Paymentus (PAY) investor relations material

Business overview and market position

• Provides cloud-based bill payment solutions for non-discretionary household bills, disrupting legacy bank-dominated models.

• Shifted market share from banks (75-80%) to billing companies (now 20-25% for banks).

• Achieved rapid growth: 25x in 10 years, 4x in 5 years, surpassing $1.2 billion in revenue last year.

• Maintains a focus on both growth and expanding profitability, targeting 20% top-line and 20-30% EBITDA CAGR.

• Holds approximately 4.3% market share, up from 3.6% the previous year, with significant room for expansion.

Strategic execution and growth drivers

• Operates on a two-year strategic horizon, executing prior strategies while setting new ones for 2026 and beyond.

• Growth vectors include new biller implementations, same-store sales, enterprise go-lives, and the IPN network.

• Platform resonates with both mid-market and enterprise clients, now serving over 25 Fortune 500 companies.

• Diversified customer base across all verticals, including utilities, insurance, government, telecom, and healthcare.

• Maintains high customer renewal rates and long-term contracts (3-5 years), supporting sustained growth.

Competitive landscape and technology

• Built platform purity with a single code base, enabling scalable, configurable solutions for diverse clients.

• Competitive advantage stems from technology benefits and a strong reputation in hard-to-serve verticals.

• IPN network acts as a value unlocker, connecting billing companies and banks for real-time payments.

• Embraces AI as an assistive technology for efficiency and growth, integrating it across operations.

• Platform offered at no cost to customers, with AI expected to enhance both revenue and expense efficiencies.