Paysign Inc (NASDAQ:PAYS), a leading provider of prepaid card programs, comprehensive patient affordability offerings, digital banking services and integrated payment processing, stock surges 20.71% (As on March 27, 11:22:20 AM UTC-4, Source: Google Finance) after the company posted higher than expected results for the fourth quarter of FY 23. Plasma revenue increased $1.8 million, or 19%, primarily due to an increase in plasma locations, plasma donations and dollars loaded with average monthly revenue per center up 14.0% to $8,297 versus $7,293 in the year-ago period. Pharma revenue increased $972 thousand, or 132%, primarily due to the growth and launch of new pharma patient affordability programs. Pharma patient affordability revenue increased $1.2 million, or 247%. Other revenue increased by $291 thousand, or 165%, primarily due to the growth in the payroll business and the growth and launch of new prepaid disbursement programs.

PAYS in the fourth quarter of FY 23 has reported the adjusted earnings per share of $0.100, beating the analysts’ estimates for the adjusted earnings per share of $0.017. The company had reported the adjusted revenue growth of 29 percent to $13.69 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $12.36 million. Gross profit increased by $1.6 million, or 30%, primarily due to increased plasma and pharma patient affordability revenue, offset by a decline in our legacy pharma prepaid revenue which concluded November 2022. The gross profit margin increased to 52.2% versus 51.9% for the same period in the prior year. Net income of $5.6 million, improved by $4.9 million compared to net income of $713 thousand, during the same period last year. EBITDA increased by $717 thousand, or 66%, to $1.8 million, and was up $175 thousand sequentially from the third quarter of this year.

Additionally, unrestricted cash increased $7.3 million to $17.0 million from December 31, 2022, due primarily to the net income of $6.5 million, noncash items of $3.0 million and increases in working capital accounts of $6.1 million. This was primarily offset by fixed assets and capitalized software development of $7.0 million and the repurchase of 394,558 shares of our common stock for $1.1 million. Restricted cash of $92.0 million are funds used for customer card funding with a corresponding offset under current liabilities. This balance increased $12.2 million from December 31, 2022 primarily due to increases in funds on card balances of $4.4 million and customer deposits for the plasma and pharma customers of $15.8 million, offset by the termination of the pharma prepaid business where the company returned program funds of over $8.0 million.