Why Flywire Stock Got Grounded Today
The market wasn't willing to take flight with financial software company Flywire (NASDAQ: FLYW) on Wednesday. After the company published its latest set of quarterly results after market hours the previous day, investors assertively traded out of the stock. It ended up closing down by more than 16% in price on a day when the bellwether S&P 500 index moved sideways.
On the back of total payment volume that rose 23% year over year to $7 billion, Flywire booked just over $114 million in revenue in its first quarter. This represented a 21% improvement on the year-ago quarter's figure. It also topped the average analyst estimate of slightly under $108 million.
The specialty-tech company's bottom line, however, was a different story. It not only deepened to $6.2 million ($0.05) per share, but also missed the consensus pundit projection. Collectively, analysts tracking the stock were anticipating a deficit of only $0.02 per share, but a rise in selling and marketing costs, plus payment processing services fees, led to a nearly 20% increase in total operating expenses.
Source Fool.com
