Why Paysafe Stock Skyrocketed Today

Paysafe’s recent Q1 report arrived with reassuring results.

Paysafe (PSFE 20.23%) stock soared Tuesday following the release of the company’s first-quarter results. The payment technologies specialist’s share price closed out the daily session up 20.2%, according to data from S&P Global Market Intelligence.

Paysafe published its Q1 results after the market closed on Monday, posting sales and earnings for the period that beat Wall Street’s expectations. The business recorded non-GAAP (adjusted) earnings per share of $0.57 on sales of $417.7 million, beating the average analyst estimate’s call for per-share earnings of $0.55 on revenue of $408.2 million.

Paysafe posts solid sales and earnings expansion in Q1

Paysafe’s revenue increased 8% year over year in the first quarter, with gains largely driven by an increase in total payment volume. The total value of transactions processed through the company’s platform rose 7% compared to the prior-year period to reach $36.1 billion. Thanks to the improved sales picture, the business’s adjusted net income rose roughly 7% year over year to hit $35.3 million even as the company continued to expand its sales team.

Reiterated forward guidance sets aside cost concerns

With its Q1 report, Paysafe reiterated the full-year guidance for 2024 that it had issued with its previous quarterly report. The company expects revenue for this year to come in between $1.69 billion and $1.71 billion — a target range that was in line with the average analyst estimate’s call for sales of $1.7 billion.

Meanwhile, the company guided for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to be between $473 million and $488 million. The guidance range was in line with the company’s previous target, but it looks like some analysts had been expecting that management would issue a downward revision due to higher selling costs. With that concern seemingly out of the way and Paysafe’s strong performance beats in this year’s first quarter, investors poured into the stock today.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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