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PaySign (PAYS) 5 Nov 24 2024 Q3 Earnings call transcript

AInvestWednesday, Nov 6, 2024 12:44 pm ET
1min read

In a recent earnings call, Paysign, Inc. reported significant growth in both revenue and profitability for the third quarter of 2024. The company, which specializes in patient affordability and plasma donor compensation services, demonstrated impressive year-over-year growth across its key business segments.

Financial Performance and Outlook

Paysign reported a 23% increase in total revenues for the third quarter, reaching $15.3 million, with a 20.6% growth in adjusted EBITDA to $2.8 million. The company's gross margins also improved significantly, rising by 440 basis points to 55.5%. These positive figures are a testament to Paysign's ability to capitalize on market opportunities and overcome operational challenges.

Looking ahead, the company expects to maintain its growth trajectory, with total revenues projected to be in the range of $56.5 million to $58.5 million for the year, reflecting a year-over-year growth of 20% to 24%. The company's patient affordability segment is expected to contribute significantly to this growth, potentially reaching 25-30% of the total revenues in 2025.

Patient Affordability Business

The patient affordability business was a standout performer for Paysign, with revenue growing by 219% year-over-year to $3.3 million. The segment's success is attributed to the addition of new pharma patient affordability programs, which have not only accelerated revenue growth but also reduced program acquisition costs and created immediate revenue opportunities. The company plans to onboard several more programs in the fourth quarter, including a new cornerstone account from a leading pharmaceutical company.

Plasma Donor Compensation Business

While the plasma donor compensation business faced some challenges in the third quarter, with hurricanes and staffing shortages impacting operations, the segment still managed to grow by 3.4% year-over-year to $11.4 million. The company is committed to enhancing the productivity and efficiency of its services to offset these external challenges.

Market Opportunities and Competition

Paysign's unique focus on patient affordability sets it apart from its competitors, including ConnectiveRx, TrialCard, Eversana, IQVIA, and McKesson's CoverMyMeds. The company's transparent pricing model and innovative technology, which includes proprietary algorithms and virtual payment solutions, are attracting attention in the market. While there are challenges, such as legal fees and staffing shortages, Paysign remains optimistic about its future prospects.

Conclusion

Paysign's third quarter earnings call presented a positive outlook for the company, highlighting its ability to navigate challenges and capitalize on market opportunities. With a strong pipeline of patient affordability programs and a focus on innovation, Paysign is well-positioned for continued growth in the coming quarters. As the healthcare industry evolves, Paysign's niche services are becoming increasingly valuable, making it an exciting player to watch in the health care payments sector.

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