Paysafe Plunges As Co. Cuts Outlook

Shares of Paysafe Limited (PSFE), digital commerce solutions provider to online businesses, are falling more than 39% Thursday morning after the company lowered its full-year revenue outlook. Also, the company’s fourth-quarter outlook comes in less than analysts’ view.

The company lowered its guidance citing gambling regulations and softness in key European markets, and performance challenges impacting the Digital Wallet segment.

Paysafe expects full-year revenue to be in the range of $1.47 billion- $1.48 billion, lower than the prior outlook of $1.53 billion- $1.55 billion. Analysts polled by Thomson Reuters expect the company to report revenue of $1.55 billion.

For the fourth quarter, revenue is expected between $355 million and $365 million. Analysts see revenue of $417.74 million for the quarter.

For the third quarter, revenue has declined to $353.59 million from $355.51 million last year. The consensus estimate was for $370.63 million.

Net loss for the third quarter widened to $147.2 million, from $38.13 million loss last year. The latest results included a non-cash impairment charge of $322.2 million.

PSFE touched a new low of $4.11 in the morning trade today, before edging up to $4.36.

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