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Tuesday, April 23, 2024

Paymentus shares jump 20% after earnings report

Charlotte-based Paymentus Holdings, a payment company controlled by the Accel-KKR private equity group, saw its stock rise 20% today after it reported fourth-quarter results last night that topped Wall Street estimates for earnings and revenue.

Revenue for the quarter was $164.8 million, which beat the consensus analyst estimate of $157.4 million. The electronic bill payment services company reported earnings per share of 11 cents, versus an analyst estimate of 7 cents.

For 2023, Paymentus had a profit of $22 million, compared with a loss of $513,000 in 2022 and a profit of $9.3 million in 2021. Revenue grew from $395 million in 2021 to $614 million last year.

The company processed 124.8 million transactions in the fourth quarter of 2023, an increase of 28.4% from a year earlier.

Paymentus also provided 2024 revenue guidance between $720 million to $744 million.

The company’s stock traded for about $20 early Tuesday after closing Monday at $16.35. The market cap is about $2.5 billion, ranking about the 35 largest N.C.-based public companies.

The company was founded by CEO Dushyant Sharma in 2004 and later acquired by the Accel-KKR private equity firm. It went public for $21 in 2021. Since then, it has traded between $7 and $34.

Accel-KKR controls 79% of the company’s voting power, while Sharma has 20.5% because they hold Class B shares, according to the company’s 2023 proxy. Institutional investors Franklin Resources, Capital International Investors, Vanguard Group and Frontier Capital Management have a combined 47% of the Class A common shares.

Chris Roush
Chris Roush
Chris Roush is executive editor of Business North Carolina. He can be reached at croush@businessnc.com.

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