Flywire (FLYW) Stephens 26th Annual Investment Conference | NASH2024 summary

Business overview and differentiation

• Operates at the intersection of software and payments, focusing on education, healthcare, travel, and B2B verticals.

• Differentiates by integrating payment processing with backend reconciliation and ERP systems.

• Global presence in 40 countries, serving 4,000 clients with 1,300 employees.

• Ecosystem includes partnerships with banks and ERP providers.

Education vertical: market dynamics and outlook

• International student demand remains strong long-term, despite short-term pressures from immigration policies.

• Canada imposed a cap on international students, causing a $30M revenue headwind and flat revenue outlook for next year.

• U.K. and U.S. maintain balanced policies, with the U.S. seen as an opportunity for growth.

• Revenue from Canada is expected to remain flat year-over-year due to ongoing political and demand challenges.

Competitive landscape and client expansion

• Education payments market is fragmented, with few competitors able to integrate payments with university systems.

• U.S. market dominated by a few incumbents; international market is fragmented with many homegrown solutions.

• Significant land-and-expand opportunity exists, especially in the U.S., where only 10% of clients use the full domestic suite.

• Net revenue retention (NRR) remains above 120% due to cross-sell, product expansion, and high client retention.