Paymentus Raises Outlook as Transaction Growth Accelerates
Adjusted EBITDA jumped 54% to $48.8 million as margins reached a record.
Paymentus Holdings (PAY), an electronic billing and payments provider, raised its full-year outlook after second-quarter transaction growth accelerated and profitability widened.
Revenue growth slowed to 28.8% from 30.2% in the first quarter and 41.9% a year earlier. Sequential growth eased to 0.6% from 8.4%, while processed-transaction growth accelerated.
Revenue rose to $360.7 million from a year earlier. Net income increased 73.8% to $25.6 million, and diluted GAAP earnings climbed to $0.20 a share from $0.11. Non-GAAP earnings rose to $0.25 a share from $0.15.
Processed transactions increased 21.4% to 213.4 million, up 4.9% from the first quarter. Implied revenue per transaction rose about 6% from a year earlier to $1.69 and declined about 4% sequentially as transaction growth outpaced revenue growth from the first quarter.
Gross profit increased 31.9% to $94.3 million, lifting gross margin to about 26.1% from 25.5% a year earlier and 24.1% in the first quarter. Contribution profit rose 26.3% to $118.1 million, its fifth consecutive quarter of accelerating growth, while adjusted EBITDA margin expanded for a fifth straight quarter to 41.3% of contribution profit.
The results cleared the top of Paymentus's prior forecasts. Revenue exceeded the previous ceiling by $10.7 million, contribution profit topped its ceiling by $7.1 million, and adjusted EBITDA surpassed the high end by $8.8 million.
Paymentus now expects full-year revenue of $1.443 billion to $1.458 billion, with both ends raised by $18 million. The company also lifted its contribution-profit forecast to $460 million to $465 million and adjusted EBITDA guidance to $175 million to $185 million.
Free cash flow rose 73.7% to $39.0 million in the quarter, though first-half free cash flow declined 5.7% to $59.9 million, leaving the stronger quarterly conversion to carry into the raised outlook.