Flywire Corp (FLYW) Posts Strong Revenue Growth in Q3 2023, Raises Full-Year Outlook
Flywire Corp (NASDAQ:FLYW) reports a significant 29.5% year-over-year increase in third-quarter revenue.
Adjusted EBITDA and revenue less ancillary services also saw substantial growth.
Despite foreign exchange challenges, the company raises its full-year financial outlook.
Q3 2023 marks the highest quarter of revenue and adjusted EBITDA in Flywire's history.
On November 7, 2023, Flywire Corp (NASDAQ:FLYW), a global payments enablement and software company, released its financial results for the third quarter ended September 30, 2023. The company experienced a significant year-over-year revenue increase of 29.5%, with revenue less ancillary services growing by 31.4%. This performance led to the highest quarter of revenue and adjusted EBITDA in the company's history.
Financial Performance Overview
Flywire Corp (NASDAQ:FLYW) reported third-quarter revenue of $123.3 million, a notable increase from $95.2 million in the same period last year. The company's revenue less ancillary services reached $116.8 million, reflecting the strength of Flywire's core business operations. The adjusted EBITDA for the quarter is projected to be between $1.0 million and $4.0 million.
Despite facing significant foreign exchange headwinds, Flywire Corp (NASDAQ:FLYW) has raised its full-year outlook before FX impacts. The updated outlook includes an additional $1.0 million from the StudyLink acquisition and $1.6 million due to underlying organic strength in the business. However, these positive factors are partially offset by an estimated $3.8 million in foreign exchange headwinds.
Key Financial Statements
The condensed consolidated statements of operations and comprehensive income (loss) show a net income of $10.6 million for the third quarter of 2023, compared to a net loss of $4.3 million in the same quarter of the previous year. The balance sheet reflects a healthy cash and cash equivalents position of $638.2 million as of September 30, 2023, a significant increase from $349.2 million at the end of 2022.
The statement of cash flows indicates that Flywire Corp (NASDAQ:FLYW) has successfully generated net cash from operating activities amounting to $20.9 million for the nine months ended September 30, 2023, a positive shift from the net cash used in operating activities of $27.7 million in the same period last year.
Management Commentary
CEO Mike Massaro expressed satisfaction with the third-quarter results, attributing the success to the optimization of Flywire's go-to-market strategy and the efforts of the sales and marketing teams. CFO Mike Ellis highlighted the 43% year-to-date growth rate in revenue less ancillary services as a testament to the company's business strength, leading to the raised fiscal-year outlook.
Outlook and Future Prospects
Flywire Corp (NASDAQ:FLYW) anticipates fourth-quarter 2023 revenue to be between $91.5 million and $96.5 million, with revenue less ancillary services projected to be between $86.5 million and $90.5 million. For the fiscal year 2023, the company expects revenue to range from $394.1 million to $399.3 million, with revenue less ancillary services estimated to be between $372.0 million and $376.0 million.
The company's forward-looking statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. Flywire Corp (NASDAQ:FLYW) will continue to monitor these factors and adjust its strategies accordingly to maintain its growth trajectory and financial health.
For more detailed information on Flywire Corp (NASDAQ:FLYW)'s financial results, including reconciliations of non-GAAP financial measures, please visit Flywire's investor relations website.
Investors and stakeholders are encouraged to follow Flywire's progress as it continues to execute its business strategy and capitalize on market opportunities.
Explore the complete 8-K earnings release (here) from Flywire Corp for further details.
This article first appeared on GuruFocus.
