Flywire (FLYW) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $156.8 million, up 27.2% year-over-year, driven by strong payment volume growth across education, travel, B2B, and a return to growth in healthcare, with net income rising to $38.9 million from $10.6 million a year ago.

• Over 200 new clients were added across all four core verticals, with travel slightly outpacing education in new client wins and education remaining the largest vertical.

• The company continues to execute on its strategy of optimizing go-to-market, expanding product advantage, and strengthening its employee community, with growth supported by channel partnerships and strategic acquisitions.

• Recent acquisitions of Invoiced and StudyLink contributed to platform revenue and global expansion, particularly in B2B and Australian education markets.

• Announced a $150 million share repurchase program, with 1.3 million shares repurchased for $23 million 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 29.6% year-over-year.

• Adjusted gross profit was $101.9 million, up 27.2% year-over-year; adjusted EBITDA was $42.2 million, with margin expanding by 429 basis points year-over-year.

• Total payment volume in Q3 was $11.0 billion, up 24% year-over-year.

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

• Cash and equivalents stood at $565.0 million as of September 30, 2024, with no outstanding debt.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $479–$485 million, with total revenue expected between $495–$503 million; adjusted EBITDA outlook increased to $76–$80 million.

• Q4 2024 revenue expected at $118–$129 million, with adjusted EBITDA of $15–$19 million.

• Canada revenue expected to remain flat in 2025 due to immigration policy headwinds; Australia expected to see moderated growth.

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