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10 Apr 2025
Recent public market meltdown of North American B2B payments SaaS & fintechs likely to accelerate a wave of public-to-private M&A (along with other fintech domains). Market fundamentals, growth outlook, and opportunity for value creation in the sector remain healthy in the long term. 10 of 12 tracked publicly-traded B2B SaaS and Fintech Platforms have underperformed the S&P 500 index over this same period Such performance outcomes from B2B fintechs and other fintech domains (not illustrated) should increase public-to-private investment opportunities General Commentary & Highlights Equity markets are extremely volatile presently due to political and macro-economic uncertainty. B2B fintech equities were already under valuation pressure in Q1 as investors became more bearish on the sector’s high growth expectations. Sustained share price pressure will stimulate acceleration of public-to-private deals in fintech, with these B2B fintechs being obvious potential targets. Despite the recent public market performance, we remain optimistic about the long-term health and growth outlook in B2B fintech, given the – strong growth tailwinds from ongoing digitization of B2B workflows and financial services (which we discuss in a recent Insight which you can find HERE). AP Automation Corpay: Corporate Payments segment posted a healthy 26% top-line growth (10% overall), and adjusted EPS grew 21% YoY. BILL: Growth slowed from prior Qs and missed expectations. Core revenue rose 16%, while total payment volume grew 13%. AvidXchange: Q4 exceeded expectations in revenue, gross margin, EBITDA margin, and EPS, but the stock dropped lower than anticipated ’25 revenue guidance. AR Automation Repay: Business Payments revenue and gross profit rose 76% and 60% YoY, while Consumer Payments dropped 7% YoY. BlackLine: Despite macro challenges and customer uncertainty, revenue still grew 9% YoY in Q4. SMB Accounting Intuit: Total online volume grew 18% YoY, and Global Business Solutions revenue grew 19% YoY. Enterprise Suite shows strong uptake: Jan contracts signed were up 2x vs. November. X-Border Fintech Payoneer: Stock dropped as Q4 earnings missed expectations. Payoneer posted 18% annual revenue growth and record ’24 B2B profit. Flywire: The education segment struggled, with Canadian higher education down 50% YoY. EPS fell to a loss, falling significantly short of estimates. B2B T&E Expensify: Doubled market expectations for free cash flow ($24M vs. $10-12M). Expensify Card grew 54% YoY and 11% QoQ. WEX: Revised its long-term revenue growth outlook from 8-12% to 5-10%, reflecting macro pressures and a reset of expectations. Please do not hesitate to contact Anupam Majumdar at Anupam@FlagshipAP.com or Rom Mascetti at Rom@FlagshipAP.com with comments and questions.
b2bpayments,paymentsacceptance,perspectiveonkeyevents,saas
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