PAY - Earnings call transcript Q1 2024 | Paymentus Holdings, Inc.

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Operator

Good day, and welcome to the First Quarter 2024 Paymentus Earnings Conference Call. This call is being recorded. [Operator Instructions].At this time, I would now like to turn the call over to David Hanover, Investor Relations. Please go ahead.

David Hanover

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

is on Kalra, our the me Dushyant our call Sanjay Joining and today Sharma CEO; Founder CFO. and

questions. our Following we'll take remarks, prepared

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

denote for we forward-looking forward-looking XX-K harbor with statements, to We SEC future with or expect our the review statements use on Form guidance, our the matters. impact set market and you enhancements, results for quarter and regarding impact update statements product timing, Form risks, risk SEC. words file reports the disclosures. risks and in under shortly our expectation those no XX-Q and these and year as other strategy, are March and regarding financial our results the report uncertainty, in statements our economic ended obligation that XXXX, cause the to and Potential subject opportunities, XX, Form detailed factor including address XXXX, safe expect, continued on such from we uncertainties business to them. actual that our which implementation our anticipate geopolitical ability filings XX, risk of forward-looking note from statements believe, of materially differ intent Forward-looking statements including to phrases will, These and and encourage may elsewhere to quarterly and other forth today, the and assumptions undertake factors and These speak such uncertainties ended XX-Q, set captions acquisitions subsequent similar as forth annual December in the to

will webcast measures, during net in In per These adjusted not are profit, liquidity addition, non-GAAP and discuss isolation performance EBITDA press the non-GAAP encourage these and website. this earnings CEO. believe Dushyant? Investor financial non-GAAP measures We results. be specifically, contribution GAAP you GAAP certain non-GAAP over adjusted including addition disclosures the measures, reconciliations for slides today's in call, from financial gross our and operating additional page margin expenses, release a income like we EBITDA, our non-GAAP profit, adjusted measuring earnings of Relations supplemental comparable each call today to which review considered issued I'd and useful that, turn our we substitute regarding Sharma, share. most and directly Founder in the Dushyant in or for as the available should to our measures, to on to and With of

Dushyant Sharma

you, David. Thank

of quarter. to and our growth of to off top EBITDA delivered contribution profit ahead adjusted EBITDA, in growth. great XXXX XX% are and revenue in long-term We first line a a We start adjusted year-over-year XX% all with strong targets XX%

In We added remainder and that us quarter gives XXXX, the in of exceeded again continue substantial the about results long-term the XXXX, our delivered have to excitement our momentum year of prospects. which Paymentus first expectations.

$XXX.X up million, year-over-year. was First XX.X% quarter revenue

was for in up XXX.X% EBITDA, strongest significant know, First you year-over-year, quarters. XX.X% year-over-year. $XX.X $XX.X of growth as metric X which us, our is financial million, up million, was quarter contribution profit a Adjusted many

position time, same backlog same the $XX.X and XXXX, EBITDA. us XXXX. that we of addition At a added a In million adjusted we believe XX% dropped that or million a period strong $XX.X in contribution for over quarter profit last these first In first growth the we of well outstanding year. the with to to we results, quarter quite exited strong bookings the implementation also strong

contribution pleased line. ability significant or our doing believe key few to that our once operating margin consistently so this the incremental a leverage are our strategy dollars over wide allowed operating disciplined a us by We our the to strategy past of again a to profit quarter We Execution XX. well without continued to expand this quarters, demonstrates have at bottom our XX, surpass as strength of growth of sacrificing innovation. majority has we rule of as drop

top high-quality have we growth. delivering As previously alongside remains solid line continue to earnings at shared goal Paymentus, our

are last of we and expect execute over to line deliver our top adjusted long-term EBITDA to to continue and have we and achieved We date the and growth. what proud several quarters, strategy

share Now to like highlights of key accomplishments. our I'd business and first some quarter

mentioned growth. our year-over-year earlier, with I XXXX QX are finished with As backlog strong and very we a pleased

IP participate of to clients diverse Of which all platform broad onto and course, our driven the our this strength be in merely technology enables continues and by of network and by ecosystem, our platform. integrating to our a

quarter a of in specifically signed. This the great to clients activity. client terms for value of number both Turning and aggregate Paymentus, bookings was annual contract

transportation first we clients financial services. of and logistics, utilities, verticals, quarter, large notable including the a general signed During new several government in and variety services, and

and these to new customer diversity bookings, see continue gain As across platform our us from omnichannel to broaden allows industries. traction our you can

our focus investments, improving for And us collaborative in-person this, along continue targeted investments effort more to allowing a support conditions, to continue staffing this we and This backlog a for provide good in in growth. tailwind on continually process believe to even incremental is in drive area both in make the is this progressing further regard. implementation we area and post-pandemic We technology. with Another strong to order well. onboarding these of

of onboarding verticals, including success utilities, including realizing investments targeted the clients and several the We implementing insurance, of evidenced large by government across financial various clients as the and are during our focus multiple first institutions. these benefits and in strategy new our quarter, launch agencies

in XXXX, our plans throughout make internal to growth with consistent area expect and targets. this further We progress

In value call of through such shareholder recently continually to we is financial intelligence. we increase artificial a patent our execution One long-term to addition strategic core example execution. what our awarded think the ways business, on about

know, industries, thousands is a one you key in and deep experience done resulting of of number our integration across have strengths, As we integration and assets.

operational time, at While is threefold. in before our reason the with filed to about clients experience expand ability was our more we a us. buzzword, their conceived are talking use can this of And framework, for while efficiencies of an integration mainstream processes the AI-based our bring their and integrating platform internally, by AI with a which combined an significant when same provide we assets tremendous patent

defensive this and market First, looking culture we our strategies. on focus believe demonstrates strategic a with offensive forward-thinking ahead both

possible the usually by efficiencies Second, improve clients exists this onboarding this speed is years. Paymentus and in efficiencies. tech in mainstream believe the we internally internal AI-based companies. strategy, execution the third, their that of and can fully outer rare of expected into when processes our enabling is customer add to deployment integrated experience part externally generally onboarding operating our to of central framework, by type trait both And because additional strategic enhancing and a that has We primarily AI large experience prudent believe towards our benefit play

outstanding closing, Our returns create to shareholder to are In us business but execute innovation. additional also to of leverage expectations. strategically the revenue we time, or were shareholder to allows has sacrificing growth proud ability ahead results unique to At of in operating consistent period demonstrate original value. that another without same our our to year continue increase long-term of we deliver visibility report

strong with and visibility the disciplined remain solid we momentum, for growth. which We to backlog, in quarter and in the us giving We intend also to balance sales backlog onboarding our our focused ended future our continue expect a year. and fuel the confidence prospects to of strong greater

to Sanjay turn detail. let it in financial results greater Now Sanjay? me review our over to

Sanjay Kalra

and you all us thank Dushyant, for joining Thanks, today.

I financial our full be to outlook, quarter like second Before that non-GAAP year and the to and I'd everyone include first results measures. results financial referring remind XXXX I'll discuss our quarter

reconciliations of and are earlier, As on presentation the earnings of on measures. to includes the these call our David non-GAAP website. QX release this corresponding GAAP measures financial Both mentioned our discussed available press

X. Slide to Turning

quarter XXXX, demonstrate the started by For existing transaction very both the activity first and continue new we from with stability quarter strong to driven higher and our of results, of off results financial another year resiliency, the these billers. of strength believe We business.

$XXX.X of Our adjusted contribution first revenue profit included million, of quarter results and of $XX.X million $XX.X million. EBITDA

our and cash discussed enabled I than results of in drivers and momentum position. once in the quarter shortly. backlog This with came more a originally strong the detail exit strong again us business outperformance Our to we and expected, higher

financials in quarter Now let's review more our detail. first

of of year-over-year. XX.X% transactions earlier, This existing by was The first new with increased revenue our from XXXX from quarter the As billers, grew activity $XXX.X I was quarter, billers in largely year-over-year, revenue up instant million, launch number largely growth. and driven increased to $XXX.X line growth transactions XX.X% first mentioned business. million in network up the our we payment or IPM processed

despite per revenue flat the addition bidders average at Our of transaction remained the large throughout year-over-year past $X.XX many year.

year-over-year launch of higher first expectations. increased First contribution year-over-year. and of profit XX.X% transactions the increase quarter our the quarter $XX.X profit profit in surpassed million, new XXXX Contribution contribution existing XXXX reflects This up from to billers in billers.

primarily X key across quarters. terms higher by X during This In transaction and highest than had driven quarter quarter of the fact, outperformance we in it initially factors. the from was growth was reflects our expected growth past growth year-over-year

adoption saw from the first to due are growth success. First, quarter, in strong primarily who we seasonally existing billers

transaction pricing were Second, seasonality. of was driven we mix, billers that we ongoing to that biller quarter XX launched Contribution result the margins with prior the And period. our a third, review. transactions period, an new QX and from profit pricing the benefit transactions was had the realized year prior from implementations which improved as $X.XX, some the quarter of saw $X.XX billers in repricing in versus improved improvement primarily year for from during contribution increased reflecting efforts new per incremental the due by

changes that profit performance our and subject diminish the in amount, the influence have basis. mix, in cetera, can it fees, the such per card control, we in average and as the biller of outside CPI is view significantly mix, transaction a quarterly et metric. profit network and on as an payment variables we As of to stated Because a increase past, contribution secondary utility payment contribution

adjusted quarter contribution gross ahead benefiting started up we million, year-over-year, $XX.X of scale. as economies profit have from profit growth First XX.X% slightly of XXXX was

expenses was quarter and First operating to as increase million, savings and $XX.X X.X% increased up expenses This general research of costs. due marketing development and administrative year-over-year. primarily sales expenses and realized increased net non-GAAP XXXX to expected in

strategy go-to-market sales guidance, in marketing our increases strong support which to focus expenses and our on the investments backlog. in bookings more continue review of throughout detail further to we increased of into execution already incorporated expect strong expectations the I'll pipeline as in and These We and our conversion onboarding shortly. year a resources are of

First was quarter $X.XX $X.XX net per share per income compared income XXXX prior of $XX.X million $X.X non-GAAP million in or period. the non-GAAP to or year net share

adjusted compared First $X.X EBITDA in quarter year. million, was up prior to XXX.X% $XX.X the XXXX million

EBITDA previously growth XX.X% XXXX Approximately by growth profit it in quarterly our XX. demonstrating provided our This to coming and adjusted economies compared of seriously, business. for XX% rule and once is prior the of profit EBITDA, contribution strong in XX%. of scale. guidance to of the bottom XX in we quarter leverage consecutive contribution quarter very First in profit This take quarter, driven we adjusted exceeding very approximately the again, performance the strong the This very primarily contribution is at in team fell measure we inherent XX.X% our year-over-year a line to Rule of year. to Related exceeded represented the contribution operating profit monitors of was closely. also fourth our here compared this, the

accruals cash growth that acquisitions. is million financing ended of and million million I'll net cash primarily by $X.X the discuss of internal of $XXX.X year-end prior X. use at from $X.X Now on the the million capital, during in $X.X used and for seasonal $XXX.X is working operations million And year. compared balance from cash quarter generated invested are prior position does holdback of as liquidity The of end normal for of activities, quarter. a not have our for innovation. trend first which activities, primarily currently company cash and primarily to Slide million of capitalized million was Note of $XX increase used liability investing sheet to any equivalents the out We last paid debt. generated operations, comprised majority first million software The drive in $X offset with settlement $XX

during generated flow cash $X.X was million. free quarter the Our

for XXX.X first XX end outstanding of to was stock days Working was at of diluted range. days months end days March exercise had $XXX compared vesting million the the and some shares within for the units to XXXX, increase The outstanding largely quarter X capital diluted XX, expected the during XXX.X ended quarter stock our of the December first at X compared quarter QX end million, employee XX sales restricted QX an due stock price average of the due extent increase of Our of approximately improved ended options. months to We from to to XX, XXXX. shares outstanding XXXX. approximately and million was the XXXX, X% at

full contribution revised QX EBITDA Slide adjusted year and and on to Now for our I'll profit guidance XXXX revenue, XXXX X. turn

full I followed guidance still continuing follow discussing and is prudent as that approach to environments. XXXX of larger mention we year to macroeconomic that the want geopolitical are guidance, around there same uncertainty we a during Before the degree to

of For range $XXX the of to finally, And million, in of $XXX the full midpoint year up our from million, Contribution guidance. midpoint profit expect X.X% adjusted guidance. to up our midpoint of of previous the previous of $XX EBITDA in we $XXX $XXX from to range X.X% in million, previous range million revenue million up the $XX now from guidance. XXXX, X.X% million

we the $XX to now in $XX on profit and EBITDA in million $XXX of revenues in the the XX, slide, QX Contribution of $XX million side reflected of million million range right to the expect for $XXX of to million. As range million. the adjusted range $XX

provided to past financial revenue few and primary full The the guidance targets the both and annually. our approximately revenue to we EBITDA X During provided today adjusted between that dollars XX% annually we long-term reflects these year XXXX of stated adjusted calls, was at achievement have grow XX% growth to We our EBITDA XX% earnings grow over for have for metrics. long-term expected goal targets.

remain growth. dialing of annual operating an the necessary, attention a demonstrated Throughout We reported and suited consider financial in is operating throughout managed year profit contribution In this revenue have well operating secondary the X of turn remarks believe we to today. rule it to upon manage we us which quite back expenses, the quarter on how our strong expenses for your again in XXXX, them manage we to first contribution us exceptional ability call our EBITDA, as we well Thank a Dushyant given quarter end first results. or we the contribution and final we trending actively XXXX. and current everyone, and plan the we questions. footing Regarding strong XX profit the in now before positioned backlog. companies cash solid past depending this generate up And open up Based leverage. for to for metrics. quarters, consistently are are adjusted on bookings down We enabled basis. believe to profit, to to well XXXX for year, visibility, X first quarter the you, and strong with This our enable continue to we substantial summary, I'll

Dushyant Sharma

business performance last clearly Thanks, year. we extremely this year our of the of that and environment. resilience for platform macro entered with I original and and second XXXX. momentum despite our team a operating difficult And the just full geopolitical Sanjay. our I'm expectations. guidance model, our technological our the XXXX proud solid the covered quarter illustrates innovative In closing, ahead the Sanjay again, from once strength believe our is of

great we to As I we are I based overall date of we about have the necessary very believe feel I success investor, on strength we performance our feel and something team are now special remarks. the efforts guidance for about of that getting open And building In also that all and an shared the backlog. continued this want all line especially note, I dedication. just questions. to And that where good concludes business, members here. my earlier, started. and very we as built prepared I'll thank our we pieces as are essence, and headed. on are up long-term our We for On reflect their the for

Operator

Instructions]. [Operator

James. question Our John first company Raymond with comes Davis the from

John Davis

this will guide tougher the came nicely the back year, to understand down and comps rest the margins wanted if and X It margins. implies will. of start ahead expanded I be X,XXX Sanjay, about you kind in year-over-year but get the on basis EBITDA year-over-year. throughout quarters, points quarter of I

So takes about the of of I but given rest spending the those the through bit little and the guidance. just conservatism, of on trying the maybe talk year stuff to some some on, a understand full appreciate money you're year, and margins puts

Sanjay Kalra

which would plan. during QX, in could expenses, which And I John, XX.X%. expense margin, while definitely at would adjusted year in see well, that imply. That's strong are our we year you'll improvement the the of is the And from they quarter, in have would with slightly still around. I caught up delivered full very midpoint, came as QX QX, operating at for say you the what one we for guidance is XX.X%. say the This EBITDA still what an changing, will is I move would the things reasons not that see full we last year. say at operating

operating guided we percent earlier, only go the we X.X% And was the to whole just year-over-year. year, up X got year, full for planned OpEx up for are mid-teens ago, as year-over-year. months We expenses up year year-over-year. Last on X.X%

are the quarters. we catch-up we said, entire the remaining some plan will in be in X to up catch So year. we for the That able to assuming do OpEx have

and actively right to will sales and fill positions, the we We have candidates which seeking there, marketing. make to progress mainly in are is

So quarters. on softness the But in again, all that's, in. you slight I say, QX the and are guidance piece, compared would the the climate to we geopolitical factors is see a X which where all macroeconomic the outer based whole biggest prudent

So to said, full marching say. year. strong would on That I plan it's a we execute deliver and are prudent,

John Davis

Sanjay And question. other just guidance one quick modeling

given also guide, sense from XX% to basis XX% revenue are versus XXX but the So I what the basis X,XXX Or revenue the the about a implies makes it growth. point curious CP think the second why is decel, in in guidance. XQ profit growth around practices pieces much just for point revenue the your decel historical I I'm moving slower in contribution there? quarter? so decel think XQ

Sanjay Kalra

John, there profit. revenue One, X the on on are I contribution and one questions. think

outer trends me up revenue. said, and i.e., over Let at say and we than to is QX hence, much generally it's And there, year, This look one past and a are seasonality QX top when time. because pick a QX line, QX, like similar due but similar on looks years, was experienced the take They you generally, better to QX, not much pretty in QX are QX But would due seasonality get we was at seasonality. strong than said, QX, That go our are I in part QX if not revenue, there. at a QX QX XX%, guidance still are implementations. drop. what we in expected. benefit lot midpoint upside might way have are which things seasonality And and went we about up an in the feel on more have QX a of had basis see approach. we we that We're implementations, good seen would few prudent falling not we the going pretty still, But you well, that. how QX year. the of small happen, growing. factoring But it year-over-year points is

while we And and mix, as mix, on in the stems part is other quarter these Let profit say. secondary biller contribution XX% on does metric. from contribution the totally John, tried that's quarter all changes profit saw contribution make our bit topic, me of I to profit. under in as amount, And average bounce around which growth things well. could profit our the a control. payment could which as business looks to happen This higher I'm second say question increase primarily reason call why mix, one XX% the than we one go the explain multiple like of on earlier, also is strong the growth There's not. the it we QX, basically payment of in This that in not factors. contribution And is, the due as approximately. would this I'd quarter-over-quarter, to revenue happened approximately past And year-over-year, has little

QX it happened. of fact, In QX, QX it 'XX, last in year and happened and

So than revenue still they are at whole are contribution could it conservative year, the I But to in times, calculation and would at the it higher be topic, we pretty XX%, both trying the end and to are revenue both lower. take of times more say could a than profit. much posture be for lowly aligned, and contribution profit

Dushyant Sharma

And of we the scale mid-XXs. XX on midpoint, are the at in route

Sanjay Kalra

are XX. We and XX%

John Davis

one is growth. And . last to The the in you prepared guys called IP a remarks one, Dushyant contributor for one out quick

and show is today? contributor. to you in just what share It percentage of willing curious called it guys there, update out a was as a prepared you remarks guys are revenue quick the that noticeable Just of

just curious update an for So there.

Dushyant Sharma

The momentum. IP sales continues to fuel actually our

set broad and the reach by so ecosystem network bookings to As see, can QX and one had access We that in backlog. quarter actually, very general, with a platform our they the diverse bookings strong we entire quarter. customer in can well, billing strong community, the it integration to very a points And strong participate a of in have wants body. access simply doing platform and bookings you as having

to going is over business, contributing growing well actually that's our business. well our growing XX% growth. is in not contributing of So itself it well. IP it's still but to and and our And

Operator

Baird. with Dave Our next company Koning from the comes question

David Koning

behind you've and helping a part fees revenue revenue last Does My net keep was per easy What's usually, was transaction that up the per reason know per years, of nice. but year-over-year. transaction first And I that? your comp, that it net have down nicely come net been pretty few down, which historically, that transaction. maybe revenue as continue question, grown. the as is network has

Sanjay Kalra

revenue Dave, I it. signed ARPUs we also or say transaction well pieces new given becomes as were would which a impact. up a billers said there Otherwise, quarter, X good launched softens better is are One to that are at in flat. large the differently, have the seasonal They per better which kept generally, we the transaction signing revenue per see that transactions. you had

the one in given soft. better. was correctly X, the X And that the year we as little well. That done low manage network a you all fees And out, to little other contributor. last as So activities pointed came a was have the that

per getting overall, contribution year-over-year. net are profit these transaction So helping I contributing, better which think are factors the both

David Koning

the thing low one now several rate. rate other rough noticed, be was is I looked XX% for really had to about so. quarter, Or like And very it think that other we Is It you've then there tax you're a some through just profitable? should that tax number quarters, like using? or this

Dushyant Sharma

going as net tax for the our purposes, modeling XX% rate please I Dave, non-GAAP income suggest of forward. use

Operator

Our next Research. the Darrin with comes Peller company question Wolfe from

Darrin Peller

versus on across today the touch more partners like for little how and just both verticals implementations SMBs even are in SMBs a on adoption. in growth pulse and what's some and touched JPMorgan going, new large IPM, it's but mix bit larger given just a with how this you last banks the the others. year, qualitatively you time desire Can I the enterprises. obviously maybe in on know on the your And looking customer then and

Dushyant Sharma

banking us a important and we the customer alluding great across very ecosystem even -- in other seeing for progress I the customers, would on. we services, itself, earlier, I also that actually, is mix insurance, finance, customer making terms platform in the size consumer The From a for many, are able actual it's and so the was type and vertical momentum now mix across of board as great the key the review to utilities they we to find and of to of a that but our attract the whether frankly, customers the be size thought many vertical, be in before capable increasing. government and they just and platform And demand would are couldn't itself board verticals, actually those platform sophisticated progress platform the there, go customer many remains as they our and, times, outsourcing the are alternatives. industry, the they as as never because

So seeing we are larger well. some of as companies the

doing of to continues of JPMorgan IP in mid-tier and total addition value, In also remain variety or the as we signing pretty have our excited it And shared for saw clients And we JP our because of say, Chase. not were credit they're in quarter, terms and of the the strong we number as the demand services. with we of Morgan the being continues bank in in itself, annual bookings remarks, the would I just clients terms are contract proud that, very really this partnerships, are value to and the large markets. in partnership we well. we about or to And terms the well union contract the strong, the prepared only the who in did in robust the of average especially remain the bank

Darrin Peller

as regarding the the there MDL it mean guys, just flow-through worth just if any was on you think interchange. didn't but impact much, asking. any follow-up I quick merchant we Real keep should settlement, on in colitis of was We mind?

Dushyant Sharma

is assessment your I think correct.

First that PayPal. all of whether card and all, with it's it's Express like let this relationship networks, we Discover me partners MasterCard, have American other frankly, just whether say or Visa, great

to those fortunate very cool are have we So relationships.

settlement of in think regard. quantified I us. beneficial terms is is we itself, interchange improve rates to the only I would is actually specific But say this that that to thing In anything our haven't even anything slightly helps

Operator

company the Sachs. with next Will Our Nance question Goldman comes from

William Nance

just bit on I your of in specifically, made sort M&A the of route, capital comments going And more on Pavers you've you rollout? pipeline. be fragmented industry. on strong opportunities this last little what in is the and you've XX. day? thoughts running quarters, an term And guys scale-driven thoughts performance, done for rule forward, ask past. complementary I And in Or And I more opportunity have the were know down asked is the wanted to X had are well several back ahead this bolt-ons your broadly? the more like to pretty a there in more about strength go longer about you they for M&A allocation you're that if focused would the a type of today of

Dushyant Sharma

priorities Capital in very unchanged remain similar. past, us communicated what the since for allocation we've

have getting TAM a that pipeline us. in our of in growth. in operate We strong business growth very organic ahead is very our investing i.e., good a own We We business. business, believe

So we want business. or capital to own invest our extra in cash allocation our

hiring resellers. marketing even are So with in spending working we sales and money and

as right far that's indirect improves, growth spend place to as money the get think that where or we direct So on. sales is and

priority. first our is that So

we is not technological gap. Second to on do this point currently I'd like any have make

we interesting give That that's look the are it now. seeking any reach right now. get out we to anything said, a in serious not will accretive seems And if business far right So and and definitely it not thought. Board we get initiative at add we a banks, and seeking specific as investment But the by lot shareholder are of overall we to teasers. anything M&A value, as

that's strategy heavily where are allocation focused we on think executing. And lies. think I I capital our

William Nance

times. the then mentioned of the the a terms size vertical just pipelines in guys that some that the pipeline the were And on unit It dive question maybe you mix vertical guys have just billers. mix Could maybe slightly composition several on sounds you quarter. and this of in little on the of like maybe ones to implemented better economics bit contributed a of

today. of affirmations see So implementation on about just curious you kind if any the that pipeline make you there's notable would

Sanjay Kalra

new to similar is backlog are largest or of we trying seeing the Our to say, XX% a a composition and the of are into, composition differently, with would way more made And the these we bunch pipeline very see government that. And vertical, still is the of remaining being Said insurance that seeing it we is than our well. And lot and the board. one, which see enter utilities composition, segment verticals of is I we revenue are as diversification way verticals, and to very our pleased we we is our which are XX%. other. across the up being similar very

giving us for outer as is comfort long-term the In fact, more for the think about period company. much pipeline our we plans our

that our is overall, So implementation And is I'd pace of as we I that say terms pipeline a getting actually composition great. in is to cover on strong, good well, the mix. diversification seeing are would like better. implementation,

In our of expecting. as we fact, in were QX, we came what saw revenues ahead in

So implementation is really doing well. pace

now I think up. the Coridier catching are tailwind of the that behind seeing is we and definitely

Operator

Huang with Tien-Tsin from Our next the comes open JPMorgan. question

Tien-Tsin Huang

more billers, your curious. working ARPU across It sounds new you rates there plan? book transaction the most to quite about addressed well there. or is retype just strategy I of Is going like on the you that on overall relative repricing book? I'm but commented on know how forward? Have better the and repricing

Sanjay Kalra

of pretty Overall, company were to them. a increased I billers regular when was much through has say and it pressures, with all costs it was those the length at we now would inflationary the working discussed had pass and we going process. become part our to Repricing,

it pretty kind a regular now whether even repricing review XXXX. of other is inflation And many a I to process. But that much process XXXX its factors. was or due in own. that and processes part We on so separate it's now the our the due interesting margins exiting pricing, to was have streamlined So of believe or to topic a due

in one-off would think initiatives, do a I of regular it's which you caught inflation. call our part a of anymore. that So we in at saw is internal process. repricing, up QX say of I benefit activity some And I'll as with not saw part same time, itself, process. we as But pricing nothing are the to

Tien-Tsin Huang

your I question about second -- on Will on was just composition the wins. asked know My

, talked there the around we of there's or in win. deals substantial replenishing Dushyant strong about pipeline to that Is any bookings, about talked I sounds a You still concern and lot like issue It know backlog? that backlog. past.

in sure Just are want where year. make the to you that's given case the calendar

Dushyant Sharma

pipeline. good about are feeling our We

about We actually momentum the good are remains demand great feeling long-term the the market. prospects business. The seeing of we strong, and in are

Operator

question Fargo. from comes Andrew next Our Wells the with company, Bauch

Andrew Bauch

trying and quarters, macro X prior guys it's to implementation leading a interplay understand hit but book. the with delivered growth been the between more better to potentially execution in times just front consistent replenishing questions, pretty on that here stable that you I'm better environment I straight with conversations know

give just done sense things on consistent now much how driven execution. catch-up the And that you've X the part were understand of year maybe over this the that could X you're to if you us we in that's seeing if maybe demand. is growth last So of to a able

Dushyant Sharma

a say would catch-up. not it I Actually, is

the Let take me like demand we is catching execution the up we more prior still to used It us. pandemic. see the last of are type or to to for of type part

the is So after improve how of that cost able used storytellers in the and going to we platform way the can where using clients transpired the customer pandemic front well. business what their our send that we to back And our on to market to be were they improve to educate ecosystem. are experience our serve and the is their

of are a clients that, various As verticals. of signing result we

very and ecosystem we new partnership us a have strong our of us bring deals, to that, backlog. to new has verticals started that, result as addition for a In and produce

getting book replenished. So front is

customers, now we lot which are implementing normalcy. but affected, during are also somewhat seeing pandemic, we We a you are saw back also were that we of to that

And need sure this we well many we what wouldn't like post-pandemic implement and return can, we are are that's processes making to and front customers on And X in adjust the back we the prior can the sign in front that prior operating listen execution what is the business like the side. onboard and back -- financial would what question, success or as terms we as And being And been well. now how many basically as growth learn well see focused able the say very of which to sure to then I many So we do our things from as to seeing to going and have can be to that trends, improving we short-term successfully. very we are a done, get public partnerships and normal used the customers X world customers to we the very ourselves to the as top you frankly, line a other sure think can is understand toolkits pandemic. as continue long-term bottom and are our looks as make as able of as as of to seeing. very, focused I we line, make sure as on and your that making on What we have cadence leverage, we to we do to our here. are that we end, expect on on that

been the has what that's focus. So

Andrew Bauch

your you testament. anticipating, prepared our come so throw said, show efficiencies in in the that, think you patent out that investments. teaser I'll you What can AI so as are bite. remarks, I And from that albeit years does the that And really

Dushyant Sharma

few was just ago awarded a missing, the still is weeks patent This publicly issued. like

macro to financial all, looking business, at the explain of business. what's we capabilities the behind The performance? bring of business was to key integrate despite Paymentus about strategically and looks implementation in And still was convert there. prospects And to us. or is company that for how that dealing investor you're with, the challenges the into and the was first thinking plan thinking AI we in this world are And dealing them. executing risks our the through if one whole we with an what current and the business, the were what great a and the our were opportunity reason long-term And was then one integration what those that we is for on and investing factors you're the of focused is strategy of like we system. out we in difficult different just was the trying see do So wanted

will see and believe continue we from that part you it. AI So improving be implementation of will the performance company, to

Operator

company FT with Our Gunn next the question partners. comes from Zachary

Zachary Gunn

without in top first a question guide of Last achieve guide. here said is signing new the position you My around to the clients. any call, were you end the that

also new XQ clients? that new to So that? some that how the was in we assume And guide, is with top new about Just outperformance the updated Or by no then I follow-up. have end a that, of can clients? achievable just think driven

Sanjay Kalra

yes. So answer Zachary, I would short say, is

any end were They raising in I increased for happened a later because more then that we high comfortable in the QX. still will year, in the Hence, in not to were QX. the does happen And increased exceeded scheduled revenue little have year. that bookings just the what achieved saw guidance so already this we entail implementations, we That the we were part happening Our of from earlier, guidance which from the anyway than said, XXXX. up the of in but revenue. clarify revenues any coming also year we we picked also additional in guidance QX,

Zachary Gunn

the per it terms the And transaction. per came know year-over-year, And know was it profit but transaction just contribution transaction, a contribution but did the trial XQ of I then asked profit per at revenue step Q-over-Q. earlier, year, in it down last on dollars up bit just was looking I

rest that this to as of think up quarter through low step a then the fair the about see watermark it year? and is So

Sanjay Kalra

of high transaction, year. put of quarters, to we've framework for mega effective that per the us becomes right to level we and for many would understand profit more to to seen. the that's than the we at, for to sharing I a our learned because small And I contribution experience saw of sure a is same business per contribution But QX billers from contribution outer profit I us driving an I strategy hence, see is just that per revenue am quarters overall, size transaction. or or great transaction We the large per I of That if and analyze saw a is margin soft now a way, from that metric to are perspective. way understand rather to say that transaction that revenue forecasting business. get for quarter We it you size would Well, hard last we say, into granularity the year per going it's say look the same result so to a most that would not size, I'm anything by transaction Zachary, also, effective all the said, this produce getting most trend byproduct really still on the the them business. Yes, we years it's this business. and way agree not because into

shape. margin in contribution would from we would get in very I think the QX, better So get contribution year, around margins contribution you the overall, But one are to for a see well. expect bounce the profit I to quarter And as guidance, to whole better, as other. decent the does

dollars, year So to in them quarters. coming expect increase we the the definitely, profit in contribution

Operator

time, back remarks. concludes to question-and-answer At this our I session. any would pass to it like management team That for our closing

Dushyant Sharma

great a you, day. everyone, you have and Thank for today, time your Thank all.

Operator

participation first our of earnings and enjoy Thank you the XXXX concludes day. quarter your your for rest call. conference That

Paymentus (PAY) 6 May 242024 Q1 Earnings call transcript