Flywire Corp At Autonomous 8th Annual Future of Commerce Virtual Symposium Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ken Suchoski - US Payments - Analyst : Maybe we could dig right into it. I mean, Mike, Akil for those in the audience who are less familiar to Flywire or maybe spend a minute or two, just on the overview of the business, what does Flywire do? And I guess what are the pain points that you're solving for your customers?

Question: Ken Suchoski - US Payments - Analyst : Great. That's super helpful. Mike, maybe before we dig into the business a little bit more. You mentioned the four different verticals. I think the first vertical Firewire was in was education. So how do you go from serving the education vertical to serve in education, healthcare, travel and B2B why those verticals? And what is the -- what's the moat around them?

Question: Ken Suchoski - US Payments - Analyst : Great. And can you talk about just the [ROI] college or a hospital it might generate when they adopt the Flywire type of solution?

Question: Ken Suchoski - US Payments - Analyst : Great. And what about them? What about the ROI, I guess, across the different the different verticals? And, you know, one question we get a lot is how does it differ across say, domestic payments versus cross-border payments?

Question: Ken Suchoski - US Payments - Analyst : Yeah. And Mike, I guess just one question, I thought of just digging into and that integration with that the general ledger, the financial, you know, accounting record all that stuff. What does that integration actually look like? Because I'm curious, is that like is it harder -- how hard is it to actually rip and replace, say, fireworks? I think that's where some of the Advantage might come from?

Question: Ken Suchoski - US Payments - Analyst : Yeah. Okay. That's that's helpful. And I guess maybe just digging into it the domestic side a little bit. I mean, how does that onboarding process compare to cross-border payments? I think one of you mentioned that maybe that takes a little bit longer to stand up. So I'm curious why why is that? And just any thoughts on like who Flywire is taking share from on the domestic side? Because it has to be coming from somewhere?

Question: Ken Suchoski - US Payments - Analyst : Yes. Okay. That's really helpful Akil. I guess some maybe just dig into NRR a little bit because I mean that's it remains really impressive above the three-year average. I think that you guys shared at your Analyst Day. Can you just talk about what's driving that? And I guess how does each vertical contributed to the overall NRR?

Question: Ken Suchoski - US Payments - Analyst : I guess just one, maybe just a follow-up on this. I guess you have just one question that I thought I'd just because I think at the Analyst Day Akil was the it just like the revenue opportunity with the existing customers that you have? And I forget the exact number, I think it was pretty meaningful, but I guess as you think across these different on the -- different opportunities in terms of where that that upside comes from? Is it functionality? Is it geographic expansion or is it products adoption. I'm just curious like how you think about the different components of that revenue.

Question: Ken Suchoski - US Payments - Analyst : Yeah. No, I'm super excited and I appreciate all the detail there. And I guess just one other question, just to round out this discussion that I thought of how much influence do you actually have over your share of volume with a client? I mean, you mentioned get it they're grabbing domestic volumes versus cross-border, but like is it really the school that's pushing payment options or is it --

Question: Ken Suchoski - US Payments - Analyst : Yeah, that's helpful to you. I guess I wanted to ask about penetration in the field vertical and even sub vertical. I mean, it's cross-border education payments. I think that's really where you started. And I believe you disclosed at the Analyst Day that about 75% of your revenue comes from cross-border education payments. That's both on the US side and the non-US cross-border education payments business. So I guess what is the penetration of the TAM looked like there and how much more room is there to still grow quickly in that and that sub verticals?

Question: Ken Suchoski - US Payments - Analyst : Yeah. Maybe we could just dig into that because I always find that fast. And so how does that work? If you're just for people who are less familiar with the so you're what you're getting X amount of students. And then why like year two, you're getting that next class of students that make that payment and then it keeps it keeps growing just like peak after your forward? Is it like keep going? Because there's awareness? How does that work?

Question: Ken Suchoski - US Payments - Analyst : Yeah, that's great. So it seems it's a little bit of this like waterfall, where you gain momentum each year and it builds on itself. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 14, 2023 / 5:15PM, FLYW.OQ - Flywire Corp At Autonomous 8th Annual Future of Commerce Virtual Symposium Okay, that's clear. I guess, China, India, maybe we could if we could touch on those countries. I mean, there's two other top sending countries in terms of international students. And we looked at some of the data in terms of the students coming into the US from those countries and it looks like there's still some room to recover. So I guess the question is how much room is left in that recovery? And I guess the other question, we get a little bit too, is how does Flywire benefit from students changing destinations? So for example, if a student chooses to study in the UK or Australia, maybe not in the US like do you actually capture some of that spend as well?

Question: Ken Suchoski - US Payments - Analyst : You might actually see an impact I guess if that seat is backfilled, if somebody from China is not coming here, that's backfilled by somebody else and you would participate and the economics there. So it sounds like you haven't really seen, I guess as much of an impact.

Question: Ken Suchoski - US Payments - Analyst : Yeah okay. That's helpful. And then I guess we hit on this a little bit earlier, but just want to make sure we understand it. I mean, just can you talk about the land and expand opportunity within your existing education? Clients are still still a big vertical? And where is that growth coming from? We hit on the domestic side, but what what are the other opportunities that you see there?

Question: Ken Suchoski - US Payments - Analyst : Can you just talk about the traction you're seeing with the recently launched student health insurance offering to I think it was Australia about international students. I mean, would you see an opportunity to launch a similar offering in other geographies?

Question: Ken Suchoski - US Payments - Analyst : And with that, I guess is that more What might that look like, Mike, I mean, is it more insurance or is it what are some of the other, like, I guess, opportunities that you might be able to address?

Question: Ken Suchoski - US Payments - Analyst : Okay. We'll stay tuned. Maybe we could talk about international expansion, you know, so far you've been successfully expanding the education business outside the US. Some of that was organic. Some of that was M&A international education, I think is 20% of revenue. It was 20% of revenue a few years ago. I think it's just under 50% this past year. And I guess how did you increase that so quickly and I guess in which countries and regions, are you seeing the most traction? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 14, 2023 / 5:15PM, FLYW.OQ - Flywire Corp At Autonomous 8th Annual Future of Commerce Virtual Symposium

Question: Ken Suchoski - US Payments - Analyst : Okay, great. Maybe you could talk about the health care vertical and it's your second largest vertical, I think a little over 10% of revenue. Can you just talk about how you're helping customers in that vertical? And I'd be curious to know who you're actually competing against in that healthcare?

Question: Ken Suchoski - US Payments - Analyst : Yeah. And just to just remind us Akil the revenue in that segment is there is it mostly in that platform and usage fee line? Or is there some transaction revenue as well? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 14, 2023 / 5:15PM, FLYW.OQ - Flywire Corp At Autonomous 8th Annual Future of Commerce Virtual Symposium

Question: Ken Suchoski - US Payments - Analyst : Perfect. Okay. And I think you I think you called out some performance in that vertical, I think was a little challenged a little bit below expectations over the last few quarters on that, you expect the most recent client signings and deployments will help drive healthy growth going forward. So can you just talk about the growth drivers for this vertical? Are there other offerings that you can develop in healthcare to extend the growth runway?

Question: Ken Suchoski - US Payments - Analyst : Okay, perfect. Guys, we got a question from the audience just on healthcare, so I want to leave it in here. Interest rates, what is Flywire's, TAM assessments specifically for the health care segment?

Question: Ken Suchoski - US Payments - Analyst : Yeah. And how do you guys think about it from a from a revenue standpoint? Is it higher yield in as it is about the same as you see and on the education side? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 14, 2023 / 5:15PM, FLYW.OQ - Flywire Corp At Autonomous 8th Annual Future of Commerce Virtual Symposium

Question: Ken Suchoski - US Payments - Analyst : It's more domestic market right? I know the Cayman Islands has some people travel and get surgery and all that stuff. But like it's primarily a domestic market. So I guess that's why the we don't want to say take rate, but just to the revenue in the market versus the volume opportunity is going to be lower, I guess is what you're saying?

Question: Ken Suchoski - US Payments - Analyst : Yeah, that makes sense. I misheard you a Akil so that. Okay, so you're really adding a lot of value. I guess in terms of managing that payment for that hospital, they don't have to deal with that. I guess they're not payment experts so that we're able to monetize that more effectively.

Question: Ken Suchoski - US Payments - Analyst : Yeah, it's a good point, Mike. Maybe we could switch to the travel business. I mean, that's been growing really nicely. I think you mentioned that given the strong growth and the traction this vertical has now it's graduating from this emerging vertical to a more mature one. So nice work there. But can you just talk about where the company is having success in travel. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 14, 2023 / 5:15PM, FLYW.OQ - Flywire Corp At Autonomous 8th Annual Future of Commerce Virtual Symposium

Question: Ken Suchoski - US Payments - Analyst : Okay, great. And then I guess some -- maybe I guess we have like 10 minutes left. Maybe just touch on B2B. Can you just remind us of the the part of the market that you're targeting and maybe also touch on why you think Flywire is offering we'll be able to win in this market?

Question: Ken Suchoski - US Payments - Analyst : Okay. That's really helpful. And then I guess, I mean, how does the team determine how to allocate capital across the different verticals? Because it sounds like a little bit like the verticals are competing against each other. You have so many opportunities, they're competing against each other. So when Mike and you have -- your team, how does how do you guys actually decide where to put the capital? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 14, 2023 / 5:15PM, FLYW.OQ - Flywire Corp At Autonomous 8th Annual Future of Commerce Virtual Symposium

Question: Ken Suchoski - US Payments - Analyst : And I guess we have a few minutes lastly, where do you see upside to your our TAM estimates? I think you mentioned we're looking at expanding into other use cases and different sub segments within travel. I mean, what are some of the solutions that you can develop to increase the TAM across your existing verticals?

Question: Ken Suchoski - US Payments - Analyst : Yeah, that's a good opportunity. And then just I mean, for some folks on the line, not familiar with the agent, model and method there. How does that actually work on then I guess which geographies or which regions is that more common? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 14, 2023 / 5:15PM, FLYW.OQ - Flywire Corp At Autonomous 8th Annual Future of Commerce Virtual Symposium

Question: Ken Suchoski - US Payments - Analyst : Exactly, that would help quite a bit. Maybe before I let you guys go. I mean what new verticals do you plan to enter in the coming years. Obviously, there's a lot of wood to chop on the existing verticals, but when you look at potential opportunities, does anything stand out?

Question: Ken Suchoski - US Payments - Analyst : And then maybe last question. I mean what's net for Flywire? I mean, what are you guys most excited about for the next year here?

Question: Ken Suchoski - US Payments - Analyst : That was well said it's a good way to end it. Mike, Akil, thanks so much for taking the time. I enjoyed the conversation. Always I try to tell when I talk to you guys. So thank you so much and look forward to doing this again next year.