Flywire (FLYW) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $156.8 million, up 27.2% year-over-year, with net income rising to $38.9 million, supported by strong payment volume growth and a non-recurring tax benefit from the Invoiced acquisition.

• Total payment volume was $11.0 billion, up 24.2% year-over-year, with over 200 new clients added and continued global expansion across all verticals.

• Education remains the largest vertical, with over 1,000 institutions and nearly 2,960 clients, and strong growth in the U.K. and U.S. despite Canadian and Australian headwinds.

• The company continues to execute on its strategy of optimizing go-to-market, expanding product advantage, and strengthening its team, with recent acquisitions accelerating B2B and APAC expansion.

• A $150 million share repurchase program was launched, with $23 million spent in Q3 2024.

Financial highlights

• Q3 2024 revenue was $156.8 million, up 27% year-over-year; revenue less ancillary services was $151.4 million, up 30%.

• Adjusted gross profit was $101.9 million, up 27.2% year-over-year, with adjusted gross margin at 67.3%.

• Adjusted EBITDA was $42.2 million, with margin expanding by 429 basis points year-over-year to 27.9%.

• Net income for Q3 was $38.9 million, including a one-time tax benefit from the Invoiced acquisition.

• Transaction revenue accounted for 85.7% of Q3 revenue; platform and other revenues made up 14.3%.

Outlook and guidance

• Full-year 2024 revenue less ancillary services guidance is $479–$485 million, with adjusted EBITDA of $76–$80 million.

• Q4 2024 revenue less ancillary services expected at $118–$124 million, with adjusted EBITDA of $15–$19 million.

• No recovery expected in Canadian education market for 2025; Australian growth expected to moderate.

• Guidance assumes FX rates as of September 30, 2024.