🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Paymentus shoots up 27% on strong Q4 EBITDA and upbeat guidance

Published 03/05/2024, 03:14 PM
Updated 03/05/2024, 03:17 PM
© Reuters.  Paymentus (PAY) shoots up 27% on strong Q4 EBITDA and upbeat guidance

Shares of Paymentus (PAY) surged 27% on Tuesday, a day after the cloud-based bill payment technology provider reported better-than-expected Q4 results and issued robust guidance for full-year EBITDA.

The company reported earnings per share (EPS) of $0.11, surpassing analysts' predictions of $0.06. Revenue came in at $164.8 million, beating the consensus estimate of $157.38 million.

The adjusted EBITDA for the quarter stood at $19.9 million, significantly higher than the anticipated $13.4 million.

Looking ahead, Paymentus forecasts an adjusted EBITDA in the range of $65 million to $75 million for FY2024, compared to the $65.3 million expected by analysts.

Furthermore, revenue is estimated to be between $720 million and $744 million, while analysts were looking for $732 million.

In the wake of the report, Goldman Sachs analysts raised their 2023, 2024, and 2025 adjusted EBITDA estimates and hiked the target price from $18 to $20.

“While we remain positive on the business, we believe the current multiple of ~21x our updated 2025 EBITDA estimates broadly reflects this, particularly given the lower levels of FCF conversion at the company,” said analysts.

“However, we believe that PAY should continue to deliver strong, consistent performance, enhanced by the continued digitization of the bill pay market and the structural shift in the market towards biller direct models,” they added.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.