Paysign, Inc. (NASDAQ: PAYS), a vertically integrated provider
of innovative prepaid card programs and processing services for
corporate, consumer, and government applications, today revised its
revenue guidance for its fiscal year ending December 31, 2019.
Total revenue is now expected to be in the range of $35.0 million
to $37.0 million, representing an increase of 50% to 58% compared
to $23.4 million for full year 2018. This revises the company’s
previous guidance of $38.0 million to $40.0 million. The company’s
Adjusted EBITDA guidance remains unchanged at $10.0 million to
$12.0 million, representing a 104% to 145% increase compared to
$4.9 million for full year 2018. The company continues to
experience gross margin expansion and improved operating leverage
during 2019 when compared to full year 2018.
The revised guidance primarily reflects delays in onboarding of
new plasma industry programs planned for the first and second
quarters of 2019. The resulting revenue shortfall has been
partially offset to date by better than expected revenue from the
company’s pharmaceutical industry programs. The delayed plasma
programs are now planned to be live by the end of September and are
expected to materially increase the company’s monthly plasma
industry revenue.
“Although we are disappointed that recent events have impacted
our second half revenue expectations, we remain excited about our
continued growth and sales pipeline in both pharma and plasma, as
well as opportunities in additional verticals,” said Mark Newcomer,
CEO of Paysign. “We remain optimistic with respect to our future
and remain committed to the growth of both new and existing product
lines.”
Projected Financial Information and Non-GAAP Measures
The guidance included in this press release was not prepared
with a view to complying with generally accepted accounting
principles as applied in the United States (“GAAP”) or the
guidelines established by the American Institute of Certified
Public Accountants for preparation and presentation of prospective
financial information. Furthermore, the company’s independent
registered public accounting firm has not examined, compiled, or
performed any procedures with respect to the guidance. The guidance
included in this press release has been prepared by the company’s
management and is subjective in many respects.
Although the guidance is presented with numerical specificity,
the guidance reflects estimates made by the company’s management
and numerous assumptions with respect to the company’s ability to
achieve strategic goals, objectives, and targets, industry
performance, regulatory environment, general business, economic,
market, and financial conditions, and other important factors that
may affect actual results and cause the guidance not to be
achieved. The guidance is only an estimate of what management
believes is realizable as of the date of release. The guidance
constitutes forward-looking statements and does not take into
account any circumstances or events that may occur after the date
hereof. As a result, there can be no assurance that the guidance
will be realized, and actual results may be materially better or
worse than those contained in the guidance. The guidance should be
evaluated, if at all, in conjunction with the historical financial
statements and other information regarding the company contained in
its public filings with the Securities and Exchange Commission
(“SEC”). For information on factors that may cause the company’s
future results to materially vary, see “Forward-Looking Statements”
below.
Except to the extent required by applicable federal securities
laws, the company does not intend, and expressly disclaims any
responsibility, to update or otherwise revise the guidance to
reflect circumstances existing after the date hereof, or to reflect
the occurrence of future events or changes in general economic or
industry conditions, even in the event that any of the assumptions
underlying the guidance are shown to be in error.
Furthermore, a measure included in the guidance, Adjusted
EBITDA, is a non-GAAP financial measure. Non-GAAP financial
measures should not be considered in isolation from, or as a
substitute for, or superior to, financial information presented in
compliance with GAAP, and non-GAAP financial measures as used by
the company may not be comparable to similarly titled measures used
by other companies. The company defines Adjusted EBITDA as net
income less the following cash and non-cash items: interest, taxes,
stock-based compensation, amortization, and depreciation. The
company believes this non-GAAP measure helps investors better
evaluate its past financial performance and potential future
results. Additionally, such measure helps compare the company’s
performance on a consistent basis across time periods.
The company is not providing a quantitative reconciliation of
this forward-looking non-GAAP financial measure. In accordance with
Item 10(e)(1)(i)(B) of Regulation S-K, a quantitative
reconciliation of a forward-looking non-GAAP financial measure is
only required to the extent it is available without unreasonable
efforts. The company does not currently have sufficient data to
accurately estimate the variables and individual adjustments for
such reconciliation, or to quantify the probable significance of
these items at this time. The adjustments required for any such
reconciliation of the company’s forward-looking non-GAAP financial
measure cannot be accurately forecast by the company, and therefore
the reconciliation has been omitted.
About Paysign, Inc.
Paysign, Inc. (NASDAQ: PAYS) is a vertically integrated provider
of innovative prepaid card programs and processing services for
corporate, consumer, and government applications. Its payment
solutions are utilized by corporate customers as a means to
increase customer loyalty, increase patient adherence rates, reduce
administration costs, and streamline operations. Public sector
organizations can utilize Paysign’s payment solutions to disburse
public benefits or for internal payments. Through the Paysign
platform, it provides a variety of services, including transaction
processing, cardholder enrollment, value loading, cardholder
account management, reporting, and customer service. Paysign has
developed prepaid card programs for corporate incentive and
rewards, including, but not limited to, consumer rebates and
rewards, donor compensation, demand deposit accounts accessible
with a debit card, healthcare reimbursement payments, and
pharmaceutical payment assistance. Paysign® is a registered
trademark of Paysign, Inc. in the United States and other
countries. For more information visit Paysign at paysign.com or
follow Paysign on LinkedIn, Twitter, and Facebook.
Forward-Looking Statements
Certain statements contained in this press release may be deemed
to be forward-looking statements under federal securities laws, and
the company intends that such forward-looking statements be subject
to the safe-harbor created thereby. All statements, other than
statements of fact, included in this release, are forward-looking
statements. Such forward-looking statements include, among others,
the company’s expected total revenue and Adjusted EBITDA for fiscal
2019; the company’s belief that it continues to experience gross
margin expansion and improved operating leverage during 2019 when
compared to full year 2018; the expectation that the delayed plasma
programs are planned to be live by the end of the third quarter and
will materially increase the company’s monthly plasma industry
revenue; the company’s excitement about its continued growth and
sales pipeline in both pharma and plasma as well as opportunities
in additional verticals; and the company’s optimism with respect to
its future and its commitment to the growth of both new and
existing product lines. We caution that these statements are
qualified by important risks, uncertainties, and other factors that
could cause actual results to differ materially from those
reflected by such forward-looking statements. Such factors include,
among others, the risks detailed from time to time in the company’s
reports filed with the SEC, including its Annual Report on Form
10-K for the fiscal year ended December 31, 2018. Except to the
extent required by federal securities laws, the company undertakes
no obligation to publicly update or revise any statements in this
release, whether as a result of new information, future events, or
otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190909005345/en/
Paysign, Inc. Jim McCroy, 702-749-7269 Investor Relations
ir@paysign.com www.paysign.com
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