Flywire Corporation (FLYW) Earnings Call Transcript & Summary

Good afternoon, and welcome to Flywire's Inaugural Analyst Day. I'm Akil Hollis, Investor Relations and Financial Planning. We are very excited to welcome you all here in Boston with our management team. We also welcome everyone joining online and look to hear from you. But before we jump in, a little housekeeping. During today's presentation, we will be discussing certain forward-looking information. Actual results could differ materially from those contemplated by these forward-looking statements. We will also be discussing certain non-GAAP financial measures. Please refer to the appendices of today's presentation for disclosures related to our non-GAAP financial measures and to our SEC filings for more information on the risks regarding the forward-looking statements that could cause actual results to differ materially, and risk factors associated with our business. Wonderful agenda today. First, we'll have Mike Massaro discussing our vision. Then Allison will lead our vertical heads through a discussion of our businesses. Afterwards, Dave and Mohit will describe the Flywire Advantage within our software platform, and our payment network. After Q&A and a quick break, Rob and Uday will describe our investments into our growth levers. Gary will describe how we're building and sustaining a strong culture at Flywire, and then Mike will finish this off with a discussion of our financial profile and our financial outlook. And with that, I'm happy to introduce our CEO, Mike Massaro.

Welcome, everybody. Thanks for being here today. Welcome, analysts, investors, guests. We're really excited to be doing this and doing it in person and virtually here today. As you saw in that video, we have an amazing set of clients. We have an amazing global set of FlyMates all around the world, and we have some unique assets including that Flywire Advantage that we're going to talk about today. Before we get to this agenda today, we're going to dive a little bit into vision and the road ahead at Flywire. So first, our strategy. The 3 core tenets of that strategy continue to be: first, our thesis, software drives value and payments. I'm sure people in this room have heard me say it 100 times by now. What we mean by that is the industry-specific billing, payment and reconciliation software that we have delivers great user experiences, helping our clients get paid. We're marrying that tech and people together to deliver great solutions for our clients. In addition to that, that software is deeply embedded within our clients' ecosystem. The second part is that Flywire has a unique set of core assets. That payment platform, global payment network and the vertical software. That's what we call the Flywire Advantage. The platforms that shared set of services, it's leveraged by all of the various industry-based solutions. It manages all compliance risk technical integration points. The global payment network allows people to pay from anywhere in the world, domestically or cross-border across bank transfers, card payments, third-party wallets, and then that vertical software, again, deeply embedded and industry-specific. The third part of our strategy is really about the industries that we serve and going deep with vertical expertise in our industry, education, travel, health care and B2B. At the university side for education, we work with the top colleges and universities around the world. In health care, we're servicing some of the biggest health systems here in the United States. In travel, it's focused on 3 subsectors: luxury tour operators, accommodations and destination management companies, a massive global opportunity. In B2B, we're on the accounts receivable side, helping digitize payments for businesses invoicing all around the world. These industries that we serve are massive, nearly $12 trillion of total addressable market. And if you look at the bottom, I know it's a question many of you have had for us, we're extremely early in the penetration of these markets, no matter which way you look at it. In education, if you look at the 18,000 colleges and universities around the world, just about 7% Flywire coverage. If you cut it by the number of higher ed students alone, about 1% are actually using Flywire technology. If you look at health care, $0.5 trillion market here in the United States, just about 10% penetrated when you look at health systems or the number of hospitals using Flywire here in the United States. When you look at travel, you can cut it by tour operators, 2.5 million of them around the world, again, less than 1% penetrated for Flywire. But if you look at international travelers, which are going to continue to grow over the next decade, again, still 1% penetrated. And when you look at B2B, we've talked about this massive $10 trillion addressable market. We've talked about our focus in technology, professional services and manufacturing sectors. Just the tech companies alone, over 15,000 and less than 1% penetrated. Across all that B2B total addressable market, $280 billion of invoices and Flywire is in the early innings of that industry. These industries also have great positive trends we've talked about. And so when you look at that, you're seeing growth, organic growth inherent to these industries. These are also massively resilient industries, especially in difficult economic times, right? People spend money on education, on health care. They've been saving up for 2 years for certain type of travel experiences. Businesses all over the world continue to grow, even in the face of a pandemic. And many times, they invest more in digitizing their back office during that period of time. We've accomplished quite a lot since our IPO. Whether it's growing our existing client base, taking our net revenue retention to 123%, average 3-year, 118% at the IPO, including that COVID impacted year. Some customers wanting to do more and more with Flywire. You've seen how we've accelerated our net new client additions, adding over 440 new clients across all our sectors. We've added different partner integrations and channel partnerships. We've gone ahead and expanded into new geographies and geographic markets, Iceland, Thailand, Poland as some examples. We actually hit a major milestone in our emerging businesses of travel and B2B payments. 400 clients across those 2 sectors. And we've gone after strategic M&A, as we said we would in the IPO. And we've pursued and executed well on those. So excited for many of you to meet some of the WPM FlyMates, which are actually here today, and we'll be around all day long. So we're really excited about that opportunity, what we've accomplished to date and what we'll be accomplishing over the next many years. As we shift to looking a bit ahead, Flywire has a clear path to ongoing growth. Looking at where we are today and what we project for 2022 revenue, within our customer base, there is a 5x to 7x multiplier effect to revenue with the existing customers and the existing solutions we have. I know big area, a lot of you have asked a lot about. That's an amazing statistic. When you look at what else we can do to grow this business over the next decade, it's adding new clients all around the world across our sectors. It's looking for opportunities, which we've proven to be able to do in new subsectors and adding additional products that address new use cases. And it's pursuing additional opportunities for M&A. This ultimately, we believe, will make Flywire into a global leader at the intersection of software and payments. And as you'll hear from Rob and others today about our future, there are some key learnings I want you to remember as you hear about our investments. Within our industries, complexity exists everywhere. These are industries that have been poorly served and poorly digitized, and Flywire is 1 of those vendors that's able to help. Our customers have immense trust for us. Their payers trust us. There's various partnerships and ecosystem providers that we've built trust with and that's a core component. They want to do more with Flywire. They want to find ways to partner and accomplish more. And the last point is these are not just industries that we're serving. These are entire vertical ecosystems. It's one of the things you're going to hear a lot about today. There are all types of money movement and payments and opportunities to help our customers solve real problems. And we're going to talk about that extensively today. We're going to talk, and Rob is going to do this a bit later about how we're expanding that Flywire Advantage. If you think of where we came from in the past, we built the Flywire Advantage, the platform, the network, the vertical software. But we did it for 1 country and in 1 industry, education, where we've been spending our time in the last few years has really been driving that global expansion and scale. Across industries, we've talked recently about how we're investing in our go-to-market, how we're geographically adding new areas around the world for clients in our payment network and how we're investing in product and payment innovation within our product and engineering teams. The future also holds plenty of great opportunities for growth for Flywire. There are a number of adjacent areas within our industries that you're going to hear us talk about today that we think will help continue to drive growth for years and years to come. You're going to hear about strategic payables. You're going to hear about non-client receivables, and you're going to hear about some new payer services as well. So again, such an amazing opportunity with the investments we've made and the potential we see in the markets and relationships we have. And we've accomplished this and intend to continue to accomplish this with very strong financial performance. Whether you look at payment volume, revenue less ancillary services, adjusted gross profit, which I know many of you look at, adjusted EBITDA, we've got great financial metrics within our business. And we understand the uncertain times we're in, and you can expect us to continue to be extremely mindful as to how we grow and where we invest in this business going forward. Mike Ellis is going to go into great detail about our financial metrics later on and also share quite a bit about our outlook for the future. Fundamentally, none of this would be possible: past, present, future without our FlyMates. You're going to get a chance to meet so many of them here today. And there's 750, almost 800 of them all around the world, 40-plus nationalities. People have heard me say 30-plus languages spoken inside the company. But we all share a set of values that we truly believe in. This is a group that values authenticity, collaborates every single day. They innovate, they learn, they make mistakes, but we learn. But they fundamentally graded execution, and we try and do all this while living a fulfilled personal and professional life. It's an amazing group of people. I couldn't be more proud, and I'm excited you're going to get to meet so many of them here today. One topic I also want to hit on is just ESG. This is something that's not new to Flywire. This is something we've invested in for quite a bit of time. There are 4 pillars to our ESG strategy, which you can also read on flywire.com. First, people and culture; corporate social responsibility; data security and compliance; and environmental sustainability. These are the 4 pillars you're going to hear us talk more and more about. Whether you're looking at the people and culture aspect of it and our focus on equity, inclusion and diversity, we've got an amazing global set of people all around the world. It gives us an amazing basis to impact, right? 40 nationalities, 30 languages spoken. We have FlyMates that want to help from a corporate responsibility perspective all over the world. And so investments we've made in the charitable foundation, which does a whole series around scholarships and philanthropy or just what FlyMates put together on their own, using their fly better days, which are paid PTO for them to go and donate their time and effort into causes that they care about. These are areas that have been core to Flywire long, long before we were public. Data security and compliance, it's another major area. We have an awesome risk and compliance and security team. This is a team that has pretty much looked at every geographic, every payment related, every technology, every industry-based regulation and has found ways to keep investing in that and ensuring Flywire always stays on the cutting edge of all the required regulation. And environmental sustainability. It's not an area for us where we have a big footprint, right, just based on who we are as a technology company. But we're still committed to reporting on Scope 1 and Scope 2 green gas emissions. If you look on the right-hand side, you see where we are in this journey. Not only have we created and executed with an internal task force. This has been assigned to the Board of Directors, Nomination and Governance Committee for oversight. You've already seen us make ESG disclosures within SEC filings. And we're in the process of finalizing our materiality assessment. And you're going to see at flywire.com continued updates about our progress in this area. So before I hand it off to the team, I hope you come away with today realizing a few things. First, our platform, network and software is truly built for scale. And it's built for scale for decades to come. We're very proud of that. We have an amazing set of clients. Trusted relationships with over 2,700 clients across all our industries around the world. The total addressable market across those 4 industries is massive. We're in the early innings of execution in it. And finally, we have a powerful economic model and a track record of strong financial performance. With that, I'm going to hand it over to Allison MacLeod.

Let move our chairs up a little bit, get cozier here. Hi, everyone. Thank you so much for joining us today. I am Allison MacLeod, Flywire's Chief Marketing Officer. I get the great and distinct pleasure of leading our global marketing organization across our vertical go-to-market strategy and demand generation as well as revenue operations. I also get the pleasure of working along with these 4 amazing individuals here who lead our verticals. So for the next bit, we are going to do a deeper dive of the verticals that we serve. And what I'd like to start with first is having each of our leaders give an overview of the vertical that they lead, who they are, their background as well as how we solve for our clients. So Sharon, let's start with you.

Thank you. Hi, everybody. Sharon Butler, I'm the EVP and GM of Flywire Education. And I have 20-plus years' experience in the education industry, and I'm also one of the founding members of Flywire. So I've been at this for 10-plus years. And I would have to say the thing I'm most proud of, though, is the team of industry education experts that I lead that day in and day out are talking to institutions around the globe and helping them solve the complexities of payments. Today, we have over 2,000 institutions, right? And at the same time, we're just barely scratching the surface. You've heard Mike speak about our opportunity to grow our existing client base. Well, those 2,000 institutions are -- were less than 7% penetrated in the education market and less than 1% penetrated in the international students that go to those universities. It's such a great opportunity. When you know more about education and our vertical experts know this, it's incredibly rewarding to be able to sit at the table with these institutions who are so underserved as far as technology and innovation go. And we come to the table not only understanding those challenges but having deep insights into all of the partnerships that they have. And we get to help them solve problems for today and also help them plan for the future. So I'll tell you a little bit about the education industry. I think it's important to understand the complexities of education, and there are a lot of them. And I think you'll hear them across the panel here. I think if you're not in the spaces that we're in, you really don't have the insights of what we're dealing with. So it's exciting to be able to chat about that today. Let me say this. Education is riddled with manual reconciliations, paper processes, fragmented marketplace to receive payments. It's one of the most uninvested -- the student finance office is one of the most invested departments on campus. These are really big businesses, and they're really struggling to figure out how to manage the receivable and provide a really great experience to students. And what we do is we sit in the center of all of these challenges. They have to work with third parties. They have to work with banks. They have to work with the agents. They have to work with partnerships and families. It leaves them very little time to help the only solve for the -- how do I pay for this bill. And so what we do in my team of experts, we have this ability to deliver a solution to them that allows them to spend more time consulting with students and families on how they can pay the tuition.

Fantastic. Thank you, Sharon. So moving over to healthcare. John, your introduction, please?

Yes. Hi, everyone. John Talaga, EVP, GM of the Healthcare business. I've had 20-plus years in revenue cycle management for health care as well as patient billing and payment and just had the opportunity to work with hundreds of hospitals over the years, innovating and building solutions. But like Sharon said, one of the most exciting things is I've had the pleasure to build an amazing team of also industry experts to drive the Flywire business. And we service today over 400 hospitals across the U.S. And that includes 4 out of the top 10 largest health systems by a number of hospitals. And our focus is helping our clients transform their patient's financial experience. And in turn, that helps these clients drive yield. So they increase their collections, reduce their cost through automation. And our opportunity is massive. And you heard Mike talk about the difference, I mean, I think, across all of this, but our total addressable market is $500 billion. And we just started to tap that with just under 10%. We're a leader in the market, and there's still just a huge pathway and runway that we have ahead of us. And we serve this by doing this through our personalization engine, affordability engine, and of course, wrapped around our global payments platform as well as serves all the verticals. So to give you just a little bit of color around the problem we solve. Like Sharon's a very complex ecosystem in healthcare, I would say, the most complex ecosystem of the verticals. However, it is, and I'm just going to focus to simplify it and just kind of 4 key themes. The first one is affordability. You hear a lot about affordability for patients. The second one is consumerism and digitization. And the third is consolidation happening in the marketplace and then leading to a fragmented marketplace as well. So the first one, affordability. 35% -- in this recent study, 35% of fully insured patients couldn't afford a medical expense in just the last month. And that sort of thing is really being driven by high deductible health plans for employed consumers so not just people that are uninsured. And that's leading to consumerism which, by and large, patients want to take a more active role in making their health care decisions and a lot of that's being decided by price these days. So really important for that. The second thing is consolidation. We have lots of consolidation happening in the marketplace. One example is a client of ours CommonSpirit Health, the largest Catholic health system in the U.S. They have 140 hospitals, they have 6 different markets, and they manage 5 different EHRs across their health system. EHR, for those of you that may not know, is electronic health record. It really is the centerpiece of managing a health system form from scheduling, registration, seeing your test results and then eventually making a payment as well. So how do we address these things? This is really where we come in. Hospitals just haven't had a good opportunity to manage these costs very well and make it easy for patients to pay. So what we do is we're pulling data from these EHRs, sometimes multiple EHRs. And we're running -- we're consolidating these together into a single view across all these different entities and different systems. So a patient can see this in 1 view, 1 balance and make 1 payment. Remember, all this ecosystem complexity, patients don't care, right? They want it to be very simple. The second thing that we're doing is we're helping them engage those patients the digitization, consumerism in such a way that we're identifying the capacity to pay through a personalization engine and then making -- giving them payment options that they can afford. So -- and then, of course, a frictionless way for them to get in, make their payment, or set up a payment plan. And then the last thing is we have to have super deep integrations into these EHRs and not only the EHRs, but also the multiple vendors that touch the revenue cycle as well, early out vendors there's third-party payers. All of this comes into an ecosystem and make it simple for patients. So really excited to talk more about that.

Lots of complexity for sure. Colin, moving over into travel.

Hi, everyone. My name is Colin Smyth. I'm the Vice President and General Manager of the travel vertical here at Flywire. I've been fortunate enough to be at Flywire for over 5 years now. And spent the last 15 years in my career in go-to-market revenue type roles and began my career in the capital markets groups, Lehman Brothers and Barclays. In travel, we focus on 3 subsegments, all specializing in high-value, high stakes payments; travel operators, accommodation and destination management companies. And in those companies -- specializing in those companies and the opportunity in travel is large. And that's one of the themes you'll hear from everyone up here. But it's large for 2 main reasons. One, the TAM in which we're going after, over $500 billion. But more importantly, how early we are within that TAM, less than 1% penetration with regards to the 2.5 million global travel companies and less than 1% adoption with the overall international travel market. So that is a really exciting opportunity for us here in travel. We're really excited to dive deeper into it. More importantly, let me share for what we actually solve for. Often, we hear from our travel companies that to be a travel company, you have to be a payments company. And that isn't by choice. You don't get into the travel business because you have a passion for payments or bank fees, those types of things. And we often solve this around 2 main things, 2 main themes we pull out. One is the complexity of payments and second is the fragmented marketplace in which these companies operate in. So let me give you an example. Think of it adventure travel company based in Canada. 80% to 90% of those guests are going to be coming internationally. So automatically, this company has a payment problem from day 1. Do they bill only in Canadian dollar? Do they bill in U.S. dollars? Do they bill in euros? Do they bill in Singapore dollars? And the cost that comes with sending and receiving those funds is quite high. And so right away, they say, how do we deal with this? How do we kind of grow our business in an inefficient manner when all they really want is that Canadian dollar. And so that's a great issue for us to solve at Flywire. And then you think about this fragmented marketplace. And what we see from a lot of our customers before they start working with Flywire are legacy systems that are antiquated, and start to kind of stack on top of each other. And what you start to see and we see from a lot of our destination management companies all over the world is that while they're creating itineraries with agents, they're doing this over e-mail in static PDF forms. And what starts to happen is that 1 part of the business understands the itinerary. One part just handles the reservation. And then another part just handles the payment experience. And so this operational inefficiency that starts to happen is really painful and really cumbersome for them to deal with. And so in Flywire and travel, we look at this and say, oh my goodness, there's an awesome opportunity. How do we go do with this? And so we see the complexity of the payment, the fragmented marketplace. And we just get more and more excited each day with the opportunity we have in front of us and look forward to sharing more about that as we go forward.

Fantastic. And I can actually say from experience, I know what a great and seamless process we provide just recently taking a trip with 1 of our travel clients. So thank you, Colin. And then moving over to B2B. Ryan?

Thanks, Allison. Always tough to follow at the end of this panel. I'll see if I can make my introduction just as good as the rest of them. So Ryan Frere have been in payments, specifically international payments for the last 15 years in my career. Last 8 of those have been here at Flywire, and the first 7 of those actually spent leading our global payments function. And we might think why is that relevant in this case. Well, what it means is I know firsthand what it takes to go open up bank accounts globally, work with credit card partners and alternative payment methods. So I understand firsthand the problems that AR teams are now faced with trying to collect payments from around the world. We're differentiated for this reason, and you'll hear more about it later from I believe, Mohit and David will talk about our Flywire Advantage. What we're really here to talk about, what I'm excited to talk about is bringing our all-in-one AR solution to market. It's these pain points that I've talked about that AR teams are facing globally that has us so excited about the opportunity in front of us and know that we have a really unique position to bring to mid-market and small enterprise businesses. With this solution -- where did my mic go? There we go. I'll speak louder for you. So with this solution, one of the things that's really wonderful, and I think differentiates from many other companies that are looking at AR space is, this is difficult to solve for. Looking at everything from invoice all the way through to reconcile payments is not an easy thing to do. Flywire, we've talked about it a lot. We deliver value and payments through software. We're approaching the B2B business in the very same way that we've done with the other verticals. We're going in and solving a painful payments problem with software that helps solve this AR challenge and faces them. And we're doing this in a very large market. Well, John, you may have the most complex payments to solve for. We have the largest TAM to go after. So what does that mean? As Mike mentioned earlier, we're less than 1% penetrated across 15,000 SaaS companies where we're seeing early success in, and we see less than 1% of overall 280 billion invoices sent globally. It's a little about the solution and how we're actually doing this. What I want to take you into is like the journey or the mindset of what these AR teams are facing. It's an extremely inefficient process just to get paid. What's been so interesting if you look at the last decade or so in Fintech specifically, so many companies have focused on AP, that's not us. We're here to solve for AR because AR is hard. It's really complex at the end of the day. This is a spot where PDFs attached to an e-mail is considered to be a modern billing solution, which is a little insane when you start to think about it. The amount of money moving globally attached to a PDF really doesn't make for a transparent process. It doesn't give a great payer experience at all either. So what do we do? What does the finance team do in that case? They have to invest. They expand their team. They add siloed processes. Most of these are manual. Again, all with just the goal of trying to get paid. They end up taking their resources off strategic initiatives that finance teams really want to be focused on and applying them to much more manual tasks. But don't just let the anecdotes tell the story. We actually spent some time surveying finance professionals. We released in the news report a few weeks ago, over 70% of CFOs believe they lose 4% to 10% of revenue on a monthly basis due to inefficiencies in their AR process. Even more fascinating or at least we found even more fascinating, 93% or 92%? 92%. 92% of those also said that they believe they can increase their EPS with more efficient AR processes. So with all of that in mind, this is why we're so excited about the B2B vertical and what we're up to. The fact that we can go solve everything from that invoice through a reconciled payments on the back end with a seamless all-in-one solution, bringing that to market and helping sell pain points for AR teams globally.

Brilliant introductions and clearly, no competition between the 4 of them, which is great. So moving on, we hear about the complexity, how we're solving it and the types of things that we're doing. But I do want to dive in now and talk about our clients. We've got some pretty amazing stories. You've got to see a glimpse of 2 clients there in the video that opened our event today. But let's start -- Ryan, let's start with you and talk about Basis.

Great. Love to. Because I think there's no better way than to talk about what we're up to them through the eyes of a client, as you saw earlier from some of the ones highlighted in the video. So Basis Technologies, they're a global software company. They focus on automation for marketing technology for small enterprise or enterprise clients. They've actually been a client of ours for a few years now. We started with them in the international space because they had challenges globally in terms of receiving payments. And most recently, we had the opportunity to go ahead and solve for all the AR problems domestic and internationally. Before we came into play, as I was describing earlier, what they were faced with was very manual processes, again, siloed across even the finance teams. They had no real automation in place. So with a result, things were slower. Not only was it slow to get paid, which we know globally can happen. It was slow for them to reconcile. It was low for them to understand what their cash positions were and they really didn't have the visibility in the AR that they wanted. Fortunately, for us, new leadership stepped into place and with the main focus on automation. What they wanted to do is take all these manual processes and automate it with their ERP system on the back end, which fortunately was matched in this case. So what they were looking for from us, they wanted a single source provider. This is something that we've really found quite interesting actually in the last 18 months of our B2B journey is that many companies want 1 provider to solve this for them. They wanted to be able to solve for both global and local payment methods for their payers. This is another piece that pops up, we can talk about a little bit later, too. Payer experience is really important in the B2B space. The most consistent touch point many companies have with their customers is through the invoice process. So if you're sending a manual process with the PDF, that might not be providing the best experience possible and represent your company's brand well. Obviously, things like PCI compliance were very important to them, and they wanted to make sure that they could optimize their FinOps function on the back end. So with our NetSuite bundle, we were able to walk in, provide a seamless solution that helped automate all their AR for them. We supported things like multi-invoice payments. We supported the ability for prepayment workflows as well all through the bundle. And we did this by automating their entire reconciliation process.

That is a great land-and-expand story. Sharon, University of London and other exceptional client story here.

Absolutely. And I could -- I love talking about our clients. And I'd like to think in education, we basically really educated our institutions on the importance of that payer experience. They spend millions of dollars trying to recruit these students to come sit in their classrooms. And then when it's time to pay that massive bill, it's not -- it's typically not a good experience. And I'm sure there's some tuition payers out there that probably have bet in this. But let's talk about the University of London. The University of London is a series of colleges, but they -- with regard to their online program, they decided to centralize it. So they have an online program that serves over 90,000 students from all around the globe, and essentially, what they wanted to do is to be able to automate the process there. So their original solution was to choose a credit card option so that, that solution could auto trigger the release of coursework and create some streamlined processes. What essentially happened with that, though, is when you offer a single way to pay with a really high ticket price, you didn't see a lot of adoption. Instead students and families were sending direct wires to the institution and calling nonstop. Did you get my money? How come my course is not released? So the solution did not really turn into what they needed and the institution spend so much time trying to field those calls and release that coursework that it created just a ton of work for the entire team. So with Flywire and my team in the U.K., they like to call it the 1 door is we essentially shut down all these disparate payment options and instead connected our global payments network to this -- to their student information system, which is called Tribal Sits. And by doing that API into that system, we could allow all families to choose the way to pay that made sense to them in their home markets. So they get to pay local and the school receives the tuition local. And in so doing that, with this automation, we were able to auto trigger the release of the course load, but not restricting it just to a credit card. We saved the institution at least 7 figures in merchant fees, and we reduced the amount of inbound calling and all of the manual reconciliation that was going on. And the additional thing that this institution appreciates because it is a very complex world of education that people worry about compliance and money laundering is we help them streamline that payment experience and ensure that we kept things running smoothly.

That's incredible. Moving over now travel into Iceland, Nordic Visitor.

Yes. Very interesting one and one we're extremely proud of in the travel vertical. Quick overview, Nordic Visitor is 1 of the largest destination management companies based in Iceland. And what were some of the challenges they faced prior to working with Flywire? First of all, a truly global business, offices in 3 different countries worldwide, but more importantly, a truly international guest profile. So guests coming from the United States, guests coming from Europe, guests coming from Asia. And that presented a challenge to them right away, which was what are the currencies we have to operate in? How do we manage that? How do we deal with that cost especially being headquartered in Iceland, not the easiest of markets to deal with and try to kind of run a business in. In addition to just the cost that they had to work through in terms of those currencies. Secondarily, the fragmented marketplace, when we started to talk to them, we started to see that they had a lot of legacy systems that again were stacked on top of each other, and they really understood that in order to really grow the business and efficiently run the business, they needed to find a new process. And so why did they choose Flywire? Before they even started talking to us and really engaging with us in a real conversation, the mandate they kind of put down was they were really going to work with 1 provider. They wanted someone who could come in and become that integrated payment solution for them. And really proud of our integrations team who were able to create an enterprise-level deployment all during COVID, I'd like to point out, sadly, we were not able to go to region spend time in Iceland on the deployment, but really proud of the work they were able to really streamline the process, reduce costs for them, not have to have Nordic Visitor worry about all these different currencies, these international guests, how do they manage that? How do they deal with that? And then one of the parts of Flywire that I think we all love the most and most proud of are these vertical experts who really understand what it means to work with the travel company. The team that works with Nordic Visitor on a daily basis understands what it means to be a DMC, how to deal with high-value payments, sticky payments, troubling payments, solving those for DMCs. And so for Nordic Visitor, that's a huge burden that gets taken off their plate on a regular basis. And so now Flywire is the only way you can pay through a Nordic Visitor trip, whether that be on an e-commerce transaction on their website or if you call one of their sales representatives. In addition, Nordic Visitor has acquired several companies through the pandemic, which is exciting. We will continue to grow the Nordic Visitor account and see huge opportunity in Nordic Visitor itself. But more importantly, we're onboarding the other companies they acquired through the last few months. So really excited about the opportunity that sits within this company.

Thank you, Colin. And I'm sure if it's not there already, everyone just added Iceland to their list of travel options.

We know a couple of places.

John, Banner Health. We got it to see that video just a bit ago with Brad Tinnerman and I wrote down something he said. He said, revenue cycle is complicated. Managing the patient portion is emotional. So would love for you to give the relationship between Banner Health and Flywire.

Yes. First, I hate following in Colin because pictures are always a little more exciting. But yes, I'd love that quote from Brad. Really, that really speaks volumes to really the fulfillment that the healthcare team gives out as we're doing a lot more than payments and technology. We really are making stressful situations for patients, it's a little easier. But when you -- Brad described a little bit, Alex, about what we're doing at Banner Health, 30 hospitals, 300 clinics, 6 different states and 50 different urgent care centers. And one of the things that they recognize early on is that, that experience for the patients was very traditional. It's very much like lots of hospitals still that we see out there where they send bills, and they have very little transparency in the front end is what a patient is going you probably all experienced that in various stages. And -- but they recognize they need to completely transform this. And this really dealt with getting the people behind us to look at processes that were outdated and really looking at changing new processes, and then ultimately partnering Flywire to give them a technology platform that can be flexible enough to fit in with all this stuff. So we deployed this. And as Alex said, the results really do speak for themselves is one of the things that we do on the front end is we enable them for the first time on an estimate, let's say, you come into a hospital and they say you're going to owe $1,000 if you're out of pocket after insurance. And in the past, they'd ask you to pay. And very few patients would pay because they would wait for insurance and then they deal and wait for their statement. Now we have the ability to say they have the ability to -- Banner through our platform and say, we can set you up on payments for $100 a month. Would you like to do that and we'll adjust it based on after insurance adjudicates. So lots of more patients are settling their balances now in advance, which completely eliminates the billing event on the back end. So the results are 85%, as Alex said, payment plans are made online. We're seeing $10.7 million that are paid in the first 4 months at point of service, which is a big part of what they're trying to drive. And then this resulted also in a 15% increase in their point-of-service collections year-over-year. And then last, which is critical, is 89% of their post-service payments went self-service. So 11% were over the phone, believe it or not before is -- 11% now, which most of them prior to that was over the phone with negotiations.

That's great. What's pretty as we were all talking through, I believe every story we talked about here, right, was the opportunity we have to: one, bring on new clients, but also grow with those existing clients. So pretty great to see that expansion. So we talked about complexity. We've talked about how we solve it. We've talked a bit about the mission of our verticals and the opportunity ahead. But we know there's also a lot of innovation and excitement in what we're doing. So for the next piece, let's dive into that. And for each of you, let's focus on the top 3. Top 3 things that you're most excited about. So starting with John.

This is not an easy thing to do. But when we would look at it first omnichannel engagement and our affiliates program and then the last thing we'll talk about is deeper integrations with EHRs. I'll start with omnichannel. There's been a joke before this had this to 20 minutes because we were so excited and then we cut it down to 3 minutes.

You're down to 3 now, John?

3 minutes. But health systems are really -- you think about this is, health systems are competing for their patients' attention like no other industry. If you think about it you're dealing with your cable bill, your phone bill every month, and you've got these things on autopay in many cases. And then you get this invasive, large balance medical bill, and it's confusing. You don't know really why you have this balance, did insurance pay what they said they're going to pay. So lots confusion. So what we -- a lot of these hospitals now are doing is turning to this omnichannel engagement, which coordinates e-mails, text, chat and even paper to be able to identify the patient's conversation profile. So do they like to respond through text or e-mail? Or are they somebody member demographic and health care is a world, are there somebody that likes to write a check? So understanding that and how they respond becomes super important. And we've seen some great results from the omnichannel. We're actually upgrading all of our current clients to this and of course, selling this as part of our new -- for new clients on our platform. We're seeing 80% uptick into our log and experience. So driving lots of digital and we've seen 50% increase in payment plan activation often e-mail and text. And then the last thing is we're seeing a 25% increase in digital payments via SMS and e-mail as well. And this is -- we already sent SMS and we already sent e-mail, but coordinating all this in such a way is what's been so exciting. The second thing is the affiliates program. So again, in the industry to kind of help drive some context to this, we work with big health systems, take AdventHealth, as an example, 50 hospitals in Florida. And we help consolidate and do all those things that I mentioned with that system, but there's still a lot of these affiliate physician groups, anesthesiologists, radiologists, that are not part of the health system that are serving the patients when you're in for hospitals. So these are the surprise bills that these patients are receiving because they think they paid Advent when they get all these different bills. So we partnered with Advent as well as another client of ours, which is Envision Healthcare, which is a multispecialty physician group across -- served across the U.S. And we enabled through our Flywire platform these affiliate physicians to opt into the platform, which in turn, they allow the patients to sign and log into 1 experience, see all of the Advent's bills, charges, et cetera, all the physician's bills and charges, and then they can pay 1 balance or they have 1 balance, they can make 1 payment and set up 1 payment plan. So that's been a really successful land and expand opportunity for us to get an additional physicians, but also it helps the hospitals do more access to health care and support the communities around them. The last one, which I would never get through innovation and opportunity without talking about our deep integrations with EHRs. None of this stuff works well. Clients won't buy it if you don't have these deep integrations with the EHRs. So we continue to invest in that. Cerner and Epic make up the vast majority of the market share for EHRs in our target market of large health systems. For Cerner, we have a close partnership with them in which we do development, and they are reselling as a preferred partner, our solution inside their platform. So they've been a great channel partner for us, but that also means a lot of investment with their development and engineering team and continuing to innovate with those integrations. Epic on the other hand is one that doesn't really partners much with vendors. They want all eyes on Epic, all eyes on MyChart, but there's still a lot of opportunity there for clients to want to optimize. And what we do is we take a little different approach that we work with Epic customers by embedding our services inside the MyChart experience. So that means all I still stay on MyChart, reconciliation, processes stay the same. And we do a lot of this development by leveraging the Epic App Orchard marketplace, where we're putting actions there to make it easy to download services from Flywire and make it easy to get that optimization for our clients.

I think it's going to be equally as hard for you to come up with your top 3, but I'm going to ask you to do it anyway. I know there's a lot happening in education.

It's -- I'm sure everybody sees the passion for our business, we live and breathe this stuff instead of our teams. But my top 3 are global agent organizations, non-client receivables and the geo client expansion. So I'll start with the global agent organizations. When you're solving for the complexities of education and those receivables, you start to see an interconnected web of stakeholders that are really important and where those flows are coming for. You said that your -- healthcare is very competitive, so is education, and they're really competing for that international student. They bring diversity, but they also pay full ticket price. And what you find is that education agents that are in these markets like India, China, Vietnam, Latin America, it is incredibly common for students to work -- students and families to work with these education agents. In fact, 75% of students being placed in seats in Australia have partnered with an education agent. So within this sub ecosystem, and that's why we talk about this unbelievable opportunity in education because even as you start to network through this other stakeholder, your mind blows up because there's so much opportunity. So helping them to solve their complexities of their process, which is they're communicating out to all these families to help guide that student to a university of their choice. And in so do and then advising those students on how are they going to pay, what insurances might they use, all of these different things, they have a major influence on the student. But the main thing we're solving for right now is that we want to ensure that the student tuition flows are going to our universities. And so it's important to take -- to wrap our arms around this particular stakeholder because they're right there when the student is ready to pay. So we built a software layer that allows these education agencies to send over linkage to the students so that they're paying directly to our universities. They get out of the money flow, which helps our institutions become more compliant, but they now have visibility to that money moving. So we're really solving some challenges for them. There's a ton of opportunity here that we're just uncovering including how more we can help monetize some of their interactions that they're having with students. The second thing is the non-client receivables. You heard earlier in one of our calls that we did a partnership with Ascensus, who is a big servicer of 529 plants. But typically, in education, when we're dealing with that account receivable, we're partnering directly with the institution. When you want to solve for something like a 529, I don't know if anybody has tried doing one of those disbursements lately. But when you start to really dig in behind the scenes, you discover that we -- our institutions would say, hey, twice a year we get these giant piles of checks that show up. Sometimes they get delivered to the mail room or to like the gym. But -- and then we have a million parents calling us saying, hey, why didn't my payment get posted. And you can't imagine the calls they get on the servicer side. So how we solved it, is we collaborated with Ascensus, and we built a fully digital payment experience so that when a family goes in to try to -- it's time after 20 years of putting money into an account to say -- send it over to school. Now they can actually make that happen digitally because of the work we've done with them. And so we're -- I'm super excited because when you're trying to solution for a large organization like Ascensus, you can't say, oh, we'll send it to these clients. You've got to service all of that flow, and that's what I'm really excited about. And what else can we do with disbursements. And then the third thing that really excites me is our geo and client expansion. So we're having great success in opening up the LatAm market. I think we'll see a case study at some point with Rob talking about how we're serving all payments even in Mexico now and in Peru. So that's really exciting. We can do more global expansion. But we are barely scratching the surface of being able to really penetrate our existing clients as well. So this is just massive opportunities for us to leverage our software layer in those ecosystems around education to drive more value with Flywire.

Excellent. So Ryan, top 3 in B2B.

I have to say first, I chuckle every time Sharon tells that story thinking about somebody like a basketball coach getting a pile of checks from -- not knowing what to do with them. So as always, you hear the same thing, difficult to choose. But for us, it's really kind of continuing to invest in our strengths around that all-in-one, I spoke of before, deepening that automation, expanding our partner ecosystem, which I'll chat a little bit about, and then direct invoicing, which I'm really, really excited to chat about here today, too, because I think it's one of those things is going to truly differentiate from an innovation perspective on how we're tackling this AR probably that we've talked about so much. So in terms of the deepening AR automation, as I mentioned before, it's truly that process from invoice always settled cash and where we continue to add value for AR teams. What are the processes we continue to pick off to automate for them so they can spend more time on the important things for their business and less time on manual process and siloed functions as we spoke about before. That's really our goal there to eliminate that manual piece all together. On the partner ecosystem side, I'll talk about 2 types of partnerships we've been investing in. You heard before in the NetSuite bundle that I referred to. So for us, critical from a technology perspective. When we walk into an AR team to finance leadership, we want to be embeddable into their current processes. We do not want to be a rip-and-replace scenario where they think they have to invest a lot of time to get value out of our solution. What we want to be able to do is work directly with the workflows they have in place today and automate and improve what they're already doing. So we do that through things like our bundle with NetSuite, allows us to go into a NetSuite environment and handle that automation, that payment collection and reconciliation from the invoice that gets delivered upfront all the way to the reconciliation data that goes back into the ERP. So that's what we talked about from the partner and the technology side. When it comes to 2 other partnerships that we really like to speak to is our YayPay and Bank of America partnerships that we have. So YayPay by Quadient is an invoicing and billing solution that's global and they were looking for a partner to help them collect globally for their customers. I think Rob speaks to a client like that later on when it comes to a story that we've been able to solve for them. What they were able to do with our product is embed our payment capabilities right into their invoicing solution. We handle, again, as you would expect, everything from the collections reconciliation, and we deliver the information back into the YayPay solution. So the client side is seamless. We handle everything in the middle. This is the regulatory piece, it's compliance aspect of it, everything again, associated with that global collection. And then Bank of America is a great partner of ours as well, not just on the payment side that Mohit will speak about later, but then also from a B2B perspective. They saw an opportunity for us to come and work alongside their FX and treasury teams to provide technology in areas that they hadn't been able to solve for yet. This again, comes back to that AR functionality. So we work closely with our Bank of America team to go ahead and solve for global receivable and FX. The last piece, which I mentioned before, I'm probably most excited to talk about it a little bit because it ties right in my background and understanding how hard this is for AR teams to focus on. So many teams look at automation and digitization and only think about it for low value e-commerce-like transactions, things that can go over a credit card rail or maybe an alternative payment method. Very few companies have any focus on how to do that for the large value bank payments that typically happen. So if you think about an AR team, a lot of the times, the funds that are coming back in are coming over multiple rails. For us, we've created technology and we've innovated with obviously working closely with David's team on how to digitize those bank rail payments that traditionally are slow, hard to reconcile and can be expensive. So we bring this with our direct invoicing product. We're able to handle this in a digital manner now so we can handle all volume for our clients, both the low-value payments and the high value ones are most interested in.

Great. And then we see that stat again as you referenced earlier, that 92% of CFOs said they could increase their earnings per share with a better AR solution. So great to see again exactly what we're solving for here. And in travel, Colin, you're top 3.

Here we go, and I'm going to borrow 1 of Sharon's favorite lines, there's opportunity everywhere to get to 3 is a little difficult, but we had to. So we will do it. And so kind of the 3 ones that we think about in travel are strengthening our team focused on our core subsegments as we talked about accommodations, DMCs, travel operators, the interconnectivity of the travel networks and the organic referral network we're building, and then lastly, our digital acquisition strategy. And so as Mike mentioned at the beginning, investing in our go-to-market teams, and I think about this in a couple of different ways. One, how do we go forward with the geographic areas that we can go after, right? How do we create sales teams and leadership teams that allow us to go after the markets where we see opportunity, where the complexity in payments, whether those fragmented marketplaces where we know if we have people going after travel operators, accommodation companies and DMCs will quickly grow the business and grow it in the right way. And one of the reasons we're so passionate about that is we see this interconnectivity within the travel network. And let me give me a real-life example. Serandipians is a luxury travel network where Flywire is a preferred payment partner. And what's happening today is host agencies are introducing Flywire to DMCs. DMCs are introducing Flywire to travel operators. Travel operators are introducing Flywire to accommodation companies. And there's so many things we can do with that from a payment perspective. I promised Rob not to steal his thunder, so I will leave it there, but there's a lot we can do there. And so very, very excited about that. And lastly, our digital acquisition strategy. One of the areas we've really doubled down on is this digital acquisition. One of the most exciting parts of the travel vertical over the last few years has been the collaboration between our sales and marketing teams. To identify key digital channels and strong marketing partners that allow us to not only consistently grow our pipeline but replenish that pipeline. And so when you think about the foundation we've built from a digital acquisition standpoint, coupled with this interconnectivity that comes with these networks and then being able to look at certain markets or certain geographies or diving deeper in these large massive TAMs that we're early in, in travel operators accommodation and destination management companies. We feel really strongly and very passionately, hopefully you can tell about our go-to-market belief and strategy going forward.

That is amazing. So this is -- we're going to get to our last part. But before we do, as we've been talking through, there's many key themes, right, that just come through as usually we speak. We've heard growth with new clients, expansion, solving complexity, partnerships, more partnerships going deeper with our partners and our integrations, our verticals truly are ecosystems and lasting relationships with our clients. So I know I get the distinct pleasure of working alongside of you each and every day as we think about our go-to-market strategy and how we solve for these 4 verticals. But I want to hear from all of you and to share with this audience here, why do we win? So starting in travel, Colin?

First of all, thank you, Allison, for the time. Thank you all for being here today. For you all remotely, it's been great to give you a little insight into the travel vertical. And so why do we win? I think we win on a variety of levels. One of the main things I think about is savings, and we think about this in 2 different fronts. One, you can think about the cost savings. So the hard dollars we actually save our travel businesses. The opportunity we give them to reinvest into their companies in a way that they never could have before Flywire. But more importantly is the time saving we give them. The ability to replace those legacy systems, those antiquated processes, those ideas that 1 part of the business is dealing with the booking, one part is dealing with the reservation and a whole other parts dealing with the payment. We take that all away for them and give them the opportunity to do what they want to do, which is offer exceptional guest experiences to have more repeat business. Those types of things are really critical to what we do in Flywire. In addition, modernizing and really going after these segments that we talked about, the TAM in which we're going after over $500 billion, how early we are with this and how we are modernizing these experiences is really critical to why we win. And again, it comes back to this organic referral network that we see happening, this interconnectivity, which allows us to not only help our current clients, the hundreds that we work with on a daily basis but see that number growing rapidly over time. And due to the fact that this is such an interconnected world that's so broken and so fragmented. It's just a few of the reasons why we went. Allison also told us we only 4 of these, too. So very, very excited to continue on.

Thank you, Colin. Ryan?

Sure. Thank you, Allison. So I'm going to actually start with people and products. As Mike mentioned earlier, for us, it goes back to what others have mentioned, too, it's having a team of industry experts that can go out there and understand the pain points associated with our clients that we're working with. That singular focus on AR is so critical for us in how we win that ability to go in with a single-source solution that solves painful payment problems through software. I don't see anybody else doing this today quite like we do. When you start to look at similar things to Colin mentioned around cost savings. Of course, there's transactional cost savings associated with the actual processing of payments. But what gets really interesting for us is when you start to combine the direct and indirect costs associated with not just transactional savings, but then also the operational efficiencies that are gained with the solution. You combine that together and you look at something like 62% savings for our company when they look at putting our solution in place. It's really amazing to see that value added and driven through our clients that we work with on a daily basis. I'd say the last piece for us, and then it's not here on the slide, but I'm going to add for a second on it, which, of course, is the ability for finance teams to take that manual focus and apply it to much more strategic functions. We hear about that consistently from finance leadership. How do I get my team more strategic? How do we focus on more important things for the company? So when we can walk in with our single-source solution, take away that manual effort associated with AR, it allows our teams to focus on more important things for their business.

Thank you, Ryan. John, why do we win in healthcare?

Yes. So just to hit on a few key things. And first of all, we're an industry pioneer and proven track record. We can't underestimate the importance of that in healthcare. Hospitals want to work with vendors that work with clients like them. It's really important for them to say, what's your EHR, your Epic integration. On this version of Cerner, on this version of MEDITECH, these things really matter to them. So we're able to, with our 400 clients, bring a lot of that experience of clients, some clients that we've had for 6, 7 years. The other thing is that drives into our proven ROI. We believe that we have the best ROI in -- compared to our competition that is proven with hospitals and large health systems. And that really helps us when we're going up against the competition. Things like 15% increase in net collections. That can make or break a year for a hospital with how much the patient owes in terms of their net patient revenue now. And then on the -- we're on the forefront of the industry, when it comes to digitization, addressing consumerism, affordability, engagement. These are the things that, as I said before, are at Board level decision level where it's reached that priority. So having the ability to drive that is really important. And then last, again, I think it always comes down to the deep integrations that we have with these EHRs and be able to show workflow and easy access to the services without disrupting their back end.

Thank you, John. And finally, Sharon?

Yes. Number one, it's the trusted partnerships that we have and the reputation we have in the industry. And currently, working with 2,000 clients and uncovering this incredible network effect that we've already referenced about that exists in education. So with our software layers, with understanding the various complexities the institution are solving, we have this ability to sit in the center connecting agents, payers, partnerships like student information systems and third-party agencies. And when we start to help each one, we have agents saying to institutions, please work with Flywire, they make our job a lot easier. And then you have institutions saying, please work with these agents because they bring us students, so we want to streamline that process as well. We have student information system partners like Tribal in the U.K. and PeopleSoft institution here in the U.S. that we collaborate with. And it really helps us do more with our institutions. And I always -- as I'm sitting here and everybody is talking and saying, what did I forget to share we do digitize payments, but we provide incredible customer support. We are an extension of the campuses that we serve, and I always say to my team, imagine if all we provided was a 20 -- around the clock multilingual customer support. Someone could go out and actually have a business like that, but that's just the complementary that we deliver with the clients that we serve. We have a huge runway ahead of us. Just digging into 1 or 2 accounts is massive opportunity, and my team is really, really excited to just keep helping our institutions do more with less and help them be more competitive.

Thank you, Sharon. So thank you to all of you today. Hopefully, I know we can talk about this all day long. So we are limited for time. So we will end here. Thanks all for joining. And of course, this group will be around all day for questions. So next, we will hand it over to David King, our Chief Technology Officer, who is going to start with the Flywire Advantage.

All right. Good afternoon. Volume? We're good. All right. Good afternoon, everyone. I'm David King. I am Flywire's Chief Technology Officer. First, a little bit about me. I have been in the billing and payment space for over 25 years. Yes, you're all like, you don't look a day over 21, but I am, with a specific focus in higher education and health care. So that's where I got my roots. Actually, in 1997, I was a co-founder of a company called Infinite Solutions, and we were the first company to bring online billing payments and payment plans to higher education, 1997. That was not an easy task back then. That company grew. I sold it to Nelnet in 2006, which created Nelnet Business Solutions as a business entity, and I was the President of their higher education division through 2010. In 2003 and 2004, I was one of the original advisory members to the Payment Card Industry Data Security Standards Council or what we all call PCI DSS in this space. I helped form what was called Version 1 of the security standards at that time. Today, Flywire is a participating organization on the Security Standards Council and we were involved in the formation of Version 4.0, which was recently released. Additionally, from 2006 through 2010, I saw NACHA's Electronic Billing and Commerce Committee. So roll forward to today, and let's talk about our next-gen payments platform. So let's talk about our product and engineering team. Our mission is to grow the value of the Flywire payments and software ecosystem through delivering the best in market solutions to our clients so that they can deliver on their customers' most important and complex payments. I have the amazing honor of leading a team of over 200 FlyMates that have deep expertise in payments and the verticals that we serve. One of our core advantages is we are geographically dispersed over 5 regions. What does that mean? That means my team has over 16 hours of development as we follow the sun from Tel Aviv to Chicago. That gives us an unprecedented advantage in the market. As you heard from each of the vertical leaders up here, integrations into their ecosystems is key. This team has also developed over 80 of those integrations that allow us to have deep and rich experiences within the verticals. I want to spend a few minutes talking about our engineering core values. These bind us as a team and are our North Star, and help guide us in our decisioning process. First, I want to highlight that we embrace change. Why do we have that as a core value? Because we know the markets and our customers' needs will change in time. And as a team, we will evolve our solutions with them. We see change as an opportunity to not only grow, thrive but innovate for Flywire. We do not fear change. We seek excellence through moving quickly and iterating. We are modern in terms of our continuous integration and continuous deployment. What does that mean? We deploy our systems continuously throughout the day, gain data and improve our systems as we seek our excellence. We keep it simple. We solve today's problems but with an eye towards tomorrow. Simpler systems are easier to evolve and maintain. Really, what does that mean is we also then build everything as micro services to be reused. Think right once, use many times. And you'll see this as we get to the next slide of our core platform. We push as many micro services into our core platform as possible so that every vertical can extend them to meet the vertical specific use cases. A very important factor that gives us speed to delivery. We are customer obsessed. We realize that our customers use our software to deliver value to their clients. We put their concerns at the heart of everything we do. This team, Ben Steele. What do I mean by that? We solve very complex systems for each of the verticals. Each vertical brings its own set of unique security of challenges relative to security and compliance. We have to address HIPAA in healthcare. We have to address FERPA in education. Two distinct security requirements. You heard that the verticals, again, say integrations. We have to have integrations into enterprise resource planning systems for B2B. We have to have it in the travel and booking systems for the travel, into electronic health record systems for healthcare and student information systems in education. These deep integrations allow us to solve complex payment and workflows. So that when that traveler books that payment, they can take that trip of a lifetime because we've done everything right in the booking system. When that student makes their payment, we can release all the necessary holds so that they can register for the next semester. Those are key processes in our payment flows and workflows. Let's talk about our powerful platform. As I said before, we build everything as micro services. Right once, reuse many times. Right once, reuse many times. Let me get that across, right? Well, we drive everything we can into our core platform so that it can be surfaced to the vertical so that vertical can extend it to specific use cases. As an example, within our core platform, we have all our pricing and hedging. We expose our great global payment network that Mohit is going to talk about. All of our fraud, KYC, and all of our unique or what we call primitive payment types, such as a onetime payment, is it tokenization? Is it a recurring payment? Is it payment plan? All of these things exist in our core payment platform. Then each vertical can extend it for their specific needs. So as an example, you see up here, we have education vertical and a healthcare vertical. Both offer payment plans to their constituents. However, the management and delivery of those payment plans are very different. In education, we are time-bound. We have to drive that payment plan by the tuition due date or else, that student could get dropped or not be allowed to register. Again, the integration of the workflow. So that time -- that payment plan is extremely time-bound, and the entire system in the vertical education is geared around driving that. As you heard John talk about in healthcare, affordability is the key aspect in payment plans, not time. So that's where we leverage our personalization engine to determine and drive how are we going to get that patient to engage to pay while getting the hospital paid as quickly as possible because we don't want to delay their AR, right? These are key aspects in terms of how a core service of a payment plan from the platform is surfaced, but then we wrap the vertical-specific use cases around it. Additionally, each vertical needs its deep integration. As we have B2B, we're integrated with NetSuite to deliver that deep and rich experience that Ryan talked about. In travel, we're integrated deeply with Rezdy and Roombus for the travelers. In healthcare, you heard John mention Cerner, Epic and MEDITECH. We're deeply integrated there. And in education, we're deeply integrated with Oracle Campus Solutions, Tribal Sits and the Lucian Banner. Why are we deeply integrated? Because we're solving the complex payment workflows. So that when that student completes their payment, we can release all the necessary holds, make sure they can register for their next class. In a healthcare situation, while we're managing that payment plan over a prolonged time, we have to control the aging of that account so that the patient isn't sent off to a collection agency, right? If we break down and those deep integrations allow us to control that process and the patient financial journey or the payer financial journey regardless of the vertical we serve. Beyond us building our own deep and integrated software into specific verticals, we expose our powerful platform through our public API. One of the great ways we did that, as Sharon mentioned, is through a 529 provider. 529 payments are historically paper check based, so slow to get to the school, right, which could run into big issues if they're slow in initiating the payment themselves approaching the deadline as well as the checks never really end up where they're supposed to. So then you have people on campus running around, trying to find it and a lot of manual work of them then posting the payment to the student account. Through using our API, a census was able to digitize the 529 process, speed up the delivery of the payments to the school and through our payment network update, and our integration and verticals of education, update the student information systems in real time. Better delivery of funds for the family and payer experience, less work for the school. Win-win on both sides. Let's dig a little deeper into healthcare and our personalization engine. I said the difference between education and healthcare in terms of payment plans and in payment plans -- in healthcare, the key for payment plans is affordability. And we have a machine learning system in our personalization engine that takes -- in healthcare that takes in over 100,000 daily patient interactions, 200 data points on a patient as well as other various inputs such as demographic, financial insurance. All of this goes into our algorithms to have 2 core outputs. Those 2 core outputs are capacity to pay, what can that patient afford and what's their conversation profile to engage them through our omnichannel communication process. As patients interact with our system, our system continues to learn and evolve its model. What does this then lead to? This leads to unique payment offer experiences and engagement experiences on a per patient basis. I could have 2 patients walk out of the same hospital each with a $2,400 balance, but based on our personalization engine, we will engage them differently, not only from a communication style, but from a payment arrangement. Because we're trying to match their ability to pay while driving getting the hospital paid as quickly as possible. Additionally, as the user interacts with our system, it learns and it will adjust the payment plan. Maybe we pick up new balances through the deep integration that we have with Cerner. New account -- new balances happened from a visit. Maybe there is unfound insurance that posted. That plan will automatically readjust on the fly for the patient. I talked about our omnichannel communication and how we target communications specifically to that user wants to be engaged. As we invested heavily in that this year, we have seen the following great statistics. One, we've seen an 80% increase in people going directly to log in to e-mail -- to log in through e-mail, 80% increase in engagement. We have seen a 50% increase in patients activating payment plans through SMS or text messages. And across our clients, we have seen a 25% increase in digital payments. So what makes the Flywire platform so amazing and how do we win? One, we're modern, and we continue to invest in being modern. We will never give up on that. We are cloud-based and scalable. And if you haven't understood it yet, what do we do? Right once, we use often, right? We have our vertical-specific applications that are tailored that extend our core platform and tailored to that unique use cases within the vertical. We have deep price level integrations that handle their complex payment and workflow for the specific vertical. And lastly, we solve all of the security and compliance issues within those vertical systems through our platform. With that said, I'd like to turn it over to Mohit Kansal to talk about our proprietary payment network.

Thanks, Dave. Am I good, audio wise? Awesome. Good afternoon, everybody. It's great to be here. And seeing all of you in person after such a long time. My name is Mohit Kansal, and I'm responsible for the Global Payments function here at Flywire. I've been with the company for over 6 years and in the industry for over 15 years. I started off my career in the financial services side of things, working at banks, spending a few years in London, then in Hong Kong before I made my way to the U.S. All my work at banks and the experience in different regions, really help me understand and appreciate the nuances of working with financial institutions that has been incredibly useful in my role as the Head of Global Payments. So today, I'm going to talk to you about our unique global payments network and how it is set up in a way that helps us service our clients in a very effective way. So the core mission of the Global Payments team is to enable our customers to process complex payments in a seamless way and in full compliance with industry and regulatory standards. You'll hear me talk a lot about compliance, industry and standard side of things. It's because when our clients trust us with their money, moving their complex payment flows around the world, it is imperative that we pay a lot of attention to making sure the payments are flowing in a compliant way, especially with the global nature of our business. Some key facts about our network. Just in 2021, we moved over $13 billion through our payments network. We accept payments in over 140 currencies. We can accept payments from pretty much any single country around the world except for the sanctioned countries. If you look at all the places where we move the money from and where the money goes, that leads to thousands of combinations in terms of currency pairs and corridors. The key thing here is this $13 billion number could be 5x, 10x, 20x, and our network is set up in a way that it can easily absorb all of that volume. So what makes Flywire's network special? How are we different? How does it enable us to service our clients better than anybody else? So first and foremost, we -- our team goes around and sets up these payment nodes that you see at the bottom of the screen, right? These are connections to card acquirers, direct connection to card schemes, local bank accounts around the world, alternate payment methods and others. All of those nodes are brought together by the payments platform that David just mentioned, and all these capabilities come together in the form of an API that is further exposed to the vertical software that our clients interface with. Now the way we set up our network, we don't like to rely on aggregators that are built behind other aggregators. We like to go direct and own the network ourselves. Our network is private and is for the use of our clients only. Now because we control the funds flow, we've designed it in a way that we can configure the network the way we want, right? So these are payment nodes in for example, Europe, where we can choose whether the funds are accepted through bank A or bank B. And none of this requires any kind of development work or anything else from our customers. Because we own the network, we can move money faster and better than we would if we were built behind multiple aggregators. And last but not the least, if there is an issue with a payment, we can reach a resolution very quickly. So if we get a phone call or a payment support team gets a phone call about a payment, we know exactly where the money is and why it is, where it is. If you're built behind multiple aggregators, you can never have that visibility and you could never offer a superior client experience that you can with Flywire. So let's talk about the coverage of the network. As you can see, we cover most of the world from a payment acceptance perspective, except for the sanctioned countries. Specifically, 95% of our client volume is covered by Flywire in terms of preferred payment methods. There is 90% redundancy already built into the network. What does that mean? It means if there is a payment node that stops working for some reason, we can immediately switch to another payment node, and it requires no customer input, and they don't even know that we fixed it behind the scenes. This is a key quality of our network, and we can do this because we own the network, we can switch the rails without any customer impact. In addition, we have over 100-plus local bank accounts set up around the world. This was not easy. This has been done over 10 years by a team of experts, not just in Global Payments, but also legal, compliance, finance, tax and other teams. Each of these accounts takes a really long time to set up the right way. In some cases, it requires a global expert in banking who may be sitting in the U.S. to collaborate with the regional experts sitting in India or China or even in Latin America for that matter. All this said, we are still continuing to invest in the network. If we see an opportunity in the LatAm region or in APAC, we go and expand methods, create better experiences. In some cases, it means expanding the domestic capabilities that we have, for example, in the United Kingdom that I will talk about. Even more importantly, we've set up the network in a way that it helps us drive cost efficiencies on a regular basis. There's a lot of opportunity to be driving our transaction cost down, and that is a big area of focus from a global perspective. So what does this network enable us to do? What are a few examples of what we can do that is better than anybody else out there? So first, like I said, we own the network, we control it. We decide which nodes get the money movement from Flywire. It helps us change the configuration to offer superior client experiences and also driving cost efficiencies. The network is built to scale across geographies, verticals, transaction sizes. What that means is it's just as easy for us to move $100 payment to our network as it is to move a $100,000 payment through our network. It enables us to solve for multiple different use cases across verticals and regions. And we don't just stop there. We continue to innovate through the network. Not only do we move money, but every opportunity we get to move money in a more seamless way, in a more efficient way, we go in and add those new payment methods as they come along or make the existing ones even better. Here's a few specific examples of what the team has been able to do recently that have led to really good client experiences. So first, cross-border payment expansion. Think of it as payment acceptance expansion, expanding methods or ways to accept money. So you heard from Sharon that in education, Australia is a very important market. It's growing, and it's a key strategic market for us for that vertical. It is one of those markets that also gets a lot of volume from payers from Nepal. A lot of students from Nepal go into Australia. So as Sharon and team built the market in Australia, there was a need to expand our network to accept payments from Nepal. Our team came together with the legal compliance, finance, tax and product team, figured out the opportunity, and we built a connection to accept payments from Nepal. This wasn't easy. We were still able to do it faster than we would have if we hadn't built a core infrastructure of the network from, again, legal, compliance, payment node and a technology perspective. Similar example is from Thailand. There's an online payment method or call it a real-time payment method called PromptPay. We saw an opportunity to further enhance our network in that region. And again, with the core capabilities and the infrastructure we had, we were able to do it in a swift way. Let's talk about domestic payment expansion. So we saw an opportunity in the U.K. where our clients were looking for a great domestic payment solution. We already had 1 such solution in the U.S. So we took our technology, payment plan software and a recurring methodology that's popular. We took it to the U.K. We added U.K.-specific payment methods like Bacs, Direct Debit and others, combine those 2 things to deliver a superior domestic payment solution within that region. Again, this wasn't easy, right? This is all -- if I make it sound easy, believe it, believe me, it's not. All of this is really, really hard. It's just the basic infrastructure that helps us do it faster than others. Then there's the payout expansion, which is delivering money into certain countries. So I'll take an example of South Korea. Again, Sharon's team came to us and said, we see a huge opportunity in South Korea to be expanding our education vertical. We worked with our team, used the existing network with the existing bank partners and were able to expand payouts into that market. So network enables us to expand into different regions from a client perspective. I think we've talked a lot about Iceland, but it would be amiss if I didn't mention it. Colin and team have established that Iceland is a great market, no surprise, right? For the travel sector, there's a lot going on there. Same thing. We went to one of our existing bank sponsors, solved that market not just from a payout perspective, but also figured out how do you do the billing, which currencies do you bill in, do you need to bill in multiple currencies. And together came up with a holistic solution that is now being used in Iceland. And these are only a few examples of everything we do. There's much more happening behind the scenes, but I thought these were the ones worth highlighting. Here is another great example of how our network is built to scale. So a few years ago, we established that Brazil is of strategic priority to Flywire. We had to solve that market from a payment acceptance perspective. For those who worked in Brazil and the payments industry, you know that it's really, really hard to solve that market. And we decided to do it the right way. So we went through the hard yards of first defining the right operating model for that market, determining the tax requirements, setting up the entity and opening a local bank account. This took us a fair amount of time to do, but we wanted to solve that market, right, to set it up for scale. Recently, an opportunity came through where Pix, which is a payment method sponsored by the Central Bank in Brazil, it's a real-time payment method, that came about and has become really popular over the last couple of years. We saw an opportunity to further enhance our network. And because we have laid the foundation in a way that we can expand quickly, we were able to launch Pix as a method in a short period of time. I don't know if I said this already, this wasn't easy. This was extremely hard, all because we've done the hard work a long time ago in setting the market appropriately. Here's another great example of innovation in the network side of things. This is related to our India market. Anyone who's tried to move money out of India, first of all, congratulations if you were able to, it is really, really hard. Moving money into the market is easy, moving money out is really hard. But we've been doing that for many, many years. We've solved that problem. We help our customers move money out of India from a payments perspective. But there was an opportunity to take it a step further and be the market leader in terms of digitizing payments there. We built a direct connection to ICICI Bank, which is one of the largest private banks in the region. What that helped us do is for our mutual customers, we created a fully digital streamline experience that used to be cumbersome, required a ton of KYC documentations, and we were able to do it with ICICI with a few clicks. The KYC burden is reduced, the customers are happy and has become a very popular method for us in India. And we are not stopping there. There's more coming. And as soon as those other connections are ready, I'll be very happy to share those with you. But we've essentially laid the blueprint of how to solve a complex market. So there are 4 things I wanted to take away from this. Flywire owns the network, it's built to scale, and it allows us to be innovative, more than if we had set it up in any different way. The network is configurable for verticals, clients, geographies. So as all of our verticals expand into different regions as and when if we decide to expand into new verticals, the existing network can support it without any problems. Like I mentioned, for Brazil and India, the network enables us to have cool digital experiences in complex markets. And last but not the least, because of our scale and our innovative style, we continue to drive cost efficiencies to this market, and that's a global focus for us. And that's it. Well, thank you for your time again. I look forward to seeing you later today here. And I'll hand it over for Q&A.

[indiscernible] Sorry, I just want to make sure the microphone is on just so the people on the video can hear. Say again.

You mentioned EHR integrations and you mentioned Cerner and Epic. There's hundreds and thousands of EHR systems out there, mostly on PCs and on premise. Client servers are moving to the cloud. How are you positioned to benefit from serving a health care system that [indiscernible] on those very expensive systems [indiscernible]?

You want this one John. It's is right in your wheelhouse. Grab the mic.

Yes, great question. So the question is there's lots and lots, thousands of EHRs besides Cerner and Epic that service these different markets. And right now, our target market that we mentioned of 7,000 is the large health systems, and there's a lot fewer EHRs that are managing those hospital sites. What you're referring to is really a lot of research that we're in the middle of now actively, which are new opportunities, growth opportunities in other end markets, which we're continuing to investigate. But we have an ability, as David mentioned, it's very -- it's not easy, it's hard, right, Mohit? but much -- it's a road map to how we integrate with the EHRs. So each time we find a new one like Meditech was a new one at one point in of these inversions, it is we're setting that up and then it makes it reusable for the next provider. Does that help answer the question?

John, before you sit down. I was hoping that you could speak to the competitive landscape within healthcare. And secondly, you had alluded to an opt-in among your affiliates. And I was curious if that is a standard within the industry or if there is instances where affiliates -- you sign a deal with a chain and the affiliates are automatically in.

Yes. Great question. Just answers, okay. Yes. So I'll start with the affiliates one. So First of all, just to clarify your question, it's not a standard in the industry. It's something we partnered with Advent and Envision, 2 of the large health systems. Envision has providers, affiliate physicians that service those health systems all around the country. So we built the platform, which is usable for other health systems that want to create an opt-in platform. And Envision would be able to participate in that with other health systems because they're already opted in. So this is a network opportunity for us as well as the other health systems who want to take advantage of it. From a competitive standpoint, so we -- that is the first that has been in terms of the affiliates program that has been launched. And I know your question is broader than that in the competitive landscape. When you look at our primary competitors right now, Patientco was one that was just recently acquired by Waystar. We have VisitPay that was recently acquired by R1. And then you've got Cedar, which is a new entrant into the market, which is a new entrant to the market. And I mentioned before that how we're winning us through a lot of our growth and our proven ROI's improvement EHR integrations, et cetera. There's others, there's RevSpring, which is more of a print mail vendor that is starting to get in more to the technology side of things. But we are the only payments company that has the ability for a payment platform to drive an application that is focused on the market. And I think Sharon mentioned earlier, is one of the benefits is we're pulling in from other verticals to be able to provide innovation and services to the healthcare market, which is very unique and very appreciated by a lot of the hospitals that we serve.

Jeff Cantwell from Wells Fargo. So tremendous opportunity ahead of you and clearly like a software advantage. So I'm curious if you can kind of go back, say, over the past 12 months or so, and think about customer acquisition and your ability to attract new clients and add clients to each of the verticals, do you find that that's getting easier? Is it always the same in terms of adding top businesses, right? And I guess the question really just becomes more about, how do you see your ability to sort of accelerate the odds that you have and at the back of what you're doing right now?

Do you want that one?

So with regard to education, I see us accelerating. As most of you know, we started out as years ago with a widget doing just cross-border a wedge of that and we built a solid client base doing that. But now we're in that -- we're doing that around the globe. That will continue to happen. And as we build this client base of reputable institutions, this network effect kicks in and we start to really get a lot of opportunities. Additionally, as I mentioned, the network effect or this ecosystem of agents and payers and partners is helping us accelerate too because our reputation is really traveling around the world. In the U.S. market, we were once considered the international payment experts and really had been identified as that. And so when we launched a full comprehensive receivable where we can move all money and apply a software effect there to leverage in the market, we were competing with other providers. But we have managed to win big institutional accounts like Texas A&M and Stanford and UConn. And we're really building quite the reputation. That matters in education because as soon as you started getting flagships and you're demonstrating that you can do a lot with software, your reputation helps you accelerate. So really solid funnel. What we're seeing that's different than the past is a ton of upside opportunities in the existing clients. So the funnel is a combined mix of new opportunities. Again, I have teams globally all over the world in different regions, and they're accelerating the growth in new opportunities. And then I have a lot of relationship managers and salespeople looking to upsell in the existing client base.

Yes. The only thing I'd add to what Sharon said, is just the talent that I see these 4 leaders hiring and bringing into the organization to add to their teams from a go-to-market perspective, the collaboration that Colin mentioned with marketing and the scaling Allison has done of that team, like it's -- that gets me super excited. And I know you get a chance to see more Flywire a bit today, but I get to see that firsthand and that's yet something else in addition to the metrics we've talked about go-to-market that I get excited about.

This is Andrew Bauch from SMBC. I wanted to talk about the 1 slide that you showed which had the vectors for growth and particularly the 5 to 7x within existing clients. And I think for all of us, it's pretty easy to understand the domestic opportunity in education. But if you could speak to some of the other verticals and what kind of magnitude of upside is in those verticals within your existing clients?

I can start, and I'll hand back to our group over here. We probably should have them up here and us over there.

Based on the questions.

But let me start with John's world and then we can talk through some of the others as well. So one of the things that's quite amazing, you saw the degree of penetration we have in the market. We're still in the early stages, but what we've been describing in each of our calls is the expansion opportunities that we have within those. So as you think about healthcare, a standard pattern, maybe you start in only a certain portion of that healthcare network that given Banner, Advent, whoever it is. But it may be that you only start with a certain part of the service experience, right? You only start at the beginning with the post-service billing, but we are able to then expand to do point of service and pre-service as well. So there's these dimensions of product even in what we do straightforward today under the billing experience, there's the straightforward expansion of, hey, we started in North, but we didn't get this out. We started in the physician group, but we didn't get the hospitals or vice versa. All of those are sort of very standard land-and-expand type dimensions for how Flywire works. So healthcare, we view each of our clients as having this sort of road map of opportunity, upsell opportunity that we keep pursuing. As I think about travel, travel is really about this network opportunity that we have. I mean there's a story we were telling early on in our public life around Hilton Grand Vacations, right? So Hilton Grand Vacations was a client of ours, started off where we were helping them just with a part of the footprint in Europe, sort of a very specific solution. They loved what we were doing for them and they gave us the opportunity to go pitch the business globally. So I think with just a small exception of part of the APAC region, we've now got this business globally for Hilton Grand Vacation, huge revenue multiplier opportunity for us. And we see all kinds of opportunities like that. I'll use that one to sort of move adjacent over the B2B side, the stories come one after another in B2B where, hey, like we really like the Flywire story. We're going to give this a try. We're going to start it with Latin America or we're even going to give you 1 or 2 countries in Latin America and sort of prove to us that this works the way you say it works. And very quickly, they have this reaction that says, okay, that was great. Now let's go, we'll give you all of Latin America, we'll go global. You heard the basin story today. We'll give you domestic. Obviously, we're doing high stake stuff for our clients, like they're not necessarily going to hand over the whole enterprise on day 1. But what we have been very good at is go in, do a great job and continue to expand from there.

It's Darrin from Wolfe. I think for Sharon, I just want to follow up on the education side, a common question we get is the domestic differentiation you guys can provide because the land and expand is great, and we've seen evidence of it in the data, but as you said, I mean, the international side is really how you grew up. And so I'm curious to understand from your perspective, what you hear from the universities that allows you to win that business more so. I also want to know a little bit more on -- you talked about 7% of educational institutions that you're in now. What do you want -- what do you think that will be in 5 years? What percent of the market? And then just a quick follow-up after you're done on talent, if you don't mind.

Differentiator. Hello?

I'm going to say, Sharon and David on this one because David has a view of the technology as well.

Yes. I definitely want my, what we call, my wonder twin. We always do the wonder twin. I think he looks better in that purple spandex outfit than I do, but -- so the differentiators are real in software, and I say wonder twin here because when we started Flywire and I'm traveling around the world and talking to institutions, when you deliver really great service and your teams listen and deliver what they say they're going to do, they ask for more, how can you help us do this and that. And we landed in wanting to expand and do domestic because our clients wanted us to. And then when I would travel around the world and we would say how wonderful we could make the experience for the international student [indiscernible] what about other students, right? So it made sense to go there. So what are the differentiators? It is really the nimble software that we have. And you might say, hey, there's payment plans out there. I know I have one with the institution I have, but to have the flexibility and the ability to communicate out to institutions and to react to things that are happening in the student information system, that is the big differentiator for us. When institutions deploy our software, what they're seeing is they get better results, they get more payment plan enrollments. Why? Because we use our communication hub to look in the system and cohort communicate out to students. And then we can also help with a student that may show up at the office and say that, "Hey, I'm in trouble. I need a little extra time on my payment plan, we can customize and streamline that. So the other thing to point out is, Dave is -- built the founding code in education. So I always say, oh, to the old code, but we have the new code and it's far greater than anything out there.

A few things I'll add is, one, we are mobile first in all of our designs. And that's key compared to where our competition has come from. They come from the website historically and trying to migrate there. And so if you look at the interaction of the number of users on our system, over 50% are interacting with us mobile, right? So that is a significant advantage. That is how we design everything first and foremost. As Sharon also indicated, we want to meet and engage to students where they -- and families, where they want to be met at. So our communication hub pulls those students in and drives them differently. One of my favorite stories is one of our customers that went live on the first day, literally called us and said we think your system is broken because we're not getting calls or e-mails about what's going on. And it was because it was so clear and concise in how we deliver the information and how we engage the students. Additionally, we have some additional features that we addressed in higher education that no one was addressing. So past due receivables is a growing problem in education as the gap between financial aid and tuition continues to grow. So you're starting to see schools struggle with students dropping out and having past due balances. They want to have an efficient way of collecting on them rather than throwing them to a collection agency and creating a bad experience. And we have a product that helps with that past due receivables. And what that also does then is that increases reenrollment. A very expensive cost to an institution is getting that seat in the butt. So if you can now reengage that kid that had a potential financial problem, get them on a payment schedule on the schools as say, we'll let you back in, that's a significant cost savings to the school. That -- those few things help differentiate us along with their deep integration into the student information system.

Yes. Darrin, the one thing I'd just add is, remember, international students, we didn't -- international payment problems we didn't create, existed before us, right? We solved it. When it comes to 529, it's a problem for years, no one chose to solve it. Overdue receivables and education, problem for years, incumbents didn't chose to solve it, right? So when you look at some of these things, right, I think we've built a track record of being able to understand the problem with people, solve it with technology. And I think the market is recognizing that, and I think that's why things are kind of coming in our direction.

That's really helpful. I mean we didn't -- one thing you didn't mention is what you think that 7% can get. I don't know if that was intentional...

They've been coached well.

I'll leave that to Mike Ellis. And just a reminder, you can ask questions on the webcast.

Ashwin Shirvaikar from Citi. So a good presentation so far. Thank you very much. I do remember, build once repeat often, and it's not easy. But questions about payment choice versus exclusivity because the question of penetration often comes to us with -- from investors. Could you talk about what it might take to have more clients head towards exclusivity where Flywire [indiscernible] to pay? And is that a real opportunity to do that? If you could talk about that.

Yes. I mean we're -- I'd start by saying that for a great many of the clients we serve today, we already have an exclusive relationship. I mean our history was growing up with contract terms that included an exclusivity provision, but there's a mix there are some that are and some that aren't. I think the dynamic that you're pointing to, Ashwin, is our ability to go to clients and become exclusive for the domestic and the international sort of this 1 door that Sharon referred to earlier. What we're finding is that we have a very compelling proposition for the school to push that way. That still leaves payment choice to the student. They can pay domestic, they can pay card, they can pay alternate methods. All of that is still sort of to the students choice, and we tend not to want to steer that. We want the student and the family to pay they want to pay, but we will make it very compelling for the school. If they choose to work with us everything shows up in 1 dashboard. Every refund gets initiated via 1 user interface that's provided by us. The customer service gets provided by us, all of the reporting, the single technology integration, the single settlement every day. the reconciling to the penny every day. So it's a very compelling proposition to the schools. And what we're seeing, especially in our international markets, it's a proposition that sells on day 1. Here in the U.S. where there's sort of a more established market of capabilities and providers, we often have to sort of start 1 place and do the land and expand. What we see in Europe and emerging markets is that very often they look at what we have and it's so fundamentally different and better than what exists there that they'll say what they want from us from the very beginning is sort of that exclusive 1 door type approach. Sharon, you're welcome to add if there's anything more you want to throw in there.

The markets themselves, we saw for the challenges that they have. You're right, the U.S. is a little more complex, a little more advanced. At the same time, we're winning because of the technology that we have and we -- and also the reputation that we built.

And as those stories get out there more and more, the Texas A&M, the Stanford, the UConn, right? Those are getting recognized, right? And...

Yes. And I think the other thing we did mention is that -- well, I think of them, getting into it now is that we have a modular-based approach as well. So figuring out how to get in there and show -- let our institutions drive the car so to speak, with maybe a pass-through receivable software function. We can do these sort of things and then grow the business into a full comprehensive receivable.

Yes, sometimes we don't start from getting it all, right? We get...

Right. Exactly.

Deliver a component.

Mohit talked about the opportunity to reduce payment costs. Can you just talk about the initiatives and where you are on that journey?

Do you want it? You have a microphone?

Is the question around where can we drive cost efficiencies in the network?

Correct...

Yes, for sure. So there's global opportunity to do that for 2 reasons. One, our scale and the fact that we control the network, right? We can negotiate better prices. We can have 2 partners that we can switch from A to B in a matter of seconds, right? That's one. So with scale, we continue to see reduced costs across the board. The second is with the innovation that we drive, we're also seeing more opportunity there where we do seamless payment experiences. I mentioned a couple of examples from Brazil and India. Some of those are digital and online experiences that are cheaper than what we had before. So not only did we innovate in those areas, but we also cut down the cost. So we continue to drive that every single person in my team who's managing partners and the network has a mandate to continue driving cost down and there's a lot of opportunity there.

Yes. I mean the 1 thing I'd probably add to that is just when you think of a lot of the payment infrastructure we're leveraging, it isn't necessarily historically set up for all the data we have about the transaction, right? If you think of a $30,000, $50,000 payment coming cross-border, we know the purpose, we know the payer details, we know the purpose, we see the invoice. We have a lot derisking that transaction, right? If you think of card infrastructure, as an example, you've got issuing banks in the middle. They don't really know the risk element. They don't know a lot of those elements. You get the card schemes. You are great partner of ours, you get the acquirers. They all risk hedge all their transactional elements, right? And so those are all great partners for us. And those conversations are also part of what Mohit and his team own of how do you share that information so they realize how low risk transactions are through Flywire and that has huge implications for acceptance, driving things to 1 method or another. You also shared ICICI. That online bank method, right? And I think we all would hope that online bank payments get to a point better and there's a lot of companies out there trying to do them. But shift from more off-line or manual bank payment methods to more online methods, better user experience, that correlates to great cost savings for us. So the more of that, that happens, the more you'll see that large dollar transaction going over those easy rails, and I think that will help the cost situation, too.

And last question is from Will.

Will Nance, Goldman Sachs. I wanted to ask on some of the TAM breakouts that you guys showed. When I look at all that, B2B is something like 90% of that TAM. Obviously, it's a huge market and there's a lot of capital chasing it. Can you kind of talk about what you think are the key competitive advantages in that market for Flywire and then when you think about just the massive size of that market, how do you prioritize what parts of that market to go after?

Sure. I'll start, and I'm sure Ryan will jump in. I think first, that AR versus AP, right? That is a huge differentiator for us, right? It is -- we believe that invoice is how you should interact and communicate with that part of the conversation. I also think one of the items that Ryan spoke to around direct invoicing, think of the invoicing experience that happens, right? If you're sending out an invoice cross-border, you may only have 1 currency to send on that invoice, and you're sending a SWIFT code and international wire account number effectively for someone to pay you. Imagine what happens when you send them local details or you send them a pay button that has an experience in which they can pick the currency and the method and pay in whatever currency they want, right? That fundamentally, in our opinion, changes the entire experience. I think where we have a leg up is that -- Mohit had said it, it is hard to build that network. So there are companies that are out there that either try and find ways to partner to enable a card acquirer in B2B payments, but it doesn't bring all the methods, right? It also doesn't bring it all into 1 experience. Oftentimes, the companies they're embedding aren't truly global, right, aren't used to processing massive transaction sizes that have regulatory differences country after country. And I think those are a few things that differentiate us, but...

Yes. Just a couple of things to add to that. So a couple of things to add to that as well, right in line with what Michael shared already. If you think about the way teams are solving for this today, it's through multiple partners. It's a card acquirer. It's their bank. It maybe is an alternative payment method provider in market. We obviously take all of that off of their plate with not just the network but the operation function we have, and we do that through software. So if you think about that competitive advantage, it's not a combination of all these things that somebody has to go solve for. We put our software in place, and it takes care of all of that pain point around it for them, and they're seeing that through the front end of what we provide from a technology perspective. So it's a really unique way to solve the market compared to the way it's being done today.

There's 1 story that I'll tell just -- it's a short one, but it sort of captures the essence of like the hard problem that Ryan is describing that we solve. If you're paying for 1 of our clients, you'll see a list of invoices. It's very straightforward for everybody on both sides, if you pay 1 payment against 1 invoice. But as soon as you want to start grouping invoices and make a payment against 3 of them, the old-fashioned way of doing this means you're going to send a bunch of money. And when it lands on the other end, no one's going to know exactly what to do with it, right? The alternative is you do it via Flywire, you checked which 3 invoices you were paying. It will reconcile to the penny, automatically update NetSuite and that -- those 3 invoices are basically closed and will never be touched manually again. So the old world versus the new world is really dramatically different. And that's why when we talk about reasons why banks, Bank of America, for example, working with us, is because they see that value. Like that is a very clear and distinctive value proposition that is sort of what digitization and B2B will be about. Obviously, as we keep going, it won't always be NetSuite. It's NetSuite, it's already Salesforce. It's already some of these other platforms and that functionality gets deeper and deeper that we can do around the invoices.

All right. And we'll start again at 3:20.

Awesome, bunch of Fly mates around, socialize, say hello. Thank you. [Break]

President and COO of the company. Just very, very quickly by way of introduction. I have, I guess, about been over 2.5 years here at Flywire, been over 20 years in billing, payments and technology after starting my career in -- as a corporate transactional attorney and then a bunch of time at McKinsey. I guess most notably, last 10 years before joining Flywire, I was at Apple. I was part of the team that created and launched Apple Pay, helped take it around the world, launching it in countries, Canada, Latin America, Mexico, Brazil as well as part of the team that launched it in China and then more recently worked on Apple Card and was part of the team that owned it and launched Apple Card. So today, it will be Uday and I taking you through the next section. We're going to talk a bit about the investment strategy that we have, and we'll go ahead and cover really 3 things over the next little bit here. So we've divided our comments into 3 sections -- sorry, let me grab this.

Rob, is your mic okay?

You tell me. Does that sound okay? Okay. I'll try not to do that. So we'll divide our comments over the next little bit into really 3 sections here. So first, talking a bit about our track record. So really, this is a look back over the years on the work that we've done to create the Flywire Advantage and the benefits that the company gets from it and the foundation that it provides for going forward. We'll then slow down a little bit and talk a bit more about the short-term investments. That's the work that we're doing right now and the investments that we're making in growing the business. And then the third piece will be around our longer-term investments. So that's really focusing in on our vision and our position in the industry and the opportunities that, that creates for us to expand the Flywire Advantage. So first, a quick nod to all the work that was done to get us to where we are today. So Mike and the team have talked a little bit about that combination of platform, network and software. The 1 comment that wasn't made so far, that's really about the uniqueness of Flywire and where that Flywire Advantage comes from is it's about the combination of those 3 working together, right? There are other companies out there that will talk about software or will talk about a network but there aren't other companies that will talk about the way they have combined the 3 to solve problems in the verticals and the industries that we serve. So that uniqueness is really the key to the Flywire Advantage, it's the key to what we've done in the past, and it will be sort of foundational for what I'll talk about going forward here. So the key thing about our past investments is hopefully, as you see what we talk about that we've done thus far, you'll see our track record of a return on investment, right? So we have been good stewards of capital, good stewards of resource, and we've made good investments that have been the foundation for building this business. And we really talk about it in the 3 ways that you see here. So first of all, talking about our generation -- next-generation payment platform, all the work we did to create a core payment service platform that can support the needs of our clients. So everything there from hedging a transaction, our recurring transaction, our card-based transaction, alternate payment transaction, whatever it may be, all of that being built into the core is foundational for what we do. Right away, though, we made it way harder. We made it way harder than what most people do because we made it both domestic and cross-border. And so right away, we added a degree of complexity that was part of our differentiation and our competitive moat. But the key thing in all of this was the outcome, right? The outcome has been our success in growing clients, that NRR that we've talked about ever since our IPO process, that 123% 3-year average, last year, 141% reported NRR, all built on the foundational strengths of the company. Next thing is that global payment network that you heard Mohit talk a bit about. I won't repeat the points he made, but just emphasizing the complexity that comes from being much more than just cards, card, bank transfer, alternate payment, global, regional and doing all of that where we have redundancy, we have coverage across payment types and geographies, and we do all of that in a regulatory compliant manner. And that's how we moved to $13 billion, the thousands of corridors and the hundreds of currencies. And finally, the piece with vertical-specific software, that's where we've pleased the 2,700-plus clients that we've got through the ecosystem integrations and the software that serves their vertical needs. So that's the past. What I'd like to do now is slow down a little bit and talk a bit about what we're doing today to drive global scale. So I'll focus a bit more than you've heard thus far today around the go-to-market investments that we're making as well as the geo expansion efforts that we have underway. All of this tying back to our goals, penetrate the TAMs, win more accounts and scale the business. So some numbers that I think you'll all appreciate. First and foremost, we're investing significantly in go-to-market to help attack the opportunities that we see in front of us and the very significant TAMs that you've heard us talk about. So first and foremost, a 50% increase in our sales and relationship management, that's really going to be across the globe and across the verticals. So we have these incredible opportunities that I'll try to illustrate with just 1 example here. We have these great accounts and great opportunities that you've heard us describe in Latin America. Until recently, we only had 1 person there. We're now up to having 5 people there and yet there's this opportunity across the countries, across the region and across the verticals that we've described for you. We have an incredible runway of opportunity to continue to expand that team to serve Latin America. And as we move around the world, there's significant other sort of territory that again, we have hardly begun to cover with a properly resourced sales team. So we see this as an incredible opportunity to continue to pursue the TAMs that are in front of us. We're also investing in that go-to-market to make the teams more effective, right? So 1 aspect of this is increasing our delivery capacity. So we've gone from a place where we were already working very hard to please clients to realizing we can do even more for them by increasing the resources in this team. One stat to just give you a sense for the work that we're able to do by investing in these resources, we get our travel clients live in less than 2 weeks on average. So obviously, there are some that are more complex, some that will take longer. But on average, we can get a travel client live in 2 weeks, and they're producing revenue for the company. Third piece here is around investing in digital acquisition channels. So again, just to give you a story for how Flywire can take advantage of opportunities in our markets. I'll tell you 2 quick stories of 2 partners of ours. One is the ATTA, so that's the Adventure Travel and Trade Association, a great partner of ours. We've partnered with them around a number of initiatives serving this part of the travel ecosystem. So that's the Adventure Travel Trade Association, a great partner of ours. We've partnered with them around a number of initiatives serving this part of the travel ecosystem. And that partnership has yielded for us almost 100 opportunities that we have in our pipeline out of just that one partnership. A second similar one is out of the ARDA, the American Resort Development Association, again another trade association that works with a potential client set of ours. That association relationship of ours has developed millions of dollars of pipeline for us. So another opportunity that we view as a great partnership and a great way of very effectively allocating resources to marketing to drive activity for our business. And all of it is working really very well. Like it's translating into great strength and great growth in our pipeline. So most important number here probably is just the general increase in pipeline, a 2x increase in pipeline build year-over-year, measuring this year against last year. And so we have invested in resources. We have grown that sales team. We've also done some of the, what I consider, good marketing activities that we've just described. And with that, we're seeing a great return in terms of pipeline build. And you saw that in our most recent numbers, where we announced a very successful quarter of new client signs. We're also investing in the resources of making those sales efforts more effective. And one of the things we've seen is that we've been able to improve the ramp time for new sales reps by focusing on training, focusing on best practices and getting them up to speed. That's also translating into a significant improvement in win rate. So part of what we're doing here is making sure that as we scale these teams, as we add folks in new geographies, we're doing it in ways where those people will be effective very quickly. And a final measure of our success in terms of that go-to-market and the pipeline build, we've described for you all along that we're a global company, and we believe we present a unique opportunity to pursue global expansion. We're the ones really doing it. And with that, actually, over half of the opportunities that we have in that pipeline are outside the United States. So a true global opportunity to expand our business. And just to go even a little bit deeper in this, just to give you a sense for how rich some of these opportunities are. We like to talk about these in terms of 3 different types of markets that we pursue. We've got our established geographies, obviously, U.S., Canada, U.K. We've got these growth geographies. You can see the flags there. As well as seed geographies. If you look across all of them, we've really just barely started to penetrate any of these geographies to any meaningful extent. But they're huge, right? If you look at the top row there, those 3 countries represent $350 billion worth of education TAM for us to pursue. If you look at each of those countries alone, they're over $25 billion just in the adventure travel component of their TAM. And if you look at U.S. health care, as John described earlier, over a $500 billion TAM for us to pursue inside the health care business. So lots of opportunity there, and very specific investments that we will make to be able to pursue that opportunity. Things like BACS, it's something we need to have for the U.K. and to be able to fully serve that market, especially across B2B, but that's an investment that we'll make and is now becoming available to our network. If you think about the growth geographies, again, huge opportunities. Japan has over a $350 billion tourism industry, over $38 billion of TAM just associated with adventure travel, over $40 billion associated with education just in Japan. Similar statistics available across each of these countries. Fantastic opportunities in Australia, in Switzerland, $17 billion in adventure travel, $10 billion in TAM for education. All of these represent opportunities where we're just at the beginning, and these investments we're making are to make sure that the rails do what they need to do and that we've got sales resources that are available to tackle those opportunities. And then, of course, there's the Seed geographies. You see examples like Germany there. We've just won a meaningful B2B account in Germany, an opportunity to take B2B beyond our focus in the U.S. with a neat opportunity in Germany. We'll talk about another example in Mexico coming up in just a moment here, where we've won a really interesting set of lighthouse accounts in education, and that will be the basis for our expansion using the other verticals inside Mexico. So really great opportunities there, investments that we will continue to make to make sure that the rails are there and the team is there to support it, but really huge opportunities for us. And it's not just about global expansion. I wanted to, again, give you a sense for what we're doing, give you a sense for the opportunities that we see in key markets. So starting with a case study about India. India is already a very significant market for us. It's one of the major markets in our education business, but we saw the opportunity to take it to the next level. So whereas we started with just making sure we had payment rails that worked, we've now moved forward with a much more comprehensive strategy for how we're going to tackle that market. So think about the opportunities to go deep in bank relationships. ICICI was the first of those kinds of deeper bank relationships, but we're continuing to invest in that. We see a very vibrant agent landscape operating inside India. And so we've expanded our team that is servicing and attracting those agents to work on our platform. We've created more localized marketing. We've launched new products, which we'll talk about in a second. We've made very targeted investments to make sure that we provide the absolute best experience for Indian payers. And then finally, we created a VIP sort of outreach-type program specific to the India market because of the opportunity that, that represents for us. So India isn't the only place where we have this opportunity, but this is sort of the template that we can use to roll out with to be able to have a really comprehensive solution in key markets, and our expectation is we'll do this in more places going forward. With that, let me invite Uday to come up here and talk a little bit more about some other aspects of global expansion as well as our channel partnerships.

Thanks, Rob. So by way of background, for those I haven't had the opportunity to meet yet, I'm Uday Seth. I run Strategy, Corp Dev and Business Operations at Flywire. I've been at the company now for about 5 years. And by way of background, started my career at Merrill Lynch in Investment Banking, several years on the banking side, several years in private equity after. And then prior to Flywire, was at PayPal on their corp dev team. So Rob talked a little bit about how we've leveraged sort of an organic investment to accelerate our geographic footprint. I'm going to talk to you a little bit about how we've leveraged M&A to do the same. So to contextualize where we were in the U.K. U.K. is a huge market for us in terms of potential opportunity. Let me share a few stats. One, there are 600,000 international students in the U.K. It is the third largest destination for international students. The U.K. government had a mandate to have 600,000 students by the end of 2030. The U.K. hit that mark by 2022, and there's potential for it to supersede the U.S. in terms of overall opportunity in the next several years. The second, there's a $30 billion domestic and cross-border opportunity just in education in the U.K. And then the third, the market in the U.K. is sort of ripe for sort of this consolidation between payments and software coming together. And we ran up against WPM for the first few years of being in the U.K. market, and they had an incredible asset. They had fantastic payment software. They had the trust of over 130 higher ed institutions. And we came to the conclusion that pairing their software with our payment rails is going to help accelerate our vision to what we can do in the United Kingdom. We had the opportunity to consummate a transaction in December, and we're extremely encouraged by the way the integration is going. We've signed and been able to cross-sell double-digit number of clients of WPMs and with a glide path to more. We're confident that it's going to be adding substantial growth to our U.K. business in 2023 and beyond. And in the next couple of weeks, we're going to have a joint solution that's ready to go live with the first few clients. More than anything, regional and geographic expertise really matters. We've been in the U.K. market for 6 years. WPM was the pioneer. They have been in the market for 20 years. All the regional nuances of legislation, of the way universities interact, of specific trends really matters, and having that expertise in-house is going to go a long way for us. You can see some of the feedback from clients so far that we've gotten. "we really need to move to Flywire ASAP. I can see the value of having a single supplier for payments." WPM and Flywire helped to actualize this, and we're super excited about the years ahead. So Rob also spoke about our geographic investment and our go-to-market investment. Those are the ways that we're going to sort of capitalize on our Flywire advantage. I'm going to talk a little bit about how we're going to deepen the moat and expand our Flywire advantage even more. So you heard from Sharon and team that we spend a lot of time bending steel for our clients. We integrate into some of these titans of industries. Think of the Epics, the Cerners, the Ellucians, those industries and those platforms that are, in fact, the central nervous system for our clients, we are bending steel to make it happen for our clients. We've got over 80 ecosystem integrations. And for the road map for the rest of this year, we have another dozen net new integrations and over a dozen enhancements and optimizations across these platforms. This is the hard work. This is the reason why our clients trust us. This is the reason why our clients don't leave us. I'm going to talk through a couple of examples of how this is manifested in accelerating our flywheel. So Cerner. So we spoke a little bit about Cerner in the beginning. But just to recontextualize it, Cerner is the second largest HCIT platform in the United States. It is the lifeblood for hospitals across the United States. We first started running into Cerner when we integrated next to them for several blue-chip clients of ours. We built trust with Cerner. We knew Cerner like the back of our hand. We earned the right to deeply integrate with them beyond just single sign-on but on to real-time payment updates and more deeply within their engagement tools. Now with Cerner, we're the partner of choice. You heard from John a little bit in terms of us being the preferred vendor of choice within Cerner's consumer framework. We also received an award last year for collaboration within Cerner's ecosystem. The other aspect of the Cerner relationship, too, is that having this sort of deeply embedded integration and partnership with Cerner not only accelerates sales cycles, but also accelerates integration and implementation time once we've sold to a client. Next, just to tie the bow on Bank of America because Ryan spoke a little bit about it. But we first started partnering with Bank of America at specific joint accounts. So they're -- Bank of America was the bank and Treasury Bank of choice for many universities in the U.S. Bank of America saw that we were depositing millions and millions of dollars into Bank of America accounts, and they saw just how satisfied clients were. BofA seemed fit now to put a goal on incentive around them cross-selling our solution, not just in education, but across all our verticals and across geographies as well. So particularly excited about what we can be doing with Bank of America. So to wrap a bow on the investment -- in the short-term investment section, we've talked about go-to-market. We've talked about geo expansion. We've talked about channel partners plugging in more into ecosystems. Rob is going to bring all 3 of these to life with 3 case studies.

If you haven't noticed this already, you'll certainly know that one of the things I love doing most is getting to talk about the clients. That's to me where sort of the whole business comes to life. And just this morning, I went and checked out the website for Go2Africa just to make sure I was current on everything. A truly fantastic website. It will make you want to go do a trip to Africa. They became a client of ours very recently, and this is one of those examples that perfectly represents why we're doing the investments that we're doing in expanding our capabilities as a company. So the reason why Go2Africa ultimately saw fit to work with Flywire was that what they could get from their domestic local provider didn't really work for them, right? As you can imagine, the vast majority of their visitors are coming from around the world and they needed a global footprint of capabilities to serve them. So what we were able to do with the kinds of investments we're making in the team and the network is we were able to confirm that we could in a legally tax-compliant, cost-effective way deliver payments in South African rand to a South African client, right? So up until the point of doing that kind of work, we would not have been able to say that we could take on a client in that geography with that level of service. So Go2Africa, great client. All of these that we have up here are certainly expected to be 6 figure, if not bigger, clients for the company. UAG, a university in Guadalajara, is another example where we've been able to go do something that we wouldn't have taken on just a year or 2 ago. And that is the opportunity to provide both domestic and cross-border payment for a school domestically inside Mexico. So what we're going to be doing for them will include both that domestic and cross-border, very significant opportunity to bring to bear the great software capabilities of Flywire. And finally, to illustrate sort of the effectiveness of our investments in technology and channels, we did the relationship and built the relationship with YayPay, and they saw the opportunity for us to provide a very meaningful piece of help to MongoDB. MongoDB, like the others we've talked about today, had a challenge collecting from their global footprint of clients. And what we were able to bring to bear was our global payment network in a way that lets MongoDB get paid more effectively through their YayPay integration with the benefit of Flywire. So those are great client examples. That's the investment that we've been making. Hopefully, what you left that section with is a view that these investments we're making are targeted, they're effective. We have a very high degree of confidence that we can go and continue to expand our business, all part of building a very big business with what we do today. At the same time, what we'd like to share with you now is a little bit about what we see as next phases of expanding that Flywire Advantage and what we look forward to going forward. So just as a quick refresher in terms of what we do today. Obviously, we've built a very big business on the back of A/R. We are great at delivering and solving for the complexities in accounts receivable. It's big, it's complicated and there's a lot that we intend to continue to do there. But as we spend time in our verticals, what we see is that there's a lot going on. There's a lot of complexity in these verticals that, in fact, represents opportunities for us. So what you see in the slide, there's a bit going on here. But what we're trying to illustrate is that all of these ecosystems have a rather similar structure. There's a lot going on and a lot of opportunity to take advantage of network effects that happen inside each of these businesses. So whether you talk about education and there's this set of flows and interactions that happens between agents and schools and payers or students, or whether you look in travel and you see that there's DMCs or suppliers, there's payers and there's agents. There are flows of money and flows of paper and essentially complexity inside these ecosystems that today represents incredible inefficiency, where our belief is that our software can help drive value in payments and help drive for solutions. So what we'd like to talk about now is a little bit more about 3 distinct areas where we see opportunity for Flywire going forward as we try to expand our ability and capability to deliver for these ecosystems. So I'm going to talk first about strategic payables, distinct from payables. We'll talk about what we view as the payables opportunity. We'll talk about nonclient receivables, and then we'll talk a bit about our new payer services. So that first opportunity around strategic payables. Just to be clear, we are not going after the generic payables opportunity, right? This is not about the ability to pay their staples bill for companies around the United States or around the world. What we see is an opportunity in strategic payables where that payable is related to a receivable flow. In the same way on that previous chart, we talked about the relationship that exists between the agent, the student and the school and those multiple flows, we believe that, that payable is the distinct opportunity for us. So it's in our vertical. It's high stakes, high value. It leverages the structure of our network. Even though, in this case, the money may move in a different direction, it is still ultimately leveraging the rails, partnerships and abilities that we have as a company. And we believe we have a path to enter and win in this space. And the foundation for that path is really around the fact that our software is already the trusted software in these institutions. We are already the ones providing capabilities in and around these transactions. And with that is this opportunity for us to leverage the Flywire Advantage and pursue those payables opportunities. These also represent some pretty big opportunities. So I'll focus in on the opportunity in 3 of our verticals, starting first with education. The -- as you've heard from some of the points made by Sharon and others earlier, there is this very big agent education market, right? It's 1 million-plus students. They come from many parts of the world, going to many parts of the world, and there's a whole financial ecosystem around those -- around them. What we see is an over $10 billion TAM associated just with helping solve the problem associated with these commission payments and the software that will surround them. So what we're looking forward to is the opportunity to provide more of these kinds of strategic payables, be they commission payments, refund payments and other associated payments that are part of this ecosystem solution. When you look at it in travel, it looks very similar, right? If you look in travel, you'll see DMCs, you'll see payers, you'll see host agencies, you'll see suppliers. You probably have added a fourth dimension on this one. There's a lot of money moving around in each of these payments. And what we hear very consistently from these travel providers is, "It's great that you help me get this money, but I also need to help distribute this money. I need to get it to the right people who are part of this transaction. I need to keep my piece for myself. I need to distribute the pieces that belong to others out to those folks." And so as we go into this strategic payable, we're leveraging this ecosystem that you heard Colin talk about earlier, where the agencies are introducing us to their DMCs. The DMCs are introducing us to their agencies and their suppliers. All of them are now revolving around this Flywire ecosystem, and we're going to help the money move in both directions going forward. Third of these, not surprisingly similar structured, is around B2B, and we hear a very similar story. In fact, we've been asked by multiple of our B2B clients already, "Can you help me with payables?' So it's a very similar story line. It's great that you're helping me get paid. But out of this payment, I now need to pay 3 or 4 people that are part of the delivery solution that we're trying to deliver here on behalf of the original buyer. And so we believe the same payables infrastructure that we will focus first in education and travel will also be entirely relevant in the B2B space. Second opportunity that we'd like to talk about here sort of extends off of these payables, and we call it nonclient receivables. So if you think about what Flywire has done to date, we've been very focused on helping payers pay our clients, meaning that client had to be under contract with Flywire for us to move the money to them. What we realized was that for a great many, for example, of the agents that we're serving, that means we can only pay a very small percentage of the schools that they might seek to pay, right? If our penetration is 5% or less of the global landscape, those agents have a lot of payments they want to make out to other destinations. So what we've developed is the ability now to be able to fund those payments to nonclient schools of ours. And what we've learned is that that's not only a big revenue opportunity for us to move that money, but it's also an incredible client acquisition opportunity for us because what we've been seeing is when you get that agent and the agent says to the school, "Look, it'd be way easier if you just use Flywire. I've sent 10 payments to you through Flywire. Why don't you just sign up with Flywire so that you can get the benefit of the platform?" That's the kind of activity that we're starting to see by having enabled this nonclient receivable. Another example of a nonclient receivable that Sharon referred to earlier was around Ascensus. And the thing that we're excited about Ascensus is, obviously, it's an enormous market, right, $400 billion of TAM associated with the 529 plans. Huge amount of payout every single year. But what it creates for Flywire is an opportunity not just to have a revenue model around distributing that money, but also an opportunity to have a conversation with just about every school there is in the United States, right? So at the point where we're delivering money on behalf of a whole series of state-sponsored plans on behalf of a whole bunch of the partners that help power that ecosystem, it's a chance for Flywire to get to have a very meaningful conversation with each of these schools. So we're very excited about this opportunity in education. And as we build out these capabilities, we'll be looking for similar use cases in other places. What you hopefully see from this again is that it's a very targeted investment in terms of a capability that should have a very clear payoff for us. Third and finally is to talk a little bit about the opportunity for us in terms of payer services. So we think we've got an incredible opportunity to do more for payers. First of all, our payer audience is a pretty darn desirable one, right? In terms of the demographics and the quantity of payers that we service, it's a very attractive audience. We think we have a way to work with that audience that's way more efficient than really any other solution that would be out there in the sense that we are this B2B2C play when we're talking to payers, right? We don't go market and acquire payers. We work with our given client institution, and their payers come to us. And with that, we believe we have a very attractive distribution channel for being able to do value-added services on behalf of payers. So just to put a little bit more color and flavor around the quality of those relationships. We have a super high payer, NPS of 75. We see payers from a whole bunch of countries, 1.2 million of them just in 2021. And a great set of client satisfaction statistics that you can see there. But the real idea here is that if we can do more with these payers, we can increase the lifetime value of those payers very meaningfully to Flywire. And so we've got some very specific ideas that we're working towards here. Some -- one that we'll share with you today in pilot and others that are really still in the evaluation stage. And that pilot is around living expenses for international students. And so we have enabled a pilot program to enable moving not just tuition money, not just the accommodation money, but now also able to move student living expense dollars as well on behalf of clients. It's really the first of multiple potential examples of where we would provide additional value-added services to those payers to increase both their satisfaction, set them up well for the adventures they're about to go on as well as increase the LTV to us. And so just to give you a sense for these, in education, there's another concept called a GIC or blocked account. It's the kind of account that you have to establish in a country before you're allowed to travel to that country under the rules of that country. So that's an example in education. There's lots of examples around insurance. We're very interested in the opportunity to provide supplemental insurance to people as part of either their travel or education experiences. And there's a whole set of ideas around health care as well where affordability-type solutions could be part of what we would bring forward in the future. So lots of opportunity for us working with payers. If you add this all back up in terms of the Flywire Advantage, we think there's great opportunities, of course, in our core. Hopefully, the first 2 topics we covered in terms of the investment in go-to-market, the investment in building out the Flywire Advantage, hopefully, you saw in that an incredible runway for the company. And with this, some additional new market opportunities for us going forward. Thanks. And I think now Gary -- I think Gary is up next to talk a little bit about the Flywire culture.

So hello, everyone, and welcome. I'm Gary Cunningham. I lead the global people team here at Flywire, and I'm the Chief People Officer. I joined Flywire about a year ago, pre-IPO. So I just recently celebrated my first Fly anniversary, and I'm very excited about that. As the newest executive team member, I thought I might spend a little bit of time sharing a little bit about my background, probably a bit more than the others. I've been in the people space now for about 25 years. I started in talent acquisition, pivoted to talent management and HR leadership roles about 20 years ago, let's say. Wow, I'm dating myself. I've worked across multiple sectors, including CPG, manufacturing, professional services, technology, both in small companies that are starting up as well as global multinational companies. So prior to Flywire, I was building and leading the people and recruiting operations team for the autonomous driving technology bet at Alphabet called Waymo. There, I supported international expansion. I was part of the team that scaled the great Waymo culture and built a culture really rooted in the values of Waymo, which were really centered around inclusivity. I began and even led the development of their equity, inclusion and diversity North Star. So very proud of that. Before Waymo, I spent about 9 years or so working mostly in Europe for a Swiss engineering and manufacturing conglomerate. There, I was the VP and Global Head of HR supporting lots of colleagues across 110 sites in 37 countries at the divisional HR level. There, again, I did a lot of M&A work focused on global talent management across the board and built a culture rooted in leadership excellence and inclusivity. So I'm often asked then, why Flywire? First, I would say, upon my very first meeting with Mike Massaro, I knew that Flywire was a very special place, and it was a special place because of the way he showed up. He was so authentic, so compassionate, and that carried through for the subsequent FlyMates that I would meet going forward. FlyMates, by now you've probably already gathered that from the group that was up on stage, are very authentic. They're very compassionate people, and we share a lot of value. So it was a no-brainer for me. My grandmother taught me at a very young age, "Hey, you know what, Gary? When you meet people, try to leave them better than you found them." And that's what I try to do every day as the CPO of Flywire. My passion is people, scaling people teams and building diverse and inclusive cultures. At the end of the day, I'm excited to share with you more about our global FlyMates community and our people team. So with that, let's get started. So our mission with the people team is pretty simple. We want to be a global employer of choice, and that's rooted in building an inclusive workplace where FlyMates are engaged and they're cared for. At the end of the day, we've grown very much a lot, actually. Over the last year that I've been with Flywire, over 750 FlyMates around the world, over 40 nationalities, as you've heard before, and then speaking over 30 languages. So we're truly a global company. I want to share a little bit with you about the work that the people team is doing to support our global community of FlyMates. We're really advancing our culture of inclusivity and global accountability. We want to make sure that we're building safe spaces where we create the opportunity for FlyMates to feel like they have a sense of belonging and well-being. We're building out our ERG landscape with ERGs like Women of Flywire, Flywire Pride, and our newest ERG, FlyBLACK. We're also investing in EID education, our anti-racism training, ally training. And we've recently hired a new EID leader to lead the center of expertise that we've recently set up. So with that, we're really committed to our EID ideals as a company, and we'll continue to invest in making sure that FlyMates feel like they're treated equitably and that they're included. On the experience front, our amazing experience team -- and shout out to them. You'll get to witness some of the great work that they do when you head over back to our offices. But they really do facilitate the team building amongst FlyMates around the world. They build this amazing global community, and they cultivate amazing in-person experiences like our FlyLodges, which are opportunities for FlyMates to come together around the world, have an opportunity to work for a week in a dedicated place, make connections amongst other FlyMates as well as do some really great work. In addition to that, it's the virtual experiences that they cultivate for FlyMates, whether it's a virtual team building, whether it's a fireside chat, like the one hosted during our Black History Month with Ed Santos here on our Board. They really do make a true impact on FlyMates, and they're the truest cultural ambassadors for Flywire. One of my favorites, though, are FLY moments. So it's easy for companies to show up for their employees during the good times. But what about the bad times? So FLY moments for us are those times that occur in any person's life in this room, whether it's the death of a loved one or it's the celebration of buying your first home. Our experience team makes sure that our FlyMates are really, really celebrated and really, really supported during both the good and the bad times. So shout out to our amazing experience team, like I said. The other point that I want to make then is the work that we're doing around onboarding and learning and development. So we have a wonderful L&D team that really has done a great bit of work building out our virtual global induction program called Flying Start. It's an award-winning program. So very, very good work there. As well as our flagship program around managers taking flight, which is for new and experienced managers. So very excited there to keep investing in that program. As well as they're building critical skills for FlyMates, helping build critical skills that FlyMates need to shorten their learning curve when they're enrolled so that they get up to speed much, much faster. Keeping investing -- we're going to keep investing in L&D, and we're going to do that to really set FlyMates up for success now but also for the career journey ahead. So with that, I want to also talk a little bit about the career journey ahead. We think we provide FlyMates with a really, really great opportunity to build the career of a lifetime. We provide them with this opportunity to choose their own career journey, design a path that works for them and their families. Fulfillment is a core value for Flywire and so we really encourage what we call work-life harmony, which is really based on FlyMates identifying what's important for them and their families and the needs that they have. So we offer a lot in the way of giving FlyMates an opportunity to connect with one another, use new skills, develop new skills with our programs like OneFlywire, which is an opportunity for FlyMates to be fast-tracked to new opportunities in different teams around the globe. Additionally, I know everyone's talking a lot about future of work. Well, we continually think about that and invest in future work for our people. FlyMates embrace flexibility. Pre-COVID, Flywire was already good at this. FlyMates don't have a problem working remotely. Many FlyMates worked remotely prior to COVID. So we got this one lit. But what I will say is we're continuing to invest in it because it's important for FlyMates to have that flexibility and choice, which are central to the design principle of the future of work for us. At the end of the day, we trust FlyMates to really choose the work locations around the world that are best for them and their families. Some FlyMates choose to work remotely, some choose to work in the office, some choose both. Either way, at the end of the day, for us, the future is definitely Fly-brid, and we're going to continue to use that as a basis for giving FlyMates flexibility and choice and doing what's right for our people. And the last thing that I want to talk about is well-being. So this is a key pillar of our talent strategy. And at the end of the day, we support FlyMates across mental, physical, financial wellness. It's really important for us to be there for them and their families. We have recently launched an on-demand, one-on-one self-service that's offered around the globe that allows FlyMates and members of their families to really access mental health care professionals, whether it be therapists or coaches who can really sort of dig in and help them with some of the challenges that they're experiencing in life. We're doing more in that regard as well as our new equity programs that we've launched in our Total Rewards team that really provide more financial support to FlyMates and their families. All of this, plus the link to our EID initiatives, equity, inclusion and diversity, as well as our experienced teams, we feel like we really create a sense of inclusion and belonging. Now I can't go any further because I feel like I'd be remiss if I didn't mention and acknowledge the senseless racially motivated hate crimes committed in the U.S. this past weekend. As a black openly gay man, I can tell you, FlyMates are saddened and our hearts go out to the victims and their families. We stand united with them in their pursuit of justice. So focus on the whole FlyMates. That's what we do at Flywire, both the person and the professional. It's a central guiding principle for our people team to foster fulfillment amongst FlyMates in these really stressful and unprecedented times. So we think we've built something really special. And the culture and future of our people is so important to the journey that FlyMates are on. At the end of the day, we think other people are starting to recognize it. We were -- recently received some global recognition. We were named Inc.'s Best Workplace in the U.S., and so we're super proud of that. And we'll continue to invest in our workplace. Key takeaways here, there are lots. I would say we're doing a great job. And it's hard for me to talk about FlyMates and how awesome they are and not get choked up and not really, really feel like I'm doing them a disservice by not mentioning all the hard work that they put in. I think it's hard for any of us to do that. But certainly, I think when you come back to our offices, you'll get a good sense of how special they are. But we'll continue to invest in our global FlyMates community. Inclusivity in the workplace, as I said already, is super important for us. That's a place where we'll continue to dig in as well as develop growing FlyMates and growing FlyMates who are ready for the challenges of today as well as the journey ahead for tomorrow. And we'll continue to offer the best in Total Rewards and well-being so FlyMates can take care of themselves and their families. FlyMates want opportunities, and we are committed to creating opportunities for them to grow and build the career of a lifetime. So with that, I'll leave you, and I'll turn it over to the next presenter. But I want to say thank you, and I look forward to you experiencing some of the wonderful FlyMates experience and the work that our experience team does when you head back over to our offices a little bit later. So thank you.

Well, that's just playing unfair. Stories about his grandmother, heartfelt emotion, and now we get to talk about finance. Hooray! So Mike already kind of shared with you this slide. But today, what I want to do is kind of go over the financial performance that the business has been able to achieve historically, and then provide you with what I find to be some pretty compelling financial targets for the business in the longer term. And one of the things that you'll see on the screen here is you're seeing some percentages there and what that represents. Because of the COVID pandemic, we're really looking at our business on a 2-year CAGR basis, which I think is an important takeaway, and those are the percentages that you're seeing there. If you look just at 2021 growth rates, they're better than this. But from our perspective, you have to level set the business and the expectations. Nonetheless, high growth across the board, whether it's our main revenue driver of payment volume, whether it's the output of the revenue that we generate or the absolute dollars that we can generate on an adjusted gross profit standpoint. What we're really proud of, though, is the fact that we've proven that we can be profitable from an adjusted EBITDA perspective. And we did it in probably the most challenging times for most businesses with really a lot of uncertainty around how COVID was really going to impact a whole slew of industries. And we learned a couple of things about our business. It's exceptionally resilient based on the verticals in which we operate, and it's exceptionally strong on a unit economic basis, driving 3.7x adjusted EBITDA in '21, but actually showing for the first time in the company's history, adjusted EBITDA in 2020. Very exciting things for the business. How did we do all that? It really came down to the investments that we made. And over the past 5 years, we made strategic investments to grow and diversify on an international basis and also on a vertical basis. And what you're seeing here is the relative percentages, and we're really excited to share this with you because this is a new view of the business. People haven't seen this before. And it's a really interesting view of what we've been able to achieve based on the investment theses that we operated against. And by expanding the business vertically between 2016 and what we're estimating for 2022, you're seeing that our education segment in 2016, the 79% plus the 19%. 98% of our business in 2016 was in education-based business. In 2022, that number is down to 79%. Health care expanded during that time frame, going from 0% to 15%. And our emerging verticals increased from 2% to 6%. So from a vertical standpoint, we've been successful in mitigating the exposure to just a single vertical business. We're very proud of that -- the return on that investment. The second thing that we did within the education predominantly, you'll see that geographic expansion. And these numbers are much more compelling. In 2016, 79% of our revenue came from schools located in the United States that provided educational services. In 2022, we estimate that number to be 27%. It's a huge swing, and it's really based off of the investments we made on an international basis. And concurrent with that, seeing that 19% of revenue coming from schools located outside of the U.S. in 2016 increased to an expected 47% in 2022. So that global diversification, that vertical diversification based on an investment thesis that we made a number of years ago has really shown excellent ROI for the business. And how do we do that? We do that by a long-standing, excellent execution of client acquisition. All of the vertical leads here have talked about how great their relationships are, and they are. And it's because of that industry vertical approach that we take. They don't fight for resources. They have dedicated sales teams, dedicated relationship management teams, dedicated product teams, dedicated marketing teams. That go-to-market investment is dedicated on a verticalized basis, and that's why they have so much success acquiring clients. And if you think about the investments we made over the past 3 to 4 years, what have we been able to disclose? Record client acquisition years in 2019, in 2020, in 2021, in Q1 2022. And that is phenomenal. And that's the investment that we've made in specific verticalized industry leaders that know the business, know the clients, know the communities in which they operate in, and that creates that network effect that Sharon talked about, that word of mouth that really we'll get into a little bit later, but it's really exciting when you start seeing the economic units here. Not only are we really good at growing our clients, but we're really good at expanding the relationships within our clients. As Rob talked about with all the examples, the vertical heads have talked about the examples, that land-and-expand strategy, that really is driving that NRR. And that NRR is the foundation stone of our growth algorithm. That's where the majority of our growth comes from on an annual basis. It doesn't matter which vertical you're looking at, it's all coming from the NRR. And what we're seeing on this slide is exceptional growth across all of our cohorts over the past 5 years. And that's another testament not only to the vertical-specific teams we have on the selling side, but on the relationship management side, the client experience side and the payment experience side. We manage the value proposition for both the client and the payer through globally dispersed teams that can assist our clients when they have problems on the reconciliation side, that can assist our payers if they've got a problem with the payment and where it is, which never existed 5 years ago, didn't exist. We were probably the pioneers in this type of service, where you could actually figure out where your payment was inside the banking network. So we're really pleased about the investments in cohort growth. And if you think about the NRR that we're able to generate, 141%, you've seen it probably 3x today in 2021, increasing our 3-year average to about 123%, remember that. That is the foundation of our growth algorithm. And it's really the beginning point of how we look at our lifetime value of our clients, creating exceptional LTV to CAC of 7x. The other aspect of the business is really that retention, that 95-plus percent retention rate that we're able to achieve, again, for the same reasons I've already enumerated. The deep client relationships, the client experiences, the payer experience teams, really delivering value because we're really focused on the value proposition to both sides. And we're able to do it in a very low-cost environment because of the B2B2C model that we deploy. We sell to clients. We don't sell to payers. It's an interesting dynamic that may develop growth in the future, where we actually try to get payers. But for now, our marketing spend is very targeted. It's targeted to our clients. We're relying on that network effect as it relates to our client relationships and the references that they're able to give us. Very rarely do we lose a client, and that's why we have such a healthy LTV to CAC. I want to move down a little bit on the P&L and start talking about our adjusted gross margin, and we generate high adjusted gross margins. Just to level set, the weighted average -- the 3-year weighted average adjusted gross margin that the company has been able to achieve over the 3 years ended 2021 is 67.9%. It's a phenomenal number. And what I'm providing you today is an outlook related to how we perceive adjusted gross margin in the mid and long term, and that range will be between 65% and 70%. And I want to talk briefly about 3 factors that can potentially impact whether a transaction is on the lower end of that range of 65% or on the higher end of the range of 70%. And those 3 factors include how we grow. So as you know, we have transaction revenue, and we have platform revenue. Platform revenue is much more software-like. When you think about the services we're providing, we have fees that we are able to charge our clients for the receivables that we're managing. We have payment plan fees, and we have SaaS-based license fees, all representative of a software-like adjusted gross margin. On the transaction side, where it's a cost plus markup model, and we're driving value on the transactions. So if platform revenue grows faster than transaction revenue, you'll be at the higher end of this range. If transaction revenue grows faster than platform revenue, you'll be at the lower end of the range just because of the margin profile of those 2 different types of revenues. The other thing that we can drive to improve this margin or keep it within this range, and already a question was asked, which is basically scaling our processing cost, which we'll do through scale, right? The more volume we get, the better leverage we have for the network that we built and own. And it's 90% redundant I think I heard Mohit say. So we get to pick and choose. Think about it as a train track, where we get to drive that volume of payments in order to drive the best cost effectiveness. The third element is within our transaction revenue stream, which is the payment method mix. And if you listened to the Q1 earnings, you'll realize that our Q1 2022 margin was a little lower than last year, and it's because of the payment method mix. So let's think about what are the 2 primary payment methods that we use in our transaction side. We have bank transfers and we have credit cards. Bank transfers are a lower-cost item. So -- but they're at a higher adjusted gross margin. Credit cards are higher price, higher cost, but higher monetization, but lower adjusted gross margin. It's simple math. Excellent economics across both of them. But what you'll find when we look at the next slide, which we're comparing the monetization rates and our processing costs over the past 8 quarters, that our spreads have remained stable, plus or minus 15 basis points, over the past 8 quarters. So the blue line that you're looking to is the monetization rate. Sorry, is that the -- yes, the blue line is the monetization rate, and the green line is the processing cost. And that spread is essentially the margin, right? So what do you see predominantly in Q3 and Q1? Not only do we have stable spreads, but we also have seasonality within the business. So what we talked about during Q1 '22 was the fact that travel represented a good portion of our growth. So what did we see? We saw higher credit card utilization. So therefore, you see higher monetization rate, higher cost, but good spreads. In Q3 of 2021, what do you see? You see a seasonally impacted cross-border education business driving payment volumes exceptionally high, monetization rates lower because of the propensity to use bank transfers because of the size of the payments, but that spread still pretty consistent. Higher gross margins just because you're dealing with a different denominator. So I wanted to make sure everyone kind of understood the really good fundamentals related to the unit economics that we have here regardless of payment method, regardless of where we grow or how we grow, whether it's the platform or the transaction revenue. And further on down the P&L, let's look at our operating expenses. So here, what you're seeing is a pie chart of all of our departments within our organization and trying to highlight for you where we think we have the most opportunity for scaling. As David talked about in this technology, it's a shared service model. Mohit's, it's a shared service model. So we have dedicated people at the go-to-market strategies. Everything else is pretty much shared. So your finance function, your legal and compliance function, your technology teams. And therefore, you have significant and high-scaling opportunities in 65% of our operating cost structure and 35% in moderate. So that really makes us excited about the long-term prospects and financial targets that we think that we'll be able to achieve here. So overall, medium and long term, we view ourselves as a 30-plus percent top line revenue grower, and adjusted gross profit in absolute terms will follow closely behind. What's particularly exciting is our midterm adjusted EBITDA view and outlook, 10% to 20%. And then after 4 to 5 years plus, 25% adjusted EBITDA margins. We're committing to generate 3% to 6% of incremental adjusted EBITDA between now and hitting those numbers. So what we have here is a business that is a high-growth revenue business that will continue to diversify globally. We show steady client growth year after year. Excellent unit economics throughout the entire P&L with solid adjusted EBITDA generation. And we do it all with a very disciplined view, as we've talked about the investments that we make are disciplined in order to drive shareholder value now and in the long term. And with that, I'll pass it over to Allison to open up Q&A.

Thanks, Mike. Nicely done. Another hard act to follow. So we are going to start Q&A now through the end of the session. So questions again through the live chat on the webcast as well as live in the room. So just raise your hand for a microphone. And before we jump in, do want to remind everyone, we invite you back to our offices, our headquarters on 141 Tremont Street, immediately following the reception here. And don't worry, very, very short walk. It's like 3 minutes, unless you're in heels, maybe it's 4. But we'll have people that can help walk people back so you don't get lost.

Who said finance couldn't be exciting?

It was very exciting.

Will Nance, Goldman Sachs. I appreciate the financial targets. I mean I think right now, the market is exactly what people are looking for. Can you talk about -- it said within the medium term, 10% to 20%. Within the long term, 25%. Should we be -- an obvious question, but should we be thinking about a glide path through these years? Or can you talk about how -- what kind of puts you at the high end or the lower end of that medium-term target range and how to think about maybe the cadence of investments over the next couple of years?

Gary, do you want to take that? I'll start. Yes. So our perspective is that, listen, we're investing heavily in 2022, as we've talked about and provided the Street guidance, as it relates to how we think we'll do for 2002. Some of that investment has already been deployed. So the last thing we wanted to do was kind of give you the indication that 2023 would be really different than 2022, right? It's hard to kind of stop the engine. And we don't think we should stop the engine of growth, right? So we're going to continue to invest. And that's why you're seeing a 2 to 4 view. So I would suggest that coming out of the next 18 months, you should see incremental adjusted EBITDA in that 3% to 6% range without question.

Just remember to think of last year, right? I think it was 12%, 13%.

Yes. 12%.

12%. So I mean we know the tone in the market has changed, but we feel like we've also kind of shown we can now already be in that medium-term range based on where we finished last year. And so we're making the investments we think we need to make. But at the same time, that glide path, I think, is the right way to think about it.

Great presentation. On the 3 new initiatives, strategic payables, new payer services and nonclient receivables, how should we think about the growth opportunities from those initiatives and impact revenue and timing?

Yes. I mean we presented these as sort of the longer-term growth initiatives. So in terms of thinking about the immediate impacts starting to impact this year, having meaningful impact in next year, I would focus you more on the points I made in the middle of the conversation, right? We're talking about the investment in the geo expansion, talking about the investments in go-to-market. At the same time, we're excited about these longer-term opportunities, right? I think the first one that we'll see having a meaningful impact on the way we operate the business and starting to contribute to financial results will be around that strategic payables, right? So that's sort of an immediate opportunity in front of us. I think we'd sort of look to -- looked at that as being the thing that will start to become meaningful sooner. At the same time, the other ones represent really big opportunities as we continue to sort of hone that investment, make sure we're on the right track, and then we'll double down, triple down, quadruple down on those investments as we see things like payer solutions starting to get traction.

Yes. The only thing I'd add is some of you saw the famous sticky note slide that it was referenced as part of the IPO discussion. Those are 3 great areas that were on the sticky note slide. Those are things that we continue to believe have a long-term way of helping us just continue to grow.

It was a great session today. So I appreciate that. The 30% growth rate, can you pair that with NRR, like where do you see NRR going over that kind of same period of time? And I guess, kind of related to that is like where is the growth coming from existing, new customers all the topics that we talked about today.

Sure. I'll start then [indiscernible] potentially. Essentially, if we think about our growth algorithm, it comes down to the NRR as a starting point when I said it's the foundation. That's really the starting point. And then you have 2 other -- 3 other pieces that can kind of participate in that. The first is, what's the current year impact from the clients that we added from the prior year, that full year impact. And then the second -- the third component is going to be the clients that we signed in the current year in their relative impact in the current year. And then you also have some acquisition-related growth. We put 30% plus because that's what we've built into our model in the longer term. NRR, whether it's 23%, 25%, 123%, 125% is the beginning point is less important to us, but we're very confident in providing a number that suggests 30% plus in the aggregate. Where that ends up, is anyone's guess as we kind of come outside a COVID impact, but we're very comfortable that the 3-year average is the right starting point. And then historically, the client addition and acquisition is always in the low single percentage points is the right algorithm to kind of model out your expectations for growth.

Yes, I'll just double click on that. That's why we keep talking about the 3-year average. There is obviously a couple of COVID-impacted years. We're as proud as every one of the 141% from last year. But let's average, keep averaging. It's the right way to look at the business just with the -- obviously, the uncertainty in the last couple of years.

Jeff Cantwell from Wells Fargo. And to echo that, thanks for all the good detail you guys are giving us. And thanks for the presentation. On the 30% revenue, 30% adjusted gross profit growth. Can you go up to the volume expectations? Because it seems like you're talking a little bit about mix shift historically over the past 5 years. And so -- and you talk a lot about land and expand as well. So given like auto new wins and B2B and all these other volumes kind of layering in, what are your thoughts on the volume mix over time and how that might shift?

I think that there's enough historical evidence suggests that the mix shift of payment volume. And if people are familiar with the business, we've got payment volume and transaction and payment volume and platform. What you're finding is that the emerging verticals, the travel, the B2B verticals, those are predominantly transaction-based revenue streams. But as you can see from our historical, what we've been able to achieve, Jeff, start in transactional with education and health care and then move into the software and the platform world. We expect that same type of opportunity based on the software driving the value to have the same level of impact in travel in B2B. And it's just a matter of time until it grows up. So our perspective is that there may be some uptick in transaction in the short term. But as those revenue opportunities really present ourselves and the software is able to serve those clients, we'll see that back to 75, 77 percentage of total transaction payment volume.

Yes, really important part. You can layer in overtime more software driving up that margin. You can also listen to what Mohit had said about the network constantly working to lower the cost basis in that network, in those payment methods to even minimize that mix shift.

Okay. We have a question from the webcast. What assumptions go into the 5 to 7x revenue lift from your existing book of clients?

We covered it a little bit earlier. You want it Uday?

So I think part of what Ellis talked about was sort of this cohort growth. And again, that comes from increasing usage at our clients, that comes from a broader footprint. Again, we've also talked about the step function growth that we have through upsells, huge opportunity for us. We're not going to capture all of the upsells at once in spite of how much we might tell Sharon to move faster and the rest of the team to move faster. But again, plenty of levers for us to keep driving that and then keep driving sort of expansion with our clients.

I'd just highlight, we're also already seeing it, right? When we talk about case studies, as we do on the earnings call, we're seeing that type of number in the case studies that we're talking about, right? So it's not something that's kind of pie in the sky. It's something that we're actually seeing as we execute on the business.

Just looking at the medium-term box in the 10% to 20%, you outline the 2 to 3 variables, which would cause us to end up on one end of the range or the other? And then just a clarifying point, the 30% you said there was some acquisition growth in there, but that's why there's the plus. So can we take that 30% as the organic?

Yes, this is all organic.

Yes, This is all organic.

Acquisition of WPM was a last acquisition. That will be finished in '22 from an impact standpoint.

And the EBITDA question?

Yes, so the first question on your adjusted EBITDA, listen, everything is a function of our ability to drive revenue growth at that 30-plus percent, right? So lower impact, 10% to 20% in that range will be dependent upon that absolute revenue growth rate. If we're growing more than 30%, we get there faster. The other aspect of it is if there's opportunities to grow and our shareholders want us to invest, that's another impact that could potentially make that on the lower side to 10%. So both sides, right? And we're able to have optionality. The key is to create optionality for the business based on where we think the biggest ROI will be on an investment basis.

Yes. But then the upside is based on operating leverage.

Yes.

Yes. I mean the only thing I'd add to it is we also have nearly $400 million of cash roughly, right? So we raised that cash to invest in the business. And if that opportunity changes, we understand the focus right now is to make sure you can grow and grow profitably. But hopefully, people get more and more confidence that we know how to invest and we know how to go after these things, too.

Guys, I thought the vertical disclosure was great, really helpful. The comment on having education less than 50%, can you just talk about growth expectations across the different verticals and where you see the majority of that noneducation growth coming from?

Yes, I'll start and -- you want it? Go for it. No, you're not talking much, go ahead.

I don't know if that was a joke or...

I don't either.

It's always been one of the challenges in talking about our business and the diversification in that the education piece continues to grow at a really healthy space. So as the biggest part of the business and is growing very fast, it's hard for the other sections to rapidly make a dent in terms of that diversification. So you've seen over the span of several years, we've moved it, but we only move it rather sort of gradually gracefully as we go through that progression. If you look at what's going on in the business, we've got great growth across each of the segments, right? All 4 verticals are growing. And so we still have this dynamic if you're trying to run a race, catching somebody who's still running very quickly. If you look at what's going on in our travel business, obviously, we called that out in the last 2 calls as being a really fast-growing business for us and having achieved a certain scale inside the business where rather than sort of calling it a pure emerging business, we talk about it as being one of the sort of three legs of the stool. And so the travel business is growing faster and contributing to that overall growth rate. If you look at B2B, it starts from the smallest space, right? We describe it as one of our emerging businesses but with huge growth potential, right? We're seeing great client sign-ups. We have very enthusiastic about the prospects we have. We've hired a new head of sales. We're expanding the sales team in B2B, like we're still in the very early innings of growing out that team and sort of really hitting our stride on that. So what we would expect is the fruits of all that investment is that the B2B side will also grow at that kind of very fast pace that you see across travel and so on. I don't want to leave out health care. The health care business is growing very nicely. You saw from John, how when we win clients. We may not win as many clients in that travel business, but when we win them, they are big, they are meaningful and they are really great margin, great revenue opportunities for us. So I think what you're going to see is us running hard against all 4 of these. You'll see education continue to grow fantastically. But because the other ones despite how good education is, the other ones are going to grow even a little bit faster and start to year-by-year chip away at what is that sort of larger part of the pie and get us to around that 50%.

Yes. The only thing I'd add, well, 2 things. One, Sharon doesn't slow down nor does her team. So it's -- I'm not going to about to tell her to do so. The other part is we're just -- we broke it out this way, and we could have even taken it into higher ed language programs and showed you further diversification inside the education business because we want people to realize it isn't one beast, right? It actually is an extremely well-diversified business in itself, and we think that's an important piece. So we don't look at it as a negative, especially when you break it out into these subsegments in these regions.

John Davis, Raymond James. I wanted to dive in on WPM for a second. I think you guys quoted 130 universities. I think that's the lion's share of the U.K. market. So talk about that $30 billion and how you guys think about the revenue synergies of monetizing payments over time.

Yes. I have Holger over there. I don't know if I may throw Holger in. But -- so to repeat the question, it was look at the $30 billion in the U.K., the opportunity that's sitting with us, do you have a microphone? Do you want a microphone? You want to take a pass? So I mean I'll start and then since I'm throwing at you randomly not prepared, I'll start and say $30 billion total addressable market. I've said before publicly, the WPM software sees billions of dollars of flow. And so that is the near-term opportunity we have. I'll let Holger speak a little bit to what customers are seeing and without commenting about how fast we think we can get there. I'll let him give a little context.

I'm Holger, one of the founders of WPM. Just to give some more background, while we had a lot of success in the U.K., we're missing a component. And I think what we're hearing from clients across the board, irrespective of their size, they feel this is kind of the missing piece. And as for some of the feedback on the screen, they're very much voting with their feet in terms of putting pen to paper, and we're seeing really positive results. So I don't think we could be happier that we made the right decision for us, the clients and the payers.

Thanks. I think you'll see impact at the end of '22, you'll start to see more impact in '23, but I couldn't be more excited to take whatever number and run it against a couple of billion dollars of volume in.

A lot of great material in here. I have just 2 questions that are fairly simple and just slightly technical. First is when you talk about your adjusted EBITDA targets, and this is coming from the perspective of an investor who has to persuade generalist portfolio managers that they should get more involved here, right? Can you kind of comment on how you expect your free cash flow, in particular, to track relative to these targets? And then the second one is just, one thing that scares off a generalist a little bit is seeing kind of adjusted revenue numbers in the context of a market like what we have right now. And so just wondering if you could comment briefly on the revenue less ancillary and whether you expect that to kind of maintain a consistent relationship or maybe to roll off over some period of time?

Yes. I'll take the first one because we'll start at the top of the P&L. So revenue less ancillary services is, in fact, a non-GAAP term. But all we're trying to do is exclude those services that aren't related to our software transactional businesses, right? This is a printing and it's marketing, which are onetime type events. So we look at that as ancillary to the services that we provide our clients that delivers the value from the software. They should continue to have the same level of relationships. If you look at the GAAP guidance versus the revenue less ancillary services got in historically, you'll see that it's relatively consistent that relationship. It's predominantly found in the health care aspect of the business, where there's a desire for us to have a print and mail. We don't do print and mail, we outsource it, but we do control it. So therefore, we have to recognize that revenue on a gross level, right? So if we could outsource the whole thing, we wouldn't even be showing it at all. But we think that's the right way to think about the business. From an adjusted EBITDA perspective and a free cash flow perspective, this is not a capital-intensive business. So adjusted EBITDA essentially represents our cash flow. And then when you go down to the next level of free cash flow, given it's not capital intensive, it's essentially the same. Maybe $1 million here and there, depending on where we're expanding from a real estate footprint and also what type of technology we needed to deploy. Now there might be some costs associated with capitalized software development cost that we're investing heavily in. That will have an impact on that free cash flow as well. So we're talking somewhere within the small single-digit million dollars that would potentially impact between adjusted EBITDA and free cash flow.

Ken Suchoski from Autonomous Research. So the market is obviously punishing a lot of unprofitable companies these days. The unit economics were pretty attractive at 7x LTV to CAC. So why not push that a little bit more? I think the 2021 cohort was just as big as the 2020 cohort in 2021, so it seems like you're getting good returns. Why not push that a little bit more? And then for Ryan, just a question on B2B. I think you mentioned AR. It's pretty hard, right? And there's a lot of players on the AP side because that's where a lot of the economics are, I don't know if this is working or not, but -- it is, okay. Can you just talk about the trade-off between kind of that business being hard to scale versus -- sorry, trade-off between it being hard and you actually being able to scale it because I think there's a trade-off there. And then just any thoughts on growing with partners versus going direct.

Right. Maybe I'll start just a little bit on the sort of the sales force and the investment side and then Ryan jump here in just a second on the B2B side. We actually think we are doing that, right? I mean if you look at some of the metrics that we've shared, we've shared the investment of over 50% increase in the go-to-market resources. We've talked about adding 100 people over the course of the past year to that overall go-to-market set of resources. Obviously, some of these things are -- they take a little bit of time, right? You bring salespeople on, they have to sort of learn the business, learn their territory and then convert deals into clients, and then we convert them into revenue. So we share the sentiment. We completely agree with your belief. And so that's why we've kind of called out the fact that we are investing to accelerate that. And I definitely kind of grew up around the software and technology world where as you deliver success, you keep doing it, right? As you continue to prove that, that effectiveness is strong, you make more investment. And so that's very, very much our expectation. We've kind of put -- we put a lot of investment in the last few months and expect it to continue through the next few as well. And then as that's successful, we'll do it again.

Yes. And I'll just say it's the biggest investment plan we've ever had as a company, right? So we think it is bold, good things take time to develop.

Yes.

At the same time, we think broadly I think it's important to be able to show these, especially in times like this and for people to see that we can grow and grow with a profitable EBITDA. So we're trying to walk that line, make sure people see us as differently and we'll let the chips fall where they may for where things go in the market.

Sure. So I'll speak specifically to the AR piece, if you can. So we have to keep in mind we have 10 years of build behind us and we're starting off a new vertical. We've spent 10 years building the network, the technology, everything that sits on top of it is solving that hard AR problem. So for us to come to market with a new vertical like B2B, we're taking advantage of that already. So we can come to market with a ready product that's differentiated compared to what else is out there in market. And I think we've proven success in that time and time again with the multiple verticals we have.

I'll tack on to Ryan while we're handing the mic off. I think the other great thing about our business, the geographic expansion, the industry expansion. Ryan is going to grow his business fast. But we don't -- he can grow it in time. We know it takes a long time, right? We're not one of those companies that's going to go and look and say, "we need this to hit by x period," right? We have all these verticals, all these subsegments, all these products, the geographic expansion. And that's what gives us confidence on the growth trajectory, right? We don't necessarily know which one hits it exactly what moment. But by having a diversified business and all these different levers of growth, that gives us a lot of flexibility to invest.

I see we have 15 minutes till drinks, so I'll keep asking questions to run out the clock here. The interesting thing on the strategic -- kind of the strategic initiatives you mentioned, the strategic payables and nonclient receivables, in particular, is the client acquisition component of them as well. I guess, 5, 10 years down the line, like are you more excited about the client acquisition opportunity or the revenue opportunity from these? It seems like they're kind of extending that.

I think what I love about the investment decisions that we're making is that there's a -- it pays for itself as we go on the basis of the client acquisition while we develop and build the confidence in the revenue that will be driven from it as well. So as we look at the examples like we're already now getting this benefit where agents and our investment in the agent ecosystem is driving us towards new clients. And on the basis of having created the nonclient receivable, we've increased our investment around the agent piece because we know we can monetize that better. As we monetize that better, generate more activity out of it, we're generating more of these calls to the school saying, "We really just wish you would use Flywire," so there's this network effect that we're in the early innings of starting to develop. And so as that goes, essentially, we view this investment as paying for itself. And along the way, we believe we'll also have the opportunity to create a revenue stream associated with all of these. Obviously, we're not planning on building all of these services ourselves. Hopefully, that was obvious as we went through these. These are services that we can potentially enable almost on a referral relationship basis. Again, we increased the LTV, but we don't have to go build -- we don't have to go build a bank, we don't have to go build an insurance company, we don't have to go build any of those things to be able to have a very nice revenue stream out of it.

And also very strong gross margin projection as you'd think.

Yes.

And I'd just underscore, like those are things we've heard for years, right? We've had students and parents say, "Can I do living expenses with Flywire," right? And we kind of said, "No," right? And so I think it makes sense to be looking at these things and say, we have this amazing consumer set, frankly, other companies will play hundreds of dollars to try and acquire those consumers. And there's things that they look for from us. And so I think we're going to continue with our pilot, see how it goes and keep reporting back on progress.

Other people may want to drink soon well?

Looks like we're going to be drinking early.

Chris Vandergrift with Columbia Threadneedle. I'm just wondering on the gross margin side, I guess, why not price credit card transactions higher so that you're maintaining the same gross margin across the business? Like as you think about bill pay, why not price for the value that your software is offering?

Yes. One of the things that we're really proud of, Chris, is that none of our revenue growth is really coming from price increases. It's really all coming from payment volume increases, and that's really important. And the other thing that we're really proud of is that we're very competitive from a pricing standpoint across the globe. And we find that these verticals tend to be price sensitive, right? So this is -- these are the most important payments you're making, right? And people don't want to spend a lot to be making these payments, but yet they want the flexibility to choose the payment method they want. So it's a balance, right? So it's not suggesting that we don't have that lever. We've never used it before, but we want to be competitive on a price standpoint globally.

And I'd also just say, I mentioned earlier about how the legacy payment infrastructure has been built, the costs being inherent in it and information helps, right? Purpose of a payment helps, right? If someone sits there and sees a payment coming out of Nigeria for $40,000 going across a credit card or attempting in a credit card, everybody is going to think that's fraud, right? We see the Harvard invoice, right? We see the invoice from the university. We know the purpose of funds. That complete -- that information can completely change the economics and the method being offered potentially to somebody, right? And that's super valuable data to our banking partners, our card scheme partners, our acquiring partners. And we're just at the beginning of really leveraging that to continue to educate that ecosystem that's trying to apply relatively generic acceptance rules to very large and complex global payments. And so I think that's going to play out. And over time, it's just going to show people that the more information you have about a payment, the better you can be about tailoring the cost and the economics and the method that, that payment slides over.

And I guess I'd just follow up and like unpack it. Like do you think you're going to see it impacting overall volume if you were to like push people towards like bank account payments? Just being like if you already [ have a ticket ], like why don't you have to go full stride for...

Yes. So the question is if you change pricing, we -- Mike covered, we didn't do it. If you change it, how do you and your team, Mohit know what happens, right? Like would you see change of behavior?

Yes, for sure. So we do a lot of work on that front, collect a lot of data. So we would see exactly what's happening, right? We -- all of this is configurable at a client level by method. So all of this is doable, but to the point that everybody else made, it's not a lever we felt it's necessary to pull, right? We are an exclusive provider. In many cases we offer choice, which is also why our clients like us. But to your point, we have the data. We actually know where we can pull these levers. We've -- unless Mike or Rob, if you have something different to say, we've chosen not to do that given that we're seeing good volume growth, client growth in every different way, we haven't felt the need to do that.

I think we do have some ability around these kinds of pricing decisions, but another consideration is just generally keeping clients and payers happy. And one of the things if -- I know many of you do an incredible number of phone calls, many of you I know during the IPO process, you would talk to clients. And I think what you heard very uniformly was clients love us. Like they really appreciate the service we provide, they love the fact that we've managed to deliver millions, tens of millions of dollars and everybody seems happy. Like every payer is happy, every student is happy. Their family like -- so while there are things one could do in price at some point, you'd run into a question of whether or not you were still sort of presenting this sort of super option with unfettered choice, superior payment options, options that matter. For us, it has been important in building that reputation that our service is that well received.

I'll just try one more that's a little bit out here, but my timing is bad, given where the crypto market is. But I have to ask if you've been a crypto [ maximist ] or even a crypto optimist in recent years, taking cost and improving speed out of cross-border payments has been actually a major use case that people have been talking about, at least, and there's certainly been attempts in that direction. Does that figure into your kind of long-term thinking at all about whether that could potentially kind of represent a rails opportunity that is different or better than what you have built up with your existing global network today?

Yes. I'll start. I'll probably just take it, I guess. I know Mohit thinks relatively similar to me. To us, I mean, I think eventually, we hope like many of you probably do see a stable, going to see some success in crypto. I think the volatility, the speculation that exists for whatever reasons, was supposed to be the way to move money at low cost. It then got into more of a speculation camp and the fluctuation is obviously extremely difficult to use it for transacting in payments. Cost of some of these services, health care and education goes up -- going up and down that fast would be even worse for people. So I think eventually, you'll have a stable coin or you'll have a certain type of crypto currency, it's a payment method potentially inside Flywire. I don't know if that one -- that crypto currency or method exists yet or not. But I would say we have a whole team kind of watching and evaluating partnerships and do you partner with an exchange or do you partner with aggregator do you accept certain methods or not. So I'd say it's all road map items. Obviously, the volatility and the extreme volatility has made it difficult to pursue. We control it at where we show that method. We control it at a country level, at a transaction size level. So I mean, all of that's fully configurable in our system. I will tell you on cost, from a banking rail perspective, even something like crypto, I think this is me probably getting on my soapbox a little bit. But the cost in payments, when you get to bank rail, it's more compliance risk in operations and crypto has those same problems, too, right? They need to know who sent the money. Are they -- is it good clean money? And are there good rigor around anti-money laundering and everything else that goes with that. So that is often the inherent cost that I don't think a new method solves, especially a new method that doesn't solve -- that has an anonymity in it, right? That becomes a challenge. And so for us, when you look at bank rails, you wouldn't see a big change in cost equation. And frankly, to use some of the aggregators around crypto, you'd actually see a significant cost increase closer to that of credit card. And so again, personal believer, yes, do I hold many cryptocurrencies? Yes. Does our team? Yes. Do we want to see it grow over time? But when it's right for our business is probably still a bit far out.

Okay. And we're going to wrap it there. We have one more slide for Mike Massaro to end the day and the deck will be on the website.

Do I? I'm on the same slide. I think they got it. I think we drilled it in. Platform network software, opportunity to innovate over a decade, trusted by a lot of clients, huge market opportunities. Hopefully, the disclosures today around some of that size in our total addressable market is very helpful and a powerful economic model. We know there's been a lot of patients waiting for additional sharing of data around financials. Hopefully, Mike Ellis delivered on that, and that different perspective helped everybody understand our business today. And last part, office is a few minute walk. A bunch of great FlyMates there, an amazing view of Boston. Hopefully, some folks can join us even if it's for a few minutes before you rush off to your flight. Thanks.