Wed, Mar 26, 7:59 PM (31 days ago)
**Paysign, Inc. (PAYS) - 2024 Annual Report Summary** **Business Overview:** Paysign, Inc. is a vertically integrated provider of prepaid card products and processing services for corporate, consumer, and government applications. The company offers a range of payment solutions, including corporate rewards, prepaid gift cards, general purpose reloadable debit cards, employee incentives, consumer rebates, donor compensation, clinical trials, healthcare reimbursement payments, pharmaceutical payment assistance, and demand deposit accounts accessible with a debit card. Paysign operates on a high-availability payments platform with cutting-edge fintech capabilities, providing end-to-end technologies that securely manage transaction processing, cardholder enrollment, value loading, account management, data and analytics, and customer service. **Financial Performance (2024 vs. 2023):** - **Revenue:** Total revenues increased by 23.5% to $58.4 million in 2024 from $47.3 million in 2023. This growth was driven by a 4.6% increase in plasma industry revenue, a 212.3% increase in pharma industry revenue, and a 45.7% increase in other revenue. - **Cost of Revenues:** Increased by 13.2% to $26.2 million in 2024 from $23.1 million in 2023. - **Gross Profit:** Increased by 33.4% to $32.2 million in 2024 from $24.1 million in 2023. - **Operating Expenses:** Increased by 28.3% to $31.2 million in 2024 from $24.3 million in 2023. - **Net Income:** Decreased by 40.9% to $3.8 million in 2024 from $6.5 million in 2023. **Key Metrics and Performance Indicators:** - **Gross Dollar Volume Loaded on Cards:** $1.783 billion in 2024 vs. $1.706 billion in 2023. - **Conversion Rates:** Total revenue conversion rates were 3.27% in 2024 vs. 2.77% in 2023. - **Gross Profit Conversion Rates:** 1.81% in 2024 vs. 1.41% in 2023. - **Net Income Conversion Rates:** 0.21% in 2024 vs. 0.38% in 2023. - **EBITDA:** $7.0 million in 2024 vs. $3.9 million in 2023. - **Adjusted EBITDA:** $9.6 million in 2024 vs. $6.7 million in 2023. **Financial Condition:** - **Cash and Restricted Cash:** $122.3 million in 2024 vs. $109.4 million in 2023. - **Net Cash Provided by Operating Activities:** $22.9 million in 2024 vs. $27.6 million in 2023. - **Net Cash Used in Investing Activities:** $9.5 million in 2024 vs. $7.0 million in 2023. - **Net Cash Used in Financing Activities:** $0.5 million in 2024 vs. $1.1 million in 2023. **Market Position and Strategic Overview:** - **Cardholders and Programs:** Approximately 7.3 million cardholders participating in approximately 600 card programs as of December 31, 2024. - **Market Focus:** Corporate incentive and expense prepaid card products in various market verticals, including healthcare, loyalty rewards, and incentive cards. - **Technology and Innovation:** Continuous investment in technology improvements, sales and marketing, cybersecurity, fraud, customer service, and regulatory compliance. **Risk Factors:** - **Regulatory Risks:** Operating in a highly regulated environment with extensive regulation, supervision, and examination. - **Cybersecurity Risks:** Potential data security breaches and the need for continuous investment in cybersecurity measures. - **Competitive Risks:** Intensely competitive markets with numerous companies competing for market share. - **Operational Risks:** Dependence on key personnel and the need for continuous innovation and adaptation to market changes. **Future Outlook:** Paysign plans to continue investing in technology improvements, sales and marketing, cybersecurity, fraud, customer service, and regulatory compliance. The company aims to sustain operations for the next 24 months with available cash on hand and forecasted revenues and cash flows.