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The likelihood that shares will continue to rise is high, as the company fits the financial technology market’s goal to grow very fast. Thus, I am bullish on this stock.
Based in Boston, Massachusetts, Flywire is a provider of digital payment services that enable businesses and consumers around the world to connect with each other. (See FLYW stock charts on TipRanks)
In the second quarter of 2021, total revenue was $37 million, up 56% year-over-year, thanks to a strong increase in total payment volume, topping analysts’ projections by nearly $10 million.
Higher turnover was not enough, however, to offset specific non-cash charges associated with the initial public offering in May 2021, so the three-month period closed with a net loss of $18.1 million, compared to the year-ago net loss of $16 million.
Market Perspectives
During the quarter, the company observed important growth trends regarding the acquisition of new customers, showing the ability of Flywire to facilitate transactions between its clients and their customers.
Efficacious digital payment solutions in a booming market constitute a strong ground for Flywire’s future prospects. A positive net income should be just around the corner, as the second-quarter report also made it clear that the costs for ancillary services tend to remain constant.
Looking ahead to full 2021, Flywire is targeting total revenue between $173 million and $178 million, and an adjusted EBITDA between $4 million and $6 million.
Wall Street’s Take
In the past three months, four Wall Street analysts have issued a 12-month price target for Flywire. The average Flywire price target is $47.50, implying 1.6% upside. The analyst rating consensus is a Strong Buy rating, based on four Buys.
Summary
Flywire offers solutions that facilitate transactions between businesses and customers around the world, and it operates in a market that is going to expand further.
In addition, the company serves sectors and markets that experience high rates of digitization.
Disclosure: At the time of publication, Alberto Abaterusso did not have a position in any of the securities mentioned in this article.
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