Paysafe Stock Tumbles After Q3 Earnings, 2021 Revenue Guidance Cut
Paysafe Limited (PSFE) - Get PAYSAFE LTD Report shares fell sharply Thursday after the online payment processing platform backed by Blackstone Group and CVC Capital Partners posted weaker-than-expected third quarter revenues and lowered its full-year profit forecasts.
Paysafe reported adjusted earnings of $106.4 million, with revenues of $353.6 million, as both figures fell 1% from the same period last year and missed Street forecasts.
Looking into the final months of the year, Paysafe said it sees adjusted earnings in the range of $425 million to $435 million, down $60 million from the higher end of its previous forecast, and sales of between $1.47 and $1.48 billion, down $700 million at the higher end.
TheStreet Recommends
“In the third quarter we reported Adjusted EBITDA in line with our expectations, despite softer than expected revenue, reflecting both market and performance challenges within the digital wallet business," said CEO Philip McHugh. "While the recent trend will drive an adjusted financial outlook, we continue to see strong momentum across the business."
"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,” he added.
Paysafe shares were marked 35.6% lower in early trading Thursday to change hands at $4.67 each.
London-based Paysafe went public in March through a merger with Foley Trasimene Acquistion II Corp., a so-called special purpose acquisition company, or SPAC, established by billionaire investor Bill Foley, who also owns the Las Vegas Golden Nights professional ice hockey team.
The group also sits in the portfolio of activist investor Dan Loeb's Third Point LLC.
