EVO Payments Inc. (EVOP), a leading payment technology and services provider, reported a net loss for the fourth quarter of 2018 amid a sharp increase in operating expenses. Meanwhile, revenues rose and exceeded analysts’ forecast.
The Atlanta, Georgia-based company reported a net loss of $4.04 million or $0.16 per share for the December quarter. The bottom-line was negatively impacted by a 28% increase in operating expenses to $156.42 million. On an adjusted basis, it was earnings of $0.18 per share, which matched analysts’ forecast. Adjusted EBITDA, excluding one-off items, rose 21% to $44.3 million from $36.6 million in the prior-year period.
During the three-month period, revenues advanced 8.8% annually to $150.82 million and came in slightly above estimates. In North America, revenues grew 7%, while European revenues rose 12%.
During the three-month period, revenues advanced 8.8% annually to $150.82 million and came in slightly above estimates
“We remain focused on expanding our tech-enabled product capabilities in both North America and Europe, while continuing to look for new opportunities to expand our distribution footprint in our current and new markets,” said CEO James Kelly.
Of late, the company has been busy broadening its distribution network through partnerships and acquisitions, both in North America and Europe.
The management expects revenues to increase year-over-year to the range of $488 million to $505 million in fiscal 2019, on a reported basis. Full-year net loss is expected to narrow sharply to $12-$9 million. Meanwhile, adjusted EBITDA is seen rising 6-10% to the range of $156 million to $163 million.
Earlier this month, EVO acquired Ireland-based payment service provider Way2Pay for an undisclosed amount, as part of expanding its presence in Europe. The company expects to leverage the growing popularity of Way2Pay’s payment gateway, especially in schools and clubs in the region.
The company’s stock gained about 2% in premarket trading Wednesday, after closing the previous session slightly lower. The shares gained about 6% since the beginning of the year.