Paysign, Inc. Reports Fourth Quarter and Full-Year 2023 Financial Results
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Insights
The reported growth in total revenues and net income for the full year 2023 indicates a positive performance for Paysign, Inc., which seems to be driven by strategic expansions in both plasma center operations and pharma patient affordability programs. The 24% increase in total revenues and a significant rise in net income from $1.0 million to $6.5 million reflect a strong operational year. The uptick in Adjusted EBITDA by 21% also suggests effective cost management despite the increase in cost of revenues by 35%.
An important aspect to consider is the company's zero-debt status coupled with an increase in unrestricted cash to $17.0 million, which may provide financial flexibility and resilience against market volatility. Furthermore, the repurchase of shares could be seen as a sign of confidence in the company's future by its management. However, investors should be mindful of the gross profit margin decrease, which may signal rising costs or pricing pressure in the business segments.
The expansion of the plasma center count by 20 and the launch of new patient affordability programs have been pivotal in driving revenue growth, particularly in the plasma and pharma segments. Notably, the plasma segment now holds approximately 39% market share in the U.S., which is a substantial footprint. The 172% increase in pharma patient affordability revenue is indicative of successful penetration and adoption of these programs within the pharmaceutical industry.
It is also noteworthy that the company anticipates continued growth in the pharma patient affordability business, expecting triple-digit growth. This optimism is grounded in the robust pipeline and strategic leveraging of disruptions in the pharmaceutical payments space. The focus on this segment could be a strategic move to diversify revenue streams and reduce dependency on the plasma business, which currently makes up a significant portion of total revenue.
The financial results of Paysign, Inc. reflect broader economic trends, such as the impact of wage inflation pressures on customer service expenses. The company's ability to increase its net income in the face of rising costs suggests effective operational leverage and the potential for scalable growth. The reported increase in interest income due to higher average cash balances and interest rates also highlights the impact of the macroeconomic environment on corporate earnings.
Looking ahead, the forecast for continued revenue growth in 2024, with plasma and pharma segments as key drivers, suggests confidence in the underlying market demand for these services. However, the company's forward-looking statements regarding expected revenue and adjusted EBITDA growth should be considered in the context of economic conditions, including interest rate movements and labor market tightness, which could affect operational costs and consumer spending patterns.
For the Full Year
- Full-year 2023 total revenues of
$47.3 million , up24% from full-year 2022 - Full-year 2023 net income of
$6.5 million , or diluted earnings per share of$0.12 , versus net income of$1.0 million , or diluted earnings per share of$0.02 for full-year 2022 - Full-year 2023 Adjusted EBITDA of
$6.7 million , up21% from$5.5 million a year ago, while diluted Adjusted EBITDA per share was$0.12 versus$0.10 for full-year 20221 - Total plasma center count increased by 20 during 2023, exiting the year with 464 centers, contributing to a
21% increase in plasma revenue versus the same period last year - Launched 24 net new patient affordability programs during 2023, exiting the year with 43 active programs, leading to a
35% increase in pharma revenue and a172% increase in pharma patient affordability revenue over the same period last year - Exited the year with
$17.0 million of unrestricted cash and zero debt while repurchasing 394,558 shares of common stock for$1.1 million - Full-year 2023 gross dollar load volume was up
7% over 2022 - Full-year 2023 gross spend volume was up
10% over 2022
For the Fourth Quarter
- Fourth quarter 2023 total revenues of
$13.7 million , up29% from fourth quarter 2022 - Fourth quarter 2023 net income of
$5.6 million , or diluted earnings per share of$0.10 - Fourth quarter 2023 Adjusted EBITDA of
$2.5 million , up43% from$1.7 million a year ago, while diluted Adjusted EBITDA per share was$0.05 versus$0.03 for the fourth quarter 20221 - Added two net new plasma donation centers during the fourth quarter of 2023, exiting the quarter with 464 centers, helping contribute to a
19% increase in plasma revenue over the same period last year - Launched nine net new patient affordability programs during the fourth quarter of 2023, exiting the quarter with 43 active programs, leading to a
132% increase in pharma revenue and a247% increase in pharma patient affordability revenue over the same period last year - Fourth quarter 2023 gross dollar load volume up
9% versus the year-ago period - Fourth quarter 2023 gross spend volume was up
8% versus the year-ago period - Fourth quarter 2023 average revenue per plasma center per month of
$8,297 , up14% , versus$7,293 for the fourth quarter of 2022
1Adjusted EBITDA and Adjusted EBITDA per share are non-GAAP metrics used by management to gauge the operating performance of the business - see reconciliation of net income to Adjusted EBITDA at the end of the press release.
HENDERSON, NV / ACCESSWIRE / March 26, 2024 / Paysign, Inc. (NASDAQ:PAYS), a leading provider of prepaid card programs, comprehensive patient affordability offerings, digital banking services and integrated payment processing, today announced financial results for the fourth quarter and full-year 2023.
"We are exceptionally pleased with our financial performance in 2023, as it marked a year of continued strong growth for our company. Our year-over-year revenue grew by
2023 Full-Year Results
The following additional details are provided to aid in understanding Paysign's full-year 2023 results versus full-year 2022:
· | Total revenues increased |
o | Plasma revenue increased | |
o | Pharma revenue increased | |
o | Pharma patient affordability revenue increased | |
o | Other revenue increased by |
Cost of revenues increased | |
Gross profit increased by | |
Selling, general and administrative expenses increased by | |
Depreciation and amortization increased by | |
Other income increased by | |
We recorded an income tax benefit of | |
Net income of | |
"EBITDA," defined as earnings before interest, taxes, depreciation and amortization expense, which is a non-GAAP metric, increased by | |
"Adjusted EBITDA," which excludes stock-based compensation from EBITDA, and which is a non-GAAP metric used by management to gauge the operating performance of the business, increased by |
Quarterly Results
The following additional details are provided to aid in understanding Paysign's fourth quarter 2023 results versus the year-ago period:
Total revenues increased |
o | Plasma revenue increased | |
o | Pharma revenue increased | |
o | Pharma patient affordability revenue increased | |
o | Other revenue increased by |
Cost of revenues increased | |
Gross profit increased by | |
Selling, general and administrative expenses increased by | |
Depreciation and amortization increased by | |
Other income increased by | |
We recorded an income tax benefit of | |
Net income of | |
"EBITDA," defined as earnings before interest, taxes, depreciation and amortization expense, which is a non-GAAP metric, increased by | |
"Adjusted EBITDA," which excludes stock-based compensation from EBITDA, and which is a non-GAAP metric used by management to gauge the operating performance of the business, increased by |
2023 Year Milestones
Exited the quarter with approximately 6.4 million cardholders and approximately 600 card programs. | |
Year-over-year revenue increased | |
Plasma revenue increased | |
Pharma patient affordability revenue increased | |
Added 20 net new plasma donation centers, ending the year with 464 centers. | |
Launched 24 net new pharma patient affordability programs, ending the year with 43 active programs. | |
Repurchased 394,558 shares of common stock at a cost of | |
Unrestricted cash balances increased | |
Restricted cash balances increased |
Balance Sheet at Year-End 2023
Unrestricted cash increased
2024 Outlook
"We delivered solid fourth quarter and full-year 2023 financial results, meeting or exceeding our revenue and adjusted EBITDA guidance that we laid out over a year ago. Revenue for the year increased
"For the full-year 2024, we expect total revenues to be in the range of
"For the first quarter of 2024, we expect total revenue to be in the range of
Fourth Quarter 2023 and Full-Year 2023 Financial Results Conference Call Details
The company will hold a conference call at 5:00 p.m. Eastern time today to discuss its fourth quarter and full-year 2023 financial results. The conference call may include forward-looking statements. The dial-in information for this call is 877.407.2988 (within the U.S.) and +1.201.389.0923 (outside the U.S.). A call replay will be available until June 26, 2024, and can be accessed by dialing 877.660.6853 (within the U.S.) and +1.201.612.7415 (outside the U.S.), using passcode 13744283.
Forward-Looking Statements
Certain statements in this press release may be considered forward-looking under federal securities laws, and the company intends that such forward-looking statements be subject to the safe harbor created thereby. All statements, besides statements of fact included in this release are forward-looking. Such forward-looking statements include, among others, our anticipation of continued upward trajectory across all our business units; our belief that our patient affordability business, in particular, is poised for triple-digit year-over-year growth; our belief our patient affordability solutions have gained traction among major players in the pharmaceutical industry and that our robust pipeline positions us well for the future; our belief that we are strategically leveraging recent disruptions in the pharmaceutical payments space to our advantage; our belief that our unwavering commitment to sustainable top and bottom-line growth remains steadfast; our firm belief that our ongoing investments in this business unit will play a pivotal role in achieving our mission and maximizing long-term shareholder value; our belief that our decision five years ago to invest in our pharma patient affordability business as another growth engine is paying off, and our expectation for that momentum to continue throughout 2024; our expectations for total revenues, plasma percentage of total revenue, pharma revenue, the addition of new pharma patient affordability programs, gross profit margins, operating expenses, depreciation and amortization, stock-based compensation, interest income, net income and adjusted EBITDA for the full-year 2024; and our expectations for total revenue, gross profit margins, operating expenses and adjusted EBITDA for the first quarter of 2024. We caution that these statements are qualified by important risks, uncertainties and other factors that could cause actual results to differ materially from those reflected by such forward-looking statements. Such factors include, among others, the inability to continue our current growth rate in future periods; that a downturn in the economy, including as a result of COVID-19 and variants, as well as further government stimulus measures, could reduce our customer base and demand for our products and services, which could have an adverse effect on our business, financial condition, profitability and cash flows; operating in a highly regulated environment; failure by us or business partners to comply with applicable laws and regulations; changes in the laws, regulations, credit card association rules or other industry standards affecting our business; that a data security breach could expose us to liability and protracted and costly litigation; and other risk factors set forth in our Form 10-K for the year ended December 31, 2023. Except to the extent required by federal securities laws, the company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.
About Paysign, Inc.
Paysign, Inc. (NASDAQ:PAYS) is a leading financial services provider uniquely positioned to provide technology solutions tailored to the healthcare industry. As an early innovator in prepaid card programs, patient affordability, digital banking services and integrated payment processing, Paysign enables countless exchanges of value for businesses, consumers and government agencies across all industry types.
Incorporated in southern Nevada in 1995, Paysign operates on a powerful, high-availability payments platform with cutting-edge fintech capabilities that can be seamlessly integrated with our clients' systems. This distinctive positioning allows Paysign to provide end-to-end technologies that securely manage transaction processing, cardholder enrollment, value loading, account management, data and analytics and customer service. Paysign's architecture is known for its cross-platform compatibility, flexibility and scalability - allowing our clients and partners to leverage these advantages for cost savings and revenue opportunities.
Through Paysign's direct connections for processing and program management, the company navigates all aspects of the prepaid card lifecycle completely in house - from concept and card design to inventory, fulfillment and launch. The company's 24/7/365 in-house, bilingual customer service is facilitated through live agents, interactive voice response (IVR) and two-way SMS alerts, reflecting the company's commitment to world-class consumer support.
For more than two decades, Paysign has been a trusted partner for major pharmaceutical and healthcare companies, as well as multinational corporations, delivering fully managed programs built to meet their individual business goals. The company's suite of offerings include solutions for corporate rewards, prepaid gift cards, general purpose reloadable (GPR) debit cards, employee incentives, consumer rebates, donor compensation, clinical trials, healthcare reimbursement payments and copay assistance. For more information, visit paysign.com.
Contacts:
Paysign Investor Relations: | Paysign Media Relations: |
Paysign, Inc.
Condensed Consolidated Statements of Operation (Unaudited)
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenues | ||||||||||||||||
Plasma industry | $ | 11,515,419 | $ | 9,707,264 | $ | 41,951,659 | $ | 34,737,640 | ||||||||
Pharma industry | 1,705,969 | 733,908 | 4,051,037 | 3,007,140 | ||||||||||||
Other | 468,108 | 176,652 | 1,271,466 | 288,887 | ||||||||||||
Total revenues | 13,689,496 | 10,617,824 | 47,274,162 | 38,033,667 | ||||||||||||
Cost of revenues | 6,548,858 | 5,107,934 | 23,137,997 | 17,079,069 | ||||||||||||
Gross profit | 7,140,638 | 5,509,890 | 24,136,165 | 20,954,598 | ||||||||||||
Operating expenses | ||||||||||||||||
Selling, general and administrative | 5,330,258 | 4,417,006 | 20,276,842 | 17,700,651 | ||||||||||||
Depreciation and amortization | 1,178,384 | 778,378 | 4,026,578 | 2,909,612 | ||||||||||||
Total operating expenses | 6,508,642 | 5,195,384 | 24,303,420 | 20,610,263 | ||||||||||||
Income (loss) from operations | 631,996 | 314,506 | (167,255 | ) | 344,335 | |||||||||||
Other income | ||||||||||||||||
Interest income, net | 730,683 | 441,070 | 2,531,071 | 790,917 | ||||||||||||
Income before income tax (benefit) provision | 1,362,679 | 755,576 | 2,363,816 | 1,135,252 | ||||||||||||
Income tax (benefit) provision | (4,259,730 | ) | 42,481 | (4,094,911 | ) | 107,477 | ||||||||||
Net income | $ | 5,622,409 | $ | 713,095 | $ | 6,458,727 | $ | 1,027,775 | ||||||||
Net income per share | ||||||||||||||||
Basic | $ | 0.11 | $ | 0.01 | $ | 0.12 | $ | 0.02 | ||||||||
Diluted | $ | 0.10 | $ | 0.01 | $ | 0.12 | $ | 0.02 | ||||||||
Weighted average common shares | ||||||||||||||||
Basic | 52,736,483 | 52,232,986 | 52,487,840 | 52,048,127 | ||||||||||||
Diluted | 53,769,686 | 53,773,758 | 54,162,485 | 52,933,255 |
Paysign, Inc.
Condensed Consolidated Balance Sheets
December 31, | December 31, | |||||||
2023 | 2022 | |||||||
(Unaudited) | (Audited) | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 16,994,705 | $ | 9,708,238 | ||||
Restricted cash | 92,356,308 | 80,189,113 | ||||||
Accounts receivable, net | 16,222,341 | 4,680,991 | ||||||
Other receivables | 1,585,983 | 1,439,251 | ||||||
Prepaid expenses and other current assets | 2,020,781 | 1,699,808 | ||||||
Total current assets | 129,180,118 | 97,717,401 | ||||||
Fixed assets, net | 1,089,649 | 1,255,292 | ||||||
Intangible assets, net | 8,814,327 | 5,656,722 | ||||||
Operating lease right-of-use asset | 3,215,025 | 3,614,838 | ||||||
Deferred tax asset, net | 4,299,730 | - | ||||||
Total assets | $ | 146,598,849 | $ | 108,244,253 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued liabilities | $ | 26,517,567 | $ | 8,088,660 | ||||
Operating lease liability, current portion | 383,699 | 361,408 | ||||||
Customer card funding | 92,282,124 | 80,189,113 | ||||||
Total current liabilities | 119,183,390 | 88,639,181 | ||||||
Operating lease liability, long term portion | 2,928,078 | 3,311,777 | ||||||
Total liabilities | 122,111,468 | 91,950,958 | ||||||
Stockholders' equity | ||||||||
Common stock, | 53,452 | 52,650 | ||||||
Additional paid-in-capital | 21,999,722 | 19,137,281 | ||||||
Treasury stock, at cost, 698,008 and 303,450 shares, respectively | (1,277,884 | ) | (150,000 | ) | ||||
Retained earnings (deficit) | 3,712,091 | (2,746,636 | ) | |||||
Total stockholders' equity | 24,487,381 | 16,293,295 | ||||||
Total liabilities and stockholders' equity | $ | 146,598,849 | $ | 108,244,253 |
Paysign, Inc. Non-GAAP Measures
To supplement Paysign's financial results presented on a GAAP basis, we use non-GAAP measures that exclude from net income the following cash and non-cash items: interest, taxes, depreciation and amortization and stock-based compensation. We believe these non-GAAP measures used by management to gauge the operating performance of the business help investors better evaluate our past financial performance and potential future results. Non-GAAP measures should not be considered in isolation or as a substitute for comparable GAAP accounting, and investors should read them in conjunction with the company's financial statements prepared in accordance with GAAP. The non-GAAP measures we use may be different from, and not directly comparable to, similarly titled measures used by other companies.
"EBITDA" is defined as earnings before interest, taxes, depreciation and amortization expense. "Adjusted EBITDA" reflects the adjustment to EBITDA to exclude stock-based compensation charges.
EBITDA and Adjusted EBITDA are not intended to represent cash flows from operations, operating income (loss) or net income as defined by U.S. GAAP as indicators of operating performances. Management cautions that amounts presented in accordance with Paysign's definition of Adjusted EBITDA may not be comparable to similar measures disclosed by other companies because not all companies calculate Adjusted EBITDA in the same manner.
Paysign, Inc.
Adjusted EBITDA (Unaudited)
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Reconciliation of EBITDA and Adjusted EBITDA to net income: | ||||||||||||||||
Net income | $ | 5,622,409 | $ | 713,095 | $ | 6,458,727 | $ | 1,027,775 | ||||||||
Income tax (benefit) provision | (4,259,730 | ) | 42,481 | (4,094,911 | ) | 107,477 | ||||||||||
Interest income, net | (730,683 | ) | (441,070 | ) | (2,531,071 | ) | (790,917 | ) | ||||||||
Depreciation and amortization | 1,178,384 | 778,378 | 4,026,578 | 2,909,612 | ||||||||||||
EBITDA | 1,810,380 | 1,092,884 | 3,859,323 | 3,253,947 | ||||||||||||
Stock-based compensation | 695,223 | 653,723 | 2,853,643 | 2,277,717 | ||||||||||||
Adjusted EBITDA | $ | 2,505,603 | $ | 1,746,607 | $ | 6,712,966 | $ | 5,531,664 | ||||||||
Adjusted EBITDA per share | ||||||||||||||||
Basic | $ | 0.05 | $ | 0.03 | $ | 0.13 | $ | 0.11 | ||||||||
Diluted | $ | 0.05 | $ | 0.03 | $ | 0.12 | $ | 0.10 | ||||||||
Weighted average common shares | ||||||||||||||||
Basic | 52,736,483 | 52,232,986 | 52,487,840 | 52,048,127 | ||||||||||||
Diluted | 53,769,686 | 53,773,758 | 54,162,485 | 52,933,255 |
SOURCE: Paysign, Inc.
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