Paysign(PAYS)2024-11-06 13:00Revenue Growth - Total revenues for the three months ended September 30, 2024, increased by $2,856,106, or 23.0%, compared to the same period in 2023, reaching $15,256,431[90]. - Total revenues for the nine months ended September 30, 2024 were $42,778,104, a 27.4% increase from $33,584,666 in the prior year[100]. - Plasma industry revenue rose by $377,822, or 3.4%, to $11,439,534, driven by the addition of 16 net new plasma centers and increased donations[91]. - Plasma industry revenue for the nine months ended September 30, 2024 increased by $2,644,590, while pharma industry revenue surged by $5,993,365[100]. - Pharma industry revenue surged by $2,248,618, or 219.1%, to $3,274,888, attributed to the launch of 32 new patient affordability programs[91]. Profitability - Gross profit for the three months ended September 30, 2024, increased by $2,141,196, or 33.8%, resulting in a gross margin of 55.5%[90][93]. - Gross profit for the nine months ended September 30, 2024 increased by $6,002,801, resulting in a gross margin of 53.8%[103]. - Net income for the period was $1,436,837, reflecting a 30.5% increase compared to the prior year, with a net margin of 9.42%[88]. - Net income for the three months ended September 30, 2024 was $1,436,837, an increase of $336,233 compared to the same period in 2023[98]. - Net income for the nine months ended September 30, 2024 was $2,443,035, an improvement of $1,606,717 compared to the prior year[108]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $6,756,410, up 60.5% from $4,207,363 in 2023[113]. Operating Expenses - Operating expenses totaled $7,783,465, an increase of $2,041,779, or 35.6%, with selling, general and administrative expenses rising by 32.4%[88]. - Selling, general and administrative expenses for the three months ended September 30, 2024 increased by $1,521,335, primarily due to a $1,821,000 rise in compensation and benefits[94]. - Selling, general and administrative expenses for the nine months ended September 30, 2024 rose by $3,202,922, mainly due to a $4,012,000 increase in compensation and benefits[104]. - Depreciation and amortization expense for the three months ended September 30, 2024 increased by $520,444, driven by new software development costs and equipment purchases[95]. Cash Flow and Investments - Operating activities provided $8,633,922 of cash, an increase of 106.5% compared to $4,180,064 in the prior year[116]. - Cash used in investing activities was $7,087,867 for the nine months ended September 30, 2024, compared to $4,999,986 in 2023, reflecting increased investment in technology[117]. - Unrestricted cash as of September 30, 2024, was $10,293,207, an increase of 3.6% from $9,936,627 in the prior year[120]. - Financing activities used $331,695 in cash, primarily for the repurchase of 100,000 shares at an average price of $3.60 per share[118]. - The company financed operations through internally generated funds during the nine months ended September 30, 2024[115]. Future Outlook - The company plans to continue investing in technology improvements, sales and marketing, and regulatory compliance in 2024[89]. - Future product expansions are expected to include travel cards and expense reimbursement cards[78]. - The company continues to monitor bank relationships amid elevated interest rates and refinancing risks in commercial real estate[120]. Market Trends - The prepaid card market in the U.S. has seen significant growth, driven by improved technology and increased consumer adoption[84]. - The company manages all aspects of the prepaid card lifecycle, enhancing customer service with a fully staffed, in-house department[85]. Operational Performance - Income from operations for the three months ended September 30, 2024 was $689,849, an improvement of $99,417 compared to the prior year[96]. - Gross dollar volume loaded on cards was $456 million for the three months ended September 30, 2024, compared to $448 million in the same period of 2023[110]. - The increase in cash flows from operating activities was impacted by net income and non-cash adjustments for depreciation and amortization[116]. - Significant contractual cash requirements include ongoing payments for lease liabilities[119].