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 student visa policy headwinds.

• Announced the acquisition of Invoiced, an AR automation SaaS platform, to accelerate B2B growth and deepen AR workflow integration.

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

• Over 200 new clients added in Q2, with expanded partnerships and product innovation, including with HDFC by Credila in India.

• Diversified revenue streams across education, travel, healthcare, and B2B, with travel now the second-largest vertical.

Financial highlights

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

• Adjusted gross profit was $63.4M (adjusted gross margin 63.5%), up from $50.5M; adjusted EBITDA improved to $5.8M, with a 593 bps margin expansion.

• Net loss for Q2 was $13.9M, improving from $16.8M year-over-year, impacted by higher tax provision.

• Gross margin rose to 59.7% from 57.5% year-over-year.

• Total payment volume reached $4.9B, up 19% year-over-year.

Outlook and guidance

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

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

• Canada expected to be a $30M+ headwind to full-year revenue, with recapture assumptions removed due to uncertainty.

• Guidance assumes continued Canadian headwinds and FX rates as of June 30, 2024.

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