Paymentus Holdings, Inc. (PAY), a provider of cloud-based bill payment technology solutions, reported its first quarterly results following the company’s listing on May 26, 2021. The company delivered solid second-quarter results, backed by a 40% growth in the number of transactions processed.
Together with the second-quarter results, PAY announced a cash and stock deal worth $152.2 million to buy Payveris, which will expand the reach of its proprietary Instant Payment Network to financial institutions. Shares rose 1.5% on the news and closed at $29.88 on August 10. (See Paymentus stock charts on TipRanks)
Payveris is a provider of cloud-based software that enables over 265 banks and credit unions to modernize and simplify bill pay, person-to-person (P2P), account-to-account (A2A) money movement, and fraud prevention through a unified platform. The deal is expected to close in the third quarter of 2021, subject to certain closing conditions.
Commenting on the deal, Dushyant Sharma, CEO and Founder of Paymentus, said, “This acquisition not only accelerates our ability to disrupt the legacy bill pay paradigm but also helps us deliver greater value to our billers, strategic partners, and financial institutions.”
The company reported second-quarter earnings of $0.02 per share, down 60% from the year-ago period, but marginally better than the Street’s estimate of $0.01 per share.
In other positive news, total revenue came in at $93.49 million, up 30.3% year-over-year, and significantly outpaced the analyst consensus estimate of $89.68 million.
Including the Payveris and Finovera acquisitions, the company guided for full-year 2021 revenue to fall in the range of $378 – $382 million, while the consensus estimate is pegged at $373.19 million.
Prior to the second-quarter results, Robert W. Baird analyst David Koning reiterated a Buy rating on the stock with a price target of $34, implying 13.8% upside potential to current levels.
Koning expected Paymentus to report solid revenue growth, surpassing analysts’ estimates.
Based on 6 Buys and 2 Holds, the stock has an overall Strong Buy consensus rating. The average Paymentus price target of $36.75 implies 23% upside potential to current levels. Shares have increased 4.4% since its IPO in May 2021.
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