Slide 1: Investor Presentation August 2023
Investor Presentation August 2023
Slide 2: Disclosures
Disclosures This presentation includes forward-looking statements that involve risks and uncertainties. All statements other than statements of historical facts contained in this presentation, including statements regarding Flywire’s ability to successfully implement Flywire’s business plan, future
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: Flywire at a glance: network, clients and key metrics
10+ Years to Build Payment 1,000+ Network 3,500+ Global Flywire clients Global FlyMates $20.9B $26M 2Q 2023 LTM Adj. EBITDA1 $325M 2Q 2023 LTM Total Payment Volume 2Q 2023 LTM Revenue Less Ancillary Services1 4 1. For the year ended June 30, 2023. Revenue less ancillary services and Adjusted EBITDA
Slide 5: Strong momentum since IPO
Strong momentum since IPO Total Payment Volume Revenue Less Ancillary Services Adjusted EBITDA ($ in billions) ($ in millions) ($ in millions) Enhanced proposition ✔ Across more than 40 geographies 325 ✔ Over 80 ecosystem integrations 20.9 +16% 26.1 +52% +48% Strong client wins 19.3 ✔ 1,200+ new cli
Slide 6: Our strategy
Our strategy Vertical Expertise 1 Strong “North Star” Thesis 2 Differentiated Core Assets 3 in Big Markets Software drives value in payments + The Flywire Advantage + Deep vertical expertise 6
Slide 7: Servicing verticals with substantial TAMs
Servicing verticals with substantial TAMs... $11.7 TN TAM EDU TAM Healthcare TAM Travel TAM B2B TAM $660BN (1) $500BN (1) $530BN (1) $10TN (1) 7 For citations, please refer to the appendix at the end of the presentation
Slide 8: …with strong secular trends underpinning growth
…with strong secular trends underpinning growth Strong & resilient sectors EDU TAM Healthcare TAM Travel TAM B2B TAM 7.4% 4.6% 7.9% 20.4% Annual Growth Annual Growth Annual Growth Annual Growth Of international student Out of pocket Of luxury Of global e-invoicing(4) market (1) healthcare expenses (
Slide 9: How our Flywire Advantage works
How our Flywire Advantage works 9
Slide 10: Our next-gen payments platform supports the entire lifecycle of a cross-border transaction
Our next-gen payments platform supports the entire lifecycle of a cross-border transaction Settling in 240+ Australian countries & 140+ Traveler currencies Local Payment Methods: Credit/Debit Bank Transfer Japanese Online Methods Local Local Business API and Embedded Solutions | Enhanced Invoicing a
Slide 11: Our proprietary global payment network provides clients with a unique set of payment methods
Our proprietary global payment network provides clients with a unique set of payment methods 240+ countries and territories 140+ global currencies 1,502 currency pairs ~4,000 unique corridors 1111 Choice of Local Payment Methods | Domestic and International | Optimized Transaction Routing | Global S
Slide 12: We go beyond payments with vertical-specific software backed by deep industry expertise
We go beyond payments with vertical-specific software backed by deep industry expertise Personalized engagement with interactive customer experience 12
Slide 13: Powerful platform designed to solve complex payment flows
Powerful platform designed to solve complex payment flows Real Time Insights Sophisticated Security & Complex Network AI/ML Integrations Pricing Compliance Payment Flows Resiliency Build Your Own Education Healthcare Travel B2B Public API Omnichannel Payment plans E-comm Personalization Multi-party
Slide 14: Why we win
Why we win at *Figures as of May 19, 2022 Education Healthcare Travel B2B Trusted Innovative Modernizing A/R Focus Single-source solution Brand with deep bench of Approach to patient The experience for DMCs, for international and industry experts financial experiences domestic payments accommodation
Slide 15: Expanding the Flywire Advantage
Expanding the Flywire Advantage Yesterday Today Tomorrow Built Flywire Advantage Driving Global Scale Powering Vertical Ecosystems 15
Slide 16: Growth strategies
Growth strategies Grow with Grow with Expand our Expand to Pursue strategic existing new ecosystem new industries, & value- clients clients through channel geographies & enhancing partnerships products acquisitions 124% 165+ 2022 average New clients in Q2 annual dollar- 2023 based net retention rate
Slide 17: Drivers of NRR to grow with existing clients
Growth with existing Drivers of NRR to grow with existing clients clients NRR Drivers Illustrative Example Expanded relationship with CommonSpirit Health, with first go-live with a Functional / Departmental Dignity Health facility (a recent acquisition of CSH). CommonSpirit operates 140 Expansion ho
Slide 18: Steady and diversified client growth
Growth Steady and diversified client growth with new clients No client represented more 3.5K+ than 3% of 2022 revenue less ancillary services 2022 Q2 2023 18 Client count as of period end
Slide 19: Adding new clients
Growth Adding new clients with new clients Education Travel Healthcare Healthcare B2B 19 19
Slide 20: Expand ecosystem through channel partnerships
Expand ecosystem through channel partnerships + Channel Partner Overview Flywire stood out not only for its powerful ● Headquartered in Tokyo, DISCO is one of the leading student payment technology and seamless application solutions for the National / Public university system in Japan, providing mor
Slide 21: Expand to new industries, geographies and products
Expand to new industries, geos & products Overview What I love about the Flywire platform is that it is very easy to use ● Global software leader in digital insights and research technology and comprehensive. You are able to see your payments quickly, ● Founded in 1998 with 18 global and there’s so
Slide 22: Successful track record of accretive M&A
Pursue strategic Successful track record of accretive M&A M&A $30BN of TAM 75% of international students in education in UK Education placed through agents in We will be able agents in Australia; 1M+ students to automate Flywire’s globally Regional & reconciliation of geographic expertise existing b
Slide 23: Financial highlights
Financial highlights 1 Excellent financial performance with strong financial outlook 2 Increasingly global and diversified revenue 3 Steady client growth with high retention 4 Excellent unit economics 5 Solid Adjusted EBITDA generation 6 Disciplined investment approach driving shareholder value 23
Slide 24: Our revenue model
Our revenue model 84% 16% Transaction revenue Platform & usage revenue ● Payment processing fees ● Core platform fees ● % of transaction value tied to ● Invoicing & payment plans payment method ● Subscription fees Based on Total Revenue Less Ancillary Services for Q2 2023. See Appendix for reconcili
Slide 25: Strong track record growing revenues & adj. EBITDA
Strong track record growing revenues & adj. EBITDA Revenue Less Ancillary Services ($ in millions) YoY Growth % 56.4 % 49.2 % 47.5 % 48.3 % 48.6 % 325 297 267 246 219 200 181 165 140 Q2 LTM 2021 Q3 LTM 2021 Q4 LTM 2021 Q1 LTM 2022 Q2 LTM 2022 Q3 LTM 2022 Q4 LTM 2022 Q1 LTM 2023 Q2 LTM 2023 Adjusted
Slide 26: With broad financial performance improvement over time
With broad financial performance improvement over time Total Payment Revenue Less Adjusted Adjusted Volume Ancillary Services Gross Profit EBITDA USD Billions USD Millions USD Millions USD Millions 325 216 26 21 267 23 18 182 +52% +47% +80% +47% 13 181 130 15 8 115 83 6 2020 2021 2022 Q2 LTM 2020 20
Slide 27: With continued momentum in Q2 2023
With continued momentum in Q2 2023 Total Payment Revenue Less Adjusted Adjusted Volume Ancillary Services Gross Profit EBITDA USD Billions USD Millions USD Millions USD Millions 79.5 50.5 +54% +47% 51.5 34.4 4.1 +43% 2.9 (0.1) Q2 2022 Q2 2023 (6.1) 27 Note: Percentages represent year-over-year growt
Slide 28: Why Flywire
Why Flywire Platform, network and Excellent financial software built for scale performance with strong and innovation for financial outlook decades to come Substantial TAMs Disciplined investment with plenty of approach driving room to run shareholder value 28
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Slide 30: Appendix
Flywire Appendix
Slide 31: People & Culture - 2022 ESG Playbook at Flywire
ESG Playbook People & Culture - 2022 at Flywire Social Impact Affordability & Accessibility & Community Engagement Through our software and payments Flywire has long been committed to giving back technology, we provide payers a fast, easy to the communities we serve. Our Foundation way to pay, compl
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 * 33 *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 p
Slide 34: Revenue Disaggregation by Revenue Type
Revenue Disaggregation by Revenue Type 34 $USD in Millions
Slide 35: Net Loss to Adjusted EBITDA Reconciliation
Net Loss to Adjusted EBITDA Reconciliation 35 $USD in Millions
Slide 36: Source Appendix
Source Appendix Slide 9 1. For TAM calculations: 2.7K+* 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