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2021-08-23

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Paysafe: Where Is The Floor?<blockquote>Paysafe：地板在哪里？</blockquote>

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{"i18n":{"language":"zh_CN"},"detailType":1,"isChannel":false,"data":{"magic":2,"id":835665696,"tweetId":"835665696","gmtCreate":1629712784115,"gmtModify":1631890259873,"author":{"id":3587085224026177,"idStr":"3587085224026177","authorId":3587085224026177,"authorIdStr":"3587085224026177","name":"Jessyyyyy","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"userType":1,"introduction":"","boolIsFan":false,"boolIsHead":false,"crmLevel":11,"crmLevelSwitch":0,"individualDisplayBadges":[],"wearingBadges":[],"fanSize":6,"starInvestorFlag":false},"themes":[],"images":[],"coverImages":[],"title":"","extraTitle":"","html":"<html><head></head><body>Wow</body></html>","htmlText":"<html><head></head><body>Wow</body></html>","text":"Wow","highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":1,"repostSize":0,"favoriteSize":0,"link":"https://laohu8.com/post/835665696","repostId":1190758315,"repostType":4,"repost":{"id":"1190758315","kind":"news","pubTimestamp":1629712689,"share":"https://www.laohu8.com/m/news/1190758315?lang=zh_CN&edition=full","pubTime":"2021-08-23 17:58","market":"us","language":"en","title":"Paysafe: Where Is The Floor?<blockquote>Paysafe：地板在哪里？</blockquote>","url":"https://stock-news.laohu8.com/highlight/detail?id=1190758315","media":"seekingalpha","summary":"Summary\n\nPaysafe's revenue growth for its fiscal 2021 second quarter has sped up.\nHigh leverage has ","content":"Summary<blockquote>总结</blockquote> <ul> <li>Paysafe's revenue growth for its fiscal 2021 second quarter has sped up.</li> <li>High leverage has hampered profitability and will remain a headwind until the company generates enough free cash flow on a quarterly basis to pay it back.</li> <li>The share price continues to fall on the back of negative SPAC sentiment.</li> </ul> <img src=\"https://static.tigerbbs.com/86757d2b7d17b7fe7071210bad77f795\" tg-width=\"1536\" tg-height=\"800\" width=\"100%\" height=\"auto\">ipopba/iStock via Getty Images<blockquote><ul><li>Paysafe 2021财年第二季度的收入增长有所加快。</li><li>高杠杆阻碍了盈利能力，并且在公司每季度产生足够的自由现金流来偿还之前，仍将是一个阻力。</li><li>受SPAC负面情绪影响，股价继续下跌。</li></ul>ipopba/iStock来自Getty Images</blockquote> Paysafe's (PSFE) fall was immediately followed by another fall. The company has now become one of the poster boys for the decline of special purpose acquisition companies and DeSPACs. Of how a go-public conduit that was once held in high regard eventually came crashing down when exposed to the advent of time. For many Paysafe bulls, the worst possible scenario has come to pass. But they are not alone, nearly all investors in DeSPACs are feeling the smoke from the burning of their respective investments. This is despite these targeting entirely different sectors, customers, and geographies.<blockquote>Paysafe(PSFE)下跌后立即又出现下跌。该公司现已成为特殊目的收购公司和DESPAC衰落的典型代表之一。一个曾经备受推崇的上市渠道如何在暴露于时间的到来时最终崩溃。对于许多Paysafe多头来说，最糟糕的情况已经发生。但他们并不孤单，几乎所有DeSPACs的投资者都感受到了各自投资燃烧的硝烟。尽管这些针对的是完全不同的行业、客户和地区。</blockquote> To illustrate this conundrum, a riddle. What does a dog toy company, a direct-to-consumer telehealth company, a digital lender, and Paysafe have in common apart from having been SPACs?<blockquote>为了说明这个难题，一个谜语。除了SPAC之外，狗玩具公司、直接面向消费者的远程医疗公司、数字贷款机构和Paysafe还有什么共同点？</blockquote> <img src=\"https://static.tigerbbs.com/88b2c677e09e609cb1130119524f7580\" tg-width=\"635\" tg-height=\"467\" width=\"100%\" height=\"auto\">Data by YCharts<blockquote>数据来自YCharts</blockquote> Paysafe's bulls have been left reeling, we all have. As DeSPACs regardless of their underlying financials and industry continue to show a strong correlation with each other. I continue to believe this to be a short-term aberration. In the longer term, it should melt and allow companies with solid financials to rise to higher values.<blockquote>Paysafe的多头一直感到震惊，我们都是如此。因为despac无论其基础财务状况和行业如何，都继续表现出彼此之间的强烈相关性。我仍然认为这是一种短期偏差。从长远来看，它应该会融化，让财务状况稳健的公司升至更高的价值。</blockquote> The problem left for Paysafe bulls is does the company possess these solid financials?<blockquote>留给Paysafe多头的问题是，该公司是否拥有这些稳健的财务状况？</blockquote> Leverage, Faster Growth, And Cash Burn<blockquote>杠杆、更快的增长和现金消耗</blockquote> Paysafe recently published its fiscal 2021 second-quarter results. This saw the company realize revenue of$384.34 million, a year-over-year increase of 12.7% and a beat of $5.9 million on analyst estimates. It's encouraging that the rate of revenue growth sped up from the 5% recorded in the previous quarter as the company was able to record a 41% YoY growth in payment volume to $32 billion.<blockquote>Paysafe最近公布了2021财年第二季度业绩。该公司实现营收3.8434亿美元，同比增长12.7%，比分析师预期高出590万美元。令人鼓舞的是，收入增长率较上一季度的5%有所加快，该公司的支付量同比增长41%，达到320亿美元。</blockquote> Unfortunately, this did not translate to material net profit for the period which came in at just $6.6 million, albeit an improvement on the net loss of $15.9 million in the year-ago quarter. For its 2021 fiscal year, Paysafe expects revenue to be in the range of $1.53 billion to $1.55 billion versus a consensus of $1.55 billion. Adjusted EBITDA is expected to be in the range of $480 million to $495 million. This places the company's forward price to revenue multiple at 3.85x. Of course, this rises to 5x when the net debt of $1.87 billion Paysafe held on its balance as at the end of the quarter is considered.<blockquote>不幸的是，尽管比去年同期1590万美元的净亏损有所改善，但这并没有转化为该期间的重大净利润，仅为660万美元。Paysafe预计2021财年的收入将在15.3亿美元至15.5亿美元之间，而市场普遍预期为15.5亿美元。调整后EBITDA预计在4.8亿美元至4.95亿美元之间。这使得该公司的远期市盈率为3.85倍。当然，如果考虑到截至本季度末Paysafe余额中18.7亿美元的净债务，这一数字将上升至5倍。</blockquote> Indeed, the company held long-term debt of $2.1 billion only partially offset by cash and equivalents of $248 million. As free cash flow during the quarter was negative at $8.5 million, the company is not currently in the position of being able to pay back its debt through its operations. This cost $61 million in interest payment during the quarter, up 15% from the year-ago quarter and around 9x times net income during the period. This debt was inherited from the company's previous private equity owners and will restrict the company's operational capacity until it can be paid off from consistent free cash flow.<blockquote>事实上，该公司持有21亿美元的长期债务，仅被2.48亿美元的现金及等价物部分抵消。由于本季度自由现金流为负850万美元，该公司目前无法通过运营偿还债务。该季度的利息支付成本为6100万美元，比去年同期增长15%，约为同期净利润的9倍。这笔债务是从公司之前的私募股权所有者那里继承的，将限制公司的运营能力，直到能够从持续的自由现金流中偿还。</blockquote> The company also announced the acquisition ofSafetypay, a Florida-based payments platform that enables eCommerce transactions and operating primarily in Latin America. However, while the acquisition cost of $441 million was provided, the underlying financials for Safetypay was not.<blockquote>该公司还宣布收购SafetyPay，这是一家总部位于佛罗里达州的支付平台，支持电子商务交易，主要在拉丁美洲运营。然而，虽然提供了4.41亿美元的收购成本，但Safetypay的基本财务状况却没有提供。</blockquote> What Comes Next?<blockquote>接下来会发生什么？</blockquote> I like many other investors in SPAC companies expected Q2 2021 results period to be when the correlation begins to melt and a period that would allow stronger companies to start detaching themselves from the SPAC herd. However, this correlation only seems to have heightened. In this sense, Paysafe's Q2 2021 results never really mattered. Whether good or bad the common shares would have fallen. This systematic selloff of SPACs is a holdout from the SPACs are dead trade mantra.<blockquote>我和SPAC公司的许多其他投资者一样，预计2021年第二季度业绩期将是相关性开始消失的时期，也是让实力更强的公司开始脱离SPAC群体的时期。然而，这种相关性似乎只会加剧。从这个意义上说，Paysafe 2021年第二季度的业绩从未真正重要。不管是好是坏，普通股都会下跌。SPAC的系统性抛售是对SPAC已死交易口号的抵制。</blockquote> So what comes next?<blockquote>那么接下来会发生什么？</blockquote> There will eventually be a detachment from the retail-led ebbs and flows of the wider SPAC market and Paysafe might stand to benefit whenever this happens. The Q2 results were decent with growth picking up and the company improving its profitability. While I'd stop short of calling the financials solid as high debt will continue to weigh down on profitability, Paysafe is not standing still and stands to benefit from the expanding North America iGaming market. For future returns, Paysafe bulls should in the interim look to the wider SPAC market where sentiment currently sits at rock bottom. In the longer term, look to higher profitability to support a concrete plan by management to materially reduce debt. This will help the company reduce its current $200 million annual interest cost.<blockquote>最终将脱离零售业主导的更广泛的SPAC市场的潮起潮落，无论何时发生这种情况，Paysafe都可能受益。第二季度业绩不错，增长加快，公司盈利能力提高。虽然我不会称财务状况稳健，因为高债务将继续拖累盈利能力，但Paysafe并没有停滞不前，并将从不断扩大的北美iGaming市场中受益。对于未来的回报，Paysafe多头应该暂时关注更广泛的SPAC市场，该市场的情绪目前处于谷底。从长远来看，寻求更高的盈利能力来支持管理层大幅减少债务的具体计划。这将有助于该公司降低目前每年2亿美元的利息成本。</blockquote> DeSPACs are not standing still. And I continue to believe that current negative sentiment has run its course and the sell SPAC trade too crowded. Hence, just as time saw companies once held in high regard come crashing down, it will see them rise back up.<blockquote>DeSPACs并没有停滞不前。我仍然认为，当前的负面情绪已经结束，卖出SPAC交易过于拥挤。因此，正如时间看到曾经备受推崇的公司崩溃一样，它也会看到它们重新崛起。</blockquote>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Paysafe: Where Is The Floor?<blockquote>Paysafe：地板在哪里？</blockquote></title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 12.5px; color: #7E829C; margin: 0;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPaysafe: Where Is The Floor?<blockquote>Paysafe：地板在哪里？</blockquote>\n</h2>\n<h4 class=\"meta\">\n\nseekingalpha2021-08-23 17:58\n\n</h4>\n</header>\n<article>\nSummary<blockquote>总结</blockquote> <ul> <li>Paysafe's revenue growth for its fiscal 2021 second quarter has sped up.</li> <li>High leverage has hampered profitability and will remain a headwind until the company generates enough free cash flow on a quarterly basis to pay it back.</li> <li>The share price continues to fall on the back of negative SPAC sentiment.</li> </ul> <img src=\"https://static.tigerbbs.com/86757d2b7d17b7fe7071210bad77f795\" tg-width=\"1536\" tg-height=\"800\" width=\"100%\" height=\"auto\">ipopba/iStock via Getty Images<blockquote><ul><li>Paysafe 2021财年第二季度的收入增长有所加快。</li><li>高杠杆阻碍了盈利能力，并且在公司每季度产生足够的自由现金流来偿还之前，仍将是一个阻力。</li><li>受SPAC负面情绪影响，股价继续下跌。</li></ul>ipopba/iStock来自Getty Images</blockquote> Paysafe's (PSFE) fall was immediately followed by another fall. The company has now become one of the poster boys for the decline of special purpose acquisition companies and DeSPACs. Of how a go-public conduit that was once held in high regard eventually came crashing down when exposed to the advent of time. For many Paysafe bulls, the worst possible scenario has come to pass. But they are not alone, nearly all investors in DeSPACs are feeling the smoke from the burning of their respective investments. This is despite these targeting entirely different sectors, customers, and geographies.<blockquote>Paysafe(PSFE)下跌后立即又出现下跌。该公司现已成为特殊目的收购公司和DESPAC衰落的典型代表之一。一个曾经备受推崇的上市渠道如何在暴露于时间的到来时最终崩溃。对于许多Paysafe多头来说，最糟糕的情况已经发生。但他们并不孤单，几乎所有DeSPACs的投资者都感受到了各自投资燃烧的硝烟。尽管这些针对的是完全不同的行业、客户和地区。</blockquote> To illustrate this conundrum, a riddle. What does a dog toy company, a direct-to-consumer telehealth company, a digital lender, and Paysafe have in common apart from having been SPACs?<blockquote>为了说明这个难题，一个谜语。除了SPAC之外，狗玩具公司、直接面向消费者的远程医疗公司、数字贷款机构和Paysafe还有什么共同点？</blockquote> <img src=\"https://static.tigerbbs.com/88b2c677e09e609cb1130119524f7580\" tg-width=\"635\" tg-height=\"467\" width=\"100%\" height=\"auto\">Data by YCharts<blockquote>数据来自YCharts</blockquote> Paysafe's bulls have been left reeling, we all have. As DeSPACs regardless of their underlying financials and industry continue to show a strong correlation with each other. I continue to believe this to be a short-term aberration. In the longer term, it should melt and allow companies with solid financials to rise to higher values.<blockquote>Paysafe的多头一直感到震惊，我们都是如此。因为despac无论其基础财务状况和行业如何，都继续表现出彼此之间的强烈相关性。我仍然认为这是一种短期偏差。从长远来看，它应该会融化，让财务状况稳健的公司升至更高的价值。</blockquote> The problem left for Paysafe bulls is does the company possess these solid financials?<blockquote>留给Paysafe多头的问题是，该公司是否拥有这些稳健的财务状况？</blockquote> Leverage, Faster Growth, And Cash Burn<blockquote>杠杆、更快的增长和现金消耗</blockquote> Paysafe recently published its fiscal 2021 second-quarter results. This saw the company realize revenue of$384.34 million, a year-over-year increase of 12.7% and a beat of $5.9 million on analyst estimates. It's encouraging that the rate of revenue growth sped up from the 5% recorded in the previous quarter as the company was able to record a 41% YoY growth in payment volume to $32 billion.<blockquote>Paysafe最近公布了2021财年第二季度业绩。该公司实现营收3.8434亿美元，同比增长12.7%，比分析师预期高出590万美元。令人鼓舞的是，收入增长率较上一季度的5%有所加快，该公司的支付量同比增长41%，达到320亿美元。</blockquote> Unfortunately, this did not translate to material net profit for the period which came in at just $6.6 million, albeit an improvement on the net loss of $15.9 million in the year-ago quarter. For its 2021 fiscal year, Paysafe expects revenue to be in the range of $1.53 billion to $1.55 billion versus a consensus of $1.55 billion. Adjusted EBITDA is expected to be in the range of $480 million to $495 million. This places the company's forward price to revenue multiple at 3.85x. Of course, this rises to 5x when the net debt of $1.87 billion Paysafe held on its balance as at the end of the quarter is considered.<blockquote>不幸的是，尽管比去年同期1590万美元的净亏损有所改善，但这并没有转化为该期间的重大净利润，仅为660万美元。Paysafe预计2021财年的收入将在15.3亿美元至15.5亿美元之间，而市场普遍预期为15.5亿美元。调整后EBITDA预计在4.8亿美元至4.95亿美元之间。这使得该公司的远期市盈率为3.85倍。当然，如果考虑到截至本季度末Paysafe余额中18.7亿美元的净债务，这一数字将上升至5倍。</blockquote> Indeed, the company held long-term debt of $2.1 billion only partially offset by cash and equivalents of $248 million. As free cash flow during the quarter was negative at $8.5 million, the company is not currently in the position of being able to pay back its debt through its operations. This cost $61 million in interest payment during the quarter, up 15% from the year-ago quarter and around 9x times net income during the period. This debt was inherited from the company's previous private equity owners and will restrict the company's operational capacity until it can be paid off from consistent free cash flow.<blockquote>事实上，该公司持有21亿美元的长期债务，仅被2.48亿美元的现金及等价物部分抵消。由于本季度自由现金流为负850万美元，该公司目前无法通过运营偿还债务。该季度的利息支付成本为6100万美元，比去年同期增长15%，约为同期净利润的9倍。这笔债务是从公司之前的私募股权所有者那里继承的，将限制公司的运营能力，直到能够从持续的自由现金流中偿还。</blockquote> The company also announced the acquisition ofSafetypay, a Florida-based payments platform that enables eCommerce transactions and operating primarily in Latin America. However, while the acquisition cost of $441 million was provided, the underlying financials for Safetypay was not.<blockquote>该公司还宣布收购SafetyPay，这是一家总部位于佛罗里达州的支付平台，支持电子商务交易，主要在拉丁美洲运营。然而，虽然提供了4.41亿美元的收购成本，但Safetypay的基本财务状况却没有提供。</blockquote> What Comes Next?<blockquote>接下来会发生什么？</blockquote> I like many other investors in SPAC companies expected Q2 2021 results period to be when the correlation begins to melt and a period that would allow stronger companies to start detaching themselves from the SPAC herd. However, this correlation only seems to have heightened. In this sense, Paysafe's Q2 2021 results never really mattered. Whether good or bad the common shares would have fallen. This systematic selloff of SPACs is a holdout from the SPACs are dead trade mantra.<blockquote>我和SPAC公司的许多其他投资者一样，预计2021年第二季度业绩期将是相关性开始消失的时期，也是让实力更强的公司开始脱离SPAC群体的时期。然而，这种相关性似乎只会加剧。从这个意义上说，Paysafe 2021年第二季度的业绩从未真正重要。不管是好是坏，普通股都会下跌。SPAC的系统性抛售是对SPAC已死交易口号的抵制。</blockquote> So what comes next?<blockquote>那么接下来会发生什么？</blockquote> There will eventually be a detachment from the retail-led ebbs and flows of the wider SPAC market and Paysafe might stand to benefit whenever this happens. The Q2 results were decent with growth picking up and the company improving its profitability. While I'd stop short of calling the financials solid as high debt will continue to weigh down on profitability, Paysafe is not standing still and stands to benefit from the expanding North America iGaming market. For future returns, Paysafe bulls should in the interim look to the wider SPAC market where sentiment currently sits at rock bottom. In the longer term, look to higher profitability to support a concrete plan by management to materially reduce debt. This will help the company reduce its current $200 million annual interest cost.<blockquote>最终将脱离零售业主导的更广泛的SPAC市场的潮起潮落，无论何时发生这种情况，Paysafe都可能受益。第二季度业绩不错，增长加快，公司盈利能力提高。虽然我不会称财务状况稳健，因为高债务将继续拖累盈利能力，但Paysafe并没有停滞不前，并将从不断扩大的北美iGaming市场中受益。对于未来的回报，Paysafe多头应该暂时关注更广泛的SPAC市场，该市场的情绪目前处于谷底。从长远来看，寻求更高的盈利能力来支持管理层大幅减少债务的具体计划。这将有助于该公司降低目前每年2亿美元的利息成本。</blockquote> DeSPACs are not standing still. And I continue to believe that current negative sentiment has run its course and the sell SPAC trade too crowded. Hence, just as time saw companies once held in high regard come crashing down, it will see them rise back up.<blockquote>DeSPACs并没有停滞不前。我仍然认为，当前的负面情绪已经结束，卖出SPAC交易过于拥挤。因此，正如时间看到曾经备受推崇的公司崩溃一样，它也会看到它们重新崛起。</blockquote>\n<div class=\"bt-text\">\n\n\n 来源：<a href=\"https://seekingalpha.com/article/4451055-paysafe-where-is-the-floor\">seekingalpha</a>\n为提升您的阅读体验，我们对本页面进行了排版优化\n\n\n</div>\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PSFE":"Paysafe Ltd"},"source_url":"https://seekingalpha.com/article/4451055-paysafe-where-is-the-floor","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1190758315","content_text":"Summary\n\nPaysafe's revenue growth for its fiscal 2021 second quarter has sped up.\nHigh leverage has hampered profitability and will remain a headwind until the company generates enough free cash flow on a quarterly basis to pay it back.\nThe share price continues to fall on the back of negative SPAC sentiment.\n\nipopba/iStock via Getty Images\nPaysafe's (PSFE) fall was immediately followed by another fall. The company has now become one of the poster boys for the decline of special purpose acquisition companies and DeSPACs. Of how a go-public conduit that was once held in high regard eventually came crashing down when exposed to the advent of time. For many Paysafe bulls, the worst possible scenario has come to pass. But they are not alone, nearly all investors in DeSPACs are feeling the smoke from the burning of their respective investments. This is despite these targeting entirely different sectors, customers, and geographies.\nTo illustrate this conundrum, a riddle. What does a dog toy company, a direct-to-consumer telehealth company, a digital lender, and Paysafe have in common apart from having been SPACs?\nData by YCharts\nPaysafe's bulls have been left reeling, we all have. As DeSPACs regardless of their underlying financials and industry continue to show a strong correlation with each other. I continue to believe this to be a short-term aberration. In the longer term, it should melt and allow companies with solid financials to rise to higher values.\nThe problem left for Paysafe bulls is does the company possess these solid financials?\nLeverage, Faster Growth, And Cash Burn\nPaysafe recently published its fiscal 2021 second-quarter results. This saw the company realize revenue of$384.34 million, a year-over-year increase of 12.7% and a beat of $5.9 million on analyst estimates. It's encouraging that the rate of revenue growth sped up from the 5% recorded in the previous quarter as the company was able to record a 41% YoY growth in payment volume to $32 billion.\nUnfortunately, this did not translate to material net profit for the period which came in at just $6.6 million, albeit an improvement on the net loss of $15.9 million in the year-ago quarter. For its 2021 fiscal year, Paysafe expects revenue to be in the range of $1.53 billion to $1.55 billion versus a consensus of $1.55 billion. Adjusted EBITDA is expected to be in the range of $480 million to $495 million. This places the company's forward price to revenue multiple at 3.85x. Of course, this rises to 5x when the net debt of $1.87 billion Paysafe held on its balance as at the end of the quarter is considered.\nIndeed, the company held long-term debt of $2.1 billion only partially offset by cash and equivalents of $248 million. As free cash flow during the quarter was negative at $8.5 million, the company is not currently in the position of being able to pay back its debt through its operations. This cost $61 million in interest payment during the quarter, up 15% from the year-ago quarter and around 9x times net income during the period. This debt was inherited from the company's previous private equity owners and will restrict the company's operational capacity until it can be paid off from consistent free cash flow.\nThe company also announced the acquisition ofSafetypay, a Florida-based payments platform that enables eCommerce transactions and operating primarily in Latin America. However, while the acquisition cost of $441 million was provided, the underlying financials for Safetypay was not.\nWhat Comes Next?\nI like many other investors in SPAC companies expected Q2 2021 results period to be when the correlation begins to melt and a period that would allow stronger companies to start detaching themselves from the SPAC herd. However, this correlation only seems to have heightened. In this sense, Paysafe's Q2 2021 results never really mattered. Whether good or bad the common shares would have fallen. This systematic selloff of SPACs is a holdout from the SPACs are dead trade mantra.\nSo what comes next?\nThere will eventually be a detachment from the retail-led ebbs and flows of the wider SPAC market and Paysafe might stand to benefit whenever this happens. The Q2 results were decent with growth picking up and the company improving its profitability. While I'd stop short of calling the financials solid as high debt will continue to weigh down on profitability, Paysafe is not standing still and stands to benefit from the expanding North America iGaming market. For future returns, Paysafe bulls should in the interim look to the wider SPAC market where sentiment currently sits at rock bottom. In the longer term, look to higher profitability to support a concrete plan by management to materially reduce debt. This will help the company reduce its current $200 million annual interest cost.\nDeSPACs are not standing still. And I continue to believe that current negative sentiment has run its course and the sell SPAC trade too crowded. Hence, just as time saw companies once held in high regard come crashing down, it will see them rise back up.","news_type":1,"symbols_score_info":{"PSFE":0.9}},"isVote":1,"tweetType":1,"viewCount":1572,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":3,"xxTargetLangEnum":"ORIG"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/835665696"}