Flywire said its total payments volume in the fourth quarter surged 75% to $3.1 billion, underpinned by growth in cross-border and domestic transactions, and particular demand in education and other verticals that are still greenfield opportunities for payments modernization.
That traction in payments volume helped the company see 56% in top-line revenue growth, less ancillary services, to $45.9 million, as detailed in supplemental materials, besting the Street at $42 million.
CEO Mike Massaro said on the conference call Wednesday (March 2) with analysts that the company continues to focus on “high stakes high-value payments in a series of industries that have historically been poorly digitized — specifically education, healthcare, and travel business to business payments.”
He said on the call for the education, healthcare and travel industries, the current addressable market for Flywire’s solutions stands at $1.7 trillion in global payment volume. B2B business expands the addressable market for the company’s solutions, which represents $10 trillion in payment volume. Enrollment at institutions of higher education is on an upswing, as is the intent of health care execs to upgrade their tech and payment processes.
Continued Traction Within Education
With a nod to the education vertical, the company said earlier this year that it had linked with savings facilitator Ascensus to digitize and streamline tuition payments from 529 college savings plans to colleges and universities across the U.S.
Read Also: Flywire, Ascensus Partner on College Savings Plans
Chief Financial Officer Michael Ellis on the fourth-quarter Flywire call that net revenue retention rates are higher than they were before COVID struck.
The company experienced revenue and total payment volume growth across all regions verticals and revenue types. When compared to Q4 2020 specifically, the latest transaction revenue increased 69% driven by an 81% increase in transaction payment, volume platform. Usage-based fee revenue increased 16% compared to Q4 2020 due to a 65% increase in platform and usage-based payments, management said.
The company guided to Q1 revenue at $59 million to $63 million, where the Street is at $54 million.
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