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Paysafe Stock Tumbles On Q1 Earnings Miss, EBITDA Margin Contraction; Raised FY21 Revenue Guidance

05/11/2021 08:14
  • Paysafe Ltd (NYSE: PSFEreported first-quarter FY21 revenue growth of 5% year-on-year to $377.4 million, beating the analyst consensus of $366.4 million.
  • The result reflects growth across the eCash business, which more than offset lower revenue from the Digital Wallet business.
  • Integrated Processing revenue declined 5% Y/Y to $176.9 million, Digital Wallet revenue declined 13% Y/Y to $94.9 million, while eCash Solutions revenue rose 63% Y/Y to $112.9 million.
  • Total Payment Volume rose 8% Y/Y to $27.7 billion.
  • Adjusted EBITDA rose 0.4% Y/Y to $113.2 million. The margin contracted 140 basis points to 30% due to merchant and revenue mix changes in Integrated Processing and Digital Wallet, offset by eCash Solutions margin expansion.
  • Net loss amounted to $49.1 million, with an EPS loss of ($0.07) missing the analyst consensus of ($0.02) loss.
  • It generated $48.7 million in operating cash flow and held $1.6 billion in cash and equivalents.
  • CEO Philip McHugh believes that Paysafe remains well-positioned to deliver consistent double-digit growth and drive operating leverage from great market positions and a unique, two-sided network.
  • Guidance: Paysafe sees Q2 revenue guidance of $365 million - $385 million versus the analyst consensus of $371.47 million, and Adjusted EBITDA guidance of $110 million - $120 million.
  • Paysafe raised the FY21 revenue guidance from $1.52 billion - $1.55 billion previously, to $1.53 billion - $1.55 billion, versus the analyst consensus of $1.54 billion. It sees FY21 Adjusted EBITDA of $480 million - $495 million.
  • Price action: PSFE shares traded lower by 17.50% at $11.19 in the premarket session on the last check Tuesday.