PaySign (PAYS) 31 Jul 242024 Q2 Earnings call transcript

Good afternoon. My name is Kevin, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Paysign, Inc.

Second Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. The comments on today's call regarding Paysign's financial results will be on a GAAP basis unless otherwise noted. of disseminated on SEC of the paysign.com, includes was can today our release GAAP which found to be Investor reconciliations earnings to earlier the and website, reported Paysign's amounts. measures non-GAAP Relations section

could these in the performance. forth to future I'd end differ Actual affect that call performance detail everyone factors statements forward-looking from earnings will release, could recent Additionally, as release include summarized more forward-looking regarding SEC are our about at set Paysign's today's in of that statements. and like Information remind our Paysign's in performance materially filings. future the earnings

how Lastly, Newcomer, to CEO. be over Paysign's to available replay. It's Mark a now Please turn will to call see Mr. call second XXXX. of replay until quarter the October on announcement call access Please my this the pleasure ahead. XX, earnings go details for

in financial our our quarter report Officer. Today, and welcome I'm during Chief CEO by Affordability; Second Alongside Jeff you, session, Matt everyone, we Paysign's achieved our both bottom of discussion remarkable the Later we've Chief Quarter Kevin. of Baker, that and be will we and for Matt our and President shared question-and-answer top sequentially Lanford, President to the Turner, XXXX. year-over-year Patient is I'm our to our results second Call. and Financial Earnings of Payments today Newcomer, for Officer. pleased both afternoon, Good the me Thank joined Paysign. lines. Mark growth, and

first of of increase compared the nearly million, XXXX. to second Our XXXX a quarter quarter second the revenue robust XX% $XX.X X.X% reached an from and of for the quarter increase

last from diluted $X.XX diluted this our XX% a rise million, exceptional our share translating revenue segment a the per fully year or million second adjusted by affordability to XXX% EBITDA highlight this $X.X is substantial increased same last has to catalyst a major for of quarter contributed of business, XXX% of quarter revenue been $X.XX affordability pivotal increased same processed to A earlier. impressively year-over-year Patient from $X.XX to our growth. year XXXX be per patient Our point gross significant year. XX% which of this fully the million increased from performance and alone The growth $X.XX our of increase quarter in the margin. share, proven to has in the quarter by versus in claims roughly total XXX basis the from year. The in same $XXX,XXX number quarter has

to expect driver remains margin as continue this company. affordability expansion We see patient the of growth dominant the

period, and this specialty patient new programs. our During total added XX retail both programs, affordability to including active bringing brands, X we

are has from to proud of particularly wins our of clients them. which multiple solutions, We led our have the in confidence many

quarter the programs of then, AstraZeneca the have classes therapeutic only in we from XXXX, the number total of retail a by increased of XX client, a and of covering as the their example, new largest we This second programs companies new X manage For therapies, a to world. a of include currently array onboarded and and X cornerstone pharmaceutical initial end encompass is quarter. The for programs. third AstraZeneca. the XX Since transition the mix we of programs specialty example in both wide launch one of

later leadership secure in extremely This scaling solutions slated our our XXXX. and for filled launch year market. forward robust, to promising we remains this Our with as patient position momentum continue us positions into sales the affordability pipeline opportunities

are that these We cash our flow confident operational ambitions. robustly support will

in revenue new quarter $XX.X plasma last to year X million, we quarter, last rising year. We centers same to increase growth year center an first increase strong by this increase X by to to performance in is donor revenues reaching added this this with our supported quarter X.X% compensation $X,XXX and per add This year. from over in X.X% plasma another showed Additionally, centers XX% business a this of a and also XXX quarter $X,XXX plasma the plan centers, quarter year-end. XX from second a the revenue total of of

to Our expansion. a clients expansion of helping center underscores period our focus commitment on rapid enhancing our productivity after

pioneering significant Paysign our stable the thanks shareholders. I deepest will second business my the compensation are plasma plasma We future. To quarter we making growth member into would positioned our your are will another pass the shareholder of patient the that in extend that of are delve period future landscape, business key our to business details financial of opportunities the new for affordability well With growth innovative value call donor for for to for fintech effort and health like and anticipating steady success. I now beyond. and to opportunities propels their moderate remain to substantial patient commitment. XXXX payments investments over is we capitalize our value ongoing solutions poised our to dedicated affordability team is in payments conclude, long-term dedication deeper work that evolving in care the and business. deliver revenue enhancing in It foreseeable the of and exploration relentless and who our quarter. every to hard on considerably. We growth, Jeff, in growth, particularly address marks in advanced The yield substantial and in challenges

Mark. you, everyone. Good afternoon, Thank

programs, XXX an $X.XX remained $X.XX an plasma XX.X% dollar while to another average the said, million in We months. per revenue equated all total last XX in the the pharma of launched affordability the increased of XX.X% XX.X% the increase of spend versus by year. addition Pharma solid by driven center past programs monthly gross last affordability net with Mark revenue $XX.XX pharma quarter Plasma or amounts to payroll, affordability $X.XX corporate revenue revenue in XXX% versus period an patient during of patient increase volume, versus revenue quarter. revenue million, same $XX,XXX patient the gross during As donor in other X.X% a patient compensation new the affordability programs since same had card $X,XXX, year active the increased increase more to we to of the retail XXX, or average XX due versus and steady. Pharma the increased loads driven quarter $XXX,XXX the XX businesses. growth incentive load exited to or primarily our $X,XXX plasma and XX.X% XX million XXXX. Other centers, XX.X% period million, end over increase fairly

year. in will with second hit we I details same all XX-Q the XXXX in in release be the tomorrow morning, simply our financial filing highlights of quarter calls, available As for period provided press the will of the and previous that versus last the

total XX.X% $X the the the second margin expenses last First, an quarter versus $X.X increased $X.X versus during quarter $XX.X with operating revenues million total year, last up million. XXXX million of increased XX.X% XX.X% for or the was million points. SG&A same quarter same of Gross XX.X% to profit year. to improvement increasing period period for basis XXX XX.X%

versus year. our our period continued make exited to quarter of We significant support investments the growth continue We same IT XXX and last affordability this XXX patient business. employees especially with in business, personnel the during to

share We tax net we breakeven year. for $XXX,XXX for of expense posted of or the the loss of XX.X%. per same $X.XX a or For net diluted tax fully just an per during period $XXX,XXX recorded $XXX,XXX share under the a last effective of income quarter quarter, a versus rate

shares. Our XX.X was share count million diluted fully for the quarter

versus respectively, shares the positive used the adds amount the year-over-year million calculated during measure share margin XX.X% were quarter in-the-money adjusted stock The XX.X% which same same year, for improved diluted that was adjusted share XX.X our is This EBITDA. back that the which of EBITDA, fully million per in options or non-GAAP for period the business EBITDA XX.X per XX% to $X.XX model. second year. adjusted last a in previously quarter further diluted leverage The million the period reflects our to out is million additional $X.X last growth operating highlighting share a or to was $X.X $X.XX money. The EBITDA versus diluted and count per and shares, in equates share compensation

accounts company, million with of the was increase payable related take adjusted $X.X the at and and unrestricted the unrestricted the of our adjusted of in receivable, from collections an at $X impact from patient cash adjusted decline $XX.X $X.X cash but balance X end million This unrestricted balance business. the quarter Regarding million a cash $X.X cash XXXX. The our end the invoicing QX exited accounts adjusted XXXX, affordability of health the of million pass-through to million an debt. out of of amounts we of

refunds used the the per we affordability cover changes balances pharmaceutical patient amounts. for the amounts past, the paying in end the at co-pay of not period The revenue reimburse customers discussed the monthly As invoiced claim to to companies charge equate in such do for related patient claims. these claim affordability to

customers so as primarily the grows, XXXX, AP pharmaceutical claims funds liabilities. on cards million. Restricted of funding cash deposits used current We in Restricted December due expect the of increases and that for from unrestricted increased and offset plasma $X.X and with $XX will $XXX.X corresponding million our customer the to customer AR, funds are pharma cash and $X.X fluctuations for business cash. XX, in million million to card under a

under repurchases during our quarter, $X.X repurchase the program. not remains did share As share we million outstanding complete second any

turning pharma total growth of follows: are our relative are of technology XX% million. are remain account year-over-year be contribution Of to $X expected revenue. for XXXX initial gross Now XX% profit as estimated raising we and year our expenses increased expected revenues be million $XX the million, to approximately your and first is in XX% and million, and to guidance reflecting are during growth margins full revenues estimated between revenue total expectations, million total remain million continue range $X.X X while $XX revenue of to $X.X estimated unchanged year to are of and XX%, XX% from $XX.X business be of to are compensation to the between approximately expected of to revenue, for to guidance. is amortization Due to our as to and business. our in to people of account quarters outperformance this the patient the depreciation our expected affordability our while unchanged attention amount, million million investments business. Operating reflecting $X between year to to $XX.X the XX%. Plasma full make between we support year stock-based Full

of the our million. $X.X to and generate increases cash, current Given current daily interest -- expect average we $X interest rate and restricted million continued the to unrestricted environment, balance of in the income

to million XX.X per $X.XX between our diluted shares. Taking consideration, the fully $X.XX expect to I XX% turn in into and $X.XX like XX% EBITDA $XX per to share tax range range be million net all to our and be the Kevin to rate answers. of count the million and above revenues expect to share that, XX.X $X the diluted of $X share. With We call we XX% income diluted is to of outstanding back or $X factors total to XX% questions be for in $X.XX and million of which adjusted over million million, or to to to would to be

question is [Operator Prestopino Gary today first Barrington coming Instructions] Our from Research. from

questions of here. number A

all companies on your many currently have? you now programs pharmaceutical that working business, you how with of within of all patient First affordability the are

don't. in that I front This I of me, is Matt. number but [indiscernible] have did

think I in stands excess as right of it's XX% it now.

Gary, in of Keep are some direct. those mind,

are which hubs, number represent pharmaceutical different of companies. through a of Some those

-- hard pharma company with it's company, has I XYZ hub pharma it's they're So number. have another say no to relationship. the But if mean coming XYZ we through a that

if in So I that but said, don't XX%. -- Matt you, like that excess of know helps it's

customer as pipeline No, get building lot just coming then pharmas of build an your of look clients? pipeline the with anything you most of for? the that idea Or diversification just the at I of is from done pipeline that to is you the have a existing wanted And base. not

is pipeline new I say majority a clientele. No. the would of

is. It

Okay.

New just.. clients. Then

it's up mix, we've but to heard the so X We say a the now programs be Yes. -- have to between, that and commentary about obviously, you many pipeline movement been not if clients AstraZeneca the business next at and clients, are you've I is do there, continuing But multiple and at Mark's will programs. the year, launching the of going those pipeline clients right? XX. programs of to mean it's add say, that Like be as end lion's share to one time. of new look right,

we're account, say, cornerstone look looking the at we brand. when So of, from not perspective at a that just one

and more is an then and goal with brands begin prove time. migrate over ourselves them Our more in, to MSA, get go to

of So goal that's the there. kind

out So -- to be product new have current products there's get certainly to they're a potentially, that over, as all going new or not clients they new get stuff existing are but the their new they going service their launching there'll grow with mix. they're to vendor. There's that may or or for that be indications They paper. chunk of a then move -- decent entirely It's is stuff MSAs. satisfied we

do? pharmaceutical with Or And then walk of these let can programs that the you somebody from company of an Do away what they're performance just if you unhappy time? runs I'll are it a duration have contract you lastly, the else How and structured? for that actual go. something is

Yes.

I agreements that X see. years, And work I have each of probably about anywhere X I is we have service think, master in are X from average a the varying to that then program. -- So statement links. mean, guide that will guess, we we

of of contain those outs SOW, those Some do for MSAs clients. our some

forever. locked in So like it's not they're

about want. they're we reasons do why can of service don't of into make people. also talk the which hear you Mark we so So investing resources the leave they sure that we And if Jeff that services, unhappy is customer they providing that and financial the the with have we're issues and level service that one both

a of So long-term idea contract United these international, States. exists right? companies the And are only really of Gary, the listen. locked-in in lot A pharma

at you look go them overseas of over contracts If XX much all XX, XX, Europe and there, out days you to whatever pretty have for reason.

they'll do earn the every put is. the the you. where we're you good have job for willing we pharmaceutical a is And and if thing other good with to business stay money guys, our to day, So our mouth

day. very loyal, So to earn got they're you but business your every

have let some go. else do I somebody I'll Okay. follow-up questions.

go Gary, with please Instructions] [Operator follow-up. your ahead

Okay. a possibly business? Matt, for total on you could this And up size TAM the basis worldwide

We does sure don't that. But other want a we pedantic We've mailing of industry going believe the because it of a back lot inside the of worldwide as right exist to of now, the there. really kind math form TAM with patients ]. is where consultants that north last that. company takes something as help of XX,XXX not month a there are I the on I'm out us They pharma in our get napkin product know some The to to to basis $XXX and -- some million. a across of ecosystem, examples a we in the helped be no we is narrow company, hey, comes patient of -- us try down So tell it and we processed says, up last TAM entire don't health month. answer. size worked to not affordability like as at it byproduct here, math it in U.S. care or I'm countries that like far Paysign [ rebate but

don't we of have off So look of. have kind go numbers we -- to industry hard at can't to trends. We

to were your then I of as Okay. I SG&A support additional you're mean, and the I'm obviously, to positive going can I'm scale up don't have personnel margin. your to doing? start where reducing is lot mean this these an your you to But need that very building you you a they over as -- you're looking just in about XXX%. at programs, XX.X% you to there you're can up -- to support programs, and to eventually the leverage strong have what terms But gross add is it, quarter, you idea impact were SG&A there? trying get of And just expenses pharma revenues this

so on of Gary, look listen, a at So couple things to OpEx.

a development. right? of lot is there We're that's us the increases capitalizing growth, development of doing is DNA, byproduct IT software which the One part of costs, of bigger the and

number. to going get number, out comp of an your so and that a to you're back And back stock out you got kind to SG&A of then kind

side look at other to EBITDA margin. on the the your thing adjusted Now operating leverage is

XX.X% So up this from we XX.X% year. last did quarter,

X.X%. we First versus quarter, XX.X% did

operating we're this can't grow been So mean, numbers the to about given But as quarter new fourth those we've hire indications programs of it. and is that opportunities that you towards part and pharma there are in are invest year the make guys seeing the afterwards. front we programs, of that of leverage these mistake the that. We like guidance at having on we'll to see have to hire in bring and I there gave, no here. we people already -- of we then going in

$XX-plus So have to for make in that's reflected million hirings going the in the in we're year guidance account as management. SG&A that to that expected

keep got on got like I've but best analyst. to mean I've mind, call leverage hire one the to that companies to bring getting managers. the you hire got to account operating a manager. it there's senior account to margin. I to for in hire the I -- in got EBITDA look at, least center. business, across support are I've adjusted business, account is So at way when hiring manager, is hire claims big pharma AstraZeneca, I've we

this little a I'm to It's trying good. how Okay. business get just idea an works. of

Okay.

to turn further reached We any our session. question-and-answer or I'd for the of floor closing the end like over back management to comments.

all call. joining for Thank today's Thank you, you Kevin.

future and next journey continued you sharing See the forward together. great time. Have fuels vital towards to quarters about progress look our enhancing Your transforming day, treatments. healthier payments to support more coming in to our build care health We interest everyone. access and a and a patient

teleconference conclude today's you. and webcast. does Thank That

a today. and participation thank wonderful lines you We your may disconnect for your at this day. You have time,