Flywire (FLYW) Reports Q2: Everything You Need To Know Ahead Of Earnings

Jabin Bastian /
2022/08/08 4:17 am EDT

Cross border payment processor Flywire (NASDAQ: FLYW) will be reporting earnings tomorrow afternoon. Here's what to expect.

Last quarter Flywire reported revenues of $64.5 million, up 43.4% year on year, beating analyst revenue expectations by 13.5%. It was an exceptional quarter for the company, with an impressive beat of analyst estimates and a 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 28.7% year on year to $47.6 million, slowing down from the 55.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.11 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 since going public on average by 25.6%.

Looking at Flywire's peers in the finance and HR software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Paylocity delivered top-line growth of 36.7% year on year, beating analyst estimates by 5.04% and Paycom Software reported revenues up 30.8% year on year, exceeding estimates by 2.7%. Paylocity traded up 5.09% on the results, and Paycom Software was up 1.69%. Read our full analysis of Paylocity's results here and Paycom Software's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 8.2% over the last month. Flywire is up 17.1% during the same time, and is heading into the earnings with analyst price target of $29.5, compared to share price of $24.56.

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.