Paya Holdings Clocks 25% Revenue Growth In Q2, Lifts FY21 Gross Margin Outlook

Paya Holdings Inc PAYA reported second-quarter FY21 revenue growth of 25.2% year-on-year to $63.9 million, beating the analyst consensus of $60.7 million.
Revenue from the Integrated Solutions segment rose 31.3% Y/Y to $39.6 million, and the Payment Services segment increased 16.5% Y/Y to $24.4 million.
Payment volume was up 36.8% Y/Y to $10.7 billion.
The gross margin expanded 160 bps to 52.8%. Payment Services gross margin expanded 490 bps to 52%.
Adjusted EBITDA expanded 18.3% Y/Y to $16.8 million. The margin contracted 150 bps to 26.3% due to higher costs.
Adjusted EPS of $0.11 beat the analyst consensus of $0.07.
Paya generated $10.9 million in operating cash flow during the six months ended Jun. 30.
The company held $135.6 million in cash and equivalents.
Outlook: Paya sees FY21 revenue of $244 million - $248 million (prior $242 million - $248 million), versus the analyst consensus of $246 million.
The company sees a gross margin of 52%-53% (prior 50.5%-52.0%).
The adjusted EBITDA guidance is unchanged at $64 million - $68 million.
Price action: PAYA shares traded higher by 2.07% at $10.85 on the last check Friday.