- Earnings call transcript Q3 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen, and welcome to the Paya Holdings Inc.

Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] A question-and-answer session will follow the formal presentation.

As a reminder, this conference call is being recorded and today’s discussion will contain forward-looking statements, based on our current assumptions, expectations and beliefs, including financial guidance, the growth of Paya’s business, our objectives and business strategies, as well as other forward-looking statements. that disclosure and end the Form information forward-looking the earnings the SEC to or about release made press X-K statements refer at this of the company’s for discussed Please on be call. will filed with today occur made expectations current after obligation this our undertake reflect the only statements update call. any reflect to we events no statements All and to that will

GAAP today’s to the discussion SEC. XX-K factors we the learn the and that this specific call, could reconciliations the differ This more materially Also provided the certain supplemental actual via our will filed March financial company can section the also from You information Factors non-GAAP that and with risk the filed results during call in and Form non-GAAP our Risk release to is periodic earnings in SEC about press available are financial discussing cause with SEC. company’s reports subsequent files performance. the XXXX the in X-K the in with be measures of webcast.

the to find section the Please posted information note Paya supplemental also have XXXX in the just all Relations Investor Paya’s Relations we’ll can You a quarter third website. the described Investor section presentation of I website. of

us on Paya’s CEO, Renzulli. Jeff today joining this Now are Glenn call Hack; and CFO,

to to the Following over questions. With your their Jeff. I’ll open that, turn prepared call we call remarks, now the will

Jeff Hack

results in Paya grew another to EBITDA the In Paya we’ll results $XX.X nearly of my review offerings. led further quarter ACH the the of good then engines, Glenn to morning, conclusion total questions. payment third and volume efforts by payment results and markets operator, the our capitalize to for $XX.X At on to proprietary which quarter revenue. financial led $XX.X secular take grew reported XX% our software XX% detailed cover commerce, us Solutions revenue million, our remarks, growth two our represented Total to as continue you, Integrated strong grew our Thanks million. XX% and These growth. shift of accelerate financial financial will XX% towards and Paya’s Thank and segment joining agnostic third today quarter billion. XXXX adjusted everyone. we underway

third markets high we Our coupled the underpenetrated quarter reflect momentum to investments continue business. in results continued in our cyclical less see the end with our and growth

a for markets, reminder, exceptional penetration of As the profit, any growth not continued our our in comes principally and majority of BXB, healthcare government. vast end durable in quarter, from given the revenue partners

exception selected retention, these the pleased This growth trajectory. of highlight powerful solutions with itself by partners quarter by and was Paya’s no support great integrated in growth new quality I’m which continued bolstered quarter, in and strong end to markets. testament the which of a high primarily is of driven to value customer verticals contributes to wins each in also customer Paya’s future each

to to to business Feeding America’s features, differentiated in advance is Paya access proud as America’s due integrations and reporting by food. support to XX with America Paya America million largest X now to seniors. the relief organization including XX million domestic America include a serving hunger proud children is Feeding Feeding are customer. Paya We nation’s chose people, as Feeding platform, America as phenomenal Feeding well equitable and million ensuring capabilities. Paya’s support mission change

their existing international of a Innovation and appropriate Brands. shoe to for ERP great Global company is for larger integrates continues experience robust corporate seamless technology investments customers into accelerate is be a Ux/Ui, BXB solutions a key as while areas, XXXX ACH online remain invoices to recent enabling cost investments to growing we [indiscernible] for their was ACH, These ACH which BXB and chosen pay also of our lower AR transactions. partner California dollar systems providing Another payment often that based growth in apparel platform. TAM. example win Paya strong growth key share of and multi-trillion continued Paya key enhancement solutions, lever which at enriching on proprietary to fast allows as our our reporting enhancements track our help capture well our to on our a deliver portal to continue

faster wins also and times seeing to to we Paya’s launch trend we support. technology and been pace Paya’s citizen continue like well through vertical. transactional well are towards to in as factor operational also of pay new take relationships would important an portal. citizen software their you payments, moment auto launched to electronic with the Paya In this ability will the present an The down and the as of I innovation citizens the including innovation to recurrence, government government clients employees at adoption, our the is recently created and in accelerate with Paya’s increase at as and in portal change the sector. and municipalities municipal bill portal, made. citizen municipal was partners between infrastructure, Paya’s trend rate implementation in citizens broadly, This for quarter, is engagement has Specifically make win new easier force, to the exciting help a drive functionality. This new quickly as view make to in of vertical. on we complimented expected the and investments past for implement our sales citizens offering and direct to this well PayaGov, engagement update decision our ISP drive improving is next in continue generation More of increasingly technical next help new bills geared launch paying tuned never the is which it by

help customer aligning healthcare within and has Each and solutions our Paya client quality of markets resources across and thrive, large remain growth of office, our non-profit On includes end all changed. this such allocation, areas been of in working product talent in us Paya leadership potential. As back model and continue operations. which leverage in formalizes organic a and order growth extent, of markets fastest around execution, which remains government markets profile organized these maximize for also the to integrated course, by Paya we’ve continued addressable on and technology continued three BXB, area success. people strategic commercial end and solutions increasingly that the We, have insurance. verticals, through domain and leadership market. now expanding terrific and Paya’s infrastructure, key of focus the innovation, haven’t organic ongoing compliments of which capital gain for depth, to while We simply focused ensuring priorities M&A the people growth are is our to our our investment market To dedicating extend across operating our dedicated our operating growing finance, business, business. and and sales, to a grow speed as marketing, end teams

We continue and opportunities acquisitions. and to strategic and execute pipeline work both to M&A remain accretive active of enthusiastic in disciplined

and Glenn durable with over conditions turning Paya The strong Glenn, a Before combination profitability, flow few heightened duration way. line and Glenn? a through along it markets for great on along certain With focused over excellent the and I’ll to to walk exceptional more also in quality the solid amid it a of to balance turn growth short-term while medium-term, growth more end that, delivering of financials words is bottom driving company top bit laser you cash macro. remain the to provide sheet results about detail.

Glenn Renzulli

XX% Total third morning, delivered $XX.X financial of larger quarter. good payment volume Integrated the year-over-year. ACH results in drivers strong and increase and this Jeff, third quarter. of quarter were volume was an growth solutions Paya everyone. in the Thanks, the billion,

revenue was Integrated million, the last up more growing strength XX% Third with led with BXB our XX% specifically revenue ACH ERP growing XX% continued Payment quarter year-over-year $XX.X total $XX.X partners. solution $XX.X XX%. is was revenue up in revenue million, million, strength and versus year. services by

million of We EBITDA enhance the up versus in year-over-year gross efficiencies was gross net integrated larger partnerships. million areas approximately year. our profit expenses year $XX.X were up $XX.X versus EPS a the was the million income $XX.X loss Adjusted Integrated net X% Adjusted impressive earnings million, $XX quarter gross was of quarters million solid $X $X.X gross offerings with ACH share was payment also the first some investments rates our quarter by by the with over the our profit with ramped prior million go-to-market adjusted with million million, operating quarter realizing three continue cash $X.XX. Non-GAAP while activities quarter, as up proprietary third driven per strategies prior to in our XX% our prior operating per and in of margin see product of profit software we million, attach was provided $X was the million the up year $XX.X of year. Adjusted services the for quarter up XX.X% versus of share. partners. business. Net down new with $XX.X income of XX% $X.XX and GAAP XX%. for growth to of cost $XX innovation, other in the was solutions while growth for

the outstanding. shares end of quarter Our count at third share diluted XXX the million was

our our an of can presentation. reference in You illustrative count earnings through walk share

leverage X.X debt we with times a of $XXX below sheet, have basis. gross million in on and balance our cash trailing Regarding $XXX net million a ratio

year full guidance. our Turning to

raising remainder outlook are reflect the of our along end performance for strong the our the to year. our of low date, guidance We revenue with to

adjusted fall a call million morning. million, prepared over margin We range to million. a That $XXX this my expect concludes and $XX million remarks to Jeff that turn of out. XX%, profit to the close gross in in I’ll revenue will range EBITDA of $XX $XXX Jeff? to back to approximately be within

Jeff Hack

in markets, talent a with by another execution Paya I focused and of Paya. at end have Thank Glenn. see excellent as strong has our compelling we the result amazing reported great direct which strategy quarter, very you, coupled

a an to that we’re present future. I questions. heartfelt even greater continues So ready with to call Paya while the the building growth thanks in also well out who so take company close to everyone execute this at With operator, for

Operator

first [Operator from question comes Napoli Blair. you. of Instructions] Robert Thank Our William

of open. line Your

Robert Napoli

to and further be, do growth XXXX? you How around you highlight that color if quantify would, morning, quarter. by are with we guess, can think about you Nice do some you would how And I Glenn. accelerate this? Good maybe are Jeff you think as the that. accelerate first mean, macro I looking – being question what – growth affected you or about Jeff,

Jeff Hack

Thanks Good for things. Bob. morning, the Couple question.

I there. two different think points there’s in

macro, as we’ve terms volatile to relative obviously BXB, So consumer characteristics the non-profit of said before, some in great more first, healthcare have of gov, sectors.

which objectives, which the through And So our and define To is shows think results. can are results exceed much low that the those we there are growth in double with that objectives. and/or the you to digit making your serves today growth bottom term. our larger over line well. we’re question, I line, medium us of importantly familiar medium-term we And top other investments ensure predictability meet

Robert Napoli

the margin, profit little adjusted Thank gross – much on driving Great. maybe EBITDA revenue? bit to How growing is EBITDA how you gross margins of you. you follow-up stable margin gross margin. what and gross think – do than about Then pressure about faster that EBITDA the margin as just on and margin, gross do margin, think pressure

Jeff Hack

Yes.

go ahead, Glenn. start So – then I’ll and

Glenn Renzulli

we last Bob. that partners, have, Glenn. our revenue specifically seen really growth less story to compared those similar – come blended. some just The to Hey, solid BXB we’ve at right, our and share of This ERP the in favorable us is slightly relationships quarter,

a a we’re lower we markets that, that end those love growth gross with those And We partnerships. bottom line on side. but as think EBITDA east And and see moving with comfortable concern in about slight on BXB? bit that we EBITDA. love quarter and Are like we a end bit you expansion something because growth. with sequential ton not decline versus different the a And slight So market, of reference this we we line of from saw that you feel right. good our QX, a with don’t and yes, kind so, still quarter that perspective, and still the margin bottom really that We why, this forward. little little have of a scalability great expansion

Robert Napoli

Great. Thank you.

Jeff Hack

Jeff. Bob. Hey, It’s

said. two what Let to Glenn quick add me just things

line to growth, growth, manage been all, to percentage. don’t is question and I and we is, mix, of of observe dollar have bottom First on does all margins, operating looking little healthy consistent feel bit all moves as with We margin there’s following. provide of our in margin well, our our general growth margin we due so that And that expenses number question want discretionary you the majority to there be quickly. need as around not think of which structure gradual a Obviously, expansion focus. of cost The grow partners the it more and of to gross gross a in exhibit if underpinnings the confident we fundamental ahead. expanding the to business, would investment over simply from I for that the time, your in but

Robert Napoli

you. Thank

Operator

you. Thank Thank [Operator Instructions] you.

Our comes from James of Morgan next question line with Faucette the Stanley.

open. line Your is

James Faucette

Thank much. you very

on you on Just looking and more how balance valuations do your perspectives about sheet those current potential right think what acquisitions? like at at looking as specifically capital strong ability, and And maybe priorities around are your look and generation really you allocation? updated now cash any acquisitions

Jeff Hack

Jeff. it’s morning. James, Yes. Good

priorities and foremost, allocation capital changed. Paya haven’t First at

reiterate, our of I expectations. profile M&A. – the the to organic investments growth all think your we’ll by terms of come we’re broadly valuation strategic So environment, question accretive about characteristics perhaps just second say part more always adjustments in in gradual and observing complimented To to the first, your same

look are line solid. growth enthusiastic, disciplined and the add that deals also the right at the is, we right is pipeline punch to time are the Paya forward So to we of profile and

James Faucette

mean, I think happening volume been and thinking you recent a there – the and Got it flat about quarters, you that do and to forward. for. even your dig can while are payment quickly ACH card you’re quarters has to on relatively how in ACH guys. But how for trends driver going it. between and really looks out on sequentially because card going – Got like volume. that been trajectory what maybe want about And few I is call it. you over has then back last us, solid you thinking Any just that in

Glenn Renzulli

sequentially, Yes. a always Happy flattish us James. take type to QX of that, is quarter for Glenn. a volume This Look, typically QX. kind is from –

our last as So surprising you similar in quarter. pretty that last that’s kind too. numbers not year’s is it see And card of volume can

level at look as quarter haven’t So you QX see think but in there’s level to looking same a slowdown going And of bit for people month even slowdown growth, for out, us, And still we’re a in the are of first yes, looking year-over-year the lot into going quarter. yet. nice But growth of of the we’re be we good. think, and everything. – seen here, been quarter certainly things, I certainly, as the some see the is right? the of look, we the and growth we little to too at there’s much into ourselves a Still growth

We’re waiting to something for happen.

another about our where back solid less sequential of solid area of us, the some of on not But then for and markets think that’s profit end basis. I to some cyclicality, very conscious strong some a tend external you and end everyone’s are and really very I markets. there. it’s has going environment. think just see government them changes volatile we think player not our When you to of be play, quarter-to-quarter but And BXB, solid healthcare pretty big markets might stable for why

just when us end little And So stability. upside get some volatility to don’t those and as think I circles bit that of much things just again and it a down helps sometimes markets the well. back as slow we

James Faucette

Jeff. it. Glenn. Got that, for Thanks Thanks,

Operator

Thank you.

next Canaccord. from line Vafi comes question of Joseph the Our of

line Your is open.

Joseph Vafi

results. Nice morning. Good guys. Hey

solid the higher a characteristics vertical and kind growth time – you’re much verticals BXB payment have wondering And in just and other the some kind I the and how side over even to potentially more quite markets, that it’s are your verticals out for vision in perhaps the level us see I focused volume follow-up? lay a BXB just BXB how greenfield could verticals. on and of versus that moving you so question your large. of of all but are larger you much – and perhaps on where other it’s your Just here if focused, was relative you

Jeff Hack

Great Good morning, It’s Joe. Jeff. question.

So things. two

we love of vertical we each market invest and all of of and them see. First our in end opportunities have proposed all, manage the we

between much part and more integrations, decked a long, one. ERP partner talent sales and massive. support first the this So more the company of and long never excellence we what trading To support, the more the isn’t maximizing of potential obviously off excellence built there operational more has time. question, but is each was of course, for have them, customer TAM of been – your against is It how BXB foundation

share how earlier specific is your better there in and thing is we expertise, year, function provides. about the great the before, other a view cetera. acquired intellectual expand VelocIT Joe, it’s mentioned popular would felt you we your domain And property, that this never really we add, of integrations, that when one example et opportunity, So step have whether very I potential can

I So tons growth share we and think from can tailwind see me, and your accelerated you enthusiasm of over hear time.

Joseph Vafi

Thanks, the of dial real like. seeing then on and given great. in kind investments macro time, That’s are Jeff. back and And at a the of lot had companies just we

into Thanks customer helping keeping are to partners base driving continuing the the in a base, environment. And you to in which or you’re devote be you’re customer. your a And momentum may lot. partners in about thinking – there your from Just obviously two, resources terms customer too. seeing what their payments the wondering this what how up is then penetrate of your you

Jeff Hack

Jeff. Thanks, Great. It’s Joe.

earlier I’ll of and this macro, about Glenn’s to So firstly in tie your comments. question one

a is durability of the if managed starting you these way, the markets and through disciplined of don’t the the then firing, well be about where and hiring running you stability great Paya stopping projects company going and performance to you’re of those stay end things gyrations and need One obviously and along like projects.

keep though as in much So course, even But our see talent be is stay further. matter, business said, should great close see a as end this incredible even of attract on for to general of Glenn a uncertain eye growth our we an on Paya everybody just environment do, on focused markets, to environment don’t to it’s general, push opportunity we we mindful our and responsible an growth and investments impact of. a as

part what the chunkier great growth penetrate messaged significant tune partners, partner So this. to opportunities. your best acquirers the things around base. And have increased – investments there programs, and which of one Principally, of these lot to themselves, works, partners sales also the companies of throughout existing earlier is is are a about is our in your insight question support, their terms our continue our embedded this of of we’ve we and the training of terms penetrating our us our base, some roster second in helping in partners point, sales we bring growth year, this of marketing

to do So at companies opportunity but that add share a to even those as result, tune frankly, further. partner it and it, uptake, not we mind we only of and more get drive

Joseph Vafi

Thanks the Jeff. Great. Congrats lot, a quarter. on

Operator

question from line Our the of Instructions] from line next [Operator you. Cantor. Thank the Siegler comes of comes our of Josh – question next

One Please Mr. phone moment. is on your Your line isn’t your is open. sure line make mute. Siegler, open.

Josh Siegler

on for recent Thanks the expect initiatives, give question. payback to in to morning. timing? some us start XXXX? growth Can my contributing specifically growth taking Do good Hi, you around color them Yes. incrementally you

Jeff Hack

Glenn can I’ll Yes. Good start pick and It’s morning, Jeff. up. it Josh.

all, all first are they So ROIs the time speed – The P&L on wise which in very of vary. manifest compelling. in investments terms of our with the

in and with announced support such then innovation obviously, at quarter the that was we effectiveness. ROIs enhanced partner So in referring sure, put new penetration to, solutions that and for the sales investments the the and sales gov ERP product resources, new integrations around end longer I streamlined and just that middle marketing fastest BXB and sales as solutions solutions this

term, point where that so and where really So as expectations will and high this for emphasize we will results should gamut, we they patient company I the well. patient, that’s be set the appropriate be manage the for we run we quicker medium

up the know and everything it where do can blends is to continue that learn I look your so So double as do, know down that’s we quite ahead. but together. we and our measure all get of smarter doesn’t be and we question, of heart that where and we lighten the reality to to ROI to

Josh Siegler

color. current a the very macro That’s the regards it. uncertainty. know specifically in about environment spoken helpful you. to demand we’ve lot I Got today Thank

hearing However, is you’re environment think I’d be to Thank business. impacting macro what you. ability from new you new curious win and partnerships if your the

Jeff Hack

do of and Josh, Yes. those new I our years in in sell deceleration you to is through when an that’s climate. is opportunities, XX five, directly efforts. What macro see relative question. a longer. shift, we Remember, great not acceleration where stood see don’t efforts tell the I a those up would that our for we we see would last both We pipeline they’re even a say, do these partners not partnerships

are these really about the fundamental moment. you’ll environment choices tied the manage So the really how not business much are so to and business of

we and I do very implementation prepared remarks very as about to that of at anything in to and up continue revenue. speed adoption feel be focused engagement importantly, the help we on mentioned level So and times speed Paya good also to can we

Josh Siegler

you very the Appreciate Great. much. color. Thank

Jeff Hack

Thanks, Josh.

Operator

Thank you.

of from Truist. line the Jeffrey comes Andrew question next of Our

Your line is open.

Andrew Jeffrey

out area top and good that’s portal. good, growth that’s know to you’ve appreciate the are specifically, you times ask an implementation definitely mind sort perhaps where on comment and And questions a lot investors. Also of and I for on Hi, to new is what build that I’ll you just on return hear how to ones you like XXXX you doing about we out you investing. not I of your actually to that vertical wins thing the going government Maybe called is accelerate. models and in next these Can morning. point in bit about the [indiscernible] we or our talk and addition elaborate of been about think some wins look little one about investment and what few that the might all hear Jeff, the on some whether share gains over taking tangible of a today? as of citizen there quarters and terms you’re questions maybe think to to try we’re driving I could

Jeff Hack

Andrew, That’s Jeff. Yes. It’s a question. thanks. great

first and very So through of at any So our revenue that’s penetration all, existing remind new implemented, that important point I i.e., time of the want to to folks given contact understand. already set in the the right? majority of vast is partners, our

bringing attention of implementation It it and fosters of helpful. fosters is partnerships. terms down, support. course, more And importantly, it In great timelines

So the earlier and comments through partners about momentum. sell

as time benefits it’s a levers in other not it way, isolate as I because more of It’s while partners. efficient, wouldn’t it’s significant more driver different So it our it’s efficient bunch over in it the significant, principle more right? Obviously, by It’s it’s ways. the short-term Paya, the as growth – for for beneficial. a short-term. of efficient also,

support as the train the well. – money comes that you’ve training If if integrations, the actually you it you’ve with simplified streamlined tasks, save and

Andrew Jeffrey

Okay.

So multiple benefits, I guess.

or wins being you that is really just I than which growth an algorithm sort part the of guess out kind think of new and/or incremental. it portal, the the of current expansion I So citizen business rather capabilities called know of overall today to right is

and the trying will all gauge some this what to just out again, we doing benefits into year year we’re, that think you’re spending as XXXX. next I have on of the of look

Jeff Hack

Jeff again. Yes. Andrew, it’s

gov the point you’re I it is municipal as two right That about example emphasize in that. we’ll a and a use to the want portal I way. great of think thinking citizen things.

First and There’s be satisfaction products improve of opportunity so to static. should increase UX/UI therefore always the and and on. adoption solutions all, never

it obviously core vertically than So defend innovation end markets, or in in is folks it anything possibly each growth business further a integrated, both, can I medium-term we excellence want core and end-to-end as end whether be innovating don’t to and those feel as being key vertical rate the an the existing be core our answer about markets. vertical accelerate payment good is good that, solutions each that is strongly and the but we of quality other on always as should Andrew, should for close separating we markets. that in view that running focused out understand require to losers And I of we just is think think, these point your vertical winners that end businesses you

us, talking just and of on, end-to-end of that’s we were focus end about course, healthcare as for So tailoring so gov those markets. BXB, drives each and non-profit solutions is that is those what winning, for

Andrew Jeffrey

Okay. Appreciate Thanks. that.

Operator

Our comes Instructions] next you. [Operator of Thank Evercore. the from question line David Togut of

Your line is open.

David Togut

and XXXX which some a should it growth in model what to been in your leverage but of Thank this, think to capture terms a in real to increase you. we strength Good expansion, margin higher in the be tie is of how might morning. of investment up on growth step trade-off In organic There have did of the spending. past non-transactional year, to you spending kind questions kind decided your together ahead? bracketing trying a few operating for of OpEx think XXXX, OpEx, about year I

Jeff Hack

David, Glenn then Yes, start ahead, – go so Glenn. I’ll and

Glenn Renzulli

ahead, go Jeff. No,

Jeff Hack

then So follow-up. and I’ll a let Glenn David, I’ll I’ll point make macro – just

So cycle its each planning companies first in of evaluate to are all, investment merits. we now opportunity in like our all

the managing course statement we maximum as have over is would medium-term. What are what this for expect. top which this at to So always company I growth of is, and time declarative we that we have line you don’t make would is say bottom a said and

flow past mentioned years. inherent the investments as balance the you are company the operating We call, will continue over there latitude demonstrated our and whatever business having leverage and several to appropriate. on said of earlier the of Having been this make that, by you is and this great level provides having in think has cash performance sheet great clearly a and

about that good believe any that But margin thing we medium-term. to given selectively point, we your the they’re we regardless feel So moment the also for right strongly investments make when expansion of do over time. in will to time,

David Togut

Understood.

the spending as this might are a next investments head in yet forward at framing of terms as juncture at this otherwise quantifying? might evolve occurred investment how follow-up, year your areas we then year, of you’re Just that year this brought that understanding look not you know, investment you that in have there spending any into year

Jeff Hack

should say other Glenn we – earlier thing modestly, David, efficiencies it’s increase call, we add on the you the part of investments and did one to It’s then Glenn, and so mentioned Jeff I’ll business. again. I realized way, the guess on in by this. as

gross the than investment future itself. higher the actually of and growth of rate amount So is in in expense the

do that’s project I I at that ROI in in one markets, point one orders sorry. them magnitude conversation I to it we look growth important our but did gets And therefore We back of less by and core earlier. XXXX, will as the one an I project for wouldn’t – in lots extra see evaluate sometimes of opportunity an XXXX. think lost, XXXX in end again,

David Togut

Understood. Thank you.

Operator

Thank you.

line Davis the from comes of question Raymond John next of James. Our

Davis, your Mr. is line line open. is Your open.

John Davis

inflation play [indiscernible] given do you have fixed trying are Glenn, fee us just Just of understand kind percentage transactions transaction? Good how Thanks. guys you numbers. guys. of idea your with, a will through to versus your morning, start what an for maybe – price of

Glenn Renzulli

ACH the per revenue. is, tran past to is what Yes, a ACH guys tends think about of our little I we’ve And driven. somewhere XX% around look, [ph] spoke are aware you more be bit I in think

transaction indicator card revenue. have bad that numbers based So you revenue or as it the indication. fee point but a do gives some basis spread not on a well, versus We side of good XX% fees

John Davis

but a directionally, on we’ve Okay. lot revenue. just relative fast a BXB a the sense about a to if what verticals verticals it’s of then I give this BXB, different company? also us are lot within the right? rest how the growing there. talked know remind people, end-market us means largest of there’s and Even lot just and XX% BXB of Can And then to of lot is call, Jeff, of you obviously BXB a

as your we try and we think exposure just into of kind So go as XXXX. through macro

Jeff Hack

question. great John, Yes,

try put around little a it. to Let’s context

very the make of healthcare, is all, the there is of municipalities many as argument broadest serving broad first all that version, BXB label a practice and our section type well, biggest could its in BXB general is management. I label aspects So a business

maybe of a get Glenn there’s me So way BXB or of characteristics segment, Solutions think They’re the The Integrated strong favorable broader integrated right. same segment. and BXB to and then this about definition other all individual segment, I Solutions of correct terms don’t BXB, specific really your exactly of this solution but segment you, all provide the information the it of the their They BXBXC, even the way is if half that specifically say is the have of and Solutions and exhibiting you all non-profit get half we to in all might will and Integrated Integrated proxy. they opportunities. is healthcare, insurance growth. gov it’s investment,

answer didn’t distribution, I logistics, realize I chain manufacturing, question, your supply with guys. that would are BXB of resonate of part XX% last kinds within the the probably subcategories you the sorry, And

John Davis

a And investments accelerated we talked then you’ve as some call this drive super helpful. of look, on growth. lot internal about That’s Okay. to

range mid-term XXXX we can colors in are mean, of there. XXXX think targets kind we kind your perspective, kind maybe I or into a that think heading what any for should the color you targets any get as line and takes just, puts just of not be So guys takes next have or year, a that looking top I’m we of from on formal and of helpful. puts guidance, about mid-term would out of but

Jeff Hack

Yes, so John…

Glenn Renzulli

I’ll take that. John,

Jeff Hack

Oh, go please. Glenn, ahead,

Glenn Renzulli

about to X give the the first November good cyclical to give We’re to be little be there. and the strong think still or versus say not that’s we of We’re we’re a going why right? the big I right? macro and day, year, XXXX thing, resilient, that. markets we the specific less really a have really, Even think be though that’s guidance closer really we February whatever. we end And to in I where little to entering the need look, going right? not just more appreciate feel a to really affirmative that we’re Well, is guidance, same mean, going I foremost, going do but end not question, and it’s at I item, to

where I and to point settling mix So growth. good of economy we is think until But about any at and still the feel verticals again this it’s macro situation say see out. good the again, really economic tough the we business about and feel

John Davis

guys. Thanks, right. All Okay.

Operator

Thank you.

Our line Suisse. Timothy of next Credit question Chiodo of from comes

Your line is open.

Timothy Chiodo

Thank you. Great.

more that as healthcare, we’ve other more larger you clearly these seem to lot are competitors it the to And not about more end given players a but markets much to and about focused, they to some profit. of end past they’re be government, be stable some compete little not the know talked guys, So attractive, in not that whether much right, that well. markets, bit as we’ve that the a the talked of than markets, just pretty in volatile tend municipal, for I consumer today, end

an do changing update that quo? it in pretty up or Because in is well. could attractive at see starting you as RFPs, be terms the Are to the others would would into you it seem much any RFPs, you show players us status all? head Just give to larger of that when of is these

Jeff Hack

It’s Yes, thanks, Tim. question. Great Jeff.

very first number all, two, these So competitive fast are broadly of the end landscape one. remains markets. speaking, Number growing fragmented,

attractive is broadly. as land very a of So before, grab are share we’ve both referred qualities which than to a these more war,

it In terms of changed. competitive landscape, hasn’t

small RFPs level varies but the are also So not typically by with not it’s RFPs largest with might not mean have are you of mid often would you It size very are doesn’t or opportunities competition formal imagine. end same intensity, the it And even ones market. the processes. as and

a is but requirement So more a but sell and on formalized often the significant cultivating them procurement educating a very new both even governments partnership the it of maybe process, relationship, ERP would how integration months, by have through. year work a technical quarters, maybe more many likely

you dynamic the card see traditional same competitive might not as in it’s So present consumer verticals.

about So competitive the landscape. net-net, we feel good

a I the not success. opportunities. think strength accessibility of strength then the It’s of partners is market, about way, rare solutions, by always talent pretty of asked support, in larger the to price decision help the specifically your our to for And largest decision. you the almost manage factor names through occasionally

Timothy Chiodo

Excellent. Appreciate context. that you, Jeff. all industry Thank

Jeff Hack

Tim. Thanks,

Operator

Instructions] question Our the next Grondahl Northland Thank comes Mike you. of line [Operator of from Capital.

Your line is open.

Mike Grondahl

Yes. call to can you’re in of Hey, Jeff, give just sub-vertical, got that, doing us then you color a mentioned government and a going strategic, what guess. bit BXB When you I you just quick it through I’ll were question. little you insurance,

Jeff Hack

Yes, Great question. Mike.

I different minute BXB what or a So of these mentioned or call BXB ago like two definitions businesses. I’ll

a they BXB So middle agency other market lot markets. think the about look like insurance, think about structure,

to Of it’s aligns are Making tied you tailor policy Maybe course, as to areas funding. to a is maybe where module, meet sure a compliance solutions when there your a an needs. with it’s transaction that need funding their example. bound,

like So is we growth. BXB example who vertical to it partners software solution Paya tying have the that that I in of But insurance to another bring it compliments business great think great a value-added end back the conversation, the underlying drive earlier a market.

higher invoice, you it’s amount anywhere. think and I know all insurance. I of can’t paper imagine that check paper the

streams integrate to the opportunity quite substantial. is electronify and those payment So

Mike Grondahl

it. got Thank it, Got you.

Operator

of Our Napoli Instructions] the next Robert [Operator you. from William comes question Blair. line of Thank

line Your is open.

Robert Napoli

Sorry. Bob Can me? This hear you is Napoli.

Jeff Hack

Yes.

Robert Napoli

hear I name. Okay. my didn’t

opportunity. death, accelerating companies seen important really the guess talk thank to for – it’s – beat through of we for delayed This as the growth. Sorry. decisions. we’ve we’ve gone I about know you but I follow-up this kind some And to this quarter, potential

is take? just trade-offs. going want you how growth? BXB, accelerate tech at to more? grow growth, with What growth the you where not take? may probably not twice to haven’t some change to that, that faster accelerate of tech mean, able take a complained balancing act it’s stack with take improvement? the space. mid-teens, at to growth of in think And others there better today. growing it investing with decisions really Board at grow companies to the see I’m stack your the mean, tech to and But your I could across perception best XX%, your that it I How XX% stacks tech I it of just your as kind sure think what business market the of rate is would a Is delayed and could but stack? really from it digit about there’s companies your much low-double stacks does What growing as companies you it some is if mean tech you’re I to BXB if Is be margins does do with company. seem good rates, high I the a your that

Jeff Hack

an is Yes, that excellent Bob, question.

and So our spend solutioning, stack. feel important, by as get we the first money good the you, pace would way, could not delivery, very tell and all, of good of stuff. thoughtfulness tech about right? twice I caliber You talent, of very around much

and rate, cetera. it and stronger, of that and et for pays modernization an durability making been was and years, our have importantly never of we quality deployment foremost, of and delivery tech off and first strength faster responsiveness, in why infrastructure, quantity investment with have stack been terms So dividends the about growth and not in just question investments you in solutions technology amazing your talent well the to to your accelerate we And faster where further agree both possible. that’s been really we investing can these and where deploy but

durable question when point we your will growth to doing to about medium-term opportunities That’s investment That’s balance in those company this great mentioned we for of that off, That luxury short-term. the a – of manage cash trading flow always in business don’t much and the run. your signal Paya terms the manage sheet, to like programs sense. very distracted you moment. My increased pristine point an the macro do you a investment my company there. whatever not short You is too things a continue the manage strong have And not don’t level. a makes for climate and is, for and you be about always not for can have of and uncertain have of

Robert Napoli

mean, and that No, double such takes back you BXB, there of some that that growth double in makes that – market? investment in can increased growth I would? – you a you sense. the you if like make is so holds Is doing Or like vertical, that large investment Can that? – like what the to and

Jeff Hack

ambitions which business. That any Bob, retention of end And we is area. It often drives and part and ERP course, are that better that think the satisfaction. who are of doing wider we fundamental operational run tools integrations. but around foundation sales support Paya. And greatest the means in provide to for markets, that the at possibly tech maximize BXB everything it’s the one support a VARs equally are also in integrations, competitive provide big And the What marketing the the the important, is the this the is of great you’re see growth. same selling everything And support do. that. already set potential It you I it’s we listen, base and more strength would in growth of accelerates technology And partners is short-term to to that company. people, time, could tell want of technical solutions no, our unrealistic you almost high. to excellent you right also imagine those expectations and I core Yes, at you you drives those don’t

we of timing we are say, growth specifics do in So curve impossible enthusiasm yes, is if excited share to – that but BXB, your and we steepness accelerating question by unquestionably about are accordingly. your the and investing

Robert Napoli

you. Thank

Operator

questions Instructions] this remarks. to no call like showing you. further [Operator any to Thank back closing over Thank time. for Mr. Jeff you. Hack the I’m I’d at turn

Jeff Hack

Great. super we Thank and are very continuing success And candid, to everybody the this appreciate operator. close And look early be so business. transparent, progress We morning. and quarter joining supportive. proud to we us Thanks with the forward questions. you, continued the out in for

Operator

participating. all for does this gentlemen, Thank and today’s Ladies conclude conference. you

great day. disconnect. may You Have a now

Paya (PAYA) 4 Nov 222022 Q3 Earnings call transcript