PAY - Earnings call transcript Q3 2024 | Paymentus Holdings, Inc.

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Operator

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

David Hanover

Thank you, operator. afternoon. Good you results. webcast thank third review joining XXXX quarter for and to the our Welcome,

release are the documents. earnings webcast. everyone's the we'll Our had documents reference This paymentus.com section Investor make to recorded. website. of webcast Relations a is They I during chance include to earnings being that available presentation this on hope the those review

and details Sanjay Dushyant guidance. quarter Our make before CFO, will CEO, our comments Sharma, Kalra, Founder of discusses the and opening some our the

Following our questions. prepared remarks, we'll take

Let within remind XXXX, webcast. financial you Reform Private forward-looking me non-GAAP that just the of we the Securities make may and Act the to during statements we refer meaning of measures Litigation

uncertainties. management's expectations our are based website. GAAP, cause the that assumptions on including that, and Information to differ are actual are measures, results available like on statements about the to financial be filings SEC available Dushyant? Sharma. Dushyant earnings Forward-looking materials expectations are over that our our turn current earnings to that also in on Factors are materially in I'd can the materials non-GAAP our detailed may U.S. webcast risks and and website. With from that to subject reconciliations found to

Dushyant Sharma

had Thanks, to XXXX is be And phenomenal shaping a David. overall, We up a quarter. third full year great year.

targets for during quarter. full for of XX% As adjusted details line we third primary remain and are These guidance. top quarter XXXX year our to to growth before for about revenue substantial and our targets remind And I a go CAGR growth. accounting our the raising want you our the XX% our unchanged, even the result long-term are exciting talk I metrics into progress, our future, that outperformance EBITDA XX%

as targets we CAGR these model. forward, will refer to our Going

model confused our contribution and our and is be OpEx. profit related primary which with not CAGR metrics, to only should metrics secondary are Our

operating calibrate to model. will to to leverage is as in our CP quite model that necessary the done strong continue have past, achieve effectively we to our very and inherent As due we CAGR OpEx the business

our now XX.X% provide revenue third our execution OpEx, me secondary CP million. saw by of adjusted of At XX to on the and Rule grew contribution increased as grew million. to financial metrics In a EBITDA in the Let calibrating And a summary. XX.X% our to the $XX third in to same XX.X% profit sequential a solid XX. Due we quarter scale, increase $XX.X quarter, result, a time, year-over-year. quarter

expectations well as and full our you our performance XXXX, CAGR see, results quarter the for third year our can is Given ahead of model.

rate excellent of shaping and during Our dimensions one the is is exciting how of growth many up XXXX our quarter the business.

durability the of is dimension great which also our we feel about. CAGR important Another model,

bit. double-click a business now me strategy our on Let

today are of our the when in our that margins both our where currently with mainly longer-term, we talking but new Therefore, a the cost We strategy we market a words, cost to you As specific associated will accretive responsible capture a scale, today's And through center. In market expansion serves immediate here about tremendous a center and flow life we adds at offer company. to this longer-term capture It's focused is ever To a before to quarter center to year more capturing time, as is the at we standpoint. that creates the and TAM from as faster to looking strategy activities over for increase booking cost in interchange work business there note margin the capture, our impressive than share market as of ability possible and reduction. numbers, convert scale to for term expense growth. On as strategy our for revenue this play we are and Bookings even top cycle pace from interchange even to expand a it us. modernization pursuing manner opportunities public interchange I'm This only long-term. look scale. And see our view that other plus a more products solutions level this by now. part here. want please share. at P&L you economy XX% And though are market interchange and want and clarify, line deals our indeed, are strong. are a and on in

the moat, profitable IPN across growth. our we clients and in various to an validate These unions municipalities, of beyond our to to provide To verticals position go-to-market now. momentum. ecosystem contributing continues clients such insurance, our and government momentum excellent property credit further among strategy education, others. platform bookings diverse signed utilities, multiyear these quite of several included efficient banks, These nature industries onboarding to management, with as Our continued services, and agreements. On detail well for bookings, and combined telecommunications, due activities long-term XXXX the delivering on us

before onboarding the line from are rate. a top is at faster We growth revenue as pace than ever evident

expansion activities, scale budget for to of XXXX of longer-term, other planning risk achieving And this strengthening us. economies therefore, as increasing towards we very XXXX to has modeled. for throughout from expect our is full of also bit which Our can initiate means brings success and onboarding go strategic start of large versus cohort in benefit this our model. opportunity. We year all clients earlier ecosystem, benefits IPN of on us towards we performance ammunition execution. here the enjoy contribution, resulted believe head in third our a large margin These this Bringing quarter marketing giving include we our of portion to more a further were of cohort this This had only live the that a go-lives onboarding we originally to enabling what in clients a cohort reduced pleased CAGR XXXX, are slated take originally XXXX. our

demonstrated leverage desired our As the inherent X turn from let we CAGR our using contribution the review continue me in greater our Sanjay year-to-year. With to model will results it over financial or last despite to is achieve quarters, calibrate we Sanjay? methodically that, to to throughout our variability to profit quarter-to-quarter that secondary metrics have even operating detail.

Sanjay Kalra

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

everyone non-GAAP Before quarterly I'd referring include results our measures. discuss I be and remind like to outlook, results to the I'd financial financial that

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

to Turning Slide X.

of we demonstrate results top of to our another range. end model demonstrate overall These exceeded and the team's our where guidance results XXXX quarter execute. third Our the strength ability business quarter proven our

of revenue XX.X% $XX an up profit Our increase $XXX.X third up million, million, year-over-year, XX.X%. of XX.X%, and quarter million, of $XX.X results contribution of adjusted included EBITDA

in guidance, mentioned the to XXXX remainder bookings XXXX business will activity our and performance, drove excellent the earlier, which expectations robust detail EBITDA and revenue, a trends shortly. year raising and Dushyant forward of adjusted Based for allowed with are We on quarter strong profit also customer the more our I to demand, us continue visibility, our contribution and discuss exit which we positive full quarterly experience significant backlog.

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

implementation first, original revenue from second, of X launch up driven growth, key as expectations, mentioned, billers; factors: client same-store billers improvement As of and enterprise was the existing a in some early which by result third, increased originally million, $XXX.X to large team's in XX.X% continued This were was year-over-year. new we of to launches anticipated; engagement. early which of XXXX. QX strong mainly sales our hard successful was ahead our launch pace and early customers, launch expected work These due

to in quarter, year-over-year. number XX.X% the up Additionally, XXX.X transactions processed of Paymentus the million grew

specifically price of during from the billers mentioned enterprise by due payment biller year. $X.XX, to mix that transaction amount. average the a This per or average was increased the Our launch early had I higher quarter to third large last earlier mainly $X.XX up more

operating the Contribution demonstrating contribution overall with reduction the increased enterprise our reflects period, year and add of the margin continue offset billers billers with contribution capture expense for higher was was of Contribution on $X.XX shortly. Third profit new transaction XX.X% similar elaborate existing quarter launch ability when scale, year-over-year, the to the X.X% we up focusing almost The in profitability, which consistent profit per margin quarter customer comparable the adjusted year was profit base. year-over-year. was reduction share economies This market transactions high-volume expected by with to from on billers, million, as to XX.X% to contribution profit and quarter an increased of in for I $X.XX, EBITDA and increase margin. This transaction. X.X% improved to our per prior $XX growth compared mix also than strategy in the combined entirely prior to margin resulted launched. large, billers XX.X% is our third period will XXXX

third growth adding client-centric clients. of we've winning as because the approach, at to profit we the market note and are larger providers. This as we a saw to our they profit with times, quarter, at contribution client increased us accustomed to prior proximity customer we transaction than that diversify are continue During other and to are capturing similar contribution profit we quarters, base, contribution revenue quarter-to-quarter our expect and larger seen growth clients of closer these In closer and in of our clients more grow growth. solutions paying times or prices vary other services selling we average Because growth. to share larger transaction and quality growth more and even closer is these pricing to base. Please to are result

Dushyant in revenue believe areas into as and have in both account we inherent operating profit leverage the long-term, contribution for our will range, business closer model. the growth growth the converge Given earlier, we taking rates a also highlighted

a payment are the our the treat profit our therefore, that we an in As secondary noted revenue average on amount on mix past, variables as strategies. the adjusted payment while control, changes gross business or EBITDA and a we increase the drive and metric, as remain substantially focus metrics affect we areas our such contribution quarter-to-quarter in of in can basis. And outside how this primary

profit Third year-over-year. quarter adjusted up gross $XX.X million, XX.X% was

research with and flat of hiring, million. existing enhance these primarily and The as $XX.X non-GAAP XX.X% increases increase increase was operating technical due consistent expenses both increased quarter year-over-year year-over-year development as increased as and to previously areas were This which sequentially The expense mainly strengths. driven about expenses. was sales we've expenses in talked Third expectations. we well our to our higher marketing by was

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

to EBITDA also XX the EBITDA bank factors all performance, ability and profit of $XX.X period. to income Third XX.X% was conditions inherent the million This was marks to balance same strong We was quarter quarter combination XX.X% margin quarter exceeding Rule million sixth and stronger have the adjusted quarter. year. XX earlier, compared business during XX to to of to the due Rule year year in to together average XX.X% consecutive market Adjusted contribution the our for year-over-year represented positive from compared prior of up our demonstrates at as to came we was once quarter the we cash an improvement our leverage cash the last I compared period. we proven again continue which compared of the performance $XX.X XX quarter a third last quarter, in adjusted period. the to prior result in $X.X about management. EBITDA of exceeded the prior grow. Interest for year XX. million This adjusted of This our in and the coming $X.X the believe in EBITDA in talked the adapt effective changing operating increased Related deposits million,

from operations, offset primarily investing cash million of end generated Now quarter investments to activities operations, from the of capitalized working sheet X. at $X.X and consists discuss balance quarter. from $XXX.X million operations ended software. $XX.X compared for I'll in capital $X.X $X.X of position million $XX.X net $XXX.X cash our the last in million million million. generated of decrease XXXX comprised of We of by on of primarily million million Slide net The generated used of is with third liquidity $X.X cash The total cash

to compared outstanding essentially diluted quarter. during million quarter. had Our the of second the an third the $XXX.X approximately the flat days of shares during sales XX $XX.X outstanding quarter, million the XXX.X days of from quarter the from of XXX.X in end the the quarter third shares diluted quarter. second at end third outstanding We million end XX was Working last days approximately increase was capital million,

guidance for to Now Slide I'll fourth on X. year our quarter and turn non-GAAP the full

that follow discussing since have to guidance, are approach mention we continuing that prudent we Before want guidance I to the last to followed same year.

quarter fourth XXXX, growth prior of at $XXX the representing margin of million midpoint we and end. improvement related represents outlook year-over-year in adjusted provide adjusted an and This million the with expect at growth and the rate And the year-over-year to I of fourth fourth growth growth XX.X% prior of range to EBITDA Contribution at quarter of quarter XX%. Along at comparable to midpoint the at which of range quarter rate with margin rate from high in to revenues the our is For profit fourth EBITDA end. XX.X%. end, year's at $XX to contribution $XXX our the to be also high EBITDA midpoint the high to million, further $XX representing represents at margin. to high growth guidance, midpoint prior year's line and million, a XX.X% XX.X% rates profit XX.X% adjusted XX.X% million, million growth margin want year's $XX for XX.X% at year-over-year XX.X% end from insight and This the the $XX of growth the XX.X%. XX.X%

to larger As request inbound support these interest are economics business unexpectedly, are our customers. where we receiving discounts, it. the often greater Not which we grows, deal from open volume customers enterprise

This leverage operating and volume Said reach are spending attract customers typically tremendous for differently, more per these to strong as while increases in Furthermore, as time adjusted is In average OpEx in our biller by profit we just contribution than book we order relative to EBITDA. size us QX. larger addition, offset customers. EBITDA declining recalibrate allows ability larger increasing. desired to our adjusted our discounts a incremental the to efficiency have is saw customer onboarding simultaneously

continue an For incremental of versus margin of EBITDA Rule to and results. quarter, million, midpoint adjusted the resulting XX a an at reference, $XXX XX of third expectations improvement solid growth guidance. contribution X.X% year. guidance. The guidance rate an -- quarter build quarters to midpoint. to up on XX.X% prior end, the midpoint, XXXX, to Contribution midpoint and the This represents rule we EBITDA revenue XXXX updated for XX.X% year profit XX.X%. we increase XX.X% at excellent a closing, the in improvement million, in in now revenue, improvement $XXX prior year in the improvement of guidance growth our our high guidance. now represents from year updated momentum the representing on have strong the EBITDA EBITDA quarter range million relative Based in and of on $XX XX.X% increase annual remainder represents the million the made a of XXXX. In range million the margin achieved scale of rate In at This adjusted of growth previous margin for of from of already at reported now midpoint, for implies our from the versus an at from an midpoint million, bookings was X XX of adjusted profit we XX.X% full scale, to 'XX our up XX.X%. expect another growth third a X.X% previous from updated midpoint and the the XX second prior represents This from results XX.X%. Adjusted the to growth. XXXX, our $XXX guidance the we the The the we $XX guidance X.X% progress quarter of previous from on midpoint, XX% in respectively, range $XXX at to at year,

to turn a backlog. as sizable the final of Dushyant the ended for for to well are everyone, back we and larger we And all implementations up for of the we positioned now clients believe this, quarter call questions. and XXXX. Thank your as attention today. I'll have we rest of considerable it Due for 'XX well before Additionally, with visibility open remarks earlier for you,

Dushyant Sharma

Thanks, financial year model. results XXXX actually. In full a platform IPN years, our the benefits of to our that see Sanjay. full combination large, It's another when from ecosystem XXXX, more exceeded raised exciting our it's the market. The us our and summary, in and year reported a humbling We expectations. competitive IPO, the CAGR than growing long-term our strong compared we quite feel quarter of business differentiated indeed doubled our to serve of allows of the of our and guidance and results durability year good X We moat. that we strong the nondiscretionary about have

In take addition, to build our very for these great increase we to questions. to TAM using team innovative and DNA. this own create I'll here. opportunity long-term to on want a are business to special I as tirelessly up we, our looking my investors, thank short, results the open to deliver worked In shareholder continue line our that, value. With who success

Operator

of question Koning first from The Baird. Dave Instructions] the with [Operator line is

David Koning

is in seen I XX think biggest Yes. I've of the years. Congrats. This beats, one

that. congrats on So

Dushyant Sharma

David. you, Thank

David Koning

than go QX, But And they're XX%. to revenue Obviously, maybe you And network -- know fees. a I I bit could mix yes. talk to talk higher in think guess of guess, that beat then gross about XX.X% I usual. yes, expected ton. about down a network of revenue, of I more back maybe that. fees, little gross first all, by of so kind why

a maybe talk dynamics. little those Just bit about

Sanjay Kalra

very question. much. great Dave, thank A you

they similar cost onboarded QX and those network as fees mentioned. large provider. large with, or higher onboarded had actually paying at what previous of similar to when In were fees we used and in a enterprise to pricing some enterprise the you but to begin network And structure was saw And pricing, onboarded, we customers that we service the fees, fees them terms really customers, were network they higher. better

the XX%. margin and As way to of a growth despite is, calibrated you result, fees for mentioned revenue this quarter in how And David of is into network demonstrate up you a as a end the be we we end contribution long-term even a little And a question, prepared contribution customers. it to specific perfect opportunity high your in quarter. piece see perfect margin a enterprise -- rather of margin. But at this interchange down, itself a to for a Rule a can this But of and I OpEx that think, than center, gross we for have you XX Dushyant being profit is our TAM the remarks, up softer And a see could how strategy, his center to convert year-over-year an cost see us. at us. going

strategy, on question, So same high. time, although initiatives. per to But the want is a don't we the from are working not your I while at transaction did and impacted. network fees but long-term those digress And that's get contribution profit

we it's of at second given been I saw, quarters, to not we you the say, are $X.XX, would say scale impact in all quarter. And this question $X.XX achieved then versus would I how guiding. in As X QX, big a your

makes consider sense. guidance. thoughtful very on opportunities, all and what to them align guidance a We our risks disciplined, very a have We the approach probabilities

seasonality approach, in the different want not think the come remain with you as -- And to strong. want we is we as to QX And all -- seeing there's I to QX. well. we really consider out aspect are risks want remain but than grounded. this We possible we a So

overall, for up. in the I we shaping So is as metrics shaping pretty comfortable how are full year the the think is up great year entire And well.

David Koning

be are interchange. Maybe TAM That's Got I fees. to TAM, assume helpful. new mentioned, fees the you second Really, around a kind of my quick just follow-up. the you. a network is question what of almost network all the going

You've over those doubled network fees.

the in years. actually is exploding, last TAM right, So the few

about you bit you can into convert how a little that could talk maybe like So revenue?

Dushyant Sharma

well. dynamic I look see interesting the actually. see very business a may and take a step our the and way what traditional back business I you is how is would them at would we this If think them than as payment I differently see processing

a modality So to fees. to be over structures, will what the overall they it just flat or behavior the processor a for have have and whether which or interchange form payment, it's the cost in did they control the basis few literally actually the or the way transaction, any payment customer. ] Paymentus did pennies to a incurs the have customer traditional the to to internal not of view of the able is few that using a used be through will transaction terms the you fee then pricing of They payment were to would conducive charge the entire pass as make payment which a revenue customer of versus nor [ have global network be points,

we been that's where convert be more, of have course. and word some how to type exactly opportunities for about meaningful can platform, we the part what easier in the for making the "loading" into in So what will user we more if are, business feel our profitable But convert terms I way the us we busy network is of what of the of have which on have thoughts cards use those exciting that fees are opportunities instruments on due revenue. how like may our into what loading, we we being it create expense behaviors payment, to us. can used a interchange And they're type track is the the shared thinking more

about longer-term So on the side. more bit a that's but we'll little talk that, more

Operator

Tien-Tsin JPMorgan. is the from line question of Next Huang with

Tien-Tsin Huang

here. explanations Good quarter. great Really

a to trying the faster consider. larger a you go-lives Are that improve to structural onboarding this of new clients, Just more standpoint? if change? to Just from technology process trend understand thinking doing is is about the that a

Dushyant Sharma

combination of multiple factors. a is it Actually,

I well did some our the impact shared boardrooms bookings in and we pandemic frankly, If as new just new on that because into clients, you ability onto -- pipeline onboard have ways, bring to clients larger closed. past were the recall, think also our in

which And view so improve also we what setting, of the live but very ability we our where of our actually were the combined learning were do were followed when with to And could from own with excellent at clients breakage we to through our principle of onboarding taking we complicated more processes, sophisticated some onto onboarding the -- and are, better in workflows innovating same our platform. that before we our interact customer the introspective points interactions.

we are And changes some that as technologically so in making well.

So combination change. perspective big making making of interactions, there technologically from but advancements post-pandemic in-person conditions, a is the instrumentation also our

Tien-Tsin Huang

Okay, know a of good, It's good combo to things. that.

Just seasonality, I But philosophy due be the year make and quarter, it quite just thinking in to fourth guidance. a fourth the guide, be up quarter this different? around to contribution appreciate to profit, fourth the think, bit about History you're I why but calling the says want sure, quarter it's might stable.

Sanjay Kalra

those and So question. happen QX, these they and than very QX, what And extent unless large aspect. that really trends In Tien-Tsin, we to like onboarded to continue. good wait how see originally a their are great them, are large quarters the few enterprise seeing with we anticipated, sooner handle on spend they will we in is have seasonality new customers again, have we don't we a

bake not we QX A but exactly entirety continuation of not of all. of did baked, the portion cohort that customers. So an we

how wait to watch trends play. and those We will have

approach come we So play this in a we've prudent taken may out very guidance. to QX how when

to X just we execution stay remain for on especially focused So grounded to we want guidance, and quarter. come when

where but is the good about year are. feel shaping well, think whole we I very we

Operator

line is John Davis from James. question of the Raymond with Next

John Davis

Dushyant, revenue just this the year. bit little on touch want a to growth acceleration

anything about year. is versus us think think for the X,XXX about acceleration I sales that And us caution how point kind call forward guide that the last would of of share gains versus and else same-store Maybe pricing XXXX? we anything out? dimensionalize basis or versus to about you midpoint into taking should

Dushyant Sharma

remarks, that are budgeting pretty talk in Yes. we sure process, sure make that's prepared reasons I the our itself. that the we make think still we would I the CAGR say, of model XXXX, that's one model but wanted to long-term why that are to actually clear the about in changing not we

In this things terms together. have come of of lot year, a

was this pricing all behind at -- us point. those Our are changes -- pricing the think -- I

this are more is sophistically were anticipating. deals frankly, share, about than them market we So enterprise in ways clients, earlier which signing implementing capturing large some and

So is that add? a to combination you of is all what do it. leading Sanjay, want to of

Sanjay Kalra

right been Yes. start. year QX, a has from improvement I'll in we've trends really that the add implementation, seeing this continuous the good year of Starting QX, QX, been in improvement bookings.

X, seeking provide are we the and this in any next The at X not and high, say currently very of fashion. has that momentum good, to got color thing of happened a modeling, that out. that you're We very best today visibility. question, but XXXX. process would of X the budgets, for backlogs But of to a your the are guidance setting I 'XX a giving end the to or can at the is very we other exit I good not every piece if are any it XXXX, why we is say, phenomenal comes on giving our quarter when Our John, in quarters quarter us lot comfort time for only speaks growth quarters, next and XXXX the would

disciplined used past prudent assuming the recommend will same follow we approach we purposes, X modeling for have we that over quarters. the However, and

prior our remind would would XXXX everyone which is to that year year initial March our imply very, we that doing as used just very So to in a well. guide, the starting like we point, growth similar rates gave earlier this numbers. using I business in

we very of the which a to and pipeline. as We a very even and used and actually we in have very a bookings have current our sheet, liquid good healthy, to we are balance terms sheet very advantage cash need, quarter. strong balance have in when The capital backlog working deploy

John Davis

I of of just think you margins for this be mentioned margins XX% Sanjay, of year, then, Okay. Great. I based guide. XX% EBITDA off the midpoint will full quarter, think shy And your incremental roughly the

I So how year-to-year, this over the we margins nicely. the very can out to potential years? should quarter-to-quarter, like how basis over It look looks think know were several should it about business next vary year. points we long-term of if you've this And -- expanded but XXX think margin we about

back companies very public, We it's you've payments profitability. ever a with been in go improvement you some If since XX%, see margin. gone nice XX%

terminal think or how the but about looking anything help get of explicit of margins, they but think us and an Just the not this a guide you about should just curious not not think that, medium-term profitability X-year about Again, and scalability period? or terminal value the business. can where for like kind I'm how over margins we

Sanjay Kalra

we models our John, And think that couple of well about for Yes, do great question. we periods. quarters a or as outer as

not to strong high. think The strategy profitability. I growth, our think is about partnership growth the but momentum right has directions. is all is is business the with a just very business our purely way that And in humming

better? is which there So clear Definitely, the profitable growth is Like is there very opportunity a our numbers. room for mode is. to of grow just operation, from

expect pricing all we we grow, us the should outer scale, As well. and We help in Dushyant that to the of really expect as help working scale And is should to us. economies opportunities as well. we term our mentioned

want have We set want should helped the same long-term expectations. remain staying And market. us to process, year way give business as are the fashion I at that the grounded we numbers time, a in that could opportunities set head desires and not that in during And and our especially to in to just that confused very has and we have we the a which be the very careful mode model. seen. could how how model we would the and of company, last are again, capturing margins. But expectations better we distort the with many We the have like for hopes I not in disciplined business. straight us

to going But would that. really to are of. say sure? there continue? think of So And outside I back is profitable it But don't be. opportunities to goes are a would of that control. I much suggest I how say it having like and Can for No, which Rule I something XX proud it risks our we is

get but business can it time. is would expectation, and that take it way easy a I seeing good I model that think longer-term, not this better over the

we this, but think than I is I And are doing really more doing business I think just not -- would is the speak well. well.

Dushyant Sharma

add. If is John, actually this I And Dushyant. may

as returns and perpetual engine Our shareholder to perspective, strategy here. deliver is And Sanjay tremendous making are our continuing the by we about, goal to time, to always our from at there profitability. long-term business. truly between partnership -- talked create a grow growth the -- is revenue is the that But same

well. investments make continue to we'll So as strategic

Operator

from question Peller Next with is Darrin line the of Wolfe Research.

Darrin Peller

job nice the A on quarter.

think on that onboarding touched see up, you ones on incremental in brought to I coming just not you how you early. customers addition the there's larger

inflection of call recognition if of understand there's offering a us demand your also. it, pace acceleration pronounced more a others that year as that know called more in the more just because resonate have help of type seeing the you a just was of or were, any let's in even than manner pace ago you're of maybe So I adds notable pretty today maybe and

start just guys. we'll maybe So there,

Dushyant Sharma

-- recall, IPO, we and talked you, of part X our you during Horizon X. then X about Darrin. Thank the Horizon Horizon the is if strategy, Actually, this

We on. of higher we used point What end end better opportunities to there's than even so that. now you million dollar basically is a from realizing see of be think And that few going and market. that higher-end mid-market start a redefining So of are then some to sort are to sort do could we deals. to the higher from inflection customers the

Just the organization, because now that their handle. payment exists own level an outpaced has ability complexity a given organization's own inflows outflows for of engineers and for to that from

Paymentus of So platform replacing ecosystem we the provides. capabilities the advancement of used think the as only to because this and legacy of the providers

for reengineering ecosystem Now -- the customer frankly, the payment Paymentus. become think target we journey for entire this all the involve participants and of customers, journey all in vendors a a to as of and the

we example, vertical, you early -- profile think well nascent bookings will for the some education that like didn't is in about, will are successful in that's this in quarter. be we even other you success, are So verticals this talk as in and what seeing seeing we talk see we happening. verticals our we verticals our about this And

So workflow and what we no complex is customer for is too scalable too customer for are too us, platform us. No seeing is far for us, no is too universally no is us, is that our to any large vertical small from vertical.

a DNA building that feel actually the like I the pretty is special And are and business. are the the we here, opportunity that's our saying designing -- something this setting. way we keep got broad we we company way why So of

to and So forward sharing we I'm as strategy. and look continue more develop our more to about it, excited I

Darrin Peller

me much that scale overall I add how really importantly, about partners mean, from ability latest But a go-to-market go-to-market. you've go-to-market how and think have you've them just front, guys, these of you now larger much and just approach, the reselling IPNs to had, verticals, been with of just understand, And standpoint? should one know your become your in given the I terms when maybe address a, what helpful help especially more on each on we your how just is but

Dushyant Sharma

Yes.

itself to for interactions all billing all on for whether way their reach wants customers. of across customers if is originating I point, clients a asset now be the valuable it banks think a at billing in large want companies the they your their the of signing And companies, -- IPN payees, that the actually billing their are diverse the you. credit partners of reach the very on that to -- verticals, our and dimensions to -- modern are to network behalf becomes faster in company to click, long-term the continues IPN multisided we will, a from or you who unions a to now thank and side. participants, all for any who to

IPN to believe us. us, it the it we proprietary continue So will through competitive we managed long-term a designed our think network And moat is competitive by us, be company. us, by since and for a by thought for our moat is

Operator

line the from is Matt O'Neill of with FT question Partners. Next

Matthew O'Neill

Yes.

in I have think in of to onetime it, questions of the of asked the want I on I investors nature through have basis. outperformance sort the things lot of understand and recurring may quarter. know think be kind come a different a magnitude where But where been more given around things may

be quarter, quarter on, you would point, in way possible core parse on given getting I price, the into record coming a even faster? that believe for last have was to like benefit the in same-store So implementations coming implementations visibility record. with business, And much from maybe some another it this quarter how the things sales, last to

Sanjay Kalra

of great discussion. asking. -- have down I'd the consistent revenue I aspect question. say vector that CP to like for Thank a kind you or for with growth Matt, the not of I growth we broken in much vectors contributes in how each that stay that quantitative past, terms would think or

minimal of implementation. implementations, the more the I like growth qualitatively we to like than say would I and things I in provide to color. that quarter, is these some large which quarter, cohort would But it's think happened discuss I in quantitatively. the a significant understand

originally it's in the happened second different X third month, first points they at all month, quarter, time in month. And some in in in planned 'XX. not just some they implementations. So or X in were And to happen some

is expectation So 'XX got upside. And basically what customers. 'XX, is in of from us kind for does the these it an we that derisks

want now year. at recurring being But if fit of risk of instead revenue will from our definition customers call these that maybe as So you perspective, the to nonrecurring QX. next from the in nonrecurring, it cannot secured quantify is going live cohort XXX the adjusted these annual points the of impact of dollars But approximately that I'd I quarter, like our growth on quantify. customers is definitely, growth. The impact margin EBITDA on early to basis for

from around seeing points XX%, year. say I XXX year-over-year think, you're I So And come would full basis growth for these.

getting just I kind are stage. And that's from customers I same the themselves the trends, are trends when are look or information relevant for the booking yes, on, because going are at it I getting also of are they time, think same-store like a for can but time, is quarters, only sales. the getting, verticals we we in primarily that's X getting a or focused same-store live better we customers sales, kind of are not the better getting the growth the last X over quarters, share. But at

are of we So beneficiary inherent growth. their

think transaction perspective And speaking hope the of. decent getting better. some quarter. for overall, for in So that any our you is the growth direction growth sales I same-store is provides

Matthew O'Neill

not extremely would I that articulated but definition, nonrecurring was Yes, helpful. it. it's And agree I how I points. appreciate those appreciate you by

Operator

from question line Next is Andrew the Wells of with Bauch Fargo.

Andrew Bauch

these TAM biller, comprised your relative current run-of-the-mill "large the -- the biller much on mean, And a meaning with painting on size how customers perhaps how what backlog larger about is like to simple are, actually of into could these drill billers?" a by to potential base? you of want Just us framework how look I give think this picture big like. they a cohort to of

Dushyant Sharma

that we the vantage ourselves about say, Andrew, increasingly The more would was point, excited you I like earlier, itself billers. TAM is I think refer -- I as to our said, think are run-of-the-mill from getting trying beyond, I growing TAM.

we only are that and have cases, complex and outbound quite convince being fit to -- would prove not we at of category, able seeing Now are and being that they by able prove workflows, household look to then to journey. enterprise, both we them into rightful name inbound would to and for for being long-term, the a large our implementing in from home remarkable them a able platform is convince actually biller in them it practice, traditional wouldn't a be by all heard is many the able their Paymentus they

us. it So very exciting is for

pipeline. is I mix customers, bases, is mix like the think and the -- it very current detailed backlog, and very backlog strong, our it remains color of we providing just small, not different verticals current the so remains onboarded -- on are of of platform terms In customer similar backlog, midsized, is, the -- large, that same it's our a

Andrew Bauch

I X use the now the maybe appreciate may but thought of business, we service years I be from nature come? that to if opportunities of years next longer-term that over any dual-sided that you provide level payouts extension we platform comments thoughts today can you're of this natural cases in business the for thinking not that, anticipate couple not to the Dushyant, investing we how that another numbers years, in X customers. asking the the to other a always you about the on can doubled evolve? see you would and what IPO business But ago, with your the has high-level of a anticipate And would double, mean, the to the that

Dushyant Sharma

Andrew. would -- in -- it -- say the DNA I that's the and the I for And your a great And question, innovation summarizes ways, some question, innovative summarizes probably there company. think framework in the

from think is said, Payouts just you as is So do payments, perspective. inbound is payout payments. not natural paying vendors' what what we extension, but you great, a would the

of all about payouts. talking You're types

an is between platform customer it is billing vendor. a a a may whether all company, you current it Paymentus' an workflows, ensemble today use employee is a if So a a employer, allows bank the it customer, whether and I and enterprise have whether is and whether it of between to word to the entire, between

have been actually we capabilities those of on. building All

able but the today. cost the revenue have because a what And appears center being they center on long-term And scale, last interchange don't one not up of in show the out, exciting start scale size so to to built of right for later into on. years from a what us size knocking reasons eventually a that but wood they just here, we only and the I'm as in numbers monetize and up the now, is show least, will few is

Operator

additional at no this waiting questions are There time.

I'll So for management back call closing remarks. the the pass to any team

Dushyant Sharma

a everyone, for much, Have so great Bye-bye. day. joining you today. thank Well,

Operator

the your That concludes you call. conference for Thank participation.

may You lines. disconnect your now

Paymentus (PAY) 12 Nov 242024 Q3 Earnings call transcript