Shares of Paysafe (PSFE -12.50%), a payments platform company, were falling this morning after the company missed Wall Street’s consensus revenue estimate for the first quarter.
The financial technology stock was down by 10.7% as of 10:48 a.m. ET on Wednesday.
Several things disappointed Paysafe investors this morning, including the fact that the company’s first-quarter sales of $367.7 million dropped 3% from the year-ago quarter and missed analysts’ average estimate of $371.6 million.
Additionally, Paysafe reported a net loss of $1.2 billion in the first quarter, which was worse than the net loss of $60.6 million in the year-ago quarter. That widening loss came from a noncash impairment charge of $1.2 billion.
The company said that the impairment of goodwill was due to “a sustained decline in Paysafe’s stock price and market capitalization, as well as current market and macroeconomic conditions …” according to a press release.
Making matters worse for Paysafe investors was the fact that the company’s EBITDA decreased by 8% to $104 million in the quarter.
Declining revenue and decreasing EBITDA are not what investors want to see right now — or ever.
Investors have been especially concerned about high-growth technology companies that aren’t earning a profit right now. Rising inflation and Federal Reserve interest rate hikes are causing investors to worry about a potential economic slowdown.
With Paysafe’s disappointing quarter and investors already jittery that the market could experience more declines, it’s not surprising that some investors were eager to exit their position in the fintech stock today.