Pagaya Technologies delivered solid 2Q results that showcased an improving financial position for the artificial intelligence (AI) infrastructure firm.
The New York-based company broke even on an adjusted basis even as analysts were expecting the company to report a loss of $0.02 per share.
Despite announcing a second-quarter loss of $31.3 million, equivalent to $0.04 cents per share, Pagaya showcased an improved financial position compared to the previous year's Q2 loss of $175.3 million, or 71 cents per share.
Adjusted for various factors including stock-based compensation expenses, the firm reported earnings of $886,000, breaking even per share, compared to a loss of $18.6 million, or $0.07 cents per share, a year ago.
Pagaya's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at $17.5 million, a significant beat against analysts' expectations of $5.6 million, according to FactSet.
Total revenue increased by 7.8%, reaching $195.6 million from $181.5 million in the same quarter of the previous year, with fee-generated revenue surging by 13.7% to $185.6 million from $163.3 million.
Pagaya said it expects 3Q adjusted EBITDA ranging from $10 million to $20 million on total revenue of $190 million to $200 million. For the full year, Pagaya foresees adjusted EBITDA between $40 million and $50 million, combined with revenue estimates of $775 million to $825 million.
Shares of Pagaya surged nearly 37% after the results dropped Thursday before settling around 15% higher on Friday morning.
Contact Angela at angela@proactiveinvestors.com
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