Flywire (FLYW) Reports Q4: Everything You Need To Know Ahead Of Earnings

Adam Hejl /
2023/02/27 4:43 am EST
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Cross border payment processor Flywire (NASDAQ: FLYW) will be reporting results tomorrow after the bell. Here's what to look for.

Last quarter Flywire reported revenues of $95.2 million, up 40.5% year on year, beating analyst revenue expectations by 8.39%. It was a stunning quarter for the company, with a significant improvement in gross margin 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 27.5% year on year to $65.5 million, slowing down from the 54.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.02 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 21.6%.

Looking at Flywire's peers in the finance and HR software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Paycor delivered top-line growth of 28.9% year on year, beating analyst estimates by 4.34% and Paycom Software reported revenues up 30% year on year, exceeding estimates by 1.06%. Paycor traded up 2% on the results, Paycom Software was down 1.73%. Read our full analysis of Paycor's results here and Paycom Software's results here.

Investors in the software segment have had steady hands going into the earnings, with the stocks up on average 0.93% over the last month. Flywire is down 9.51% during the same time, and is heading into the earnings with analyst price target of $31.6, compared to share price of $23.61.

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.