What To Expect From Flywire’s (FLYW) Q3 Earnings

Radek Strnad /
2022/11/07 2:27 am EST

Cross border payment processor Flywire (NASDAQ: FLYW) will be reporting earnings today after market close. Here's what to expect.

Last quarter Flywire reported revenues of $56.5 million, up 52.9% year on year, beating analyst revenue expectations by 18.7%. 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 29.6% year on year to $87.8 million, slowing down from the 61% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.10 per share.

Flywire Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. 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 24.2%.

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. Paylocity delivered top-line growth of 39.3% year on year, beating analyst estimates by 5.65% and Paychex reported revenues up 11.3% year on year, exceeding estimates by 3.5%. Paylocity traded down 4.25% on the results, Paychex was up 0.14%. Read our full analysis of Paylocity's results here and Paychex'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 5.91% over the last month. Flywire is down 14.3% during the same time, and is heading into the earnings with analyst price target of $31.00, compared to share price of $18.28.

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.