PAY - Earnings call transcript Q1 2022 | Paymentus Holdings, Inc.

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Operator

Good day, and welcome to Paymentus' First Quarter 2022 Earnings Call. This call is being recorded. [Operator Instructions] At this time, I would like to hand the call over to Paul Seamon, VP of Finance and Strategy, for some introductory comments. Please go ahead.

Paul Seamon

Thank you. to Quarter welcome Earnings and afternoon, Paymentus' XXXX First Call. Good

are on Parson, our the me Dushyant our call Matt Joining and today Sharma, CEO; Founder CFO. and

questions. our Following we'll take remarks, prepared

of include Our slides market our press Investor forward-looking accompanying where is available replay this XXXX. The call simultaneously on within this Reform on issued our and of release after Relations this website today the is call link posted was be and under on made Litigation at webcast. will of webcast being close presentation the this meaning website call statements the Securities the Statements ir.paymentus.com. company's Private of Act supplemental

risk detailed you the we our these and elsewhere with with I the SEC review safe for filings These will, business to These and the results forward-looking Forward-looking assumptions Form acquisitions harbor financial disclosures. regarding quarter and today, March expect, caption update statements, no year matters. obligation our on Form to XXXX; to the anticipate ended undertake and our to XX-K we XX, that the including them. strategies, and and May XX, materially the other differ to early as SEC ended or may subject which March report speak statements risk forth for statements XXXX; XXXX, such that quarterly XX-Q forth those which risks December Forward-looking from Note similar encourage market guidance, in with impact and in on are intent expect Special under use results set as set from annual such opportunity, Regarding believe, with of factor and Statements, other uncertainties cause filed the we in uncertainties our risks, and denote factors words file SEC. report statements on XX, actual XXXX, phrases future expectations

non-GAAP certain will today's addition, during we financial measures. In discuss call,

measures, Specifically, margin which adjusted measures. EBITDA and you review considered over our supplemental liquidity, earnings the measuring Sharma, contribution directly EBITDA from, financial or non-GAAP profit, measures, believe additional slides the release including with be most SEC. profit, Investor substitute to GAAP these each We our we useful and Dushyant comparable turn adjusted the website I'd and to, a in financial in non-GAAP reconciliations to encourage results. should isolation filings webcast, non-GAAP our available GAAP to the and in and addition today performance in call are with are like adjusted pages Founder measures With not disclosures as the on regarding of the for Relations our gross issued press for that, These our CEO.

Dushyant Sharma

business based my not. have one our a I'm view to building for geopolitical and the in Ukraine inflation. our but little note, of as not update Thanks, lot of of world would as outlook fourth clear I think XXXX so business, a that been, all since pay markets very of are whether strong be enters that. no businesses we this believe we with about it know where Paul. bills, first and have on resilient are We started sets for KPIs that quarter well is distracted, remainder that or and business IPO because and have as our bills, their the we team. essential economy anniversary. a quarterly a the is of On events XXXX it extremely including We impact We great to occurred, is regardless recession one the approach the the events saw the fun consumers XXXX. personal the from optimistic having and could is economic the we foundation across aspect or a the quick events believe

We focused effect long-term business of successful growth. build strategies long-term our compounding all and seek the a as high-growth remain to we on understand executing and on are focused laser business. We

new our to as scale, despite you and our public welcome company we view public one I our where every sit and just startup in long-term journey a getting a are As and today, us each started. company I believe success. on I and of share

XX% first company. mortgage me from our XX% than more quarter, of billion of direct nearly that unique is driven signed payments. some the clients as the also XXXX, few over We a scale, in last believe in discuss From we we services, migrations, transactions. U.S. numbers which sales utilities grew leading billion clients design per average. city increase were home period with and which XX%, were as well. $X.XX JPMorgan In an now day run demonstrates crossed the quarter comparable and rate financial $XXX companies largest less payments and performance, quarter. processing are areas which by year. during XX about are XX.X% contribution diverse complete. perspective, sales which sales our But volume of a Let increase insurance We very executing is performing Relative we The profit signed These the booking of in vertical. to to the on sales annual support this an in at partner more same the than the inclusive quarter, are require the

of said creates our we in value network opportunities digital relationships we and payments. to because bring strengthen underpenetrated before, segments for process As scale the unique have

In of in telecom We our have segments. continue partnerships. our quarters, about talked past we expansion the to establish work to relationships additional newer

U.S. care of expand industry. of we banks to in quarter, footprint division the one health our the the signed top have This five

our market, Adding increase underpenetrated to partnership the country. process. and Real health our of selling total practice and sales the on in expect in own. outside of help quarter, is that to We its our we core access with largest expanded provide us verticals efforts but represents complements six care, addressable to opportunity a estate our the about such of for areas live telecom as other significant owners in with of the verticals went management apartments we talk the partners the Illustrative direct ability systems. share one

As both and imagine, payments providers, verticals. existing powers which in as security as rent can the of pre-occurring. mention believe BXB diverse the to estate, the spot nondiscretionary and our implementation our this shows core logistics We of platform, you sweet fall our not and home breadth flexibility industries real

are migrating We to scheduled in base. the JPMorgan We client implementations and flight more live throughout our year. many and first Chase are progress completed quarter, in the the making go

expect over time. build material, isn't revenue added it this we to While

quick sales addition, build, on continues ecosystem. to and new from continues Chase deal both channel In be for more JPMorgan to IPN parties. relationship A the and beneficial our note more the

We network the to more continue add and and more expand including endpoints, BFI. the

And Direct. add Matt symbiotic Direct and results helps Biller call now more over turn discuss financial deals. volume. our help As a us is win reminder, us Direct more to IPN to the IPN IPN Biller detail. Biller wins with in partners and I'll more

Matt Parson

Dushyant. Thanks,

million, well transactions, reminder, driven Bank of the as $XXX.X of financial equates in our to processed release we a profit additional BXB with increased of to revenue, reconciliation specifically and as quarter, payout measures. in slides This profit discussion press a last line due QX grew the live contribution expectations Please the at faster than of of due customers for transaction XXXX quarter which non-GAAP $X.XX, business-to-business year. was as transactions increase Contribution measure. types. a QX in which transactions. primarily transactions, to transactions the million per mix XX.X payment tables strong comparable with of most quarter. QX and drove refer As in interchange, items in particular, to revenue increase a the revenue ahead as Contribution over was several well well for without expectations mix our in with profit to IPN quarter quarters, cash-based execution certain financial supplemental favorable continues was be last GAAP XX.X%. communications. anticipated a and transactions, directly than by earlier XX.X% period representing the XX% of was which over an million to consistent Payveris resulted same today's In the the year-over-year certain non-GAAP transaction first $XX.X some includes Transaction profit previous transaction IPN going the transactions. as of growth volume was XXXX, contribution of as Consistent increase

in throughout which above represents While these we the our EBITDA an tailwind a was to that million evenly hiring subsequent not but XXXX the This be provide internal the expectations margin. QX, guidance ramped forward the for additional completing we XX.X% adjusted expected EBITDA carry Adjusted quarters. as was audit. had the we anticipate XXXX adjusted for quarter, never provided EBITDA slightly first to for items $X.X tailwind do in year, fees to spread quarter. only full year for end and We up the

We same ahead Payveris rose slightly for operating stock for in we million these be assets amortization investments million adjusted as identified period of low additional XXXX and the Operating intangible as and last the what last expenses point the acquisitions same and track staff the associated to for expenses year other Overall, the compensation. Finovera, the in increase $XX.X with $XX.X year. period by EBITDA for was expected -- and year operating driven the are QX we to QX on expected. expenses reasons, from based to well of of from from

Also, company in due the continue in for with to XX.X% marketing increase increased sizable by we ramp impact the expense and and opportunity an adding QX expense with stock-based multifold in increase $X.X particularly acquisition, and continued continue the team, of of from expansion COVID partners. the Payveris XXXX infrastructure. marketing ongoing fading. up sales our an to to XX.X% or We to increased cost $X million our and relative investment acquisitions, in compensation. to of our XXXX, in quarter capture XX% travel insurance partnerships or customers G&A and -- increases million innovate public R&D million driven as experienced Sales market Specifically, the and corporate of expense events $X.X first

for our benefits as on GAAP a we that in net million, for recorded income benefit large non-GAAP QX compensation. tax Non-GAAP to had stock-based by well income was We benefit $X.XX tax income and on million, discrete was a EPS was related pretax Our million quarter. of driven $X.X the $X.XX. net loss EPS small excess as QX, $X.X $X.X was and

of XX, XXXX, approximately million March XXX customer as cash we decreased certain million At Cash of operating had expenses to the primarily payments of our well timing and quarter the shares $XXX.X As as equivalents outstanding. stock to of acquisitions. on increased cash had due we sheet. due end, balance common

to outlook between revenue to Now million XX% range XXXX which a outlook. We're our increasing XXXX year-over-year. represents turning year XX.X% million, growth $XXX of full and $XXX our to

We $XXX are increasing for our approximately between $XXX growth. to XX% contribution year, million profit and be XX% which to guidance is the million

is in EBITDA Our adjusted million the range EBITDA margin XX%. million of adjusted outlook to of XX.X% an to $XX with $XX

environment we inflationary on negative top As current not we've will the indicated have do a previously, believe line. impact our

continued Our pressure. current assumptions some reflects increasing and around for wage inflation guidance potential

continues than However, if impact margins higher a levels higher forward. at have on have we going could inflation our assumed, it

see you As companies couple us of We on guidance, same for XXXX. top based will for implies performance level years. end contribution the guidance past Rule the can the of profit the give our updated of believe XX technology range growth this decile a from as in high

remain and down slowing performing. how business not are about is excited the We

effective be as rate around we quarter, XX%. Finally, said year our tax anticipate full we last to

However, tax could pretax are comments. some on we over breakeven see income, the intangibles we the the book to variation of for our Dushyant call associated rate. closing the closer acquisition, due amortization I'll the turn now to to on with more back

Dushyant Sharma

what us would to win share payment makes brief To and to us different of of Matt. a Thanks, positions close, provide plan. massive the like a reminder significant I believe we

acquisition beyond. be in -- payment believe IT was consumer addressable extends wants and any This of payments the through. ability the both market bill payment the nearly we and in reach payments to pay we a the up channel massive industry. platform reoccurring transactions flexible we of Our and annually U.S. virtually estimates to to that's sizable to billion bill U.S. based meet designed alone, portion also XX a bank-based address we and at opened needs nondiscretionary to virtually creates any the and of our and With our IPN believe Payveris, access have them. billing

to for just is Our XX paying number I platform and meaningful is I payments extremely possible. BXC payouts that I'd outside is you continue that X,XXX-plus in this also their the mentioned. other like invoicing talked growth disbursement over we why I'll BXB the number invest large-scale billion bottom XX need line. to BXB on and also bullish can rather is for known all incremental industries With but of capabilities. also the call be about. for long-term now incremental runs continue us hard dropping Payout platform This and insurance payments, than The for work to to the known billion that, makes payment provide turn employees is and the to operator our clients. thank companies business, for dollars dedication but the see questions. to

Operator

Will first Nance is question Our Goldman Instructions] from [Operator from Sachs.

Will Nance

year I wanted guidance. up on full to follow the

new guys think dip around like tough your have bit you bringing last guys half clients I any that would pace comps in in I onboarding. And you still the of on of in more that half pace in quarter. what it the were what prior a year? quarter, gotten for onto of -- little year expectation combination board XX%. not months year, back and the was to as wondering, line some the sounds back to sight need of you that this signaled that below conservatism the onboarding? we've It of the And think incremental occur? later, gotten, a successful I'm is pay the you could of it happen would And three

Matt Parson

being going have I say we have to year. live still that question. changed things for than Yes. guidance and very to the in and our continue fundamental with has in view and year. forecast It's for We we're a to had our the And QX get did This able early sooner is result anticipated of kind -- nothing good we in work respect Matt. would to we something modeled. modeling Thanks, Great as it's early continue done we a I rest of and through our definite and on the go we've we'll point the I always at the year, of Dushyant, continue the this year. work year But think It's focus as kind of go to we'll maintaining It's do. on of of through rest the in team. year. and view we're the time, rest the and to in the Will.

Will Nance

step in I hear with top one large expansion Payveris, maybe the then And a since about Dushyant. care rate even for could thinking you are like we IPO. potentially about you've agreement JPMorgan relationship, to the talked about a the consider partnerships vertical the care additive the these I that to you done the mean being this a level, of when health go-to-market If back, And how deal, new line? put guess, higher drive you helpful. growth tailwinds have XX% as referral would That's I I'd that a health past. to bank. that together you it. Got And the channel lot guess guys of take in your the

Dushyant Sharma

to to brings in the created it the the is because also of which our have to ecosystem, good and seeing faster of in industry the The we go modern ecosystem, say And allows to out clip -- we I the -- was we -- us going to the to going vertical to though. we a them end been billing customers accomplish look, do through your also as have. us that. ecosystem scale we we than not Thank set allowing as smiling that, we we addition a of at here. of have any page in bring I what is stated, live any part point, Everything said done any to customer, platform last And tremendous on question. of business, had a but the was a we direct to you. able platform very companies horizontally have size platform, are IPN vertically Well, allows biller proud only which partnership result direct to and done ecosystem the before. excitement to are we're build question, we which

partners You named some the well. are other there mix the many in partners, and as of

us we not And momentum. grow And helps this are clearly our So and seeing there. raising continue the guidance. progress we're tremendous maintain to

when what day but Our by can are not it we how guidance is is, forecasting. goes even we a already more looking not at than accelerate that what we are

is an not where the overall about good but perspective, our So at guidance, least business from only headed. feel

Operator

Thank Will. you,

question next line goes go Please Andrew Security. Andrew, Our is with to ahead. Bauch SMBC open. your

Andrew Bauch

and wonder some guess the give and better off, first favorable my assume taking those guess in set forward is timing the pace I mix tailwinds if subsequent should comments quarter what you're that sense I I payment of first types rate onboarding dynamic, results a onboarding. like that clarify around your -- for if around of can exactly would I the us you mix benefit question Or what element? carry because Thanks of just onboards, why quarters? drove Matt, nice the accelerating kind the of continue. really those you these could tailwinds that And of that here. of and wouldn't

Matt Parson

the Appreciate Yes. Thanks, Andrew. question.

own the date for lay say, the some model the QX, team, we the middle in the saw on we year, had on the implementation went live, our they for a at assume of the say, from live QX. we onboarding, based all So QX, client, in we of have a out that clients let's acceleration information certain for to we that slated And client. end go of were they from when particular our go-live but

revenue all go to because them. of it they we end QX got comes we kind QX, that half extra revenue of in going were our an off But the live of along in that when to plan at QX anyway. had of means that So and month

assumptions to no that's was I from that to is, client in and at successful the because in want pipeline thing additional there's of So don't clients And make year, we different. benefit facts that sort that referencing earlier do same with what different. be are incremental All is the this live going early to in be QX. to time Will's every able the we'll question point QX doing circumstances client able implementation being with

that. able So that it's we for do QX great to were

day But clients. Then to side, say, through continue We every hard an in the on to at cost on that I doing of very from base, work it's there that, different payment credit, team make assumption QX. really can it. what mix referring that to focused we on type type was is payment higher our forward, factors saw some going different on depending and cash continue cost, to more is movement, of lower intense

not high So the we average winter being our The on because main platform we what in continue of payment additional got largely that from amount, anticipating different our utility quarters other the of and benefit we QX to about than that talked higher profit see that. the reason to kind for a we start It's are bill we're that. year point year little amounts bit of payments because paid of as of the said cold a i.e., months. the payment is getting due the QX is a in before contribution animal

energy with costs. even And bit little so of we're seeing feel around maybe some a was that macro the this more things year,

a with methods bills some the with have may credit, people paid think may were bit on their more payment higher. paid split because I They part that with and my people bills types little of put speculation cetera. et some of so different And cash, have

QX that, to just consumers bit we're with we we that's different little those behavior amounts out again, and amount respect So profile see assumptions making to because a the the payments continue going of payment see has not because are higher. of

Dushyant Sharma

as the the well dynamic I guidance if be exactly year vary bit quarter-to-quarter, misunderstood we're a described to to whole what things for could is why on focused little that. may quarters year, sometimes The I to And is we're so think but add the a Matt that guiding sometimes when quarterly

Andrew Bauch

to then heading and conversations like? are capture Dushyant. it. potentially of billers changing an follow-up helpful. the for is looking Got that mean, we're this a and if Very any mean, for I And economic better your slowdown be able recession, solutions into a I rate to of prolonged with payment

Dushyant Sharma

to itself, the I Yes, to the your including transpire that factor have was you great in time still the growth recessionary accelerating because call in business resilient about a that us call, some keep the you pay where ways and talked top question. at you environment take consumer, like 'XX, 'XX it on. on. here as the so back to can to a want XXXX, of for as into I my businesses have last where bill there's a I We lights

us. a the pricing we what would -- we recession, have somehow than we our saying I'm is saying it I'm to -- but the because designed recession You the the and there's have customers. a an that question. you have customer our And more easier pay And pay benefit on the of beneficial improve we light on. our cases. your even or to so experience that your way that way have is so not stronger we trying platform answers money light get that approach in and the we of type to to capabilities. I efficiencies on many get. to collect inquiries from inbound that even typically start helps the the while brighter to if stronger a mortgage result, that actually these actually during and hope -- even there shines also created, model as increased a case And a market, our is insurance, actually focus And times, the is But improving business there to it's

Andrew Bauch

for definitely the does. comes collection rate color. so greater it thank that focus No, And into you for billers,

Matt Parson

Thanks, Andrew.

Operator

Andrew. you, Thank

Ashwin next Our to with question Shirvaikar Citi. is

Ashwin go ahead.

Ashwin Shirvaikar

sort of with what year. expect perhaps was the I to guys, quarter, good cadence Hey regards we hoping address you you. through should could Thank

about, in me The You're expectations. of question helpful. for that talked terms aside so flows your on second and line -- system? you there I one opportunity should through example, a and entertainment you of it that expect how could Is is obviously perhaps that the quarterly mean, layout? be And set opportunities let raising so forth, the ask expansion just and then That time as sort well.

Matt Parson

Thanks, Okay. Ashwin.

On the on first you one, mean does anything? it of I and is exceeded the Just fact what play raised rest guidance, is does had clarify the does quarterly our for me, assume it the the -- expectations and that our QX thinking of the we to for change was? kind in the change cadence, out? the year what of quarters that it change question how Is kind

Ashwin Shirvaikar

Yes, the question. that was

Matt Parson

Got as expected lot Andrew's it. of stronger-than-expected certain in we mentioned, was I the we that had the I strong through as the in mix this I I We of -- of there the at don't sort of to point. response I really. the the some a carrying timing reasons factors we well, rest as No, than we're not bit that the of a QX sooner a the -- think, faster, because happening question, comfortable had of implementations early to think, well year. reason I year say a Okay. mean, we It's shift. had reason not were said, a QX. in would

QX. tough sort provide year, business. variability basis. a guidance of back in got that. our stuff got are we that fundamentally, change to to with comparisons that XX% an annual we of But Dushyant into talked grower. When some and we've going QX. QX the acquisition year consistent So we what I half obviously, And into in some there reflects The and get a think XXXX. on guidance I And into alluded of that fundamentals -- of ago, for nothing we're the expected going is we second believe kind with think going I we our the the We've underlying is the only do the reason about quarter-to-quarter because is of feel,

So yes, was of kind I the think covering one. first that

the could one, second question? repeat second The sorry. you I'm just

Ashwin Shirvaikar

that a was for wondering when is talked of right? the payments, about, I you if I you Does kind rolling included pie? -- to overall in that actually pie? was Or just example, but Yes. was could already to these question, the you've opportunities I previous overall start going similar of size obviously like, some that in to rent wanted add

Dushyant Sharma

think of great a the we have is way mean question, the it platform. I way that I advantages we considered to of it, one are this add. the Ashwin. key is have able we The built

bill are included payments. -- BXB And receivable is which the of market, because as BXC total amount, the payment capabilities, is which through amounts bill receivable as of is which itself in just the So talk trillions that is of outside just we just payment ways process. talked a significant expense, for well. in invoicing completely about, is of market and dollars dollar pretty payout that BXB significantly -- it it, goes we about opportunity many is larger in the household

what of we are So they're -- outside we both pursuing here. what are

we XX talked So to have grow to the us rails, payments, these setting it's created, built, of is in bill this have about continue work, feel we we so all the years. things like -- a foundation billion the done, the what the hard for that platform, we the capabilities in great workforce all we the have outer

Matt Parson

six of thinking certainty we applies But types grower, at it. being of that to then different add way to the Finovera, the with kind we that the on right? more kind little top that many the the it is can to pie platform were number. that and from. all of I can number that put I all of verticals, and XX% obviously And two-pronged we expand some to more with And XX% obviously approach to a about of the of bit that I in of kind -- becomes and a talk if gives is the of more direct said and just stuff, you The also XX% we've of have the a more kind us when thinking business that incremental different of kind of all meant account we a been two-pronged thing add totally it draw also -- opportunities into around but about then I IPN be from about it in on thing. the thing would network would sense it agree think that capabilities taking verticals, and I also opportunities bill We're can hits, have our bank which applies what clients, because them the

kind a things got there. successful of from we of like then there, makes that many that of to sense. it's can to things, if it And we're up get starts if draw from then wide different those So net go we've in

Ashwin Shirvaikar

And Yes. positive optionality.

Paul Seamon

I You than that did. much said more succinctly

Operator

Thank you.

question line next our John, James. Raymond your John Ashwin open. go is goes to Please ahead. with Davis

John Davis

little Good the our couple 'XX. assume continue done. from an afternoon percent profit that guys. modest I would you organic Matt, into acceleration this of growth a a times you've say impact bit given But acquisitions contribution I you of heard expect biomass, to XX-plus the

that just XXXX? kind So are drivers that to accelerate confirm and of for understand to just wanted the what just growth

Matt Parson

to we're try continue for your our more what is that's guiding not XXXX put core try working our on a there. certainly Dushyant earlier, our working understand for industries Well, the John. I partnerships. talked continue outside drive now. in we're verticals -- were in But said that's of of core to we're the we're guidance, with point, opportunities all guidance, current our the continuing like the of guidance payments and -- based the it's yet into year. to like is that opportunity. now started result additional place that sense to done six off I think day around about It's of in for Dushyant point. your the definitely paid expansion getting rent potential clients that It's things the that and we've BXB additional It's in mean to I the in to we're is And Thanks, Yes. every drive here XXXX. what but --

think very and and about We just I inbound bring what are that So bank still really that are excited on the what conversations with it's happening can interest opportunity front. Payveris.

wrapped I to question answer really months. the out the I question, Ashwin's up the over again, net with we've XX really last widened which didn't way the is XX So

banks And and more at opportunities and different, having more on verticals, business more through. partners, gives us so opportunities areas additional drive billers whether it's more just versus on, it direct to just

Dushyant Sharma

of top on a that, And base. customer have Absolutely. we

sneeze that. several is -- recent XX quarters, We signed nothing XX deals last have this including deals. to one. customers It's and most

contribute And next where these we so of could be all year. to

to to Matt so year. great excited lot business. said, sure done about a is adding we're mix the a perspective not done, from year the like And the year And is of but XXXX also is not make

John Davis

actually an inflation then basically on in could higher upon expand And helpful. to Matt super to inflationary of public Dushyant, had inflation. how a a guys that's of but maybe company. No, per Okay. questions you relatively or explain be take environment. new through, lot some understand or because just bill, are your runs costs a I'm second trying a minus take

to kind how understand on us want through so maybe explaining between kind P&L? the really flows you inflation give that, said exactly just credit-neutral or to Just inflation that of

Dushyant Sharma

Sure.

very the and for of agreements this way done we've the engineered the our take we years that has and engineer actually issue So now. way business our clients care with

there to of I too the type because methods have is involved, clients different because -- is structures methods question One actually, are get very different a that them. factors don't want it fee our technical payment to technical of payment

Some of are of payment. form regardless the of flat them

themselves some on cases, is end change ability that's percentage benefit we charged is And getting we and in. there flat we our to where able in the of be well, all for the And our is, some back, variable. we the a Our those But and of billing rate we they're cost fair have inflation money, still company share want while the is a company, our don't has in margins to payment regardless in due amount which been get And get fee, a structure are very or collect are -- we happen cases, to as that where of small transactions. the by if by capabilities the as pricing. have want there raise the that in the which inflation more cost affected. well, very they charging bills, because raise to the by already understandable able agreement clients built making by those the through to it's higher the getting

as as doesn't that actually. us much So will it it doesn't appear -- affect

Operator

you, John. Thank

Jeff Wells to is open. ahead. with next Jeff, line Our your Fargo. Please question Cantwell go is

Jeff Cantwell

being see of us I'm the release confident here for really my the out what Is you I this stood these call, guidance, have given made companies is you're as way? that the side of for questions want real about One your macro other quarter. us operational something and to the guide? positives taking new what to to now, about And of economy the guess, quarter? here, the many joined thing on how understand for you you can the positive us have Is remainder thanks what Thank at what given is this many allowing give just the can it? view And ways, the calls. as clients trying especially on see and far it will me that this sort raising that to year. is many you as get about you you help it momentum Thanks. to in sounded have heart thinking point you I highlighted the

Matt Parson

to Glad and Yes. Thanks, fold. Yes. part to the Jeff. here. welcome This the group have is you Matt, of as

Obviously, in the their on because focused the resilient a nondiscretionary the at been we're have hit macro, of payments, in business essential business. our fronts the saw I bit think it's but space very the keep bill not a kind a pay business. of multiple the when insurance bit recurring to customers own live any impact earlier. need COVID bills. of did really their to little it of macro, of a that little because and tough we flowing to lights the They all in really on our everybody keep people getting But their because slowdown a focused was was we and the to COVID They to need et the to slowdown beginning on still things had cetera. year mortgages, to bit start So beginning at on signing at see Dushyant on And new platform on. business payments and

so is the year to in results bills. little to may uncertain, pay that's the that thing got And us model, people think of even in that their resilient macro is seem the reflected rest though one our QX very I and need it to and a a constant, continue

don't the as negative think have guidance We raising we reflected it's year, far as that, I any impact that. to from not negative a see the the impact. that in seen for expect

In to and can't saw a to We year that the not, announce, execute reliance one we've we on in questions rest addition to, actually, of do on being and kind the continue client. internally to ability live clients huge QX to what our added back of all getting it to our on there alone. faster, the or that's there's that the through again, do earlier and And implemented. able related it just things keep to back pointing the ability of the again, continue

It have of them. on. within all things internal going be the and got We projects, a has million of partner bounds to kind their they've to priorities with and

of full within out how hire within And tomorrow that. and we our clients. ahead. to many to to do so We're them also get if speed have to control, going we completely need But bounds all people figure work it the be was our live I'd like

of from partnership it's good we aspect about put things place, from But feel of the in the it. of everything see rest kind year. so behavior bills, people we a the -- And of we definitely we that paying their

Dushyant Sharma

display we if a those you And and essential bills. speaking and collect the and businesses these investor in were efficiently is and you your stronger company question in need the have turbulent collect Both things, improve have a to XX portfolio, this -- in customers. you and money a company And times and grow have we build, is also at platform are during during example, to experience to for money provide, biller have whatever company companies you Paymentus like the billing these, even which about, as the of to designed If, of it broader recurring private may think bank I through what, our to pay bit continue little -- allows things. sleep is other for a a look to we investors actually gone COVID, better. And today couple to broadly. will to this, business. add the during And economic you a were

financial We the thing same to have the crisis.

is business have trying things if I'm bit a what internally, that little inside, doing there's the side So of really you we market is to say the of take aside, really business well. all public experienced, uncertainty the

Operator

Thank you, Jeff.

with the Tianjin Our JPMorgan. is next Huang question

Please go ahead. is line Your open.

Tien-Tsin Huang

with inflation urgency they're so build about. I'm ask the or reason raise want asking to and biller on to people perspective, feels have much. accelerate you a to biller think the John's promote AutoPay to just question I'm seeing from a just as been Thank help. trying big of it I whatnot. like could going you understand you? work viewing billers how and Are to to side sense want uncertainty a that with a of be It you

Dushyant Sharma

Yes.

so decent is at I like if frankly, from itself look think -- it situations in these, and -- you the COVID, memory. pretty

could for least reach how to I they can if AutoPay to. are So faster me make designed standpoint. at be, in in would that the our my more designed you pitch would have as end. It pay do to to The your ability And who but that times they it collectibility a change customers market lot the So a -- say, easier have it, sure it to otherwise? to not a doesn't AutoPay, so cost are who concerned do customers this, a like in is in make you broadly? on that will look believe customers with for are companies billing a they take if whether to have -- everything than about how or our like it I the money from make is platform, brands they to way platform example, coming you situations we you collect not multiple for itself, at anything it as is for well for, case faced it have pace than customers do the on it is were

with can we do integrate will this already systems integrated the work we place, with in have framework We and hundreds advanced have we and you. of because billing all integration we

of otherwise paradigm doing all While because the reach shifting out to we reach able ecosystem being integration, of not who have built. modern just we customers the can to the

terms and to wherever with is So resonates to minute, multiple customer company. therefore, extremely customers the this. that customer the -- makes to of the us a why for that the a pay. including it gravitation pay, And them well giving in easy ability there at and payment billing are all options, And last towards options including that's

Tien-Tsin Huang

mind. don't Then sense. just Makes follow-up, you my quick if

your there's given new investing general? happening development Just world? the a what's were establishing on the -- reinvestments Just about what's and months you perspective, product have you product you a in ago. of side just know lot focus curious about product maybe from that makes in in I sense. Are And verticals. What changed the thinking on partners six

Dushyant Sharma

product. the in investments make to continue We

that -- customer a specific we the how customer pursuit. -- that -- never-ending operate it's billing what improve the have do industry a and advancements from the billing it exist place all standpoint? at lowering to we do And how to the company type the really We goals. their that to some billing platform of tone but billing experience How of from own collect a how for of investments the capabilities two the so cost company. company, And cost -- perspective, customers both teams it make the experience? all have set do and we We also we from which take the to or the the in When should area. for provide -- for a look while you ways, should are the in as companies, customers staff we should how serve perspective,

we you velocity area the I'll other improve we on an is how example. The onboarding. give actually heavily of do are focused

Like We could making tomorrow. onboarded point onboard have even to our XX% in entirely our change almost, clients, without system. a our maybe and earlier, onboard we of we was be clients XX%, anywhere them actually it more, could control, could single if Matt's in

well the the that about to these without clients remaining takes complex to get get in for through make comfortable enterprise-sized the done time XX%, XX% deployments without we are it changes close go complex as the is for sophisticated and However, process. investments coding. making as our to many What -- platform too sure workflows also able to could making be implemented are

So as we're making some changes there well.

So forward. you that will hear we see more about as but more you'll and and go more more

Operator

Thank you Tien-Tsin.

your open. is question proceed. Dave Dave, Please Baird. from final is with Koning Our line

Dave Koning

comes are business out time, of this at wondering, wanted quarter to Yes, you've clients you've like different a a mix I mix before stabilize? just down actually create different over long the hi bigger It we down went at that's -- gotten where different time. I yields? gone in. is a that like been And then coming kind at I'm a, about down so think And of contribution starts guess trend as much the profit is the -- levels, different review And I talked verticals point to per thanks a guys, little. in naturally this transaction. last

Matt Parson

out. said, step pretty the XXXX in questions. QX. we and maybe the the I of reason QX it the step It's saw QX a remember it recall, of and where if reasons are I reason can't pretty bit was, in but QX. in early conclusion, if We there's was BXB, a was were afterwards, step-down down consistent or the for I which seeing move One One we're payouts, of Dave. clients Yes. And from I yes there couple it based. in Q&A profile. different down said Matt. be little for live QX, going we that or we couple one we to -- questions, I more the that think all of a a was said Thanks, the cash call some And them play end good a -- a to at a Yes, stabilize question. appreciate for QX of expect saw you it's with for lot the large had included both and

We And clients lots have. transactions. a typical had felt clients profile and different so good direct than they very because pricing large they were of a very biller

an down is big reaching we've a -- rate is. client the that that about just point simply them. slow are to going an We're with larger down that level where implementation the kind those our that get the -- There's impact going growth large medium-sized caused kind time X. They profit we in stabilize. associated with good certainly it's you expect are contribution add felt X a or overall you anything addition period the don't current average small but of that's also, of down, in so size in up again, talked what economic It's of step the we new transactions average. that with level we you about kind really sort at We our a think factor internal in pulling have the clients. you of did, of is of to transaction the the of organization. effect -- will consistent dramatically. interchange some. IPN a other client And it if And size didn't the because client, of once looked and X nature Horizon a we profile so where terminal purposely progression point to and Horizon see in Horizon of it but new network and our felt moved now of some per the large in which pipeline the to priced started doesn't two is there then when in of and fairly have every on And then have And But portfolio. like

detracting point. overall that be to going not they're So to

of QX and -- right of remainder in the driving behind XXXX, think, the still QX it. same. I I be where kind what's we made, expect we comments the that's is and with the So change teams QX Nothing's consistent still changed which there, of But thinking we now. are to are to kind pretty our

Dave Koning

quick it's Got really up maybe Sales last and correspond lot, a been the a you. few turned And with growth. in follow-up. has quarters really, just revenue and good marketing

where get there So it, is a point it going levered forward? but a starts I bit to get little

Matt Parson

to invest Absolutely. the at put in And as we're because continue business. the we're between I in some -- kind on point that of investment of will taking and sales as what to of be. say marketing That well higher our costs you're the going we don't I particular seeing kind some want Payveris of there. is QX. We say in a we ongoing purposely at What say would to of the it sales push end was quarter kind and XXXXin spend marketing, first the of of that of is and full of -- was level investment than purposeful I

kind So I it quarters. will you forward, expect of more from couple what the we of saw over last get and moderate this leverage out point to start see definitely

Operator

this Dave. for time registered Call. you, Paymentus XXXX Thank your Earnings participation. Thank are no There concludes further this QX questions at so you the

You can lines. now your disconnect

Paymentus (PAY) 9 May 222022 Q1 Earnings call transcript