Shares of Pagaya Technologies Ltd.
were surging more than 20% in premarket action Wednesday after the financial-technology company, which uses artificial intelligence in credit, issued an upbeat profit forecast for the full year. The company logged a fourth-quarter net loss of $34.0 million, or 5 cents a share, wider than the loss of $16.5 million, or 8 cents a share, that the company recorded in the previous year. Analysts tracked by FactSet were anticipating a 7-cent per-share loss. Revenue rose to $178 million from $144 million, while analysts had been anticipating $163 million. “As we continue the momentum into 2023, we will remain focused on driving further expansion and monetization of our network and achieving sustainable profitability on an adjusted EBITDA basis,” Chief Executive Gal Krubiner said in a release, referring to adjusted earnings before interest, taxes, depreciation, and amortization. For the first quarter, Pagaya anticipates $175 million to $180 million in revenue, as well as adjusted EBITDA ranging from a $5 million loss to breakeven. The FactSet consensus was for $182 million in revenue and a $4.3 million loss on the basis of adjusted EBITDA. For the full year, Pagaya expects $775 million to $825 million in revenue and $10 million to $25 million in adjusted EBITDA, whereas analysts were modeling $801 million in revenue and about $12 million in adjusted Ebitda.