Sam Boughedda

Investing.com — Paysafe Ltd (NYSE 🙂 shares fell 40% on Thursday after the company cut 2021 revenue guidance.

Blackstone Capital and CVC Capital have backed the company. The full-year 2021 revenue guidance was cut to $1.47billion and $1.48billion, respectively, from $1.53 billion and 1.55 billion. Consensus estimates expected $1.54 billion. Paysafe has also reduced its gross profit guidance and adjusted earnings guidance to 2021. 

This was due to the “gambling regulations, softness in key European market” and performance issues that affect its digital wallet segment. It also reflects the timing and scope of new ecommerce customers agreements.

Paysafe reported a 1% drop in third-quarter revenue to $353.6million, which was below the consensus estimate of $370.59million. The adjusted earnings fell by 1% to $106.4 Million.

The total payment volume increased by 19% to $31.1 million

Paysafe CEO Philip McHugh stated that Adjusted EBITDA was in line with expectations in the third quarter despite lower than anticipated revenue. This is due to both performance and market challenges within the digital wallet industry. 

 “While the recent trend will drive an adjusted financial outlook, we continue to see strong momentum across the business. We continue to be able to compete in highly-growth and disruptive markets like online gambling and crypto, and we are achieving strong results against our technology platform and cost targets.

Paysafe shares currently have a price of $4.34