Q: What am I missing? Is this a headline reaction to a very small EPS miss? Please give me your analysis.
5i Research Answer:
We have comments posted on the earnings results, but largely it incurred a net loss of $8.3M for the quarter, due to its Paya-related integration and one-time acquisition cost of $20M. Its balance sheet contracted for the quarter as its cash balance shrunk and debt rose. We continue to like the company and its fundamentals, but we feel that investors will need to see improvement in its balance sheet and profits next quarter, and we feel this is attainable given the one-time nature of these expenses.