Flywire Corporation

Good afternoon, and welcome to the Flywire Corporation First Quarter 2022 Earnings Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key, followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Keal Hollis, VP of IR and FP&A. Please go ahead.

Thank you, and good afternoon. With me on today's call are Mike Massaro, Chief Executive Officer, Rob Orgel, President and Chief Operating Officer, and Mike Ellis, Chief Financial Officer. Our first quarter 2022 earnings press release, supplemental presentation, and when filed associated quarterly report on Form 10-Q can be found at ir.flywire.com. During the call, we will be discussing certain forward-looking information. Actual results could differ materially from those contemplated by these forward-looking statements. We will also be discussing certain non-GAAP financial measures, Please refer to our press release and SEC filings for more information on the risks regarding these forward-looking statements that could cause actual results to differ materially, risk factors associated with our business, and required disclosures related to non-GAAP financial measures. This call is being webcast live and will be available for replay on our website. I would now like to turn the call over to Mike Massaro.

Thank you, Akil, and thank you to everyone that is joining us today. We are excited to share our Q1 2022 results. with all of you and appreciate the interest you continue to show in Flywire. In short, 2022 has started out strong for Flywire. In a few minutes, Rob Orgel, our president and COO, as well as Mike Ellis, our CFO, will go into greater detail about our operating and financial performance during the quarter. But first, let me start with a few financial highlights from the quarter. Revenue, less ancillary services. was $59.3 million, representing a year-over-year revenue growth of 47%, driven predominantly by strength in our education and travel businesses. Total payment volume for the quarter increased 46% compared to Q1 2021. Across all our verticals, we added over 130 new clients during the quarter, our most new clients for a quarter as a public company. Flywire was also named to Inc. Magazine's 2022 Best Workplaces list, further evidence of our focus on strengthening our Flymate community and being seen as an employer of choice in a highly competitive global marketplace for talent. By now, most of you know that Flywire focuses on high stakes, high value payments within industries such as education, healthcare, travel, and B2B. Within these industries, digitization is still in the early stages. and payment experiences are fragmented and often difficult for both payer and receiver. Ultimately, we are helping our clients get paid and helping their customers pay seamlessly and easily from all over the world. We expect that the secular trends in these industries, coupled with the inevitable shift towards digitization of payments, positions Flywire very well for growth for years to come. In times like these, where there are macroeconomic uncertainties, we believe our solutions are even more critical as our clients need a better way to get paid while removing costly manual activities from their back office. Now I want to spend a few moments discussing the trends we are seeing in each industry that we serve. First, starting with travel, which continues to show positive trends. At the end of Q1, the TSA traveler checkpoint data showed that passenger counts have reached 91% of pre-pandemic volumes measured over the same period in 2019. This is validated by our recent survey report of luxury travelers, 78% of whom said spending on travel now is more important to them than it was before the pandemic started. Our report also showed that more than half of travelers surveyed, 51%, are even booking two trips at once to ensure that they get away for that much needed break. For our education vertical, prominent US colleges and universities are reporting a surge in international applications compared to the past two years, fueled by the easing of pandemic travel restrictions and new policies that allow potential students to apply without SAT or ACT scores. The Washington Post recently reported that the Common Application, an online platform for hundreds of schools, found that as of March 15, 2022, the number of international applicants had grown 34% since 2020, exceeding the 12% rate of growth for U.S. applicants over that same period. Again, these are very favorable trends for Flywire. In healthcare, rising out-of-pocket costs are accelerating the industry's affordability crisis. According to a new patient experience survey from trade association PHRMA, more than a quarter of Americans reported medical debt due to a doctor or hospital bills that they couldn't afford. And the average debt was as high as $4,000 per patient. There is an imminent need for hospitals and health systems to continue to invest in technology-driven solutions to make healthcare more affordable. As for our B2B vertical, we continue to see success as so many businesses are in need of a solution like ours to automate their accounts receivable. From manager level to CFOs, finance teams know that their processes around AR cost them too much money and time, slow their international expansion, and even hold back profitability. In our second annual survey of CFOs and finance professionals, more than 92% of respondents stated their earnings per share would actually increase if they could figure out a better way to manage the accounts receivable process. We continue to be quite excited about the large opportunities within the industries that we serve here at Flywire. And these positive trends further help our confidence about 2022. Finally, I wanted to spend a few minutes previewing our analyst day, which will take place next week on May 19th. We will be reviewing our vision and opportunities for Flywire, as well as our competitive advantages. We will have a session with our vertical leaders to deepen the understanding of the industries we serve. We will be discussing our key investment areas in detail, and how they fit within our many existing growth levers. We will touch on the strength of our FlyMate community and our ongoing ESG efforts. Lastly, we will share financial data points that we believe will be helpful when looking at the business over the long term. We are really excited to see you in person and others virtually next week at our first Analyst Day as a public company. However, since this is our Q1 earnings call, and we are really excited to share more about our performance, I would like to turn the call over to Rob Orgel, our President and COO, to share updates on our operating results and growth initiatives during the quarter.