Paysafe Limited · NYSE:PSFE
Paysafe — Q1 2021 Earnings Presentation
21 slides from Paysafe's earnings presentation, May 11, 2021
Slide 1: First Quarter 2021 Earnings Presentation
First Quarter 2021 Earnings Presentation May 11, 2021
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: Strategy & Business Update
Introduction Strategy & Business Update Starting a New Chapter Following Successful SPAC and Listing on NYSE Board of Directors Comprising Diverse, Proven Leaders and Bill Foley as Chairman Strong Operational and Strategic Execution Coupled with Exciting Market Activity 3
Slide 4: The Leading Specialized Payments Platform
The Leading Specialized Payments Platform Sports betting The Global Leader Online casino Two-Sided Network Lottery in iGaming eSports Fantasy sports Digital goods Proprietary APMs Growing Digital Commerce in Fintech services Attractive Verticals Travel & entertainment Integrated verticals Risk Manag
Slide 5: Business update – Strong execution on our strategic priorities
Business update – Strong execution on our strategic priorities Win in North America iGaming Grow in Key Digital Commerce Verticals Transform & Drive Global Scale • 66% revenue growth Q1 YoY • eCash volume and revenue up >60% Q1 YoY • Migration to Cloud: 70% of business by 2021 • Now live in 15 state
Slide 6: Q1 performance in line with expectations
Q1 performance in line with expectations Q1 2021 $millions Guidance Actual Revenue $360 – $380 ✓ $377 Gross Profit (excl. D&A) $220 – $230 ✓ $226 Adj. EBITDA $105 – $115 ✓ $113 Cost of Services (excl. D&A) + SG&A (excl. SBC) $250 – $275 ✓ $264 note: guidance excluded share-based comp (SBC) $72m 6
Slide 7: Q1 financial highlights
Q1 financial highlights Volume ($bn) Revenue ($m) +8% +5% $27.7 $377.4 • Volume. Growth across Integrated Processing $25.6 $359.7 and eCash • Revenue. Robust growth from eCash offset by lower revenues from Digital Wallets & Integrated Processing − eCash benefiting from lockdown extensions − Impact o
Slide 8: Q1 summary of consolidated results
Q1 summary of consolidated results $ in millions, except volume Q1'20 Q1'21 change • Depreciation and amortization decreased 6% due to prior year impairment charge Volume $25.6bn $27.7bn 8% • Interest expense reflects expensing of Revenue $359.7 $377.4 5% capitalized debt fees as a result of debt re
Slide 9: Integrated Processing segment
Integrated Processing segment Volume ($bn) Revenue ($m) Adj. EBITDA ($m) +17% -5% $21.6 $186.2 -19% $18.5 Pay Later $176.9 $55.2 $179.1 $44.9 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 take rate 1.0% 0.8% margin 29.6% 25.4% • Strong volume across U.S.; Europe muted due to slower economic recove
Slide 10: eCash segment
eCash segment Volume ($bn) Revenue ($m) Adj. EBITDA ($m) +63% +110% $112.9 +61% $48.1 $1.5 $69.1 $22.9 $1.0 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 take rate 7.2% 7.3% margin 33.1% 42.6% • Growth driven by extended lockdowns in Europe and associated increase in spending more online in all ve
Slide 11: Digital Wallet segment
Digital Wallet segment Volume ($bn) Revenue ($m) Adj. EBITDA ($m) -13% $108.5 $94.9 -30% -25% $53.7 $6.2 $37.8 $4.6 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 take rate 1.8% 2.1% margin 49.5% 39.8% • Performance YoY reflects targeted actions/exits that occurred in 2020, partially offset by grow
Slide 12: Strong balance sheet and liquidity
Strong balance sheet and liquidity Liquidity summary ($m) 3/31/21 • Committed to maintaining a healthy balance Cash and cash equivalents $274 sheet and financial flexibility Undrawn amounts under revolving credit facility(1)(2) $225 • Significant deleveraging post-merger; upgraded by S&P (B+) and Mo
Slide 13: Q2 Guidance
Q2 Guidance Q2 2021 Q2 Expectations $millions Guidance • Expect continued strong performance in eCash Revenue $365 – $385 • Lapping of targeted actions/exits from 2020 and return of sports expected to support YoY growth in Digital Wallet Gross Profit (excl. D&A) $225 – $235 • Expect strong volume gr
Slide 14: Reaffirming 2021 guidance
Reaffirming 2021 guidance 2021 FY 2021 FY Expectations $millions prior Guidance • Raising lower end of revenue guidance Revenue $1,520 – $1,550 $1,530 – $1,550 • Revenue growth across all segments Year-over-year growth(1) 8% – 10% 9% – 10% • Strong momentum in Integrated Processing and eCash Gross P
Slide 15: Summary
Summary Highly differentiated B2B and B2C global network with powerful integrated solutions Leveraging leadership position and delivering on iGaming Driving 10%+ Annualized strategy to capitalize on the expanding US market Organic Revenue Growth and ~500 bps Margin Expansion Expanding across digital
Slide 16: Appendix
Appendix See accompanying excel file for supplemental data, including historical quarterly financial information 16
Slide 17: 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 18: GAAP Net Income to Adjusted EBITDA Reconciliation
GAAP Net Income to Adjusted EBITDA Reconciliation 2020 Quarterly, 2020 Full Year, Q1'21 and LTM $'000, unaudited Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Q1 2021 LTM Net Loss (51,014) (9,066) (56,005) (10,629) (126,714) (49,000) (124,700) Income tax (benefit)/expense (17,891) (10,691) 1,864 (32,481)
Slide 19: Operating Cash Flow to Free Cash Flow Reconciliation
Operating Cash Flow to Free Cash Flow Reconciliation Q1'20 and Q1'21 $'000, unaudited Q1 2020 Q1 2021 Net cashflows provided by operating activities: 11,579 48,740 Capital Expenditure1 (14,908) (15,406) Cash paid for interest 38,286 36,853 Payments relating to restructuring and other costs2 4,842 3,
Slide 20: Net Loss to Gross Profit (excl. D&A) Reconciliation
Net Loss to Gross Profit (excl. D&A) Reconciliation Q1'20 and Q1'21 $'000, unaudited Q1 2020 Q1 2021 Net Loss (51,014) (49,000) Income tax (benefit)/expense (17,891) (5,078) Other (income)/expense, net 15,080 (32,630) Interest expense, net 38,223 58,549 Depreciation and amortization 69,499 65,462 Im
Slide 21: Impact of translation of results of non USD entities
Impact of translation of results of non USD entities • A significant proportion of Paysafe’s businesses report in non-USD currencies; principally Euros. Upon consolidation, the results of these entities are translated into USD, driving currency related variances • The below table shows the expected