- GeneralIPO
- May 18, 2021
- 5 minutes read
Billing Startup Paymentus Files For IPO
An electronic billing startup based in Redmond, Washington has filed for a public listing. That startup is Paymentus, a billing…
An electronic billing startup based in Redmond, Washington has filed for a public listing. That startup is Paymentus, a billing and payments platform serving vendors in many industries.
- Paymentus has unveiled an updated S-1 filing with the US SEC indicating that it plans to raise $210mn at a targeted valuation of $2.4bn from its IPO. It’s offering 10 million shares priced between $19 and $21 each on the public markets.
- As expected, Paymentus’ S-1 filing provides major insight into the company’s business with information not publicly known before. Here, we’re highlighting some very important bits from the loaded S-1 document, beginning with revenue stats.
Revenue Stats:
- Paymentus had $302mn in revenue in 2020, compared to $236mn in the previous year. The company is profitable, with $14mn of net income declared in both 2020 and 2019.
- Paymentus had gross profit margins hovering around 30% in 2020 and 2019, not bad but not as high as that enjoyed by a handful of other tech companies on the current IPO train.
Emphasized Risks:
- The risks highlighted by Paymentus in its S-1 document are pretty standard ones such as failure to retain personnel, regulatory compliance, and the operational burden of being a public company. It doesn’t look like there are major, out-of-the-ordinary risks highlighted by the company.
Highlights:
- Paymentus has offices in the US, Canada, and India. Formally, it’s headquartered in Redmond, Washington, a city with a strong presence of technology companies most especially Microsoft.
- Major shareholders of Paymentus poised to get rich from its IPO include CEO Duyshant Sharma and investor Accel-KKR with a majority stake in the company.
- Paymentus is listing on the New York Stock Exchange under the “PAY” ticker symbol.
Our take:
- Paymentus appears to be a very stable and profitable business, a good one for the public markets although not the type with outsized growth favored by investors with an appetite for high risk.
- Paymentus is the type of stock to buy if you want to enjoy a smooth ride that won’t involve you getting tensed up from price volatility when you check your brokerage account.
