PAYA - Paya Holdings stock sinks 20% on soft guidance for 2022 revenue EBITDA

Paya Holdings (NASDAQ:PAYA) stock is dropping 20% in midday trading on Tuesday after the payments company issued disappointing guidance as it posted better-than-expected Q4 results. Most of its FY2022 revenue guidance range of $275M-$283M fell below the consensus estimate of $282.9M. For adjusted EBITDA, it expected $72M-$74M, less than the Visible Alpha consensus of $78.9M. "We suspect that the weaker than expected adjusted EBITDA guide may have (been) driven by increased SG&A expense from various items, including the recently closed acquisition of VelocIT and the launch of PAYAGov," BTIG analyst Mark Palmer wrote in a note to clients. He rates Paya (PAYA) a Buy. He also thinks that the top-line guidance may be due to a higher proportion of Payment Services revenue than estimates accounted for. He explained that Payment Services margins are lower than those in Paya's (PAYA) Integrated Solutions business. That also explains the company's lower than expected gross margin

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Paya Holdings stock sinks 20% on soft guidance for 2022 revenue, EBITDA