Paysafe stock jumped Wednesday after the online payments company reported sales that were higher than Wall Street had penciled in and beat a previous forecast by the management.
Paysafe reported revenue of $371.7 million in the fourth quarter, above analysts’ consensus forecast of $357 million. When the company reported its third-quarter earnings in November, management told investors to expect revenue of up to $365 million.
Shares of Paysafe climbed nearly 10% in premarket trading Wednesday.
The company said total payment volume in the quarter increased 20% to $31.5 billion.
The U.K. company operates in three segments: integrated processing, digital wallets, and eCash solutions. The eCash solutions have allowed Americans without bank accounts to pay for online games using cash paid at retail stores like 7-Eleven and Dollar General.
Paysafe recently expanded into New York’s regulated sports-betting market. It is also working with Hard Rock Online Casino New Jerseyto provide online credit- and debit-card payment processing for its mobile app.
In a statement, Paysafe said, “turnaround of our digital wallet business is well under way with the actions we’ve taken driving positive results, repositioning the business for success, and enabling us to absorb market risks in Europe” associated with gambling regulations. Revenue in the digital wallet operation fell sharply in the third quarter as a result of increased regulation.
For 2022, the company said revenue will be in the range of $1.53 billion to $1.58 billion, in line with analysts’ forecasts of $1.54 billion.
In the current first quarter, which ends in March, Paysafe expects to deliver revenue of $355 million to $365 million, again in line with analysts’ consensus call of $363 million.
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