Flywire, which provides payments and accounts receivable services, won 140 new clients in the most recent quarter, a sign that the company’s acquisition strategy is starting to pay off, according to Wall Street analysts.
The client wins were “considerably higher” than the average 100 customers wins per quarter Flywire usually signs, according to an Aug. 10 client note from Darrin Peller, an analyst with Wolfe Research, who recommends the company’s stock.
Even as revenue rose, the company posted a loss for the most recent quarter. On Tuesday, the company reported a second-quarter net loss of $23.8 million. Revenue for the period jumped 53% over the year-ago quarter to $56.5 million, the company said on Aug. 9.
Boston-based Flywire launched its software services about a decade ago with a focus on the education market. Last month, the company announced the acquisition of the Australian company Cohort Go to expand its international education offering. Terms of the deal were not disclosed.
Earlier, in December of last year, Flywire bought U.K. company WPM to expand its customer base and presence abroad in the education realm.
The company is “well-positioned for continued growth across our verticals” also including health care, travel and business-to-business (B2B), according to Chief Executive Mike Massaro.
“Education and healthcare have historically been resilient during recessions and economic downturns,” he said during the company’s earning conference call on Tuesday. “Travel, particularly luxury travel, continues to be strong, supported by pent-up demand from the pandemic. And with more businesses focused on digitizing and streamlining global accounts receivable, we expect to see increased demand for solutions like ours in the B2B sector.”
Some analysts see better times ahead for Flywire. “Flywire is a high-quality, high-growth play on the modernization of account receivable processes in the education, healthcare, travel, and B2B verticals, which we view as underserved and ripe for disruption” William Blair analysts wrote in an August 9 client note. “Flywire's solutions are differentiated by its modern, cloud-based technology platform; its proprietary global payments network; and its vertical-specific software expertise.”