0000950170-22-023905.txt : 20221109 0000950170-22-023905.hdr.sgml : 20221109 20221109162252 ACCESSION NUMBER: 0000950170-22-023905 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 15 CONFORMED PERIOD OF REPORT: 20221109 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20221109 DATE AS OF CHANGE: 20221109 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Paymentus Holdings, Inc. CENTRAL INDEX KEY: 0001841156 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-40429 FILM NUMBER: 221373000 BUSINESS ADDRESS: STREET 1: 11605 N. COMMUNITY HOUSE ROAD STREET 2: SUITE 300 CITY: CHARLOTTE STATE: NC ZIP: 28277 BUSINESS PHONE: (888) 440-4826 MAIL ADDRESS: STREET 1: 11605 N. COMMUNITY HOUSE ROAD STREET 2: SUITE 300 CITY: CHARLOTTE STATE: NC ZIP: 28277 8-K 1 pay-20221109.htm 8-K 8-K
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 9, 2022

 

 

Paymentus Holdings, Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware

001-40429

45-3188251

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

11605 North Community House Road

Suite 300

 

Charlotte, NC

 

28277

(Address of Principal Executive Offices)

 

(Zip Code)

 

(888) 440-4826

Registrant’s Telephone Number, Including Area Code:

 

18390 NE 68th Street

Redmond, WA 98052

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

Class A Common Stock, par value $0.0001 per share

 

PAY

 

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 

1


 

Item 2.02 Results of Operations and Financial Condition

On November 9, 2022, Paymentus Holdings, Inc. issued a press release reporting its financial results for the three and nine months ended September 30, 2022. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated by reference herein.

The information in Item 2.02 of this Current Report on Form 8-K, including the accompanying Exhibit 99.1, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of Section 18. The information in Item 2.02 of this Current Report, including the accompanying Exhibit 99.1, shall not be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language contained in such filing.

 

2


 

Item 9.01 Financial Statements and Exhibits

(d) Exhibits


 

Exhibit

Number

 

Description

 

 

 

99.1

 

Press release dated November 9, 2022

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

3


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

PAYMENTUS HOLDINGS, INC.

 

 

 

 

Date:

November 9, 2022

By:

/s/ Dushyant Sharma

 

 

 

Dushyant Sharma
Chairman, President and Chief Executive Officer

 

4


EX-99.1 2 pay-ex99_1.htm EX-99.1 EX-99.1

 

img238123965_0.jpg 

 

Paymentus Reports Third Quarter 2022

Financial Results

Third Quarter Transactions Increased 30.6% Year-over-Year

Third Quarter Revenue Increased 26.0% Year-over-Year

Third Quarter Gross Profit Increased 21.5% Year-over-Year

Contribution Profit* Increased 25.8% Year-over-Year

 

CHARLOTTE, North Carolina, November 9, 2022 -- Paymentus Holdings, Inc. (“Paymentus”) (NYSE: PAY), a leading provider of cloud-based bill payment technology solutions, today announced financial results for its third quarter ended September 30, 2022.

"Our third quarter numbers were strong across the board,” said Dushyant Sharma, Founder and CEO. “We're most proud of our sales results which show continued momentum."

Third Quarter 2022 Business and Financial Highlights*

Processed 92.2 million transactions in the third quarter of 2022, an increase of 30.6% from the third quarter of 2021.
Revenue was $128.2 million, an increase of 26.0% from the third quarter of 2021.
Gross profit was $37.9 million compared to $31.2 million for the third quarter of 2021. Adjusted gross profit was $41.0 million compared to $32.6 million for the third quarter of 2021.
Contribution profit was $51.1 million, compared to $40.7 million for the third quarter of 2021, representing an increase of 25.8%.
Net loss was $737 thousand and GAAP loss per share was $0.01. Non-GAAP net income was $1.8 million and non-GAAP earnings per share was $0.01.
Adjusted EBITDA was $8.0 million, representing a 15.7% adjusted EBITDA margin compared to $5.5 million, representing a 13.6% adjusted EBITDA margin, for the third quarter of 2021.

"We placed a significant focus on expanding adjusted EBITDA margin this quarter and are pleased with our progress,” said Paul Seamon, Interim CFO. “We will continue to make investments that drive growth while working to grow margin."

* Descriptions of the non-GAAP financial measures contribution profit, adjusted gross profit, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income (loss) and non-GAAP earnings per share are provided below under “Use and Definitions of Non-GAAP Financial Measures,” and reconciliations are provided in the tables at the end of this release.

 

1


 

Updated 2022 Financial Outlook

Certain statements in this release, including without limitation, those in this section, are forward-looking statements. For additional information regarding the use and limitations of such statements, refer to “Forward-Looking Statements” below and the “Risk Factors” section of Paymentus’ most recent Form 10-K for the fiscal year ended December 31, 2021.

Paymentus continues to expect revenue for the full year 2022 to be between $485 million and $492 million or approximately 25% to 27% growth year-over-year. Contribution profit is anticipated to be between $200 million and $204 million or 26% and 29% growth year-over-year(1). Adjusted EBITDA is expected to be between $25 million and $28.5 million, resulting in an expected adjusted EBITDA margin of approximately 13% to 14%.

(1) Gross profit is estimated to be approximately 72% of contribution profit and other cost of revenue is estimated to be approximately 28% of contribution profit. The decrease in GAAP gross profit for 2022 is primarily driven by amortization of acquired intangibles, as such this will not impact adjusted gross profit.

Paymentus does not reconcile its forward-looking guidance for non-GAAP measures because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. Refer to “Use of Forward-Looking Non-GAAP Measures” below for additional explanation.

The statements in this section are forward-looking statements. For additional information regarding the use and limitations of such statements, refer to “Forward-Looking Statements” below.

Conference Call Information

In conjunction with this announcement, Paymentus will host a conference call for investors at 2:00 p.m. PT (5:00 p.m. ET) today to discuss third quarter 2022 results and our outlook for 2022. The live webcast and replay will be available at the Investor Relations section of Paymentus’ website.

About Paymentus

Paymentus is a leading provider of cloud-based bill payment technology and solutions for more than 1,700 billers and financial institutions across North America. Our omni-channel platform provides consumers with easy-to-use, flexible and secure electronic bill payment experiences through their preferred payment channel and type. Paymentus’ proprietary Instant Payment NetworkTM, or IPN, extends our reach by connecting our IPN partners’ platforms and tens of thousands of billers to our integrated billing, payment, and reconciliation capabilities. For more information, please visit www.paymentus.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding our sales momentum, ability to expand our adjusted EBITDA margins, investments that drive growth, our future financial performance and our updated 2022 financial outlook. Forward-looking statements include statements containing words such as “expect,” “anticipate,” “believe,” “project,” “will” and similar expressions intended to identify forward-looking statements.

These forward-looking statements are based on our current expectations. Forward-looking statements involve risks and uncertainties. Our actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to our ability to effectively manage our growth and expand our operations, including into new channels and industry verticals across different markets; our ability to expand and retain our biller, financial institution, partner and consumer base; the continued impact of the COVID-19 pandemic on our operating results, liquidity and financial condition and on our employees, billers, financial institutions, partners, consumers and other key stakeholders; our ability to remain competitive; our ability to develop new product features and enhance our platform and brand; our future acquisitions and strategic investments; our ability to hire and retain experienced and talented employees; and other risks and uncertainties included under the caption “Risk Factors” and elsewhere in our filings with the Securities and Exchange Commission, or SEC, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on March 3, 2022 and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, which we expect to file with the

2


 

SEC shortly after the date of this release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

All forward-looking statements are qualified in their entirety by this cautionary statement, and we undertake no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.

Use of Forward-Looking Non-GAAP Measures

Paymentus does not meaningfully reconcile guidance for adjusted EBITDA and adjusted EBITDA margin, because Paymentus cannot provide guidance for the more significant reconciling items between net income and adjusted EBITDA without unreasonable effort. This is due to the fact that future period non-GAAP guidance includes adjustments for items not indicative of our core operations, which may include, without limitation, items included in the supplemental financial information for reconciliation of reported GAAP results to non-GAAP results. Such items include acquisition related amortization expense for acquired intangibles, foreign exchange gains and losses, adjustments to its income tax provision and certain other items Paymentus believes to be non-indicative of its ongoing operations. Such adjustments may be affected by changes in ongoing assumptions, judgements, as well as nonrecurring, unusual or unanticipated charges, expenses or gains/losses or other items that may not directly correlate to the underlying performance of our business operations. The exact amount of these adjustments is not currently determinable but may be significant.

Use and Definitions of Non-GAAP Financial Measures

In addition to disclosing financial measures in accordance with accounting principles generally accepted in the United States, or GAAP, this press release and the accompanying tables contain certain non-GAAP financial measures, including contribution profit, adjusted gross profit, adjusted EBITDA, adjusted EBITDA margin, free cash flow, non-GAAP net income and non-GAAP earnings per share, or EPS. We use non-GAAP measures to supplement financial information presented on a GAAP basis. We believe that excluding certain items from our GAAP results allows management and our board of directors to more fully understand our consolidated financial performance from period to period and helps management project our future consolidated financial performance as forecasts are developed at a level of detail different from that used to prepare GAAP-based financial measures.

Contribution profit is defined as gross profit plus other cost of revenue. Other cost of revenue equals cost of revenue less interchange and assessment fees paid by us to our payment processors.

Adjusted gross profit is defined as gross profit adjusted for non-cash items, primarily stock-based compensation and amortization.

Adjusted EBITDA is defined as net income before other income (expense) (which consists of interest income (expense), net and foreign exchange gain (loss)), depreciation and amortization and income taxes, adjusted to exclude the effects of stock-based compensation expense and certain nonrecurring expenses that management believes are not indicative of ongoing operations, consisting primarily of professional fees and other indirect charges associated with our initial public offering.

Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of contribution profit.

Free cash flow is defined as net cash provided by (used in) operating activities less capital expenditures and software and capitalized internal-use software development costs.

Non-GAAP net (loss) income and non-GAAP EPS are defined as net (loss) income excluding certain nonrecurring items such as discrete tax items, one-time expenses or other non-cash items, including amortization of acquisition-related intangibles.

We believe these non-GAAP measures provide our investors with useful information to help them evaluate our operating results by facilitating an enhanced understanding of our operating performance and enabling them to make more meaningful period-to-period comparisons. In particular, we exclude interchange and assessment fees in the presentation of contribution profit because we believe inclusion is less directly reflective of our operating performance as we do not control the payment channel used by consumers, which is the primary determinant of the amount of interchange and assessment fees. We use contribution profit to measure the amount available to

3


 

fund our operations after interchange and assessment fees, which are directly linked to the number of transactions we process and thus our revenue and gross profit.

We use these non-GAAP measures in conjunction with GAAP measures as part of our overall assessment of our performance and liquidity, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance and liquidity. There are limitations to the use of the non-GAAP measures presented in this press release. Our non-GAAP measures may not be comparable to similarly titled measures of other companies; other companies, including companies in our industry, may calculate non-GAAP measures differently than we do, limiting the usefulness of those measures for comparative purposes. These non-GAAP measures should not be considered in isolation from or as a substitute for financial measures prepared in accordance with GAAP.

We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure, and to view our non-GAAP measures in conjunction with GAAP financial measures. For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables for the reconciliation of GAAP to non-GAAP results included at the end of this release.

Contacts

Investor Relations
Paul Seamon
pseamon@paymentus.com 

Media Relations
Tony Labriola
tony@thinkinsideout.com 

 

 

 

4


 

PAYMENTUS HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(In thousands, except share and per share data)

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

128,152

 

 

$

101,676

 

 

$

364,825

 

 

$

287,393

 

Cost of revenue

 

 

90,295

 

 

 

70,512

 

 

 

256,286

 

 

 

199,754

 

Gross profit

 

 

37,857

 

 

 

31,164

 

 

 

108,539

 

 

 

87,639

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

10,350

 

 

 

8,818

 

 

 

30,925

 

 

 

24,469

 

Sales and marketing

 

 

19,048

 

 

 

11,314

 

 

 

53,089

 

 

 

29,041

 

General and administrative

 

 

9,376

 

 

 

9,904

 

 

 

29,038

 

 

 

24,067

 

Total operating expenses

 

 

38,774

 

 

 

30,036

 

 

 

113,052

 

 

 

77,577

 

(Loss) income from operations

 

 

(917

)

 

 

1,128

 

 

 

(4,513

)

 

 

10,062

 

Other income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

Interest income (expense), net

 

 

504

 

 

 

                                    11

 

 

 

594

 

 

 

4

 

Foreign exchange gain (loss)

 

 

(28)

 

 

 

                               (16)

 

 

 

52

 

 

 

(8

)

(Loss) income before income taxes

 

 

(441

)

 

 

1,123

 

 

 

(3,867

)

 

 

10,058

 

(Provision for) benefit from income taxes

 

 

(296

)

 

 

(701

)

 

 

2,397

 

 

 

(5,423

)

Net (loss) income

 

$

(737

)

 

$

422

 

 

$

(1,470

)

 

$

4,635

 

Undeclared dividends on Series A preferred stock

 

 

 

 

 

 

 

 

 

 

 

(2,258

)

Net (loss) income attributable to common stock

 

$

(737

)

 

$

422

 

 

$

(1,470

)

 

$

2,377

 

Net (loss) income per share attributable to common stock

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

  (0.01)

 

 

$

 

 

$

(0.01

)

 

$

0.02

 

Diluted

 

$

  (0.01)

 

 

$

 

 

$

(0.01

)

 

$

0.02

 

Weighted-average number of shares used to compute net (loss) income per share attributable to common stock

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

122,740,982

 

 

 

118,206,073

 

 

 

121,765,509

 

 

 

110,272,583

 

Diluted

 

 

122,740,982

 

 

 

124,427,777

 

 

 

121,765,509

 

 

 

116,419,674

 

 

 

 

5


 

 

 

PAYMENTUS HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In thousands, except share and per share data)

 

 

September 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

148,314

 

 

$

168,386

 

Restricted funds held for financial institutions

 

 

77,601

 

 

 

33,443

 

Accounts and other receivables, net of allowance of $322 and $102

 

 

62,758

 

 

 

43,935

 

Income tax receivable

 

 

2,650

 

 

 

2,488

 

Prepaid expenses and other current assets

 

 

               12,318

 

 

 

8,184

 

Total current assets

 

 

303,641

 

 

 

256,436

 

Property and equipment, net of accumulated depreciation and
   amortization of $5,448 and $4,791

 

 

1,996

 

 

 

2,044

 

Capitalized internal-use software development costs, net

 

 

42,711

 

 

 

30,888

 

Intangible assets, net

 

 

36,113

 

 

 

42,088

 

Goodwill

 

 

129,344

 

 

 

129,413

 

Operating lease right-of-use assets

 

 

9,582

 

 

 

7,703

 

Deferred tax asset

 

 

165

 

 

 

163

 

Other long-term assets

 

 

7,677

 

 

 

4,207

 

Total assets

 

$

531,229

 

 

$

472,942

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

$

27,394

 

 

$

24,748

 

Accrued liabilities

 

 

16,665

 

 

 

12,491

 

Financial institution funds in-transit

 

 

77,601

 

 

 

33,443

 

Operating lease liabilities

 

 

1,389

 

 

 

1,456

 

Contract liabilities

 

 

1,328

 

 

 

2,173

 

Income tax payable

 

 

720

 

 

 

122

 

Total current liabilities

 

 

125,097

 

 

 

74,433

 

Deferred tax liability

 

 

 

 

 

3,318

 

Operating leases, net of current portion

 

 

8,703

 

 

 

6,463

 

Contract liabilities, net of current portion

 

 

2,637

 

 

 

1,713

 

Finance leases and other finance obligations, net of current portion

 

 

750

 

 

 

883

 

Total liabilities

 

 

137,187

 

 

 

86,810

 

Commitments and contingencies (Note 9)

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

Preferred stock, $0.0001 par value per share, 5,000,000 authorized at September 30, 2022 and December 31, 2021, respectively, none issued and outstanding at September 30, 2022 and December 31, 2021, respectively

 

 

 

 

 

 

Class A common stock, $0.0001 par value per share, 883,950,000 shares authorized as of September 30, 2022 and December 31, 2021, respectively; 19,653,565 and 17,251,079 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively

 

 

2

 

 

 

1

 

Class B common stock, $0.0001 par value per share, 111,050,000 shares authorized as of September 30, 2022 and December 31, 2021, respectively; 103,336,337 and 103,388,082 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively

 

 

10

 

 

 

11

 

Additional paid-in capital

 

 

365,632

 

 

 

356,017

 

Accumulated other comprehensive income

 

 

(67)

 

 

 

168

 

Retained earnings

 

 

28,465

 

 

 

29,935

 

Total stockholders’ equity

 

 

394,042

 

 

 

386,132

 

Total liabilities and stockholders' equity

 

$

531,229

 

 

$

472,942

 

 

 

6


 

PAYMENTUS HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In thousands)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(737

)

 

$

422

 

 

$

(1,470

)

 

$

4,635

 

Adjustments to reconcile net income to net cash provided by operating activities

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

6,158

 

 

 

3,647

 

 

 

17,518

 

 

 

8,587

 

Deferred income taxes

 

 

(9)

 

 

 

278

 

 

 

(3,331

)

 

 

2,691

 

Stock-based compensation

 

 

2,002

 

 

 

754

 

 

 

4,622

 

 

 

1,885

 

Non-cash lease expense

 

 

583

 

 

 

483

 

 

 

1,703

 

 

 

2,131

 

Amortization of contract asset

 

 

529

 

 

 

246

 

 

 

1,347

 

 

 

423

 

Provision for credit losses

 

 

32

 

 

 

 

 

 

219

 

 

 

 

Change in operating assets and liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Accounts and other receivables

 

 

(9,938

)

 

 

(2,870)

 

 

 

(19,143

)

 

 

(7,814

)

Prepaid expenses and other current and long-term assets

 

 

56

 

 

 

1,072

 

 

 

(854

)

 

 

167

 

Accounts payable

 

 

(230

)

 

 

4,301

 

 

 

2,975

 

 

 

7,842

 

Accrued liabilities

 

 

 (225)

 

 

 

(394)

 

 

 

2,390

 

 

 

149

 

Operating lease liabilities

 

 

(456

)

 

 

(498

)

 

 

(1,398

)

 

 

(2,071)

 

Contract liabilities

 

 

5

 

 

 

82

 

 

 

80

 

 

 

383

 

Income taxes receivable, net of payable

 

 

281

 

 

 

(923)

 

 

 

485

 

 

 

349

 

Net cash (used in) provided by operating activities

 

 

(1,949)

 

 

 

6,600

 

 

 

5,143

 

 

 

19,357

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

Business combinations, net of cash acquired

 

 

 

 

 

(57,120)

 

 

 

 

 

 

(57,120)

 

Other intangible assets acquired

 

 

(125

)

 

 

 

 

 

(248

)

 

 

 

Purchases of property and equipment

 

 

(368

)

 

 

(261

)

 

 

(1,163

)

 

 

(825

)

Capitalized internal-use software development costs

 

 

(7,793

)

 

 

(4,737

)

 

 

(22,257

)

 

 

(13,473

)

Net cash used in investing activities

 

 

(8,286

)

 

 

(62,118

)

 

 

(23,668

)

 

 

(71,418

)

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from initial public offering, net of underwriter's discounts and commissions

 

 

 

 

 

 

 

 

 

 

 

224,595

 

Proceeds from private placement

 

 

 

 

 

 

 

 

 

 

 

50,000

 

Redemption of Series A preferred stock

 

 

 

 

 

 

 

 

 

 

 

(23,013

)

Payment of dividends on Series A preferred stock

 

 

 

 

 

 

 

 

 

 

 

(34,412

)

Proceeds from repayment of related party loan

 

 

 

 

 

 

 

 

 

 

 

813

 

Proceeds from exercise of stock options

 

 

1,167

 

 

 

 

 

 

1,469

 

 

 

 

Financial institution funds in-transit

 

 

18,276

 

 

 

6,612

 

 

 

44,158

 

 

 

6,612

 

Payments of deferred offering costs

 

 

 

 

 

(1,105

)

 

 

 

 

 

(1,961

)

Payments on other financing obligations

 

 

(655)

 

 

 

(715

)

 

 

(2,486

)

 

 

(1,482

)

Payments on finance leases

 

 

(66

)

 

 

(68

)

 

 

(201

)

 

 

(204

)

Net cash provided by financing activities

 

 

18,722

 

 

 

4,724

 

 

 

42,940

 

 

 

220,948

 

Foreign currency effect on cash, cash equivalents and restricted cash

 

 

(232)

 

 

 

(19)

 

 

 

(329

)

 

 

24

 

Net increase (decrease) in cash, cash equivalents and restricted cash

 

 

8,255

 

 

 

(50,813)

 

 

 

24,086

 

 

 

168,911

 

Cash, cash equivalents and restricted cash

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of period

 

 

217,660

 

 

 

266,390

 

 

 

201,829

 

 

 

46,666

 

End of period

 

$

225,915

 

 

$

215,577

 

 

$

225,915

 

 

$

215,577

 

 

 

7


 

PAYMENTUS HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) (Unaudited)

(In thousands)

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

The below table reconciles cash, cash equivalents and restricted cash in the condensed consolidated balance sheets to the total of the same amounts shown in the condensed consolidated statements of cash flows:

 

 

 

 

 

 

 

 

 

 

 

 

 Cash and cash equivalents

 

$

148,314

 

 

$

215,577

 

 

$

148,314

 

 

$

           215,577

 

 Restricted funds held for financial institutions

 

 

77,601

 

 

 

 

 

 

77,601

 

 

 

 

 Total cash, cash equivalents and restricted cash as shown in the condensed consolidated statements of cash flows

 

$

225,915

 

 

$

215,577

 

 

$

225,915

 

 

$

215,577

 

 

 

8


 

The following tables set forth our non-GAAP financial measures with reconciliations to the most directly comparable GAAP financial measures:

Contribution Profit

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

(in thousands)

 

Gross profit

$

37,857

 

 

$

31,164

 

 

$

108,539

 

 

$

87,639

 

Plus: other cost of revenue

 

13,277

 

 

 

9,488

 

 

 

38,704

 

 

 

25,563

 

Contribution profit

$

51,134

 

 

$

40,652

 

 

$

147,243

 

 

$

113,202

 

Adjusted Gross Profit

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

(in thousands)

 

Gross profit

$

37,857

 

 

$

31,164

 

 

$

108,539

 

 

  $

87,639

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

Amortization

 

3,186

 

 

 

1,398

 

 

 

8,575

 

 

 

 

3,610

 

Adjusted gross profit

$

41,043

 

 

  $

32,562

 

 

 $

117,114

 

 

 $

91,249

 

Adjusted EBITDA and Adjusted EBITDA Margin

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

(in thousands)

 

Net (loss) income

$

(737

)

 

$

422

 

 

$

(1,470)

 

 

$

4,635

 

Excluding

 

 

 

 

 

 

 

 

 

 

 

Interest (income) expense, net

 

(504

)

 

 

11

 

 

 

(594

)

 

 

(4)

 

Provision for (benefit from) income taxes

 

296

 

 

 

701

 

 

 

(2,397

)

 

 

5,423

 

Depreciation and amortization

 

6,158

 

 

 

3,647

 

 

 

17,518

 

 

 

8,587

 

Foreign exchange (gain) loss

 

28

 

 

 

16

 

 

 

(52

)

 

 

8

 

Stock-based compensation

 

2,002

 

 

 

754

 

 

 

4,622

 

 

 

1,885

 

Other nonrecurring expenses(1)

 

769

 

 

 

 

 

 

769

 

 

 

2,711

 

Adjusted EBITDA

$

8,012

 

 

$

5,529

 

 

$

18,396

 

 

$

23,245

 

Adjusted EBITDA margin

 

15.7

%

 

 

13.6

%

 

 

12.5

%

 

 

22.4

%

(2)
Other nonrecurring expenses consist of indirect costs incurred associated with our IPO in the nine months ended September 30, 2021 and an estimated liability booked in the three months ended September 30, 2022 related to the potential costs of terminating a commercial contract.

Free Cash Flow

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

(in thousands)

 

Net cash provided by operating activities

$

(2,730)

 

 

$

6,600

 

 

$

4,362

 

 

$

19,357

 

Purchases of property and equipment and software

 

(368

)

 

 

(261

)

 

 

(1,163

)

 

 

(825

)

Other intangible assets acquired

 

(125)

 

 

 

 

 

 

(248)

 

 

 

 

Capitalized internal-use software development costs

 

(7,793

)

 

 

(4,737

)

 

 

(22,257

)

 

 

(13,473

)

Free cash flow

$

(11,016

)

 

$

1,602

 

 

$

(19,306

)

 

$

5,059

 

Net cash used in investing activities

$

(8,286

)

 

$

(62,118

)

 

$

(23,668

)

 

$

(71,418

)

Net cash provided by financing activities

$

18,722

 

 

$

4,724

 

 

$

42,940

 

 

$

220,948

 

 

9


 

Non-GAAP Net (Loss) Income

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

(in thousands)

 

Net (loss) income

$

(737

)

 

$

422