Shares of Paymentus (PAY) surged 27% on Tuesday, a day after the cloud-based bill payment technology provider reported better-than-expected Q4 results and issued robust guidance for full-year EBITDA.
The company reported earnings per share (EPS) of $0.11, surpassing analysts' predictions of $0.06. Revenue came in at $164.8 million, beating the consensus estimate of $157.38 million.
The adjusted EBITDA for the quarter stood at $19.9 million, significantly higher than the anticipated $13.4 million.
Looking ahead, Paymentus forecasts an adjusted EBITDA in the range of $65 million to $75 million for FY2024, compared to the $65.3 million expected by analysts.
Furthermore, revenue is estimated to be between $720 million and $744 million, while analysts were looking for $732 million.
In the wake of the report, Goldman Sachs analysts raised their 2023, 2024, and 2025 adjusted EBITDA estimates and hiked the target price from $18 to $20.
“While we remain positive on the business, we believe the current multiple of ~21x our updated 2025 EBITDA estimates broadly reflects this, particularly given the lower levels of FCF conversion at the company,” said analysts.
“However, we believe that PAY should continue to deliver strong, consistent performance, enhanced by the continued digitization of the bill pay market and the structural shift in the market towards biller direct models,” they added.