PaySign (PAYS) 5 Nov 242024 Q3 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.'s Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. [Operator Instructions] The comments on today's call regarding Paysign's financial results will be on a GAAP basis unless otherwise noted. reconciliations be found the section on website, which will and earlier of release to paysign.com, be measures can the includes earnings disseminated amounts. SEC to today our GAAP Paysign's reported non-GAAP of Investor Relations

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

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

everyone, I'm Kevin. third you, Paysign's Good President afternoon, Paysign. and of Newcomer, CEO Mark welcome to Thank call. earnings quarter and

to has Joining and Officer. was quarter $XX.X Lanford, session, we Later revenue Paysign our pleased same and I'm prior be increase of quarter. during to in in Chief Chief our Patient for financial report of from Matt Officer. Today, period a the third X.X% million, compared demonstrated both our me the for year-over-year. our XX% of growth meaningful the that results quarter XXXX and the increase Revenue profitability and XXXX, consecutively Financial Affordability; an joined President Payments Q&A will also and we Baker, announced our is third today Matt by Turner, Jeff

roughly year-over-year, basis fully $X.XX impressive expansion margins business compared million up diluted $X.X our from same a fourth per in same growth year-over-year by by diluted XXX% the XXX which third a the quarter significantly, year. last share, success. We points or the earlier. Gross marks of throughout compared quarter, Claims up from continuing an $X.X patient XX.X% Our remainder rose our XX last finished affordability continues affordability, adjusted affordability our in the driven triple-digit $X.X year. $X same grew by in This from EBITDA rose million to for business. to reaching launches consecutive patient improved the revenue period by year contributor additional the to XXX% or share increasing period the processed patient year, of fully patient to million of last be quarter programs, major to million XX.X% also year. the with to $X.XX overall XX.X% affordability with Revenue per largely the quarter

opportunities encouraged revenue of bringing the transition are largest by many of existing these and new the immediate us, we quarter, shortens acquisition additional which new sales world's fourth companies. both cost several cycle the expect cornerstone additional program programs while are clients, not clients a creating one programs of to but existing also from We account, onboard only programs. In the pharmaceutical programs reduces trend to the as including

growth XXXX. continued this remainder for throughout into Our year well forward momentum the and positions well us of

with Our a benefits mix to streams. revenue strategy pipeline pharmacy-based retail strong highlighting programs, remains specialty our and medical diversify of

oncolytics. Programs space, pursue we additional claim launched program something us in emphasis weighted current further drugs as is growth gave new quarter year retail this in opportunities drive an specialty of will Our we composition with the believe towards on this in volume market. third the

a quarter. increase decrease a plasma last quarter, operations staffing the end donor shortages increase of center year center quarter with XXX the another this per business bringing $X,XXX by client total slight centers, representing centers new experience muted. affecting added hurricanes X.X% and the these We our versus faced $X,XXX as add grew plan revenue X during challenges from we X $XX.X to to and to year-over-year Our plasma some the factors. We year million, quarter revenue center headwinds, relating to second remain centers. X.X% our these in in Despite this to and compensation did a openings

way been with While productivity external primary growth outstanding in investments efficiency forces we to the our the services driver. growth value. significant patient We was create committed in revenue quarter, we believe our yield in is centers. Overall, making of to our primarily plasma substantial business. we performance the its control, business of enhancing long-term tempered are in by our segment affordability This and are has by area remain growth driven the which shareholder third will on outside the becoming and to pleased our this

that fintech solutions payments, Our health innovative strong. affordability patient developing commitment particularly key care address challenges in to remains

to Jeff, confident their member is dedication are for in the hard in our team that, positioned are your combined our ongoing evolving opportunities work. landscape, for compensation further we Paysign the well We plasma to extend to now the commitment deliver gratitude new I It my want provide will payments with call initiatives the each quarter. on sustainable long-term for relentless details and shareholders. I value success. performance our who financial drives over that of pass and will our to

afternoon, Good everyone. Thank you, Mark.

year-over-year spend revenue Net-net, by gross declined X.X%. modest and $X,XXX $XX.XX increased versus gross center period Plasma average dollar primarily we million. load $X.XXX. XXX, revenue As slightly offset extent, in loads last a plasma was to of quarter. and cards executed to versus This lesser was of in on X.X% in centers, by number year per amounts. decline increases monthly average Mark modest to volume the the said, or versus X.X% a donor compensation $XXX,XXX of XXX increases plasma driven This the same another the good

with $XXX,XXX XX our patient affordability programs and exited programs, net incentive pharma retail, of versus patient quarter issues We As past growth active or affordability affordability quarter in Mark equated increased the an growth support mentioned, the rapid plasma on to XXX% patient and in end the the XX compensation flow Pharma have donor addition XX of cash revenue. reduced to months. our and of an patient $X.XX the centers X.X% our we by during from our weather availability related period is of affordability or revenue revenue XX to driven to to the increase to XXXX. Other the pharma the corporate during payroll, total last million, growth shortages, new over this same experienced year. primarily million affordability of revenue expect XX.X% the helping which patient other business. Pharma these strong, Free pharma staffing same $X.XX businesses. since impact QX business increased remains XX.X% to programs revenue $XXX,XXX due launched

continue our other to of higher improve We businesses lacks which look scale as of the to costs this fraud a for experiences of and the other stream, revenue. percentage ways profitability revenue

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

versus increasing Third to depreciation and for increased to $X.X quarter year. Gross quarter the expenses the for XX.X% expense costs. increased $XXX,XXX of operating increase profit revenues period was the last an million. improvement XXXX to amortization with period was total $X.X higher SG&A points. basis year, quarter operating XXX XX.X% $X.X total versus same of million of related $XX.X margin same during the XX.X% XX.X% XX% million the million last or

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

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

quarter to of The count business. due last amount back a third to to measure money. $X.X adjusted which our period million per same same for patient the per was period shares, for million year. adjusted diluted EBITDA. The EBITDA, diluted during XX.X% adds the EBITDA or investments in $X.XX versus the and million year-over-year versus reflects XX.X% slightly adjusted support This or compensation options diluted non-GAAP fully a share share declined EBITDA $X.X made that equates being additional million affordability the share growth $X.XX margin per shares in-the-money is quarter to was share the last year used respectively, which XX.X% The that out previously our in calculating XX.X XX.X were to stock

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

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

$XXX,XXX. XX, At in a pharmaceutical cash cash. Restricted $X.X AR, repurchased million in liabilities. $XXX.X We repurchase are the an $X.X funding remained of customer $X.XX. unrestricted expect corresponding from outstanding million offset and end per offset will as customers to million, XXX,XXX under of December $X.X cost for increased to share shares so the pharma our customer funds for of primarily private XXXX, program. and of the plasma card stock current common our purchase decrease in average due at share funds that quarter, on our claims fluctuations with million a used of card in the under business increases deposits We grows, AP, cash and Restricted by

our guidance Now turning remainder of for attention to your year. the the

depreciation $XX.X year and reflecting and our $XX.X expected year-over-year the $X.X and XX%, to continue XX% We make to to still business. Of technology this pharma compensation stock-based expect investments patient to million are as from total contribution amortization to while to is is million reflecting increased million, our revenue gross approximately between margins profit million, million. we Full be of amount, of million growth expected expenses to growth between be people of continue in business. approximately $XX the are to to expected to in support Operating XX% be still $X revenues range be affordability $XX be and XX%. expected

still the legal settlement the to expenses of in our today, we disclosed anticipate of derivative section the our have earlier operating be in to quarter time at during not legal provided expect lawsuits. ranges. XX-Q guidance, expenses action we to anticipated our related released fourth guided was previous class X-K As and This our but the we onetime financial and within the expense

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

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

from Our coming [Operator is Instructions] Heckmann today Pete D.A. question from first Davidson.

assistant go you campaigns as some didn't well all important the think went and by could campaigns and an largest that word incremental take to about patient a you're having manufacturers. bit it of the little was a bit I the quickly, a more we the success you just you about, but the I and now pharma -- and to I detail? used types Wanted where of terms with in during you the campaign you notes, back drug if certain from where like to could detail time have to made pharma large comment think added really then the of comments That little talk into very quarter, these go large additional see the don't around I'd Could get the of are programs. moving one any in as

is Matt Turner. So this

Let's the kind account. start of with cornerstone

represent consider, If cornerstone products X, of kind broad larger as at you These manufacturers business would therapeutic portfolios now, look on right a a or classes. of we're accounts. the that whole typically of we strategic X what sitting covering variety or have

drugs, are drugs, These And which also typical up may the not are run insurance will the are These products on and hybrid have from Then call pharmacy pharmacy. most used brick-and-mortar retail a like kind they'll -- specialty your and have most the they high-cost them times. of side, legacy products. stuff programs that we they're typically come medical have specialty So stores. the of bill. then $XX,XXX to where side, buy

added we contract So and of programs we for launch -- in this this with we'll completed them a X year. quarter

were -- like we I part new launched. the question kind there? the Your what of understand that other question of because asking Can was repeat programs around the exactly didn't you you that

seeing are it still of of number very, that expensive average total it to program kind just Or of that or I'm as in-office average a Are relevant? revenue being get grow getting average really makes able retail, closer an campaigns programs. of an just the these kind feel have the not treatments trying that Sure. combination to an versus per so to term? just or we we better you very is

on it's here. Yes. And claim, the average, it we're that running the to relevant like types of claims also as depends things An revenue that. not per

XX,XXX program going could XX,XXX, have to claims disease So in X XX,XXX, state. program you a it's X month, rare if that's you run and to have run going may another that's a

exactly the So obviously, those aren't priced same.

things a you when no in to way into minimums sense make that. "Hey, and thousands month." dollars to say, going that average program on every to effectively of There's really a that there administrative of obviously some not transactional going But is X you're where kind area, would to there's are get to out. bring like an fees around the real it to put average So now some add place there's

strong last guess Got there you color decent give seen in segment some and just have is based I it, upon okay. in you you've And color really might preliminary of can any you then queue. I'll on But year-to-date, XXXX? get visibility back to the pharma the sure and type how question in the that quarter, growth fourth think grow early or this color us, I'm

guidance. let I you're if Jeff I'll defer issue the asking have a mean, for to him number, and to that numbers X

These farm have of comment really currently by X think we I really and cornerstone additional accounts I'd added a the the stand -- to the the have we that kind that we that just call ability strong inside. pipeline. we open up what

for has from growth approvals but certainly -- as what going fuel well, like And over. say solutions that. be -- the we doing, we then they're selling if quarters selling money execute that moment the clients to our has increased FDA to for the saving think So we're programs going start not comes going were work. it X to helped we're and see for we into year. X test or really programs that or look year, it to see we to work and to kind along already we -- bed shift other business as -- next what see And this over. for move we over into way at of moving see That's them you everything current now XXXX start know things It's sure we've last helped. And we're doing we're would X I see been to come all of them some make a that's the of you able here, we're

numbers with year, it Jeff let strong, kind next up. So I'll deal and that pops the I'd of looks I if mean, say

Pete. Yes,

given obviously This about looking total still affordability the year, XX.X% So be It we I is any patient year. like for mean, that by the guidance. full it's year, haven't XX% we for for the revenues stand of was quarter. to going

as so, that's but timing do like Next doable. Matt in XX/XX mind, because a in just I claims everything these a a it percent this far pipeline, year, XX-ish some launch. Also from as perspective. increase. obviously Whether for strong goes, keep to into or guidance is definitely be of of going lot quarter think, when business have comes going mind, that's at mentioned, keep first of We strong to is programs resets

the programs, reach second because as these maximums, the their get people of remainder, of claims, don't out-of-pocket Some paid as get year. go you through the the half they you towards

quarter first which year, very definitely stronger see the go give as as in numbers the exactly a more show to weren't we'll on sure. will rest get through and information get business and we you And we this and closer going the strong second pretty second think some the we of some the the we have get we first add throughout through assumption. But visibility more that's quarter quarter I guidance typically, more So first in have any good for year. businesses programs don't if -- as launched should giving the to growth I'll more what

question Prestopino Gary is from Next from today Research. Barrington coming

on strong, really question centers? with it the that the plasma staffing is can't business, as a on economy just with hurricanes they not in get is much. the But shortages? work these the to people going Just so what Is

because pulled people to say know it's grown -- a that new lot I competitors, there's can't become just of just over and get it's picked Mark. that I from more say is -- kind It's we Gary, I the labor. to to access as they've strong would time, work. have that it's Yes, don't and competitive centers their economy would get

business. idea big affordability is the us provide? patient Okay. size And the you for business an then the you that it as you specialty to how services of Could switching or market, the over give

Yes.

of little call, covered we bit this. a I think last

conservative right we're our north that we think looking this TAM consider to billion. $X.X be I estimate now, of at

some really saying So we're where TAM is pretty work that confident have again, to we But we to north piece together $XXX that's like million. this of hard numbers. feel

So see this competitive business through right signing them? it because pharmaceuticals are up they benefit this where can program a for takeaways? your various -- because is gives this is all to now, this you situation market winning you're this winning Are the business

been competitors innovative quite we to There out hasn't pharma or bringing the a I incumbent doing up living not for very we're the put to the we're best is that in though guess, is out way both. with that's It's innovation is areas a already light product of space. in lot There's space come decade. bit the better what stuff vendor this the been it's in -- a innovative. We've the been where programs, standards of for mean, being of there. maybe part I mean, of our some either that's but And really that call longer. marketplace, transition the are looking they've manufacturer some it, what beyond years so even I in some a solutions we're they're are not the

mix hey, that product vendor claim So products. And brand be a is drug, programs we've mix as to have of, the and new-to-market got well helping We're that good what's touching transition. now the seen first that to volume that's never we're of good acquiring drive also as going a the established been before.

It's years, to rounded-out take The X to to patient been might now products onboard over team that to took day already get that looking just for part has some streams looking new-to-market transitions. build. And both, bring have focuses they're XX,XXX to of we there's or X to, them immediate patient we onboard impact waiting We're then we sales right? and it just up we're a and claims not program, XX,XXX it's of just to our opposed really know last a and where we're while acquisition. we're immediately diversification done that revenue for going that there's revenue to programs years X on on not so as our X not established. going ramp when for So drug acquisition claims. And the

of And once the players just other then space? some in this who again, are

are TrialCard, pretty do we just that So the companies X may are other at doing offers CoverMyMeds. then are Both it's to out There offer IQVIA affordability. companies, of look you in services people would all, and companies space like private patient of of Eversana. and to those mention publicly of affordability. traded. But a kind McKesson. McKesson But the breadth and the of has think, kind a again, important the equity-backed offer are why like unique is offer, we else called Those those big that stores, fact being the as marketplace that see if market X subsidiary we're we there business. which appear in we're I in of only who patient we expertise specific effective we as services whereas area box broader X you be think this this, or that companies ConnectiveRx, capturing

or Okay. until And then or it the is in to reason there quarter for legal going published now? give can that's lastly, is XX-Q what hit the you we QX expense any have to us to wait to Jeff, was that get

the our still recall. that. there's finalizing insurance like memory if disclosure if coming morning be on $XXX,XXX, serves documentation company. will and Well, the XX-Q that just piece, paid by They're And out which over right, settlement things I tomorrow other me that's in

on some cost I'm So going saying about to right and without about that figures us. say It's much, that's X of too now. all is it

Okay.

would have a adjusted raise got fees, legal the range we the these to for say it's in year? without of safe So EBITDA

million for not million. in that moving still you full be there the expense we range. There's from $X.X Well, at gave quarter, we'll so the pieces, of when this in we're that can $XX Gary, was Through we gave range there, X kind there the it couple I be this a but $X extrapolate back raised that of in $XX million But $X to feel an I that. year. figures comfortable to still in will million was to coming million. right mean, now, mean, We quarter we last that range we gave

from Jon from next coming [Operator Instructions] question Our Thalmann. Hickman Ladenburg is

could little bit I the of where was if next gross for as business. XX% Jeff, patient you a this on into go just year later the stuff margins becomes -- might if wondering think you affordability elaborate and XX%, you

sure. Yes,

the given for half revenue to So the guidance higher we've of of the from the of Obviously, because and first in percentage in second year year, patient the coming XX%. XX% lower the we're of of year affordability. half

forward, So of is will patient sequentially there's launch, employment. I on changes, with like blended I basis and add I the it some said, think that quarter. And going just think -- this year-over-year. see up weather a to again we plasma. lot as be moving were quarter to where a pieces, when XXX XXX mix impacts margin We the over think what's on cetera, going we from could probably in We affordability, et going fourth programs bps

cash to So all operating maximize were deploy we of crystal help margins say. out year-over-year. We're to that garner our in other areas my performance at the can it's about up up to growth plasma that continue everything ball, I company. of yes, But the can looking business the do business trying to and sequentially and in

Okay.

there patents, to space sauce? because market other attention X protected question. unique technology? is or just somehow, in -- are starting And you attract some a your that is Are those secret technology So of you

best competitors se, IP It have we transparent that say don't is mean customers. has technology if thing really don't on have to we our our only you so patented one than competitors, we our to we privy I we've it want per This pricing but anything of industry book couple -- in to else We're on opened do things. One, we're think I not Matt, the a -- about that pricing, we else been past. X put the is in pricing. one. it know, very our hasn't do have. transparent that So to there's it. two, number message Number I we've this differently past add? no the ones the that some there's way talked because in

with Yes. an we No, patents look wasn't problems. it's after did and what at it discussion appropriate processes some of mean process I and use rife there's doing -- are were patenting determined funds. We

that So figured that to stuff I we've that's and that's able look out. money think we're trying the in attracting industry. else we're out at combat amount is to algorithms group claims have way And are we're some some the figure things if worked a clients doing, that some write our together to some people interest where here companies to But that what insurance of got doing. save with and of you PBMs of are a that nobody manufacturer do

that paying payments to And I'd has the industry the we been regardless only -- -- so those means. through is historically, claims to thing say via the claims our I'd is the we a other I where paper-based or or electronic that the via that's debit really we're last can value company that customers going and bring paying find check and there you're we're checks also say claims mostly pay mean, ACH out company virtual card or

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

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

us you. interest Thank quarters. sharing to Your day, health great to payments access We Have everyone. transform in a to inspire patient support the updates care essential continued more and and look improve treatments. forward coming

That today's webcast. teleconference and does conclude

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