0000950170-23-039059.txt : 20230807 0000950170-23-039059.hdr.sgml : 20230807 20230807160741 ACCESSION NUMBER: 0000950170-23-039059 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 15 CONFORMED PERIOD OF REPORT: 20230807 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20230807 DATE AS OF CHANGE: 20230807 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: 231147658 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-20230807.htm 8-K 8-K
0001841156false00018411562023-08-072023-08-07

 

 

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): August 7, 2023

 

 

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:

 

Not Applicable

(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 August 7, 2023, Paymentus Holdings, Inc. issued a press release reporting its financial results for the three and six months ended June 30, 2023. 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.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits


 

Exhibit

Number

Description

99.1

Press release dated August 7, 2023

104

 

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

 

 

2


 

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:

August 7, 2023

By:

/s/ Sanjay Kalra

 

 

 

Sanjay Kalra
Senior Vice President and Chief Financial Officer

 

3


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

 

img238123965_0.jpg 

Paymentus Reports Second Quarter 2023 Financial Results

Quarterly revenue increased 24.1% year-over-year

Adjusted EBITDA rose 183.8% year-over-year

 

CHARLOTTE, North Carolina, August 7, 2023 -- Paymentus Holdings, Inc. (“Paymentus”) (NYSE: PAY), a leading provider of cloud-based bill payment technology and solutions, today announced its unaudited financial results for the second quarter ended June 30, 2023.

 

"We are pleased to report another quarter of excellent results, with revenue up 24.1%, contribution profit up 22.3% and adjusted EBITDA up 183.8% year-over-year. Paymentus generated robust bookings during the quarter resulting in a solid backlog at quarter end. We believe this provides us good visibility going forward and sets the stage for achieving our anticipated growth in 2023 and into 2024,” said Dushyant Sharma, Founder and CEO.

Second Quarter 2023 Financial and Business Highlights

Revenue was $148.9 million, an increase of 24.1% year-over-year driven largely by increased transactions and higher average revenue per transaction.
Gross profit was $45.9 million, an increase of 28.0% year-over-year. Adjusted gross profit(1) was $50.0 million, up 29.1% year-over-year.
Contribution profit(1) was $59.6 million, a year-over-year increase of 22.3%.
Net income was $5.8 million and GAAP earnings per share was $0.05. Non-GAAP net income(1) was $10.2 million and non-GAAP earnings per share(1) was $0.08. Prior year non-GAAP net income and non-GAAP earnings per share have been recast to align with the updated methodology described in the section "Use and Definitions of Non-GAAP Financial Measures" below.
Adjusted EBITDA(1) was $14.2 million for the second quarter of 2023, representing a 23.8% adjusted EBITDA margin(1), an increase of 183.8% year-over-year.
The Company processed 109.5 million transactions in the second quarter of 2023, an increase of 22.3% from the second quarter of 2022.

(1) Descriptions of the non-GAAP financial measures adjusted gross profit, contribution profit, non-GAAP net income, non-GAAP earnings per share, adjusted EBITDA, and adjusted EBITDA margin 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.

Financial Guidance

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, 2022 filed with the Securities and Exchange Commission, or SEC, on March 3, 2023.

 

Third Quarter 2023

 

Fourth Quarter 2023

Revenue

$150 million to $154 million

 

$152 million to $158 million

Contribution Profit

$58 million to $60 million

 

$60 million to $65 million

Adjusted EBITDA

$9 million to $11 million

 

$9 million to $13 million

 

 

 

 

 

 

 

Fiscal-Year 2023

Revenue

 

 

$599 million to $609 million

Contribution Profit

 

 

$231 million to $238 million

Adjusted EBITDA

 

 

$41 million to $46 million

 

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 due to potential

1


 

variability, complexity and uncertainty as to the items that would be excluded from the GAAP measure in the relevant future period. 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 5:00 p.m. ET (2:00 p.m. PT) today to discuss second quarter 2023 results and its outlook for the remainder of 2023. The live webcast and replay will be available at the Investor Relations section of Paymentus’ website at ir.paymentus.com or click here. To participate via telephone, dial 1-833-470-1428 (U.S. Toll-Free) or 1-929-526-1599 (International), access code 909367. A replay will be available after 5:00 p.m. PT on the same web site.

About Paymentus

Paymentus is a leading provider of cloud-based bill payment technology and solutions for more than 1,900 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 bookings and backlog, the continuing competitive market momentum and growth visibility in 2023 and into 2024, our future financial performance and our updated second quarter and full-year 2023 financial guidance. 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; our ability to timely implement new bookings and recognize anticipated revenue therefrom, our ability to manage economic challenges, including inflation; the impact of future widespread health issues 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 SEC, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 3, 2023, and our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, which we expect to file with the 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.

 

2


 

Use of Forward-Looking Non-GAAP Measures

We do not meaningfully reconcile guidance for adjusted EBITDA and adjusted EBITDA margin, because we 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 our income tax provision and certain other items we believe to be non-indicative of our ongoing operations. Such adjustments may be affected by changes in ongoing assumptions, judgments, 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. In addition, we do not meaningfully reconcile guidance for contribution profit, because the determination of contribution is subject to variables outside our control, such as an increase in the average payment amount, changes in the payment mix, or the payment channel used by consumers that can influence contribution profit, and cannot be determined without unreasonable effort, if at all.

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 adjusted gross profit, contribution profit, non-GAAP net income (including those amounts as a percentage of revenue), non-GAAP earnings per share, adjusted EBITDA, adjusted EBITDA margin, non-GAAP operating expense and free cash flow. 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.

Adjusted gross profit is defined as gross profit adjusted for certain non-cash items, primarily stock-based compensation and amortization of acquisition-related intangible assets and capitalized software development costs.

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. Interchange and assessment fees paid by us to our payment processors are excluded from 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 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.

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 of acquisition related intangible assets and capitalized software development costs, 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.

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

Non-GAAP operating expense is defined as total operating expense excluding amortization of acquisition-related intangibles and stock-based compensation. Management believes that the adjustment of acquisition-related intangibles amortization supplements the GAAP information with a measure that can be used to assess the comparability of operating performance. Although we exclude amortization from acquisition-related intangible assets from our non-GAAP expenses, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Any future acquisitions may result in the amortization of additional intangible assets.

Non-GAAP net income and non-GAAP EPS are defined as net income and net income per share, respectively, excluding certain nonrecurring items such as discrete tax items, one-time expenses or other non-cash items, including amortization of acquisition-related intangibles. Beginning with the quarter ended June 30, 2023, we have excluded stock-based compensation from the calculation of our non-GAAP net income and non-GAAP EPS to be consistent with our methodology for non-GAAP operating expenses, which we believe enhances the understanding of our operating performance and enables more meaningful

3


 

period-to-period comparisons. Our non-GAAP net income and non-GAAP EPS and for the three and six months ended June 30, 2022 were recast to conform to the updated methodology and are reflected herein for comparison purposes.

We believe non-GAAP net income and non-GAAP EPS enhance the understanding of our operating performance and enables more meaningful period-to-period comparisons.

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

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.

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:

At the Company

Sanjay Kalra

Chief Financial Officer

Paymentus Holdings, Inc.

ir@paymentus.com

Investor Relations
David Hanover
paymentus@kcsa.com

 

Media Relations
Tony Labriola
tony@thinkinsideout.com

 

 

4


 

PAYMENTUS HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited)

(In thousands, except share and per share data)

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenue

 

$

148,939

 

 

$

119,969

 

 

$

297,267

 

 

$

236,673

 

Cost of revenue

 

 

103,077

 

 

 

84,141

 

 

 

211,327

 

 

 

165,991

 

Gross profit

 

 

45,862

 

 

 

35,828

 

 

 

85,940

 

 

 

70,682

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

10,907

 

 

 

10,185

 

 

 

22,560

 

 

 

20,575

 

Sales and marketing

 

 

21,599

 

 

 

17,851

 

 

 

41,863

 

 

 

34,041

 

General and administrative

 

 

8,730

 

 

 

10,017

 

 

 

17,875

 

 

 

19,662

 

Total operating expenses

 

 

41,236

 

 

 

38,053

 

 

 

82,298

 

 

 

74,278

 

Income (loss) from operations

 

 

4,626

 

 

 

(2,225

)

 

 

3,642

 

 

 

(3,596

)

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

 

1,658

 

 

 

98

 

 

 

3,098

 

 

 

90

 

Foreign exchange (loss) gain

 

 

(7

)

 

 

54

 

 

 

(15

)

 

 

80

 

Income (loss) before income taxes

 

 

6,277

 

 

 

(2,073

)

 

 

6,725

 

 

 

(3,426

)

(Provision for) benefit from income taxes

 

 

(438

)

 

 

(378

)

 

 

(182

)

 

 

2,693

 

Net income (loss)

 

$

5,839

 

 

$

(2,451

)

 

$

6,543

 

 

$

(733

)

Net income (loss) per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.05

 

 

$

(0.02

)

 

$

0.05

 

 

$

(0.01

)

Diluted

 

$

0.05

 

 

$

(0.02

)

 

$

0.05

 

 

$

(0.01

)

Weighted-average number of shares used to compute net income per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

123,378,128

 

 

 

121,637,711

 

 

 

123,334,277

 

 

 

121,269,688

 

Diluted

 

 

124,012,107

 

 

 

121,637,711

 

 

 

123,836,815

 

 

 

121,269,688

 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 

5,839

 

 

 

(2,451

)

 

 

6,543

 

 

 

(733

)

Foreign currency translation adjustments, net of tax

 

 

93

 

 

 

(104

)

 

 

86

 

 

 

(149

)

Comprehensive income (loss)

 

$

5,932

 

 

$

(2,555

)

 

$

6,629

 

 

$

(882

)

 

 

5


 

 

PAYMENTUS HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

June 30,

 

 

December 31,

 

 

 

2023

 

 

2022

 

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

159,068

 

 

$

147,334

 

Restricted cash and cash equivalents

 

 

3,400

 

 

 

2,351

 

Accounts and other receivables, net of allowance for expected credit losses of $122 and $370, respectively

 

 

67,179

 

 

 

67,789

 

Income tax receivable

 

 

2,376

 

 

 

1,493

 

Prepaid expenses and other current assets

 

 

8,998

 

 

 

9,994

 

Total current assets

 

 

241,021

 

 

 

228,961

 

Property and equipment, net

 

 

1,743

 

 

 

1,823

 

Capitalized internal-use software development costs, net

 

 

53,234

 

 

 

46,032

 

Intangible assets, net

 

 

31,274

 

 

 

36,017

 

Goodwill

 

 

131,866

 

 

 

131,851

 

Operating lease right-of-use assets

 

 

10,166

 

 

 

9,561

 

Deferred tax asset

 

 

117

 

 

 

116

 

Other long-term assets

 

 

5,965

 

 

 

7,178

 

Total assets

 

$

475,386

 

 

$

461,539

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

$

30,545

 

 

$

29,232

 

Accrued liabilities

 

 

15,519

 

 

 

15,809

 

Current portion of operating lease liabilities

 

 

1,677

 

 

 

1,462

 

Contract liabilities

 

 

3,414

 

 

 

4,358

 

Income tax payable

 

 

106

 

 

 

635

 

Total current liabilities

 

 

51,261

 

 

 

51,496

 

Deferred tax liability

 

 

864

 

 

 

680

 

Operating lease liabilities, less current portion

 

 

8,991

 

 

 

8,608

 

Contract liabilities, less current portion

 

 

5,626

 

 

 

2,826

 

Finance leases and other finance obligations, net of current portion

 

 

200

 

 

 

750

 

Total liabilities

 

 

66,942

 

 

 

64,360

 

Stockholders’ equity

 

 

 

 

 

 

Preferred stock, $0.0001 par value per share, 5,000,000 shares authorized as of June 30, 2023 and December 31, 2022, respectively; none issued and outstanding as of June 30, 2023 and December 31, 2022, respectively

 

 

 

 

 

 

Class A common stock, $0.0001 par value per share, 883,950,000 shares authorized as of June 30, 2023 and December 31, 2022, respectively; 20,199,947 and 19,934,331 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively

 

 

2

 

 

 

2

 

Class B common stock, $0.0001 par value per share, 111,050,000 shares authorized as of June 30, 2023 and December 31, 2022, respectively; 103,306,842 shares issued and outstanding as of June 30, 2023 and December 31, 2022

 

 

10

 

 

 

10

 

Additional paid-in capital

 

 

372,403

 

 

 

367,767

 

Accumulated other comprehensive income (loss)

 

 

64

 

 

 

(22

)

Retained earnings

 

 

35,965

 

 

 

29,422

 

Total stockholders’ equity

 

 

408,444

 

 

 

397,179

 

Total liabilities and stockholders' equity

 

$

475,386

 

 

$

461,539

 

 

6


 

PAYMENTUS HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In thousands)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

5,839

 

 

$

(2,451

)

 

$

6,543

 

 

$

(733

)

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

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

7,303

 

 

 

5,886

 

 

 

14,542

 

 

 

11,360

 

Deferred income taxes

 

 

95

 

 

 

(4,728

)

 

 

187

 

 

 

(3,322

)

Stock-based compensation

 

 

2,276

 

 

 

1,344

 

 

 

4,435

 

 

 

2,620

 

Non-cash lease expense

 

 

442

 

 

 

365

 

 

 

904

 

 

 

1,120

 

Amortization of contract asset

 

 

745

 

 

 

351

 

 

 

1,441

 

 

 

818

 

Provision for expected credit losses

 

 

5

 

 

 

92

 

 

 

(234

)

 

 

187

 

Change in operating assets and liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Accounts and other receivables

 

 

9,198

 

 

 

(1,123

)

 

 

865

 

 

 

(9,205

)

Prepaid expenses and other current and long-term assets

 

 

(64

)

 

 

(749

)

 

 

797

 

 

 

(910

)

Accounts payable

 

 

(1,947

)

 

 

(1,711

)

 

 

1,350

 

 

 

3,205

 

Accrued liabilities

 

 

3,640

 

 

 

1,753

 

 

 

891

 

 

 

2,615

 

Operating lease liabilities

 

 

(447

)

 

 

(172

)

 

 

(916

)

 

 

(942

)

Contract liabilities

 

 

(204

)

 

 

132

 

 

 

1,857

 

 

 

75

 

Income taxes receivable, net of payable

 

 

(400

)

 

 

4,855

 

 

 

(1,418

)

 

 

204

 

Net cash provided by operating activities

 

 

26,481

 

 

 

3,844

 

 

 

31,244

 

 

 

7,092

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

Other intangible assets acquired

 

 

 

 

 

(100

)

 

 

 

 

 

(123

)

Purchases of property and equipment

 

 

(286

)

 

 

(265

)

 

 

(353

)

 

 

(795

)

Capitalized software development costs

 

 

(8,392

)

 

 

(7,733

)

 

 

(16,611

)

 

 

(14,464

)

Net cash used in investing activities

 

 

(8,678

)

 

 

(8,098

)

 

 

(16,964

)

 

 

(15,382

)

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from exercise of stock-based awards

 

 

196

 

 

 

289

 

 

 

201

 

 

 

302

 

Financial institution funds in-transit

 

 

 

 

 

22,543

 

 

 

 

 

 

25,882

 

Payments on other financing obligations

 

 

(684

)

 

 

(916

)

 

 

(1,709

)

 

 

(1,831

)

Payments on finance leases

 

 

 

 

 

(61

)

 

 

(102

)

 

 

(135

)

Net cash (used in) provided by financing activities

 

 

(488

)

 

 

21,855

 

 

 

(1,610

)

 

 

24,218

 

Effect of exchange rate changes on Cash and cash equivalents and Restricted cash

 

 

130

 

 

 

(107

)

 

 

113

 

 

 

(97

)

Net decrease in cash, cash equivalents and Restricted cash

 

 

17,445

 

 

 

17,494

 

 

 

12,783

 

 

 

15,831

 

Cash and cash equivalents and Restricted cash beginning of period

 

 

145,023

 

 

 

200,166

 

 

 

149,685

 

 

 

201,829

 

Cash and cash equivalents and Restricted cash end of period

 

$

162,468

 

 

$

217,660

 

 

$

162,468

 

 

$

217,660

 

Reconciliation of Cash and cash equivalents and Restricted Cash:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

 

143,637

 

 

 

163,384

 

 

 

147,334

 

 

 

168,386

 

Restricted cash at beginning of period

 

 

1,386

 

 

 

 

 

 

2,351

 

 

 

 

Restricted funds held for financial institutions at beginning of period

 

 

 

 

 

36,782

 

 

 

 

 

 

33,443

 

Cash and cash equivalents and Restricted cash at beginning of period

 

$

145,023

 

 

$

200,166

 

 

$

149,685

 

 

$

201,829

 

Cash and cash equivalents at end of period

 

 

159,068

 

 

 

158,335

 

 

 

159,068

 

 

 

158,335

 

Restricted cash at end of period

 

 

3,400

 

 

 

 

 

 

3,400

 

 

 

 

Restricted funds held for financial institutions at end of period

 

 

 

 

 

59,325

 

 

 

 

 

 

59,325

 

Cash and cash equivalents and Restricted cash at end of period

 

$

162,468

 

 

$

217,660

 

 

$

162,468

 

 

$

217,660

 

 

 

7


 

PAYMENTUS HOLDINGS, INC.

GAAP to Non-GAAP Reconciliations (Unaudited)

(in thousands, except percentages and per share data)

 

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

Adjusted Gross Profit

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

 

Gross profit

$

45,862

 

 

$

35,828

 

 

$

85,940

 

 

$

70,682

 

 

Stock-based compensation

 

29

 

 

 

 

 

 

74

 

 

 

 

 

Amortization of capitalized software development costs

 

3,241

 

 

 

2,050

 

 

 

5,980

 

 

 

3,732

 

 

Amortization of acquisition-related intangibles

 

829

 

 

 

829

 

 

 

1,657

 

 

 

1,657

 

 

Adjusted gross profit

$

49,961

 

 

$

38,707

 

 

$

93,651

 

 

$

76,071

 

 

Contribution Profit

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

 

 Gross Profit

$

45,862

 

 

$

35,828

 

 

$

85,940

 

 

$

70,682

 

 

Plus: other cost of revenue

 

13,728

 

 

 

12,896

 

 

 

27,181

 

 

 

25,427

 

 

Contribution Profit

$

59,590

 

 

$

48,724

 

 

$

113,121

 

 

$

96,109

 

 

 

Adjusted EBITDA and Adjusted EBITDA Margin

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

 

Net income (loss) — GAAP

$

5,839

 

 

$

(2,451

)

 

$

6,543

 

 

$

(733

)

 

Interest income, net

 

(1,658

)

 

 

(98

)

 

 

(3,098

)

 

 

(90

)

 

Provision for (benefit from) income taxes

 

438

 

 

 

378

 

 

 

182

 

 

 

(2,693

)

 

Amortization of capitalized software development costs

 

5,120

 

 

 

3,520

 

 

 

9,813

 

 

 

6,626

 

 

Amortization of acquisition-related intangibles

 

2,040

 

 

 

2,031

 

 

 

4,264

 

 

 

4,062

 

 

Depreciation

 

143

 

 

 

335

 

 

 

465

 

 

 

672

 

 

EBITDA

$

11,922

 

 

$

3,715

 

 

$

18,169

 

 

$

7,844

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange loss (gain)

 

7

 

 

 

(54

)

 

 

15

 

 

 

(80

)

 

Stock-based compensation

 

2,276

 

 

 

1,344

 

 

 

4,435

 

 

 

2,620

 

 

Adjusted EBITDA

$

14,205

 

 

$

5,005

 

 

$

22,619

 

 

$

10,384

 

 

Adjusted EBITDA margin

 

23.8

%

 

 

10.3

%

 

 

20.0

%

 

 

10.8

%

 

 

8


 

PAYMENTUS HOLDINGS, INC.

GAAP to Non-GAAP Reconciliations (Unaudited)

(in thousands, except percentages and per share data)

Non-GAAP Operating Expenses

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

(in thousands)

 

 Operating expenses

$

41,236

 

 

$

38,053

 

 

$

82,298

 

 

$

74,278

 

Stock-based compensation

 

(2,247

)

 

 

(1,344

)

 

 

(4,361

)

 

 

(2,620

)

Amortization of acquisition-related intangibles

 

(1,212

)

 

 

(1,202

)

 

 

(2,607

)

 

 

(2,404

)

Non-GAAP operating expense

$

37,777

 

 

$

35,507

 

 

$

75,330

 

 

$

69,254

 

Non-GAAP Net Income & Non-GAAP EPS

Revised Methodology:

The prior year and most recent quarter non-GAAP net income and non-GAAP earnings per share have been recast to align with the updated methodology.

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

(in thousands)

 

 Net income (loss) — GAAP

$

5,839

 

 

$

(2,451

)

 

$

6,543

 

 

$

(733

)

Stock-based compensation

 

2,276

 

 

 

1,344

 

 

 

4,435

 

 

 

2,620

 

Amortization of acquisition-related intangibles

 

2,040

 

 

 

2,007

 

 

 

4,264

 

 

 

4,014

 

Non-GAAP net income

$

10,155

 

 

$

900

 

 

$

15,242

 

 

$

5,901