Paysign, Inc. (NASDAQ: PAYS) reported Q1 EPS of ($0.03), $0.04 worse than the analyst estimate of $0.01. Revenue for the quarter came in at $6.3 million versus the consensus estimate of $7.24 million.

• First-quarter total revenues of $6.3 million, a decrease of $4.3 million from first-quarter 2020
• First-quarter net loss of $1.6 million, or diluted earnings per share (EPS) of ($0.03)
• First-quarter adjusted EBITDA of ($0.4) million, or diluted adjusted EBITDA per share of ($0.01)
• First-quarter gross dollar load volume declined 15.2% versus the year-ago period and increased 12.2% versus the previous quarter
• First-quarter purchase volume declined 13.1% versus the year-ago period and was unchanged versus the previous quarter
• 2021 full-year financial outlook provided

“As expected, the first quarter is typically a seasonally weak quarter for our business due to the distribution of tax refunds. However, this year the weakness was exacerbated by the pandemic-related stimulus check distributions and unemployment subsidies which created a disincentive for individuals to donate plasma. While these stimulus measures will likely continue to impact our business through the third quarter of 2021, we remain cautiously optimistic that our businesses will continue to rebound as vaccinations become more prevalent and business restrictions are lifted,” said Mark Newcomer, Paysign CEO. “During the quarter we added three new plasma centers. So far this year, we have signed agreements with four new entrants in the plasma collection space, each with aggressive long-term growth plans, with initial centers expected to go live in the second quarter. We expect to add a total of 60 new plasma centers this year, exiting 2021 with at least 400 centers. Our average revenue per plasma center for the first quarter was $5,260, which we expect to be a low-water mark for 2021. Additionally, we continue to win new pharmaceutical copay business and expect three new programs to launch in the third and fourth quarters. With $6.6 million of unrestricted cash and zero debt on our balance sheet, we remain well-capitalized and positioned to weather any further impacts from the pandemic.”

GUIDANCE:

Paysign, Inc. sees FY2021 revenue of $29-32 million, versus the consensus of $37.13 million.

“While the first quarter continued to be impacted by COVID-19 and government stimulus measures, we believe those factors will begin to abate during the second half of the year and return us to growth in revenues and adjusted EBITDA both sequentially and year-over-year,” said Jeff Baker, Paysign CFO. “For the full year 2021, we expect total revenue to be in the range of $29.0 million to $32.0 million, reflecting growth of 20% to 32%, and adjusted EBITDA to be in the range of $0.35 million to $1.90 million. Gross profit margins are expected to be approximately 45.0%, or an increase of 640 basis points over 2020. Operating expenses are expected to increase modestly to $18.0 million to $18.5 million, or 2.0% to 4.9%.”

Baker concluded, “This outlook presumes that the second-quarter results are slightly better than the first-quarter results and that we begin to see a recovery in the business in the third quarter when unemployment subsidies are scheduled to end in early September. With a non-COVID-19-impacted fourth quarter, we estimate our plasma revenue could reach $27.5 million for the full year 2021 and increase by an additional $10.0 million in 2022.”

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