Cross border payment processor Flywire (NASDAQ: FLYW) will be announcing earnings results tomorrow after the bell. Here's what you need to know.
Last quarter Flywire reported revenues of $84.9 million, up 50.1% year on year, beating analyst revenue expectations by 15.5%. It was an exceptional quarter for the company, with an impressive beat of analysts' revenue estimates and full-year revenue guidance exceeding analysts' expectations.
Is Flywire buy or sell heading into the earnings? Read our full analysis here.
This quarter analysts are expecting Flywire's revenue to grow 25.9% year on year to $119.9 million, slowing down from the 40.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.11 per share.
The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing three upwards revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 17%.
Looking at Flywire's peers in the finance and HR software segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. Paychex delivered top-line growth of 6.6% year on year, beating analyst estimates by 1% and Paylocity reported revenues up 25.4% year on year, exceeding estimates by 0.4%. Paychex traded flat on the results, Paylocity was down 5.4%.
Technology stocks have been hit hard on fears of higher interest rates and while some of the finance and HR software stocks have fared somewhat better, they have not been spared, with share price declining 2.7% over the last month. Flywire is down 2.6% during the same time, and is heading into the earnings with analyst price target of $37.9, compared to share price of $28.47.
One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.
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The author has no position in any of the stocks mentioned.