Paysafe’s (PSFE) Sales Fall Sharp: Stock Drops 40%

Paysafe’s stock price immediately fell after the company issued a profit and sales forecast that was below expectations. PSFE stock is upper 4.2% in the pre-market, it also declined by more than 40% in the last trading session. As of today, it’s trading at $4.42. The company’s sales declined in its digital wallet segment due to various factors, such as the launch of a new product and the company’s risk management initiatives. For the first half of 2021, Paysafe’s adjusted EBITDA fell 1%, to $106.3 million. The company’s net loss widened due to a non-recurring impairment charge.

For the full year 2021, the company now sees revenue of roughly $1.48 billion, down from its prior estimate of $1.54 billion. It also cut its gross profit and adjusted EBITDA guidance. Despite the company’s recent decline, CEO Philip McHugh said that its digital wallet operations will eventually recover. He also noted that the company’s strong momentum will help it reach its long-term financial goals. Paysafe Limited is a digital commerce company that offers a variety of solutions to online businesses, SMB, and consumers. Its digital wallet solutions are powered by the Neteller and Skrill brands. They enable users to store and withdraw funds from a virtual account.