On Wednesday, Deutsche Bank revised its price target for Flywire (NASDAQ:FLYW), a provider of global payment and receivables solutions, reducing it to $25 from the previous $35, while sustaining a Buy rating on the stock. The adjustment follows Flywire's first-quarter 2024 report, which showed revenue, excluding ancillary services, aligning with estimates at approximately $110 million, marking a 24% year-over-year increase. The company also surpassed expectations with its adjusted EBITDA, achieving around $13 million, which corresponds to roughly 12% margins.
Flywire had to revise its full-year 2024 revenue guidance downward by about $8 million at the midpoint, primarily due to the strengthening of the US dollar. Despite this, the company's constant currency top-line guidance remains unchanged. For the second quarter of 2024, Flywire's revenue growth guidance was set at approximately 21-31% year-over-year, lower than what many investors anticipated based on Deutsche Bank's more conservative prediction.
The revised second-quarter outlook is attributed to the timing of revenues from Canada and foreign exchange impacts.
The guidance range is notably broader than Flywire's typical forecast, which usually spans around 6 percentage points, reflecting the current high level of uncertainty in the business environment. Additionally, despite Flywire's first-quarter adjusted EBITDA outperformance, the company did not project an improvement in adjusted EBITDA margins for the full year, which had been expected to be conservative.
InvestingPro Insights
As investors digest the latest guidance and Deutsche Bank's revised price target for Flywire, a glance at real-time metrics from InvestingPro provides a more detailed financial picture. The company's market capitalization stands at $2.55 billion, reflecting its position in the market. Despite a challenging period with the stock performing poorly over the last month, down by 12.74%, Flywire's revenue growth remains robust, with a 39.3% increase over the last twelve months as of Q4 2023. This growth trajectory is supported by a solid gross profit margin of 63.45%.
Two InvestingPro Tips offer additional insights: Flywire's net income is expected to grow this year, and although the company has not been profitable over the last twelve months, analysts predict it will turn a profit this year. These projections are crucial for investors considering the company's future profitability against the backdrop of its recent performance and market conditions.
For those seeking deeper analysis, InvestingPro offers more tips on Flywire, which can be accessed at https://www.investing.com/pro/FLYW. Utilize the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of financial data and expert insights to inform your investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.