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Mar 31, 2022

Paysign Q1 2022 Earnings Report

Reported revenue growth as key performance indicators returned to pre-pandemic normalcy.

Key Takeaways

Paysign reported positive Q1 2022 results with good revenue growth driven by the rebound of the plasma business and winning new deals and onboarding new plasma centers and pharma clients.

Unrestricted cash increased by $1.1 million to $8.5 million due to the improvement of the plasma business.

Operating results continued to improve, generating positive cash flow from operations.

The company expects total revenue for 2022 to be in the range of $35.25 million to $38.35 million, reflecting growth of 20% to 30%.

Adjusted EBITDA is expected to at least double to $4.0 million over 2021.

Total Revenue
$8.22M
Previous year: $6.28M
+30.9%
EPS
-$0.01
Previous year: -$0.03
-66.7%
Gross Profit
$5M
Previous year: $2.83M
+76.5%
Cash and Equivalents
$8.5M
Previous year: $65.3M
-87.0%
Free Cash Flow
$5.12M
Previous year: $9.78M
-47.6%
Total Assets
$88.8M
Previous year: $77.7M
+14.3%

Paysign

Paysign

Forward Guidance

Paysign expects total revenue to be in the range of $35.25 million to $38.35 million, reflecting growth of 20% to 30%. Adjusted EBITDA is expected to at least double to $4.0 million. Full year gross profit margins are expected to be approximately 50.0% to 52.5%. Operating expenses are expected to increase to approximately $20.0 million.

Positive Outlook

  • Total revenue to be in the range of $35.25 million to $38.35 million, reflecting growth of 20% to 30%.
  • Plasma making up approximately 90% of total revenue.
  • Adjusted EBITDA is expected to at least double to $4.0 million over 2021’s adjusted EBITDA of $2.0 million.
  • Full year gross profit margins are expected to be approximately 50.0% to 52.5%.
  • Balance sheet remains strong and expects it to continue to expand as an outcome of the operating result improvements

Challenges Ahead

  • Pharma revenue is expected to be relatively flat year over year as the loss of programs and settlement income in 2021 are offset with new pharma copay programs.
  • Operating expenses are expected to increase to approximately $20.0 million as we continue to make investments in people and technology, and experience higher costs in insurance, travel and entertainment and other inflationary pressures.
  • Depreciation and amortization is expected to be between $3.0 million and $3.25 million.
  • Stock-based compensation is expected to be approximately $2.0 million.
  • The company continues to be affected by COVID-19-related labor shortages.