Paysign (PAYS) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 30% year-over-year to $14.3 million, driven by strong growth in plasma and pharma patient affordability businesses.

• Net income reached $697,000 (1 cent per diluted share), a turnaround from a net loss of $104,000 last year.

• Gross margin improved to 52.9% from 50.9% in Q2 2023.

• Adjusted EBITDA increased 95.8% to $2.24 million, with margin expansion from higher pharma revenue contribution.

• Growth attributed to new plasma centers and pharma patient affordability programs launched since June 2023.

Financial highlights

• Q2 2024 revenue: $14.3 million, up 29.8% year-over-year; gross profit margin improved by 200 basis points to 52.9%.

• Net income of $697,000 (1 cent per diluted share) versus a net loss of $104,000 last year.

• Adjusted EBITDA rose 96% to $2.2 million, margin improving to 15.6% from 10.3%.

• SG&A increased 13.5% to $6 million; total operating expenses up 19.1% to $7.5 million.

• Unrestricted cash at quarter-end was $31.3 million, with zero debt.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $56.5–$58.5 million, up 20–24% year-over-year.

• Plasma expected to contribute 78% and pharma 20% of total revenue.

• Gross profit margin forecasted at 54–55%; operating expenses at $30–32 million.

• Net income forecasted at $2–3 million (4–6 cents per diluted share); Adjusted EBITDA at $9–10 million (15–17% margin).

• Management expects available cash and forecasted revenues to sustain operations through at least Q2 2026.