Slide 1: Second Quarter 2022 Earnings
Second Quarter 2022 Earnings AUGUST 10, 2022
Slide 2: Forward looking statements and non-GAAP financial measures
Forward looking statements and non-GAAP financial measures Forward-Looking Statements This presentation includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are
Slide 3: Q2 summary
Q2 summary Q2 results Recent Highlights • Q2 results in line with guidance • Strong US Acquiring growth Organizational updates ‘Payment Innovation’ Award • Hired Paysafe’s first Chief (2022 SBC Awards North Revenue Officer America) • Simplifying organizational structure Ontario iGaming expansion • P
Slide 4: First 90 Days Review
First 90 Days Paysafe has a unique, scaled platform serving attractive merchant and consumer groups Review We play in large, high-growth verticals and have Key messages many of the assets to own the payments journey We have meaningful opportunities to accelerate growth and simplify Paysafe 4
Slide 5: Today Paysafe largely serves Entertainment verticals across North America and Europe
Today Paysafe largely serves Entertainment verticals across North America and Europe Revenue by Vertical and Geography 20% 4% 8% ~70% online (revenue) 40% Vertical 1 Geography 2 2021FY 2021FY ~80% 48% 80% Entertainment North America entertainment Retail non-discretionary Europe / other LATAM RoW Not
Slide 6: Paysafe plays in a ~$7 Trn market with double-digit growth
Paysafe plays in a ~$7 Trn market with double-digit growth Entertainment New Geography Travel & Streaming/Online Latin America iGaming Entertainment Gaming Retail/Hospitality Digital Assets eCommerce $114bn+(1) $1.5tn+(2) $500bn+(3) $1.4tn+(4) $3.2tn+(5) $230bn+(6) 13% CAGR 10-15% CAGR 16% CAGR 8% C
Slide 7: Secure. Scalable. Global.
Secure. Scalable. Global. Access New All the Ways to Pay Customers & Markets 100+ APMs Single API – (Local + Global APMs) (Deposit/Withdraw Locally) Full Breadth of Payments Security & Control Risk & Compliance Risk-based and Inclusive Cash Vertical Expertise Solutions 1M+ Instant Payouts Merchants
Slide 8: Strong Results in Key Areas / Areas of Opportunity
Strong Results Areas of in Key Areas Opportunity Americas growth +18% YTD Organizational and Operational Simplification Top accounts growth1 >10% FY21 European iGaming (wallet user engagement) Recent M&A growth2 >30% YTD pro forma Sales Transformation Avg. monthly users growth3 +15% Q2 YoY Accelerat
Slide 9: Initial changes underway
Initial changes underway ✓ Simplifying organizational/leadership structure and go-to market model − Digital Wallets division will focus on all Paysafe consumers (eCash + Digital Wallets) − Simplifying our B2B merchant proposition − Streamlining support functions (Risk & Compliance; Technology & Oper
Slide 10: Long-term growth accelerators
Long-term growth accelerators Focusing on helping our Creating a strong sales Reducing friction and improving Increasing breadth of APMs. Expanding in target verticals clients be successful – culture focused on customer journey (incl. with ‘right to win’ segments. improved emphasis on consumer and m
Slide 11: Q2 Financial Results
Q2 Financial Results
Slide 12: Q2 performance in line with guidance
Q2 performance in line with guidance $millions Q2 Guidance Actual Revenue $370 – $380 ✓ $379 Adj. EBITDA $100 – $110 ✓ $103 12
Slide 13: Q2 financial highlights
Q2 financial highlights Volume1 ($bn) Revenue ($m) Adj. EBITDA3($m) LTM FCF3 ($m) +3% -1% -13% -34% +3% cc2 -9% cc2 $32.3 $33.4 $384.3 $118.8 $338.8 $378.9 $103.0 $222.1 1.2% 1.1% 30.9% 27.2% 78% 53% take rate take rate margin margin conversion conversion (adj. EBITDA) (adj. EBITDA) Q2 2021 Q2 2022
Slide 14: Growth in Americas offset by Europe, FX
Growth in Americas offset by Europe, FX Q2 Revenue Bridge by Region1 Q2 Revenue Mix1 % Europe North America LatAm RoW $9 +3% YoY -1% YoY CC RoW reported 10% LatAm Europe 7% 31% North America 52% Note: RoW = Rest of World; Figures based on Q2 2022. CC = constant currency. (1) Split by region of trans
Slide 15: Q2 summary of consolidated results
Q2 summary of consolidated results $ in millions Q2 '21 Q2 '22 Change (1%) Revenue $384.3 $378.9 3% cc • Reduction in interest expense reflects acceleration of deferred Gross Profit (excluding D&A) $228.6 $219.9 (4%) debt financing expense in prior year Margin % 59.5% 58.0% (150bps) Adj. EBITDA $118
Slide 16: Digital Commerce
Digital Commerce Volume1 ($bn) Revenue2 ($m) Adj. EBITDA2 ($m) -13% -5% -4% cc • Performance largely inline with $219.7 expectations reflecting $11.8 -25% gambling regulations in Europe, $11.2 $95.1 $191.8 -16% cc Russia/Ukraine war, and softer financial markets/crypto activity $71.7 • Headwinds par
Slide 17: US Acquiring
US Acquiring Volume ($bn) Revenue ($m) Adj. EBITDA ($m) Volume ($bn) Revenue ($m) Adj. EBITDA ($m) +8% +14% +30% • Volume reflects stable merchant portfolio and growth from $53.0 existing merchants (incl. higher $22.1 $187.2 average ticket) $20.5 $164.6 $40.7 • Overall strong growth and margin expan
Slide 18: Leverage summary
Leverage summary Fixed rate vs. Interest Outstanding Facility Liquidity summary ($m) 6/30/22 Floating rate rate ($m) Term Loan Facility (USD) Floating, 0.5% rate floor USD LIBOR + 2.75% $1,009 Cash and cash equivalents $244 Term Loan Facility (EUR) Floating, 0.0% rate floor EURIBOR + 3.00% 735 Undra
Slide 19: Q3 guidance
Q3 guidance Q3'22 Guidance ($m) Commentary and Revenue Bridge ($m) Mid to High Single- Revenue $m $350 – $365 • US Acquiring growth Digit growth (CC) moderates Year-over-Year (1%) to 3% • Digital Commerce improves $350 - $365 $354 YoY constant currency basis; down YoY reported basis • Mid to high si
Slide 20: FY 2022 guidance (updated)
FY 2022 guidance (updated) FY Guidance1 ($m) Commentary and Revenue Bridge (midpoint of guidance) • Expect reported Revenue +4.5% YoY Revenue $m $1,470 – $1,490 roughly flat YoY; +4% to +5% ~$1.56bn growth excl. FX ~ Flat YoY Year-over-Year (1%) to 0% $1.49bn ~$1.48bn • FX revenue impact ~$75m; addi
Slide 21: Appendix
Appendix
Slide 22: Digital Commerce revenue disaggregation
Digital Commerce revenue disaggregation YoY % change % of total Active Users1 $m Q2 Revenue Segment Reported CC 12-month eCash $ 96 50% -8% 2% 16.8m Digital Wallet 79 41% -19% -11% 2.5m Integrated & eCommerce 26 13% -4% -2% Intrasegment (8) Total Digital Commerce $ 192 100% -13% -4% 19.3m Note: Digi
Slide 23: Supplemental: summary of segment results
Supplemental: summary of segment results 2021 2022 Q1 Q2 Q3 Q4 FY 2021 Q1 Q2 Volume ($m) US Acquiring $ 16,398 $ 20,507 $ 20,685 $ 20,439 $ 78,028 $ 19,849 $ 22,117 Digital Commerce 11,114 11,786 10,374 11,050 44,325 11,320 11,245 Total $ 27,512 $ 32,292 $ 31,060 $ 31,489 $ 122,353 $ 31,169 $ 33,361
Slide 24: Statement regarding Non-GAAP financial measures
Statement regarding Non-GAAP financial measures To supplement the Company’s condensed consolidated financial statements presented in accordance with generally accepted accounting principles, or GAAP, the company uses non-GAAP measures of certain components of financial performance. This includes Gro
Slide 25: GAAP Net (loss) income to adjusted EBITDA reconciliation
GAAP Net (loss) income to adjusted EBITDA reconciliation Three months ended Six months ended June 30, June 30, ($ in thousands) 2022 2021 2022 2021 Net (loss) / income $ (631,521) $ 6,785 $ (1,802,333) $ (53,744) Income tax expense / (benefit) (10,233) 16,690 (53,647) 10,754 Interest expense, net 28
Slide 26: Reconciliation of GAAP net (loss) income to Adjusted net income
Reconciliation of GAAP net (loss) income to Adjusted net income Three months ended Six months ended June 30, June 30, ($ in thousands) (unaudited) 2022 2021 2022 2021 Net (loss) / income attributable to the Company $ (631,521) $ 6,597 $ (1,802,704) $ (54,050) Other non operating income, net (1) (58,
Slide 27: Operating Cash Flow to Free Cash Flow reconciliation (LTM)
Operating Cash Flow to Free Cash Flow reconciliation (LTM) LTM LTM ($ in thousands) Q2 2022 Q2 2021 Net cash inflows from operating activities $ 1,562,905 $ 315,077 Capital expenditure (89,953) (74,737) Cash paid for interest 80,291 152,391 Payments relating to restructuring and other costs 37,691 1
Slide 28: Operating Cash Flow to Free Cash Flow reconciliation
Operating Cash Flow to Free Cash Flow reconciliation Three months ended Six months ended June 30, June 30, ($ in thousands) (unaudited) 2022 2021 2022 2021 Net cash (outflows)/ inflows from operating activities $ 875,599 $ (7,730) $ 1,379,447 $ 41,010 Capital Expenditure (24,092) (23,215) (44,731) (
Slide 29: GAAP Gross Profit to Gross Profit (excl. D&A) reconciliation
GAAP Gross Profit to Gross Profit (excl. D&A) reconciliation Three months ended Six months ended June 30, June 30, ($ in thousands) 2022 2021 2022 2021 Revenue $ 378,913 $ 384,343 $ 746,581 $ 761,767 Cost of services (excluding depreciation and amortization) 158,987 155,778 306,090 306,815 Depreciat
Slide 30: Second Quarter Earnings - Thank You
Second Quarter 2022 Earnings THANK YOU