Today's video focuses on Paysafe Limited (PSFE 1.25%) and its recent earnings, reported on Nov. 10 after the market closed. Here are some highlights from the video.
- Paysafe missed revenue expectations and lowered its full-year guidance, causing a massive sell-off in its stock price. The decline in revenue is due to numerous events: a greater-than-expected drop in its digital wallet segment, the exit of certain clients within its integrated processing segment, and gambling regulations and softness in Europe.
- Despite the setbacks, management is still focusing on its growth segments. In North America, its online gambling revenue has grown 50% year to date. It is important to note that this is still a small portion of Paysafe's revenue.
- Paysafe recently completed its acquisition of PagoEffectivo and Viafintech. These two acquisitions increase Paysafe's market in Latin America and Germany.
Click the video below for my full thoughts and analysis.
*Stock prices used were the midday prices of Nov. 11, 2021. The video was published on Nov. 11, 2021.