Flywire Raises Outlook as Payment Volume Growth Accelerates
Second-quarter revenue reached $167.7 million, up 27.2% from a year earlier.
Flywire (FLYW), a payments software company, raised its full-year growth outlook after payment-volume growth accelerated in the second quarter while revenue growth moderated.
Total payment volume rose 38.2% to $8.2 billion, accelerating from 36.5% growth in the first quarter. Revenue Less Ancillary Services grew 28.5%, down from 43.0%, leaving revenue growth trailing the expansion in transaction volume.
Revenue growth slowed from 41.0% in the prior quarter, and revenue declined 10.8% sequentially. Flywire recorded a net loss of $8.1 million, compared with net income of $12.5 million in the first quarter, though the loss narrowed from $12.0 million a year earlier.
Adjusted gross profit increased 19.0% to $92.7 million, while adjusted gross margin fell to 56.6% from 61.1% a year earlier. Adjusted EBITDA rose 44.5% to $24.0 million, and its margin expanded about 160 basis points from the year-earlier quarter to 14.6%.
Client signings exceeded 200 for a second consecutive quarter and spanned 45 countries across all four verticals. Education revenue outside Flywire's four largest markets grew more than 30%, and about two-thirds of new education clients came from outside those markets.
Artificial-intelligence initiatives allowed customers to resolve 44.7% of support inquiries without an agent and reduced handling time and cost per contact by 30%. First-half contact volume increased about 19% while the support team shrank 2%.
The company now expects full-year FX-neutral Revenue Less Ancillary Services growth of 21% to 27%, a 300-basis-point increase at the midpoint after a similar increase following the first quarter. It expects adjusted EBITDA-margin expansion of 200 to 400 basis points. For the third quarter, Flywire projects FX-neutral growth of 16% to 22% and margin expansion of 100 to 300 basis points.
Flywire repurchased about 3.1 million shares for approximately $49 million during the quarter, leaving about $123 million authorized. The total included a direct purchase of roughly 1.87 million non-voting shares for about $29 million, which retired all outstanding non-voting common stock.