Paysign, Inc. Q4 FY2024 earnings call

Management Statement and Operational Highlights:

• Paysign demonstrated continued strength in revenue growth and adjusted EBITDA in 2024. Full-year revenue increased 23.5% to $58.4 million, and adjusted EBITDA increased 43.3% to $9.6 million with margins improving by 230 basis points to 16.5%.
• The patient affordability business was the primary growth driver, with annual revenue up 212% to $12.7 million, claims processed up 272%, and 33 net programs added. The sales cycle remains efficient, and the pipeline is robust.
• The plasma donor compensation business faced challenges due to an oversupply of source plasma and hardware upgrades, but the company expects to manage through the downturn.
• Paysign announced the acquisition of Gamma Innovation LLC to enhance solutions for plasma and pharmaceutical industries, marking entry into the high-margin SaaS market.
• Significant investments in IT and employees were made, with 171 employees at year-end 2024 compared to 123 in 2023.

Segment Performance:

• Patient Affordability: Annual revenue in 2024 grew 212% year-over-year to $12.7 million, representing a significant increase. In the fourth quarter of 2024, pharma revenues were $12.7 million, which was 21.7% of total revenue. The segment added 33 net programs in 2024 and 14 net programs in the first quarter of 2025.
• Plasma Donor Compensation: In 2024, this segment contributed $43.9 million in revenue, a 4.6% increase from 2023. Fourth quarter plasma revenue was $10.8 million, down 6.2% due to an oversupply of source plasma and increased donation yields from hardware upgrades. The segment ended 2024 with 480 centers and anticipates adding 10 to 15 centers in 2025.

Guidance:

• Total revenue expected to be in the range of $68.5 million to $70 million in 2025, representing 17.5% to 20% year-over-year growth.
• Pharma patient affordability is expected to continue growing and make up a greater percentage of total revenue in 2025.
• Q1 2025 total revenue expected in the range of $17.5 million to $18 million, with adjusted EBITDA expected to be in the range of $4 million to $5 million.
• Net income is expected to be breakeven for the year, and adjusted EBITDA is expected to be in the range of $12.5 million to $13.5 million or $0.22 to $0.24 per diluted share.

Risks:

• The plasma business is affected by an oversupply of source plasma, leading to reduced donations and lower revenue.
• The industry is undergoing rationalization, which could impact the plasma business.
• Dependence on market conditions and the ability to manage through downturns in the plasma business.