Paymentus (PAY) IPO Opens 37% Higher

Today's IPO for Paymentus Holdings Inc. (NYSE: PAY) opened for trading at $28.76 after pricing 10,000,000 shares of its Class A common stock at a price to the public of $21.00 per share, the high end of the expected $19-$21 range.

Goldman Sachs & Co. LLC, J.P. Morgan, BofA Securities and Citigroup are acting as lead bookrunning managers for the offering. Baird, Nomura, Raymond James and Wells Fargo Securities are acting as bookrunning managers for the offering and Fifth Third Securities, PNC Capital Markets LLC, AmeriVet Securities and C.L. King & Associates are acting as co-managers for the offering.

Paymentus Holdings is a leading provider of cloud-based bill payment technology solutions.

The company generated revenue of $235.8 million in 2019 and $301.8 million in 2020, representing a year-over-year increase of 28.0%. Gross profit was $74.4 million in 2019 and $92.6 million in 2020, contribution profit was $96.7 million in 2019 and $120.5 million in 2020 and adjusted gross profit was $77.1 million in 2019 and $96.1 million in 2020. The company had net income of $13.7 million in both 2019 and 2020, and adjusted EBITDA was $26.0 million in 2019 and $28.5 million in 2020. Net cash provided by operating activities was $17.5 million in 2019 and $35.6 million in 2020, and they generated free cash flow of $6.3 million in 2019 and $20.8 million in 2020.

For the three months ended March 31, 2020 and 2021, the company generated revenue of $69.6 million and $92.2 million, respectively, representing a quarter-over-quarter increase of 32.5%. Gross profit was $20.8 million and $27.5 million, contribution profit was $27.6 million and $35.1 million and adjusted gross profit was $21.6 million and $28.6 million for the three months ended March 31, 2020 and 2021, respectively. They had net income of $2.8 million and $3.6 million and adjusted EBITDA of $6.2 million and $9.4 million for the three months ended March 31, 2020 and 2021, respectively. Net cash provided by operating activities was $4.9 million and $7.2 million and they generated free cash flow of $1.3 million and $2.8 million for the three months ended March 31, 2020 and 2021, respectively.

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