Earnings call transcript Q2 2023

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Operator

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 2023 Earnings Conference Call. [Operator Instructions]

conference being this reminder, a call recorded. is As regarding results unless will comments noted. on on financial call today’s basis, The be PaySign’s a otherwise GAAP PaySign’s GAAP our website, today which SEC includes on earnings non-GAAP to paysign.com, Investor can measures of to the of be found amounts. release earlier section Relations reconciliations disseminated reported was and the

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

will earnings see be replay. XXXX. Please for release call November to this X, until of access PaySign’s available on replay details how the a Lastly,

to now Newcomer, ahead, Please go Mark my call It’s Mr. pleasure over to CEO. turn Mark. the

Mark Newcomer

joining afternoon, our I’m second Thank Jeff patient pleased Good and our and with Baker, you, our I’m XXXX to Officer, before updates earnings verticals details. you. it our quarter handing share Kevin. provide further briefly our quarterly on everyone. Newcomer, Executive performance discuss to will call. affordability plasma results you Mark Chief I over Thank and for for CFO,

President Additionally, for the Matt Patient of Affordability, Turner, question-and-answer will us be session. joining

quarter, from continue year’s last this XX% second $XX up business growth new add to we revenue programs million reaching solid as experienced throughout We segments. quarter, our

growth plasma business, from seasonal QX of XX%, associated to X%, downturn volumes tax rebounded the increased increased our the second load quarter compensation healthy year. witnessed mostly and last compared has normal with our volumes spend refunds. which We’ve Our in

X XXX by onboarded X second centers of us end leaving quarter, while the with the centers of During quarter. a total were the centers new closed, we

to XX% last per monthly QX increased compared average The revenue of center year.

an centers existing XX centers. live went client, were total our in remains As steady. our and mid-July, XXX from post-pandemic, mature donors keep to additional We bringing they awarded growth returning count center

concluded of the X following quarter, RFP the companies. negotiations win we our During contract largest collection plasma with one

initial We with centers XXXX. in center onboard expect to to follow the more in QX

Given IT we’re segment, to of our additional XXXX. and to highlighting Today, end centers excitement to open the hit expansion high plans, expecting our clients’ our our progress forecast our delve into experience potential I’d to a of XX invested Affordability of Patient and we XX transparency. the In in vertical. this business industry-leading deeper like We aiming that side, prioritize solutions customer goal and both develop this XXXX, our dedicated space in the offerings. reentered to team, business with the pricing expanding and

addressable plasma infrastructure market, the we industry, deliver necessary believe invested these heavily and solutions. the which With to we into dwarfs introduce successfully total the

and our cost recognize the As solutions in market has grown. could traction savings value, bring, pharma companies the our disruption

of have "You’re first like our entrant as understood targeted and and met identified But with company were a due status Much approach to We market, solution. an in solutions. plasma, heard a a Initially, space. the surveyed offerings points we lot our the interesting new untested. skepticism our to developed you and small pain

Here’s a tiny piece.

if see do Let’s something." can you

business, And began to competitors. take plasma and proved from just capabilities our established we like our business

both growth we and total increase is XXX% reminiscent our win plasma programs, mature Of XX the new live period. robust. in the to to quarter, pipeline an segment programs, XXX% of contracts XX as to launched affordability will new year. mature programs this launches established in went transitioned current the Affordability for same Patient our XX X from of X from Moreover, believe our extremely patient vendors, programs We’ve patient increase affordability showing are which QX Our compared We XXXX. programs continue is of second our saw active revenue segment. bringing

on We or increased XX% an shed established the by our more of have we first volume X, pharma programs by companies onboarding solutions. for top XX published end anticipate claim and we’re the another, of represents increase X XX more volumes. agreement the as to their active year. increase. XX has count U.S. just That clientele, and running pharmaceutical with mature our could Claim additional a programs additional Of last light to by benefit X. with an month-over-month negotiation those, XXXX Fierce with Pharma, than year, in the our executed XX quarters the collaboration program currently approach revenue, compared from programs to To

of XX doubling seen with Affordability our throughout enthusiasm we are have launch growth and further Patient Many with will claim this for immediate contribute point preparing and success hope these to strong By of clients. year, XXXX. January. are this which segment. anticipate in in space, about more the significant journey I mature, and Patient volumes. the we our want many reiterate, convey growing. programs We claim with relationships been years volume The than to growth revenue, starting doubling end Affordability from we’re this insights I evident project long-lasting our QX of is has unseating these more but in the vendors challenging, to our than

this what to phase for of continuation division. be the and has continue been an should accelerated growth marks XXXX

Given we’re to work. our shareholders pipeline, pausing state of the impact excitement. consider share our will of optimistic our the worth our human current It’s

our have financial extended of therapies offers patients efforts patient critical to life Each possibilities part and that extend a mission patients with may signifies rare helped lives. diseases. We’re cancer for access their to provides reenrollment that

that, these turn Jeff. With forward We to more. look patients support proud it and I’ll many to over helping to are

Jeff Baker

Good you, Mark. everyone. afternoon, Thank

with foundation fast-growing invest vertical Our of as we plasma our as just this $XXX,XXX, and for of patient be double Mark beginning to markets elaborated. fruit our opportunity attractive to revenues the channel, providing business us continues Patient are XXXX. business than to journey with such diversify Affordability our over $X.X affordability more revenues business, pharma beginning expected in into Since to other the and off see X XXXX to the exiting million in pay XXXX investment and programs this

For the second to last the XXX% same $XXX,XXX during revenues increased patient quarter, year. $XXX,XXX period affordability versus

Our growth, centers the with the year. versus exiting period centers XXX last quarter continues during plasma same its XXX business

plasma Our center, also per average month, revenue XX%. to $X,XXX, grew per $X,XXX versus of increase year-over-year a

total As novo of Mark of centers bringing added of the mature X the end mid-July month, the centers end to additional we July. mentioned, since XXX and transitioned XX at the quarter, the centers de in number during

centers which have added Our expectation is or to during the exit that includes and the sold year. been with approximately closed XXX ones centers, that have this been year the

quarter, million same XX.X% $X.X second increased revenues over year. the For plasma the or period last

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

drag. million year, and quarter that Second or was period which X.X% versus prepaid year total of mainly revenues XX.X%. XX.X% last last pharma million quarter were the XXXX lack year, margin present XX.X% increased was due same for not $XX $X.X this during to the the this revenue a year of present pressures Gross profit inflationary

the XX% $X.X quarter operating for expenses to $X.X million. with increasing increased SG&A million, XX.X% total to

to in last inflationary growth business, significant the quarter the the employees mentioned, past versus IT addition our year the employees In with wage exiting of over support same across pressures company, Mark and as XXX XX we to period continued investments during this have made year.

periods for of the both net Earnings a quarter, we posted loss of net $XXX,XXX. per loss For breakeven. under a were share $XXX,XXX versus just

and compensation stock diluted fully The same diluted year. is share adds second was million diluted quarter EBITDA share The a XX.X $X.XX XX.X used $X.X also for quarter EBITDA, adjusted measure the back count or to $XXX,XXX, $X.XX which per period respectively. amounts million, share that is the in was per versus calculating for the last non-GAAP share per million

company, our and the the million quarter with exited $X first decrease cash and million a quarter XXXX. of health $X.X the in unrestricted a $X.X X million year-end over the Regarding debt, from increase we

our common stock. $X XXX,XXX have we million repurchase to used just shares Year-to-date, under of

plasma March, growth $XX revenue and be adjusted and range in on EBITDA EBITDA million in patient be million. expecting to to adjusted $X.X million in of affordability range pharma the are continued to track and the principally revenue We and $XX to to guidance in our provided meet our of are million business we $X

to would like I over to questions and the that, call for Kevin turn With back answers.

Operator

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

Gary Prestopino

values Jeff, I Q. handy? be will have do the just the load and the values spend wondering, this know you I’m in

Jeff Baker

Yes.

Just give me X seconds. one,

was our total loaded load -- number X $XXX.X million total So value of million. value total dollar was loads and

Gary Prestopino

how of gross with much margin And gross on could then you right. margin you us sales differential Affordability plasma? I of get Patient per All mean plasma great. dollar uplift out the an versus do versus versus dollars dollars of on Okay. That’s more here Patient Affordability help

Jeff Baker

in patient pharma the affordability third-party the The plasma pharma margins side the -- XX-ish There’s gross -- associated XXs range. our XX% more plasma with margins side mean the costs to upper in are So low the gross I running with versus are side. percent range. the

Gary Prestopino

Okay.

positive So obviously, your then, as margins. it’s impact going Patient be a to to Affordability, you very grow this

Jeff Baker

more versus the if more loaded in-house IT, vendors. third-party -- the individuals. party to not It’s with you margins. in where -- it’s at What caution gross third the look a It an fully using will that business is I will solution the margins also you of

more costs they’re associated, there’s So line. the below just

Gary Prestopino

is good the -- from? on the that to affordability what quarter, were that that That’s hear said from then you programs up I right, know. the claims these Okay. Or patient Mark, volumes you And is XX% in correct? that did is measurement

Mark Newcomer

for Yes, correct. half. first was that’s the It

Gary Prestopino

year, of half this First okay.

Operator

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

Jon Hickman

I catch. quite sorry, didn’t I’m

that this of about was more year, your you reach goal. comment that so center at what reiterate said got the XXX new center and speaking, you about the -- on Can that quarter a end You I made customer a can in you about you plasma think you customer? new Mark expect

Mark Newcomer

the in finally... with X was it X in we Yes. I about what RFP talking had the We companies country. top The of quarters. of the was about spoke wins was it We previous -- one plasma

Jon Hickman

come it last in quarter? Didn’t

Mark Newcomer

did. year, It in correct. that’s came last end It of the towards

it’s going in And then obviously So subsequent QX. fairly center live our been now moved will slow. in it’s first have We XXXX. centers -- launch

Jon Hickman

know traffic? about those Okay. you. reopened Can the I were for border? at How’s going you us more anything tell on what’s

Jeff Baker

about Yes, we definitely nationals Jon, it’s about pre-COVID. to up back is every -- It’s but kind to was donating than they or are still have it there. been. just mean donating -- XX-XX U.S. inching Mexican But nationals citizens not . that are I finally between come and seeing believe back. starting Mexican more where of It’s month, there traffic not it

Operator

is question Next a Gary Barrington from Research. Prestopino from follow-up

Gary Prestopino

Yes.

going to this X you’re getting You that talked about the by and at on won correct? end this least be year. of -- the you Is RFP large center

Mark Newcomer

That’s correct.

Gary Prestopino

Can due you the activated give us be XXXX centers this RFP? many will of to winning some magnitude -- idea how of came in

Mark Newcomer

I mean, So X not X largest the of really. -- I RFP, it’s I can’t the plasma company. mean

our of up So which will they to as Really, you push offering imagine, have they putting and centers. will over they can us. we’re hundreds centers dictate

it’s centers count subsequent expect So XXXX. point at an hard do this accurate you in me to for falling give in time. We

I think guidance a to probably better that at be we’ll that. on point, able little give

Gary Prestopino

Could be looked small starting your to that market and you are this initial competition? it’s really or into gain you’re company, to the And your Affordability. versus "Hey, said, it." give helpful. talked about maybe a you but enabling gain very traction. you go allowing you doing That share And into some in Mark, Clients Patient traction maybe we’ll of is what narrative piece will a then, you in you little at forays

Matt Turner

Yes.

Matt is this Turner. So

this think as hole much developing to kind into too industry I it that’s represents way maximizer we’ve get started problems our call. cost represent could programs and it a some to financially a the of to deep accumulator just -- co-pay risk to programs on maximizer But such clients their accumulator problems because money. solutions really the rabbit cause

a there’s successful we’re kind we’ve developed address of focusing some on of part good glove And I that. white so solutions incredibly what to And experience, doing right? really that’s client just think targeted a

I of put guess, lot over-commoditized, competitors best They the the market could the in space way you away A walked is it. from that.

that And job combining really bringing it focusing on that solutions do the experience. new so the table, to solid the expertise we’re and to a client takes with more

Gary Prestopino

a duplicated that’s technology anything be there you in by market that the Is competitor? this on basis have that competitive a can’t advantage

Matt Turner

Yes.

ecosystem. So a I complex right? lot kind mean, technology we what in it’s -- mean a there’s of of a involved do, it’s I

don’t I solution it -- that, case, somebody far duplicate to us know the a able to we As of never as get while up and else but kind it, that’s being running. necessarily the took

anybody us to we’re top had and we’ve years have this for to don’t a some on now and they of so. successfully top see think XX I months, to And new They’ve going X solution And in begun companies. it time. pharma launched imitate jump selling failed,

don’t -- I’m that imitate overly be able anytime soon. us going I So to concerned they’re not to

Gary Prestopino

right bigger you the sales strength? going mean than getting now putting your this for resources into market, market? if force and is I are it’s big to How sales plasma be more market this

Matt Turner

Yes.

additional who kind So think, he Sales last with right as that now, there of brought are was for busy. very, an call, that doing bulk salespeople. I for continue the us. X force, and everybody evaluate Dennison, in And have need them. Senior in then the we here of we VP support We’ll keeping very they talked person about on, sales the Bryan amazing folks X Right are to has the have a February for job

and we’ve -- when So on the talent we sales hired hired top side. --

-- have thick a and them training This and and becoming in of connections industry very haven’t entry-level that to trying we These salesperson. lot have looked are and gone veterans people at a a Rolodexes. is

So they’re towards staff. think And start we’d of more evaluate the But year, adding what sales rightsized they’re right in doing incredibly successful we’re now. the I now, next in salespeople. maybe

Jeff Baker

I the old management mean come The on companies their and is service bigger were Matt lack salespeople cost they support. like bigger glove mentioned, employee from into Gary, pharmaceutical or dedicated white the client up, of these kind going the -- signing to support provider.

We’re we that continue them at going going to can have continue glove we white level. do add effectively, we’re to to are -- which the are, bring customers giving We service. that we cost in have to but to to these

definitely client side but So support it’s level not the the senior level.

Mark Newcomer

hub think to of hub off strategy. us our also table bringing a I for And the are to strategy that say lot then And partnerships play hub kind of our important us. to of that it’s have still we allows some that business

that’s, So I no. think

Gary Prestopino

the of comparable I then more question. is place But one is of were that more taking all on those And QX? business the a just another question, starting here in was had. out This equation basis? what that when last Is of modeling forget called. business it a quarterly Okay. Or you of revenues it QX?

Jeff Baker

No.

referring our to business. So prepaid that you’re was --

So were -- in the last last prepaid year. the last yes, revenues revenues prepaid pharma in QX of

I QX So But investor starting of our will to presentation in website. an XXXX, our point have on you’ll apples-to-apples.

We have business. Patient and the split business out Affordability the our revenues prepaid from

see you comparison. So a can true apples-to-apples

Operator

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

Mark Newcomer

progress we all for you Thanks, us call. look earnings Kevin. today, you next updating forward and our Thank on continued joining to the in

wonderful day. a You all have

Operator

Thank does you. That teleconference today’s conclude webcast.

day. may You have your at time, and line wonderful this a disconnect

PaySign (PAYS) 9 Aug 232023 Q2 Earnings call transcript