Paymentus (PAY) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $197.4 million, up 32.6% year-over-year, driven by increased billers, transactions, and new implementations.

• Adjusted EBITDA rose 58.6% year-over-year to $22.5 million, with a 29.5% margin.

• Net income for Q2 2024 was $9.4 million, up 60.4% from $5.8 million in Q2 2023, reflecting operational leverage and higher interest income.

• Strong bookings, backlog, and pipeline, with demand momentum across government, utilities, banks, insurance, telecom, property management, healthcare, and education.

• Continued momentum driven by differentiated technology, transaction-based pricing, and expansion into new verticals.

Financial highlights

• Q2 2024 revenue: $197.4 million, up 32.6% year-over-year.

• Contribution profit: $76.5 million, up 28.3% year-over-year; contribution margin 38.7%.

• Adjusted EBITDA: $22.5 million, up 58.6% year-over-year; margin 29.5% of contribution profit.

• Non-GAAP net income: $14.7 million ($0.12/share), up from $10.2 million ($0.08/share) last year.

• Processed 140.4 million transactions, up 28.2% year-over-year; average price per transaction rose from $1.36 to $1.41.

Outlook and guidance

• Q3 2024 revenue guidance: $188M–$193M (25%–26.6% year-over-year growth).

• Q3 contribution profit: $71M–$74M; adjusted EBITDA: $18M–$20M.

• Full-year 2024 revenue guidance raised to $770M–$780M (26.1% growth at midpoint).

• Full-year contribution profit: $293M–$298M; adjusted EBITDA: $81M–$85M (42.9% growth at midpoint).

• Management expects inflationary pressures and economic uncertainty to persist through 2024, with ongoing price adjustments and cost management.