Is FLYW a Boy King or Just Walking Like an Egyptian?

I realize that there are a lot of payment related companies out there: From PAYC to FOUR to SQ. Let’s face it - its a very crowded field and thats not even considering those old time religion credit card companies like VISA, AMEX and/or Mastercard. Its a lot to consider… if one might be wanting to, or thinking about, chunking a few dollars into an investment into the payment industry.

Having said all that - the question on the table is should you seriously consider a new kid on the payment industry block who is on fire - an ascending star by some estimates; and perhaps destined to develop into a boy king?

Flywire Corporation (FLYW) - Is it walking the walk?

Current Price: $31.31 Intraday
Sitting slightly Below of its 52 Week High
Market Cap: $3.45B
Momentum YTD: +31%

Actually…Flywire isn’t actually a payment company per se. Well… not exactly like some of the others - but I suppose its exactly enough. What FLYW actually offers is a software platform that enables folks to pay and get paid across multiple currencies - says so right on the description. Here you might find an actual description by someone who actually knows what he/she/it is talking about of what the heck the company does do:

From their Website:

“What we do now
People need to be able to navigate today’s globalized world without letting borders dictate the way they pay. Flywire removes those boundaries with flexible solutions that enable the global payment and receivables process through seamless transaction experiences.”

So…Maybe FLYW is exactly like GLBE - only different. I dunno - but theres more:

“Today, we’ve digitized payments for more than 3,300 global clients across education, healthcare, travel & B2B, covering more than 240 countries and territories and supporting over 140 currencies. And, we’re just getting started!”

AHA: They’re a Fintech IPO Thingy

So - how they doing?

The company last reported Q1 way back a couple of weeks ago on May 9 with these promising results:

  • Revenue Growth of +41.6% and a marginally spectacular Revenue Beat of over 7.6%%. Sweet!

  • Total Payment Volume increased 35.8% to $5.7 billion in the first quarter of 2023, compared to $4.2 billion in the first quarter of 2022.

  • And business is booming:

Signed more than 170 new clients in the first quarter of 2023, representing the largest sales quarter in company history

  • On the long and winding path to profitability there was this:

Gross Profit increased to $58.3 million, resulting in Gross Margin of 61.8%, for the first quarter of 2023, compared to Gross Profit of $38.8 million and Gross Margin of 60.1% in the first quarter of 2022.

…And This:

Net loss was $3.7 million in the first quarter of 2023, compared to net loss of $10.1 million in the first quarter of 2022.

  • But best of all - at least for us Snooty High Growth Connoisseur Sorts who are always looking for High Growth companies elevating their game into pronounced ascendency:

At the high end they are guiding for Revenue Growth of +57.2% and thats without the benefit and in lieu of consideration for any revenue beat whatsoever. Whats not to like?

Press Release and CC Transcript Here:

Since bottoming at $15.24 way back in Mid June of 2022 the little squiggly chart line thingy is mostly up and to the right. Valuation might be a little tricky unless you’re David - with EV/Sales (fwd) sitting loftily at 8.48.

So thats that. I am not invested in the company nor am I likely to be - Just found it interesting that none of the myriad of services, multitudes of people, nor anyone else in particular has recommended or even mentioned the company - well; except one. And thats where I found it.

So Flywire could be a Boy King in the making I guess but then I remember that sometimes Boy Kings die young and never fulfill their potential.

Almost Final Note: I bungle, mangle and otherwise misplace and misguide stuff all the time. It’s a gift. So - if anything here caught your attention please run the numbers and do your very own due diligence.

Final Note: I frequently change my opinion frequently.

All the Best,
BDH Investing.


Applepay apple paylater?