Paysafe (PSFE) stock tumbles, Oatly (OTLY) rises after Q2 earnings

Highlights

• Paysafe (NYSE: PSFE) stock fell 11.18%, and Oatly (NASDAQ: OTLY) stock rose 6.43% at around 9:45 am ET after declaring their quarterly results.
  
  
• Paysafe’s revenue jumped 13% YoY and Oatly revenue grew 53% over the previous year.
• Paysafe’s market cap is US$7.38 billion and Oatly’s market cap is US$9.98 billion.

Payment solutions provider Paysafe Ltd. (NYSE: PSFE) and Swedish food company Oatly Group (NASDAQ: OTLY) reported significant revenue growth in their June quarter on Monday.

Paysafe’s stock (PSFE) was trading at US$9.0601, down 11.18%, at 9:44 am ET, while Oatly stock (OTLY) was priced at US$17.955, up 6.43%, at 9:45 am ET after declaring their earnings.

Here we discuss the quarterly performance of the two companies.

Paysafe Ltd. (NYSE: PSFE)

Paysafe’s revenue was US$384.3 million in the second quarter ended June 30, 2021, a 13% growth year-over-year compared to US$341 million in Q2 the previous year. The net income of company was US$6.6 million, an improvement from the net loss of US$15.9 million.

The company has three main revenue segments. Integrated Processing segment generated US$191 million, a 7.2% growth, Digital Wallet segment revenue was US$97 million, a 6.8% increase, eCash Solutions segment’s revenue was US$103.88 million. The only loss came from intersegment amounting to US$8 million compared to US$4.47 million in Q2 of 2020. 

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Its adjusted EBITDA for the June quarter was US$118.8 million compared to US$110.4 million in the previous year, an increase of 8% year-over-year.

The company expects its Q3 revenue to remain between US$360 million to US$375 million and full-year 2021 revenue to be around US$1,530 million to US$1,550 million.

Its adjusted EBITDA guidance for Q3 is between US$95 million and US$110 million and for full year, it is between US$480 million and US$495 million.

The integrated platform provider has over 3600 employees in more than twelve global locations. Its annualized transaction volume was US$92 billion in 2020.  

The payment solution provider has a market capitalization of US$7.38 billion.

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Source – pixabay

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Oatly Group (NASDAQ: OTLY)

Oatly’s Q2 revenue was US$146 million, a 53% increase year-over-year compared to US$95.3 million in the same quarter the previous year. Its Q2 net loss was US$59.1 million or US$0.11 per share diluted against the net loss of US$4.8 million or US$0.01 per share diluted year ago.

The company forayed into two new geographies: Switzerland and Ireland in the quarter. It operates in Asia, Europe, and the Americas. The revenue from EMEA was US$78.53 million, a 31.6% increase from the prior year. Americas’ revenue was US$41.34 million, a 65% increase, and Asia revenue was US$26.28 million, reflecting a 148.6% growth year-over-year.

Oatly has opened a new facility in Ogden, UT, and plans another one in Texas in 2023. 

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In its revised outlook for full year 2021, it said it expects its revenue to be over US$690 million. It also expects gross margin of more than 40% and EBITDA margin of 20% in the long term. It foresees its production capacity to rise to 600 million liters of finished goods by the year end.

The Sweden-based food and drink company market cap is US$9.98 billion. Its products include Oat Drink, Creamy Oat, Oatgurt, Ice-creams among others.

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Bottomline

Both the companies have generated revenues better than the past year and their guidance for the third quarter and full year 2021 are in line with their previous expectations. The food company’s revenue surged 53% and payment solution provider’s revenue rose 13% YoY. However, investor must scrutinize other details of the companies before investing in them.