All right, thumbs up. Thanks, everybody, for staying with us. This is the Flywire session. For those tuning in, my name is Tien-tsin Huang. I cover payments, and we got Mike Massaro with us, CEO of Flywire, a fun name to cover. I know a lot of the management team's here. I saw Rob Orgel's here, Cosmin is here. So thank you for being here and-
Thanks for having me.
Investing your time with us. So just for those less familiar, maybe, Mike, just to give a quick commercial on Flywire, your right to win-
Sure
What the mission of the company is, et cetera.
Yeah. So, Flywire sits at the intersection of software and payments. We look at industries that have been poorly digitized in the evolution of payments, and so when you look at things like e-commerce, and you look at point-of-sale transactions, those are things that have gone through a multi-decade transformation. And when you look at other huge parts of the global economy, payments are still very dated and poorly digitized. And so we solve that with a combination of software and our own payment infrastructure. So, for instance, things like global education payments, certain types of healthcare payments, luxury travel payments, B2B payments, those are all good examples of where you'd see Flywire technology deployed.
Our software's always deployed, attached to typically a system of record of our client, the biller, the receiver of money, and we help deliver payment experiences, almost like checkout experiences, that are tailored to the industry and tailored to the geography. And then we move the money through our own global infrastructure that took us over 12 years to build. And so that's the business, about 1,200 FlyMates, employees around the world, clients in over 40 countries. So it's a global, diversified business.
Yeah, no, I think we've, we've talked about this. It's software, it's payments, it's a network, it's, it's a platform, it's all those things that you guys have, have built. Those are the things we're going through that, Mike. So maybe I just wanna cut right to it, if that's all right.
Sure, go for it.
I know that, you know, the stock's been under some pressure from the quarter. I know you're getting a lot of questions around Canada and everything else, so maybe just upfront, what do you think is misunderstood?
Yeah. You know, I think, you know, Flywire's coming up on our three-year anniversary, being public. You know, you look at any way you cut that kind of revenue and profitability metrics, and we've overachieved all those metrics. And so, you know, I think when we look at our business, some folks have the ability to look at us and say, our business has lots of verticals, lots of geographies, has various macro conditions that it's having to navigate. Honestly, we look at that as diversity of revenue stream across industry, across geography, across multiple products. And when you look at Q1, it was no different. You know, even with two multi-million dollar headwinds that were unexpected, we outperformed on the top line and the bottom line.
And that's what we've been doing, really, on an annual basis for the last three years. So, you know, I think sometimes people can look at our business and say, "Oh, there's a lot of nuance to it. There's a lot of things I have to follow around it," but it's actually relatively simple when you break it down. It has one of the most simple growth algorithms it could have. We start every year with 85%-90% visibility in revenue, meaning our clients were attached again to their invoicing process, so you have this kind of great recurring nature to the revenue stream. And then you layer on top of what is a very strong NRR, net revenue retention, which is in the mid-120s for the last six years.
You layer on top of that a full-year effect of clients, you layer on top of that in-year revenue and net new client adds and the revenue associated to that, and that's really the core growth algorithm, and we're doing that across geography, across industry, across sub-sector. And so I think you can look at the business two ways and say, "Wow, it touches a lot of, you know, corridors, it touches a lot of different industries, and it potentially has, you know, different things that could impact it from a macro perspective." But time and time again, that diversity has proven as a strength for us. And I think those investors that understand that and understand the simple growth algorithm and the diversification of the business, I think we'll see that over the long- term.
Yeah. No, I'd agree. I mean, you're a little bit of a victim of your own success. I mean, you've created a high bar. There's been a lot of good, good growth-
Yeah
F or a long time.
I mean, you look at, I mean, yeah, I mean, the numbers we put up for the last couple of years have been quite strong. I mean, we finished last year 43% growth, 540 basis points, EBITDA margin expansion. Those are pretty, pretty strong, exceptional numbers and, you know, I think, as people look at the global market, you know, they're gonna look for, for companies that can, can grow and grow profitably, no matter what is thrown at it, so.
All right, great. So what might Flywire do differently, I think, given what you've learned from, let's call this an error pocket? I know you've brought Cosmin in, which we're excited to work with Cosmin, and of course, you know, Rob and team, you're a lot of consistency there. What might you do differently from this learning?
Yeah, I mean, I think there's a few things. I think, you know, obviously, having Cosmin here, 20-plus years, PayPal and eBay, you know, has a great understanding around just scaling, scaling businesses and doing so profitably. He's got a deep analytical background as well, right? So when it comes to partnering with the business, identifying areas, to grow, and also, you know, kind of using that data to better optimize the business, I think that's a strength we've never had as a company. So I think that's a huge benefit to us to kinda have his next level of scale and growth. I think we'll, of course, always look at disclosures.
You know, sometimes you're at these events and you get half the folks that say, "Disclose way more," and then half the folks that say, "Don't, don't disclose any more, please." You know, it's already a business that is a lot to consume. So I think, you know, we're gonna be smart, continue to be smart in how we disclose and provide visibility into different parts of our business, and at the same time, we're gonna do what we've always done, which is execute and deliver. So, that's really our focus.
I appreciate you being visible and accessible to take the feedback. Just to clarify, in terms of your 2024 outlook, what really changed versus 90 days ago?
Yeah. Yeah, for sure. So, really what, for us in 2024, you had a business that had a macro change in one of our geographic markets. So in Canada, international students who go into Canada to study, it's our largest vertical, is education. Canada is one of those geographies. And what you had happen is ultimately the government said, "Hey, we need to put some restrictions on the number of student visas or permits that get issued in Canada." And the purpose of them doing that is just they had seen a large amount of growth in the number of students going to Canada, which was a net positive.
It was the intent of the country to grow that number and bring talented students into the country to work and stay in Canada, but it had an adverse effect on the housing market up in Canada. So places like Vancouver, Toronto, saw a huge growth in both rental cost as well as real estate prices with that growth of students. And so they put some caps in place. Those were announced in mid-January of this year. That became almost a freeze moment for a lot of the universities in Canada, where they said, "Hey, we don't know how many study permits we're gonna have. We're not sure how many students we should allow into the university." And so they paused a lot of their admissions processes.
That was a, you know, single-digit $millions headwind to us in Q1, and one that we had to adapt to as we went through the quarter. I'd say the other thing that has come up for us is FX. Our business has a little over 50% of the revenue is outside the United States. When it comes to financial reporting, you have kind of, as the U.S. dollar strengthens, you have kind of a headwind of reporting of that income back on the balance sheet. That was another $1 million-plus headwind in Q1. We had to navigate those two headwinds in Q1. We still beat the top line, still beat the bottom line, even navigating those two headwinds.
As we looked out over the year, right, we had to provide some visibility as to what we thought would happen in Canada as study permits come back, and as the U.S. dollar continues to be quite strong. So, we took down a full year guide on an FX-only basis. So the FX impact that we saw in Q1, we said, "Hey, if this FX impact continues for Q2, Q3, Q4, there'll be a full year pullback on revenue due to the FX volatility or the strength of the dollar." And then we also had to talk through the bridging of Canada tuition payments coming back in Q2, Q3, Q4.
So the good news in Canada is the visas are now known, the permit numbers are known on a per university basis, and what we've said is expect kind of this rolling recovery of admissions in Canada for the remainder of the year. And so we've adjusted our Q2 guide for that, and the full year we've kept intact outside of FX.
So, help me really quickly, forgive me for asking on Canada one more time, just on the timeline and the visibility-
Sure.
What informs you on that outlook, including the recapture? What can we look at on the outside to do a better job of tracking that?
Yeah. So, a couple things. One, now that there's clarity, we obviously see the payment volume coming back, and we are seeing that rolling recovery, which is what we expected. You know, you can also, I think, look for us, we look at our clients and what they say on the ground, right? And there's a strong belief, both our clients and from the educational agents that help students apply to Canada, that both of those audiences believe that those seats will be filled, right? These are too critical of a revenue stream for universities up in Canada, and throughout Q2 and Q3 and Q4, you'll see a progressing of that admission process to the point where they expect to use their full allocations this year.
And so that's, that's how we expect to track. We'll, of course, continue to be as transparent as we have been as to what we see. We've taken a bit of the Q2 revenue, pushed it to full year, to prepare for that in the guide, and that's what we think will play out throughout the year.
Okay. So I know this feels like a one-off, and you're... you've got your arms around it. Are there any other regions or reg changes that are on the radar for you?
Yeah, I mean, you see different headlines in different countries around the world. You know, in the last 12+ years of building the company, you've seen different immigration and visa policies by different countries. You know, in the U.K., you actually saw some concern over a certain set of visas. Now it looks like there will be no change to those visas. In Australia, they're also addressing, I would say, tier 3 or tier 4 type universities who are issuing visas to folks for short-term educational stints, and they're addressing that with new regulation. That doesn't really impact Flywire much-
Okay
N ot really our target demographic of university or school in that sector in Australia. And so you've got a big election year happening all around the world, and you have, obviously, immigration and policy being a big headline grabber. I think for us, we've seen that type of trend over the last decade plus. And again, we typically see it as more headlines than it is actual real impact. I guess some people could say foreign governments may, you know, like the headlines or hit the headlines during election season, but oftentimes they don't follow through as aggressively as the headlines sometimes say.
Okay. And it seems like, like I said, you've shown the ability to adapt and recapture as well.
For sure.
So okay, good. Let's, let's move on. On the, on the new deal front, I think 200 clients signed in, in the first quarter, so obviously a good number there and relative to, to history. Can you give us a little more detail on, on who you're signing, the quality of the signings? I think ARR is always a, a fair question, and who you're taking a share from.
Yeah, for sure. So across our industries, we put up 200 net new client adds in the quarter. It's another record quarter for Flywire and client adds. You know, each quarter you'll see some variation in which of our industries leads. You know, in Q4 of last year, education had the largest amount of adds. In Q1, it was the travel industry-
Mm-hmm
F or us. In general, you see relatively consistent average client size. Sometimes you'll see it a little higher, a little lower. Q1 was a little bit lower, but again, in general, the client size for Flywire is typically five-figure, six-figure, and some seven-figure ARRs, and so we have clients in all of those tiers across all our verticals. And so that's continuing to be the kind of client size aspect to it. And what's driving the growth is the multi-year investment we've been making in go-to-market. So since IPO, there's been 2 big investment areas. Flywire is focused on product and tech innovation and go-to-market. And so when you look at our go-to-market function, it's not just additional reps, if you will, by vertical.
We also look at new countries and new regions we're taking the product and the offering into. Sometimes that's an area of go-to-market we invest in. Also, marketing spend. We highlighted in Q1 that $1 million of marketing budget led to $10+ million of pipeline creation. So again, really efficient, cost of acquisition economics when it comes to driving new pipeline. And then, with the strength of just our, our LTV and our LTV to CAC, it just shows we need to continue to invest in go-to-market, and that's what we're doing. So by geography, by industry, by subsector, and then also just a level of, in, of improved efficiency.
When it comes to revenue operations, just the way in which we have rigor around pipeline, around funnel, around Deal Desk, all of that has really evolved, really strong over the last three years as a public company.
Okay, good. So let's do each of the segments really quick, rapid fire. So in education, I think a common question I get, you've talked about TAM a lot, so I don't wanna ask that, but just the opportunity from existing versus new-
Sure
Lo go, is that composition and quality evolving?
Yeah, I mean, we look at the global education TAM and think of that as kind of moving all the tuition dollars globally. And with clients over 40 countries, we have the ability, obviously, to sign clients in many major markets around the world for education. The strategy is slightly different, depends on the country. So in the U.S., we actually started just servicing the cross-border tuition product there for the first 7 years plus of the company. And so when you look at our client base installed in the U.S., it's much more of an upsell model to that client base. There's still room to add new universities in the U.S., but the vast majority of the potential is that upsell, right? Instead of just doing the cross-border tuition payments, how do we move all the money for the universities?
And we've highlighted great examples of Texas A&M, Stanford, UVA, many other great universities that are now doing all their tuition processing with Flywire. So that's the kind of strategy in the United States to continue to penetrate that customer base. And even broadly at Flywire, we've thrown out the metric, if we stop signing customers, you'd see, we could add 3-5x revenue off our existing customer base. And so that tells you a little bit of the opportunity that exists, just embedding more products and getting Flywire deployed more in our existing client base. It's part of what drives... helps drive that strong NRR.
So when you go outside of U.S. education, it's really still a land grab around the world in markets like Canada, Australia, Southeast Asia, Europe, and the U.K. in particular, where we're going in and winning universities and moving all the money, right? So helping with the cross-border tuition, but also the domestic. And so there's a bit of a different technique used in those two markets, but still early innings, you know, less than still high single digit penetrated in our total addressable market for education. And when we're taking share, we're typically taking share from a straight acquirer outside the United States, who's just doing credit card processing, and usually a homegrown system or some type of IT-deployed e-bill system.
In the United States, we typically take share from three incumbents that have existed in the U.S. education market, which is Nelnet, TouchNet, and a company called Transact, formerly called Cashnet.
What can bend the growth curve on education? What can you do differently? You mentioned go-to-market. I mean, and I think there's the partner model. I think your Investor Day, you talked about a lot of different things. But in your mind, what's the number one thing that can really step up or catalyze growth above what you've seen?
Yeah, I mean, I think part of it is continued, you know, deeply embedding partner integrations, right? So if you just look at our playbook, right? Most of our business, we sign up obviously direct, but the technical integrations and the systems and the interfaces that we have to the system of the record can really help kind of reduce the barrier of a client kind of going all in on Flywire. So, recently, we won an award with Ellucian as an example, which is one of the largest student information systems. We have a close partner in the U.K. called Tribal, which is one of the leading student information systems in that market.
And so having the ability to have those integrations and keep investing behind those integrations, they help reduce the barrier of IT work needed to deploy a new system and help mitigate kind of that transition fear that a lot of clients have in that space. And so I think the more we do that, the more opportunity we will have to accelerate just our penetration of the education market.
Okay. Good. Let's do healthcare. It was down 1% last year. I know there's a plan in place to get that back up to corporate averages. There's a new sales lead there, I believe.
Yep.
You've talked about the pipeline being big, but you know, what's the timetable for that to improve? Are you happy with the progress?
Yep. So made some sales changes there. Last year, we grew 43%, even with one of our verticals at -1%. So it kind of underscores the diversity point I was making earlier. But for us, we look at healthcare and say, part of that is our ability to get that into a higher growth rate that I think will help the business overall. Healthcare in general, it's hard to grow at the corporate average, the industry and kind of great growth in healthcare is typically in that mid-teens, mid- to high-teens range. And so that's really where we kind of set kind of our goals, is around that growth rate on the healthcare. And it's really a multi-pronged strategy. You mentioned the team changes.
Think of us as getting in, you know, stronger enterprise-level leadership on the sales side and subsequent reps, and increasing capacity underneath that new leader. And that's gone quite well. We highlighted the significant pipeline growth in the last quarter in the healthcare pipe. And then in addition to that, we've diversified the growth levers inside healthcare, so, adding additional products. We've been up featuring a product called Integrated Financing, which is a third-party financed option that's embedded into our our suite of products, driving additional revenue growth at existing clients and getting more attached to existing deals, helps drive pipeline, helps drive upsell. And then also looking at subsegments.
Historically, we've focused on the largest health systems in the United States, and there's a whole, next tier of sub-segmentation, things like, certain types of ortho practices or specialty, surgery centers. These are relatively large businesses that have a, a perfect fit for our product offering, typically faster decision-making, faster time to revenue, and that's giving us an additional growth lever outside of just the U.S. health systems.
Right.
And so-
So moving away from health systems, more of these, the specific solutions. So just quick, for everyone's benefit, I get the question, Mike, what... Give us an example of the actual use case.
Yeah. So, in healthcare, the use cases, I'm sure everybody goes to a healthcare provider or has families that go to healthcare providers. There's a billing process. It starts with your insurance being applied to the cost of that healthcare procedure. And then, as you will have noticed, there's a growing cost that sits on the payer responsibility. So, you have the payer apply, which is the insurance company, and then you have the individual consumer owe the rest of that payment. Our software gets involved at that point, where we're communicating, typically through email, through text message, that you have an open balance, and then our software is actually driving you through a workflow to figure out how to pay that. Some individuals will pay that one time.
It could be a $30 charge from a visit for, you know, a lab test or something you had done. You may just throw a credit card in to make that payment.
Right.
It could actually be a $1,500 balance that you owe, and you may sit there and say, "I wanna pay this over a three-month installment financed by the hospital." So our software will actually capture your credentials, manage that payment process, charge whatever method you've asked us to charge on that recurring basis. It will also auto-adjust and communicate to you if and when you have additional medical procedures, and how you wanna handle those with that active payment plan. So that's the core use case or workflow in-
Perfect
I n healthcare.
No, thanks for going through that. So let's do travel. I guess the top question I get on travel is that the pandemic recovery is well understood, and there's a pent-up demand, then what happens coming off of that? Is there an unwind or a mean reversion risk there? But, you know, it feels like there's still a high demand for higher-end travel-
Yeah
A nd I know you're focusing on, I don't want to try to-
Yeah
S hare with that. Tell us what-
Sure
W hat's driving the growth, 'cause you, you've talked about really strong or high AR in the quarter, so it's not pandemic recovery?
Yeah. Yeah, so, you know, if you, if you kind of rewind 3 or 4 years, right, pandemic or pre-pandemic, you would've seen a travel business for Flywire that was low single-digit $ millions. It was just starting. It was just getting to the point, even pre-product market fit for us. And it actually started out of our business payments division, that we were kind of looking for businesses that could leverage our combination of, software and payment capability. We identified a number of luxury travel clients, and we started to build the team in a marketing effort directly around that, and also tailoring our product with more features, more integrations into, travel systems of record. And so if you kind of fast-forward to today, 3, 4 years later, you've got our second-largest vertical by revenue in the travel sector.
You've got exceptional growth rates continuing well above the company average. And it sits in a series of geographic expansions and subsector focus. So, you know, we're doing everything from, you know, luxury tours. So you're thinking of taking your family on an African safari, obviously, 99%+ of that, of those payments are coming in from international corridors, and so Flywire is a great payment partner for those types of companies. You can look at luxury accommodations, whether it's villa rentals, boutique hotels. Those types of things are, again, another subsegment for Flywire inside travel.
This year we launched Ocean Experiences, which just in itself is a $16 billion total addressable market for us, and that's everything from small riverboats and small cruise lines, which are, you know, a rage in many parts of the world, and the entire yacht rental and trip market, which is another huge part of luxury travel. And so for us, we're super early in the penetration of luxury travel. It's a great business. It looks a lot like the education business looked in its first three or four years of evolution, and we're solving it with something that not a lot of players have, right? It's that combination of software that's tailored for the industry and a payment network that's set up for large transactions and cross-border payments. And so that's really the case.
I mean, if you think of a software feature, just to give you another example, you know, if you go on one of these trips, oftentimes you've got multiple- you may have 15 people going on a trip that you've organized with friends or another family. You may be wanting to split that trip up with two or three payers-
Mm-hmm
Ri ght? With a few clicks, right, our client can configure that invoice, could split that invoice out to three different payers... and then each of those payers may have a set of installment payments that are specific to that trip organizer, right? Where 20% is due at deposit, you know, another 60% is due two weeks before your travel, and then upon your day of travel, the other remainder is due. So again, that's all easily configured and tailored, not something that often exists when you just deploy a credit card processor, and it's really that software driving value and automating the back office for our travel clients. So trying to deliver a great experience for the payer, make it simple, easy to pay in their local currency, and then also streamline the back office.
I actually used it, used one of our, our product when I was off to a trip to Vietnam. Imagine the different payment experience of being told to pay in Vietnamese đồng, the currency in Vietnam, VND, versus being given a, you know, a simple pay ax in English that allows you to pay in US dollar via whatever payment method, your card or, direct bank connection that you have. And so that's really the difference of deploying Flywire or not, making it local to the payer while streamlining operations on the travel company side.
Those payment plans you design and you present?
Yeah. Actually, our, I mean, our client configures them in our product.
Right
A nd they're delivered through our software, but our client sets the rules and configures them based upon their own requirements.
Right, configurable based on your work. Of course, on the education side, we're doing the same thing.
Yeah, same exact thing. Yeah.
Payment plans. Okay, good. One more B2B, and then we'll open it up. So on the B2B front, we've had a lot of AR/AP players at this conference, Mike. They're, they're talking about doing software-
There's a lot.
A nd payments, and it's hard, and there's a mid, small, large attack plan for all these different providers. What's your right to play in that space?
Yeah, I mean, we focus on the AR side, right? We always have. I think that's a unique point of differentiation. We'll often joke, "I don't know a CFO who gets a bonus for paying bills faster.
Mm-hmm.
But again, getting paid is obviously critical, especially in this environment. So, being attached to the invoice is critical. Our target customer typically is in the range of, think of it as, you know, $50 million-$500 million. It could be a division of a multinational, it could be an entire, you know, company that has a series of global and domestic receivables, and the way that experience has traditionally been delivered is through a PDF email, right? Where somebody is sending a PDF, it has an account number and a routing number at the bottom of it, and someone's going into an AP system and entering that account number and routing number.
And so we're really bringing our AR approach to it, which is provide a seamless way in which someone can make that payment in local currency, in whatever currency they choose, from whatever system they want, and do it in a streamlined way where you're taking the AR data and the funds, and you're delivering those back for full reconciliation to the biller. And so we're seeing great traction in that business. It's in certain subsegments, things like insurance companies who invoice, of course, all over the world, manufacturing and distribution companies, tech companies with global invoicing needs. So again, we see huge potential focusing on the AR side. It's really not the AR and AP players that kind of compete against each other in the space. Like, there's so much opportunity, whether you look at the $24 trillion number people talk about.
Visa also highlights a $200 trillion number-
Mm-hmm
O f potential inside B2B payments. And we look at that and just say, "There's so much potential for digitization over the next decade plus, that we think you're gonna see winners on both the AR and the AP side.
Any reason why this can't be as big as education is today?
No, I mean, the Total Addressable Market is exponentially bigger. And so I think what you'll see from us is obviously continued focus on B2B, but carving out of these subsegments or specialty focuses underneath that B2B umbrella, 'cause again, that's where you end up with alignment around word of mouth. When you have alignment around trade associations, with use cases, with technology providers that exist in those subsegments, that's really our specialty, is identifying all of that, building it into the software, and leveraging the scale of our infrastructure and our network to go fast.
Great. Let's take questions. Any questions from the group? Don't be shy. I'll take one here, if you don't mind using the microphone.
Hey, Mike, you talked about your clients having 5, 6, 7-figure ARR contracts, but when you talk about ARR, can you help us understand kind of the nature of that revenue?
Sure.
'Cause I know on one end, you have kind of contractually obligated revenue-
Yep
As a software business, but on the other hand, you have payments revenue. I know you kind of give the disclosures in your reports, but can you give us an idea of how that split looks like across different subsegments-
Sure
A nd different verticals?
Yes.
Thanks.
So if you just, at the highest level, if you think of the vast majority of our revenue, you know, 80%+ or so is transactional revenue in nature, 20% or so is platform usage-based revenue. And so think of it in that, those big buckets. Another way to look at it is, you'll see more platform software like fee-based revenue on the domestic payment side, right? You will still see domestic hit the transactional revenue. It would just be smaller in nature, right? 'Cause you don't have a foreign exchange margin on the domestic transactions, obviously, but you do oftentimes get a bit of interchange that hits that transactional side.
The beauty of the model is as we attack certain industries, you've got the ability to configure the pricing model based on some combination of software and transactional revenue. And that can be configured as you identify new use cases. So to give you a really tangible example, in our education business, our clients wanted help digitizing 529's College Savings Plan payments. They were getting inundated with paper invoices, as an example, and FedEx envelopes. And what we did is actually exposed an API to the brokerage firms who manage those plans and provided them a digital distribution or disbursement method right to the university. And for that, you know, it's a transactional revenue, it's a usage-based revenue stream for us, that we get on each transaction we process.
And so again, that's a great high-margin transaction that's really being delivered because of the uniqueness of our software and sitting inside that ecosystem. So we have the flexibility to put transactional fees on the payer side. That's traditionally where it happens in cross-border payments. We have the ability for our clients to offset transaction fees on the receive side, and then also to have a software component. So we have flexibility and leverage in that model as to where it goes, but it's typically configured by product.
Thanks for the question. Anyone else? Yeah, James, up here.
Thank you. I just want to ask about B2B. I think, like, insurance and franchisees are two of the big verticals you're playing in. I mean, how should we think about the timeline of when we could start to see some contribution from those? It sounds like travel took a few years to play out and then suddenly inflected, like it's an S curve. And maybe what are the gating items to start to see that growth inflect? Like, do you need a few big clients, or any color would be helpful.
Yeah. I mean, in B2B, we're already seeing $5-, $6-, $7-figure clients in that market, so that's a pretty darn good indicator that across the various subsectors, you already see that level of clientele. You know, I would say B2B is on that same travel journey, right? If you go back to my story of, you know, 4 years ago, you were in the $1 million-$9 million. You know, B2B is well on that journey already, and putting up great growth numbers, and you can see in some of our supplemental disclosures, you know, is taking up a bigger piece of that pie. You know, people will often look at that disclosure and highlight that travel is likely, you know, as I've said, the number two largest vertical.
And so you can kinda make that math and assume, you know, B2B is helping the business and continues to grow really, really well. So, you know, again, we're fortunate, I think, to have a diversified business where we can give things time to develop without a lot of distraction. And remember, we start the vertical work or a new subsector work without having to rebuild functionality that exists on our platform. There's a whole series of shared services that we don't have to rebuild on a per vertical basis, and then we have the infrastructure, the money movement, right? And so again, you know, I won't say you'll start. You'll probably start with 70%-80% of what you need to go after a new subsegment and win customers.
And then you're just tailoring that software and that functionality you've already built for that industry, for that geography, and making those technical integrations that are specific to franchise companies, for instance, or insurance companies, those systems of record you see time and time again. So, you know, again, we see really great progress. I mean, that, that team was nonexistent, you know, probably the year prior to the IPO, and then to really see the progress it's already made is pretty, it's pretty great.
Time for, well, maybe one last quick one. So maybe, maybe we'll end and get you out of here, Mike, on a question similar to the beginning, which is, what's misunderstood in your mind about Flywire? I know we talked about the stock before, but what do you think is misunderstood about Flywire as you've sat down and, and met with investors here in the last year or so?
Yeah, I mean, I, I think, you know, if you look at our business, you can definitely wonder whether it's complicated or very simple. I think we continue to point to a very simple growth algorithm that for the last 12+ years, we've proven we can execute against. And it's digitizing industries that have huge opportunity, right? So think total addressable market, large, early in the penetration of that market. The technology we deployed is differentiated, right? This is not technology. No one has this software, plus technology stack, plus banking infrastructure stack that we have. So total addressable market, huge. Technology is heavily differentiated. We think we have a heck of a team that's proven to be able to execute in, you know, complex macro conditions at a global level, and that team's pretty spectacular.
So, you know, we also have a track record, so maybe I guess I just gave you four Ts: TAM, technology, team, track record, what I would say.
Terrific. Mike, always great to catch up with you.
Yeah, thanks for having me.
Thanks for the time.
Appreciate it.