Flywire (FLYW) Q1 Earnings Report Preview: What To Look For

Jabin Bastian /
2023/05/08 4:48 am EDT

Cross border payment processor Flywire (NASDAQ: FLYW) will be reporting results tomorrow after market hours. Here's what to look for.

Last quarter Flywire reported revenues of $73.1 million, up 42.1% year on year, beating analyst revenue expectations by 11.5%. It was an exceptional quarter for the company, with an impressive beat of analyst estimates and very optimistic guidance for the next quarter.

Is Flywire buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Flywire's revenue to grow 28.4% year on year to $82.9 million, slowing down from the 43.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.01 per share.

Flywire Total Revenue

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 20.2%.

Looking at Flywire's peers in the finance and HR software segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. Paychex delivered top-line growth of 8.23% year on year, beating analyst estimates by 2.39% and Paycom Software reported revenues up 27.8% year on year, exceeding estimates by 1.72%. Paychex traded up 5.56% on the results, Paycom Software was flat on the results. Read our full analysis of Paychex's results here and Paycom Software's results here.

Tech stocks have had a rocky start in 2022 and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 6.54% over the last month. Flywire is up 3.12% during the same time, and is heading into the earnings with analyst price target of $33, compared to share price of $29.1.

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.

The author has no position in any of the stocks mentioned.