Paymentus (PAY) J.P. Morgan 54th Annual Global Technology, Media and Communications Conference summary

Business performance and growth drivers

• Q1 2025 showed strong growth, driven by a robust backlog and diversified pipeline across multiple verticals.

• Technology and platform flexibility are key differentiators, enabling rapid onboarding and minimal customization for clients.

• Expansion beyond utilities into insurance, education, healthcare, telecommunications, and property management is accelerating growth.

• Digital bill payment adoption is now mainstream, increasing urgency for billers to modernize and outsource payment solutions.

• Seasonality and vertical diversification are being carefully managed to ensure prudent guidance and sustainable growth.

Financial outlook and strategy

• Long-term CAGR targets of 20% top-line and 20–30% bottom-line growth remain intact, with quarterly variability expected.

• Revenue and contribution profit are expected to converge over time as enterprise customer onboarding stabilizes.

• Diversification and evolved pricing strategies have reduced exposure to energy price fluctuations.

• Prudent forecasting and guidance are prioritized to avoid overcommitting and to maintain credibility with investors.

• Investments in R&D, not sales and marketing, have driven innovation while maintaining financial discipline.

Innovation: AI-native service commerce, BillWallet, and Billeo

• Service commerce is positioned as a new category, focusing on streamlining post-purchase service interactions using AI.

• BillWallet and Billeo leverage AI to automate workflows, identity verification, and customer support, reducing friction and call times.

• Early pilots of BillWallet have shown rapid user adoption, with 100,000 users and high engagement compared to legacy wallets.

• The platform aims to serve the broader service economy, integrating with partners like PayPal and Walmart, and targeting millions of users.

• AI is central to both internal operations and external product offerings, enhancing efficiency and customer experience.