Paysafe Limited · NYSE:PSFE
Paysafe — Q4 2024 Earnings Presentation
35 slides from Paysafe's earnings presentation, Mar 4, 2025
Slide 1: Fourth Quarter and Full Year 2024 Earnings
Fourth Quarter and Full Year 2024 Earnings March 4, 2025
Slide 2: Forward-looking statements and non-GAAP financial measures
Forward-looking statements and non-GAAP financial measures Forward-Looking Statements This presentation and today’s webcast include “forward-looking statements” within the meaning of U.S. federal securities laws. These forward-looking statements are provided for illustrative purposes only and are no
Slide 3: Key messages
Key messages Strong 2024 growth Delivered on 2024 driven by successful priorities and turnaround strategy key investments Divested direct marketing Reduced net leverage business, completing and returned capital portfolio rationalization to shareholders 3
Slide 4: Full year 2024 financial summary
Full year 2024 financial summary Volume Revenue Adj. EBITDA Adj. Net Income Net Leverage $152bn $1,705m $452m $133m 4.7x +8% YoY +6% YoY; +6% cc1 26.5% margin Adj. EPS $2.14; (8%) YoY versus 5.0x Dec-23 • Upper mid single-digit revenue growth for the 2nd consecutive year; 7% organic2 revenue growth
Slide 5: 2023 to 2024 revenue walk
Overall Paysafe’s core growth was in line with our expectations supported by turnaround initiatives 2023 to 2024 revenue walk ($m) +7% $1,705 $1,601 $104 -$102 11% (13%) 9% 2023 Direct 2023 Attrition Existing New customers 2024 Direct 2024 actual marketing excl disposed (incl. voluntary) customers a
Slide 6: With strong execution on our 2024 priorities
With strong execution on our 2024 priorities Expand sales Revamp consumer capabilities acquisition ❖ Classic wallet actives reach 1m – 1st time ✓X170 ❖ >2x sales team growth in three years (+8% YoY) ❖ 11% enterprise merchant revenue ❖ Stable total 3-month actives 7.3m new hires to growth (ecom 30%)
Slide 7: And continued sales momentum
And continued sales momentum Balanced growth profile Better deal execution Expanding pipeline Enterprise ACV growth ~40% (2024 vs 2023) ~40% pipeline Double-digit Top 20 growth merchant growth Full year pipeline as of Jan 2025 vs. Jan 2024 High single-digit Top 2022 2023 2024 Sales team 20 country g
Slide 8: With a return to growth across all business lines
With a return to growth across all business lines over the last two years Revenue growth by business line Nominal growth and % of total 2024 revenue1 Digital Wallets SMB2 ecommerce 48% of total 44% of total 10% of total 29% 30% 7% 4% 9% 7% 6% (9%) (3%) 2022 2023 2024 2022 2023 2024 2022 2023 2024 (1
Slide 9: Higher quality growth, repositioning, investing and reducing leverage
We delivered higher quality growth, while repositioning, investing and reducing leverage Disposed business Paysafe remaining Accelerating growth Rationalizing and investing Reducing leverage Revenue ($m) and organic growth1 Adj. EBITDA ($m) Net Debt-to-LTM Adj. EBITDA 0% 4% 7% >7% $1,705 $1,722 $1,6
Slide 10: Our team has delivered meaningful achievements from 2022 to 2024
Our team has delivered meaningful achievements from 2022 to 2024 Accelerated revenue Delivered new products - Centralized and simplified growth to upper Optimized and rationalized now mid single-digit to drive meaningful mid single-digits the portfolio % of revenue (0% in 2022) savings/redeployment
Slide 11: Shifting focus to maturing our sales engine and accelerating product innovation
Portfolio repositioning complete. Shifting focus to maturing our sales engine and accelerating product innovation. 2025 priorities Leverage our network Product innovation Sales efficiency New partnerships and drive scale 11
Slide 12: 4Q and 2024 Financial Results
4Q and 2024 Financial Results
Slide 13: Q4 financial highlights
Q4 financial highlights Contribution from disposed business Volume ($bn) Revenue ($m) Adj. EBITDA2 ($m) uFCF2 ($m) Adj. Net Income2 ($m) Actual +12% +1% +2% cc1 (15%) (14% cc1) (21%) (28%) Disposed (1%) pt (3%) pt (16%) pt business impact $414.5 $420.1 $40.0 $121.7 $103.3 $89.6 $70.5 $40.9 $35.8 28.
Slide 14: 2024 full year financial highlights
2024 full year financial highlights Contribution from disposed business Volume ($bn) Revenue ($m) Adj. EBITDA2 ($m) uFCF2 ($m) Adj. Net Income2 ($m) Actual +8% +6% +6% cc1 (1%) (1% cc1) (6%) (8%) Disposed NM NM (4%) pt business impact $151.7 $1,704.8 $140.2 $1601.1 $458.7 $452.1 $318.3 $299.6 $143.9
Slide 15: Merchant Solutions
Merchant Solutions Contribution from disposed business Volume ($bn) Revenue ($m) Adj. EBITDA ($m) Actual +14% +9% +1% +9% (43%) (14%) Disposed (1%) pt NM (5%) pt (1%) pt (31%) pt (4%) pt business impact $129.9 $957.6 $222.2 $118.7 $878.3 $230.1 $56.6 $190.9 $34.4 $227.3 $30.2 $32.5 0.75% 0.67% 0.74%
Slide 16: Digital Wallets
Digital Wallets Volume ($bn) Revenue ($m) Adj. EBITDA ($m) +1% +4% +2% +4% +8% +6% +3% cc1 +4% cc1 +9% cc1 +7% cc1 $765.5 $339.0 $734.7 $22.4 $23.3 $194.4 $89.2 $318.7 $191.3 $6.0 $6.0 $82.4 3.2% 3.2% 3.3% 3.3% 43.1% 45.9% 43.4% 44.3% take rate take rate take rate take rate margin margin margin marg
Slide 17: Continued focus on reducing leverage, while investing in the business
Continued focus on reducing leverage, while investing in the business Liquidity position ($m) 12/31/24 Committed RCF(1) $305 Amounts drawn (91) • Net leverage 4.7x (vs. 5.0x at 2023 year-end), Cash and cash equivalents 217 achieving 2024 target Total $431 • $15m principal debt repayments/repurchases
Slide 18: 2025 Guidance
2025 Guidance $millions 2025 Full Year Guidance - Reported basis Q1 and H1 revenue down Revenue (reported) $1,710m to $1,734m low single-digits YoY; H2 up ~4-7% YoY Year-over-year growth (reported) 0% to 2% Organic growth 6.5% to 8.0% - Contribution from disposed business: 2024 $104m revenue, $43m A
Slide 19: Summary of 2025 outlook drivers
Summary of 2025 outlook drivers 2024 to 2025 revenue drivers ($m) Key margin drivers in 2025 driving >7% organic growth (0-2% reported) • Large portion of incremental 10% $1,722 2024 initiatives investment is $1,705 non-recurring ($104) • Credit losses expected to return $1,600 8% to normal levels (
Slide 20: Significant improvement in our investment thesis
Significant improvement in our investment thesis Leading payments provider with Repositioning complete – Consistently delivering higher an attractive footprint in focus shifts to product innovation quality organic revenue growth high-value verticals and sales efficiency Unique network of merchants a
Slide 21: Appendix
Appendix
Slide 22: 2025 other assumptions
2025 other assumptions $Millions supplemental information for Adj. EPS Interest expense, net $129 to $131 D&A $138 to $140 Non-GAAP D&A excludes amortization of acquired intangibles Non-GAAP other operating expense excludes the Other operating expense $1 to $2 impact of other non-operating income an
Slide 23: Summary of segment results
Summary of segment results 2023 2024 Q1 Q2 Q3 Q4 FY2023 Q1 Q2 Q3 Q4 FY2024 Volume ($m) Merchant Solutions $ 28,571 $ 30,301 $ 29,644 $ 30,159 $ 118,675 $ 30,787 $ 32,719 $ 32,033 $ 34,360 $ 129,899 Digital Wallets 5,443 5,394 5,645 5,963 22,445 5,675 5,717 5,906 6,029 23,327 Intersegment (196) (222)
Slide 24: Summary of direct marketing (disposed business)
Summary of direct marketing (disposed business) Direct Marketing 2023 2024 Q1 Q2 Q3 Q4 FY2023 Q1 Q2 Q3 Q4 FY2024 Volume ($m) $ 938 $ 983 $ 1,013 $ 1,072 $4,006 $ 1,150 $ 1,251 $ 1,075 $ 963 $ 4,439 Revenue ($m) $ 26.4 $ 27.2 $ 24.8 $ 23.6 $ 102.1 $ 30.7 $ 36.7 $ 24.1 $ 12.9 $ 104.4 Gross Profit, exc
Slide 25: Digital Wallets KPIs
Digital Wallets KPIs Average transactions per active user (TPA) TPA based on 3-month active users2 +12% 14 14 14 13 7.3m 12 3-month active users 4Q’23 1Q’24 2Q’24 3Q’24 4Q’24 $17 Average revenue per user (ARPU)1 ARPU based on 3-month active users2 consumer acquisition cost (CAC)3 +7% $26 $27 $27 $27
Slide 26: Merchant KPIs Q4 2024
Merchant KPIs Q4 2024 excluding disposed business (direct marketing) Merchant Take Rate NRR 0.65% 106% Billable MIDs Rev/Merchant -5% YoY +Double-digits YoY Cross-selling Rev/New Merchant 36% of new wins +Double-digits YoY 26
Slide 27: Statement regarding non-GAAP financial measures
Statement regarding non-GAAP financial measures This presentation also contains non-GAAP financial information. Paysafe management believes the presentation of these non-GAAP financial measures, when considered together with the Company’s results presented in accordance with GAAP, provide users with
Slide 28: Organic growth 2022, 2023 and 2024
Organic growth 2022, 2023 and 2024 2022 Organic Growth 2023 Organic Growth 2024 Organic Growth Year ended December 31 Year ended December 31 Year ended December 31 ($'000s) 2021 2022 ($'000s) 2022 2023 ($'000s) 2023 2024 Revenue 1,487,013 1,496,137 Revenue 1,496,137 1,601,138 Revenue 1,601,138 1,704
Slide 29: Reconciliation of GAAP Gross Profit to Gross Profit (excl. D&A)
Reconciliation of GAAP Gross Profit to Gross Profit (excl. D&A) Three Months E nded Y ear E nded December 31, December 31, ($ in thousands) 2024 2023 2024 2023 Revenue $ 420, 070 $ 414, 541 $ 1, 704, 835 $ 1, 6 01, 138 Cost of services (excluding depreciation and amortization) 183,465 173,582 715,76
Slide 30: Reconciliation of GAAP net income (loss) to Adj. EBITDA
Reconciliation of GAAP net income (loss) to Adj. EBITDA Three Months E nded Y ea r E nded December 31, December 31, ($ in thousands) 2024 2023 2024 2023 Net income / ( loss) $ 33, 511 $ ( 12, 129 ) $ 22, 16 0 $ ( 20, 251) Income tax (benefit) / expense (17,694) 13,398 (8,136) 40,840 Interest expense
Slide 31: Supplemental: Adj. EBITDA to Adj. net income walk
Supplemental: Adj. EBITDA to Adj. net income walk Three Months E nded Y ear E nded December 31, December 31, ($ in thousands) 2024 2023 2024 2023 Adjusted E BITDA $ 103, 345 $ 121, 741 $ 452, 054 $ 458, 6 6 3 Depreciation and amortization (1) 32,896 32,856 139,073 128,040 Other operating income / ex
Slide 32: Reconciliation of GAAP net income (loss) to Adj. net income
Reconciliation of GAAP net income (loss) to Adj. net income December 31, December 31, ($ in thousands) 2024 2023 2024 2023 Net income / ( loss) $ 33, 511 $ ( 12, 129 ) $ 22, 16 0 $ ( 20, 251) (1) Other non operating expense / (income), net (18,018) 9,539 (12,594) (3,313) Impairment expense on goodwi
Slide 33: Net income (loss) per share: Adjusted and GAAP
Net income (loss) per share: Adjusted and GAAP Three Months E nded Y ea r E nded December 31, December 31, 2024 2023 2024 2023 Numerator ($ in thousands) Adjusted net income - basic $ 29,563 $ 40,862 $ 132,520 $ 143,888 Adjusted net income - diluted $ 29,563 $ 40,862 $ 132,520 $ 143,888 Denominator
Slide 34: Reconciliation of Operating Cash Flow to Unlevered Free Cash Flow
Reconciliation of Operating Cash Flow to Unlevered Free Cash Flow Three Months E nded Y ear E nded December 31, December 31, ($ in thousands) 2024 2023 2024 2023 Net cash inflow s from operating activities $ 58, 89 5 $ 6 1, 59 2 $ 253, 804 $ 234, 022 Capital expenditure (31,875) (20,646) (111,718) (
Slide 35: Thank You
Thank You 35