What happened
Paysafe (PSFE -0.28%) stock is making big gains in Tuesday's trading. The fintech-services company's share price was up 18.4% as of 10:15 a.m. ET, according to data from S&P Global Market Intelligence.
Paysafe published its second-quarter results prior to the market opening this morning and reported sales and earnings for the period that beat Wall Street's expectations. The company recorded non-GAAP (adjusted) earnings of $0.56 per share on revenue of $402.3 million, handily beating the average analyst's estimate target for per-share earnings of $0.30 on revenue of $395.1 million.
So what
Paysafe's revenue rose 6.2% year over year in the second quarter, and total payment volume conducted across its platform increased 6% to reach $35.5 billion. The company recorded adjusted net income of $34.7 million in the period, declining roughly 7.5% year over year.
On the other hand, the company's GAAP net loss of $1.8 million in the quarter was far lower than the $658.7 million loss it posted last year due to a $676.5 million impairment charge it recorded in the quarter. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also rose 10% year over year to reach $113 million.
All in all, it was a strong quarter for the fintech. The company's management delivered good news with its forward targets, as well.
Now what
In addition to beating sales and earnings expectations for Q2, Paysafe raised its full-year guidance. The company had previously guided for revenue to come in between $1.58 billion and $1.6 billion this year, suggesting growth between 5.6% and 7%. On the heels of its stronger-than-expected second-quarter results and some encouraging demand momentum, the company now expects annual sales growth between 6.5% and 7.5%.
