
equivalents and restricted cash
(1,663
)
2,703
Cash, cash equivalents and restricted
cash
Beginning of period
201,829
46,666
End of period
$
200,166
$
49,369
PAYMENTUS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS (continued) (Unaudited)
(In thousands)
Three Months Ended March
31,
2022
2021
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
condensed consolidated statements of cash flows:
Cash and cash equivalents
$
163,384
$
49,369
Restricted funds held for financial
institutions
36,782
—
Total cash, cash equivalents and
restricted cash as shown in the condensed consolidated statements
of cash flows
$
200,166
$
49,369
The following tables set forth our non-GAAP financial measures
with reconciliations to the most directly comparable GAAP financial
measures:
Contribution Profit
Three Months Ended March
31,
2022
2021
(in thousands)
Gross profit
$
34,854
$
27,547
Plus: other cost of revenue
12,531
7,562
Contribution profit
$
47,385
$
35,109
Adjusted Gross Profit
Three Months Ended March
31,
2022
2021
(in thousands)
Gross profit
$
34,854
$
27,547
Stock-based compensation
—
—
Amortization
2,510
1,048
Adjusted gross profit
$
37,364
$
28,595
Adjusted EBITDA and Adjusted EBITDA
Margin
Three Months Ended March
31,
2022
2021
(in thousands)
Net income
$
1,718
$
3,638
Excluding
Interest expense, net
8
3
(Benefit from) provision for income
taxes
(3,071
)
1,221
Depreciation and amortization
5,474
2,392
Foreign exchange gain
(26
)
(9
)
Stock-based compensation
1,276
563
Other nonrecurring expenses(1)
—
1,596
Adjusted EBITDA
$
5,379
$
9,404
Adjusted EBITDA margin
11.4
%
26.8
%
(1) Other nonrecurring expenses consist of
indirect costs incurred associated with our IPO.
Free Cash Flow
Three Months Ended March
31,
2022
2021
(in thousands)
Net cash provided by operating
activities
$
3,248
$
7,177
Purchases of property and equipment
(530
)
(156
)
Capitalized internal-use software
development costs
(6,731
)
(4,256
)
Free cash flow
$
(4,013
)
$
2,765
Net cash used in investing activities
$
(7,284
)
$
(4,412
)
Net cash provided by (used in) financing
activities
$
2,363
$
(95
)
Non-GAAP Net Income
Three Months Ended March
31,
2022
2021
(in thousands)
Net income
$
1,718
$
3,638
Excluding amortization of
acquisition-related intangibles
2,007
—
Non-GAAP net income
$
3,725
$
3,638
Non-GAAP EPS
2022
2021
(in thousands, except share
and per share data)
Net income attributable to common
shareholders
$
1,718
$
2,278
Excluding amortization of
acquisition-related intangibles
2,007
—
Excluding undeclared dividends on Series A
preferred stock
—
1,360
Numerator for Non-GAAP EPS - basic
$
3,725
$
3,638
Weighted-average shares of common stock -
basic
120,897,576
103,479,239
Non-GAAP EPS - basic
$
0.03
$
0.04
CATEGORY: EARNINGS NEWS SOURCE: PAYMENTUS
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version on businesswire.com: https://www.businesswire.com/news/home/20220504005988/en/
Investor Relations Paul Seamon pseamon@paymentus.com
Media Relations Tony Labriola tony@thinkinsideout.com
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