Slide 1: Third Quarter 2024 Earnings
Third Quarter 2024 Earnings November 13, 2024
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: Summary
Summary Volume Revenue Adj. EBITDA Adj. Net Income Net Leverage $38bn $427m $118m $31.4m 4.7x +7% YoY +8% YoY; 7% cc1 28% margin Adj. EPS $0.51; -11% YoY versus 5.1x Sept-23 ❖ Reaffirming 2024 Guidance ❖ Segment revenue: Merchant Solutions +11% YoY and Digital Wallets +4% YoY ❖ Portfolio optimizatio
Slide 4: Q3 update: strong progress on 2024 priorities
Q3 update: strong progress on 2024 priorities Expand Sales Revamp Consumer Capabilities Acquisition #1 global video gaming event 170 Completed >28K On Track YTD new hires Revolut users transacted in Q3 to sales team (fully launched end of July) Deliver Innovation Optimize Portfolio & Experiences Val
Slide 5: Merchant Solutions KPIs
Merchant Solutions KPIs KPIs Take Rate NRR +8% 0.75% 103% YoY Volume Billable MIDs SMB Direct +11% -3% YoY 5% YoY YoY Revenue Cross-selling Rev/New Merchant 28% of new wins Up double-digits YoY 5
Slide 6: Digital Wallets KPIs
Digital Wallets KPIs Average transactions per active user (TPA) TPA based on 3-month active users2 +16% 14 14 13 7m 12 12 3-month active users 3Q’23 4Q’23 1Q’24 2Q’24 3Q’24 $17 Average revenue per user (ARPU)1 ARPU based on 3-month active users2 consumer acquisition cost (CAC)3 +5% $26 $26 $27 $27 $
Slide 7: 3Q24 Financial Results
3Q24 Financial Results
Slide 8: Q3 financial highlights
Q3 financial highlights Volume ($bn) Revenue ($m) Adj. EBITDA2 ($m) LTM uFCF2 ($m) Adj. Net Income2 ($m) +7% +8% +1% -3% -11% +7% cc1 1% cc1 $37.5 $427.1 $116.1 $117.8 $35.1 $396.4 $328.7 $318.7 $35.3 $31.4 74% 68% 1.1% 1.1% 29.3% 27.6% conversion conversion $0.57 $0.51 take rate take rate margin ma
Slide 9: Merchant Solutions
Merchant Solutions Volume ($bn) Revenue ($m) Adj. EBITDA ($m) • Strong growth driven by +8% +11% -8% continued robust e-commerce volumes (e.g. iGaming) and $32.0 portfolio optimization $29.6 • Adj. EBITDA margin decline mainly reflects investments in $241.1 initiatives and derisking of $216.8 $57.5
Slide 10: Digital Wallets
Digital Wallets Volume ($bn) Revenue ($m) Adj. EBITDA ($m) • Continued growth from sales +4% +5% initiatives as well as product +5% +4% cc1 +5% cc1 and engagement initiatives, including growth in LatAm, partially offset by lower $190.9 interest revenue $5.9 $182.9 $5.6 $84.1 $79.9 3.2% 3.2% 43.7% 44
Slide 11: Continued to reduce leverage and invest in the business
Continued to reduce leverage and invest in the business Liquidity position ($m) 9/30/24 Committed RCF(1) $305 Amounts drawn (78) • $15.2m debt repayments/repurchases in Q3 Cash and cash equivalents 241 Total $468 • Avg. interest rate (incl. interest rate swap) at ~5.5% as of Sept 2024 (vs. ~5.8% Sep
Slide 12: Reaffirming 2024 Guidance
Reaffirming 2024 Guidance $Millions 2024 Outlook Revenue $1,713 to $1,729 • Original revenue guidance YoY +7% to +8% $1,688 - $1,712 (+5.5% to +7%) Adj. EBITDA $471 to $484 • Original Adj. EBITDA guidance margin 27.5% to 28.0% $473 - $488 (margin: 28.0% to 28.5%) 4.6x to 4.7x • FY26 year-end net lev
Slide 13: Paysafe welcomes CFO John Crawford
Paysafe welcomes CFO John Crawford Observations Priorities ❖ Dedicated team with a strong drive to succeed ❖ Improve efficiency and system migration ❖ Demonstrated transformation ❖ Grow cash flow and operating leverage ❖ Operates in attractive verticals with unique ❖ Disciplined approach to innovati
Slide 14: Thank You
Thank You 14
Slide 15: Appendix
Appendix
Slide 16: Summary of segment results
Summary of segment results 2023 2024 Q1 Q2 Q3 Q4 FY2023 Q1 Q2 Q3 Volume ($m) Merchant Solutions $ 28,571 $ 30,301 $ 29,644 $ 30,159 $ 118,675 $ 30,787 $ 32,719 $ 32,033 Digital Wallets 5,443 5,394 5,645 5,963 22,445 5,675 5,717 5,906 Intersegment (196) (222) (187) (301) (906) (340) (376) (402) Total
Slide 17: 2024 other assumptions
2024 other assumptions $Millions for Adj. EPS Interest expense, net $139 to $141 D&A $140 to $142 • D&A excludes amortization of acquired intangibles Other operating income $7 to $9 • Other operating income excludes the impact of other non-operating income and expenses such as fair value gains and l
Slide 18: Statement regarding non-GAAP financial measures
Statement regarding non-GAAP financial measures This presentation also contains non-GAAP financial information. Paysafe management believes the presentation of these non-GAAP financial measures, when considered together with the Company’s results presented in accordance with GAAP, provide users with
Slide 19: Reconciliation of GAAP Gross Profit to Gross Profit (excl. D&A)
Reconciliation of GAAP Gross Profit to Gross Profit (excl. D&A) Three Months Ended Nine Months Ended September 30, September 30, ($ in thousands) 2024 2023 2024 2023 Revenue $ 427,103 $ 396,410 $ 1,284,765 $ 1,186,597 Cost of services (excluding depreciation and amortization) 178,099 164,077 532,297
Slide 20: Supplemental: Adj. EBITDA to Adj. net income walk
Supplemental : Adj. EBITDA to Adj. net income walk Three Months Ended September 30, ($ in thousands) 2024 2023 Adjusted EBITDA $ 117,787 $ 116,076 Depreciation and amortization (1) 36,367 32,980 Other operating income, net (2) (2,320) (2,387) Interest expense, net 35,546 38,421 Adjusted income tax 1
Slide 21: Reconciliation of GAAP net (loss)/income to Adj. EBITDA
Reconciliation of GAAP net (loss)/ income to Adj. EBITDA Three Months Ended Nine Months Ended September 30, September 30, ($ in thousands) 2024 2023 2024 2023 Net loss $ (12,977) $ (2,549) $ (11,351) $ (8,122) Income tax (benefit) / expense (2,948) 17,018 9,558 27,442 Interest expense, net 35,546 38
Slide 22: Reconciliation of GAAP net income (loss) to Adj. net income
Reconciliation of GAAP net income (loss) to Adj. net income Three Months Ended Nine Months Ended September 30, September 30, ($ in thousands) 2024 2023 2024 2023 Net loss $ (12,977) $ (2,549) $ (11,351) $ (8,122) Other non operating expense / (income), net (1) 17,062 (7,274) 5,424 (12,852) Impairmen
Slide 23: Net income (loss) per share: Adjusted and GAAP
Net income (loss) per share: Adjusted and GAAP Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Numerator ($ in thousands) Adjusted net income - basic $ 31,372 $ 35,272 $ 102,957 $ 103,026 Adjusted net income - diluted $ 31,372 $ 35,272 $ 102,957 $ 103,026 Denomin
Slide 24: Reconciliation of Operating Cash Flow to Unlevered Free Cash Flow
Reconciliation of Operating Cash Flow to Unlevered Free Cash Flow ($ in thousands) 2024 2023 ( 1) 2024 2023 ( 1) Net cash inflows from operating activities $ 81,934 $ 102,216 $ 194,909 $ 172,430 Capital expenditure (24,950) (25,696) (79,843) (81,522) Cash paid for interest 32,246 32,363 109,308 107,
Slide 25: Thank You
Thank You 25