Paymentus Holdings, Inc. (NYSE: PAY) is a provider of cloud-based bill payment technology, serving over 2,500 billers and institutions in North America. For the fourth quarter of 2024, Paymentus reported record revenue of $257.9 million, representing a 56.5% increase year-over-year. The contribution profit also rose to $86.2 million, up 30% year-over-year, while adjusted EBITDA grew by 36.9% to $27.3 million, achieving a margin of 31.6% for the quarter.

For the full year 2024, the company generated total revenue of $871.7 million, up 41.9% compared to the previous year, significantly exceeding its long-term growth target of 20%. Additionally, adjusted EBITDA for the year was $94.2 million, a 62.2% increase from 2023. Full-year contribution profit increased to $312.1 million, which is a 29.5% rise year-over-year. The total number of processed transactions reached 597.0 million for the year, a 30.3% increase.

The company’s fourth-quarter non-GAAP net income was reported at $16.3 million, or $0.13 per share, up from $11.8 million or $0.09 per share in the same quarter of the previous year. Non-GAAP operating expenses for the fourth quarter climbed 28.8% year-over-year to $47.3 million, largely due to increases in sales, marketing, and research and development expenses. Higher sales and marketing costs reflected ongoing investments in growth strategies.

In terms of future guidance, Paymentus anticipates first-quarter 2025 revenues in the range of $241 million to $249 million, representing year-over-year growth of approximately 32.5% at the midpoint. Contribution profit is expected to range from $84 million to $86 million, indicating a growth of 22.5% at the midpoint. For the full year of 2025, the revenue guidance is set at $1.04 billion to $1.06 billion, which translates to a growth rate of 20.4% at the midpoint. Adjusted EBITDA for 2025 is projected to be between $112 million and $116 million.

The company ended the fourth quarter of 2024 with a strong cash position of $209.4 million, up from $190.8 million at the end of the previous quarter. Paymentus does not have any debt and reported free cash flow of $19 million for the quarter. The increase in cash was driven primarily by $27.9 million generated from operations, offset by $9.1 million used in investing activities.

Overall, the financial results for both the fourth quarter and full year reflect Paymentus’s significant growth and operational efficiency, demonstrating the strength of its business model in the electronic bill payment sector.