Paysafe was falling sharply Thursday after the the online payments company reported third-quarter sales that missed estimates and it made downward revisions to its full-year outlook.
Shares of Paysafe (ticker: PSFE) plummeted 41.1% to $4.28 on Thursday.
Paysafe reported sales of $354 million in the quarter, below analysts’ forecasts of $370.6 million and down from $355 million a year earlier. The company said total payment volume in the quarter rose 19% to $31.1 billion.
Adjusted Ebitda of $106.4 million fell 1% but topped estimates of $104.7 million. The loss in the quarter was $147.2 million, compared with a year-earlier loss of $38.1 million.
The UK-based end-to-end mobile solution provider operates in three segments: integrated processing, digital wallet and eCash solutions.
Paysafe attributed the drop in sales to the “exit of certain clients in the direct marketing vertical within the Integrated Processing segment.” The company also saw weaker-than-expected performance within its digital wallet business, where revenue fell 15%.
The challenges at the digital wallet segment led Paysafe to lower revenue expectations in full-year 2021. The company said it expects revenue of $1.47 billion to $1.48 billion, down from previous guidance of $1.53 billion to $1.55 billion. The company also said it revised expectations lower due to gambling regulations and softness in European markets.
Expectations for adjusted Ebitda in 2021 were lowered to $425 million to $435 million. It previously expected $480 million to $495 million.“Our position to win in high growth and disruptive markets including online sports betting and crypto continues to accelerate, coupled with strong delivery against our cost and technology platform targets,” said CEO Philip McHugh.
Write to Karishma Vanjani at [email protected]
