Q: What do you think of payfare’s results? Cash flows seem to be growing quickly now.
5i Research Answer:
PAY recorded slight misses on EPS and revenue. EPS came in at 16c vs estimates of 17c. Revenue came in at $56M missing estimates of $57M but growing 20% year-over-year. Active users were up 24% year-over-year at the end of Q2. Total gross dollar value was $3.8B, up 31% from the prior year. Essentially all profitability measure were up significantly and free cash flow was $9.6M compared to $0.2M in the prior year period. We think these are strong results highlighting a growth in top line, bottom line, and user base. The stock is down 1% at the time of writing this likely due to the misses on estimates, but we think these are good results and PAY continues to be cheap at 10x forward earnings.