By Adam L. Cataldo
Ebix’s shares fell 21% to $19.60 in after-hours trading on Friday after the company reclassified revenue from co-branded prepaid cards for fiscal 2023.
The stock ended market trading down 2.6% at $24.75, and is up 24% this year.
The company disclosed the clarifications in what it said was an update to a statement originally issued on July 6. Ebix is based in Johns Creek, Ga., where it is involved in the development and deployment of insurance and reinsurance exchanges.
Ebix said revenue from co-branded prepaid cards, which was 65% of the EbixCash’s consolidated revenue from operations for fiscal 2023 on a gross basis, was cut to less than 3% on a net basis for that year.
“Further, on both, a gross basis and net basis, considering the fact that Ebix Payment Services registered a loss, there was no contribution to the profitability of the EbixCash Group,” the company said.
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