Flywire (FLYW) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 22% year-over-year to $103.7M, with revenue less ancillary services up 26% to $99.9M and strong margin expansion, despite Canadian education market headwinds.

• Total payment volume increased 19% year-over-year to $4.9B, driven by client and vertical expansion.

• Announced and authorized a $150M share repurchase program, reflecting confidence in liquidity and long-term prospects.

• Acquired Invoiced, an AR automation SaaS platform, to accelerate B2B growth and enhance product suite.

• Over 200 new clients added, with continued diversification across geographies and verticals, including partnerships in India.

Financial highlights

• Q2 2024 revenue less ancillary services: $99.9M, up 26% year-over-year; total revenue: $103.7M, up 22%.

• Adjusted gross profit: $63.4M (63.5% margin), up from $50.5M; gross margin rose to 59.7% from 57.5%.

• Adjusted EBITDA improved to $5.8M, up $5.9M year-over-year, with margin expanding nearly 600 basis points.

• Net loss narrowed to $13.9M from $16.8M year-over-year, impacted by higher tax provision.

• Ended Q2 with $539.3M in cash and equivalents, $571M in liquidity, and no long-term debt.

Outlook and guidance

• FY 2024 revenue less ancillary services expected at $469M–$485M; adjusted EBITDA guidance raised to $72M–$80M, with 490 bps margin improvement expected.

• Q3 2024 revenue guidance: $141M–$151M; adjusted EBITDA: $37M–$43M.

• Canadian market headwind now expected to reduce full-year revenue by over $30M.

• Guidance assumes continued Canadian headwinds and current FX rates.

• Sufficient liquidity to support growth initiatives for at least the next 12 months.