Paysafe Shares Slide On Dismal Guidance; Beats On Q2 Revenue Aided By Payment Volume Growth

Paysafe Shares Slide On Dismal Guidance; Beats On Q2 Revenue Aided By Payment Volume Growth
  • Paysafe Limited PSFE reported a second-quarter FY22 revenue decline of 1% year-on-year to $378.9 million, beating the consensus of $375.5 million. Total Payment Volume of $33.4 billion increased 3% Y/Y.
  • Segments: US Acquiring revenue rose 13.7% Y/Y to $187.2 million, eCash revenue declined 7.9% Y/Y to $95.7 million, Digital Wallets revenue fell 19% Y/Y to $78.8 million, and Integrated & Ecommerce Solutions revenue decreased 3.6% Y/Y to $25.6 million.
  • The adjusted EBITDA margin contracted 370 bps to 27.2%. 
  • Paysafe held $2.7 billion in cash and equivalents, including customer accounts, and generated $875.6 million in operating cash flow.
  • Non-GAAP EPS was $0.05 versus $0.09 a year ago.
  • Outlook: Paysafe expects Q3 revenue of $350 million - $365 million, below the consensus of $383.5 million.
  • Paysafe cut its FY22 revenue guidance from $1.53 billion – $1.58 billion to $1.47 billion - $1.49 billion, below the consensus of $1.53 billion.
  • Price Action: PSFE shares traded lower by 15.7% at $1.83 in the premarket on the last check Wednesday.

Posted In: Briefswhy it's movingEarningsNewsPenny StocksGuidanceSmall CapMoversTechTrading Ideas