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Sep 30, 2022
Paysign Q3 2022 Earnings Report
Paysign delivered revenue growth and returned to profitability.
Key Takeaways
Paysign reported impressive revenue growth and a return to profitability in Q3 2022, with gross margins increasing to 54%. The company benefited from organic growth in plasma centers, a full quarter of revenue from newly onboarded plasma donation centers, and increased activity at border locations due to a preliminary injunction.
Paysign delivered impressive revenue growth in Q3 2022 and returned to profitability.
Gross margins increased to 54%.
Benefited from a full quarter of revenue from 49 plasma donation centers onboarded late in the second quarter.
Activity at border locations started to ramp up late in the third quarter due to a preliminary injunction.
Paysign
Paysign
Forward Guidance
Paysign expects total revenue for 2022 to be $38.15 million to $38.35 million, representing growth of 29-30% over 2021. Full-year gross profit margins are expected to be approximately 56.0%, with operating expenses expected to be between $21.00 million and $21.25 million. Adjusted EBITDA is expected to be $5.50 million to $5.60 million.
Positive Outlook
- Plasma business continues to rebound from the negative impact experienced from COVID-19.
- Continued addition of new plasma centers.
- The preliminary injunction preventing the United States Customs and Border Protection from continuing to enforce its ban on plasma donations by Mexican nationals.
- Inflationary pressures driving individuals back into plasma donation centers.
- Growth opportunities in pharma business as we continue to launch new programs and build a significant pipeline of new business well into 2023.
Challenges Ahead
- One of our plasma customers consolidating and closing 13 of their centers.
- Two pharma prepaid programs ending in mid-November.
- Operating expenses expected to be between $21.00 million and $21.25 million as we continue to invest in people and technology and experience higher costs in insurance, travel and entertainment and other inflationary pressures.
- Depreciation and amortization is expected to be approximately $2.91 million.
- Stock-based compensation is expected to be approximately $2.28 million.