Paysign provides payment solutions for the blood plasma collection industry. The below piece from Altafox capital has all you need to know about Paysign (then called 3PEA). https://www.altafoxcapital.com/s/Alta-Fox-TPNL-Long-Idea-72418-xypk.pdf?fireglass_rsn=true
BTW, the excerpt from Paysign's investors' presentation with Business Drivers is bullshit. It took me some time to realize this. Note that the metric Funds Loaded on Cards is meaningless, because it's not "net" funds on cards but "Gross" funds ever loaded on cards (even though customers later withdraw funds). The total amount on cards is much lower and can be found on the BS (around $50M). Also, they don't show the number of active cardholders and the churn. A lot of window dressing on this slide on behalf of the management.
Also note, that operating cash flow almost entirely consists of funds loaded by cardholders. This money is not available freely to Paysign. Makes the valuation metric look impressive but it's meaningless.
Great write up! You and Run Rate PF Adj. EBITDA have turned me back onto this name big time. I'd urge you to look up the 2023 $5 Calls just as I did him, I think they are a fantastic and safe way to add leverage to the thesis.
BTW, the excerpt from Paysign's investors' presentation with Business Drivers is bullshit. It took me some time to realize this. Note that the metric Funds Loaded on Cards is meaningless, because it's not "net" funds on cards but "Gross" funds ever loaded on cards (even though customers later withdraw funds). The total amount on cards is much lower and can be found on the BS (around $50M). Also, they don't show the number of active cardholders and the churn. A lot of window dressing on this slide on behalf of the management.
Also note, that operating cash flow almost entirely consists of funds loaded by cardholders. This money is not available freely to Paysign. Makes the valuation metric look impressive but it's meaningless.
Great write up! You and Run Rate PF Adj. EBITDA have turned me back onto this name big time. I'd urge you to look up the 2023 $5 Calls just as I did him, I think they are a fantastic and safe way to add leverage to the thesis.
Disclosure: Long 2023 $5 Calls