Paymentus (PAY) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 revenue of $231.6M, up 51.9% year-over-year, driven by increased billers, new partnerships, and higher transaction volume.

• Adjusted EBITDA rose 58.2% year-over-year to $24.6M, with a 30.7% margin.

• Net income for Q3 was $14.4M, more than double the prior year, while non-GAAP net income reached $19.6M ($0.15/share).

• Processed 155.3M transactions in Q3, up 34.6% year-over-year, with average price per transaction rising to $1.49.

• Early onboarding of large enterprise clients accelerated recurring revenue and de-risked 2025.

Financial highlights

• Gross profit for Q3 2024 was $60.7M, up 29.3% year-over-year; contribution profit reached $80.0M, up 30.1%.

• Adjusted EBITDA margin improved to 30.7% from 25.3% in Q3 2023; incremental adjusted EBITDA margin for Q3 was 49.2%.

• GAAP EPS was $0.11; non-GAAP EPS was $0.15.

• Free cash flow for Q3 was $4.3M; cash and equivalents at quarter-end were $187.5M.

• Rule of 40 score reached 61, marking the sixth consecutive quarter above this benchmark.

Outlook and guidance

• Q4 2024 revenue guidance: $215M–$220M (31.8%–33.3% year-over-year growth); contribution profit: $79M–$81M; adjusted EBITDA: $22M–$24M.

• FY 2024 revenue guidance: $829M–$834M (35.3% growth at midpoint); contribution profit: $305M–$307M; adjusted EBITDA: $89M–$91M.

• Rule of 40 scale for 2024 expected at 56–57, up from 44 in 2023.

• Management expects continued transaction and revenue growth, but notes ongoing economic uncertainty and inflationary pressures may impact results.

• Existing cash is expected to support working capital and capital expenditures for at least the next 12 months.