Paymentus Holdings, Inc. ((PAY)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Paymentus Holdings, Inc. was marked by a strong positive sentiment, highlighting record revenue and adjusted EBITDA growth. The company demonstrated successful client onboarding and expansion into new verticals, despite facing some challenges with contribution margin and volume discounts.
Record-Breaking Revenue Growth
Revenue for Paymentus reached an impressive $310.7 million, showcasing a 34.2% year-over-year increase. This growth was primarily driven by an increased number of billers and higher transaction values, underscoring the company’s expanding market presence.
Strong Adjusted EBITDA Performance
The company reported an adjusted EBITDA of $35.9 million, which represents a 45.9% year-over-year increase. This achievement also marked a record 36.5% adjusted EBITDA margin, reflecting efficient operational management and profitability.
Significant Contribution Profit Increase
Contribution profit saw a notable increase to $98.3 million, up 22.8% from the previous year. Additionally, there was a 3.8% rise in contribution profit per transaction, indicating improved financial performance per transaction.
Successful New Client Onboarding
Paymentus enhanced its onboarding processes, successfully integrating several large enterprise clients. This has resulted in a substantial backlog and improved market visibility, positioning the company for continued growth.
Expansion into New Verticals
The company successfully onboarded a large B2B client in a new vertical, demonstrating the adaptability of its platform and expanding its total addressable market (TAM).
Decrease in Contribution Margin
Despite the overall positive performance, the contribution margin decreased by 2.9% to 31.6% compared to the prior year. This was attributed to the addition of large, high-volume enterprise customers.
Pressure from Volume Discounts
The earnings call highlighted the pressure from volume discounts requested by larger enterprise customers. While these discounts can impact profitability, they are offset by the company’s overall growth strategy.
Forward-Looking Guidance
Paymentus provided robust financial guidance for the future, reflecting its strong performance and strategic growth. The company raised its full-year 2025 guidance, projecting revenues between $1.173 billion and $1.178 billion, contribution profit ranging from $378 million to $380 million, and adjusted EBITDA between $132 million and $134 million. A strong customer pipeline and significant onboarding activities underpin the company’s confidence in sustained growth into 2026.
In conclusion, the earnings call for Paymentus Holdings, Inc. was overwhelmingly positive, showcasing record growth in revenue and adjusted EBITDA. The company continues to expand its market presence through successful client onboarding and entry into new verticals. Despite some challenges with contribution margin and volume discounts, Paymentus remains confident in its strategic growth and future financial performance.