Why Paysafe Stock Crashed Today

What happened
Shares of Paysafe (NYSE:PSFE) plunged on Thursday after the payments platform issued a forecast for sales and profit that fell well short of investors' expectations.

As of 2:15 p.m. EST, Paysafe's stock price was down more than 40%.

So what
Paysafe's revenue declined by 1% year over year to $353.6 million. That was significantly below Wall Street's projections, which had called for revenue of over $370 million.

Paysafe chalked up the sales decline to weaker-than-expected results in its digital wallet segment, as well as risk management initiatives that led to the loss of some direct marketing customers in its integrated processing division.

Worse still, Paysafe slashed its full-year financial outlook. Management now expects revenue of roughly $1.48 billion in 2021, down from a prior projection of about $1.54 billion. The company also cut its guidance for gross profit and adjusted EBITDA to approximately $875 million and $430 million, respectively, down from $950 million and $488 million.

Article excerpted from The Motley Fool.