Paysafe Stock Price Rebounds as Skrill Parent Lowers Guidance
PaySafe stock price crashed on Wednesday and then pared back losses after the company published mixed results. The stock was trading at $2.26, which was about 14% above the lowest level during the day. This rebound brings its market cap to over $1.6 billion.
Paysafe’s Q2 results
Compared to Q2’21 when it recorded a loss of 4 cents per share or a net income of $6.6 million, the company has posted a net loss of $631.5 million or a loss of 87 cents per share. The loss follows a goodwill impairment of $676.5 million. According to the firm, the impairment has resulted from a decline in its market capitalization as well as the “current market and macroeconomic conditions”.
Bruce Lowthers, the payments company’s CEO stated:
“Through the first half of the year, Paysafe has delivered financial results in line with out overall expectations, marked by double-digit growth in the US SMB market…While strong execution has enabled us to absorb headwinds from foreign exchange rates and a soft European gambling market, at this time we believe it is prudent to adjust our outlook to reflect the current macroeconomic environment.”
The quarter’s revenue also dropped by over 1% to 378.9 million as a result of currency fluctuations. Subsequently, the payments company has cut the year’s revenue forecast from its previous guidance of $1.53 to $1.58 billion to $1.47 to $1.49 billion.
Paysafe is a leading payment provider
Paysafe Limited offers payment solutions to online entities, SMEs, and individual consumers. It does so through its two major segments; Digital Commerce and US Acquiring. Its most popular products are Skrill and Neteller. Skrill is an alternative to PayPal that offers payment solutions around the world.
Notably, Paysafe is one of the payments solution providers that have recorded a drop in revenue in the financial year’s second quarter. For instance, an unfavourable market and macroeconomic environment pushed Western Union’s consumer-to-consumer revenue to drop by 9% as transactions fell by 13%.
