38 slides from Flywire Corporation - Voting's earnings presentation, Feb 27, 2024
Slide 1: Q4 2023 Earnings supplement
Q4 2023 Earnings supplement February 27, 2024
Slide 2: Disclosures
Disclosures This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this presentation, in
Slide 3: Our mission is to deliver the most important and complex payments
Execution Fulfillment Our mission is to deliver the most important and complex payments 3
Slide 4: Q4 2023 performance
Q4 2023 performance
Slide 5: GAAP financial highlights Q4 2023
GAAP financial highlights Q4 2023 $100.5 M 61.5% $1.3M Revenue Gross Margin Net Income 5
Slide 6: Key operating metrics (Non-GAAP) Q4 2023
Key operating metrics (Non-GAAP) Q4 2023 $5.4B $96.1M $63.5M $7.7M +33%1 +43%1 + 43%1 + 692%1 Total Revenue Less Adjusted Adjusted payment Ancillary Gross Profit2 EBITDA volume Services 1. Represents Y-o-Y Growth as compared to Q4 2022. 2. Prior year Adjusted Gross Profit has been recast to align wi
Slide 7: FY 2023 performance
FY 2023 performance
Slide 8: GAAP financial highlights FY 2023
GAAP financial highlights FY 2023 $403.1M 61.4% $(8.6)M Revenue Gross Margin Net Loss 8
Slide 9: Key operating metrics (Non-GAAP) FY 2023
Key operating metrics (Non-GAAP) FY 2023 $24.0B $381.5M $254.1M $42.0M +33%1 +43%1 + 40%1 + 183%1 Total Revenue Less Adjusted Adjusted payment Ancillary Gross Profit2 EBITDA volume Services 1. Represents Y-o-Y Growth as compared to FY 2022. 2. Prior year Adjusted Gross Profit has been recast to alig
Slide 10: Business update
Business update
Slide 11: 2023 Business highlights
2023 Business highlights Strong overall revenue less Adj. EBITDA expanded 700+ New clients across ancillary services growth of by 546 bps YoY as a % of our verticals +43% YoY Revenue Less Ancillary Services [Add Image]S tudy Tight integrations with Further strengthening our Continued strong executio
Slide 12: Our growth is underpinned by large TAMs
Our growth is underpinned by large TAMs* Education Healthcare Travel B2B $660B TAM(1) $500B TAM(1) $530B TAM(1) $10T TAM(1) 7.4% 4.6% 7.9% 20.4% Annual growth(2) Annual growth(2) Annual growth(2) Annual growth(2) of international out of pocket of luxury of global student market healthcare expenses t
Slide 13: We increase TAM penetration through key initiatives
We increase TAM penetration through key initiatives Education Healthcare Travel B2B $660B TAM $500B TAM $530B TAM $10T TAM ● Best-in-class, broadest ● Strong channel partnerships ● New geographies ● New ecosystem integrations partnerships +>40 others ● Prioritization of key sub- ● Deep agent solutio
Slide 14: Education spotlight: Multiple levers to pull to sustain growth in education
Education spotlight: Multiple levers to pull to sustain growth in education New client Geographic Product M&A acquisition expansion Expansion ✔650+ total new ✔ 10 new markets ✔Admissions software clients added in 2022 opened since 2021 for & top of funnel & 2023 signing education ✔Agent portal adopt
Slide 15: Education spotlight: Plenty of runway for growth
Education spotlight: Plenty of runway for growth Progress with Higher-Ed Institutions Progress with Higher-Ed Students ~18K ~220M ~1,500 ~2M ~1,250 ~1M Analyst Day 2023 Total Higher-Ed Analyst Day 2023* Total number of 2022 Institutions 2022* higher-ed students(1) 8% Penetration of Higher-Ed Institu
Slide 16: Education spotlight: software drives value in payments
Education spotlight: software Continuum of software solutions drives value SFS - Accounts in payments Receivable Solution Flywire Payment Enablement Platform Flywire offers a seamless Client leverages Flywire“full suite” (Student Client leverages Flywire Advantage consumer experience, Financial Soft
Slide 17: Education spotlight: PeopleSoft expertise
Flywire has built two very robust integrations with PeopleSoft to Education support Flywire's Student Financial Software & Payments Enablement Platform spotlight: PeopleSoft expertise Deep experience working with PeopleSoft across higher education Since 2017 Flywire has maintained Oracle Gold Partne
Slide 18: Education spotlight: Ellucian expertise
Flywire has built multiple robust integrations with Banner, Colleague Education & Recruit to support Flywire's Student Financial Software & Payments Enablement Platform spotlight: Ellucian expertise Deep experience working with ellucian across higher education Silver level partner Flywire has multip
Slide 19: Strength via increasingly global & diversified revenue
Strength via increasingly global & diversified revenue Our education businesses grew in the U.S. and internationally as we continued to expand with universities, colleges, and other education sectors, we expanded our solution set, and added domestic payments in more countries. Travel and B2B grew ra
Slide 20: Monetization spotlight: Strong spreads on our transaction volume
Monetization spotlight: Strong spreads on our transaction volume $6BN E ● Spreads +/- 15 basis points from average over two $4BN E years E T ● Monetization Rate and Adjusted T Gross Margins $2BN T E T driven by seasonality of payment type and $0 vertical mix Monetization Rate Processing Costs Transa
Slide 21: Growth algorithm
Growth algorithm
Slide 22: Flywire's growth algorithm
Flywire’s growth algorithm We continue to expect strong revenue growth in the medium term $Ms & growing Mid-single digits % Mid-single digits % 120%+ NRR Prior FY Existing client Ramp of New clients Payer Current FY Revenue growth clients signed signed in Services revenue in prior year current year
Slide 23: NRR is core to Flywire's growth
NRR is core to Flywire’s growth Multiple land-and-expand opportunities contribute to NRR Additional segments within clients (e.g,. additional hospitals, school programs, subsidiaries) 125% Geographic expansion 2023 NRR New product modules Expanding our payment network Secular growth Consistent with
Slide 24: Our existing clients drive NRR & revenue growth
Our existing clients drive NRR & revenue growth 2023 NRR is 125% New and legacy clients expand over time to drive long-term strong NRR 1.Represents revenue less ancillary services (RLAS) 2.Includes RLAS contribution from WPM clients integrated with Flywire's cross border education solution 3.Does no
Slide 25: Sales team's 2023 productivity supports 2024 objectives
Sales team’s 2023 productivity supports 2024 objectives Sales teams expanded across verticals and geographies 700+ clients Sales ramp time improvement of more than 30% from start date to first deal signed signed 2023 Relationship managers focused on driving adoption and best practices Clients signed
Slide 26: Key areas of new client acquisition for 2024
Key areas of new client acquisition for 2024 Making investments that are expected to benefit multiple verticals & opportunities Doubling down on Strategic payables successful G2M Increasing travel and education vertical Investments with high ROI payables, including commissions, Education Agent busin
Slide 27: Payer Services: Spotlight on Australian insurance
Payer Services: Spotlight on Australian insurance Insurance explained: OSHC / OVHC Insurance1 is a requirement of all international students and vocational worker applicants as part of Australia’s visa application process >$10M Today’s offering: Flywire refers sales of policies by the in 2023 top 6
Slide 28: Financial outlook
Financial outlook
Slide 29: Q1 2024 outlook
Q1 2024 outlook* $106 – $111M $9 – $11M Revenue Less Ancillary Adjusted Services EBITDA1 1. Flywire has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net income (loss) or to forecasted GAAP income (loss) before income taxes within this presentation becau
Slide 30: FY 2024 outlook
FY 2024 outlook* $483 – 509M $65 – 76M Revenue Less Ancillary Adjusted Services EBITDA1 1. Flywire has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net income (loss) or to forecasted GAAP income (loss) before income taxes within this presentation becaus
Slide 31: Appendix
Appendix
Slide 32: Revenue Less Ancillary Services at constant currency
Revenue Less Ancillary Services at constant currency* 32 $USD in Millions
Slide 33: Revenue Less Ancillary Services & Adjusted Gross Margin Reconciliations
Revenue Less Ancillary Services & Adjusted Gross Margin Reconciliations * *Beginning with the quarter ended December 31, 2022, we have excluded depreciation and amortization from the calculation of our adjusted gross profit, which we believe enhances the understanding of the Company’s operating perf
Slide 34: Revenue disaggregation by revenue type
Revenue disaggregation by revenue type 34 $USD in Millions
Slide 35: Net Income (Loss) to Adjusted EBITDA reconciliation
Net Income (Loss) to Adjusted EBITDA reconciliation 35 $USD in Millions
Slide 36: Adjusted EBITDA Margin reconciliation
Adjusted EBITDA Margin reconciliation Adjusted EBITDA Margin Three Months Ended Year Ended December 31, Growth December 31, Growth 2023 2022 Rate 2023 2022 Rate Revenue (A) $ 100.5 $ 73.1 $ 27.4 $ 403.1 $ 289.4 $ 113.7 Revenue less ancillary services (B) 96.1 67.4 28.7 381.5 267.1 114.4 EBITDA (C) 2
Slide 37: Reconciliation of Revenue to Revenue Less Ancillary Services Guidance
Reconciliation of Revenue to Revenue Less Ancillary Services Guidance 37 $USD in Millions
Slide 38: Source appendix
Source appendix Slide 12 1. For TAM calculations: a. Education: Based on net household payments to educational institutions in OECD countries in 2020 according to the Organisation for Economic Co-operation and Development (OECD) and payments made to private education institutions in Southeast Asia i