Paysign, Inc. (NASDAQ:PAYS) is a leading provider of prepaid card programs, comprehensive patient affordability offerings, digital banking services, and integrated payment processing. The company has demonstrated remarkable financial performance, with annual net income of $6,458,727, annual revenue of $47,274,162, annual operating cash flow of $27,620,624, and annual free cash flow of $20,571,946.

Recent Developments

In the second quarter of 2023, Paysign reported total revenues of $14.3 million, a robust increase of 29.8% compared to the same period in 2022. This growth was driven by a 12.6% increase in plasma revenue to $11.3 million and a staggering 266.8% increase in pharma patient affordability revenue to $2.7 million. The company's gross profit margin expanded by 207 basis points to 52.9%, reflecting the increasing contribution from the higher-margin patient affordability business.

Business Overview

Paysign's patient affordability business has been a major catalyst for the company's growth, with revenue from this segment increasing by 267% year-over-year. The number of claims processed increased by 365% versus the same quarter last year, and patient affordability alone contributed to 59% of the company's total revenue growth. Paysign added eight new patient affordability programs during the quarter, bringing the total to 61 active programs. The company currently manages programs for six of the 20 largest pharmaceutical companies in the world, including a significant expansion of its partnership with AstraZeneca.

The company's plasma donor compensation business also performed well, with revenue increasing by 13% to $11.3 million. Paysign added eight new plasma centers during the quarter, reaching a total of 477 centers, and plans to add another five to 10 centers by the end of 2023. The average monthly revenue per plasma center increased by 4.4% to $7,916.

Financials

Paysign's selling, general, and administrative (SG&A) expenses increased by 13.5% during the quarter, primarily due to investments in compensation, technology, and customer service to support the company's growth. Depreciation and amortization expense increased by 50.3%, reflecting the continued investment in the company's technology platform.

The company's net income for the quarter was $697,102, or $0.01 per diluted share, a significant improvement from the net loss of $104,156, or $(0.00) per diluted share, reported in the same period last year. Paysign's adjusted EBITDA, a non-GAAP metric, increased by 95.8% to $2.2 million, or $0.04 per diluted share.

Liquidity

Paysign's balance sheet remains strong, with $31.3 million in unrestricted cash and zero debt as of June 30, 2023. The company's restricted cash balance increased to $102.2 million, primarily due to growth in customer programs and funds on cards.

Outlook

Looking ahead, Paysign has raised its full-year 2023 guidance. The company now expects total revenues to be in the range of $56.5 million to $58.5 million, reflecting year-over-year growth of 20% to 24%. Plasma revenues are estimated to account for approximately 78% of total revenue, while pharma revenue is expected to account for approximately 20%. Gross profit margins are expected to be between 54% and 55%, and the company plans to continue investing in people and technology to support the growth of its business.

Conclusion

Paysign's success in the patient affordability and plasma donor compensation markets, coupled with its strong financial position and growth prospects, make it a compelling investment opportunity in the fintech and healthcare payments space. The company's innovative solutions, diversified customer base, and focus on operational excellence position it well to capitalize on the growing demand for its services.