Flywire Corp
For the period ended Jun 30, 2024. Filed Aug 6, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 6, 2024
FLYW$21.57+1.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-07.
0000950170-24-054762
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-06.
0000950170-24-091985
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 143 previous paragraphs and 148 current paragraphs.
94 unchanged; 36 reworded; 10 added; 13 removed; 0 previous and 8 current paragraphs rearranged.
Tables are not compared: 10 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
Technology and development expenses were $15.8 million for the three months ended June 30, 2024, compared to $16.0 million for the three months ended June 30, 2023, a decrease of $0.2 million or 1.3%. The decrease in technology and development cost was primarily driven by a decrease in amortization expense and personnel costs, partially offset by an increase in stock-based compensation expense. Amortization of intangible assets was $1.5 million for the three months ended June 30, 2024, compared to $2.1 million for the three months ended June 30, 2023, a decrease of $0.6 million or 28.6%. The decrease in amortization expense was primarily due to a decrease in acquired technology.
Current report
Personnel costs were $9.7 million for the three months ended June 30, 2024 compared to $9.9 million for the three months ended June 30, 2023, a decrease of $0.2 million or 2.0%. The decrease in personnel costs was primarily driven by a decrease in retention bonus expense within our technology and development teams. Stock-based compensation expense was $2.8 million for the three months ended June 30, 2024, compared to $2.4 million for the three months ended June 30, 2023, an increase of $0.4 million or 16.7%. The increase in stock-based compensation is attributable to equity grants awarded to existing and new FlyMates.
Current report
General and administrative expenses were $32.0 million for the three months ended June 30, 2024, compared to $24.6 million for the three months ended June 30, 2023, an increase of 7.4 million or 30.1%. The increase in general and administrative expenses was primarily driven by an increase in stock-based compensation expense, personnel costs and professional fees. Stock-based compensation expense was $9.6 million for the three months ended June 30, 2024, compared to $5.7 million for the three months ended June 30, 2023, an increase of $3.9 million or 68.4%. The increase in stock-based compensation is attributable to equity grants awarded to existing and new FlyMates. Personnel costs were $12.0 million for the three months ended June 30, 2024, compared to $10.1 million for the three months ended June 30, 2023, an increase of $1.9 million or 18.8%. The increase in personnel costs was primarily driven by an increase in headcount. Professional fees were $4.0 million for the three months ended June 30, 2024, compared to $2.6 million for the three months ended June 30, 2023, an increase of $1.4 million or 53.8%. The increase in professional fees was primarily due to an increase in legal, consulting and audit fees during the three months ended June 30, 20244 compared to the three months ended June 30, 2023.
Current report
Revenue
Current report
Revenue was $217.8 million for the six months ended June 30, 2024, compared to $179.2 million for the six months ended June 30, 2023, an increase of $38.6 million or 21.5%. Revenue is comprised of transaction revenue and platform and other revenues as follows:
Current report
Payment processing services costs were $81.5 million for the six months ended June 30, 2024, compared to $67.7 million for the six months ended June 30, 2023, an increase of $13.8 million or 20.4%. The increase in payment processing services costs is correlated with the increase in total payment volume of 21% over the same period.
Current report
Selling and marketing expenses were $61.9 million for the six months ended June 30, 2024, compared to $51.7 million for the six months ended June 30, 2023, an increase of $10.2 million or 19.7%. The increase in selling and marketing expenses was primarily driven by an increase in personnel costs, stock-based compensation expense and amortization expense. Personnel costs were $32.8 million for the six months ended June 30, 2024, compared to $27.7 million for the six months ended June 30, 2023, an increase of $5.1 million or 18.4%. The increase in personnel costs was primarily driven by an increase in headcount within our selling and marketing teams and commissions earned on sales during the period. Stock-based compensation expense was $8.6 million for the six months ended June 30, 2024, compared to $5.7 million for the six months ended June 30, 2023, an increase of $2.9 million or 50.9%. The increase in stock-based compensation is attributable to equity grants awarded to existing and new FlyMates. Amortization of intangibles was $3.8 million for the six months ended June 30, 2024, compared to $2.5 million for the six months ended June 30, 2023, an increase of $1.3 million or 52.0%. The increase in amortization expense was due to acquired customer relationships related to the StudyLink acquisition.
Current report
Interest expense was $0.3 million for the six months ended June 30, 2024, compared to $0.2 million for the six months ended June 30, 2023, an increase of $0.1 million or 50.0%. As of June 30, 2024 and 2023, there was no outstanding indebtedness under the 2024 Revolving Credit Facility or 2021 Revolving Credit Facility. Interest expense consists primarily of amortization of debt issuance costs and unused commitment fees related to our 2024 Revolving Credit Facility and 2021 Revolving Credit Facility.
Current report
Interest income was $11.6 million for the six months ended June 30, 2024, compared to $3.9 million for the six months ended June 30, 2023, an increase of $7.7 million or 197.4%. The increase in interest income was primarily due to an increase in yield from higher market interest rates and an increase in our cash balance attributed to our follow-on public offering during the third quarter of 2023.
Current report
Provision for Income Taxes
Removed paragraphs (13)
Previous report
Payment Processing Services Costs
Previous report
Technology and Development
Previous report
Selling and Marketing
Previous report
General and Administrative
Previous report
Interest Expense
Previous report
Interest Income
Previous report
Payment Processing Services Costs
Previous report
Technology and Development
Previous report
Selling and Marketing
Previous report
General and Administrative
Previous report
Interest Expense
Previous report
Interest Income
Previous report
Since inception, we have financed operations primarily through proceeds received from sales of equity securities, credit facilities and payments received from our clients as further detailed below.
Reworded paragraphs (36)
Previous wording
Rapid domestic and international payments volume growth. We have grown our total payment volume by approximately 23% period-over-period from $5.7 billion during the three months ended March 31, 2023 to $7.0 billion during the three months ended March 31, 2024.
Current wording
Rapid domestic and international payments volume growth. We have grown our total payment volume by approximately 19% period-over-period from $4.1 billion during the three months ended June 30, 2023 to $4.9 billion during the three months ended June 30, 2024. We have grown our total payment volume by approximately 21% period-over-period from $9.8 billion during the six months ended June 30, 2023 to $11.8 billion during the six months ended June 30, 2024.
Previous wording
As of March 31, 2024, we serve over 4,000 clients around the world. In education, we serve more than 2,850 institutions. In healthcare, we power more than 90 healthcare systems, including four of the top 10 healthcare systems in the United States ranked by hospital size as of December 31, 2023. In our newer payment verticals of travel and B2B payments, we have a growing portfolio of more than 1,000 clients as of March 31, 2024.
Current wording
As of June 30, 2024, we serve over 4,000 clients around the world. In education, we serve more than 2,950 institutions. In healthcare, we power more than 90 healthcare systems, including four of the top 10 healthcare systems in the United States ranked by hospital size as of December 31, 2023. In our newer payment verticals of travel and B2B payments, we have a growing portfolio of more than 1,100 clients as of June 30, 2024.
Previous wording
Our success in building our client base around the world and expanding utilization by our clients’ customers has allowed us to achieve significant scale. We enabled over $24.0 billion and approximately $7.0 billion in total payment volume during the year ended December 31, 2023 and three months ended March 31, 2024, respectively. We generated revenue of $403.1 million and $289.4 million for the years ended December 31, 2023 and 2022, respectively, and incurred net losses of $8.6 million and $39.3 million, respectively, for the same years. We generated revenue of $114.1 million and $94.4 million for the three months ended March 31, 2024 and 2023, respectively, and incurred net loss of $6.2 million and $3.7 million, respectively, for the same periods.
Current wording
Our success in building our client base around the world and expanding utilization by our clients’ customers has allowed us to achieve significant scale. We enabled over $24.0 billion and approximately $11.8 billion in total payment volume during the year ended December 31, 2023 and six months ended June 30, 2024, respectively. We generated revenue of $403.1 million and $289.4 million for the years ended December 31, 2023 and 2022, respectively, and incurred net losses of $8.6 million and $39.3 million, respectively, for the same years. We generated revenue of $217.8 million and $179.2 million for the six months ended June 30, 2024 and 2023, respectively, and incurred net loss of $20.1 million and $20.5 million, respectively, for the same periods.
Previous wording
We had approximately 1,235 full-time FlyMates as of March 31, 2024, compared to approximately 1,045 full-time FlyMates as of March 31, 2023, an increase of 18.2%.
Current wording
We had 1,281 full-time FlyMates as of June 30, 2024, compared to 1,073 full-time FlyMates as of June 30, 2023, an increase of 19.4%.
Previous wording
In November 2023, we acquired all of the issued and outstanding shares of StudyLink for an estimated total aggregate purchase price of approximately $35.5 million, consisting of approximately $32.8 million in cash consideration, net of cash acquired and up to approximately $2.7 million in contingent consideration. The contingent consideration represents additional payments that we may be required to make in the future dependent on the successful achievement of revenue, volume, cross-selling and engineering implementation milestones, a portion of which can be paid in the form of cash or shares of common stock, at our option, and is subject to exchange rate fluctuation adjustment between the U.S. Dollar and Australian Dollar. Additional payments in the form of shares of common stock will be made based on the continuing employment of a key employee; accordingly, the fair value of $2.4 million, approximately 84,000 shares of common stock, have been excluded from the purchase consideration. During the three months ended March 31, 2024, we expensed $0.3 million in stock based compensation associated with retention of the key employee. StudyLink is an Australian-based SaaS education company that provides platforms to education providers to support their student admissions systems and processes, including features such as eligibility assessment, offer generation, recruitment agent and commission management and acceptance processing. The acquisition of StudyLink was intended to accelerate our growth in the Australian higher education market and enhance our value proposition to payers, universities and agents in the higher education ecosystem. StudyLink contributed $2.1 million in platform revenue during the three months ended March 31, 2024.
Current wording
In November 2023, we acquired all of the issued and outstanding shares of StudyLink for an estimated total aggregate purchase price of approximately $35.5 million, consisting of approximately $32.8 million in cash consideration, net of cash acquired and up to approximately $2.7 million in contingent consideration. The contingent consideration represents additional payments that we may be required to make in the future dependent on the successful achievement of revenue, volume, cross-selling and engineering implementation milestones, a portion of which can be paid in the form of cash or shares of common stock, at our option, and is subject to exchange rate fluctuation adjustment between the U.S. Dollar and Australian Dollar. Additional payments in the form of shares of common stock will be made based on the continuing employment of a key employee; accordingly, the fair value of $2.4 million, approximately 84,000 shares of common stock, have been excluded from the purchase consideration. During the three and six months ended June 30, 2024, we expensed $0.3 million and $0.6 million, respectively, in stock based compensation associated with retention of the key employee. StudyLink is an Australian-based SaaS education company that provides platforms to education providers to support their student admissions systems and processes, including features such as eligibility assessment, offer generation, recruitment agent and commission management and acceptance processing. The acquisition of StudyLink was intended to accelerate our growth in the Australian higher education market and enhance our value proposition to payers, universities and agents in the higher education ecosystem. StudyLink contributed $1.6 million and $3.7 million in platform revenue during the three and six months ended June 30, 2024, respectively.
Previous wording
To supplement our condensed consolidated financial statements, which are prepared in accordance with generally accepted accounting principles in the United States (GAAP), we use certain non-GAAP financial measures. The following table sets forth our key operating metrics and non-GAAP measures for the periods presented. All dollar amounts are rounded to the nearest million. As a result, certain amounts may not recalculate using the rounded amounts provided.
Current wording
To supplement our condensed consolidated financial statements, which are prepared in accordance with generally accepted accounting principles in the United States (GAAP), we use certain non-GAAP financial measures. The following table sets forth our key operating metrics and non-GAAP measures for the periods presented. All dollar amounts are rounded and as a result, certain amounts may not recalculate using the rounded amounts provided.
Previous wording
For the three months ended March 31, 2023, transaction revenue and platform and other revenues represented 80.8% and 19.2% of our revenue, respectively. For the three months ended March 31, 2023, transaction revenue and platform and other revenues represented 85.2% and 14.8% of our total revenue less ancillary services, respectively.
Current wording
For the three months ended June 30, 2024, transaction revenue and platform and other revenues represented 82.3% and 17.7% of our revenue, respectively. For the three months ended June 30, 2024, transaction revenue and platform and other revenues represented 85.2% and 14.8% of our total revenue less ancillary services, respectively. For the three months ended June 30, 2023, transaction revenue and platform and other revenues represented 78.8% and 21.2% of our revenue, respectively. For the three months ended June 30, 2023, transaction revenue and platform and other revenues represented 84.0% and 16.0% of our total revenue less ancillary services, respectively.
Previous wording
For the three months ended March 31, 2024, transaction revenue and platform and other revenues represented 83.4% and 16.6% of our revenue, respectively. For the three months ended March 31, 2024, transaction revenue and platform and other revenues represented 86.1% and 13.9% of our total revenue less ancillary services, respectively.
Current wording
For the six months ended June 30, 2024, transaction revenue and platform and other revenues represented 82.9% and 17.1% of our revenue, respectively. For the six months ended June 30, 2024, transaction revenue and platform and other revenues represented 85.7% and 14.3% of our total revenue less ancillary services, respectively. For the six months ended June 30, 2023, transaction revenue and platform and other revenues represented 79.9% and 20.1% of our revenue, respectively. For the six months ended June 30, 2023, transaction revenue and platform and other revenues represented 84.6% and 15.4% of our total revenue less ancillary services, respectively.
Previous wording
For the three months ended March 31, 2024, our total payment volume was approximately $7.0 billion, consisting of $5.0 billion of total payment volume from transactions included in transaction revenue, and $2.0 billion of total payment volume from transactions included in platform and other revenues.
Current wording
For the three months ended June 30, 2024, our total payment volume was approximately $4.9 billion, consisting of $3.9 billion of total payment volume from transactions included in transaction revenue, and $1.0 billion of total payment volume from transactions included in platform and other revenues. For the three months ended June 30, 2023, our total payment volume was approximately $4.1 billion, consisting of $3.1 billion of total payment volume from transactions included in transaction revenue, and $1.0 billion of total payment volume from transactions included in platform and other revenues.
Previous wording
For the three months ended March 31, 2023, our total payment volume was approximately $5.7 billion, consisting of $3.8 billion of total payment volume from transactions included in transaction revenue, and $1.9 billion of total payment volume from transactions included in platform and other revenues.
Current wording
For the six months ended June 30, 2024, our total payment volume was approximately $11.8 billion, consisting of $8.9 billion of total payment volume from transactions included in transaction revenue, and $2.9 billion of total payment volume from transactions included in platform and other revenues. For the six months ended June 30, 2023, our total payment volume was approximately $9.8 billion, consisting of $6.9 billion of total payment volume from transactions included in transaction revenue, and $2.9 billion of total payment volume from transactions included in platform and other revenues.
Previous wording
The tables below provide reconciliations of Revenue Less Ancillary Services, Adjusted Gross Profit, Adjusted Gross Margin, Revenue Less Ancillary Services at Constant Currency, EBITDA, Adjusted EBITDA and Non-GAAP Operating Expenses to the most comparable GAAP figure on a consolidated basis for the periods presented. All dollar amounts are rounded to the nearest million. As a result, certain amounts may not recalculate using the rounded amounts provided.
Current wording
The tables below provide reconciliations of Revenue Less Ancillary Services, Adjusted Gross Profit, Adjusted Gross Margin, Revenue Less Ancillary Services at Constant Currency, EBITDA, Adjusted EBITDA and Non-GAAP Operating Expenses to the most comparable GAAP figure on a consolidated basis for the periods presented. All dollar amounts are rounded and as a result, certain amounts may not recalculate using the rounded amounts provided.
Previous wording
Acquisition related employee retention costs consisted of costs incurred to retain and compensate WPM’s employees in connection with integration of the business.
Current wording
Acquisition related employee retention costs consisted of costs incurred to retain and compensate WPM Group Ltd. (WPM) employees in connection with integration of the business. WPM was acquired on December 14, 2021.
Previous wording
Inflation did not have a material effect on our cash flows and results of operations during the three months ended March 31, 2024.
Current wording
Inflation did not have a material effect on our cash flows and results of operations during the three and six months ended June 30, 2024.
Previous wording
In response to COVID-19 developments, we implemented measures to focus on the safety of our FlyMates and support of our clients, while at the same time seeking to mitigate the impact on our financial position and operations. We have implemented remote working capabilities for our entire organization and to date, there has been minimal disruption to our operations. As vaccination rates increased and the pandemic abated, we reopened our offices to the extent local requirements allowed, although FlyMates continue to have the flexibility to work remotely. With the recent outbreak of hostilities in Gaza, we have also engaged in active workforce planning to help Israeli FlyMates support the business without interruption and implement safety measures for FlyMates in Israel.
Current wording
In response to COVID-19 developments, we implemented measures to focus on the safety of our FlyMates and support of our clients, while at the same time seeking to mitigate the impact on our financial position and operations. We have implemented remote working capabilities for our entire organization and to date, there has been minimal disruption to our operations. As vaccination rates increased and the pandemic abated, we reopened our offices to the extent local requirements allowed, although FlyMates continue to have the flexibility to work remotely. With the ongoing conflict involving Israel, we continue to engage in active workforce planning to help Israeli FlyMates support the business without interruption and implement safety measures for FlyMates in Israel.
Previous wording
Interest expense consists of interest on our 2024 Revolving Credit Facility and 2021 Revolving Credit Facility. In addition, interest expense consists of amortization of debt issuance costs and unused commitment fees related to our 2024 Revolving Credit Facility and 2021 Revolving Credit Facility.
Current wording
Interest expense consists of interest, amortization of debt issuance costs and unused commitment fees on our 2024 Revolving Credit Facility and 2021 Revolving Credit Facility.
Previous wording
On February 23, 2024, we entered into our 2024 Revolving Credit Facility for a total commitment of $125.0 million. The 2024 Revolving Credit Facility replaced the 2021 Revolving Credit Facility of $50.0 million entered into in July 2021, under which $50.0 million was available to Flywire as of December 31, 2023. As of March 31, 2024 and 2023, there was no outstanding indebtedness under the 2024 Revolving Credit Facility or 2021 Revolving Credit Facility.
Current wording
On February 23, 2024, we entered into our 2024 Revolving Credit Facility for a total commitment of $125.0 million. The 2024 Revolving Credit Facility replaced the 2021 Revolving Credit Facility of $50.0 million, which were entered into in July 2021, under which $50.0 million was available to Flywire as of December 31, 2023. As of June 30, 2024 and 2023, there was no outstanding indebtedness under the 2024 Revolving Credit Facility or 2021 Revolving Credit Facility.
Previous wording
Interest income consists of interest on cash held in interest bearing operating accounts, including money market funds.
Current wording
Interest income consists of interest on cash held in interest bearing operating accounts, including money market funds, and investments in available-for-sale debt securities.
Previous wording
All dollar amounts in the tables below are rounded to the nearest million. As a result, certain amounts may not recalculate using the rounded amounts provided.
Current wording
All dollar amounts in the tables below are rounded and as a result, certain amounts may not recalculate using the rounded amounts provided.
Previous wording
Revenue was $114.1 million for the three months ended March 31, 2024, compared to $94.4 million for the three months ended March 31, 2023, an increase of $19.7 million or 20.9%. Revenue is comprised of transaction revenue and platform and other revenues as follows:
Current wording
Revenue was $103.7 million for the three months ended June 30, 2024, compared to $84.9 million for the three months ended June 30, 2023, an increase of $18.8 million or 22.1%. Revenue is comprised of transaction revenue and platform and other revenues as follows:
Previous wording
Transaction revenue was $95.2 million for the three months ended March 31, 2024, compared to $76.3 million for the three months ended March 31, 2023, an increase of $18.9 million or 24.8%. The increase in transaction revenue was primarily driven by growth in transaction payment volumes, from both our existing clients and new clients added during the three months ended March 31, 2024. We experienced strong growth in payment volume across all regions and verticals during the period. Total payment volume increased approximately 23% during the three months ended March 31, 2024 to $7.0 billion.
Current wording
Transaction revenue was $85.3 million for the three months ended June 30, 2024, compared to $66.8 million for the three months ended June 30, 2023, an increase of $18.5 million or 27.7%. The increase in transaction revenue was primarily driven by growth in transaction payment volumes, from both our existing clients and new clients added during the three months ended June 30, 2024. We experienced strong growth in payment volume across all regions and verticals during the period. Total payment volume increased approximately 19% during the three months ended June 30, 2024 to $4.9 billion compared to the three months ended June 30, 2023.
Previous wording
Platform and other revenues were $18.9 million for the three months ended March 31, 2024, compared to $18.1 million for the three months ended March 31, 2023, an increase of $0.8 million or 4.4%. The increase in platform and other revenues was driven by the StudyLink acquisition, revenue from interest earned on funds held for customers in interest-bearing accounts and increase in platform products, offset by a decrease in revenue for printing and mailing and insurance products.
Current wording
Platform and other revenues were $18.4 million for the three months ended June 30, 2024, compared to $18.0 million for the three months ended June 30, 2023, an increase of $0.4 million or 2.2%. The increase in platform and other revenues was driven by the StudyLink acquisition, revenue from interest earned on funds held for customers in interest-bearing accounts and increase in platform products, offset by a decrease in revenue for printing and mailing and insurance products.
Previous wording
Payment processing services costs were $41.7 million for the three months ended March 31, 2024, compared to $33.9 million for the three months ended March 31, 2023, an increase of $7.8 million or 23.0%. The increase in payment processing services costs is correlated with the increase in total payment volume of 23% over the same period as well as increased use of credit cards, which have higher processing costs.
Current wording
Payment processing services costs were $39.9 million for the three months ended June 30, 2024, compared to $33.8 million for the three months ended June 30, 2023, an increase of $6.1 million or 18.0%. The increase in payment processing services costs is correlated with the increase in total payment volume of 19% over the same period.
Previous wording
Selling and marketing expenses were $30.1 million for the three months ended March 31, 2024, compared to $24.4 million for the three months ended March 31, 2023, an increase of $5.7 million or 23.4%. The increase in selling and marketing expenses was primarily driven by an increase in personnel costs, stock-based compensation, amortization expense and marketing costs. Personnel costs were $16.3 million for the three months ended March 31, 2024, compared to $13.6 million for the three months ended March 31, 2023, an increase of $2.7 million or 19.9%. The increase in personnel costs was primarily driven by an increase in headcount within our selling and marketing teams and commissions earned on sales during the period. Stock-based compensation was $4.0 million for the three months ended March 31, 2024, compared to $2.4 million for the three months ended March 31, 2023, an increase of $1.6 million or 66.7%. The increase in stock-based compensation is attributable to equity grants awarded to existing and new FlyMates. Amortization of intangibles was $1.9 million for the three months ended March 31, 2024, compared to $1.2 million for the three months ended March 31, 2023, an increase of $0.7 million or 58.3%. The increase in amortization expense was due to acquired customer relationships related to the StudyLink acquisition. Marketing costs were $1.7 million for the three months ended March 31, 2024, compared to $1.2 million for the three months ended March 31, 2023, an increase of $0.5 million or 41.7%. The increase in marketing costs was due to an increase in marketing initiatives and hosted events.
Current wording
Selling and marketing expenses were $31.8 million for the three months ended June 30, 2024, compared to $27.3 million for the three months ended June 30, 2023, an increase of $4.5 million or 16.5%. The increase in selling and marketing expenses was primarily driven by an increase in personnel costs, stock-based compensation expense and amortization expense. Personnel costs were $16.5 million for the three months ended June 30, 2024, compared to $14.0 million for the three months ended June 30, 2023, an increase of $2.5 million or 17.9%. The increase in personnel costs was primarily driven by an increase in headcount within our selling and marketing teams and commissions earned on sales during the period. Stock-based compensation expense was $4.7 million for the three months ended June 30, 2024, compared to $3.3 million for the three months ended June 30, 2023, an increase of $1.4 million or 42.4%. The increase in stock-based compensation is attributable to equity grants awarded to existing and new FlyMates. Amortization of intangibles was $1.9 million for the three months ended June 30, 2024, compared to $1.3 million for the three months ended June 30, 2023, an increase of $0.6 million or 46.2%. The increase in amortization expense was due to acquired customer relationships related to the StudyLink acquisition.
Previous wording
Interest expense was $0.1 million for both the three months ended March 31, 2024 and 2023. As of March 31, 2024 and 2023, there was no outstanding indebtedness under the 2024 Revolving Credit Facility or 2021 Revolving Credit Facility. Interest expense consists primarily of amortization of debt issuance costs and unused commitment fees related to our 2024 Revolving Credit Facility and 2021 Revolving Credit Facility.
Current wording
Interest expense remained constant at $0.1 million during the three months ended June 30, 2024 and 2023. As of June 30, 2024 and 2023, there was no outstanding indebtedness under the 2024 Revolving Credit Facility or 2021 Revolving Credit Facility. Interest expense consists primarily of amortization of debt issuance costs and unused commitment fees related to our 2024 Revolving Credit Facility and 2021 Revolving Credit Facility.
Previous wording
Interest income was $5.9 million for the three months ended March 31, 2024 compared to $1.9 million for the three months ended March 31, 2023, an increase of $4.0 million or 210.5%. The increase in interest income was due to our investment in interest bearing accounts, an increase in our cash balance compared to the first quarter of 2023, and an increase in yield earned from our investment in money market funds as interest rates increased during the three months ended March 31, 2024, compared to the three months ended March 31, 2023.
Current wording
Interest income was $5.7 million for the three months ended June 30, 2024, compared to $1.9 million for the three months ended June 30, 2023, an increase of $3.8 million or 200.0%. The increase in interest income was primarily due to an increase in yield from higher market interest rates and an increase in our cash balance attributed to our follow-on public offering during the third quarter of 2023.
Previous wording
(Loss) gain from remeasurement of foreign currency was $(4.4) million for the three months ended March 31, 2024, compared to $1.5 million for the three months ended March 31, 2023, a decrease of $5.9 million or 393.3%. The decrease was primarily the result of the remeasurement of foreign currency transactions into the British pound sterling and impact of fluctuations in exchange rates during respective remeasurement periods.
Current wording
Gain (loss) from remeasurement of foreign currency was $1.0 million for the three months ended June 30, 2024, compared to $(0.8) million for the three months ended June 30, 2023, an increase of $1.8 million or (225.0)%. The increase was primarily the result of the remeasurement of foreign currency transactions into the British pound sterling and impact of fluctuations in exchange rates during respective remeasurement periods.
Previous wording
Provision for income taxes was $1.6 million during the three months ended March 31, 2024, compared to $0.4 million during the three months ended March 31, 2023, an increase of $1.2 million or 300.0%. The income tax provision for the three months ended March 31, 2024 and 2023 was primarily attributable to activity in our foreign subsidiaries and U.S. state taxes. Our effective tax rate was (35.1)% for the three months ended March 31, 2024 compared to (12.5)% for the three months ended March 31, 2023.
Current wording
Provision for income taxes was $4.7 million during the three months ended June 30, 2024, compared to $1.1 million during the three months ended June 30, 2023, an increase of $3.6 million or 327.3%. The income tax provision for the three months ended June 30, 2024 and 2023 was primarily attributable to activity in our foreign subsidiaries and U.S. state taxes. Our effective tax rate was (50.8)% for the three months ended June 30, 2024 compared to (7.0)% for the three months ended June 30, 2023.
Previous wording
Technology and development expenses were $16.7 million for the three months ended March 31, 2024, compared to $14.5 million for the three months ended March 31, 2023, an increase of $2.2 million or 15.2%. The increase in technology and development cost was primarily driven by an increase in personnel costs and stock-based compensation expense. Personnel costs were $10.4 million for the three months ended March 31, 2024 compared to $9.3 million for the three months ended March 31, 2023, an increase of $1.1 million or 11.8%.The increase in personnel costs was primarily driven by an increase in headcount within our technology and development teams. Stock-based compensation expense was $2.6 million for the three months ended March 31, 2024, compared to $1.6 million for the three months ended March 31, 2023, an increase of $1.0 million or 62.5%. The increase in stock-based compensation is attributable to equity grants awarded to existing and new FlyMates.
Current wording
Technology and development expenses were $32.6 million for the six months ended June 30, 2024, compared to $30.5 million for the six months ended June 30, 2023, an increase of $2.1 million or 6.9%. The increase in technology and development cost was primarily driven by an increase in stock-based compensation expense, personnel costs and software and hosting expenses, partially offset by a decrease in amortization expense. Stock-based compensation expense was $5.4 million for the six months ended June 30, 2024, compared to $4.0 million for the six months ended June 30, 2023, an increase of $1.4 million or 35.0%. The increase in stock-based compensation is attributable to equity grants awarded to existing and new FlyMates. Personnel costs were $20.3 million for the six months ended June 30, 2024 compared to $19.2 million for the six months ended June 30, 2023, an increase of $1.1 million or 5.7%. The increase in personnel costs was primarily driven by an increase in headcount within our technology and development teams. Software and hosting expenses were $3.0 million for the six months ended June 30, 2024, compared to $2.4 million for the six months ended June 30, 2023, an increase of $0.6 million or 25.0%. The increase in software and hosting expenses was primarily related to increased hosting fees based on payment volumes growth and additional software needs based on headcount growth. Amortization of intangible assets was $3.1 million for the six months ended June 30, 2024, compared to $3.8 million for the six months ended June 30, 2023, a decrease of $0.7 million or 18.4%. The decrease in amortization expense was primarily due to a decrease in acquired technology.
Previous wording
General and administrative expenses were $31.6 million for the three months ended March 31, 2024, compared to $28.1 million for the three months ended March 31, 2023, an increase of $3.5 million or 12.5%.The increase in general and administrative expenses was primarily driven by an increase in stock-based compensation and personnel costs, offset by a decrease in other costs, change in the fair value of contingent consideration and professional fees. Stock-based compensation was $8.3 million for the three months ended March 31, 2024, compared to $4.6 million for the three months ended March 31, 2023, an increase of $3.7 million or 80.4%. The increase in stock-based compensation is attributable to equity grants awarded to existing and new FlyMates. Personnel costs were $13.2 million for the three months ended March 31, 2024, compared to $10.6 million for the three months ended March 31, 2023, an increase of $2.6 million or 24.5%. The increase in personnel costs was primarily driven by an increase in headcount. Other costs were $1.3 million for the three months ended March 31, 2024, compared to $2.7 million for the three months ended March 31, 2023, a decrease of $1.4 million or 51.9%. The decrease in other costs was primarily due to hedging losses recorded during the first quarter of 2023. Change in the fair value of contingent consideration was $(0.5) million for the three months ended March 31, 2024, compared to $0.4 million for the three months ended March 31, 2023, a decrease of $0.9 million or 225.0%. The decrease in contingent consideration was due to an adjustment made to the fair value of contingent consideration related to the StudyLink acquisition. Professional fees were $3.9 million for the three months ended March 31, 2024, compared to $4.7 million for the three months ended March 31, 2023, a decrease of $0.8 million or 17.0%. The decrease in professional fees was primarily due to a decrease in legal, consulting and audit fees during the three months ended March 31, 2024 compared to the three months ended March 31, 2023.
Current wording
General and administrative expenses were $63.6 million for the six months ended June 30, 2024, compared to $52.7 million for the six months ended June 30, 2023, an increase of $10.9 million or 20.7%. The increase in general and administrative expenses was primarily driven by an increase in stock-based compensation expense and personnel costs, partially offset by a decrease in change in the fair value of contingent consideration. Stock-based compensation was $17.9 million for the six months ended June 30, 2024, compared to $10.3 million for the six months ended June 30, 2023, an increase of $7.6 million or 73.8%. The increase in stock-based compensation is attributable to equity grants awarded to existing and new FlyMates. Personnel costs were $25.1 million for the six months ended June 30, 2024, compared to $20.7 million for the six months ended June 30, 2023, an increase of $4.4 million or 21.3%. The increase in personnel costs was primarily driven by an increase in headcount. Change in the fair value of contingent consideration was $(0.9) million for the six months ended June 30, 2024, compared to $0.4 million for the six months ended June 30, 2023, a decrease of $1.3 million or 325.0%. The decrease in contingent consideration was due to an adjustment made to the fair value of contingent consideration related to the StudyLink acquisition.
Previous wording
As of March 31, 2024, our principal source of liquidity is cash and cash equivalents of $619.0 million. Cash equivalents is comprised primarily of money market funds and bank deposits.
Current wording
As of June 30, 2024, our principal source of liquidity is cash and cash equivalents of $539.3 million, short-term available-for-sale debt securities of $31.7 million and the available undrawn balance under our 2024 Revolving Credit Facility of $125.0 million. Cash equivalents is comprised primarily of money market funds and bank deposits. Our short-term available-for-sale debt securities are comprised of corporate bonds, U.S. Government obligations and asset backed securities.
Previous wording
During the three months ended March 31, 2024, cash used in operating activities of $38.1 million was primarily the result of net loss of $6.2 million adjusted for non-cash expenses of $18.3 million, which primarily include stock-based compensation expenses of $14.8 million and depreciation and amortization of $4.3 million, offset by changes in our operating assets and liabilities of $50.2 million.
Current wording
During the six months ended June 30, 2024, cash used in operating activities of $57.4 million was primarily the result of net loss of $20.1 million adjusted for non-cash expenses of $38.8 million, which primarily include stock-based compensation expenses of $31.9 million and depreciation and amortization of $8.5 million, offset by changes in our operating assets and liabilities of $76.1 million.
Previous wording
During the three months ended March 31, 2023, cash used in operating activities of $20.8 million was primarily the result of net loss of $3.7 million adjusted for non-cash expenses of $12.4 million, which primarily include stock-based compensation expenses of $8.6 million, depreciation and amortization of $3.7 million, change in fair value of contingent consideration of $0.4 million, offset by a deferred tax benefit of $0.6 million and $29.6 million related to changes in our operating assets and liabilities.
Current wording
During the six months ended June 30, 2023, cash used in operating activities of $25.7 million was primarily the result of net loss of $20.5 million adjusted for non-cash expenses of $28.7 million, which primarily included stock-based compensation expenses of $20.0 million, depreciation and amortization of $7.9 million, provision for uncollectible accounts of $0.6 million, offset by a deferred tax benefit of $0.6 million and $33.8 million related to changes in our operating assets and liabilities.
Previous wording
During the three months ended March 31, 2023, cash used in investing activities of $1.8 million was the result of the $1.4 million of capitalization of internally developed software and over $0.4 million of purchase of property and equipment.
Current wording
During the six months ended June 30, 2024, cash used in investing activities of $62.2 million was the result of approximately $58.5 million of purchase of short-term and long-term investments, $3.3 million of capitalization of internally developed software and $0.6 million of purchase of property and equipment, offset by approximately $0.2 million from the proceeds from the sale of long-term investments.
Previous wording
During the three months ended March 31, 2024, cash used in investing activities of $1.5 million was the result of approximately $1.3 million of capitalization of internally developed software and approximately $0.3 million of purchase of property and equipment.
Current wording
During the six months ended June 30, 2023, cash used in investing activities of $3.5 million was the result of $2.8 million of capitalization of internally developed software costs and $0.7 million of purchase of property and equipment.
Previous wording
During the three months ended March 31, 2024, cash provided by financing activities of $2.2 million was the result of proceeds from exercise of stock options of $1.6 million, proceeds from issuance of stock under the ESPP of $1.4 million, offset by payments of debt issuance costs of $0.8 million.
Current wording
During the six months ended June 30, 2024, cash provided by financing activities of $3.9 million was the result of proceeds from exercise of stock options of approximately $3.2 million, proceeds from issuance of stock under the ESPP of $1.4 million, offset by payments of debt issuance costs of $0.8 million.
Previous wording
During the three months ended March 31, 2023, cash provided by financing activities of $1.8 million was the result of proceeds from exercise of stock options of $2.1 million, proceeds from issuance of stock under the ESPP of $0.9 million, offset by payments for contingent consideration of $1.2 million related to our acquisition of Cohort Go.
Current wording
During the six months ended June 30, 2023, cash provided by financing activities of $5.7 million was the result of proceeds from exercise of stock options of $6.0 million and proceeds from issuance of stock under the ESPP of $0.9 million, offset by payments for contingent consideration of $1.2 million related to our acquisition of Cohort Solutions Pty Ltd. in 2022.
Rearranged current paragraphs (8)
Current report — wording carried from elsewhere
Gain (loss) from Remeasurement of Foreign Currency
Current report — wording carried from elsewhere
Comparison of results for the six months ended June 30, 2024 and 2023
Current report — wording carried from elsewhere
All dollar amounts in the tables below are rounded and as a result, certain amounts may not recalculate using the rounded amounts provided.
Current report — wording carried from elsewhere
The following table sets forth our consolidated results of operations for periods presented:
Current report — wording carried from elsewhere
Transaction revenue was $180.5 million for the six months ended June 30, 2024, compared to $143.1 million for the six months ended June 30, 2023, an increase of $37.4 million or 26.1%. The increase in transaction revenue was primarily driven by growth in transaction payment volumes, from both our existing clients and new clients added during the six months ended June 30, 2024. We experienced strong growth in payment volume across all regions and verticals during the period. Total payment volume increased approximately 21% during the six months ended June 30, 2024 to $11.8 billion compared to the six months ended June 30, 2023.
Current report — wording carried from elsewhere
Platform and other revenues were $37.3 million for the six months ended June 30, 2024, compared to $36.1 million for the six months ended June 30, 2023, an increase of $1.2 million or 3.3%. The increase in platform and other revenues was driven by the StudyLink acquisition, revenue from interest earned on funds held for customers in interest-bearing accounts and increase in platform products, offset by a decrease in revenue for printing and mailing and insurance products.
Current report — wording carried from elsewhere
(Loss) gain from remeasurement of foreign currency was $(3.4) million for the six months ended June 30, 2024, compared to $0.7 million for the six months ended June 30, 2023, an increase of $4.1 million or 585.7%. The increase was primarily the result of the remeasurement of foreign currency transactions into the British pound sterling and impact of fluctuations in exchange rates during respective remeasurement periods.
Current report — wording carried from elsewhere
Provision for income taxes was $6.3 million during the six months ended June 30, 2024, compared to $1.5 million during the six months ended June 30, 2023, an increase of $4.8 million or 320.0%. The income tax provision for the six months ended June 30, 2024 and 2023 was primarily attributable to activity in our foreign subsidiaries and U.S. state taxes. Our effective tax rate was (45.6)% for the six months ended June 30, 2024, compared to (8.0)% for the six months ended June 30, 2023.