What To Expect From Flywire’s (FLYW) Q1 Earnings

Jabin Bastian /
2022/05/09 7:45 am EDT
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Cross border payment processor Flywire (NASDAQ: FLYW) will be reporting earnings tomorrow after market close. Here's what investors should know.

Last quarter Flywire reported revenues of $51.3 million, up 54.6% year on year, beating analyst revenue expectations by 24.8%. It was a strong 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 26.3% year on year to $56.8 million, slowing down from the 37.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.04 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 since going public on average by 29.6%.

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 of what we can expect. Paycor reported revenues up 22.7% year on year, exceeding estimates by 4.21%. Paycor traded flat on the results. Read our full analysis of Paycor's results here.

Triggered by the Federal Reserve's hawkish stance on interest rates, shares of technology companies have been facing sell-off in 2022 and software stocks have been swept alongside with it, with share price down on average 18.8% over the last month. Flywire is down 11.5% during the same time, and is heading into the earnings with analyst price target of $40, compared to share price of $25.65.

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.