Slide 1: Second Quarter 2023 Earnings
Second Quarter 2023 Earnings AUGUST 15, 2023
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: Summary
Summary Volume1 Revenue Adj. EBITDA Adj. Net Income Net Leverage $35bn $402m $113m $35m 5.6x +6% YoY +5% YoY cc2; +6% 28.1% margin (+90 bps) $0.56 per share versus 5.8x Dec-22 • 4th consecutive quarter of reported YoY revenue growth; strength across SMB, e-commerce and classic digital wallets • +5%
Slide 4: Continued progress on our growth priorities
Continued progress on our growth priorities Sales Transformation Q2 enterprise deal examples across Paysafe’s core strategic verticals Gaming Travel & Leisure Retail & Hospitality Digital Assets Cross-Selling Products to Expanding Merchants Winning New Existing Merchants to New Regions Enterprise Me
Slide 5: Classic digital wallets
Classic digital wallets Revenue1 +12%cc Q2 classic digital wallet Revenue1 +12% cc 3-month active users2 growth YoY Q2 classic digital wallets classic digital wallet underlying active user trend growth YoY 0.9m 0.9m 0.9m 0.9m 0.9m • Stability in active user base of classic digital wallets • ~10% gro
Slide 6: Q2 2023 Financial Results
Q2 2023 Financial Results 6
Slide 7: Q2 financial highlights
7 Q2 financial highlights Volume1 ($bn) Revenue ($m) Adj. EBITDA3 ($m) LTM FCF3 ($m) Adj. Net Income3,4 ($m) +6% +6% +10% +5% cc2 +9% cc2 +63% -8% $35.5 $363.0 $33.4 $402.3 $378.9 $113.0 $103.0 $222.1 $37.5 $34.7 1.1% 1.1% 27.2% 28.1% $0.62 $0.56 take rate take rate margin margin Adj. EPS Adj. EPS Q
Slide 8: Merchant Solutions
Merchant Solutions Volume ($bn) Revenue ($m) Adj. EBITDA ($m) • Performance driven by U.S. SMB, led by third-party partner channel +7% +6% +1% • Growth in e-comm driven by $30.3 $55.1 $55.8 North America iGaming $28.4 $225.7 $212.8 • Margin decline reflects mix 0.75% 0.74% 25.9% 24.7% take rate take
Slide 9: Digital Wallets
Digital Wallets Volume11 ($bn) Volume ($bn) Revenue 2 ($m) Revenue ($m) Adj. EBITDA Adj. EBITDA($m) 2 ($m) • Growth driven by classic digital +6% +6% +11% wallets with progress across +5% cc2 +8% cc2 initiatives as well as interest revenue $5.4 • 4th consecutive quarter of CC $5.1 YoY growth $179.1
Slide 10: Continued focus on reducing leverage
Continued focus on reducing leverage Liquidity position ($m) 6/30/23 Committed RCF(1) $305 Amounts drawn (28) • $42m Q2 net repayments of debt; FX Cash and cash equivalents 207 movement increased debt by ~$8m Total $484 % • Avg. interest rate (incl. interest rate Facility (as of 6/3o/23) ($m) total
Slide 11: Raising 2023 guidance
11 Raising 2023 guidance 2023 FY Guidance 2023 FY Guidance $millions (prior) (updated) Revenue $1,580 – $1,600 $1,595 – $1,608 • Raising 2023 revenue outlook and raising the low end of Adj. EBITDA outlook Year-over-year growth 5.6% to 6.9% 6.5% to 7.5% • Estimated year-end net leverage 5.1x to 5.3x
Slide 12: Appendix
Appendix
Slide 13: Supplemental: summary of segment results
Supplemental: summary of segment results 2022 2023 Q1 Q2 Q3 Q4 FY2022 Q1 Q2 Volume ($m) Merchant Solutions $ 25,862 $ 28,392 $ 27,826 $ 28,000 $ 110,080 $ 28,571 $ 30,301 Digital Wallets 5,444 5,095 4,786 5,278 20,603 5,443 5,394 Intersegment (137) (126) (117) (161) (541) (196) (222) Total $ 31,169
Slide 14: 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 15: Reconciliation of GAAP Gross Profit to Gross Profit (excl. D&A)
Reconciliation of GAAP Gross Profit to Gross Profit (excl. D&A) Three Months Ended Six Months Ended June 30, June 30, ($ in thousands) 2023 2022 2023 2022 Revenue $ 402,338 $ 378,913 $ 790,187 $ 746,581 Cost of services (excluding depreciation and amortization) 166,614 158,987 325,553 306,090 Deprec
Slide 16: Reconciliation of GAAP Net loss to Adj. EBITDA
Reconciliation of GAAP Net loss to Adj. EBITDA Three Months Ended Six Months Ended June 30, June 30, ($ in thousands) 2023 2022 2023 2022 Net loss $ (1,765) $ (658,739) $ (5,573) $ (1,829,551) Income tax expense / (benefit) 6,545 (16,618) 10,424 (60,032) Interest expense, net 36,762 28,426 74,218 54
Slide 17: Supplemental: Adj. EBITDA to Adj. Net Income reconciliation
Supplemental: Adj. EBITDA to Adj. Net Income reconciliation Three Months Ended June 30, ($ in thousands) 2023 2022 Adjusted EBITDA $ 113,031 $ 102,953 (1) Depreciation and amortisation 32,330 26,302 (2) Other operating (income) / expense, net (2,562) 2,456 Interest expense, net 36,762 28,426 Adjuste
Slide 18: Reconciliation of GAAP Net loss to Adj. net income
Reconciliation of GAAP Net loss to Adj. net income Three Months Ended Six Months Ended June 30, June 30, ($ in thousands) 2023 2022 2023 2022 Net loss attributable to the Company $ (1,765) $ (658,739) $ (5,573) $ (1,829,922) Other non-operating income, net (1) (4,814) (58,611) (5,578) (64,019) Impai
Slide 19: Adjusted Net Income per Share
Adjusted Net Income per Share Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Numerator ($ in thousands) Adjusted net income attributable to the Company - basic $ 34,678 $ 37,541 $ 67,754 $ 74,802 Adjusted net income attributable to the Company - diluted $ 34,678 $ 37,541 $
Slide 20: Reconciliation of Operating Cash Flow to Free Cash Flow
Reconciliation of Operating Cash Flow to Free Cash Flow Thre e Months Ende d Six Months Ende d June 30, June 30, ($ in thousands) 2023 2022 2023 2022 Ne t cash (outflows) / inflows from ope rating activitie s $ (233,924) $ 875,599 $ (352,885) $ 1,379,447 Capital Expenditure (25,458) (24,092) (55,826
Slide 21: Thank you
Thank you