PaySign Inc Class B ((PAYS)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Paysign, Inc. highlighted a generally positive sentiment, driven by strong growth in the company’s patient affordability business and successful expansion strategies. Despite facing challenges in the plasma segment, such as declining revenue and the closure of underperforming centers, the company’s record revenue and strategic initiatives were key highlights that overshadowed these issues.
Record Revenue Growth
Paysign reported a record revenue of $19.1 million, marking a significant 33% increase compared to the second quarter of the previous year. This impressive growth underscores the company’s strong momentum in the market.
Improved Gross Margins
The company achieved an improvement in gross margins by 870 basis points, reaching 61.6%. This enhancement reflects Paysign’s increased operational efficiency and cost management.
Doubling Adjusted EBITDA
Paysign’s adjusted EBITDA doubled to $4.5 million, representing a 102% increase from the second quarter of 2024. This substantial growth in EBITDA highlights the company’s strong financial performance.
Significant Growth in Patient Affordability Business
The patient affordability business saw remarkable growth, with revenue increasing by 190% year-over-year to $7.75 million. Additionally, revenue per program rose by over 83%, showcasing the success of this segment.
Expansion of Plasma Centers
Paysign successfully onboarded 123 out of 132 awarded plasma centers, increasing its market share to approximately 50%. This expansion is a testament to the company’s strategic growth efforts.
Introduction of New Software Solutions
The company introduced a new Software-as-a-Service engagement platform for the plasma industry, which received positive feedback both domestically and internationally. This innovation is expected to enhance Paysign’s service offerings.
Decline in Plasma Revenue
Despite the overall positive performance, plasma revenue decreased by 4.7% year-over-year to $10.7 million, with a decline in revenue per plasma center. This highlights ongoing challenges in the plasma segment.
Closure of Underperforming Plasma Centers
A plasma customer plans to close 22 underperforming donation centers, which could impact donor retention and revenue. This closure is part of the company’s efforts to optimize its operations.
Ongoing Plasma Industry Headwinds
The plasma business continues to face challenges due to an oversupply of plasma and increased collection efficiencies, which are affecting short-term growth prospects.
Forward-Looking Guidance
Looking ahead, Paysign has raised its revenue guidance for 2025 to between $76.5 million and $78.5 million. The company expects plasma to constitute roughly 56% of this total, with the patient affordability segment projected to grow by over 145%. Paysign also plans to launch a new contact center in Q3 to meet increasing demand.
In summary, Paysign’s earnings call highlighted a strong performance driven by record revenue and strategic growth initiatives, particularly in the patient affordability segment. Despite challenges in the plasma business, the company’s forward-looking guidance suggests continued optimism and growth potential.