NEW YORK, March 3, 2025 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Flywire Corporation ("Flywire" or the "Company") (NASDAQ: FLYW). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.The investigation concerns whether Flywire and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. [Click here for information about joining the class action] On February 25, 2025, ...

The FinTech IPO Index was awash in a sea of red this past week, with nary a positive showing to be found. Earnings were met, by and large, with dissatisfaction, as investors sent shares down by double digits in many cases, even when results topped expectations or management’s projections. The index slid by 6.2%.Flywire Leads Declining StocksFlywire led to the downside, as shares sank nearly 42%. The firm said this week that  revenue increased 17% to $117.6 million in the fourth quarter of 2024, and the numb ...

NEW YORK, Feb. 27, 2025 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP is investigating potential claims against Flywire Corporation (“Flywire” or the “Company”) (NASDAQ:FLYW). The investigation concerns whether Flywire and/or certain of its officers have violated the federal securities laws and/or engaged in other unlawful business practices. [LEARN MORE ABOUT THE INVESTIGATION] On February 25, 2025, after market hours, Flywire released its fourth quarter 2024 financial results, missing consensus ...

If you like to see more ideas, please subscribe to the premium service "Value in Corporate Events" here and try the free trial. In this service we cover major earnings events, M&A, IPOs and other significant corporate events with actionable ideas. Furthermore, we provide coverage of situations and names on request!When Flywire (NASDAQ: FLYW ) went public in the spring of 2021, I concluded that I was not flying along with the story. Fast forwarding nearly four years in time, shares have seen huge losses, vas ...

U.S. stock futures were higher this morning, with the Dow futures gaining around 100 points on Wednesday.Shares of Flywire Corporation FLYW fell sharply in today's pre-market trading after the company reported worse-than-expected quarterly financial results.Flywire reported quarterly losses of $(0.12) per share which missed the analyst consensus estimate of $(0.01) per share. The company reported quarterly sales of $117.600 million which missed the analyst consensus estimate of $118.917 million.Flywire shar ...

Financial Data and Key Metrics Changes - Revenue less ancillary services grew by 17.4% year-over-year to $112.8 million in Q4 2024, which was lower than the guidance midpoint by approximately $8 million primarily due to macro factors in Canada and foreign exchange (FX) [47][48] - Adjusted EBITDA increased to $16.7 million for the quarter, compared to $7.7 million in Q4 2023, with adjusted EBITDA margin expanding nearly 700 basis points year-over-year [52][53] - GAAP net income reflected a loss of $15.9 million primarily due to a one-time non-cash foreign exchange loss of $14 million on intercompany loans [56] Business Line Data and Key Metrics Changes - The travel vertical grew organically more than 50% in 2024, becoming the second largest vertical, contributing 13% of total revenue, up from 7% two years ago [34] - The education vertical in EMEA and the UK saw over 50% year-over-year revenue growth, despite headwinds in Canada and Australia [24][30] - The healthcare vertical is expected to start growing later in 2025 as a new large client goes live with Flywire's products [40][66] Market Data and Key Metrics Changes - Canadian higher education revenue was down over 50% year-over-year, resulting in a nine percentage points headwind to growth in Q4 [48] - The U.S. market saw a 10% decline in F-1 visa issuance, contributing to slower growth expectations [121] - The company anticipates revenue in Canada and Australia to be down over 30% year-over-year due to recent policy changes [64][66] Company Strategy and Development Direction - The company announced the acquisition of Sertifi to enhance its travel vertical and streamline operations, aiming to monetize several billion dollars of payment volume [15][16] - A comprehensive operational and portfolio review is underway to optimize investments across geographies, products, and verticals [18][19] - The company is focusing on product innovation, driving productivity, and building a high-performance culture as part of its 2025 priorities [42][45] Management's Comments on Operating Environment and Future Outlook - Management acknowledged significant macro revenue headwinds, particularly from student visa policy changes in Canada, but expressed confidence in navigating these challenges [9][12] - The company expects continued visa policy restrictions in 2025 but is taking steps to identify and execute opportunities within its control [13][14] - Management remains optimistic about the long-term demand for international education and the potential for recovery in student mobility [30][114] Other Important Information - The restructuring plan announced will affect approximately 10% of the workforce, with expected charges of $7 million to $9 million primarily in severance payments [54][56] - The company has repurchased 2.3 million shares for approximately $44 million as part of its buyback program [58] Q&A Session Summary Question: Can you talk about the NRR? - Management indicated that NRR was at 114% in 2024, with expectations for it to be below that in 2025 due to visa dynamics in Canada and Australia [72] Question: Why is the portfolio review happening now? - Management stated that ongoing policy restrictions prompted the need for an operational and strategic review to control internal factors [76][77] Question: What is the impact of the SDS on Canada? - Management explained that the SDS program's elimination has led to significant demand destruction, affecting overall student volume and payments [80][82] Question: What is the outlook for education markets outside Canada and Australia? - Management noted strong performance in the UK and EMEA, with growth opportunities in APAC and LATAM, despite challenges in Canada and Australia [100][102] Question: How is the company addressing the softening visa trends in the U.S.? - Management highlighted a 10% decline in F-1 visa issuance and emphasized ongoing efforts to add new clients and differentiate from competitors [121][124] Question: What is the strategic focus of the company? - Management confirmed that the review includes optimizing investments across verticals and geographies, but they remain committed to all four verticals [127][128]

Flywire Corporation (NASDAQ:FLYW) Q4 2024 Earnings Call Transcript February 25, 2025 5:00 PM ET Company Participants Masha Kahn - Investor Relations Mike Massaro - Chief Executive Officer and Director Rob Orgel - President and Chief Operating Officer Cosmin Pitigoi - Chief Financial Officer Conference Call Participants Cris Kennedy - William Blair Andrew Schmidt - Citi Tien Huang - JPMorgan Kenneth Suchoski - Autonomous Timothy Chiodo - UBS Will Nance - Goldman Sachs Darrin Peller - Wolfe Research Nate Sven ...

Financial Operations - The company automates and streamlines the accounts receivable process, enhancing efficiency from invoice to receipt and reconciliation [66]. - The company employs in-house currency hedging algorithms and non-deliverable forward foreign currency contracts to mitigate foreign exchange volatility, typically holding short-term exposure of 1 to 4 days [66]. - The company’s payments platform supports real-time transaction processing, crucial for timely enrollment in education, leveraging AWS for cloud redundancy [78]. - The company operates a next-gen payments platform that supports complex billing and payment processes, enhancing user experience through a personalization engine leveraging AI and ML technologies [76]. - The company integrates social impact initiatives into its business, focusing on improving access to education and supporting local communities [123]. Compliance and Risk Management - The company maintains a dedicated compliance and risk management function, ensuring adherence to various regulatory standards including AML and CFT [79]. - The company must adhere to U.S. consumer finance laws, including the Truth in Lending Act, which may impose disclosure obligations on its clients [98]. - Flywire is subject to the Electronic Fund Transfer Act, which mandates disclosure and error resolution obligations for electronic fund transfers [99]. - Compliance with card network rules is critical, as non-compliance could lead to suspension or termination of registration with networks like Visa and Mastercard [103]. - The company faces potential fines and penalties for violations of the General Data Protection Regulation (GDPR), which imposes strict obligations on personal data processing [110]. - Recent legal developments regarding data transfers from the U.K. and EEA to the U.S. have created compliance uncertainty, particularly following the invalidation of the Privacy Shield [111]. - The Amended Act on Protection of Personal Information in Japan, effective April 1, 2022, introduces new requirements for transferring personal data outside Japan [113]. - The company is required to comply with various consumer finance and protection laws, including the Truth in Lending Act and the Fair Credit Reporting Act [98]. - Flywire's business may be subject to increased scrutiny if it expands or changes its solutions, potentially bringing it under the jurisdiction of the Consumer Financial Protection Bureau [99]. - Non-compliance with the PCI DSS could lead to significant operational disruptions and financial penalties for Flywire [104]. - The company is subject to the National Automated Clearing House Association (NACHA) operating rules, which impose obligations on Flywire and its partner financial institutions [106]. - Recent legal developments regarding data transfers from the U.K. and EEA could subject Flywire to fines and restructuring costs if compliance is not maintained [112]. Employee and Organizational Structure - As of December 31, 2024, the company has approximately 1,250 full-time employees and contractors, referred to as FlyMates [118]. - 35% of FlyMates are located in the Americas, 40% in Europe and the Middle East, and 25% in Asia-Pacific, representing over 50 nationalities and 40 spoken languages [119]. - In 2024, FlyMates spent more than 6,500 hours on company-sponsored career development and training programs [127]. - Flywire has not experienced any work stoppages and considers its relations with FlyMates to be good [120]. - Flywire's employees represent over 50 nationalities and over 40 spoken languages, promoting diversity and inclusion [127]. Technology and Innovation - The company has developed a modern technology stack and cloud-native infrastructure to address complex product implementation challenges, enhancing scalability and reliability [74]. - The company’s technology stack includes a public API that enhances integration capabilities, significantly reducing time to realize advantages from its solutions [77]. - The company has developed a public API that enhances scalability and execution of growth strategies, allowing organizations of all sizes to integrate easily with its payments platform [77]. - The company utilizes advanced technology to mitigate transaction-level risks, including fraud and money laundering, through continuous monitoring and analysis of payment activities [81]. - The company has a dedicated risk and security team led by a Chief Information Security Officer, focusing on risk reduction and information protection excellence [82]. Market Strategy - The company has a strong dollar-based net retention rate, driven by regional sales teams across the U.S., Canada, Latin America, Europe, and Asia Pacific [70]. - The company follows a "land-and-expand" strategy, successfully cross-selling and up-selling solutions to existing clients, leading to significant revenue generation with minimal acquisition costs [72]. - The company’s go-to-market strategy emphasizes a direct sales channel, regional expertise, and strong client management to drive sales success [70]. - Flywire has established channel partnerships with financial institutions and technology providers, enhancing its market reach [73]. - The company competes against legacy payment methods and integrated payment providers, addressing issues such as poor user experiences and limited service offerings [83]. Environmental, Social, and Governance (ESG) - Flywire's ESG strategy aligns with global best practices, including metrics set forth by the Sustainability Accounting Standards Boards (SASB) and the Global Reporting Initiative (GRI) [124]. - The company conducts an annual greenhouse gas emissions audit to reduce carbon-intensive activities and improve energy efficiencies [127]. - The company has established a cross-functional task force to oversee ESG initiatives, supported by Co-Executive Sponsors [127]. - Flywire's social impact initiatives include a corporate matching program to amplify employee support for non-profits [127]. - Flywire's governance practices include a Code of Conduct and mandatory training on various compliance topics [127].

Core Insights - Flywire reported revenue of $112.8 million for the quarter ended December 2024, reflecting a year-over-year increase of 17.4% but falling short of the Zacks Consensus Estimate of $120.14 million by 6.11% [1] - The company's EPS was -$0.12, a decline from $0.01 in the same quarter last year, resulting in an EPS surprise of -1100.00% compared to the consensus estimate of -$0.01 [1] Financial Performance Metrics - Total Payment Volume reached $6.90 billion, exceeding the average estimate of $6.57 billion from four analysts [4] - Revenue from transactions was reported at $95.30 million, below the average estimate of $105.31 million from three analysts, marking a year-over-year increase of 16.4% [4] - Revenue less ancillary services from transactions was $95 million, compared to the average estimate of $103.15 million, showing a year-over-year change of 16.6% [4] - Revenue less ancillary services from platform and other revenues was $17.80 million, surpassing the average estimate of $16.86 million, with a year-over-year increase of 21.9% [4] - Revenue from platform and other revenues was $22.30 million, exceeding the average estimate of $18.42 million, representing a year-over-year change of 19.9% [4] Stock Performance - Flywire's shares have returned -7.8% over the past month, compared to a -1.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Company Performance - Flywire reported a quarterly loss of $0.12 per share, missing the Zacks Consensus Estimate of a loss of $0.01, compared to earnings of $0.01 per share a year ago, representing an earnings surprise of -1,100% [1] - The company posted revenues of $112.8 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 6.11%, and showing an increase from year-ago revenues of $96.1 million [2] - Over the last four quarters, Flywire has surpassed consensus EPS estimates just once, while it has topped consensus revenue estimates three times [2] Stock Outlook - Flywire shares have lost about 16% since the beginning of the year, contrasting with the S&P 500's gain of 1.7% [3] - The current consensus EPS estimate for the coming quarter is $0.01 on revenues of $134.67 million, and $0.25 on revenues of $590.35 million for the current fiscal year [7] - The estimate revisions trend for Flywire is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Industry Context - The Internet - Software industry, to which Flywire belongs, is currently in the top 28% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by a factor of more than 2 to 1 [8]