PaySign, Inc. (NASDAQ:PAYS) Q3 2022 Earnings Call Transcript

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Jeff Baker: Gary that’s for the year. And initially we were 56% to 57%. What you’re seeing there’s just nothing more than mix. So when we’re outperforming on the plasma business, like we have been in the third quarter and where it looks like we’re going to see coming into fourth quarter relative to the pharma prepaid programs that are fallen off and the growth in the copay. It’s literally just mix. So it looks like now we’re going to come around at 56% for the full year.

Gary Prestopino: And going into 2023, can you hold that at around that level or can we actually expect it to go up as the revenues ramping in?

Jeff Baker: Actually, what’s going to happen is, it’ll probably go down again, it’s mix driven. So that’s plasma, doing what it’s been doing. And then pharma copay, which has still good margins, but not at the same level as the pharma prepaid business. And in 2023, we won’t have any farmer prepaid business any longer. Like I said, that’s all ending this month. So it is mixed. I expect my plasma margins to remain pretty steady, though.

Gary Prestopino: Okay. And then the entity that’s closing and consolidating 13 centers, what’s going on there, that you could share with us?

Mark Newcomer: Sure. It’s really a combination of things. But there’s been a whole lot of acquisitions in the space. And so basically, they found that they had a bunch of centers that were — they have multiple centers in a given city and just found that it would be better for them not to. So it was a decision made by the organization. I don’t see additional center closures from them at this time. It was just something they went through their process and .

Gary Prestopino: So those centers that they’re closing, are you still servicing any centers or the centers that they’re keeping in those cities?

Mark Newcomer: Yes.

Gary Prestopino: Okay. So the business has got to go somewhere and that’s why they’re consolidating. It’s more of a facilities thing. It’s not an issue of the actual business is not good for them.

Mark Newcomer: No, no, no, nothing to do with that. It’s just consolidation.

Gary Prestopino: Okay. All right. Thank you very much.

Mark Newcomer: You’re very welcome.

Operator: Thank you. We reach the end of our question-and-answer session. I’d like to turn the floor back over to Mark for any further or closing comments.

Mark Newcomer: Thank you, Kevin, and thank you, everyone for taking the time to listen in on the call. We’re very pleased with the results for the third quarter. And we’re really very excited about the potential growth and our pipeline as we finish out this year and enter 2023. We appreciate all the support. Thanks everyone and have a good one.

Operator: Thank you. That does conclude today’s teleconference and webcast. You may disconnect your lines at this time and have a wonderful day. We thank you for your participation today.

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