PAYS - Earnings call transcript Q4 2021

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Operator

Hello, and welcome to the Paysign Fourth Quarter 2021 Earnings Conference Call.

As a reminder, this conference is being recorded. This presentation may include forward-looking statements to the extent that the information is presented in this presentation discusses financial projections, information or expectations about the company’s business plans, results of operations, the impact of COVID-19, returns on equity, expected gross margins, markets or otherwise, make statements about future events. Such statements are forward-looking. Such forward-looking statements can be identified by the use of words such as should, may, intends, anticipates, believes, estimates, projects, forecasts, expects, plans and proposals.

could that on reflected a forward-looking reasonable risks uncertainties believes statements these number statements. company to and based results are assumptions, that the the from in expectations forward-looking of differ Although, materially actual such cause there are

disclosures, Risk You other Factors in XX-K. carefully and statements to made statements urged and consider elsewhere the are cautionary under any review and including the heading Form

in and only as forward-looking GAAP any which methodology my of the the measures is company the go in to any accordance of with undertake in pleasure is nor and that presented It contained, Mark turn Newcomer. may statements, be any an speak date they to required prepared This document based prescribed duty are by EBITDA, standardized adjusted accordance is alternative by financial similarly statements includes by now a necessarily to the measures as to update measure comparable not prepared does not companies. neither law. titled Forward-looking ahead. to also over non-GAAP other on presentation call Please except financial

Mark Newcomer

was I spending as though I’m Officer. on starting trends in Throughout this, to and pandemic the is Good last jinx increased year thank Paysign’s in up year, XX.X% Newcomer, we basis, quarter joining earnings fourth as our subside. XX.X% increased saw previous are over of spend but and I’m X.X% And up up it number you an spend was and Chief very full XXXX. cards year. Baker, we over over from quarter. Funds compensation. Jeff up And last as to touch want full the volume was our looks On The XX% increase full say see volume Executive well loaded Mark don’t loaded call. quarter fourth year of business to donations fourth on X.X% as the over because was happy year last to continue improve XX.X% average our donation the Everyone effects over us afternoon, seeing the fourth load plasma last quarter, up funds that Chief wood with quarter. me quarter XXXX afternoon the year for for for and everyone, this a Officer. the Financial

million year. result year, the the of versus a for QX of positive And prior increased million As these our our increased full trends, previous revenues over year. the to $XX.X revenues $X.X XX% XX%

to addition In expansion plasma the new ending we transaction also we plasma centers. a six new the we net XXX positive centers, XXXX, seven quarter, and fourth plasma new our centers. trends, XX plasma added In an with the total saw clients plans. onboarded their of clients additional year signed resume In

center. the revenue With our revenues saw volumes, $X,XXX we renewed to a plasma in per XX% center monthly in in per we plasma new increase centers large in an transaction increase and and In of increase clients. one increase QX, the

client onboarding renewal, indicated plasma number contract as we are plans, expect awarded new surpass clients plasma our introduced cash the Paysign as our this by or Barring we to Premier plasma Pays, the plans of program. to our a space. in year, restrictions a and XXXX. new new benefits clients’ including short-term well and the In our we totals XXXX unforeseen all and in portfolios, variety merchant Discount across of cardholder Throughout rewards Pharmacy as program the be back Paysign centers COVID addition of expecting entrants long-term change Paysign growth from XXXX’s to center in additional any in

month Two of programs acquisition to business. during the our patient client new on affordability November. and launches We in see program schedule continued launched

One is our in both previous hybrid a call. earnings with of and programs benefit, we medical these discussed have pharmacy program something

launch. This launched at largest volume patient pleased to building these is In December, the programs be pharmaceutical launch. we manufacturer client. program We program an volume see program projected time affordability additional to our are since of for retail a pharmacy-based

As potential out launched build new program eye for with program and continue a statement the products the XXXX. to spent focusing Asembia new relationship This and a We quarter our unique signed much interest kind time the on in of high-volume drop of services. to market manufacturer level used be on our selection our that at program its we to our excellent leads close we and of and hub and is of outstanding fourth interest of work quarter, pharmacy a pharmaceutical the new We launch. generated has partners. of first support a product to supporting first a that retail XXXX in

what and about that program I’m We in are XXXX. new launches of meeting in excellent since to ahead have had excited an beyond. October and follow-ups numerous of year positive lies us XXXX on and have acquisition client track

We Patient world-class payroll, digital the continue deliver operational to platform. fintech continuing team and through reloadable, to the by business core build strategy and a incentives at and rewards Affordability build corporate verticals of new general business bank and and account, business, markets health excellence our intersection protect purpose and lines diversifying plasma our new grow care with and our our on execute to new to products like

strong as for prepaid as a well XXXX plasma, the affordability product have across patient lines. other pipeline We

delayed and and year a and clients, their donations our slowed was challenging stimulus cardholder for our related as XXXX our us, clients plans. spending packages impacted pandemic the cardholders, or Finally, for growth and behaviors

turned start our the XXXX. more hard stuck am for corner team these deliver full on that, year give path and on financials over to quarterly work quarter have to at it us looks to the results. insight we challenges it my comments, and With I’ll As extremely growth. improving continued I through and Jeff the to year the the though and on of and I enable the back pass with to you Paysign full are as it of proud mentioned who

Jeff Baker

Thank you, Mark. Good afternoon, everyone.

call from quarter centers guidance transactional out, As will XX.X% XXX EBITDA, X.X% slightly we XXXX. year, of invest per XX.X%, increased pointed during million. was million per guidance SG&A met below available expenses in for had plasma $X.X With end exceeded up and versus last when quarter operating $X provided up compensation the EBITDA Operating revenues our Gross trends back adds over XX-K all our of and we that expenses in the $X.X million, amount, $XX,XXX. an $XXX,XXX was We Mark versus technology to platform. million million to the was was X.X% XXX provided million. guidance simply and increase year. our $XX.X million of the million up ahead operations, well our adjusted financial last Of million EBITDA, our of and month center line income million, of stock hit $X.X diluted metrics EBITDA year Adjusted sequentially $X all to XX.X% with to year million Adjusted initial relative XXX points. $X.X and of we another $XX last million to The and both revenues, to of the with per May. versus earnings over tomorrow, $XX.X guidance revenue we our to guidance year-over-year. in or revenues $X,XXX $XX.X at QX all adjusted XX.X%, improving margin $X,XXX revenue was which of of $X.X with operations good or $XX was of as profit for million. last the ahead over slightly exited details the basis EBITDA our and year’s I total up Other it’s up revenue the that year. profit quarter $X.XX average Full was EBITDA million published margin previous fourth up XX.X% in share. to This of was total $XX were plasma were release $XXX,XXX. pharma Gross million. be Total $X.X of $X.X of fourth the to quarter was continue XX.X% to will press highlights XX%. revenues were were

continue $X.X our improvements words, of ending to year-over-year zero cash our continue be meaning $XXX,XXX two as see all a in leverage, debt, exited of balance. technology to in increase is platform. with quarter people third sum invest our of into I If would the our unrestricted our growth health to an we that grows, in from cash despite company, operating need top the should which incremental operating we results and and the the up greater quarter Regarding million line can

to to business lies what as and momentum said, XXXX co-pay core our are us on at XXXX. Looking continue positive over plasma our about as Mark we the continue we to pharma XXXX, in business ahead results expect of improve it experienced excited

our all of financial we and the from from cost perspective, where revenue at XXXX a would to perspective. we of some provide Looking see guidance like driving factors a going business

co-pay revenue be reflecting of revenue. expected with to XX% relatively XXXX of the offset and in $XX.XX of range year-over-year pharma in programs expected was are to XX% programs. plasma $XX.XX Pharma flat income total growth XX% the to total are approximately is making be of revenues with settlement loss First, recorded million, that to million new up as

$X to over million. to XXXX’s Second, $X EBITDA adjusted at EBITDA double expected adjusted of least is million

in Third, profit to and are before QX skewed XX% operating historical gross profit results. expected be operating technology make people expenses margins results will gross million XX.X% and increase XX% entertainment other and in result approximately more a with QX approximately to gross margin investments margin normalized to as to in and experienced in somewhat year inflationary travel full insurance, XXXX continue believe expected to to approximately we experience to $XX are be QX be this relative costs pressures. to Fourth, XXXX expected profit We XXXX. returning higher to

$X and answers. question would Lastly, back to and depreciation is to call approximately million be that, while expected expected compensation With moderator amortization between $X turn to be I $X.XX the to is the and million, like over million. stock-based for

Operator

[Operator from D.A. with question is proceed. Instructions] Davidson. Heckmann Please Peter Our first

Peter Heckmann

Hey, taking greater in centers, I I new XXXX the heard to additions the believe new be afternoon, that the good net Thanks net plasma XXXX. everyone. question. for than say you expect you

couple the conservative a next what that. you break Can a maybe talk the of back pipeline number might be think little might looking of you as the type of I a couple of to over XX about but quarters, But could four and be, six quarters? verify things right way, going centers. for what bit about about If a talked pipeline you well, that we number then

Mark Newcomer

path year we We in prior we net back to that I’m discuss with you. first XX we some they Mark. Basically, address expected We to the with numbers was those that down quarters. don’t happy your did me it’s Pete, get and about will we with Yes. believe let – went that new question a beat last centers. that just folks absolutely that materialize. do the –

minus. be or and We’re expecting that can to to plus that go number XX, close

Peter Heckmann

of in ramp And just That’s there people fast that thinking in back? any quarter. revenue item it’s Or just first planned technology as and gross able to helpful. your that the there? coming you Is as is in the terms some margin of in investments about unusual be won’t

Jeff Baker

is Pete, this Jeff.

onetime cost Mark the some the things a customer renewal cause to heard quarter. negotiation is a going during Part large and if to the of line say, and benefit for us first you sales plasma we have of So that on renewed quarter.

for So upper the what XXs kind then go guidance, of a roughly the see to rest is to of year. to And back gross throughout like going margin. going the XX% you’re it’s the

that’s the third a fourth it you kind in So going have is adjusted quarter, and down the in first the and And February then quarter, third quarter. fourth a to going of Keep mind, it – the looks kind EBITDA, with bit quarter throughout result see little is in revenue year. February, falls tax remainder in And and we again, season, ramps of go to of second. quarter, will you’re that’s in go off where third second tracking you always our up high the to the like that quarter. March then remember, see smiley to in the with rebound to will January maybe number flat get the flattish, face the going second good to seasonality then quarter a up up business. in also What you’re as starts

year. going there that So model are as visibility of just to on I’m they trying takes and understand so give much the plus for the out in this kind everyone,

Peter Heckmann

then Are side, And don’t maybe just where in year. the to of think number one you I know the mid-teens get for helpful. you queue. the we than net not terms then? just two about, significantly are And more, trying of at maybe right, more it programs is on the as I – programs? we I’ll type pharma XX back That’s total But new be programs? noted enter XX, terms I in it’s But out type and that the in vary we are of know, figure might I like XX, can mean, about XXXX, the thinking on plasma – programs pharma working about centers. you then

Jeff Baker

happens. that are then Well, so two- so some news, These and ended contracts. on had we the two three-year programs that’s net to and what –

end. renew sometimes And just they they and sometimes

kind the ended. those a old new model. versus model co-pay – prepaid had we we’re the old are having new the the of business that say, lot and to on quarter, a of the model, then traction in couple model legacy the the So going I’m And

So mean, but I today in XX the of programs. I’d range – of number XX to the be sorry, we’re – XX probably guessing,

guess, have told to So me. Mark I don’t

then call growth of business left – of XX those legacy will an that’s pretty excuse pharma of that what to prepaid programs year-over-year. XXXX. you’re got business co-pay programs, you declining add the – guys – really the in the for perspective kind we’ll left XXXX. quarter end XXXX the going got to left And right XXXX. there like old But year. flattish throughout to And continue right. me, a a for it’s and close the $XXX,XXX get around around kind of first $XXX,XXX at couple that you from we’ve – then why it, we’ll from that you at And is what $XXX,XXX-ish We’re from more in add going have around, business bottom see then to revenue outsider’s the hard exiting starts then the to and the up in should And to new to looking of flattish you

Peter Heckmann

Got it.

you. the will Okay, back queue. in great. be I Thank

Mark Newcomer

bet. You

Operator

no the for like Instructions] conference I management turn time. further over [Operator this questions would comments. at to back There closing are to

Mark Newcomer

Really and the a great that, Sherry. time continued much. Thanks, hard work. everyone’s thank today. And with team interest I want you to their thank appreciate dedication Paysign and Have very also for day.

Operator

conclude does Thank you. This today’s conference.

you disconnect lines for this at may your and participation. your thank You time,

PaySign (PAYS) 23 Mar 222021 Q4 Earnings call transcript