Today witnessed a 20% upward surge in Pagaya Technologies' stock price.
With an astonishing Q1 performance, Pagaya Technologies (PGY 8.15%) blew past analyst predictions on Thursday, leading to an impressive 20% surge in share price. This outperformance easily surpassed the 0.5% increase of the famous S&P 500 index.
The Israel-based company, famous for its cutting-edge AI credit evaluation platform, released its financial results for the quarter. These figures revealed a substantial revenue growth to $237.4 million, markedly higher than the $175 million recorded in the same quarter the previous year.
The financial improvement was even more striking on the bottom line. Pagaya shifted from a substantial loss of over $11 million in Q1 2023 to a remarkable $13.3 million in non-GAAP net income, translating to $0.20 per share.
These stellar results far surpassed analyst expectations, which had anticipated revenue of around $224 million and a Net Income Per Share of $0.06.
In its earnings statement, Pagaya attributed its success to its "meticulous execution" and cited its CEO Gal Krubiner, who expressed his delight with the improved numbers, adding, "These results underscore the robustness of our business and our determination to present more financial opportunities for American consumers."
Guidance aligned with analyst consensus estimates
During the earnings call, Pagaya's management also presented their estimates for revenue and adjusted EBITDA for both the current quarter and 2024's full year. For the second quarter, revenue is expected to range between $235 million and $245 million, with an adjusted EBITDA between $40 million and $45 million.
For the entirety of 2024, the projected revenue figures range between $925 million and $1.05 billion, with adjusted EBITDA between $150 million and $190 million.
Interestingly, these predicted revenue figures align with the current analyst consensus expectations, which average at around $240 million for the quarter and $950 million for the year.
Unfortunately, Pagaya did not provide any net-income forecasts for the future.
Pagaya's CEO, Gal Krubiner, expressed enthusiasm about the company's financial success, stating that it demonstrates their dedication to providing more financial opportunities for consumers. Investors looking to capitalize on this momentum might consider further investing in Pagaya Technologies, given its impressive financial performance and promising future outlook.
In light of the company's strong Q2 revenue and adjusted EBITDA projections that align with analyst estimates, investors might find Pagaya Technologies a financially attractive option for their investing portfolios.
