What happened
Shares of Paysafe (PSFE -0.70%), a payments platform, were skyrocketing this morning after the company reported better-than-expected fourth-quarter results.
Investors reacted positively to the company beating analysts' consensus estimate for revenue in the quarter and pushed the tech stock up by 10% as of 10:29 a.m. ET.
So what
Paysafe's sales of $371.7 million in the fourth quarter were essentially flat on a year-over-year basis, but that revenue easily beat Wall Street's consensus estimate of $357.4 million for the quarter.
Image source: Getty Images.
Not only did the company's revenue outpace analysts' expectations, but it also beat the company's own revenue guidance of $365 million for the quarter.
Paysafe CEO Philip McHugh said in a press release, "We are pleased with our fourth quarter results which exceeded our revised guidance for revenue and adjusted EBITDA."
The company's adjusted EBITDA rose 11% in the fourth quarter to $105.5 million and Paysafe's total payment volume jumped 20% to $31.5 billion.
Now what
With Paysafe outpacing analysts' consensus estimate for revenue in the fourth quarter, it's not surprising to see the company's share price rise today.
But while investors are happy with the most recent results, they should also be prepared for more market volatility ahead. Paysafe's share price is down 63% over the past six months, and with investors still digesting news about sky-high inflation, upcoming interest rate hikes from the Federal Reserve, and a conflict in Europe, the broader market could see more unpredictability in the months ahead.
