Shares of the Exela Technologies, Inc. (XELA) stock were rising in the premarket trading session today on January 13, 2022. XELA stock price saw a push of 2.37% to reach $0.61 a share at the time of this writing. The stock was gloomy in the previous trading session and went down by 7.12% at closing. Let’s understand the reason behind this rise.
What’s Happening?
XELA stock happened to be green in the premarket after the company announced that it has expanded its existing relationships with Mastercard in the EMEA region. This expansion will result in the automation of Giro payments and processing in Norway via using the XBP platform of Exela.
The company will automate the content extraction of payment documents in the Brevgiro service in Norway via developing and deploying an innovative solution using optical/intelligent character reading. The payment transactions will be verified automatically through this solution. More than 11 million Giro payments in Norway will use this solution.
Previous News of XELA stock
A couple of days ago, on January 11, 2022, the company reported that it is expanding its relationships with leading health insurance organizations. The consumer will continue to deploy the PCH Global platform of Exela in order to accelerate its digital transformation and improve the provider and member experience. The expansion represents the $6.2 million of additional contract value revenue.
Financial View of XELA stock
- In the third quarter of 2021, the company generated $279.2 million in revenue as compared to $305.3 million in the same quarter of last year. This represents an 8.5% decline as compared to the previous year’s same quarter results.
- Operating income in the third quarter of 2021 for the XELA stock was $2.4 million. This compares to an operating income of $4.8 million in the same tenure of the previous year.
- XELA stock suffered a net loss of $13.2 million in the third quarter of 2021 as compared to a net loss of $28.3 million in the same quarter of last year.
- EBITDA for the company was $49.1 million while the adjusted EBITDA was $36.4 million in the third quarter of 2021.
- By the end of the third quarter of 2021, there were 166,196,745 outstanding shares along with additional shares of common XELA stock.
Wrap Up
The company is expanding its existing relationships which represents that the company is progressing with time. This is indeed a positive sign for the company as well shareholders of the XELA stock. However, the financial results reflect that the company’s revenue declined in the recent quarter. In a nutshell, investors need to do deep research before adding this stock to their portfolio.
