44 slides from Flywire Corporation - Voting's earnings presentation, Feb 25, 2025
Slide 1: Q4 2024 Earnings Supplement
Q4 2024 Earnings Supplement February 25, 2025
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 Strategy to Date
Our Strategy to Date 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
Slide 4: Types of Transactions We're Focused On
Types of Transactions We’re Focused On Complexity Cross- High Value (money movement/ Border reconciliation)
Slide 5: Powerful Flywheel
Powerful Flywheel Deep industry integrations Clients Vertical software New products Network Effects Banks Fintech partners Payers Geo expansion Client’s customers
Slide 6: Flywire + Sertifi
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Slide 7: Sertifi is Automating Critical Hospitality Workflows
Sertifi is Automating Critical Hospitality Workflows Company Overview Select Hotel Clients ● Sertifi is a hotel software solution that makes it easy for hotels to automate their entire billing agreement workflow through one single, secure solution across agreements, payments and authorizations ● Histori
Slide 8: Flywire + Sertifi: One Platform, Multiple Solutions
Near & Medium Term Opportunity + ✔ International ✔ Upselling Flywire ✔ Upselling Sertifi Expansion: utilize to Sertifi to Flywire our global team to Customers: upsell Clients: upsell accelerate Sertifi’s our payments the Sertifi into traction abroad solution to Sertifi’s Flywire’s ~1200 independent and c
Slide 9: Flywire Travel Business
$0-60M+ Over $2B Flywire Revenue Since Inception (2019 - 2024) Money Moved (FY 2024) Travel Business 50+% ~60 Started in 2019, our YoY Revenue Growth Member Global (2023-24) Go-to-Market Team Travel vertical has (as of FY 2024) positioned us to become a leader in global ~1200 Clients Across 27 Count
Slide 10: Flywire & Sertifi: Path to Stronger Growth
Flywire & Sertifi: Path to Stronger Growth 1 2 3 4 Accelerate Sertifi’s Capitalize on Accounts Cross-Sell Flywire Accelerate International Footprint Payables Solutions to Receivable Cross-sell SertifiPay Product Expansion Sertifi’s Customer Base opportunity Use Flywire’s Payment Sertifi’s business is Ser
Slide 11: Spotlight: Accommodations Market
Spotlight: Accommodations Market FLYWIRE TODAY FLYWIRE + SERTIFI Hotel Events & Timeshares & Independent Luxury Hotels Catering Services Vacation Clubs Boutique Villas & Properties & Authorizations $11B TAM $8B TAM >$70B TAM >$70B TAM ● Ownership programs ● Exclusive, small-scale ● High-end hotels o
Slide 12: Q4 2024 Performance
Q4 2024 Performance A] f r™ mT 2 \s7 om AY f ™ = ae § foes LJ — LV, a Ct VY iowewtent Nx TT DTV Lites if ed PA aS i = iW sls —_
Slide 13: GAAP Financial Highlights Q4 2024
GAAP Financial Highlights Q4 2024 $117.6 M 63.2 % ($15.9) M* Revenue Gross Margin Net Loss *Q4 includes a $14m FX loss on intercompany loans
Slide 14: Key Operating Metrics (Non-GAAP) Q4 2024
Key Operating Metrics (Non-GAAP) Q4 2024 $6.9B $112.8M $75.6M $16.7M +27.6%1 +17.4%1 + 67.0%2 + 680 bps3 Total Revenue Less Adjusted Adjusted EBITDA payment Ancillary Gross Profit volume Services 1. Represents Y-o-Y Growth as compared to Q4 2023 2. Margins as % of RLAS (Revenue Less Ancillary Service
Slide 15: FY 2024 Performance
FY 2024 Performance
Slide 16: GAAP Financial Highlights FY 2024
GAAP Financial Highlights FY 2024 $492.1 M 66.0 % $2.9 M* Revenue Gross Margin Net Income *2024 includes a $12m FX loss on intercompany loans
Slide 17: Key Operating Metrics (Non-GAAP) FY 2024
Key Operating Metrics (Non-GAAP) FY 2024 $29.7B $474.2M $312.8M $77.9M +23.6%1 +24.3%1 + 66.0%2 + 16.4%2 Total Revenue Less Adjusted Adjusted EBITDA payment Ancillary Gross Profit volume Services 1. Represents Y-o-Y Growth as compared to FY2023. 2. Represents Margins as % of RLAS (Revenue Less Ancill
Slide 18: Strong Spreads on Our Transaction Volumes
Strong Spreads on Our Transaction Volumes Comments ● Spreads broadly stable ● Monetization Rate and Adjusted Gross Margins driven by increase in domestic payments in the mix + seasonality/vertical mix Note: transaction spreads include spreads on all transaction volumes - ie FX and domestic
Slide 19: Increasingly Global & Diversified Revenue
Increasingly Global & Diversified Revenue* $474.2 M Comments $381.5 M 13% 16% 51% 3% ● Travel is now our 2nd 11% 69% 6% 6% largest vertical, 2% 1% growing above 50% YoY 8% 23% Travel 13% 23% ● Our EDU business is B2B 24% well-diversified, growing faster in Healthcare EMEA/UK than the US US ● B2B is gr
Slide 20: Exceeding Expectations on Operating Leverage
Exceeding Expectations on Operating Leverage Adjusted EBITDA Margin Expansion 540bps Scaling Across All Each Year 2022-2024 Opex Lines (as % of RLAS) +540 bps +540 bps We continued to show strong operating leverage, despite policy-driven macro headwinds
Slide 21: Shifting to Include FX Neutral Revenue Growth
Shifting to Include FX Neutral Revenue Growth To Track Business Performance Flywire will start reporting revenue using FX-neutral Revenue Mix: USD vs non-USD currencies (constant currency) and spot FX (actual exchange Non-US currencies primarily include: GBP, EUR, AUD, CAD rates). Differences and wh
Slide 22: Guidance Context & Forward Path
Guidance Context & Forward Path
Slide 23: 2025 Revenue Outlook: Changes and Guidance Context
2025 Revenue Outlook: Changes and Guidance Context Softer Q4 NRR, primarily due to macro factors NRR Impacted by Macro Headwinds in 2024, Amplified into 2025 2025 Guidance Context NRR (%) ○ In Canada and Australia, which together represented approximately 15% of our revenue in 2024, we anticipate som
Slide 24: Canadian Market Update & Impact of SDS Program Closure
Canadian Market Update & Impact of Student Direct Stream (SDS) Program Closure Canadian Market Update • New study permit issuance in Canada is projected to have Flywire Canada EDU Revenue vs. declined by (45%) in 2024 resulting in ~280,000 new study permit New Study Permits approvals across all stud
Slide 25: Secular Growth Trends for Student Visas Expected to Remain Intact
Secular Growth Trends for Student Visas Expected to Remain Intact 1 Total International Students Globally 10M +3.9% 9/11 Terrorism Events SARS-CoV H5N1. Bird Flu Global Financial Crisis COVID-19 9M 8M 7M +4.1% 6M 5M +5.9% 4M +5.4% 3M +1.7% 2M 1M +1.7% 10 Year CAGR 1970 1975 1980 1985 1990 1995 2000
Slide 26: Operational and Portfolio Review
Operational and Portfolio Review Operational Portfolio • Align our resources with high-growth opportunities • Comprehensive review of most and improve profitability. critical geos/verticals/ • Identifying new revenue streams or product potential adjacencies. innovations. • Focus on Flywire’s core • C
Slide 27: 2025 Financial Outlook
2025 Financial Outlook
Slide 28: Q1 2025 Outlook
Q1 2025 Outlook 11-14% YoY +300-600 bps Revenue Less Ancillary Services FXN Adjusted 1 Growth EBITDA margin expansion (ex Sertifi) (YoY, ex Sertifi) Sertifi expected to add $3-4M Sertifi expected to be flat to slightly positive in in revenue for Q1’25 (starting 2/25) adjusted EBITDA for Q1’25 (starting 2
Slide 29: FY 2025 Outlook
FY 2025 Outlook 10-14% YoY +200-400 bps Adjusted Revenue Less Ancillary 1 EBITDA margin expansion Services FXN Growth (YoY, ex Sertifi) (ex Sertifi) Sertifi expected to add $35 - 40M Sertifi expected to add positive (low single digits) in revenue for 2025 (starting 2/25) adjusted EBITDA dollars 1. Flywi
Slide 30: Capital Allocation and Structure
Capital Allocation and Structure
Slide 31: Capital Allocation Strategy Overview
Capital Allocation Strategy Overview 1 2 3 Organic growth Strategic Share investments acquisitions buybacks Geographic Expansion Accelerate within existing Share Repurchase Program industry and / or geographies enables purchasing when GTM Enhancement projected return exceeds our New product capabili
Slide 32: 2024 Cash Walk
2024 Cash Walk (US$M) ● Cash and its components represent corporate cash, cash equivalents, and investments (i.e. excludes client cash) ● Cash decrease driven by discretionary capital allocation exceeding FCF generated in period ● M&A represents Invoiced acquisition; ● Share repurchase program (shar
Slide 33: $534M Total Corporate Cash Resources | 12/31/24
$534M Total Corporate Cash Resources | 12/31/24 (US$M) From 2024 10K: Consolidated Balance Sheet Client Cash Funds payable to clients 218 Less: Funds receivable from payment partners 90 Total client cash held at Flywire 128 Corporate Cash & Cash Equivalents Cash and cash equivalents 495 Less: Total
Slide 34: Financial Flexibility - Pro Forma Sertifi Acquisition
Financial Flexibility - Pro Forma Sertifi Acquisition (US$M) ● Debt capacity is based on maximum leverage allowed in Flywire’s credit facility agreement ● Expect to repay ~$65M of the $125M drawn shortly after close, leaving ~$60M outstanding ● Remaining cash + debt capacity post purchase is strong a
Slide 35: Share Repurchases During FY 2024
Share Repurchases During FY 2024 44 US$M Authorized $150M 23 21 (-) Purchases through $(44M) 12/31/24 Remaining $106M Q3 ‘24 Q4 ‘24 2024 ● Flywire began its share repurchase program in Q3’24 ● $44M of total cash was spent on share repurchases in 2024
Slide 36: Appendix
Appendix
Slide 37: FX Neutral Revenue Less Ancillary Services
FX Neutral Revenue Less Ancillary Services* *FX Neutral Revenue Less Ancillary Services: FX neutral revenue less ancillary services is adjusted for the impact of foreign currency rate fluctuations. This measure helps provide insight on comparable revenue growth by removing the effect of changes in fo
Slide 38: Revenue Less Ancillary Services & Adjusted Gross Margin Reconciliations
Revenue Less Ancillary Services & Adjusted Gross Margin Reconciliations $USD in Millions (unaudited)
Slide 39: Revenue Disaggregation by Revenue Type
Revenue Disaggregation by Revenue Type $USD in Millions (unaudited)
Slide 40: Net Loss to Adjusted EBITDA Reconciliation
Net Loss to Adjusted EBITDA Reconciliation $USD in Millions (unaudited)
Slide 41: Net Margin, EBITDA Margin and Adjusted EBITDA Margin
Net Margin, EBITDA Margin and Adjusted EBITDA Margin $USD in Millions (unaudited)
Slide 42: Reconciliation of Non-GAAP Operating Expenses
Reconciliation of Non-GAAP Operating Expenses $USD in Millions (unaudited)
Slide 43: FX Neutral Revenue Growth Guidance Reconciliation
Reconciliation of FX Neutral Revenue Growth Guidance to FX Neutral Revenue Less Ancillary Services Growth Guidance
Slide 44: Flywire Travel TAM Sources
Flywire Travel TAM Sources TAM Methodology Source List 1. Hotel Events & Catering Services & Authorizations: 1. State of Travel 2024 (Skift Research) non-ecommerce payments for events and catering, along with 2. Luxury Hotel Market Size & Share | Industry Report, 2030 (Grand 3rd-party authorizations