Paymentus Holdings, Inc. Q1 FY2025 earnings call

• Dushyant Sharma noted Paymentus started 2025 strong with year-over-year growth in revenue, contribution profit, and adjusted EBITDA. The company serves an essential part of the non-discretionary domestic economy. - First quarter highlights include revenue of $275.2M, contribution profit of $87.6M, adjusted EBITDA of $30M, and a new adjusted EBITDA margin record of 34.2%. - Sanjay Kalra discussed financials: revenue growth driven by new clients and transactions, contribution profit up 26.3%, adjusted EBITDA up 51.3%, strong balance sheet with $249.6M cash, $41.1M free cash flow, and no debt. - Key business highlights: signed clients in various verticals, new channel partners, strong bookings and backlog, and onboarding enhancements across multiple verticals.

Revenue for the first quarter was $275.2 million, an increase of 48.9% year-over-year. Contribution profit was $87.6 million, up 26.3% year-over-year. Adjusted EBITDA was $30 million, a 51.3% year-over-year increase, with an adjusted EBITDA margin of 34.2% in the quarter, which is a new record. The strong performance was driven by increased clients and transactions across various industry verticals.

• Q2 2025 guidance: revenues $255M-$260M, contribution profit $89.5M-$91.5M, adjusted EBITDA $28M-$30M. - Full year 2025 guidance: revenues $1.075B-$1.09B (24.2% YOY growth), contribution profit $363M-$369M, adjusted EBITDA $118M-$122M (27.4% YOY growth). - Continues to follow 20% top-line revenue growth and 20%-30% bottom-line adjusted EBITDA growth CAGR model, using operating leverage to calibrate contribution profit and OpEx.

Q: Dave Koning asked about transaction growth breakdown between new clients and same-store sales.

A: Sanjay Kalra said growth is from both new customers and same-store sales, trends changing as business expands and diversifies.

Q: Andrew Polkowitz inquired about sales cycles and pace of implementation in macro uncertainty.

A: Dushyant Sharma said no change seen, implementation speed good with investments and face-to-face interactions.

Q: John Davis asked about free cash flow and working capital.

A: Sanjay Kalra explained free cash flow driven by strong adjusted EBITDA and working capital conversion, cash flow can fluctuate but EBITDA cash generation is key.

Q: Matt O'Neill asked about Paymentus' virtues in tougher macro.

A: Dushyant Sharma said the business has grown through cycles, value proposition reduces cost to serve and improves customer experience, resonating in downturns.

Q: Lamar asked about learnings from large enterprise billers.

A: Dushyant Sharma and Sanjay Kalra said large customers are accretive, trends similar to other business parts, helping pipeline and feedback across clients.

Q: Darrin Peller asked about trends in incremental verticals.

A: Dushyant Sharma said similar value proposition across verticals, Paymentus becoming pervasive and well-known.

Q: Will Nance asked about large enterprise implementations' contribution.

A: Dushyant Sharma said they are accretive but details not shared yet as only two and a half quarters of data available.