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Sep 30, 2021

Paysign Q3 2021 Earnings Report

Reported significant improvements in revenue and operating results.

Key Takeaways

Paysign reported a solid Q3 2021 with improvements in revenue, loss from operations, EBITDA, and adjusted EBITDA both sequentially and year-over-year. Total revenue for the quarter was $7.8 million, a 16.8% increase from the previous quarter. The company is raising its gross profit margin forecast by 250 basis points to 49.0%.

Total revenue for the quarter was $7.8 million, up 16.8% from the second quarter of 2021.

Adjusted EBITDA experienced an almost threefold increase over the same period.

Gross profit margin forecast raised by 250 basis points to 49.0%.

Balance sheet improved sequentially as a result of this quarter’s performance.

Total Revenue
$7.77M
Previous year: -$153K
-5191.7%
EPS
-$0.01
Previous year: -$0.14
-92.9%
Gross Profit
$3.82M
Previous year: -$3.43M
-211.3%
Cash and Equivalents
$70.2M
Previous year: $55.5M
+26.4%
Free Cash Flow
-$1.57M
Previous year: $8.27M
-118.9%
Total Assets
$83.2M
Previous year: $71.1M
+17.1%

Paysign

Paysign

Forward Guidance

Paysign anticipates continued business improvement in Q4 2021, with sequential revenue dollar growth similar to Q3. Gross profit margin forecast is raised to 49.0%.

Positive Outlook

  • Sequential revenue dollar growth expected to be similar to Q3.
  • Gross profit margin forecast raised by 250 basis points to 49.0%.
  • Operating expenses are expected to remain flat or increase slightly.
  • Plasma volumes remain at or better than current levels.
  • Adjusted EBITDA forecast is now expected to be in the range of $1.3 million to $1.9 million

Challenges Ahead

  • Residual effects of the pandemic continue to impact the business.
  • Sequential increases in operating expenses expected due to seasonal operational expenditures in Q4.
  • COVID-19 related labor shortages at plasma donation centers.
  • Border closures and other effects continue to weigh on the company’s results of operations.
  • Uncertainty around the extent and timing of the potential future spread or mitigation of COVID-19 and variants.