By Sam Boughedda
Investing.com — Paysafe Ltd (NYSE:PSFE) shares fell 40% on Thursday after the company cut 2021 revenue guidance.
The company, which is backed by Blackstone and CVC Capital, cut full-year 2021 revenue guidance to between $1.47 billion and $1.48 billion, compared to the previous range of $1.53 billion and $1.55 billion. Consensus estimates expected $1.54 billion. Paysafe also cut gross profit and adjusted earnings guidance for 2021.
The reduction was attributed to "gambling regulations and softness in key European markets" and performance challenges that influence its digital wallet segment alongside the scope and timing of new ecommerce customer agreements.
Paysafe's third quarter revenue fell 1%, to $353.6 million and missed the consensus of $370.59 million. Adjusted earnings also fell 1%, to $106.4 million.
Total payment volume increased 19%, to $31.1 billion.
Philip McHugh, CEO of Paysafe, stated: "In the third quarter we reported Adjusted EBITDA in line with our expectations, despite softer than expected revenue, reflecting both market and performance challenges within the digital wallet business.
"While the recent trend will drive an adjusted financial outlook, we continue to see strong momentum across the business. Our position to win in high growth and disruptive markets including online sports betting and crypto continues to accelerate, coupled with strong delivery against our cost and technology platform targets."
Paysafe shares are currently priced at $4.34.