What happened
Shares of Paysafe (PSFE 1.29%) plunged on Monday, following the release of the digital payments company's second-quarter results. As of 2:50 p.m. EDT, Paysafe's stock price was down more than 15%.
So what
Paysafe's revenue rose 13% year over year to $384.3 million, fueled by a 41% surge in total payment volume, to $32.3 billion. Its net income, in turn, improved to $6.6 million, compared to a net loss of $15.9 million in the year-ago quarter.
"We are pleased with the continued momentum Paysafe exhibited over the second quarter with impressive growth and several key wins across iGaming and other attractive digital commerce verticals, including crypto," CEO Philip McHugh said in a press release.
Paysafe's shares fell sharply on Monday. Image source: Getty Images.
Investors, however, appeared to focus more on Paysafe's guidance. Management expects the company to generate revenue of $360 million to $375 million in the third quarter. That was below Wall Street's expectations for revenue of $389 million.
Now what
Looking beyond just the next quarter, McHugh highlighted Paysafe's attractive long-term growth prospects. "We remain confident in our 2021 outlook and the years ahead as we continue to see the combination of our e-commerce gateway, digital wallets, online banking, and eCash solutions as a true differentiator in the market," McHugh said.
To further its expansion, Paysafe agreed to acquire SafetyPay for $441 million. The digital payments platform would help to bolster Paysafe's e-commerce capabilities in the rapidly growing Latin American market.
