- Paysafe Limited (NYSE:PSFE) reported third-quarter FY22 revenue growth of 4% year-on-year to $365.99 million, beating the consensus of $352.97 million.
- Total Payment Volume of $32.5 billion increased 5% Y/Y.
- Segments: US Acquiring revenue rose 12.4% Y/Y to $185.4 million, and Digital Commerce revenue fell 4.3% Y/Y to $180.6 million.
- The adjusted EBITDA margin contracted 400 bps to 26.1%.
- Paysafe held $2.4 billion in cash and equivalents, including customer accounts, and generated $106.5 million in free cash flow.
- Non-GAAP EPS was $0.00, in line with the consensus.
- Bruce Lowthers, CEO of Paysafe, commented: “We are pleased with our third quarter financial results, including 10% year-over-year constant currency revenue growth, marked by continued resiliency in the US SMB market and improvement in Digital Commerce.”
- Paysafe intends to hold a special meeting of shareholders on December 8, 2022, to seek approval for a 1-for-12 reverse stock split of common shares. If approved by shareholders, the reverse split is expected to be completed before year-end.
- Paysafe also renamed and realigned its two reportable segments.
- Outlook: Paysafe expects Q4 revenue of $370 million – $378 million.
- Paysafe raised its FY22 revenue guidance from $1.47 billion – $1.49 billion to $1.483 billion – $1.491 billion.
- Price Action: PSFE shares traded higher by 8.47% at $1.28 on the last check Thursday.
Cowen & Co. Downgrades PhaseBio Pharmaceuticals to Market Perform
Cowen & Co. analyst Phil Nadeau downgrades PhaseBio Pharmaceuticals (NASDAQ:PHAS) from Outperform to Market Perform.
