Flywire Corp At Autonomous Future of Commerce Symposium Virtual Transcript

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

Question: Ken Suchoski - Autonomous Research - Analyst : So with that Cosmin, why don't we get started. You been in the role for, call it six, seven months now. I'm interested in hearing your reflections on your early experience, what aspects of the role have proven to be more or less challenging than anticipated? And are there any new insights or developments that have influenced your approach?

Question: Ken Suchoski - Autonomous Research - Analyst : Absolutely. You've done a good job and more disclosure disclosures are always welcomed by the analyst community investor community. So that would be very much appreciated. Maybe we could dig into some of that growth. I mean the company has been growing organically, FX neutral on a revenue basis, mid-20s despite absorbing the impact from Canada. So maybe you could talk about what's driving that growth, how much is coming from education versus some of the emerging verticals that the company has scaled?

Question: Ken Suchoski - Autonomous Research - Analyst : Great. And maybe we could dig into some of the key debates on the name, and I apologize in advance, but we will have to speak about Canada just because we have had conversations, maybe we'll get underway first, and then we'll move on to other things. But the company's most recent outlook assumes a larger impact from some of the regulatory changes in Canada versus prior. It's been a little over a month since you reported earnings, maybe just give us an update on the latest trends that you're seeing and maybe touch on the visibility you have into recovery in that region? 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 13, 2024 / 2:30PM, FLYW.OQ - Flywire Corp At Autonomous Future of Commerce Symposium Virtual

Question: Ken Suchoski - Autonomous Research - Analyst : And that's a good segue into my next question, Cosmin, when you and the team talked, I think you mentioned the uncertainty in Canada is being driven by the ambiguity around the work permit status post graduation. And I think the working assumption is that that's going to be clarified by year end. I mean, what exactly is the uncertainty around the work permit status? And why did that have an impact student decision-making?

Question: Ken Suchoski - Autonomous Research - Analyst : No, it seems like short-term noise and maybe last question on candidate Cosmin. I mean, what's the thinking behind the assumption of no capture -- recapture revenue this year? Is that gets pushed out to 2025? Or is that thinking is that a lost revenue opportunity that's permanent? And I guess is there any reason students wouldn't be able to relocate to other markets later this year, such as it's a tight turnaround. You only have so many months to find a school --

Question: Ken Suchoski - Autonomous Research - Analyst : And so, it is probably hard to tell what exactly is recapture revenue, right, because you might have a student that stays in another country and it's actually hard to measure that and track that. So there probably is some recapture you might not even know it.

Question: Ken Suchoski - Autonomous Research - Analyst : Yeah, totally. And that's a good segue into the next area I wanted to focus on, which is Australia. I know there's been some regulatory news in Australia, I think it was last month that we talked about limiting the number of international students led to study in the country. There's a lot of different numbers being thrown around. It's across different segments of the education market, but how should we think about the potential impact to the student population there, if you could just give us a lay of the land and the potential impact to Flywire that would be great. 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 13, 2024 / 2:30PM, FLYW.OQ - Flywire Corp At Autonomous Future of Commerce Symposium Virtual

Question: Ken Suchoski - Autonomous Research - Analyst : Okay. I think the latest on Australia, the transaction revenue still it was up like 50% or maybe north of 50% --

Question: Ken Suchoski - Autonomous Research - Analyst : Okay. That's great. So you guys still have a lot of momentum in the market. And then just in terms of next steps and timeline, I think it requires a parliamentary approval and that senate needs to pass legislations, are those the next steps that you and the team are hearing any sense on the timeline around all this? 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 13, 2024 / 2:30PM, FLYW.OQ - Flywire Corp At Autonomous Future of Commerce Symposium Virtual

Question: Ken Suchoski - Autonomous Research - Analyst : Okay. Look forward to following that. And outside of Australia and Canada, I mean, you hit on this a little bit earlier Cosmin, but how are those education markets such as the UK, US, Europe performing? Any signs of increased nationalism in these countries?

Question: Ken Suchoski - Autonomous Research - Analyst : Maybe sticking with education Cosmin, I mean excluding some of the noise around Canada, how do you think about the normalized growth in that business and maybe you can quantify that drivers because obviously you get some tailwind from signing up new schools, more student paying through the Flywire platform, you have new products that you're introducing. So maybe just help us better understand how this business is growing as quickly as it is and the drivers of that growth? 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 13, 2024 / 2:30PM, FLYW.OQ - Flywire Corp At Autonomous Future of Commerce Symposium Virtual

Question: Ken Suchoski - Autonomous Research - Analyst : And maybe delving into that expansion within the schools, I mean, is there a rule of thumb for how penetration changes within a school over time, meaning (inaudible) capture, say 10% of the international student payments in the first year of working with the school, this just go up to 13% in the second year, 15% in the following year. I'm assuming capturing more students over time would be a nice tailwind to revenue growth.

Question: Ken Suchoski - Autonomous Research - Analyst : Yeah. No, it seems like a good growth opportunity. I wanted to dig into the domestic education opportunity Cosmin. I know the company has had some success there over the years. I mean, who do you mainly compete against in that business? And what's driving the wins? What's driving the success? 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 13, 2024 / 2:30PM, FLYW.OQ - Flywire Corp At Autonomous Future of Commerce Symposium Virtual

Question: Ken Suchoski - Autonomous Research - Analyst : Absolutely. And maybe we can touch on the non-education verticals. I mean, you guys have done a good job growing in some of these verticals. Maybe start with travel that grew. I think it was over 50% in the first half of this year. You mentioned it's now the second largest vertical. Can you just talk about what's driving the success across the different geographies and different subsegments within travel?

Question: Ken Suchoski - Autonomous Research - Analyst : Okay. Great. Let me touch on health care. I think the companies have some impact from the change health care issues. Maybe talk about the performance in health care over the last few quarters. I think, was this business down, was it flat? And I guess what drives that confidence, Cosmin, in healthcare accelerating when you think about the growth in the second half of the year?

Question: Ken Suchoski - Autonomous Research - Analyst : Okay. All right. So that makes sense. And maybe just sticking with the gross margin discussion in travel and B2B, obviously growing faster than some of the other verticals and becoming a larger share of revenue. I mean, how do you think about this mix shift impacting gross margins for the overall company?

Question: Ken Suchoski - Autonomous Research - Analyst : And just the whole business, as I think about if the mix of vertical that actually wasn't changing. Is the right way to think about it that the margins would be fairly stable from a gross margin standpoint, like is that a good rule of thumb?

Question: Ken Suchoski - Autonomous Research - Analyst : Okay. Maybe a higher-level question, Cosmin, I wanted to ask about just the organic FX neutral revenue growth rates normalized for the Canada impact, and I think that second half revenue guidance, so ex-Canada, ex the acquisitions, your guidance implies roughly 30% revenue growth in the second half, and that's fairly consistent with what we saw in the first half. And I think the team called out at the Investor Day a couple of years ago that you expect 30%-plus revenue growth over the medium term. So can you talk about your confidence in getting back to that 30% growth rate in the timeline to return to that level of growth?

Question: Ken Suchoski - Autonomous Research - Analyst : Great. And there's one question from the audience Cosmin, just on this -- touching on this point and he ask, is it fair to think about the 4Q exit rate as a decent starting point for next year? And I think you're talking about revenue growth? And then they're also asking just on Canada like this headwind this year create easy comps and think about growth for next year? 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 13, 2024 / 2:30PM, FLYW.OQ - Flywire Corp At Autonomous Future of Commerce Symposium Virtual

Question: Ken Suchoski - Autonomous Research - Analyst : And maybe last question for you, Cosmin, and then we'll let you go. I mean what excites you most about the opportunity for Flywire over the next few years? And what should all be intention to?

Question: Ken Suchoski - Autonomous Research - Analyst : Great. That's a great way to end, Cosmin. Thanks so much for doing this. Always good to catch up and see you and we'll chat soon.