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Is This an Overreaction to Paysafe Earnings?

By Jose Najarro – Aug 19, 2021 at 9:00AM

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Paysafe's stock price dropped big after reporting earnings.

In today's video I look at Paysafe's (PSFE -2.80%) most recent earnings and share both bullish and bearish views on its earnings report. Here are some highlights from the video. 

  1. Paysafe reported its second-quarter 2021 earnings before the market open on Aug. 16. The company reported 13% year-over-year (YoY) revenue growth driven by roughly 37% YoY growth in its eCash solutions. Its total revenue growth would have been higher, but it was offset due to a revenue impact from a business divestiture in October 2020. 
  2. In August, Paysafe has entered two definitive agreements to acquire PagoEfectivo and SafetyPay. The two acquisitions will accelerate its eCash business segment in Latin America. PagoEfectivo is expected to close by the end of August, and SafetyPay is expected to close in the fourth quarter of 2021.
  3. Paysafe reaffirmed its 2021 guidance of roughly 10% YoY revenue growth and 62% gross profit margin at the midpoint of its guidance. 

Click the video below for my full thoughts and analysis. 

*Stock prices used were the midday prices of Aug. 16, 2021. The video was published on Aug. 16, 2021.

Jose Najarro has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Stocks Mentioned

Paysafe Limited Stock Quote
Paysafe Limited
$1.39 (-2.80%) $0.04

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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