EX-99.2 3 d781598dex992.htm EX-99.2 EX-99.2

Exhibit 99.2 Q4 2023 Earnings supplement February 27, 2024


Disclosures This presentation includes forward -looking s ta tements within the mea ning of the Pr iva te Secur ities Litiga tion Refor m Act of 1995 a nd Section 21E of the Secur ities Excha nge Act of 1934, a s a mended. All s ta tements other tha n s ta tements of his tor ica l fa cts conta ined in this pr es enta tion, including s ta tements r ega r ding Flywir e’s a bility to s ucces s fully implement Flywir e’s bus ines s pla n, futur e r es ults of oper a tions a nd fina ncia l pos ition, bus ines s s tr a tegy a nd pla ns a nd Flywir e’s objectives for future opera tions , a re forwa rd -looking s tatements . The wor ds “believe,” “ma y,” “will,” “es tima te,” “continue,” “a nticipa te,” “intend,” “expect,” “pla ns ,” “potentia l,” “s eeks ,” “pr ojects ,” “s hould,” “could” a nd “would” a nd s imila r expr es s ions a r e intended to identify for wa r d -looking s ta tements , a lthough not a ll for wa r d-looking s ta tements conta in thes e identifying wor ds . Flywir e ha s ba s ed thes e for wa r d-looking s tatements la r gely on Flywir e’s cur r ent expecta tions a nd pr ojections a bout futur e events a nd fina ncia l tr ends tha t Flywir e believes ma y a ffect Flywir e’s fina ncia l condition, r es ults of oper a tions , business str a tegy, shor t-ter m a nd long-ter m bus ines s oper a tions a nd objectives , a nd fina ncia l needs . Thes e for wa r d-looking s tatements a r e s ubject to a number of r is ks , uncer ta inties a nd a s s umptions tha t a r e des cr ibed in the Ris k Fa ctor s a nd Ma na gement's Dis cus s ion a nd Ana lys is of Fina ncia l Condition a nd Res ults of Oper a tions s ections of Flywir e's Annua l Repor t on For m 10-K for the yea r ended December 31, 2022 a nd Qua r ter ly Repor t on For m 10-Q for the qua r ter ended September 30, 2023, which a r e on file with the Secur ities a nd Excha nge Commis s ion (SEC) a nd a va ila ble on the SEC's webs ite a t www.s ec.gov. Additiona l fa ctor s ma y be des cr ibed in thos e s ections of Flywir e's Annua l Repor t on For m 10-K for the yea r ended December 31, 2023 , expected to be filed with the SEC in the fir s t qua r ter of 2024. In light of thes e r is ks , uncer ta inties a nd a s s umptions , the for wa r d -looking events a nd cir cums ta nces dis cus s ed in this pr es enta tion ma y not occur a nd a ctua l r es ults could differ ma ter ia lly a nd a dver s ely fr om thos e a nticipa ted or implied in the for wa r d-looking s ta tements . You s hould not r ely upon for wa r d-looking s ta tements a s pr edictions of futur e events or per for ma nce. In a ddition, pr ojections , a s s umptions a nd es tima tes of the futur e per for ma nce of the indus tr ies in which Flywir e oper a tes a nd the ma r kets it s er ves a r e inher ently impr ecis e a nd s ubject to a high degr ee of uncer ta inty a nd r is k. All fina ncia l pr ojections conta ined in this pr es enta tion a r e for wa r d -looking s ta tements a nd a r e ba s ed on Flywir e’s ma na gement’s a s s es s ment of s uch ma tter s . It is unlikely, however , tha t the a s s umptions on which Flywir e ha s ba s ed its pr ojections will pr ove to be fully cor r ect or tha t the pr ojected figur es will be a tta ined. Flywir e’s a ctua l futur e r es ults ma y differ ma ter ia lly fr om Flywir e’s pr ojections , a nd it ma kes no expr es s or implied r epr es enta tion or wa r r a nty a s to a tta ina bility of the r es ults r eflected in thes e pr ojections . Inves tments in Flywir e’s s ecur ities involve a high degr ee of r is k a nd s hould be r ega r ded a s s pecula tive. Cer ta in infor ma tion conta ined in this pr es enta tion r ela tes to or is ba s ed on s tudies , publica tions , s ur veys a nd other da ta obta ined fr om thir d-pa r ty s our ces a nd Flywir e’s own inter na l es tima tes a nd r es ea r ch. While Flywir e believes thes e thir d-pa r ty s our ces to be r elia ble a s of the da te of this pr es enta tion, it ha s not independently ver ified, a nd ma kes no r epr es enta tion as to the adequacy, fair nes s , accur acy or completenes s of any infor mation obtained fr om thir d-pa r ty s our ces . In a ddition, a ll of the ma r ket da ta included in this pr es enta tion involves a number of a s s umptions a nd limita tions , a nd ther e ca n be no gua r a ntee a s to the a ccur a cy or r elia bility of s uch a s s umptions . Fina lly, while Flywir e believes its own inter na l r es ea r ch is r elia ble, s u ch r es ea r ch ha s not been ver ified by a ny independent s ou r ce. The infor ma tion in this pr es enta tion is pr ovided only a s of Febr ua r y 27, 2024, a nd Flywir e under ta kes no obliga tion to upda te any forwa rd-looking s tatements contained in this pr es enta tion on a ccount of new infor ma tion, futur e events , or other wis e, except a s r equir ed by la w. This pr es enta tion conta ins cer ta in non-GAAP fina ncia l mea s ur es a s defined by SEC r ules . Flywir e ha s pr ovided a r econcilia tion of thos e mea s ur es to the mos t dir ectly compa r a ble GAAP mea s ur es , which is a va ila ble in the Appendix. The compa ny ha s not pr ovided a qua ntita tive r econcilia tion fr om for eca s ted adjus ted EBITDA to for eca s ted GAAP net income (los s ) or to for eca s ted GAAP income (los s ) befor e income ta xes , beca us e it is una ble without ma king unr ea s ona ble effor ts , to ca lcula te cer ta in r econciling items with confidence. Thes e items include but a r e not limited to income ta xes which a r e dir ectly impa cted by unpr edicta ble fluctua tions in the ma r ket pr ice of the company's s tock. 2


Execution Fulfillment Our mission is to deliver the most important and complex payments 3


Q4 2023 performance


GAAP financial highlights Q4 2023 $100.5 M 61.5% $1.3M Revenue Gross Margin Net Income 5


Key operating metrics (Non -GAAP) Q4 2023 $5.4B $96.1M $63.5M $7.7M 1 1 1 1 +33% +43% + 43% + 692% Tota l Revenue Les s Adjus ted Adjus ted 2 pa yment Ancilla r y Gr os s Pr ofit EBITDA volume Ser vices 1. Repr es ents Y-o-Y Gr owth a s compa r ed to Q4 2022. 2. Pr ior yea r Adjus ted Gr os s Pr ofit ha s been r eca s t to a lign with the upda ted methodology a s des cr ibed in the Appendix. 6 See Appendix for r econcilia tion to GAAP a mounts .


FY 2023 performance


GAAP financial highlights FY 2023 $403.1M 61.4% $(8.6)M Revenue Gross Margin Net Loss 8


Key operating metrics (Non -GAAP) FY 2023 $24.0B $381.5M $254.1M $42.0M 1 1 1 1 +33% +43% + 40% + 183% Tota l Revenue Les s Adjus ted Adjus ted 2 pa yment Ancilla r y Gr os s Pr ofit EBITDA volume Ser vices 1. Repr es ents Y-o-Y Gr owth a s compa r ed to FY 2022. 2. Pr ior yea r Adjus ted Gr os s Pr ofit ha s been r eca s t to a lign with the upda ted methodology a s des cr ibed in the Appendix. 9 See Appendix for r econcilia tion to GAAP a mounts .


Business update


2023 Business highlights Adj. EBITDA expanded Strong overall revenue less 700+ New clients across by 546 bps YoY as a % of ancillary services growth of our verticals Revenue Less Ancillary +43% YoY Services [Add Image]S tudy Further strengthening our Continued strong execution Tight integrations with payments network in India, leading ERP systems in U.S. on our targeted M&A strategy China and elsewhere education market See Appendix for reconciliation to GAAP amounts. 11 1


Our growth is underpinned by large TAMs* Education Healthcare Travel B2B (1) (1) (1) (1) $530B TAM $660B TAM $500B TAM $10T TAM 20.4% 4.6% 7.9% 7.4% (2) (2) ) (2) (2 Annual growth Annual growth Annual growth Annual growth out of pocket of luxury of international of global healthcare expenses travel market student market e-invoicing 18K+ 600+ 280BN 1.4BN (3) (3) (3) Colleges/Universities (3) US health systems Invoices sent International tourists ~8% <10% <1% <1% FLYW adoption in ’23 FLYW adoption in ’23 FLYW adoption in ’23 FLYW adoption in ’23 among Higher -Ed Institutions among US health systems within global B2B invoices by travelers 12 *Adoption is as of December 31, 2023. For citations, please refer to appendix


We increase TAM penetration through key initiatives Education Healthcare Travel B2B $660B TAM $500B TAM $530B TAM $10T TAM ● Best -in-class, broadest● Strong channel partnerships● New geographies● New ecosystem integrations partnerships +>40 others ● Prioritization of key sub - ● Deep agent solutions● Targeting specialty providers ● New travel end markets verticals $100B+ in out -of-pocket & penetration (3) $16B ocean experience TAM (2) $50B cross -border spend 1,500 education agencies (4) (3) insurance market TA M $14B Niche OTAs TAM 75% of Australian international (1) students use education agents + A D J A C E N T O P P O R T U N I T I E S ● Offering payer services ● Offering integrated financing ● Enabling luxury travel ● Exploring cross -border Oppor tunity a cr os s 500K+ via partnership commissions strategic payables inter na tiona l s tudents a nd Fina nc ing a c c ou nts r e c e iva ble La r ge ly u ndigitize d pa yme nt 3 5 % of bu s ine s s e s r e por t tr a veler s via pa r tne r s hip be ne fits volu me tied to DMC bookings major challe nge with payable ● Managing international hos pitals ’ financial he alth pr oce s s ing cos ts and applications (4) wor kflows 13 For cita tions , plea s e r efer to a ppendix


Education spotlight: Multiple levers to pull to sustain growth in education New client Geographic Product M&A acquisition expansion Expansion ✔650+ total new clients ✔ 10 new ma r kets ✔Admissions softwa r e added in 2022 & 2023 ope ne d s ince 2021 for & top of funnel s igning educa tion ✔Agent por ta l a doption clients ✔Integrations with key ✔Bes t-in-cla ss domestic software providers ✔Repr es ents $10B+ in pa yments ca pa bilities (1) TAM Acquire higher Identify and add high - Grow footprint with Grow global footprint education customers value adjacencies customers 120%+ NRR 14 For citations, please refer to appendix


Education spotlight: Plenty of runway for growth Progress with Higher -Ed Institutions Progress with Higher -Ed Students ~18K ~220M ~1,500 ~2M ~1,250 ~1M * Analyst Day 2023 Total Higher -Ed Analyst Day 2023 Total number of * (1) 2022 Institutions 2022 higher -ed students 8% Penetration of Higher-Ed Institutions <1% Penetration of Higher-Ed Students *Flywire student payers in 12 months prior to Analyst Day 2022 and Flywire student payers in 2023 15 For citations, please refer to appendix


Education spotlight: Continuum of software solutions software drives value SFS - Accounts Flywire Payment in payments Receivable Solution Enablement Platform Flywire offers a seamless Client leverages Flywire“full suite” (Student Client leverages Flywire Advantage consumer experience, Financial Software) to offer a more (platform + global payment network + leveraging our global payment comprehensive view of the student bill, vertical software) focused on payment network, working with a broad enhanced payment plan functionality, enablement (any combination of one time, range of Student Information collections management platform, e -store, recurring/installment, domestic, and/or and more Systems cross -border transactions) Flywire can receive and post student data ensuring full lifecycle management of the student account >40 additional + Integrations with all major ERP/SIS providers to support both use cases integrations 16


Flywire has built two very robust integrations with PeopleSoft to support Flywire's Student Financial Software & Payments Education Enablement Platform spotlight: PeopleSoft expertise Deep experience working with PeopleSoft across higher education Since 2017 Flywire has maintained Oracle Gold Partner status Multiple languages are supported with our integration 17


Flywire has built multiple robust integrations with Banner, Colleague & Recruit to support Flywire's Student Financial Software & Education Payments Enablement Platform spotlight: Ellucian expertise Deep experience working with ellucian across higher education Silver level partner Flywire has multiple validated integrations with Ellucian Platform integrations for all major configurations: On - Premise, Managed Service, or SaaS 18


Strength via increasingly global & diversified revenue Our education businesses grew in the U.S. and internationally as we continued to expand with universities, colleges, and other education sectors, we expanded our solution set, and added domestic payments in more countries. Travel and B2B grew rapidly and contribute a larger share of Flywire’s Revenue Note: Represents share of total Flywire Revenue Less Ancillary Services in respective periods. Non-client Pay Any School revenue included in Non-US Education 19


Monetization spotlight: Strong spreads on our transaction volume $6BN E ● Spreads +/ - 15 basis points from average over two E years $4BN E ● Monetization Rate T and Adjusted T Gross Margins $2BN T driven by E T seasonality of payment type and vertical mix $0 Monetization Processing Transaction Seasonal Seasonal E T Rate Costs Volume Education Peak Travel Peak Monetization rate is the quotient of Transaction Revenue Less Ancillary Services divided by Transaction Payment Volume. 20


Growth algorithm


Flywire’s growth algorithm We continue to expect strong revenue growth in the medium term $Ms & growing Mid -single digits % Mid -single digits % 120%+ NRR Prior FY Existing client Ramp of New clients Current FY Payer Revenue growth clients signed signed in revenue Services in prior year current year ● M&A● Macro -conditions● New business and vertical opportunities Additional inputs to growth algorithm: 22 See Risk Factors in 10 -K for additional factors that could impact future revenue . *Illustrative chart - not to scale


NRR is core to Flywire’s growth Multiple land -and-expand opportunities contribute to NRR Additional segments within clients (e.g,. additional hospitals, school programs, subsidiaries) 125% Geographic expansion 2023 NRR New product modules Expanding our payment network Secular growth Consistent with 124% in 2022 and 3 -year average of 123% from 2019 to 2021 23


Our existing clients drive NRR & revenue growth 2023 NRR is 125% New and legacy clients expand over time to drive long -term strong NRR 1.Represents revenue less ancillary services (RLAS) 2.Includes RLAS contribution from WPM clients integrated with Flywire's cross border education solution 3.Does not include RLAS contribution from Simplee, WPM clients not integrated with Flywire’s cross border education solution, Cohort Go, StudyLink, Student Expenses, Payables, and Pay Any School 24


Sales team’s 2023 productivity supports 2024 objectives Sales teams expanded across verticals and geographies 700+ Sales ramp time improvement of more clients than 30% from start date to first deal signed signed 2023 Relationship managers focused on driving adoption and best practices Clients signed throughout year expected to have full -year effect in 2024 25


Key areas of new client acquisition for 2024 Making investments that are expected to benefit multiple verticals & opportunities Doubling down on Strategic payables successful G2M Increasing travel and education vertical Investments with high ROI payables, including commissions, Education Agent business, refunds and suppliers travel, B2B Capitalizing on new Client Excellence in partners, distribution & API strategy opportunities via StudyLink Opportunities with new agents Grow channel teams, expand integration and schools engineering and certified integrations 26


Payer Services: Spotlight on Australian insurance Insurance explained: 1 OSHC / OVHC Insurance is a requirement of all international students and vocational worker applicants as part of Australia’s visa application process Today’s offering: >$10M Flywire refers sales of policies by the top 6 insurance companies through a in 2023 combination of direct and indirect channels (primarily Flywire’s network of education counselors) Future opportunities: Attractive demographic of global students and travelers create multiple potential payer services opportunities 1. OSHC (Overseas Students Health Cover) Insurance / OVHC (Overseas Visitor Health Insurance) Flywire’s first >$10M revenue payer services offering 27


Financial outlook


Q1 2024 outlook* $106 – $111M $9 – $11M Revenue Less Ancillary Adjusted 1 Services EBITDA 1. Flywire has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net income (loss) or to forecasted GAAP income (loss) before income taxes within this presentation because Flywire is unable, without making unrea sonable efforts, to calculate certain reconciling items with confidence. These items include, but are not limited to income taxes which are direc tly impacted by unpredictable fluctuations in the market price of Flywire's stock. 29 29 *Assumes foreign exchange rates prevailing as of December 31, 2023


FY 2024 outlook* $483 – 509M $65 – 76M Revenue Less Ancillary Adjusted 1 Services EBITDA 1. Flywire has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net income (loss) or to forecasted GAAP income (loss) before income taxes within this presentation because Flywire is unable, without making unrea sonable efforts, to calculate certain reconciling items with confidence. These items include, but are not limited to income taxes which are direc tly impacted by unpredictable fluctuations in the market price of Flywire's stock. 30 30 *Assumes foreign exchange rates prevailing as of December 31, 2023


Appendix


Revenue Less Ancillary Services at constant currency* $USD in Millions 32


Revenue Less Ancillary Services & Adjusted Gross Margin Reconciliations * *Beginning with the quarter ended December 31, 2022, we have excluded depreciation and amortization from the calculation of ou r a djusted gross profit, which we believe enhances the understanding of the Company’s operating performance and enables more meaningful period to period comparisons. 33 $USD in Millions


Revenue disaggregation by revenue type 34 $USD in Millions


Net Income (Loss) to Adjusted EBITDA reconciliation $USD in Millions 35


Adjusted EBITDA Margin reconciliation Adjusted EBITDA Margin Three Months Ended Year Ended December 31, December 31, 2023 2022 Rate 2023 2022 Revenue (A) $ 100.5 $ 73.1 $ 27.4 $ 403. 1 $ 289. 4 Revenue less ancillary services (B) 96.1 67.4 28.7 381.5 267.1 EBITDA (C) 2.0 1.5 0.5 (0.9) (25.2) Adjusted EBITDA (D) 7.7 1.0 6.7 42.0 14.9 EBITDA Margin (C/A) 2.0% 2.0% 0.0% -0.2% -8.7% Adjusted EBITDA Margin (D/A) 7.6% 1.3% 6.3% 10.4% 5.1% EBITDA Margin using RLAS (C/B) 2.07% 2.18% -0.1% -0.23% -9.45% Adjusted EBITDA Margin using RLAS (D/B) 8.00% 1.44% 6.6% 11.02% 5.56% 36


Reconciliation of Revenue to Revenue Less Ancillary Services Guidance $USD in Millions 37


Source appendix Slide 12 1. For TAM calculations: a. Education: Based on net household payments to educational institutions in OECD countries in 2020 according to the Organisatio n for Economic Co -operation and Development (OECD) and payments made to private education institutions in Southeast Asia in 2015 according to EY Parthenon b. Healthcare: Based on U.S. out of pocket healthcare spending in 2019 according to the Centers for Medicare & Medicaid Services and cross -border healthcare payments in 2020 according to Patients Without Borders c. Travel: Based on global travel industry revenue in 2020 according to IBISWorld and management’s estimates that approximately 41% of the non -business and professional travel payment volume is addressable by our solutions d. B2B: Based on cross -border B2B inflows in 2020 according to Juniper and management’s estimates that at least 75% of total B2B pa yment volume is made by medium to large businesses and potentially addressable by our solutions 2. For growth calculations: a. Education: HolonIQ International Education Market Report, February 2022 b. Healthcare: CMS Office of the Actuary, 2021 -2030 Projections of National Health Expenditures, March 2022 c. Travel: Growth rate represents 2023E - 2025E projection to adjust for Covid bounce back; Technacio Luxury Travel Market Forecast and Analysis 2021 -2025 d. B2B: Facts & Factors E-Invoicing Market Report, February 2021 3. For adoption calculations: a. Education: UNESCO World Higher Education Database International Handbook of Universities, Edition 2021 b. Healthcare: Agency for Healthcare Research and Quality, Compendium of U.S. Health Systems Report, 2018 c. Travel: Statista Report on Number of International Tourist Arrivals Worldwide from 1950 to 2021 (using 2019 to adjust for Cov id) d. B2B: Billentis e -Invoicing journey Report, September 2019 Slide 13 1. Australian government Department of Education International Education Agent Report, 2018 2. Based on U.S. out of pocket healthcare spending in 2019 according to the Centers for Medicare & Medicaid Services 3. Grand View Research estimates of luxury yachting market size market 2022, Grandview Research estimate of diving market size 2 022 , and Spherical Insights estimate of global cruise ship tourism market size 2023; Xola report on 2022 booking trends in the US; PhocusWright report on OTA market size 2021; D -EDGE Hospitality Solutions report on hotel dist ribution trends 2022 and management estimates of niche OTA share of market 4. Balance 2023 List of B2B Statistics, 2023, IMF report on Working Abroad: the Benefits Flowing from Nationals Working in Other Economies 2004; International Citizens Ins ura nce overview of International Health Insurance, accessed 2024; Number of mobile tertiary international students according to UNESCO Institute for Statistics 2021; AECC Stud y Abroad Consultants health insurance for students, accessed 2024; World Wealth Report 2023; William Russell report on international life insurance, accessed 2024; Tourism academy report on US inbound travelers 2021; Ins ureMyTrip report on cost of travel insurance 2023 Slide 14 1. Based on net household payments to educational institutions in OECD countries in 2020 according to the Organisation for Econo mic Co-operation and Development (OECD); payments made to private education institutions in Southeast Asia in 2015 according to EY Parthenon; and household education spending in Latin America and the Caribbean accordi ng to Education Finance and Policy, January 2019 Slide 15 1. World Bank Tertiary Education Overview, October 2021 38