Paysign, Inc. Reports Third Quarter 2024 Financial Results
-
Third quarter 2024 total revenues of
, up$15.26 million 23.0% from third quarter 2023 -
Third quarter 2024 net income of
, or diluted earnings per share of$1.44 million , versus net income of$0.03 , or diluted earnings per share of$1.10 million for third quarter 2023$0.02 -
Third quarter 2024 Adjusted EBITDA of
, up$2.83 million 20.6% from for third quarter 2023, while diluted Adjusted EBITDA per share was$2.35 million versus$0.05 for third quarter 20231$0.04 -
Exited the quarter with 478 plasma centers, contributing to a
3.4% increase in plasma revenue versus the same period last year -
Exited the quarter with 66 active patient affordability programs, leading to a
219.1% increase in pharma patient affordability revenue over the same period last year -
Exited the quarter with
of unrestricted cash and zero debt$10.29 million -
Third quarter 2024 gross dollar load volume was up
1.8% compared to third quarter 2023 -
Third quarter 2024 gross spend volume was up
0.4% compared to third quarter 2023 -
Third quarter 2024 average revenue per plasma center per month of
, down slightly from$7,991 for third quarter 2023$8,041 -
Third quarter 2024 patient affordability claim volume increased
429.6% , versus third quarter 2023
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.
“We are pleased to report strong third-quarter results, achieving
Quarterly Results
The following additional details are provided to aid in understanding Paysign’s third quarter 2024 results versus the year-ago period:
-
Total revenues increased
23.0% , or . The increase was attributable to the following factors:$2.86 million -
Plasma revenue increased
, or$378 thousand 3.4% , primarily due to an increase in plasma locations, plasma donations and dollars loaded to cards, offset by a slight decline in the average monthly revenue per center of versus$7,991 during the same period last year. This period was impacted by center closures resulting from adverse weather conditions and employment shortages. We added one net new plasma location during the quarter, exiting the quarter with 478 centers.$8,041 -
Pharma patient affordability revenue increased
, or$2.25 million 219.1% , primarily due to the growth and launch of new pharma patient affordability programs. We added five net new patient affordability programs throughout the third quarter, exiting with 66 active programs. -
Other revenue increased by
, or$230 thousand 73.5% , primarily due to the growth in our payroll business and the growth and launch of new prepaid disbursement programs.
-
Plasma revenue increased
-
Cost of revenues increased
11.8% , or . Cost of revenues is comprised of transaction processing fees, data connectivity fees, data center expenses, network fees, bank fees, card production costs, postage costs, customer service, program management, application integration setup, fraud charges and sales and commission expense. The quarter-over-quarter increase in cost of revenues was primarily due to an increase in customer service expenses associated with wage inflation pressures and the overall growth in our business, an increase in cardholder usage activity and associated network expenses such as interchange and ATM costs, an increase in third-party program management associated with our pharma revenue, an increase in sales commissions related to the growth in our pharma patient affordability business and an increase in fraud losses.$715 thousand -
Gross profit increased by
, or$2.14 million 33.8% , primarily due to increased plasma and pharma patient affordability revenue. Our gross profit margin increased to55.5% versus51.1% in the prior year, an increase of 440 basis points, primarily due to a greater revenue contribution from our patient affordability business (21.5% versus8.3% ). -
Selling, general and administrative expenses (SG&A) increased by
, or$1.52 million 32.4% , and consisted primarily of an increase in (i) compensation and benefits of approximately due to continued hiring to support the company’s growth, a tight labor market and increased benefit costs; (ii) technologies and telecom of approximately$1.82 million primarily related to ongoing platform security investments; and (iii) all other operating expenses of approximately$279 thousand . This increase was offset by a decrease in stock compensation of approximately$16 thousand and a$136 thousand increase in the amount of capitalized platform development costs. We exited the quarter with 164 employees versus 112 employees at the end of the same period last year.$459 thousand -
Depreciation and amortization expense increased by
, or$520 thousand 49.8% , due mainly to the continued capitalization of new software development costs and equipment purchases related to the enhancement to our processing platform. -
Other income increased by
primarily related to an increase in interest income resulting from higher average cash balances.$185 thousand -
The effective tax rate for the quarter was based on the company’s forecasted annualized effective tax rate and was adjusted for discrete items. The quarter over quarter change is primarily due to changes to the company’s valuation allowance recorded on its net deferred tax assets and tax benefits related to stock-based compensation. The effective tax rate was
3.6% versus8.7% compared to the same period last year. -
Net income of
, or$1.44 million per diluted share, improved by$0.03 compared to net income of$336 thousand , or$1.10 million per diluted share, during the same period in the prior year. The overall change in net income relates to the factors mentioned above.$0.02 -
“EBITDA,” defined as earnings before interest, taxes, depreciation and amortization expense, which is a non-GAAP metric, increased by
, or$620 thousand 37.9% , to due to the factors mentioned above.$2.26 million -
“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
, or$484 thousand 20.6% , to , or$2.83 million per diluted share, due to the factors mentioned above.$0.05
Third Quarter 2024 Milestones
- Exited the quarter with approximately 7.1 million cardholders and approximately 640 programs.
-
Quarter-over-quarter revenue increased
23.0% . -
Plasma revenue increased
3.4% . -
Pharma patient affordability revenue increased
219.1% . - Added one net new plasma donation center, ending the quarter with 478 centers.
- Added five net new pharma patient affordability programs, ending the quarter with 66 active programs.
-
Restricted cash balances increased
8.6% from December 31, 2023, to , primarily due to increased growth in customer programs.$100.27 million
Balance Sheet at September 30, 2024
The company’s cashflows increased
Unrestricted cash decreased
Restricted cash increased
2024 Outlook
“We executed on another positive quarter with year-over-year quarterly revenues increasing
“The only update to the guidance that we provided during our second-quarter conference call relates to legal fees that we expect to expense during the fourth quarter related to the settlement of our class action and derivative lawsuits as further disclosed in our 10-Q that will be released prior to the market opening tomorrow. This expense was not anticipated at the time we provided financial guidance but we still anticipate our operating results to be within the ranges we provided despite this one-time expense. To reiterate, we expect total revenues to be in the range of
Third Quarter 2024 Financial Results Conference Call Details
The company will hold a conference call at 5:00 p.m. Eastern time on Tuesday, November 5, 2024, to discuss its third quarter 2024 financial results. The conference call may include forward-looking statements. The dial-in information for this call is 877.407.2988 (within the
Forward-Looking Statements
Certain statements in this press release may be considered forward-looking under federal securities laws, and we intend 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 expectation for the trend of increased gross margins to continue for the foreseeable future; our belief that we are making inroads in payment solutions outside of plasma compensation and patient affordability, as evidenced by an increase in other revenue, as we continue focus on exploiting additional high-growth opportunities in the payments space; our belief that we will remain on our current trajectory across our current businesses; our continued commitment to growing our company and maximizing long term shareholder value; our belief that full-year 2024 pharma patient affordability revenue is on track to equal approximately
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
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.
Paysign, Inc.
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Three Months Ended
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Nine Months Ended September 30, |
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2024 |
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2023 |
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2024 |
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|
2023 |
|||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Plasma industry |
|
$ |
11,439,534 |
|
|
$ |
11,061,712 |
|
|
$ |
33,080,830 |
|
|
$ |
30,436,240 |
|
Pharma industry |
|
|
3,274,888 |
|
|
|
1,026,270 |
|
|
|
8,338,433 |
|
|
|
2,345,068 |
|
Other |
|
|
542,009 |
|
|
|
312,343 |
|
|
|
1,358,841 |
|
|
|
803,358 |
|
Total revenues |
|
|
15,256,431 |
|
|
|
12,400,325 |
|
|
|
42,778,104 |
|
|
|
33,584,666 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
6,783,117 |
|
|
|
6,068,207 |
|
|
|
19,779,776 |
|
|
|
16,589,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
8,473,314 |
|
|
|
6,332,118 |
|
|
|
22,998,328 |
|
|
|
16,995,527 |
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
6,217,844 |
|
|
|
4,696,509 |
|
|
|
18,149,506 |
|
|
|
14,946,584 |
|
Depreciation and amortization |
|
|
1,565,621 |
|
|
|
1,045,177 |
|
|
|
4,291,648 |
|
|
|
2,848,194 |
|
Total operating expenses |
|
|
7,783,465 |
|
|
|
5,741,686 |
|
|
|
22,441,154 |
|
|
|
17,794,778 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
|
|
689,849 |
|
|
|
590,432 |
|
|
|
557,174 |
|
|
|
(799,251 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
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Other income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net |
|
|
800,715 |
|
|
|
615,324 |
|
|
|
2,345,416 |
|
|
|
1,800,388 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax provision |
|
|
1,490,564 |
|
|
|
1,205,756 |
|
|
|
2,902,590 |
|
|
|
1,001,137 |
|
Income tax provision |
|
|
53,727 |
|
|
|
105,152 |
|
|
|
459,555 |
|
|
|
164,819 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
1,436,837 |
|
|
$ |
1,100,604 |
|
|
$ |
2,443,035 |
|
|
$ |
836,318 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net income per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.03 |
|
|
$ |
0.02 |
|
|
$ |
0.05 |
|
|
$ |
0.02 |
|
Diluted |
|
$ |
0.03 |
|
|
$ |
0.02 |
|
|
$ |
0.04 |
|
|
$ |
0.02 |
|
|
|
|
|
|
|
|
|
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|
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|
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Weighted average common shares |
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
Basic |
|
|
53,450,613 |
|
|
|
52,548,101 |
|
|
|
53,102,454 |
|
|
|
52,404,049 |
|
Diluted |
|
|
56,051,960 |
|
|
|
53,484,674 |
|
|
|
55,613,026 |
|
|
|
54,286,492 |
|
Paysign, Inc.
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||||||||
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September 30,
(Unaudited) |
|
|
December 31,
(Audited) |
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ASSETS |
|
|
|
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|
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Current assets |
|
|
|
|
|
|
|
|
Cash |
|
$ |
10,293,207 |
|
|
$ |
16,994,705 |
|
Restricted cash |
|
|
100,272,166 |
|
|
|
92,356,308 |
|
Accounts receivable, net |
|
|
32,796,871 |
|
|
|
16,222,341 |
|
Other receivables |
|
|
1,736,387 |
|
|
|
1,585,983 |
|
Prepaid expenses and other current assets |
|
|
2,400,674 |
|
|
|
2,020,781 |
|
Total current assets |
|
|
147,499,305 |
|
|
|
129,180,118 |
|
|
|
|
|
|
|
|
|
|
Fixed assets, net |
|
|
1,138,492 |
|
|
|
1,089,649 |
|
Intangible assets, net |
|
|
11,561,703 |
|
|
|
8,814,327 |
|
Operating lease right-of-use asset |
|
|
2,900,611 |
|
|
|
3,215,025 |
|
Deferred tax asset, net |
|
|
3,873,953 |
|
|
|
4,299,730 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
166,974,064 |
|
|
$ |
146,598,849 |
|
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|
|
|
|
|
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
35,349,723 |
|
|
$ |
26,517,567 |
|
Operating lease liability, current portion |
|
|
424,366 |
|
|
|
383,699 |
|
Customer card funding |
|
|
100,091,865 |
|
|
|
92,282,124 |
|
Total current liabilities |
|
|
135,865,954 |
|
|
|
119,183,390 |
|
|
|
|
|
|
|
|
|
|
Operating lease liability, long-term portion |
|
|
2,601,801 |
|
|
|
2,928,078 |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
138,467,755 |
|
|
|
122,111,468 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
Common stock; |
|
|
54,324 |
|
|
|
53,452 |
|
Additional paid-in capital |
|
|
23,935,238 |
|
|
|
21,999,722 |
|
Treasury stock at cost, 798,008 and 698,008 shares, respectively |
|
|
(1,638,379 |
) |
|
|
(1,277,884 |
) |
Retained earnings |
|
|
6,155,126 |
|
|
|
3,712,091 |
|
Total stockholders’ equity |
|
|
28,506,309 |
|
|
|
24,487,381 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
166,974,064 |
|
|
$ |
146,598,849 |
|
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 or net income as defined by
Paysign, Inc.
|
||||||||||||||||
|
|
Three Months Ended |
|
|
Nine Months Ended |
|||||||||||
|
|
September 30, |
|
|
September 30, |
|||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|||||
Reconciliation of EBITDA and Adjusted EBITDA to net income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
1,436,837 |
|
|
$ |
1,100,604 |
|
|
$ |
2,443,035 |
|
|
$ |
836,318 |
|
Income tax provision |
|
|
53,727 |
|
|
|
105,152 |
|
|
|
459,555 |
|
|
|
164,819 |
|
Interest income, net |
|
|
(800,715 |
) |
|
|
(615,324 |
) |
|
|
(2,345,416 |
) |
|
|
(1,800,388 |
) |
Depreciation and amortization |
|
|
1,565,621 |
|
|
|
1,045,177 |
|
|
|
4,291,648 |
|
|
|
2,848,194 |
|
EBITDA |
|
|
2,255,470 |
|
|
|
1,635,609 |
|
|
|
4,848,822 |
|
|
|
2,048,943 |
|
Stock-based compensation |
|
|
573,499 |
|
|
|
709,750 |
|
|
|
1,907,588 |
|
|
|
2,158,420 |
|
Adjusted EBITDA |
|
$ |
2,828,969 |
|
|
$ |
2,345,359 |
|
|
$ |
6,756,410 |
|
|
$ |
4,207,363 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.05 |
|
|
$ |
0.04 |
|
|
$ |
0.13 |
|
|
$ |
0.08 |
|
Diluted |
|
$ |
0.05 |
|
|
$ |
0.04 |
|
|
$ |
0.12 |
|
|
$ |
0.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
53,450,613 |
|
|
|
52,548,101 |
|
|
|
53,102,454 |
|
|
|
52,404,049 |
|
Diluted |
|
|
56,051,960 |
|
|
|
53,484,674 |
|
|
|
55,613,026 |
|
|
|
54,286,492 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241105540064/en/
Investor Relations:
888.522.4810
paysign.com/investors
ir@paysign.com
Media Relations:
Alicia Ches
888.522.4850
pr@paysign.com
Source: Paysign, Inc.