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5. Paysafe Limited (NYSE:PSFE)

Share Price Performance Since July 2021 Start: -87.01%

Number of Hedge Fund Investors In Q1 2024: 25

Paysafe Limited (NYSE:PSFE) is a payments services provider headquartered in London, the United Kingdom. The stock lost most of its value in 2021, the year in which it started trading on the NYSE. The first of these drops started soon after the listing. Paysafe Limited (NYSE:PSFE)’s shares started to tank in April 2021, although the drops were related more to a weakening macroeconomic environment as the impact of coronavirus lock downs continued to wreak havoc. The stock dropped by nearly 14% in August, after Paysafe Limited (NYSE:PSFE)’s third quarter revenue guidance of $360 million to $375 million missed analyst estimates of $384 million. The final nail in Paysafe Limited (NYSE:PSFE)’s coffin came in November 2021 when it reported earnings for the third quarter. The figures saw it report $353 million in revenue, which was significantly lower than $370 million in analyst expectations. It also cut earnings guidance by $60 million and revenue guidance by a whopping $700 million. Paysafe Limited (NYSE:PSFE)’s shares tanked by 41% as a result and have whimpered since then.

However, Paysafe Limited (NYSE:PSFE)’s shares soared by 24% in May 2024 when its $0.57 in earnings and $417 million in revenue beat analyst estimates of $0.55 and $408 million. During the earnings call, management shared:

As we broaden our wallet portfolio, this will allow Paysafe to strategically market to its new consumer groups and unlock market expansion. And, now that we’ve established three continuous quarters of growth in our classic digital wallet active users, we feel it’s important to transition our metrics to a broader view of the portfolio consistent with how we’re looking at the consumer segment going forward. Here, we’re showing a consumer acquisitions for the first quarter, which is approximately 1.4 million comprising new users from all consumer products and revenue streams. This led to 7.5 million active users for the quarter. While ARPU will vary across products, our focus on building an expanded wallet platform steers us towards a stronger scalable model to drive sustainable growth and value for Paysafe, our merchants and our consumers.