Reported Earnings • Feb 23
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: US$0.065 (up from US$0.006 loss in FY 2021). Revenue: US$282.7m (up 13% from FY 2021). Net income: US$8.26m (up US$9.07m from FY 2021). Profit margin: 2.9% (up from net loss in FY 2021). The move to profitability was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 11%. Revenue is forecast to grow 9.5% p.a. on average during the next 3 years, compared to a 10% growth forecast for the IT industry in the US. Over the last 3 years on average, earnings per share has increased by 129% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Price Target Changed • Jan 12
Price target increased to US$9.82 Up from US$9.10, the current price target is an average from 7 analysts. New target price is approximately in line with last closing price of US$9.69. The company is forecast to post earnings per share of US$0.063 next year compared to a net loss per share of US$0.0064 last year. Announcement • Jan 11
Nuvei Corporation (TSX:NVEI) entered into a definitive agreement to acquire Paya Holdings Inc. (NasdaqCM:PAYA) from GTCR-Ultra Holdings, LLC and others for $1.3 billion. Nuvei Corporation (TSX:NVEI) entered into a definitive agreement to acquire Paya Holdings Inc. (NasdaqCM:PAYA) from GTCR-Ultra Holdings, LLC and others for $1.3 billion on January 8, 2023. Under the terms of the agreement, Nuvei will commence a tender offer to purchase all of the issued and outstanding shares of common stock of Paya for $9.75 per share in cash. Nuvei expects to finance the acquisition with a combination of cash on hand, an existing credit facility and a new committed $600 million first lien secured credit facility. Bank of Montreal and Royal Bank of Canada have provided committed financing to Nuvei. Following the consummation of the offer, subject to the terms and conditions of the merger agreement and in accordance with Section 251(h) of the General Corporation Law of the State of Delaware (the “ DGCL ”), merger sub will be merged with and into the company, with the company surviving the merger as a wholly owned subsidiary of parent in accordance with the DGCL. Following the successful completion of the tender offer, Nuvei will acquire all remaining shares not tendered in the tender offer through a second-step merger at the same price. Paya will pay a termination fee of $37.862852 million to Nuvei, in case Paya terminates the transaction.
The closing of the tender offer will be subject to certain conditions, including the tender of shares representing at least a majority of the total number of Paya’s outstanding shares, the expiration or termination of the antitrust waiting period, and other customary conditions. The transaction has been unanimously approved by both Nuvei's and Paya's Board of Directors, and the Board of Directors of Paya intends to recommend the transaction to Paya’s stockholders. On January 8, 2023, in connection with the execution and delivery of the Merger Agreement, GTCR owning approximately 34% of the outstanding shares, entered into a tender and support agreement to tender all of the shares in favor of the transaction. The transaction is expected to close by the end of the first quarter of 2023. The transaction is expected to be accretive to adjusted EPS in 2023. Evan Rosen (corporate), David Hahn and Welton E. Blount (finance), Veronica M. Wissel (executive compensation team), William A. Curran (tax), Matthew J. Bacal (IP), Daniel P. Stipano (financial institutions team), Jesse Solomon (antitrust and competition), and Marcel Fausten (capital markets) of Davis Polk & Wardwell LLP and Stikeman Elliott LLP acted as legal advisor to Nuvei. Sanford E. Perl, Mark A. Fennell, Sarkis Jebejian and Rachael G. Coffey of Kirkland & Ellis LLP acted as legal advisor to Paya. J.P. Morgan Securities LLC and Raymond James & Associates, Inc. acted as financial advisors and fairness opinion provider to Paya. Barclays Capital Inc., BMO Capital Markets, RBC Capital Markets and Evercore Group LLC acted as financial advisors to Nuvei. Simpson Thacher & Bartlett LLP acted as legal advisor to GTCR. Buying Opportunity • Dec 19
Now 22% undervalued Over the last 90 days, the stock is up 33%. The fair value is estimated to be US$10.03, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 23% in 2 years. Earnings is forecast to grow by 198% in the next 2 years. Recent Insider Transactions • Nov 16
Chief Strategy Officer recently sold US$251k worth of stock On the 9th of November, Benjamin Weiner sold around 29k shares on-market at roughly US$8.62 per share. This transaction amounted to 53% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Board Change • Nov 16
High number of new and inexperienced directors There are 9 new directors who have joined the board in the last 3 years. The company's board is composed of: 9 new directors. 1 experienced director. No highly experienced directors. CEO & Director Jeff Hack is the most experienced director on the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Major Estimate Revision • Nov 11
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from US$0.08 to US$0.06 per share. Revenue forecast steady at US$282.5m. Net income forecast to grow 93% next year vs 17% growth forecast for IT industry in the US. Consensus price target of US$9.10 unchanged from last update. Share price rose 17% to US$8.82 over the past week. Price Target Changed • Nov 08
Price target increased to US$9.10 Up from US$8.45, the current price target is an average from 10 analysts. New target price is approximately in line with last closing price of US$8.71. Stock is down 2.8% over the past year. The company is forecast to post earnings per share of US$0.063 next year compared to a net loss per share of US$0.0064 last year. Reported Earnings • Nov 05
Third quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2022 results: EPS: US$0.011 (up from US$0.023 loss in 3Q 2021). Revenue: US$71.4m (up 13% from 3Q 2021). Net income: US$1.35m (up US$4.31m from 3Q 2021). Profit margin: 1.9% (up from net loss in 3Q 2021). Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) missed analyst estimates by 50%. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 11% growth forecast for the IT industry in the US. Over the last 3 years on average, earnings per share has increased by 135% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Announcement • Nov 05
Paya Holdings Inc. Provides Earnings Guidance for the Full Year 2022 Paya Holdings Inc. provided earnings guidance for the full year 2022. For the year 2022, the company expects total revenue of $280 million to $283 million. Announcement • Nov 01
Paya Helps Utilities Improve Citizen Engagement with New Utilityconnect Portal Paya announced its new UtilityConnect(TM) billing and payments solution, which introduces a new user interface and features that help governments, municipalities, and private utilities improve citizen engagement and payment experiences. UtilityConnect assists administrators with billing and collections management while providing citizens an intuitive portal to view and pay bills. Beyond helping utilities deliver a flexible and frictionless payment experience, the redesigned UtilityConnectplatform offers a host of new features to improve the quality and frequency of citizen engagement opportunities, including: Citizen n notifications: Utilities can share real-time payment or serviceelated notifications (e.g., lalate payment notices or leakdetection alerts) to residents in the portal, creating a new way to inform and engage. Multilingual capabilities: Users can set the desired language with one click. All languages are available with custom integrations. Group multiple accounts: Multi-property owners can access all account billings in one portal. Streamlined autopay: The new UI removes friction from the autopay enrollment process, which improves the citizen experience and drives higher adoption rates. New administrative portal features make it easier to engage with citizens. Utilities can send messages toll or a selectction of citizens by email, SMS or phone, and schedule notifications in advance. Administrators can now build simple custom reports with a la carte data fields and schedule a recurring distribution to the appropriate executives. The new platform update has also added even more back-office integrations, ensuring utility administrators can use UtilityConnect with almost any software system. Announcement • Sep 30
Michele Shepard Departed Her Role as Chief Commercial Officer of Paya Holdings Inc As part of an initiative to refine its commercial operating model, on September 25, 2022, Paya Holdings Inc. eliminated the role of Chief Commercial Officer. In connection with such elimination, Michele Shepard departed her role as Chief Commercial Officer of the Company, effective September 25, 2022, and will remain employed by the Company in a non-executive role to facilitate a transition of her duties through a date to be determined. Major Estimate Revision • Aug 12
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from US$0.10 to US$0.08 per share. Revenue forecast steady at US$282.1m. Net income forecast to grow 262% next year vs 14% growth forecast for IT industry in the US. Consensus price target up from US$7.80 to US$8.55. Share price rose 5.9% to US$7.23 over the past week. Price Target Changed • Aug 06
Price target increased to US$8.15 Up from US$7.55, the current price target is an average from 10 analysts. New target price is 19% above last closing price of US$6.83. Stock is down 35% over the past year. The company is forecast to post earnings per share of US$0.085 next year compared to a net loss per share of US$0.0064 last year. Announcement • Aug 06
Paya Holdings Inc. Provides Revenue Guidance for the Year of 2022 Paya Holdings Inc. provided revenue guidance for the year of 2022. For the year, the company expected Total Revenue to be $279 million - $283 million. Reported Earnings • Aug 05
Second quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2022 results: EPS: US$0.013 (up from US$0.025 loss in 2Q 2021). Revenue: US$72.5m (up 13% from 2Q 2021). Net income: US$1.65m (up US$4.80m from 2Q 2021). Profit margin: 2.3% (up from net loss in 2Q 2021). The move to profitability was driven by higher revenue. Revenue exceeded analyst estimates by 3.8%. Earnings per share (EPS) missed analyst estimates by 60%. Over the next year, revenue is forecast to grow 11%, compared to a 14% growth forecast for the industry in the US. Announcement • Jun 21
Paya Reportedly Mulls Going Up for Sale Paya Holdings Inc. (NasdaqCM:PAYA) is considering a sale and has tapped an adviser to sound out interest in its business, Bloomberg reported, citing insiders. Deliberations reportedly started amid takeover interest. The Atlanta, Georgia-based firm has grabbed the eye of large, publicly-traded peers, according to the media’s sources. Announcement • Jun 01
Paya Announces Election of Debora Boyda to Its Board of Directors Paya Holdings Inc. announced the election of Debora Boyda to its board of directors. Ms. Boyda brings to Paya 35 years of business leadership, with extensive transformation experience and operational expertise. Ms. Boyda was CEO of Isobar/Dentsu International, a $200 million digital services firm, and served on Dentsu’s North American Executive Leadership team. Previously, Ms Boyda was President at Razorfish/Publicis, a $265 million digital services firm. In those roles, Ms. Boyda was responsible for the revenue, profit, and strategic vision for the organizations. Ms. Boyda drove growth in operating profit and led organizational transformations, including the acquisition and integration of outside firms to drive scale. Earlier in her career, Ms. Boyda was General Manager of a $350 million business unit at Beam Global Spirits & Wine. Ms. Boyda holds a BA from Harvard University and an MSA from Northwestern University, and is currently a board director for Wells Enterprises, a large manufacturing company in the consumer goods industry, and Trustmark Benefits, a national employee benefits company with $2.6 billion in assets. Price Target Changed • Jun 01
Price target decreased to US$7.55 Down from US$9.09, the current price target is an average from 11 analysts. New target price is 28% above last closing price of US$5.89. Stock is down 42% over the past year. The company is forecast to post earnings per share of US$0.10 next year compared to a net loss per share of US$0.0064 last year. Board Change • Jun 01
High number of new and inexperienced directors There are 9 new directors who have joined the board in the last 3 years. The company's board is composed of: 9 new directors. 1 experienced director. No highly experienced directors. CEO & Director Jeff Hack is the most experienced director on the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Announcement • May 12
Paya Holdings Inc. Provides Revenue Guidance for the Full Year 2022 Paya Holdings Inc. provided revenue guidance for the full year 2022. For the period, the company expects Total Revenue of $275 millions to $283 millions. Announcement • May 02
Paya Holdings Inc., Annual General Meeting, May 31, 2022 Paya Holdings Inc., Annual General Meeting, May 31, 2022, at 09:00 US Eastern Standard Time. Agenda: To elect three nominees identified in the accompanying proxy statement to serve as Class II directors until the 2025 Annual Meeting and until their successors are duly elected and qualified; to consider the approval, by an advisory vote, of the compensation of the executive officers; to approve, by an advisory vote, the frequency of future advisory votes to approve the compensation of the Company’s named executive officers; to approve an amendment to the Company’s 2020 Omnibus Incentive Plan to (i) increase the maximum number of shares of common stock authorized for issuance thereunder by 10,000,000 shares, (ii) impose a minimum vesting requirement of at least one year for all awards granted pursuant to the plan, and prohibit dividends and dividend equivalents to be paid on awards that have not yet vested or been earned; and to ratify the appointment of Ernst & Young LLP as the Company’s independent registered public accounting firm for the year ending December 31, 2022. Reported Earnings • Mar 03
Full year 2021 earnings: EPS and revenues exceed analyst expectations Full year 2021 results: US$0.025 loss per share (down from US$0.008 loss in FY 2020). Revenue: US$249.4m (up 21% from FY 2020). Net loss: US$3.10m (loss widened 492% from FY 2020). Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) also surpassed analyst estimates by 100%. Over the next year, revenue is forecast to grow 13%, compared to a 19% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 52% per year but the company’s share price has fallen by 17% per year, which means it is significantly lagging earnings. Price Target Changed • Mar 02
Price target decreased to US$11.23 Down from US$12.41, the current price target is an average from 11 analysts. New target price is 116% above last closing price of US$5.19. Stock is down 58% over the past year. Announcement • Feb 24
Paya Holdings Inc. to Report Q4, 2021 Results on Mar 01, 2022 Paya Holdings Inc. announced that they will report Q4, 2021 results Pre-Market on Mar 01, 2022 Announcement • Feb 01
Paya Holdings Inc. Announces Launch of Payagov Paya Holdings Inc. announced the launch of PayaGov, the company’s solutions and domain experts serving government agencies, municipalities, and service providers. The launch is a key milestone in the strategic alignment of Paya’s market-leading government and municipality franchises, and reinforces Paya’s commitment to, and position in, this key vertical. With the convergence of Paya’s considerable government sector capabilities and over three decades of industry experience, PayaGov is a national leader in the government and municipal payments space. As of year-end 2021, PayaGov serves over 2,000 government agencies and municipalities in 24 states, processing over 8 million payments per year, and delivering over $1 billion in revenue to its government and municipal clients. PayaGov solutions enable clients to accept payments for water and gas utilities, property tax, courts fines, licenses, permits, and other municipal payment needs. Drawing on Paya’s long-standing expertise in this sector, and in partnership with thousands of government agencies, PayaGov solutions focus on driving citizen engagement and adoption, while streamlining workflow and maximizing efficiency for government and municipal workers. Announcement • Jan 20
Paya Holdings Inc. (NasdaqCM:PAYA) acquired JS Innovations LLC. Paya Holdings Inc. (NasdaqCM:PAYA) acquired JS Innovations LLC on January 19, 2022.
Paya Holdings Inc. (NasdaqCM:PAYA) completed the acquisition of JS Innovations LLC on January 19, 2022. Reported Earnings • Nov 08
Third quarter 2021 earnings released: US$0.023 loss per share The company reported a soft third quarter result with weaker earnings and weaker control over costs, although revenues improved. Third quarter 2021 results: Revenue: US$63.1m (up 22% from 3Q 2020). Net loss: US$3.00m (down 287% from profit in 3Q 2020). Price Target Changed • Nov 06
Price target decreased to US$12.50 Down from US$14.70, the current price target is an average from 11 analysts. New target price is 49% above last closing price of US$8.41. Stock is down 27% over the past year. The company is forecast to post a net loss per share of US$0.0075 next year compared to a net loss per share of US$0.0079 last year. Reported Earnings • Aug 08
Second quarter 2021 earnings released: US$0.025 loss per share (vs US$0.011 profit in 2Q 2020) The company reported a soft second quarter result with weaker earnings and weaker control over costs, although revenues improved. Second quarter 2021 results: Revenue: US$64.0m (up 25% from 2Q 2020). Net loss: US$3.15m (down US$3.78m from profit in 2Q 2020). Major Estimate Revision • Aug 07
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 EPS estimate fell from US$0.094 to US$0.06 per share. Revenue forecast steady at US$247.8m. Net income forecast to grow 904% next year vs 14% growth forecast for IT industry in the US. Consensus price target of US$15.22 unchanged from last update. Share price fell 8.4% to US$10.52 over the past week. Announcement • Jun 09
Paya Delivers Advance Payment Integration to Newest Acumatica Release Paya announced that its platform has achieved certification for Acumatica’s 2021 R1 update, available across all of Acumatica’s ERP editions and customer portal. Paya’s advanced solution enhances back-office efficiency, offers features such as e-invoicing, automated card account updater and recurring billing. Paya delivers seamless card, ACH, and check payment acceptance, reporting, and reconciliation functionality directly into management workflows. In combination with Paya’s comprehensive integrated payments platform, dedicated and onboarding support, service and partner go-to-market programs, Paya’s integrated suite provides its partners and their customers with end-to-end solutions to manage and grow their businesses. Announcement • May 08
Paya Holdings Inc. Provides Earnings Guidance for the Year 2021 Paya Holdings Inc. provided earnings guidance for the year 2021. For the year, the company expects total revenues to be in the range of $242 million to $248 million. Announcement • Apr 27
Paya Holdings Inc. (NasdaqCM:PAYA) acquired Paragon Solutions, Inc. Paya Holdings Inc. (NasdaqCM:PAYA) acquired Paragon Solutions, Inc. on April 26, 2021. Roy Bricker, Paragon’s Chief Executive Officer, will assist with joint integration efforts, specifically focusing on the combined product and solution innovation agenda. Brock Robertson, Paragon’s President, will join Paya to help lead ISV sales efforts, driving further growth across the combined businesses. Paragon team will join to Paya.
Paya Holdings Inc. (NasdaqCM:PAYA) completed the acquisition of Paragon Solutions, Inc. on April 26, 2021. Announcement • Mar 19
Paya Holdings Inc. has completed a Follow-on Equity Offering in the amount of $245 million. Paya Holdings Inc. has completed a Follow-on Equity Offering in the amount of $245 million.
Security Name: Common Stock
Security Type: Common Stock
Securities Offered: 20,000,000
Price\Range: $12.25 Analyst Estimate Surprise Post Earnings • Mar 12
Revenue beats expectations Revenue exceeded analyst estimates by 0.3%. Over the next year, revenue is forecast to grow 16%, compared to a 31% growth forecast for the IT industry in the US. Reported Earnings • Mar 11
Full year 2020 earnings released: US$0.008 loss per share (vs US$0.17 loss in FY 2019) The company reported a solid full year result with reduced losses, improved revenues and improved control over expenses. Full year 2020 results: Revenue: US$206.0m (up 1.3% from FY 2019). Net loss: US$524.0k (loss narrowed 94% from FY 2019). Announcement • Feb 24
Paya Holdings Inc. to Report Q4, 2020 Results on Mar 08, 2021 Paya Holdings Inc. announced that they will report Q4, 2020 results Pre-Market on Mar 08, 2021 Announcement • Feb 10
Leading Payments Provider Paya Expands Acumatica ERP Integration Through Latest Certification Paya announced that it has been recognized as an Acumatica-Certified Application (ACA), enabling rich omni-payment capabilities across all Acumatica’s Cloud ERP editions. Paya’s solution, available in Acumatica’s ERP editions and Customer Portal, delivers frictionless card, ACH and check payment functionality directly into management workflows. The solution improves back-office efficiency, data integrity and manageability, and drives revenue assurance through features such as e-invoicing, automated card account updater and recurring billing. Combined with Paya’s fully scaled technology platform, dedicated onboarding support, service, and partner go-to-market programs, Paya’s integrated suite provides its partners and their customers with end-to-end solutions to manage and grow their businesses. Paya’s native integrations were early in market, including the first integration with Acumatica Customer Portal, which simplifies receivables via real-time invoices and payments. Announcement • Nov 11
Dustin Renn Joins Paya as Head of Corporate Development/M&A Paya announced that Dustin Renn has joined as its Head of Corporate Development/M&A. In this role, Renn will be responsible for leading Paya's strategic acquisition efforts, which complement the company's organic growth strategy and further build on the success of its recent acquisitions. Renn brings 20 years of leadership experience from fintech and investment firms, including Global Payments, Cardlytics, Equifax, and Goldman,
Sachs, & Co. Prior to joining Paya, Renn served as Senior Vice President and Head of Corporate Development at Cardlytics. Previously, his roles included Principal at Greater Sum Ventures and Vice President of Corporate Development at both Equifax and Global Payments. Announcement • Oct 28
Paya Holdings Inc. to Report Q3, 2020 Results on Nov 09, 2020 Paya Holdings Inc. announced that they will report Q3, 2020 results on Nov 09, 2020