Global
payments provider Paysafe has released its Q1 2024 earnings report, revealing
strong financial performance and continued growth across key business segments.
The company reported an 8% year-over-year (YoY) increase in revenue, reaching
$417.7 million. On a constant currency basis, revenue grew by an impressive 7%.
Paysafe Delivers Strong Q1
2024 Results
Paysafe’s
Adjusted EBITDA for the quarter stood at $111.9 million, representing a 4%
increase from the previous year. When adjusted for currency fluctuations, the
growth in Adjusted EBITDA was 3%. The company also reported a net income of
$3.1 million, a significant improvement from the net loss of $3.8 million in Q1
2023. Adjusted net income reached $35.3 million, growing compared to last year’s period.
CEO Bruce
Lowthers attributed the strong results to the success of Paysafe’s strategic
initiatives and investments. For example, Paysafe expanded its sales team,
advanced its white-label wallet strategy through a partnership with Xsolla, and
launched its Pay by Bank solution for US iGaming.
“We remain
confident in our financial outlook for this year, which reflects stronger
underlying revenue performance, anchored by improved operational execution,” added
Lowthers, who has been leading the company for over two years.
$PSFE?Paysafe reported Q1 revenues of $418 million: an +8% Y/Y growth and 2% above consensus estimates.?Operating margin contracted -1.24 p.p. Y/Y to 7.9%, falling short of the 9.4% expectation.?EPS (GAAP) was $0.05: a +180% Y/Y increase, and 30% above consensus estimates. pic.twitter.com/Nx7mSEuIIv
— Esthaar Labs | Finance & Tech Insights (@EsthaarLabs) May 13, 2024
Revenue
from the Merchant Solutions segment rose by 11%, driven by substantial growth
in e-commerce and small to medium-sized businesses (SMBs) due to enhanced sales
strategies and portfolio optimization efforts. In constant currency, the Digital Wallets segment saw a revenue increase of 5%, or 4%, primarily fueled by the
gambling sector and continued efforts to boost product and consumer engagement.
Reaffirming Full-Year
Outlook
Based on
the strong Q1 performance, Paysafe reaffirmed its financial outlook for 2024. The company expects revenue from $1,688 million to
$1,712 million and Adjusted EBITDA between $473 million and $488 million,
reflecting stronger underlying revenue performance and improved operational
execution.
A few
months ago, Paysafe announced an extension of its collaboration with Visa. The
partnership aims to integrate Visa network tokens, providing an alternative to traditional credit and debit card account numbers.
The company
made headlines in 2023 after ending its partnership with the Binance exchange
in France, which halted support for euro deposits and withdrawals for SEPA
transfers.
This article was written by Damian Chmiel at www.financemagnates.com.
