Cross border payment processor Flywire (NASDAQ: FLYW) beat analysts' expectations in Q2 CY2024, with revenue up 22.2% year on year to $103.7 million. The company expects next quarter's revenue to be around $151.5 million, in line with analysts' estimates. It made a GAAP loss of $0.11 per share, improving from its loss of $0.15 per share in the same quarter last year.

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Flywire (FLYW) Q2 CY2024 Highlights:

• Revenue: $103.7 million vs analyst estimates of $100.4 million (3.3% beat)

• EPS: -$0.11 vs analyst expectations of -$0.09 (16.4% miss)

• Revenue Guidance for Q3 CY2024 is $151.5 million at the midpoint, roughly in line with what analysts were expecting

• The company dropped its revenue guidance for the full year from $505 million to $494.5 million at the midpoint, a 2.1% decrease

• Gross Margin (GAAP): 61.5%, up from 60.2% in the same quarter last year

• Free Cash Flow was -$21.72 million compared to -$39.61 million in the previous quarter

• Market Capitalization: $2.24 billion

“Our second quarter results demonstrate resilient performance across the business where we signed more than 200 new clients and grew revenue by 22% and revenue less ancillary services by 26% year-over-year, despite revenue headwinds related to the ongoing Canadian government actions involving student study permits,” said Mike Massaro, CEO of Flywire.

Originally created to process international tuition payments for universities, Flywire (NASDAQ:FLYW) is a cross border payments processor and software platform focusing on complex, high-value transactions like education, healthcare and B2B payments.

Payments Software

Consumers want the ability to make payments whenever and wherever they prefer – and to do so without having to worry about fraud or other security threats. However, building payments infrastructure from scratch is extremely resource-intensive for engineering teams. That drives demand for payments platforms that are easy to integrate into consumer applications and websites.

Sales Growth

As you can see below, Flywire's revenue growth has been incredible over the last three years, growing from $36.98 million in Q2 2021 to $103.7 million this quarter.

This quarter, Flywire's quarterly revenue was once again up a very solid 22.2% year on year. However, the company's revenue actually decreased by $10.43 million in Q2 compared to the $13.56 million increase in Q1 CY2024. Regardless, we aren't too concerned because Flywire's sales seem to follow a seasonal pattern and management is guiding for revenue to rebound in the coming quarter.