Paymentus (PAY) investor relations material

Business overview and market positioning

• Focuses on non-discretionary bill payments, serving essential household needs like utilities, insurance, and telecom, ensuring stability across economic cycles.

• Shifted market share from banks to billing companies, empowering billers with control and real-time payment solutions.

• Expanded from utilities into multiple verticals, now serving government, insurance, property management, and telecom at scale.

• Platform is considered irreplaceable by large enterprises, driving 20% top-line and 20-30% adjusted EBITDA growth.

• Network effect and ecosystem approach make the platform mission-critical for both billers and banks.

Growth drivers and financial performance

• Revenue growth driven by new implementations and expansion within existing customers, with improved pipeline conversion and faster go-lives.

• Platform operates across 10-12 verticals, with utilities accounting for about 50% of revenue; other sectors like insurance and healthcare are growing.

• Digitalization tailwinds and platform agnosticism fuel traction across diverse customer segments.

• Record incremental EBITDA margin of 61.7% achieved, reflecting strong profitability and operating leverage.

• Highly cash-generative business model, with financial processes and pipeline efficiency improving year over year.

Platform strategy and competitive differentiation

• Built a single code base platform serving all verticals, enabling scalability and operating leverage.

• Proprietary Instant Payment Network and ecosystem approach provide real-time connectivity for billers and banks.

• Multi-year contracts and evolving feature set ensure long-term client relationships and adaptability to changing business needs.

• Focus on best-of-breed product strategy, with clients prioritizing reliability and network coverage over price.

• Platform is seen as essential infrastructure, with tens of millions of households and businesses onboarded.