By Connor Hart
Flywire said it would cut about 10% of its workforce as part of a restructuring aimed at driving productivity and optimizing investments.
The layoffs came as the Boston payments company on Tuesday swung to a loss in the fourth quarter and guided for lower-than-expected revenue in 2025, despite an acquisition that is expected to fuel operations.
Shares fell 19%, to $14.36, in after-hours trading. The stock has declined 28% in the past year.
Flywire estimates that it will incur between $7 million and $9 million in charges in connection with its restructuring, consisting largely of severance payments, employee benefits and related costs. It expects the majority of these charges to hit during the first quarter and said the restructuring will be substantially complete by the end of the third quarter.
The company had approximately 1,200 full-time employees as of December 2023, according to its most recent annual filing with the Securities and Exchange Commission, meaning the cuts could affect roughly 120 employees.
Also on Tuesday, Flywire said it would buy Sertifi, a hotel-property-management system, which Chief Executive Mike Massaro said would help accelerate the expansion of the company's travel vertical.
The deal is expected to provide incremental revenue of $3 million to $4 million in revenue during the first quarter, as well as $35 million to $40 million in fiscal-year 2025, the company said.
Factoring in the deal and restructuring, Flywire guided for revenue to grow 9% to 13% year-over-year in 2025 on a constant currency basis. Analysts modeled sales of $587.3 million in 2025, up 19% from a year earlier, according to FactSet.
In the recent quarter, the company reported a loss of $15.9 million, or 12 cents a share, compared with a profit of $1.3 million, or 1 cent a share, a year earlier. Analysts surveyed by FactSet expected a loss of 1 cent a share.
Revenue increased to $117.6 million from $100.5 million a year ago.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
February 25, 2025 17:57 ET (22:57 GMT)
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