TLDR:
- Q3 revenue rose 51.9% YoY to $231.6M, beating estimates of $190.6M
- Processed 155.3M transactions, up 34.6% YoY
- Adjusted EBITDA reached $24.6M with 30.7% margin
- EPS of $0.15 exceeded consensus of $0.09
- Raised FY24 guidance to $829M-$834M from $770M-$780M
Paymentus Holdings Inc. (NYSE:PAY) saw its stock price jump 22.5% in trading Wednesday after reporting third-quarter results that surpassed analyst expectations across all key metrics. The cloud-based payment technology company posted revenue of $231.6 million, representing a 51.9% increase from the same period last year.
Transaction volume showed robust growth, with the company processing 155.3 million transactions during the quarter, marking a 34.6% increase compared to Q3 2023. This growth in transaction volume directly contributed to the company’s strong financial performance.
The company’s profitability metrics also showed marked improvement. Adjusted EBITDA reached $24.6 million, increasing 58.2% year-over-year, with margins expanding to 30.7%. Net income for the quarter came in at $14.4 million.
Earnings per share reached $0.15 on a non-GAAP basis, substantially beating the consensus estimate of $0.09. This represents a 66.67% earnings surprise, continuing a trend of exceeding analyst expectations over the past four quarters.
Gross profit showed healthy growth, rising 29.3% compared to the previous year. The company attributed this increase to an expanding biller base and higher transaction volumes across its platform.
The strong performance was reflected in the company’s adjusted gross profit, which increased by 29.1% year-over-year to $66.2 million. Contribution profit also saw improvement, rising by 30.1% compared to the same quarter last year.
CEO Dushyant Sharma attributed the results to the company’s strategic momentum and execution in the market. The company has maintained consistent growth in both its customer base and transaction volumes throughout the year.
Looking ahead to the fourth quarter, Paymentus provided guidance for revenue between $215 million and $220 million. This projection exceeds the current analyst consensus of $203.62 million.
The company also raised its full-year 2024 guidance, now expecting revenue between $829 million and $834 million, up from its previous forecast of $770 million to $780 million. This new guidance represents a substantial increase from analyst expectations of $776.58 million.
For the full fiscal year, Paymentus projects contribution profit to range from $305 million to $307 million, with adjusted EBITDA expected to fall between $89 million and $91 million.
The stock’s performance has been strong throughout 2024, with shares gaining approximately 49.9% since the beginning of the year, outperforming the S&P 500’s 25.8% gain during the same period.
In premarket trading Wednesday, PAY shares reached $32.65, reflecting investor confidence in the company’s quarterly results and raised guidance.
The company has maintained a consistent track record of exceeding consensus estimates, having topped revenue expectations in all four quarters over the past year.
The latest quarterly results show continued momentum in the company’s core business metrics, with both transaction volumes and biller base expanding.
Trading volume increased notably following the earnings announcement, with the stock seeing higher-than-average activity in the market.
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