Paysign Inc (PAYS) 2023 Q3 法說會逐字稿

Good afternoon. My name is Kevin, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Paysign Inc third quarter 2023 earnings conference call. (Operator instructions)

午安.我叫凱文，今天我將擔任你們的會議操作員。現在，我歡迎大家參加 Paysign Inc 2023 年第三季財報電話會議。 （操作員說明）

As a reminder, this conference call is being recorded, but comments on today's call regarding Paysign's financial results will be on a GAAP basis unless otherwise noted, Paysign's earnings release was disseminated to the SEC earlier today and can be found on the Investor Relations section of our website, Paysign.com, which includes reconciliations of non-GAAP measures to GAAP reported amounts.

提醒一下，本次電話會議正在錄音，但除非另有說明，否則今天電話會議上有關Paysign 財務業績的評論將基於GAAP 進行，除非另有說明，Paysign 的收益報告已於今天早些時候分發給SEC ，並且可以在《投資者關係》部分中找到。我們的網站 Paysign.com，其中包含非 GAAP 指標與 GAAP 報告金額的對帳。

Additionally, as set forth in more detail in our earnings release. I'd like to remind everyone that today's call will include forward-looking statements regarding Paysign's future performance. Actual performance could differ materially from those forward-looking statements. Information about the factors that could affect future performance as summarized at the end of Paysign's earnings release and in our recent SEC filings.

此外，正如我們的財報中更詳細地闡述的那樣。我想提醒大家，今天的電話會議將包括有關 Paysign 未來業績的前瞻性陳述。實際表現可能與這些前瞻性陳述有重大差異。有關可能影響未來業績的因素的信息，如 Paysign 收益發布末尾和我們最近提交給 SEC 的文件中所總結的那樣。

Lastly, a replay of this call will be available until February seventh, 2024. Please see Paysign's earnings release for details on how to access the replay. It's now my pleasure to turn the call over to Mr. Mark Newcomer, CEO. Please go ahead.

最後，本次電話會議的重播將持續到 2024 年 2 月 7 日。有關如何存取重播的詳細信息，請參閱 Paysign 的收益發布。現在我很高興將電話轉給執行長馬克紐科默先生。請繼續。

Thank you, Kevin, good afternoon, everyone, and thank you for joining Paysign's third quarter 2023 earnings call. I'm Mark Newcomer, Chief Executive Officer, and I'm pleased to share our third quarter financial results with you. I will briefly discuss our performance and provide updates on our plasma and patient affordability verticals before handing over to our CFO, Jeff Baker. Additionally, Matt Turner, President of patient affordability, will be joining us for the question-and-answer session.

謝謝 Kevin，大家下午好，謝謝您參加 Paysign 的 2023 年第三季財報電話會議。我是執行長馬克紐科默 (Mark Newcomer)，我很高興與您分享我們第三季的財務表現。在將工作交給我們的財務長 Jeff Baker 之前，我將簡要討論我們的業績並提供有關血漿和患者負擔能力垂直領域的最新資訊。此外，病患負擔能力總裁 Matt Turner 將參加我們的問答環節。

We delivered solid top and bottom-line growth this quarter, with revenue up 17% from last year's third quarter to $12.4 million and net profit improving by 29%, with all business segments contributing to our growth. We continued to see healthy growth in our plasma donor compensation businesses as we added a total of 19 new centers in the quarter, of which 16 are fully mature.

本季我們實現了穩健的營收和利潤成長，營收較去年第三季成長 17%，達到 1,240 萬美元，淨利潤成長 29%，所有業務部門都為我們的成長做出了貢獻。我們的血漿捐獻者補償業務持續健康成長，本季共新增 19 個新中心，其中 16 個已完全成熟。

We did not experience any center closures during the third quarter, and we exited the quarter servicing 462 centers. The average monthly revenue per center increased 7.8% compared to Q3 of last year and 6.7% from Q2 2023 to approximately $8,100. It should be noted that this level of eclipse the $8,000 per center milestone last seen prior to the COVID-19 pandemic. As our clients are focusing on increasing donations at the existing centers.

第三季我們沒有遇到任何中心關閉的情況，本季我們為 462 個中心提供服務。每個中心的平均月收入與去年第三季相比成長了 7.8%，與 2023 年第二季相比成長了 6.7%，達到約 8,100 美元。值得注意的是，這一水平超過了 COVID-19 大流行之前每中心 8,000 美元的里程碑。由於我們的客戶專注於增加現有中心的捐款。

We believe we will see this pattern continue into Q4 and beyond. As a result of a shift in client focus, we are adjusting our forecast of new center onboards in 2023 to 38 to 42 as many of the new center openings scheduled for Q4 have been pushed into next year.

我們相信我們將看到這種模式持續到第四季及以後。由於客戶關注點的轉變，我們將 2023 年新中心開業的預測調整為 38 至 42 個，因為原定於第四季度開業的許多新中心已推遲到明年。

We continue to bring new value adds in the plasma collection industry, including new interactive reporting features and portals designed to streamline center and managerial processes, further strengthening our product offering, with the goal of improving user engagement and increasing stickiness with special attention to helping our clients maximize the donor experience.

我們繼續為血漿採集產業帶來新的附加價值，包括新的互動式報告功能和旨在簡化中心和管理流程的入口網站，進一步加強我們的產品供應，目標是提高用戶參與度和增加黏性，特別注重幫助我們客戶最大限度地提高捐贈者的體驗。

The patient affordability vertical shows strong growth in the third quarter, reaching some important milestones. As we mentioned in our press release, this quarter saw us earn more than $1 million in top-line revenue in this segment. While we were excited about this number, we are more excited about the current pipeline we have built for the remainder of this year and into next.

患者負擔能力垂直領域在第三季度顯示出強勁增長，達到了一些重要的里程碑。正如我們在新聞稿中提到的，本季我們在該領域的營收超過 100 萬美元。雖然我們對這個數字感到興奮，但我們對我們為今年剩餘時間和明年建立的當前管道感到更興奮。

During the quarter, we launched three programs, two of which were transitions. One of the programs is the result of a yearlong selling cycle that resulted in Paysign being identified as the vendor of choice by this manufacturer for all future programs. This manufacturer has a very strong biosimilar portfolio and a long-term 10 plus year pipeline.

在本季度，我們啟動了三個計劃，其中兩個是過渡計劃。其中一個計劃是長達一年的銷售週期的結果，導致 Paysign 被該製造商確定為所有未來計劃的首選供應商。該製造商擁有非常強大的生物相似藥產品組合和長達 10 多年的長期產品線。

I'm especially excited to announce that we completed contract negotiations to launch a program for the nation's second largest pharmaceutical company. This will be our second program for that manufacturer. The program launched in October and immediately began delivering claims volume. This was a mid-size transition program with a substantial claim volume that provides benefit for an established product.

我特別高興地宣布，我們已經完成了為美國第二大製藥公司啟動專案的合約談判。這將是我們為該製造商提供的第二個項目。該計劃於 10 月啟動，並立即開始提供索賠量。這是一個中等規模的過渡計劃，索賠量很大，為現有產品帶來了好處。

We also completed contracts to transition the entire oncology portfolio for the nation's ninth largest pharmaceutical manufacturer. This represented four mature programs with consistent claims volume. Those four programs launching in October as well and will be contributing to our increasing revenue in this vertical.

我們也完成了為美國第九大製藥製造商過渡整個腫瘤產品組合的合約。這代表了四個具有一致索賠量的成熟計劃。這四個計劃也將於 10 月啟動，並將有助於我們在這一領域增加收入。

This manufacturer has also awarded us two additional programs that will launch in Q4 pending FDA approval. These are just a few examples where our product offerings and subject matter expertise are leading to major wins and strong growth in this vertical. Overall, we are seeing consistent increases in our claims volume and expect to double our average by end of the year.

該製造商還授予我們兩個額外項目，這些項目將在第四季度啟動，等待 FDA 批准。這些只是我們的產品和主題專業知識在該垂直領域帶來重大勝利和強勁增長的幾個例子。總體而言，我們的索賠數量持續增加，預計到年底將是平均值的兩倍。

With the addition of three new programs and others that launched in the beginning of October. We are now at 39 active patient affordability programs and expect to end the year with over 40 programs. This represents strong year-over-year growth in this program acquisition claim volume and top line revenue. At the close of the fourth quarter, we plan to share some information with you around our overall client mix, therapeutic class concentrations and some of the points that may give you a better understanding of this vertical.

增加了三個新計劃以及十月初推出的其他計劃。我們目前有 39 個活躍的患者負擔能力計劃，預計到今年年底將有超過 40 個計劃。這表明該計劃的收購索賠量和頂線收入同比強勁增長。在第四季度末，我們計劃與您分享一些有關我們的整體客戶組合、治療類別集中度以及一些可能讓您更好地了解這一垂直領域的要點的信息。

With that, I'll turn it over to Jeff.

有了這個，我會把它交給傑夫。

Thank you, Mark. Good afternoon, everyone. My comments today will be brief given all of the information Mark shared with you and all of the information in our press release and 10-Q, which will be filed before the market opens tomorrow. As Mark said, we had a solid quarter and reached a number of milestones across our business.

謝謝你，馬克。大家下午好。鑑於馬克與您分享的所有資訊以及我們的新聞稿和 10-Q 中的所有資訊（將於明天開市前提交），我今天的評論將很簡短。正如馬克所說，我們度過了一個穩定的季度，並在整個業務中實現了許多里程碑。

In our plasma business, our average revenue per plasma center per month grew to $8,102 versus $7,512, a year-over-year increase of 7.8%. This metric has not been over $8,000 since before the COVID-19 pandemic began in the first quarter of 2020. More importantly, we've seen this trend continue through October.

在我們的血漿業務中，每個血漿中心每月的平均收入從 7,512 美元增加到 8,102 美元，年增 7.8%。自 2020 年第一季 COVID-19 大流行開始以來，這一指標從未超過 8,000 美元。更重要的是，我們看到這一趨勢持續到 10 月。

We exited the quarter with 462 plasma centers and now expect to exit the year with approximately 465 plasma centers as customers have shifted their strategy to collections versus new openings as their financing costs have significantly increased.

我們在本季結束時擁有 462 個血漿中心，現在預計今年將擁有約 465 個血漿中心，因為客戶已將策略轉向收集而不是新開血漿中心，因為他們的融資成本顯著增加。

In our pharma patient affordability business. We exited Q3 with 34 active patient affordability programs and currently have 39 active programs, having launched an additional five programs in October. For the third quarter, patient affordability revenue surpassed the $1 million mark increasing 142% versus the same period last year. Our strategy to diversify our business into other health care payment verticals is starting to come to fruition.

在我們的製藥患者負擔能力業務中。第三季結束時，我們有 34 個有效的患者負擔能力計劃，目前有 39 個有效計劃，並在 10 月啟動了另外 5 個計劃。第三季度，患者負擔能力收入突破 100 萬美元大關，與去年同期相比成長 142%。我們將業務多元化至其他醫療保健支付垂直領域的策略已開始取得成果。

As for the financial highlights of the third quarter of 2023 versus the same period last year. Total revenues of $12.4 million increased $1.8 million or 17%. Gross profit margin for the quarter was 51.1% versus 54.3% during the same period last year, due mainly to inflationary pressures and the lack of pharma prepaid revenue this year, which was a 2.4% drag.

至於 2023 年第三季與去年同期的財務亮點。總收入為 1,240 萬美元，增加了 180 萬美元，即 17%。該季度的毛利率為 51.1%，而去年同期為 54.3%，這主要是由於通膨壓力和今年醫藥預付費收入的缺乏，拖累了 2.4%。

SG&A for the quarter increased 7% to $4.7 million, with total operating expenses increasing 12% to $5.7 million. We exited this quarter with 112 employees versus 95 employees during the same period last year to support the growth across our business. For the quarter, we posted net income of $1.1 million versus net income of $852,000. Earnings per share for both periods were $0.02 per share.

本季的 SG&A 成長 7%，達到 470 萬美元，總營運支出成長 12%，達到 570 萬美元。本季我們有 112 名員工，而去年同期為 95 名員工，以支持我們整個業務的成長。本季度，我們公佈的淨利潤為 110 萬美元，而淨利潤為 852,000 美元。兩個時期的每股盈餘均為每股 0.02 美元。

The second quarter adjusted EBITDA, which is a non-GAAP measure that adds back stock compensation to EBITDA, was $2.3 million, or $0.04 per diluted share versus $1.9 million and $0.04 per diluted share for the same period last year. The fully diluted share count for the quarters used in calculating the per-share amounts was $53.5 million and $53.4 million, respectively.

第二季調整後 EBITDA（非 GAAP 衡量標準，將股票補償加到 EBITDA 中）為 230 萬美元，即稀釋後每股 0.04 美元，而去年同期為 190 萬美元，稀釋後每股 0.04 美元。用於計算每股金額的季度完全稀釋後的股數分別為 5,350 萬美元和 5,340 萬美元。

Regarding the health of our company, we exited the quarter with $9.9 million in unrestricted cash and zero debt, a $2.2 million increase over the second quarter of 2023 and a $228,000 increase from the end of 2022. Year to date, we have used 1.1 million to repurchase 394,558 shares of our common stock.

關於我們公司的健康狀況，我們在本季結束時擁有990 萬美元的不受限制的現金和零債務，比2023 年第二季增加了220 萬美元，比2022 年底增加了228,000 美元。今年迄今，我們已使用了110 萬美元回購 394,558 股普通股。

We expect operating improvements to continue in the fourth quarter with year-over-year revenue growth slightly better than this quarter's revenue growth of 17% and operating expenses equivalent to our second quarter 2023 operating expenses of $6.3 million, which reflects seasonal costs relative to the third quarter.

我們預計第四季營運將持續改善，年比營收成長略好於本季17% 的營收成長，營運費用相當於2023 年第二季營運費用630 萬美元，這反映了相對於去年第二季的季節性成本。第三季。

We are on track to meet our revenue and adjusted EBITDA guidance, we provided in March, principally revenue to be in the range of $44 million to $46 million and adjusted EBITDA to be in the range of $6 million to $7.5 million.

我們預計將實現我們 3 月份提供的收入和調整後 EBITDA 指導，主要是收入在 4,400 萬美元至 4,600 萬美元範圍內，調整後 EBITDA 在 600 萬美元至 750 萬美元範圍內。

With that, I would like to turn the call back over to Kevin for question and answers.

至此，我想將電話轉回凱文以進行問答。

Thank you. (Operator instructions)

謝謝。 （操作員說明）

Gary Prestopino, Barrington Research.

加里‧普雷斯托皮諾，巴靈頓研究中心。

Hey.

嘿。

That's -- I'm hearing a lot of static factors. Somebody move on paper.

那是——我聽到了很多靜態因素。有人在紙上移動。

Hello?

你好？

Gary, your line is now live.

加里，您的線路現已上線。

Okay. Hey, guys. I kind of jumped on the call just a little bit late, so and I caught some of the narrative around the centers, you added 19 plasma centers this quarter. Is that correct?

好的。大家好。我有點晚了才接到電話，所以我聽到了一些有關這些中心的報道，本季度增加了 19 個血漿中心。那是對的嗎？

That is right.

沒錯。

Okay. And then you're only adding how many in Q4?

好的。然後你只在第四季添加多少？

It is like five-ish, what happened, we had one customer (technical difficulty) because it was too risky from them from a safety perspective and then we've added, we are adding others. What we seen is a lot of our pretty much all the plasma guys have stopped opening new centers because the cost of financing new centers has gone significantly up for them. So what they done is, we focused and instead of opening new centers to get to the number of leaders that they need they are increasing their payouts to continue to track [pastrogen].

就像五點左右，發生了什麼，我們有一個客戶（技術困難），因為從安全角度來看，他們的風險太大，然後我們添加了，我們正在添加其他客戶。我們看到的是，我們幾乎所有的血漿人員都已停止開設新中心，因為新中心的融資成本已大幅上升。所以他們所做的是，我們集中精力，不是開設新的中心來獲得他們需要的領導者數量，而是增加支出以繼續追蹤[pastrogen]。

Okay. So the one about that one, you won a large contract and you hadn't really been putting any new centers on the books. And you said that that was going to maybe be a 2024 event. Is that Phil applicable?

好的。因此，關於那個，你贏得了一份大合同，但你並沒有真正在賬簿上放置任何新的中心。你說過這可能是 2024 年的活動。菲爾適用嗎？

Yeah Gary. It's marked. That is still out there however, we've been informed that they have the lays with the organisations on some technology points that is probably going to be delayed anywhere between 6 or 12 months. So for us, it's not something I think we should keep digged to the mixer, we should probably pull that out.

是的，加里。已標記。然而，這仍然存在，我們獲悉他們與組織在某些技術點上達成了協議，這些技術點可能會被推遲 6 到 12 個月。所以對我們來說，我認為這不是我們應該繼續挖掘的東西，我們應該把它拿出來。

So again, I don't know there's a lot of static on the line. So I'm kind of trying to hear these answers, but is that -- as we go into 2024 then, is it safe to assume that because these players have kind of pulled back on their expansion that your response to that, you wouldn't have to be investing more money into growth to service these new centers, is that a correct assumption?

再說一次，我不知道線路上有很多靜電。所以我想聽聽這些答案，但是，當我們進入 2024 年時，是否可以安全地假設，因為這些玩家在某種程度上停止了擴張，所以你對此的反應是，你不會不必投入更多資金來促進成長來為這些新中心提供服務，這是一個正確的假設嗎？

Well, it's not the money. What you have seen is the pullback in the number of new openings that are half there, so in 2023 there are about, I've been already been told through the end of the third quarter about 80 new openings, we'll see where everything lands. I mean we still maintain our market share which is it. We can't control what the industry is doing, we can only control what we are doing.

好吧，這不是錢。你所看到的是新空缺職位數量的回落，減少了一半，所以到 2023 年，我已經被告知到第三季度末大約有 80 個新空缺職位，我們將看看一切都在哪裡。土地。我的意思是我們仍然保持我們的市場份額。我們無法控制產業在做什麼，我們只能控制自己在做什麼。

In 2024, our guess is we will slowed down in the number of new openings but like I said earlier that's been offset, because they are kind-ish instead of kind of reduced in the payout like, that was the strategy after COVID, reduce the payout and more people would come back, we are actually seeing them increase the payout back at the COVID levels.

到2024 年，我們的猜測是，我們將放緩新開業的數量，但正如我之前所說，這已被抵消，因為它們是友善的，而不是減少支出，就像新冠疫情之後的策略一樣，減少支出支出，更多的人會回來，我們實際上看到他們將支出增加到新冠病毒水平。

People are coming back because as they try to supplement their income and do other things and you saw that in our, average revenue percentage per month go up. So we said it already, we should maintain a market share about 40% this year, next year and going forward as long as, unless we win a big contract and we will look at depending on the pricing.

人們回來是因為當他們試圖補充收入並做其他事情時，你會看到我們的每月平均收入百分比正在上升。所以我們已經說過，今年、明年以及未來我們應該保持 40% 左右的市場份額，除非我們贏得一份大合同，我們將根據定價來考慮。

Okay. Thank you.

好的。謝謝。

Thank you. As a reminder, that's star one to you place in the question queue. One moment, please. While we poll for further questions. We reached the end of our question-and-answer session. I'd like to turn the floor back over for any further or closing comments.

謝謝。提醒一下，這是您在問題佇列中放置的第一顆星。稍等一會兒。當我們投票詢問進一步的問題時。我們的問答環節結束了。我想重新發言以徵求進一步的意見或結束意見。

Thank you gentlemen. And I want to thank everybody for joining us today, we'll look forward to seeing you on my next quarterly call. Take care.

謝謝先生們。我要感謝大家今天加入我們，我們期待在下次季度電話會議上見到您。小心。

Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.

謝謝。今天的電話會議和網路廣播到此結束。此時您可以斷開線路並度過美好的一天。我們感謝您今天的參與。