What happened?

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Lumen Photos / Shutterstock

Shares of Paysafe plunged 16% on Monday after the company’s quarterly revenue guidance missed analyst expectations.

Management said it now expects third-quarter revenue of between $360 million and $375 million versus analyst estimates of $384.4 million.

Is it time to panic?

If you’re a Paysafe shareholder, it wasn’t all bad news coming out of the company.

Despite the downbeat guidance, management had plenty of positive things to say about the company’s recent financial performance.

For one, Paysafe’s second-quarter revenue increased 13% to $384 million, actually topping Wall Street’s expectations of $378.5 million. Meanwhile, earnings of 1 cent per share managed to meet forecasts.

“We are pleased with the continued momentum Paysafe exhibited over the second quarter with impressive growth and several key wins across iGaming and other attractive digital commerce verticals, including crypto,” said Paysafe CEO Philip McHugh.

At iGaming — Paysafe’s key online gambling payment division — revenue surged 48%.

With the online sports betting market continuing to grow at a breakneck pace, Paysafe looks as well-positioned as ever to capitalize.

Looking ahead

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Travis Wolfe / Shutterstock

Today’s double-digit decline isn’t easy to stomach. But it’s tough to ignore Paysafe’s still attractive long-term growth prospects.

Earlier this month, the company acquired alternative payments platform Pago Efectivo, giving investors exposure to the rapidly expanding Latin American market as well.

“In total, we remain confident in our 2021 outlook and the years ahead as we continue to see the combination of our eCommerce gateway, digital wallets, online banking, and eCash solutions as a true differentiator in the market,” McHugh concluded.

With the stock now off more than 50% from its 52-week highs set in January, it might be an opportune time to bet on that bullishness.

How to purchase Paysafe

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Bro Crock / Shutterstock

You don’t need a whole lot of money to start investing in the exciting world of fintech.

If you’re working with a smaller budget, you may want to use an investing app that allows you to buy “slices” of shares for fintech upstarts like Paysafe — especially one that comes with no fees or commissions.

Another low-budget option is using an app that allows you to invest with just your “spare change," rounding up to the nearest dollar on all your purchases to help you build a diversified portfolio over time.

About the Author

Brian Pacampara, CFA

Brian Pacampara, CFA

Associate Editor, Investing

Brian is an associate editor for MoneyWise. A long-time stock junkie, his work has appeared in The Motley Fool, Seeking Alpha, and Yahoo Finance. He believes in owning "Forever Stocks" — a rare group of businesses that have paid out dividends for decades. Brian holds the Chartered Financial Analyst (CFA) designation.

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