What happened

Shares of Flywire (FLYW 17.66%) were soaring today after the payments platform turned in better-than-expected revenue in its second-quarter earnings report. The stock closed up 12.8% on the results.

So what

Flywire, which offers vertical-specific payments to businesses to handle accounts receivables, said that revenue in the quarter grew 53% to $56.5 million, ahead of estimates at $49.1 million. Total payment volume was up 49% to $2.9 billion.

Further down the income statement, gross margin narrowed from 60.8% to 58.8%. Flywire's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss expanded from $0.1 million to $6.1 million as it invests in technology and marketing, though management still said EBITDA was better than expected. On a GAAP basis, the company posted a per-share loss of $0.22, which was worse than estimates of a $0.14 loss per share.

CEO Mike Massaro said: "Despite uncertainties in the global economy, I'm pleased to see our strategy working as expected as we continued to efficiently win new clients and cross-sell existing clients across all verticals. Grounded by our successful track record, we plan to continue to make targeted investments in go-to-market, geographic expansion, and product and payment innovation, positioning us well for future growth." 

Flywire is also fresh off its acquisition of Cohort Go in July, which it expects to accelerate its growth with cross-border tuition payments and strengthen its position in the Asia-Pacific market.

Now what

Looking ahead, Flywire sees third-quarter revenue of $94 million-$98 million, up 42% at the midpoint from a year ago and better than expectations of $88.5 million. Full-year guidance was also strong, as management called for revenue of $283 million-$294 million, representing 43% growth at the midpoint and ahead of the consensus at $261.8 million.

For a growth stock , there's little more that's encouraging to investors than faster-than-expected revenue growth. Therefore, it's not surprising to see Flywire up double digits today after the top-line beat and the strong guidance.