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BOSTON - Flywire Corporation (NASDAQ:FLYW) saw its shares tumble 22.4% after the global payments company reported fourth-quarter earnings that fell short of analyst expectations and announced a major acquisition.
The company posted a loss of -$0.12 per share for Q4, missing the consensus estimate of breakeven earnings. Revenue came in at $117.6 million, below analyst projections of $120.26 million, despite growing 17% YoY.
Flywire also revealed plans to acquire Sertifi, a hospitality-focused software and payments platform, for $330 million. The deal aims to expand Flywire’s presence in the travel sector but appears to have spooked investors given the hefty price tag.
"Our fourth quarter results capped off another strong year for Flywire as we continued to grow the business while navigating a complex macro environment with significant headwinds," said CEO Mike Massaro.
The company provided guidance for fiscal year 2025, projecting 10-14% YoY growth in revenue less ancillary services on an FX-neutral basis. Management expects adjusted EBITDA margins to improve by 200-400 basis points.
Flywire also announced a restructuring that will impact about 10% of its workforce as part of broader efficiency measures. The moves come as the company undertakes an operational and business portfolio review to optimize investments.
For Q1 2025, Flywire forecasts 11-14% YoY growth in FX-neutral revenue less ancillary services. The Sertifi acquisition is expected to contribute $3-4 million in Q1 revenue and $30-40 million for the full fiscal year.
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