Paysafe Limited (“Paysafe” or the “Company”) (NYSE: PSFE), a leading payments platform, today announced its financial results for the fourth quarter and full year of 2024. The Company also an...
Autore: Business Wire
LONDON: Paysafe Limited (“Paysafe” or the “Company”) (NYSE: PSFE), a leading payments platform, today announced its financial results for the fourth quarter and full year of 2024.
The Company also announced that on February 28, Paysafe closed on its previously announced agreement to sell its direct marketing payment processing business line (“the disposed business”). For additional information, please see the Company's press release on February 11, along with the supplemental materials to this earnings release, available on the investor relations section of Paysafe's website.
Fourth Quarter 2024 Financial Highlights
(Metrics compared to fourth quarter of 2023, unless otherwise noted)
Full Year 2024 Financial Highlights
(Metrics compared to full year of 2023)
Bruce Lowthers, CEO of Paysafe, commented: "We’ve made incredible progress, delivering on our priorities and executing our three-year growth plan. By transforming our business and focusing on the biggest opportunities in the experience economy, we’re positioning Paysafe for long-term, sustainable growth. In 2025 our mission is clear: drive revenue through product innovation, improve sales efficiency, create new partnerships, and scale for better customer and employee experiences. With our foundational turnaround now behind us we are looking forward to our third year of organic revenue growth.”
(1) |
| Paysafe defines net leverage as net debt (total debt less cash and cash equivalents) divided by the sum of the last twelve months (LTM) Adjusted EBITDA. For the period ended December 31, 2024, total debt was $2,363.5 million and cash and cash equivalents was $216.7 million, and LTM Adjusted EBITDA was $452.1 million. For the period ended December 31, 2023, total debt was $2,501.8 million and cash and cash equivalents was $202.3 million, and LTM Adjusted EBITDA was $458.7 million. |
Full Year 2025 Financial Guidance
($ in millions) (unaudited) |
| Full Year 2025 |
Revenue |
| $1,710 - $1,734 |
Adjusted EBITDA |
| $463 - $478 |
Adjusted EPS |
| $2.21 - $2.51 |
Paysafe's 2025 outlook reflects reported revenue growth in the range of 0% to 2%, which includes the impact of the disposed business as well as a modest headwind from currency and interest revenue. Paysafe's outlook reflects organic revenue growth in the range of 6.5% to 8.0% and Adjusted EBITDA margin in the range of 27.1% to 27.6%, with Adjusted EBITDA growth in the mid-teens. Paysafe continues to expect to generate strong free cash flow and to reduce leverage, including the Company's goal to achieve 3.5x net leverage by the end of 2026.
Fourth Quarter and Full Year 2024 Summary of Consolidated Results
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| Three Months Ended |
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| Year Ended |
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| December 31, |
|
| December 31, |
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($ in thousands) (unaudited) |
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||
Revenue |
| $ | 420,070 |
|
| $ | 414,541 |
|
| $ | 1,704,835 |
|
| $ | 1,601,138 |
|
Gross Profit (excluding depreciation and amortization) |
| $ | 236,605 |
|
| $ | 240,959 |
|
| $ | 989,073 |
|
| $ | 937,926 |
|
Net income / (loss) |
| $ | 33,511 |
|
| $ | (12,129 | ) |
| $ | 22,160 |
|
| $ | (20,251 | ) |
|
|
|
|
|
|
|
|
|
|
|
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Adjusted EBITDA |
| $ | 103,345 |
|
| $ | 121,741 |
|
| $ | 452,054 |
|
| $ | 458,663 |
|
Adjusted net income |
| $ | 29,563 |
|
| $ | 40,862 |
|
| $ | 132,520 |
|
| $ | 143,888 |
|
Fourth Quarter 2024 Results
Paysafe's financial results were significantly impacted by accelerated merchant exits and associated credit losses during the fourth quarter, reflecting the Company's strategic decision to reduce its exposure to direct marketing, a business line within the SMB portfolio of the Merchant Solutions segment. This had an unfavorable impact to fourth quarter reported revenue growth for total Paysafe and the Merchant Solutions segment of approximately 3 percentage-points and 5 percentage-points, respectively.
Total revenue for the fourth quarter of 2024 was $420.1 million, an increase of 1%, compared to $414.5 million in the prior year period. Excluding a $1.8 million headwind from movement in foreign exchange rates, revenue increased 2%. Revenue from the Merchant Solutions segment increased 1%, reflecting double-digit growth in e-commerce as well as modest growth from SMBs, largely offset by a $10.7 million headwind from the disposed business. Revenue from the Digital Wallets segment increased 2% as reported, or 3% on a constant currency basis, supported by product initiatives, which more than offset lower revenue from interest on consumer deposits.
Net income for the fourth quarter of 2024 increased to $33.5 million, compared to a net loss of $12.1 million in the prior year period, reflecting an increase in other income due to a gain on foreign exchange, as well as an income tax benefit of $17.7 million, compared to an income tax expense of $13.4 million in the prior year period, which more than offset a decrease in operating income.
Adjusted net income for the fourth quarter of 2024 decreased to $29.6 million, compared to $40.9 million in the prior year period, largely attributable to the same factors that contributed to the decline in Adjusted EBITDA, partly offset by a decrease in interest expense.
Adjusted EBITDA for the fourth quarter of 2024 was $103.3 million, a decrease of 15%, compared to $121.7 million in the prior year period, largely reflecting the increase in credit losses as described above. Credit losses were $22.7 million in the fourth quarter of 2024, an increase of $15.2 million compared to the prior year period.
The combined headwinds from movements in foreign exchange rates and interest on consumer deposits to fourth quarter revenue and Adjusted EBITDA were $5.2 million and $4.4 million, respectively.
Operating cash flow for the fourth quarter of 2024 was $58.9 million, compared to $61.6 million in the prior year period. Unlevered free cash flow was $70.5 million, compared to $89.6 million in the prior year period.
Full Year 2024 Results
Total revenue for the full year 2024 was $1,704.8 million, an increase of 6% on a reported and constant currency basis, compared to $1,601.1 million in 2023. Revenue from the Merchant Solutions segment increased 9%, including a 1 percentage-point unfavorable impact from the disposed business. Revenue from the Digital Wallets segment increased 4%.
Net income for the full year 2024 increased to $22.2 million, compared to a net loss of $20.3 million in 2023, largely driven by an income tax benefit of $8.1 million, compared to an expense of $40.8 million for 2023, as well as a decrease in interest expense, which was $140.8 million, compared to $151.1 million in 2023, and an increase in other income. This was partially offset by a decline in operating income.
Adjusted net income for the full year 2024 decreased 8% to $132.5 million, compared to $143.9 million in 2023. The decrease in adjusted net income was largely attributable to the same factors that contributed to the decline in Adjusted EBITDA, partly offset by a decrease in interest expense.
Adjusted EBITDA for the full year 2024 was $452.1 million, a decrease of 1%, compared to $458.7 million in 2023, reflecting the impacts from the disposed business and credit losses as described above, which were $46.4 million in 2024, an increase of $25.3 million compared to 2023 credit losses. Additionally, Paysafe made investments in 2024 totaling approximately $29 million to expand its sales capabilities and optimize the portfolio, which drove an increase in selling, general and administrative expenses.
The combined headwinds from movements in foreign exchange rates and interest on consumer deposits to full year revenue and Adjusted EBITDA were approximately $5.9 million and $6.8 million, respectively.
Operating cash flow for full year 2024 increased to $253.8 million, compared to $234.0 million in the prior year. Unlevered free cash flow decreased to $299.6 million, compared to $318.3 million in the prior year.
Balance Sheet
As of December 31, 2024, total cash and cash equivalents were $216.7 million, total debt was $2.4 billion and net debt was $2.1 billion. Compared to December 31, 2023, total debt decreased by $138.3 million, reflecting net repayments of $58.3 million as well as movement in foreign exchange rates.
Summary of Segment Results
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| Three Months Ended |
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| Year Ended |
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|
| December 31, |
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| YoY |
| December 31, |
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| YoY | ||||||||||||
($ in thousands) (unaudited) |
| 2024 |
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| 2023 |
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| change |
| 2024 |
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| 2023 |
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| change | ||||||
Revenue: |
|
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|
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|
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Merchant Solutions |
| $ | 230,105 |
|
| $ | 227,280 |
|
| 1 | % |
| $ | 957,623 |
|
| $ | 878,346 |
|
| 9 | % |
Digital Wallets |
| $ | 194,445 |
|
| $ | 191,287 |
|
| 2 | % |
| $ | 765,505 |
|
| $ | 734,669 |
|
| 4 | % |
Intersegment |
| $ | (4,480 | ) |
| $ | (4,026 | ) |
| 11 | % |
| $ | (18,293 | ) |
| $ | (11,877 | ) |
| 54 | % |
Total Revenue |
| $ | 420,070 |
|
| $ | 414,541 |
|
| 1 | % |
| $ | 1,704,835 |
|
| $ | 1,601,138 |
|
| 6 | % |
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Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Merchant Solutions |
| $ | 32,516 |
|
| $ | 56,582 |
|
| -43 | % |
| $ | 190,851 |
|
| $ | 222,154 |
|
| -14 | % |
Digital Wallets |
| $ | 89,219 |
|
| $ | 82,356 |
|
| 8 | % |
| $ | 339,025 |
|
| $ | 318,706 |
|
| 6 | % |
Corporate |
| $ | (18,390 | ) |
| $ | (17,197 | ) |
| 7 | % |
| $ | (77,822 | ) |
| $ | (82,197 | ) |
| -5 | % |
Total Adjusted EBITDA |
| $ | 103,345 |
|
| $ | 121,741 |
|
| -15 | % |
| $ | 452,054 |
|
| $ | 458,663 |
|
| -1 | % |
Paysafe also announced today that it has received unsolicited preliminary non-binding expressions of interest before and after the Bloomberg article on February 6, 2025, concerning takeover interest in the Company.
The Board remains confident in Paysafe’s prospects as a stand-alone company and our ability to continue to create shareholder value. However, in accordance with its fiduciary responsibilities, the Board, with its financial and legal advisors, will consider any proposals that maximize shareholder value.
At this time, the Board has not initiated a sale process and is only reviewing the unsolicited proposals. There is no assurance that any transaction will be consummated. Paysafe does not intend to make any further public comment regarding its consideration of any proposals or indications of interest unless it determines that a disclosure is required by law or otherwise deemed appropriate.
Webcast and Conference Call
Paysafe will host a live webcast to discuss the results today at 8:30 a.m. (ET). The webcast and supplemental information can be accessed on the investor relations section of the Paysafe website at ir.paysafe.com. An archive will be available after the conclusion of the live event and will remain available via the same link for one year.
Time | Tuesday, March 4, 2025, at 8:30 a.m. ET |
Webcast | Go to the Investor Relations section of the Paysafe website to listen and view slides |
Dial in | 877-407-0752 (U.S. toll-free); 201-389-0912 (International) |
About Paysafe
Paysafe is a leading payments platform with an extensive track record of serving merchants and consumers in the global entertainment sectors. Its core purpose is to enable businesses and consumers to connect and transact seamlessly through industry-leading capabilities in payment processing, digital wallet, and online cash solutions. With over 25 years of online payment experience, an annualized transactional volume of $152 billion in 2024, and approximately 3,300 employees located in 12+ countries, Paysafe connects businesses and consumers across 260 payment types in 48 currencies around the world. Delivered through an integrated platform, Paysafe solutions are geared toward mobile-initiated transactions, real-time analytics and the convergence between brick-and-mortar and online payments. Further information is available at Visualizza la versione completa sul sito