Paysign (PAYS) Sidoti Micro-Cap Virtual Conference summary

Company overview and business model

• Operates as a prepaid card provider focused on healthcare, handling payment processing, program management, and customer retention, with all services managed in-house except card issuance and printing.

• 98% of revenue comes from healthcare, primarily plasma donation payments and pharmaceutical patient affordability programs.

• Business model is transactional, earning revenue from interchange, cardholder fees, and program management fees.

• Holds strong compliance credentials, including PCI DSS, SOC 1 Type 2, HIPAA, and regular audits.

• Leadership and board have deep expertise in payments, banking, and pharmaceuticals.

Financial performance and growth

• Market cap is around $250 million, with trailing 12-month revenue just under $54 million and no debt.

• Adjusted EBITDA for the trailing 12 months is just under $9 million, with a margin of 15.6% in Q2, up from 10.3% a year earlier.

• Q2 2023 revenue grew 29.8% year-over-year; plasma business grew 13%, while patient affordability business surged 266%.

• Updated 2023 guidance projects $56.5–$58.5 million in revenue and 15–17% adjusted operating margin.

• Share repurchase program in place, with $1.1 million repurchased last year and $5 million authorized over 36 months.

Plasma donation and patient affordability businesses

• Plasma business has 40% market share with 477 donation centers, generating over $40 million in annual revenue.

• Patient affordability business grew from 21 to 61 programs in a year, with revenue expected to double to $10–$11 million in 2023.

• Patient affordability business targets a $500 million addressable market and is expected to reach $40+ million in revenue within five years.

• Offers transparent pricing and proprietary technology, including solutions for copay accumulators and maximizers, saving clients significant costs.

• International expansion is limited due to differing healthcare systems; U.S. remains the primary market.