Paymentus Holdings Inc (NYSE:PAY), a leading provider of cloud-based bill payment technology and solutions, stock rallies 24.88% (As on March 11, 11:21:51 AM UTC-4, Source: Google Finance) after the company reported fourth-quarter results that beat expectations and issued an optimistic outlook for 2025. Paymentus’ strong performance was driven by increased billers and transactions. The company processed 166.0 million transactions during the quarter, up 33.0% from the same period last year. Non-GAAP net income was $16.3 million compared to $11.8 million the prior period. Record adjusted EBITDA was $27.3 million, representing a 31.6% adjusted EBITDA margin, a 36.9% increase in adjusted EBITDA year-over-year. Free cash flow for the quarter was $19 million, and the company ended the year with $209.4 million in cash, reflecting strong operating performance. The quarter’s performance has exceeded all key guidance metrics, driven by strong onboarding of large enterprise clients and increased same-store sales. The company’s focus is on leveraging operating efficiencies and highlighted a strong cash position of $209.4 million with no debt. During the quarter, Paymentus signed clients across diverse verticals, including insurance, government agencies, utilities, and healthcare, and expanded its partner ecosystem in strategic areas such as government services, Utilities, Insurance, and Healthcare verticals. There is continued improvement in onboarding times and there is increased average client size due to improved demand in the large enterprise client segment of the market

PAY in the fourth quarter of FY24 has reported the adjusted earnings per share of 13 cents, beating the analysts’ estimates for the adjusted earnings per share of 10 cents. The company had reported the adjusted revenue growth of 56.5 percent to $257.9 million in the fourth quarter of FY24, beating the analysts’ estimates for revenue of $223.66 million. This is driven largely by increased billers and transactions. Adjusted gross profit was $71.8 million, up 32.4% year-over-year. Contribution profit was $86.2 million, a year-over-year increase of 30.0%.

Looking ahead, the company forecast first-quarter 2025 revenue between $241 million and $249 million, in line with analyst expectations of $242.5 million, with contribution profit expected to be $84 million – $86 million and adjusted EBITDA of $24 million – $26 million.

For the full year 2025, Paymentus projects revenue of $1.04 billion to $1.06 billion, above the consensus estimate of $1.029 billion, with contribution profit of $358 million – $366 million and adjusted EBITDA of $112 million – $116 million.