Paysign(US:PAYS)2021-05-12 01:45Financial Data and Key Metrics Changes - Total revenues for Q1 2021 were $6.3 million, with plasma revenue accounting for $5.4 million or 86% of total revenue, a decrease from $10.6 million in Q1 2020 [18][20] - Gross margin for the quarter was 45.1%, down from 54.1% in the same period last year [19][20] - Adjusted EBITDA for Q1 2021 was a loss of $397,000, compared to a profit of $2.6 million in Q1 2020 [19][20] - The company exited the quarter with $6.6 million in unrestricted cash and zero debt, which is $1.2 million below the December ending balance [25] Business Line Data and Key Metrics Changes - Plasma funds loaded decreased by 2.5% year-over-year and 6.8% sequentially [8] - Plasma revenue was down $2.2 million from the same period last year, with average revenue per plasma center at $5,260 compared to $8,589 last year [22] - Pharma revenue for Q1 2021 was $768,000, a decrease of $2.1 million compared to Q1 2020 [22] Market Data and Key Metrics Changes - First quarter gross dollar volume declined 15.2% year-over-year but increased sequentially by 2.2% [21] - Purchase volume declined 13.1% year-over-year and was unchanged from the previous quarter [21] Company Strategy and Development Direction - The company plans to add a total of 60 new plasma centers in 2021, aiming to exit the year with at least 400 centers [10] - New product offerings in patient affordability are being developed, including a pharmacy claims-based program and a hybrid pharmacy and medical claims-based program [13][14] - The company is focusing on enhancing product features and expanding into other verticals with new digital banking products [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted that Q1 is typically a seasonally weaker quarter due to tax refunds and pandemic-related stimulus payments [7] - The company expects a recovery in business in Q3 2021 as unemployment subsidies are scheduled to end [27] - For the full year 2021, total revenue is expected to be in the range of $29 million to $32 million, reflecting growth of 20% to 32% [26] Other Important Information - The company is seeing positive feedback from the market regarding its product offerings and partnership strategy, which is reflected in its sales pipeline [11] - Significant investments are being made to support business growth and technological capabilities, with depreciation and amortization increasing by 18.6% year-over-year [24] Q&A Session Summary Question: Are there regional differences in plasma business performance due to COVID? - Management indicated no significant regional differences have been observed, with impacts felt across the board [32] Question: What is the plasma revenue guidance for 2022? - Management confirmed that plasma revenue for 2021 is expected to be $27.5 million, with a potential increase to $37.5 million in 2022 [36] Question: Will lawsuit expenses continue? - Management stated that the continuation of lawsuit expenses depends on ongoing issues, with no further details provided [38]