Business Wire | Nov 9, 2021 04:30PM EST

Paymentus Reports Third Quarter 2021 Financial Results

Nov. 09, 2021

REDMOND, Wash.--(BUSINESS WIRE)--Nov. 09, 2021--Paymentus Holdings, Inc. ("Paymentus") (NYSE: PAY), a leading provider of cloud-based bill payment technology solutions, today announced financial results for its third quarter ended September 30, 2021.

"I'm very proud of the progress we made in the third quarter. Our sales, implementations and financial performance were strong and we've positioned ourselves to have significant momentum as we turn towards 2022," said Dushyant Sharma, Founder and CEO. "We continue to expand and strengthen our partnerships to expand distribution of our platform and network."

Business Highlights and Recent Developments

* Processed 70.6 million transactions, an increase of 44.9% from the third quarter of 2020. * Expanded relationship with JPMorgan to power Digital Bill Payment to Treasury Management clients.

"I'm pleased to see Paymentus accelerate to 37% contribution profit growth year-over-year in the third quarter as well as increase our guidance for contribution profit growth to 30% for the full year," said Matt Parson, CFO. "Our top-line growth coupled with mid-to-upper teens adjusted EBITDA margin demonstrate our ability to deliver standout performance at scale."

Third Quarter 2021 Financial Highlights

* Revenue was $101.7 million, an increase of 30.3% from the third quarter of 2020. * Gross profit was $31.2 million compared to $22.7 million for the third quarter of 2020. Adjusted gross profit was $32.6 million compared to $23.5 million for the third quarter of 2020. * Contribution profit was $40.7 million, compared to $29.7 million for the third quarter of 2020, representing an increase of 37.1%. * Net income was $0.4 million and GAAP earnings per share was $0.0. Non-GAAP net income was $1.4 million and Non-GAAP earnings per share was $0.01. * Adjusted EBITDA was $5.5 million, representing a 13.6% adjusted EBITDA margin compared to $6.0 million, or a 20.2% adjusted EBITDA margin, for the third quarter of 2020. * Cash and cash equivalents were $177.5 million as of September 30, 2021.

2021 Financial Outlook

Paymentus expects revenue for the full year 2021 to be between $391 million and $393 million or 29.5% to 30.5% growth year-over-year. Contribution profit is anticipated to be between $156 million and $158 million or 30% and 31% growth year-over-year (1). It expects adjusted EBITDA to be between $26.5 million and $28 million, with an adjusted EBITDA margin of approximately 17% to 18%.

Paymentus has not reconciled its outlook for adjusted EBITDA or adjusted EBITDA margin because foreign exchange gains and losses cannot be reasonably calculated or predicted nor can the probable significance be determined at this time. Accordingly, a reconciliation is not available without unreasonable effort.

Gross profit is estimated to be approximately 76.5% of contribution profit(1) and other cost of revenue is estimated to be approximately 23.5% of contribution profit.

Conference Call Information

In conjunction with this announcement, Paymentus will host a conference call for investors at 2:00 p.m. PT (5:00 p.m. ET) today to discuss third quarter results and our outlook for the year. The live webcast and replay will be available at the Investor Relations section of Paymentus' website.

About Paymentus

Paymentus is a leading provider of cloud-based bill payment technology and solutions for more than 1,300 billers across North America. Our omni-channel platform provides consumers with easy-to-use, flexible and secure electronic bill payment experiences through their preferred payment channel and type. Paymentus' proprietary Instant Payment Network(tm), or IPN, extends our reach by connecting our IPN partners' platforms and tens of thousands of billers to our integrated billing, payment, and reconciliation capabilities. For more information, please visit www.paymentus.com.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding our financial outlook for 2021, our expectation for contribution profit growth in 2022 and our expectations around continued expansion of our partnerships. Forward-looking statements include statements containing words such as "expect," "anticipate," "believe," "project," "will" and similar expressions intended to identify forward-looking statements. These forward-looking statements are based on our current expectations. Forward-looking statements involve risks and uncertainties. Our actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to our ability to effectively manage our growth and expand our operations, including into new channels and industry verticals across different markets; our ability to expand and retain our biller, partner and consumer base; the continued impact of the COVID-19 pandemic on our operating results, liquidity and financial condition and on our employees, billers, partners, consumers and other key stakeholders; our ability to remain competitive; our ability to develop new product features and enhance our platform and brand; our future acquisitions and strategic investments; our ability to hire and retain experienced and talented employees; and other risks and uncertainties included under the caption "Risk Factors" and elsewhere in our filings with the Securities and Exchange Commission, or SEC, including, without limitation, our Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 filed with the SEC on August 11, 2021 and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, which we expect to file with the SEC on November 10, 2021. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and we undertake no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.

Use of Non-GAAP Measures

In addition to disclosing financial measures in accordance with accounting principles generally accepted in the United States, or GAAP, this press release and the accompanying tables contain certain non-GAAP financial measures, including contribution profit, adjusted gross profit, adjusted EBITDA, adjusted EBITDA margin, free cash flow, non-GAAP net income and non-GAAP EPS. We use non-GAAP measures to supplement financial information presented on a GAAP basis. We believe that excluding certain items from our GAAP results allows management and our board of directors to more fully understand our consolidated financial performance from period to period and helps management project our future consolidated financial performance as forecasts are developed at a level of detail different from that used to prepare GAAP-based financial measures.

Contribution profit is defined as gross profit plus other cost of revenue. Other cost of revenue equals cost of revenue less interchange and assessment fees paid by us to our payment processors.

Adjusted gross profit is defined as gross profit adjusted for non-cash items, primarily stock-based compensation and amortization.

Adjusted EBITDA is defined as net income before other income (expense) (which consists of interest income (expense), net and foreign exchange gain (loss)), depreciation and amortization and income taxes, adjusted to exclude the effects of stock-based compensation expense and certain nonrecurring expenses that management believes are not indicative of ongoing operations, consisting primarily of professional fees and other indirect charges associated with our initial public offering.

Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of contribution profit.

Free cash flow is defined as net cash provided by (used in) operating activities less capital expenditures and capitalized internal-use software development costs.

Non-GAAP net income and non-GAAP EPS are defined as net income excluding certain nonrecurring items such as discrete tax items, one-time expenses or other non-cash items, including amortization of acquisition-related intangibles.

We believe these non-GAAP measures provide our investors with useful information to help them evaluate our operating results by facilitating an enhanced understanding of our operating performance and enabling them to make more meaningful period-to-period comparisons. In particular, we exclude interchange and assessment fees in the presentation of contribution profit because we believe inclusion is less directly reflective of our operating performance as we do not control the payment channel used by consumers, which is the primary determinant of the amount of interchange and assessment fees. We use contribution profit to measure the amount available to fund our operations after interchange and assessment fees, which are directly linked to the number of transactions we process and thus our revenue and gross profit.

We use these non-GAAP measures in conjunction with GAAP measures as part of our overall assessment of our performance and liquidity, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance and liquidity. There are limitations to the use of the non-GAAP measures presented in this press release. Our non-GAAP measures may not be comparable to similarly titled measures of other companies; other companies, including companies in our industry, may calculate non-GAAP measures differently than we do, limiting the usefulness of those measures for comparative purposes. These non-GAAP measures should not be considered in isolation from or as a substitute for financial measures prepared in accordance with GAAP.

We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure, and to view our non-GAAP measures in conjunction with GAAP financial measures. For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables for the reconciliation of GAAP to non-GAAP results included at the end of this release.

PAYMENTUS HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(In thousands, except share and per share data)

Three Months Ended Nine Months Ended September 30, September 30,

2021 2020 2021 2020



Revenue $ 101,676 $ 78,018 $ 287,393 $ 219,345

Cost of revenue 70,512 55,365 199,754 152,513

Gross profit 31,164 22,653 87,639 66,832

Operating expenses

Research and 8,818 6,221 24,469 17,970 development

Sales and 11,314 8,002 29,041 23,246 marketing

General and 9,904 4,959 24,067 12,116 administrative

Total operating 30,036 19,182 77,577 53,332 expenses

Income from 1,128 3,471 10,062 13,500 operations

Other income (loss)

Interest income, 11 3 4 48 net

Foreign exchange (16 ) (19 ) (8 ) (109 )loss

Income before 1,123 3,455 10,058 13,439 income taxes

Provision for (701 ) (841 ) (5,423 ) (3,361 )income taxes

Net income $ 422 $ 2,614 $ 4,635 $ 10,078

Undeclareddividends on - (1,319 ) (2,258 ) (3,834 )Series Apreferred stock

Net incomeattributable to $ 422 $ 1,295 $ 2,377 $ 6,244 common stock

Net income pershare attributable tocommon stock

Basic $ - $ 0.01 $ 0.02 $ 0.06

Diluted $ - $ 0.01 $ 0.02 $ 0.06

Weighted-averagenumber of sharesused to computenet income per shareattributable tocommon stock

Basic 118,206,073 103,479,239 110,272,583 103,479,239

Diluted 124,427,777 106,088,898 116,419,674 106,109,507

PAYMENTUS HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In thousands, except share and per share data)

September 30,

December 31,

2021

2020

Assets

Current assets

Cash and cash equivalents

$

177,506

$

46,666

Restricted funds held for financial institutions

38,071

-

Accounts and other receivables, net of allowance of $96 and $100

37,130

28,034

Income tax receivable

1,185

2,011

Prepaid expenses and other current assets

9,737

3,117

Total current assets

263,629

79,828

Property and equipment, net of accumulated depreciation and amortization of $5,479 and $3,760

2,295

1,772

Capitalized internal-use software development costs, net

27,687

20,963

Intangible assets, net

52,026

296

Goodwill

120,934

13,205

Operating lease right-of-use assets

8,261

8,322

Deferred tax asset

10

270

Other long-term assets

3,931

218

Total assets

$

478,773

$

124,874

Liabilities and Stockholders' Equity

Current liabilities

Accounts payable

$

25,091

$

16,825

Accrued liabilities

17,381

10,201

Financial institution funds in-transit

38,071

-

Operating lease liabilities

1,687

3,010

Contract liabilities

1,912

612

Income tax payable

-

463

Total current liabilities

84,142

31,111

Deferred tax liability

6,455

3,499

Operating leases, net of current portion

6,798

5,476

Contract liabilities, net of current portion

1,888

-

Finance leases and other finance obligations, net of current portion

955

412

Total liabilities

100,238

40,498

Commitments and contingencies (Note 9)

Stockholders' equity

Preferred stock, $0.0001 par value per share, 5,000,000 and zero shares authorized at September 30, 2021 and December 31, 2020, respectively, none issued and outstanding at September 30, 2021 and December 31, 2020, respectively

-

-

Class A common stock, $0.0001 par value per share, 883,950,000 and zero shares authorized as of September 30, 2021 and December 31, 2020, respectively; 16,482,529 and zero shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively

1

-

Class B common stock, $0.0001 par value per share, 111,050,000 and zero shares authorized as of September 30, 2021 and December 31, 2020, respectively; 103,486,739 and zero shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively

11

-

Series A preferred stock, par value $0.01 per share; zero and 50,000 shares authorized as of September 30, 2021 and December 31,2020, respectively; zero and 23,333 shares issued as of September 30, 2021 and December 31, 2020, respectively; zero and 23,013 shares outstanding as of September 30, 2021 and December 31, 2020, respectively

-

-

Common stock, $0.005 par value per share; zero and 150,000,000 shares authorized as of September 30, 2021 and December 31, 2020, respectively; zero and 104,785,651 shares issued as of September 30, 2021 and December 31, 2020, respectively; and zero and 103,479,239 shares outstanding as of September 30, 2021 and December 31, 2020, respectively

-

517

Treasury stock at cost, zero and 320 Series A preferred shares; and zero and 1,306,412 common shares as of September 30, 2021 and December 31, 2020, respectively

-

(579

)

Additional paid-in capital

353,079

29,175

Accumulated other comprehensive income

174

216

Retained earnings

25,270

55,047

Total stockholders' equity

378,535

84,376

Total liabilities and stockholders' equity

$

478,773

$

124,874

PAYMENTUS HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In thousands, except share and per share data)

September December 30, 31,

2021 2020

Assets

Current assets

Cash and cash equivalents $ 177,506 $ 46,666

Restricted funds held for financial institutions 38,071 -

Accounts and other receivables, net of allowance of 37,130 28,034 $96 and $100

Income tax receivable 1,185 2,011

Prepaid expenses and other current assets 9,737 3,117

Total current assets 263,629 79,828

Property and equipment, net of accumulateddepreciation and 2,295 1,772 amortization of $5,479 and $3,760

Capitalized internal-use software development 27,687 20,963 costs, net

Intangible assets, net 52,026 296

Goodwill 120,934 13,205

Operating lease right-of-use assets 8,261 8,322

Deferred tax asset 10 270

Other long-term assets 3,931 218

Total assets $ 478,773 $ 124,874

Liabilities and Stockholders' Equity

Current liabilities

Accounts payable $ 25,091 $ 16,825

Accrued liabilities 17,381 10,201

Financial institution funds in-transit 38,071 -

Operating lease liabilities 1,687 3,010

Contract liabilities 1,912 612

Income tax payable - 463

Total current liabilities 84,142 31,111

Deferred tax liability 6,455 3,499

Operating leases, net of current portion 6,798 5,476

Contract liabilities, net of current portion 1,888 -

Finance leases and other finance obligations, net 955 412 of current portion

Total liabilities 100,238 40,498

Commitments and contingencies (Note 9)

Stockholders' equity

Preferred stock, $0.0001 par value per share,5,000,000 and zero shares authorized at September30, 2021 and December 31, 2020, respectively, none - - issued and outstanding at September 30, 2021 andDecember 31, 2020, respectively

Class A common stock, $0.0001 par value per share,883,950,000 and zero shares authorized as ofSeptember 30, 2021 and December 31, 2020, 1 - respectively; 16,482,529 and zero shares issued andoutstanding as of September 30, 2021 and December31, 2020, respectively

Class B common stock, $0.0001 par value per share,111,050,000 and zero shares authorized as ofSeptember 30, 2021 and December 31, 2020, 11 - respectively; 103,486,739 and zero shares issuedand outstanding as of September 30, 2021 andDecember 31, 2020, respectively

Series A preferred stock, par value $0.01 pershare; zero and 50,000 shares authorized as ofSeptember 30, 2021 and December 31,2020,respectively; zero and 23,333 shares issued as of - - September 30, 2021 and December 31, 2020,respectively; zero and 23,013 shares outstanding asof September 30, 2021 and December 31, 2020,respectively

Common stock, $0.005 par value per share; zero and150,000,000 shares authorized as of September 30,2021 and December 31, 2020, respectively; zero and104,785,651 shares issued as of September 30, 2021 - 517 and December 31, 2020, respectively; and zero and103,479,239 shares outstanding as of September 30,2021 and December 31, 2020, respectively

Treasury stock at cost, zero and 320 Series Apreferred shares; and zero and - (579 )1,306,412 common shares as of September 30, 2021and December 31, 2020, respectively

Additional paid-in capital 353,079 29,175

Accumulated other comprehensive income 174 216

Retained earnings 25,270 55,047

Total stockholders' equity 378,535 84,376

Total liabilities and stockholders' equity $ 478,773 $ 124,874

PAYMENTUS HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In thousands)

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

Cash flows from operating activities

Net income

$

422

$

2,614

$

4,635

$

10,078

Adjustments to reconcile net income to net cash provided by operating activities

Depreciation and amortization

3,647

1,997

8,587

6,012

Deferred income taxes

278

429

2,691

1,318

Stock-based compensation

754

511

1,885

1,448

Non-cash lease expense

483

723

2,131

2,008

Amortization of contract asset

246

-

423

-

Change in operating assets and liabilities, net of impact of business combination

Accounts and other receivables

(2,870

)

(3,394

)

(7,814

)

(7,663

)

Prepaid expenses and other current and long-term assets

1,072

9

167

16

Accounts payable

4,301

8,516

7,842

13,667

Accrued liabilities

(394

)

1,521

149

2,127

Operating lease liabilities

(498

)

(767

)

(2,071

)

(1,976

)

Contract liabilities

82

155

383

511

Income taxes receivable, net of payable

(923

)

(101

)

349

583

Net cash provided by operating activities

6,600

12,213

19,357

28,129

Cash flows from investing activities

Business combinations, net of cash and restricted cash acquired

(57,120

)

(290

)

(57,120

)

(290

)

Purchases of property and equipment

(261

)

(73

)

(825

)

(382

)

Capitalized internal-use software development costs

(4,737

)

(3,681

)

(13,473

)

(10,866

)

Net cash used in investing activities

(62,118

)

(4,044

)

(71,418

)

(11,538

)

Cash flows from financing activities

Proceeds from initial public offering, net of underwriter's discounts and commissions

-

-

224,595

-

Proceeds from private placement

-

-

50,000

-

Redemption of Series A preferred stock

-

-

(23,013

)

-

Payment of dividends on Series A preferred stock

-

-

(34,412

)

-

Proceeds from repayment of related party loan

-

-

813

-

Financial institution funds in-transit

6,612

-

6,612

-

Payments of deferred offering costs

(1,105

)

-

(1,961

)

-

Payments on other financing obligations

(715

)

(131

)

(1,482

)

(652

)

Payments on finance leases

(68

)

(88

)

(204

)

(257

)

Net cash provided by (used in) financing activities

4,724

(219

)

220,948

(909

)

Foreign currency effect on cash, cash equivalents and restricted cash

(19

)

46

24

23

Net (decrease) increase in cash, cash equivalents and restricted cash

(50,813

)

7,996

168,911

15,705

Cash, cash equivalents and restricted cash

Beginning of period

266,390

35,136

46,666

27,427

End of period

$

215,577

$

43,132

$

215,577

$

43,132

The below table reconciles cash, cash equivalents and restricted cash in the condensed consolidated balance sheets to the total of the same amounts shown in the consolidated statements of cash flows:

Cash and cash equivalents

$

177,506

$

43,132

$

177,506

$

43,132

Restricted funds held for financial institutions

38,071

-

38,071

-

Total cash, cash equivalents and restricted cash as shown in the consolidated statements of cash flows

$

215,577

$

43,132

$

215,577

$

43,132

The following tables set forth our non-GAAP financial measures with reconciliations to the most directly comparable GAAP financial measures (in thousands):

Contribution Profit

PAYMENTUS HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In thousands)

Three Months Ended Nine Months Ended September 30, September 30,

2021 2020 2021 2020

Cash flows from operating activities

Net income $ 422 $ 2,614 $ 4,635 $ 10,078

Adjustments to reconcilenet income to net cash provided by operatingactivities

Depreciation and 3,647 1,997 8,587 6,012 amortization

Deferred income taxes 278 429 2,691 1,318

Stock-based compensation 754 511 1,885 1,448

Non-cash lease expense 483 723 2,131 2,008

Amortization of contract 246 - 423 - asset

Change in operatingassets and liabilities, net of impact ofbusiness combination

Accounts and other (2,870 ) (3,394 ) (7,814 ) (7,663 )receivables

Prepaid expenses andother current and 1,072 9 167 16 long-term assets

Accounts payable 4,301 8,516 7,842 13,667

Accrued liabilities (394 ) 1,521 149 2,127

Operating lease (498 ) (767 ) (2,071 ) (1,976 )liabilities

Contract liabilities 82 155 383 511

Income taxes receivable, (923 ) (101 ) 349 583 net of payable

Net cash provided by 6,600 12,213 19,357 28,129 operating activities

Cash flows from investing activities

Business combinations,net of cash and (57,120 ) (290 ) (57,120 ) (290 )restricted cash acquired

Purchases of property (261 ) (73 ) (825 ) (382 )and equipment

Capitalized internal-usesoftware development (4,737 ) (3,681 ) (13,473 ) (10,866 )costs

Net cash used in (62,118 ) (4,044 ) (71,418 ) (11,538 )investing activities

Cash flows from financing activities

Proceeds from initialpublic offering, net of - - 224,595 - underwriter's discountsand commissions

Proceeds from private - - 50,000 - placement

Redemption of Series A - - (23,013 ) - preferred stock

Payment of dividends on - - (34,412 ) - Series A preferred stock

Proceeds from repayment - - 813 - of related party loan

Financial institution 6,612 - 6,612 - funds in-transit

Payments of deferred (1,105 ) - (1,961 ) - offering costs

Payments on other (715 ) (131 ) (1,482 ) (652 )financing obligations

Payments on finance (68 ) (88 ) (204 ) (257 )leases

Net cash provided by(used in) financing 4,724 (219 ) 220,948 (909 )activities

Foreign currency effecton cash, cash (19 ) 46 24 23 equivalents andrestricted cash

Net (decrease) increasein cash, cash (50,813 ) 7,996 168,911 15,705 equivalents andrestricted cash

Cash, cash equivalents and restricted cash

Beginning of period 266,390 35,136 46,666 27,427

End of period $ 215,577 $ 43,132 $ 215,577 $ 43,132

The below tablereconciles cash, cashequivalents andrestricted cash in thecondensed consolidated balance sheets to thetotal of the sameamounts shown in theconsolidated statementsof cash flows:

Cash and cash $ 177,506 $ 43,132 $ 177,506 $ 43,132 equivalents

Restricted funds heldfor financial 38,071 - 38,071 - institutions

Total cash, cashequivalents andrestricted cash as shown $ 215,577 $ 43,132 $ 215,577 $ 43,132 in the consolidatedstatements of cash flows

The following tables set forth our non-GAAP financial measures with reconciliations to the most directly comparable GAAP financial measures (in thousands):

Contribution Profit

Three Months Ended Nine Months Ended September 30, September 30,

2021 2020 2021 2020

(in thousands)

Gross profit $ 31,164 $ 22,653 $ 87,639 $ 66,832

Plus: other cost of revenue 9,488 7,003 25,563 20,442

Contribution profit $ 40,652 $ 29,656 $ 113,202 $ 87,274

Adjusted Gross Profit

Three Months Ended Nine Months Ended September 30, September 30,

2021 2020 2021 2020

(in thousands)

Gross profit $ 31,164 $ 22,653 $ 87,639 $ 66,832

Stock-based compensation - - - -

Amortization 1,398 893 3,610 2,553

Adjusted gross profit $ 32,562 $ 23,546 $ 91,249 $ 69,385

Adjusted EBITDA and Adjusted EBITDA Margin

Three Months Ended Nine Months Ended September 30, September 30,

2021 2020 2021 2020

(in thousands)

Net income $ 422 $ 2,614 $ 4,635 $ 10,078

Excluding

Interest income, net (11 ) (3 ) (4 ) (48 )

Provision for income taxes 701 841 5,423 3,361

Depreciation and amortization 3,647 1,997 8,587 6,012

Foreign exchange loss 16 19 8 109

Stock-based compensation 754 511 1,885 1,448

Other nonrecurring expenses - - 2,711 -

Adjusted EBITDA $ 5,529 $ 5,979 $ 23,245 $ 20,960

Adjusted EBITDA margin 13.6 % 20.2 % 20.5 % 24.0 %

Free Cash Flow

Three Months Ended Nine Months Ended September 30, September 30,

2021 2020 2021 2020

(in thousands)

Net cash provided by operating $ 6,600 $ 12,213 $ 19,357 $ 28,129 activities

Purchases of property and (261 ) (73 ) (825 ) (382 )equipment

Capitalized internal-use (4,737 ) (3,681 ) (13,473 ) (10,866 )software development costs

Free cash flow $ 1,602 $ 8,459 $ 5,059 $ 16,881

Net cash used in investing $ (62,118 ) $ (4,044 ) $ (71,418 ) $ (11,538 )activities

Net cash provided by (used in) $ 4,724 $ (219 ) $ 220,948 $ (909 )financing activities

Non-GAAP Net Income

Three Months Ended Nine Months Ended September 30, September 30,

2021 2020 2021 2020

(in thousands)

Net income $ 422 $ 2,614 $ 4,635 $ 10,078

Excluding amortization of 933 - 933 - acquisition-related intangibles

Excluding discrete one-time tax - - 2,062 - items

Non-GAAP net income $ 1,355 $ 2,614 $ 7,630 $ 10,078

Non-GAAP EPS

Three Months Ended Nine Months Ended September 30, September 30,

2021 2020 2021 2020

(in thousands)

Net incomeattributable to $ 422 $ 1,295 $ 2,377 $ 6,244 common shareholders

Excludingamortization of 933 - 933 - acquisition-relatedintangibles

Excludingundeclared - 1,319 2,258 3,834 dividends on SeriesA preferred stock

Excluding discrete - - 2,062 - one-time tax items

Numerator forNon-GAAP EPS - $ 1,355 $ 2,614 $ 7,630 $ 10,078 basic



Weighted-averageshares of common 118,206,073 103,479,239 110,272,583 103,479,239 stock - basic



Non-GAAP EPS - $ 0.01 $ 0.03 $ 0.07 $ 0.10 basic

View source version on businesswire.com: https://www.businesswire.com/news/home/20211109006476/en/

CONTACT: Investor Relations Paul Seamon pseamon@paymentus.com

CONTACT: Media Relations Tony Labriola tony@thinkinsideout.com