Flywire (FLYW) Q4 2024 earnings summary

Executive summary

• FY 2024 revenue less ancillary services grew 24% to $474.2M, with adjusted EBITDA margin up 540 basis points year-over-year, despite macro headwinds, especially in education due to student visa policy changes in Canada and Australia.

• Q4 2024 revenue reached $117.6M, up 17% year-over-year, with a net loss of $15.9M, mainly due to a $14M non-cash FX loss on intercompany loans.

• Over 800 new clients were added in 2024, with total payment volume for FY 2024 at $29.7B, up 23.6% year-over-year.

• Strategic acquisitions included Sertifi (travel) and Invoiced (B2B), expanding capabilities and market reach; Sertifi expected to accelerate growth in the Travel vertical.

• A restructuring was announced, affecting about 10% of the workforce, to drive efficiency and reinvest in high-priority initiatives.

Financial highlights

• Q4 2024 revenue less ancillary services was $112.8M, up 17.4% year-over-year, with adjusted EBITDA of $16.7M and margin expansion of 680 basis points.

• FY 2024 adjusted gross profit reached $312.8M, up 66% year-over-year, with a 66.0% adjusted gross margin.

• FY 2024 adjusted EBITDA was $77.9M, up 66% from 2023, and net margin for FY 2024 was 0.6%.

• GAAP net loss for Q4 was $15.9M, mainly due to FX losses; full-year GAAP net income remained positive despite $12M in FX losses.

• Corporate cash resources at year-end 2024 were $495.2M, with strong liquidity and $500M+ pro forma cash and debt capacity post-Sertifi acquisition.

Outlook and guidance

• FY 2025 FX-neutral revenue less ancillary services growth guidance is 10%-14% year-over-year, excluding Sertifi, with a 3-point FX headwind expected.

• Sertifi is expected to contribute $30-$40M in revenue and have a flat to slightly positive effect on adjusted EBITDA in 2025.

• Adjusted EBITDA margin expansion of 200-400 basis points targeted for 2025, excluding Sertifi.

• Canada and Australia revenues expected to decline over 30% year-over-year in 2025 due to visa policy changes.

• Q1 2025 FX-neutral revenue growth expected at 11%-14% year-over-year, with 250 basis points FX headwind.