Paymentus Holdings, Inc. (NYSE:PAY) Q4 2024 Earnings Conference Call March 10, 2025 5:00 PM ET Company Participants David Hanover - Investor Relations Dushyant Sharma - Founder & Chief Executive Officer Sanjay Kalra - Chief Financial Officer Conference Call Participants Dave Koning - Baird Tien-Tsin Huang - JPMorgan John Davis - Raymond James Andrew Bauch - Wells Fargo Matt O'Neill - FT Partners Operator Good day, and welcome to the Fourth Quarter and Full Year 2024 Paymentus Earnings Conference Call. This ...

Paymentus (PAY) Q4 2024 Earnings Call March 10, 2025 11:24 PM ET Company Participants David Hanover - Investor RelationsDushyant Sharma - Founder and Chief Executive OfficerSanjay Kalra - Senior VP, CFO & Principal Accounting OfficerJohn Davis - Managing DirectorAndrew Bauch - Director - Equity ResearchMatthew O'Neill - Managing Director Conference Call Participants David Koning - Senior Research AnalystTien-tsin Huang - Senior Analyst Operator participants are currently in a listen only mode. There will be ...

Paymentus (PAY) came out with quarterly earnings of $0.13 per share, beating the Zacks Consensus Estimate of $0.12 per share. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8.33%. A quarter ago, it was expected that this electronic bill payment services would post earnings of $0.09 per share when it actually produced earnings of $0.15, delivering a surprise of 66.67%.Over the last four quart ...

Business Operations and Strategy - The company operates a proprietary Instant Payment Network® (IPN) that connects tens of thousands of billers, enhancing its reach to millions of consumers globally[25]. - The company aims to expand its market share by enhancing its biller network, which is expected to drive organic growth through increased transaction volume and improved retention rates[29]. - The company utilizes a diversified go-to-market strategy, including direct sales and partnerships with major financial institutions like JPMorgan Chase and U.S. Bank, to deliver its solutions[30]. - The company is committed to addressing inefficiencies in the bill payment process, which are prevalent in legacy systems used by many billers and financial institutions[26]. - The company aims to continue winning new billers and financial institutions by investing in the growth of its IPN and enhancing its value proposition[81]. - The company plans to expand into new channels and industry verticals, focusing on sectors with favorable bill payment characteristics, such as healthcare and insurance[83]. - The company intends to pursue selective strategic acquisitions to enhance its technology and value proposition for billers and partners[86]. Technology and Platform Features - The platform is designed to provide a seamless electronic bill payment experience, leveraging a single code base and Software-as-a-Service (SaaS) infrastructure for rapid deployment of new features[24]. - The company’s platform supports omni-channel payment capabilities, allowing consumers to pay bills through various channels, including mobile, web, and voice assistants[27]. - The platform supports a variety of payment types, including emerging options like PayPal, Venmo, Apple Pay, and Google Pay, which are increasingly important to billers and financial institutions[56]. - The platform's architecture allows for rapid deployment of new features without the need for managing separate software versions, enhancing flexibility for billers and financial institutions[49]. - The company’s platform is scalable and customizable, designed to support transaction growth for billers and financial institutions of all sizes[28]. - The company’s flexible and integrated platform helps billers reduce costs and improve customer satisfaction by automating manual workflows[69]. - The company’s platform is designed to provide a comprehensive omni-channel electronic bill payment experience enhanced by AI and ML technologies[94]. Data Analytics and Consumer Engagement - The company emphasizes the importance of data analytics in improving the electronic bill payment experience, leveraging insights from hundreds of millions of transactions[37]. - The AI-powered analytics engine provides data-driven insights on consumer preferences and behaviors, improving the overall bill payment experience[48]. - The company enables billers to engage consumers through targeted communications, sending hundreds of millions of emails and text messages in 2024[51]. - The company’s technology solutions focus on enhancing consumer engagement through smart notifications and secure communication channels[44]. Financial Performance and Growth - In 2024, the company processed approximately 597 million payments, averaging 1.6 million payments per day[64]. - As of December 2024, approximately 46 million consumers and businesses utilized the platform for bill payments[78]. - The company has made significant investments in its technology platform, which it considers a core differentiator of its business[84]. Regulatory and Compliance - The company is subject to various U.S. and international regulations regarding data privacy and security, which are evolving and increasing in complexity[100]. - The company is subject to various U.S. state and federal laws, including the Telephone Consumer Protection Act and the CAN-SPAM Act, which may impact its operations[103]. - The company has registered as a Payment Service Provider under the Retail Payments Activity Act in Canada, increasing scrutiny of compliance with Canadian payments regulations[104]. - The Consumer Financial Protection Bureau proposed a rule in January 2024 to prohibit non-sufficient funds fees on transactions declined in real time, which may affect the company[104]. - The company is focused on enhancing its AML/BSA compliance and sanctions screening controls due to increasing pressure from partner banks[104]. - The company is subject to evolving laws and regulations related to financial services, privacy, and data protection, which may increase regulatory risks[104]. Workforce and Employment - As of December 31, 2024, the company employed 1,307 full-time employees and a small number of part-time employees[105]. - The company believes it provides significant ongoing career growth opportunities for its employees, supporting recruitment and retention[106]. Foreign Operations and Risks - The company has significant operations outside the United States, particularly in Canada and India, exposing it to foreign currency exchange risks[416]. - The company has not engaged in hedging of foreign currency transactions but may consider it in the future[416]. - The company does not believe that a hypothetical 10% relative change in interest rates would materially impact the value of its cash equivalents or investment portfolio as of December 31, 2024[415].

FOURTH QUARTER 2024 EARNINGS CONFERENCE CALL March 10, 2025 DUSHYANT SHARMA President & CEO SANJAY KALRA CFO EARNINGS REPORT DISCLAIMER This presentation and the accompanying webcast contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All such statements, other than statements of historical facts, are forward-looking statements. Generally, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anti ...

Financial Performance - Fourth quarter revenue reached a record $257.9 million, a year-over-year increase of 56.5% driven by increased billers and transactions[5] - Adjusted EBITDA for the fourth quarter was $27.3 million, representing a 31.6% adjusted EBITDA margin, a 36.9% increase year-over-year[5] - Full year revenue was $871.7 million, an increase of 41.9% year-over-year, also driven by increased billers and transactions[5] - The company processed 166.0 million transactions in Q4 2024, a 33.0% increase year-over-year, and 597.0 million transactions for the full year, a 30.3% increase[5] - Non-GAAP net income for Q4 was $16.3 million, compared to $11.8 million in the prior period, with diluted non-GAAP earnings per share at $0.13 compared to $0.09[5] - Contribution profit for Q4 was $86.2 million, a year-over-year increase of 30.0%[5] - Gross profit for the full year was $238.2 million, an increase of 30.6% year-over-year, with adjusted gross profit at $259.6 million, up 30.4%[5] - Diluted GAAP earnings per share for Q4 was $0.10, compared to $0.07 in the prior period, reflecting overall improved profitability[5] - Revenue for Q4 2024 reached $257,877,000, a 56.5% increase from $164,800,000 in Q4 2023[27] - Gross profit for Q4 2024 was $66,029,000, up 33.4% from $49,492,000 in Q4 2023[27] - Net income for the year ended December 31, 2024, was $44,169,000, representing a 97.9% increase compared to $22,322,000 in 2023[27] - Net income for Q4 2024 was $13,149,000, a 40.5% increase from $9,402,000 in Q4 2023[36] - Adjusted EBITDA for Q4 2024 reached $27,278,000, up 37.0% from $19,925,000 in Q4 2023, with an adjusted EBITDA margin of 31.6% compared to 30.0% in the previous year[36] - Non-GAAP net income after tax adjustments for Q4 2024 was $16,298,000, a 38.5% increase from $11,790,000 in Q4 2023[39] Future Outlook - For fiscal year 2025, the company expects revenue between $1,040 million and $1,060 million, and adjusted EBITDA between $112 million and $116 million[8] - The company ended 2024 with strong bookings and backlog, indicating confidence in delivering solid growth in 2025[2] Cash and Assets - Total current assets increased to $345,641,000 in 2024 from $270,348,000 in 2023, a growth of 28%[29] - Cash and cash equivalents at the end of Q4 2024 were $205,900,000, compared to $179,361,000 at the end of Q4 2023, an increase of 14.8%[31] - Total assets grew to $576,247,000 in 2024 from $504,863,000 in 2023, marking a 14.1% increase[29] - The company reported a net cash provided by operating activities of $27,913,000 for Q4 2024, compared to $24,441,000 in Q4 2023[41] - The total net cash used in investing activities for Q4 2024 was $9,144,000, compared to $8,449,000 in Q4 2023[41] Expenses - Research and development expenses for the year increased to $51,334,000 in 2024 from $44,248,000 in 2023, a rise of 16.8%[27] - Operating expenses for the year totaled $193,313,000, compared to $164,249,000 in 2023, reflecting a 17.7% increase[27] - Operating expenses on a GAAP basis for Q4 2024 were $51,839,000, compared to $40,352,000 in Q4 2023, reflecting a 28.5% increase[38] - Non-GAAP operating expenses for Q4 2024 were $47,283,000, up from $36,706,000 in Q4 2023, indicating a 28.7% increase[38] Stock-Based Compensation - The company experienced a significant increase in stock-based compensation, which rose to $3,431,000 in Q4 2024 from $2,499,000 in Q4 2023[39] Free Cash Flow - Free cash flow for Q4 2024 was $18,951,000, an increase from $15,992,000 in Q4 2023[41]

Core Insights - Paymentus Holdings, Inc. is set to release its fourth-quarter financial results on March 10, with expected earnings of 12 cents per share, an increase from 9 cents per share year-over-year [1] - The company projects quarterly revenue of $222.06 million, up from $164.8 million in the same period last year [1] Financial Performance - On November 12, 2024, Paymentus reported better-than-expected third-quarter results and provided FY24 revenue guidance above estimates [2] - Following the report, Paymentus shares experienced a slight decline of 0.2%, closing at $25.95 [2] Analyst Ratings - Wells Fargo analyst Andrew Bauch maintained an Equal-Weight rating and raised the price target from $27 to $33 [3] - Baird analyst David Koning kept an Outperform rating and increased the price target from $25 to $36 [3] - JP Morgan analyst Tien-Tsin Huang maintained a Neutral rating and raised the price target from $21 to $26 [3]

Group 1 - The notification pertains to an acquisition of voting rights by Ameriprise Financial, Inc. in PayPoint PLC, a UK issuer [1][2] - The threshold for voting rights was crossed on February 14, 2025, with the issuer being notified on February 18, 2025 [2][10] - Ameriprise Financial, Inc. holds 3,137,618 voting rights, representing 4.407% of the total voting rights in PayPoint PLC [2][8] Group 2 - The previous position held by Ameriprise Financial, Inc. was 5.651% of the voting rights, indicating a decrease in holdings [2] - The voting rights are held indirectly, with no direct voting rights reported [2][8] - The chain of controlled undertakings shows that Ameriprise Financial, Inc. has multiple wholly owned subsidiaries, indicating a complex ownership structure [8][9]

Core Viewpoint - Ashford Hospitality Trust has fully paid off its strategic financing, which was crucial for recovery from the COVID pandemic [1][2]. Company Summary - Ashford Hospitality Trust is a real estate investment trust (REIT) that primarily invests in upper upscale, full-service hotels [2]. - The complete elimination of corporate-level debt strengthens the company and aligns with its "GRO AHT" initiative, aimed at maximizing asset performance and increasing shareholder value [2].

Core Viewpoints - PayPoint Group delivered a positive quarter with strong performance from key seasonal businesses, maintaining confidence in meeting FY25 expectations and achieving £100m EBITDA by the end of FY26 [2][3] - The company's resilience, investment in capabilities, and growing opportunities to deliver value-add solutions underpin its confidence in achieving long-term growth targets [3] Shopping Division - Shopping divisional net revenue decreased by 2.0% to £16.1 million, driven by lower consumer spending and a challenging environment for UK consumers [4][11] - PayPoint estate continued to grow, with site growth to 20,092 and enhanced propositions for retailers [4][13] - Card payments net revenue decreased by 5.7% to £7.8 million, with a reduction in the Handepay EVO/Lloyds Cardnet estate to 19,220 as the company transitioned to a new acquirer [13] - Card processed value decreased by 5.9% overall to £1.7 billion, with the Handepay EVO estate down 1.8% and the Lloyds Cardnet estate down 11.4% [13] E-commerce Division - E-commerce divisional net revenue increased strongly by 32.0% to £4.1 million, driven by a 36.8% increase in parcel transactions to 35.8 million [5][12] - Collect+ network increased to 13,930 sites, reflecting strong positioning in Out of Home (OOH) fulfilment and a market shift towards OOH delivery [5][13] - The company is making progress in engaging with Chinese and South Asian marketplaces, with services expected to go live in the final quarter [5] Payments & Banking Division - Payments & Banking divisional net revenue increased by 0.8% to £14.0 million, with underlying net revenue from the MultiPay platform increasing by 4.7% to £1.8 million [6][12] - Local Banking initiatives are progressing, with the first High St bank on track for consumer deposits launch at the end of Q4 FY25 [6] - Over £373 million of consumer deposits have been processed for neobanks through the company's extensive network [6] - The legacy energy sector business remains resilient, with key contract renewals including Scottish Power [6] Love2shop Division - Love2shop divisional net revenue increased by 1.3% to £18.8 million, with billings ahead of last year and a strong pipeline for Q4 FY25 [8][14] - Highstreetvouchers.com billings were 9.2% ahead of plan, with a strategic partnership with InComm Payments delivering an incremental £1.7m of billings [8] - Park Christmas Savings delivered final billings of £162.2m, consistent with the previous year, with early indications for the 2025 prepayments saving season being encouraging [8] Financial Highlights - Group net revenue increased by 1.9% to £53.0 million, driven by strong performances in E-commerce and Love2shop divisions [10] - The Group had net corporate debt of £108.9 million, expected to reduce to below £100 million by 31 March 2025 [15] - An increased interim dividend of 19.4 pence per share was declared, up 2.1% from the prior half year [16] - The Group commenced a three-year share buyback programme, returning at least £20 million to shareholders over the next 12 months [17] Strategic Initiatives - The company is leveraging data and analytics to enhance retailer engagement and identify performance trends in the PayPoint and card merchant networks [4] - New initiatives include the launch of a Merchant App, targeted marketing campaigns, and an AI-driven statement reader to enhance the merchant sales experience [4] - The company is expanding its FMCG pipeline, with consumer brand campaigns planned for the next 6-12 months, and has lent over £16m through its YouLend Business Finance product [4] - The company is working on initiatives with SF Express to enable services in Chinese communities across the UK [5]