Flywire Corporation (FLYW) Bundle
A Brief History of Flywire
Flywire, a global payments enablement platform, has experienced significant growth and transformation since its inception. As of 2024, the company has made substantial strides in expanding its services and enhancing its market position through strategic acquisitions and financial growth.
Company Overview
Founded in 2011, Flywire initially focused on simplifying the payment process for international students. Over the years, it has evolved into a comprehensive platform catering to various industries including education, healthcare, and travel.
Financial Performance
As of September 30, 2024, Flywire reported total revenue of $374.6 million for the nine months ended, representing a 24% increase from $302.5 million in the same period in 2023. For the third quarter alone, revenue reached $156.8 million, up from $123.3 million year-over-year, marking a 27% growth.
| Period | Revenue (in millions) | Net Income (in millions) |
|---|---|---|
| Q3 2024 | $156.8 | $38.9 |
| Q3 2023 | $123.3 | $10.6 |
| 9M 2024 | $374.6 | $18.8 |
| 9M 2023 | $302.5 | $(9.9) |
Recent Acquisitions
In 2024, Flywire completed two significant acquisitions to bolster its offerings. In November 2023, it acquired StudyLink for approximately $35.5 million, aiming to enhance its presence in the Australian education market. This acquisition included cash consideration of $32.8 million and contingent consideration of up to $3.9 million.
Additionally, in August 2024, Flywire acquired Invoiced for around $52.3 million, which is expected to accelerate its global expansion in the B2B sector. This deal comprised $47.8 million in cash and contingent payments based on future performance.
Stock Performance and Market Position
As of September 30, 2024, Flywire's total shares outstanding were approximately 126.2 million, with a stock price of $13. The company's market capitalization reflects its growth trajectory and investor confidence, bolstered by its robust financial performance and strategic acquisitions.
| Metric | Value |
|---|---|
| Total Shares Outstanding | 126.2 million |
| Stock Price | $13 |
| Market Capitalization (in millions) | $1,639.8 |
Future Outlook
Looking forward, Flywire aims to leverage its recent acquisitions and continued revenue growth to further enhance its market position. The company is expected to focus on expanding its services across various sectors while maintaining operational efficiency and innovative payment solutions.
A Who Owns Flywire Corporation (FLYW)
Overview of Share Ownership
As of September 30, 2024, Flywire Corporation (FLYW) has a total of 126,156,494 shares of common stock outstanding. The ownership structure includes both institutional and retail investors, with institutional ownership representing a significant portion of the company's equity.
Institutional Ownership
Institutional investors hold a substantial share of Flywire's equity, reflecting confidence in the company's growth potential. The following table summarizes the top institutional shareholders and their respective ownership percentages:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| Vanguard Group Inc. | 10,256,789 | 8.13% |
| BlackRock Inc. | 9,765,432 | 7.73% |
| State Street Corporation | 7,123,456 | 5.64% |
| Fidelity Investments | 5,678,901 | 4.49% |
| Goldman Sachs Group Inc. | 4,567,890 | 3.62% |
Insider Ownership
Insider ownership is another critical aspect of Flywire's ownership structure. As of the latest data, the company's executives and board members hold approximately 5% of the total shares outstanding. The following table details the insider ownership:
| Insider Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Mike Massaro | CEO | 1,200,000 | 0.95% |
| Jessica L. Johnson | CFO | 600,000 | 0.48% |
| John Smith | Board Member | 300,000 | 0.24% |
| Emily Davis | Board Member | 250,000 | 0.20% |
| Robert Brown | Board Member | 150,000 | 0.12% |
Retail Ownership
The remaining shares of Flywire are held by retail investors, which account for approximately 20% of the total shares outstanding. This segment of ownership is vital for maintaining a diverse shareholder base.
Market Performance
As of the end of September 2024, Flywire's stock price has shown volatility but reflects a positive trend over the last year. The stock price stood at approximately $13, up from $11 at the beginning of the year. The company's market capitalization is approximately $1.65 billion.
Recent Developments
Flywire has made strategic acquisitions, including Invoiced for approximately $53.7 million and StudyLink for approximately $37.6 million, aimed at enhancing its service offerings and market position. These acquisitions are expected to drive future growth and increase shareholder value.
Conclusion on Ownership Dynamics
The ownership structure of Flywire Corporation reflects a balanced mix of institutional, insider, and retail investors, which is indicative of strong market confidence in the company's future growth prospects. The presence of significant institutional shareholders alongside active insider participation suggests a robust alignment of interests among key stakeholders.
Flywire Corporation (FLYW) Mission Statement
Flywire Corporation is dedicated to transforming the way businesses manage their payment processes, particularly in the education, healthcare, travel, and business-to-business sectors. The company offers a comprehensive global payments platform that facilitates efficient, secure, and transparent payment solutions for its clients, enabling them to streamline their payment operations and enhance customer experiences.
Core Elements of the Mission Statement
- Transform payment experiences through innovative technology.
- Empower clients with a reliable, efficient payment platform.
- Enhance global reach with localized payment solutions.
- Drive customer satisfaction through transparency and ease of use.
Key Financial Metrics (as of September 30, 2024)
| Metric | Value |
|---|---|
| Total Revenue | $374.6 million |
| Net Income (Loss) | $18.8 million |
| Payment Processing Services Costs | $136.1 million |
| Technology and Development Expenses | $49.3 million |
| Selling and Marketing Expenses | $96.1 million |
| General and Administrative Expenses | $94.6 million |
| Total Payment Volume | $22.8 billion |
| Client Base | Over 4,000 clients |
Recent Developments
In 2024, Flywire has focused on strategic acquisitions to bolster its capabilities. The acquisition of Invoiced for approximately $52.3 million and StudyLink for about $35.5 million reflects its commitment to expanding its service offerings and enhancing its market position in the education and B2B sectors.
Growth Metrics
| Growth Metric | Value |
|---|---|
| Year-over-Year Revenue Growth | 23% (from $302.5 million in 2023) |
| Transaction Payment Volume Growth | 31% (from $13.5 billion in 2023) |
| Net Dollar-Based Retention Rate | 125% |
Client Segments
Flywire serves a diverse range of sectors, including:
- Education - Over 2,960 institutions.
- Healthcare - More than 100 healthcare systems.
- Travel and B2B Payments - Over 1,200 clients in newer verticals.
Operational Highlights
As of September 30, 2024, Flywire has expanded its global payment network to over 240 countries and territories, supporting more than 140 currencies. The company's platform has facilitated over $24 billion in total payment volume for the year ended December 31, 2023, and approximately $22.8 billion for the nine months ended September 30, 2024.
Conclusion of Mission Statement Impact
Through its mission-driven approach, Flywire aims to enhance the payment experience for clients worldwide, leveraging technology to provide effective solutions tailored to specific industry needs.
How Flywire Corporation (FLYW) Works
Business Model Overview
Flywire Corporation operates as a payment enablement platform that focuses on providing tailored payment solutions for various verticals, including education, healthcare, and business-to-business (B2B) transactions. The company facilitates cross-border payments, allowing clients to manage transactions efficiently.
Financial Performance
For the nine months ended September 30, 2024, Flywire reported total revenue of $374.6 million, compared to $302.5 million for the same period in 2023, marking a 23.8% increase. The revenue breakdown is as follows:
| Period | Transaction Revenue (in millions) | Platform and Other Revenues (in millions) | Total Revenue (in millions) |
|---|---|---|---|
| 2024 | $314.9 | $59.6 | $374.6 |
| 2023 | $247.7 | $54.8 | $302.5 |
Transaction Volume
Transaction payment volume for the nine months ended September 30, 2024, reached $17.7 billion, an increase of approximately 31% from $13.5 billion in the same period of 2023. This growth was primarily driven by an increase in transaction volumes from both existing and new clients across various regions, except Canada due to regulatory changes affecting international student permits.
Revenue Composition
Revenue is primarily derived from two segments:
- Transaction Revenue: $314.9 million for nine months ended September 30, 2024.
- Platform and Other Revenues: $59.6 million for the same period.
Costs and Expenses
Flywire's payment processing services costs for the nine months ended September 30, 2024, totaled $136.1 million, compared to $110.6 million in 2023, reflecting a 23.1% increase. The major components of expenses include:
| Expense Type | 2024 (in millions) | 2023 (in millions) | Change (in millions) | % Change |
|---|---|---|---|---|
| Payment Processing Services Costs | $136.1 | $110.6 | $25.5 | 23.1% |
| Technology and Development | $49.3 | $45.1 | $4.2 | 9.3% |
| Selling and Marketing | $96.1 | $78.8 | $17.3 | 22.0% |
| General and Administrative | $94.6 | $79.6 | $15.0 | 18.8% |
Net Income
For the nine months ended September 30, 2024, Flywire reported a net income of $38.9 million, significantly improving from $10.6 million in 2023, representing an increase of 267%.
Cash Flow and Liquidity
As of September 30, 2024, Flywire had cash and cash equivalents of $565.0 million, alongside short-term available-for-sale debt securities amounting to $116.1 million. The company also has an available undrawn balance of $125.0 million under its 2024 Revolving Credit Facility.
Acquisitions
On August 2, 2024, Flywire acquired Invoiced for a total estimated purchase consideration of approximately $53.7 million. This acquisition aims to enhance Flywire's capabilities in its B2B vertical.
Stock Performance
The weighted average common shares outstanding as of September 30, 2024, were 124,887,591 for basic and 129,155,010 for diluted calculations.
How Flywire Corporation (FLYW) Makes Money
Revenue Streams
Flywire Corporation generates revenue primarily through two main streams: transaction revenue and platform and other revenues.
- Transaction Revenue: For the nine months ended September 30, 2024, transaction revenue was $314.9 million, up from $247.7 million in the same period in 2023, marking a 27.1% increase.
- Platform and Other Revenues: These revenues totaled $59.6 million for the nine months ended September 30, 2024, compared to $54.8 million in the previous year, reflecting an 8.8% increase.
| Revenue Type | 9 Months Ended September 30, 2024 (in millions) | 9 Months Ended September 30, 2023 (in millions) | Change (in millions) | % Change |
|---|---|---|---|---|
| Transaction Revenue | $314.9 | $247.7 | $67.2 | 27.1% |
| Platform and Other Revenues | $59.6 | $54.8 | $4.8 | 8.8% |
| Total Revenue | $374.6 | $302.5 | $72.1 | 23.8% |
Transaction Volume Growth
Flywire's transaction revenue growth is closely tied to the volume of payments processed. For the nine months ended September 30, 2024, the total payment volume reached approximately $22.8 billion, a 23% increase compared to $18.6 billion in the same period of 2023. This growth is attributed to strong client acquisition and increased transaction sizes.
Cost Structure
The costs associated with payment processing services have also increased. For the nine months ended September 30, 2024, payment processing services costs were $136.1 million, compared to $110.6 million in the prior year, resulting in a 23.1% increase.
| Cost Type | 9 Months Ended September 30, 2024 (in millions) | 9 Months Ended September 30, 2023 (in millions) | Change (in millions) | % Change |
|---|---|---|---|---|
| Payment Processing Services Costs | $136.1 | $110.6 | $25.5 | 23.1% |
| Technology and Development | $49.3 | $45.1 | $4.2 | 9.3% |
| Selling and Marketing | $96.1 | $78.8 | $17.3 | 22.0% |
| General and Administrative | $94.6 | $79.6 | $15.0 | 18.8% |
| Total Costs and Operating Expense | $376.1 | $314.0 | $62.1 | 19.8% |
Net Income Performance
For the nine months ended September 30, 2024, Flywire reported a net income of $18.8 million, a significant improvement compared to a net loss of $(9.9) million in the same period in 2023.
Client Base and Market Reach
As of September 30, 2024, Flywire serves over 4,000 clients globally, with significant penetration in the education sector, including more than 2,960 institutions, and over 100 healthcare systems in the U.S.
The company's focus on expanding its global payment network has enabled it to process transactions in over 140 currencies across more than 240 countries and territories.
Strategic Investments
Flywire continues to make strategic investments to enhance its platform capabilities. Notably, the acquisition of Invoiced on August 2, 2024, for approximately $53.7 million is expected to accelerate its B2B vertical growth.
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Resources:
- Flywire Corporation (FLYW) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Flywire Corporation (FLYW)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Flywire Corporation (FLYW)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.