Artificial intelligence infrastructure company Pagaya Technologies Ltd. (NASDAQ: PGY) surged in pre-market trading at the time of writing on Friday after the company broke even on an adjusted basis in the second quarter, even as analysts were expecting the company to report a loss of $0.02 per share.
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In Q2, the company generated revenues of $195.6 million, up 8% year-over-year but below Street estimates of $204.52 million.
Gal Krubiner, co-founder and CEO of Pagaya Technologies, stated, “Network volume reached a record-high as we continued to achieve consistent results for our lending partners and investors. We drove sustainable gains in profitability through increased monetization of our network and cost discipline. With continued momentum in our business, we are raising our network volume and adjusted EBITDA outlook for the year.”
In Q3, Pagaya expects network volume to be between $1.9 billion and $2 billion, while revenues are likely to be in the range of $190 million to $200 million. Adjusted EBITDA is forecasted to be between $10 million and $20 million in the third quarter.
In FY23, the company now expects network volume in the range of $7.6 billion to $8.1 billion. Total revenues are anticipated to be between $775 million and $825 million, while adjusted EBITDA is projected to be in the range of $40 million to $50 million.
Analysts are cautiously optimistic about PGY stock, with a Moderate Buy consensus rating based on three Buys and two Holds.
