Slide 1: Fourth Quarter & Full Year 2022 Earnings
Fourth Quarter & Full Year 2022 Earnings MARCH 9, 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: Key messages
Key messages Q4'22 Full Year 2022 Volume1 Volume1 • +9% 2H revenue growth YoY (CC) Revenue Revenue • 2022 FCF of $298m, reflecting strong 73% conversion • Sales transformation driving multi-product/upsell wins and Adj. EBITDA Adj. EBITDA meaningful pipeline growth • Driving stronger growth and margi
Slide 4: Stabilization in classic Wallets despite market softness, European gambling regs
Stabilization in classic Wallets despite market softness, European gambling regs Rev1 +7%cc Q4 digital wallet revenue growth YoY excl. war-region Deposits2 ($m) Underlying quarterly deposit trends YoY CC +14% 257m 254m 268m 234m 248m 262m Improvements in consumer experience Q3’21 Q4’21 Q1’22 Q2’22 Q
Slide 5: Well positioned in 2023 with immediate projects to drive in-year revenue growth
Well positioned in 2023 with immediate projects to drive in-year revenue growth Client Experience Product Innovation Sales Transformation • Merchant: #3 on J.D. Power U.S. • Improving authorization rates to • Hired new sales leadership team Merchant Services Satisfaction Study support both sides of
Slide 6: Sales Transformation focused on new customer acquisition, cross-selling and geographical expansion
New merchant acquisition Paysafe solution: Why we won: Sales Transformation focused on new • Card processing and APM ✓ Trusted brand with strong service customer acquisition, integration in Ontario and iGaming leadership cross-selling and • Additional products and ✓ Integrated platform with single g
Slide 7: Q4 and 2022 Financial Results
Q4 and 2022 Financial Results 7
Slide 8: Revenue above guidance, Adj. EBITDA inline
Revenue above guidance, Adj. EBITDA inline Q4 guidance Q4 FY guidance FY $millions (midpoint1) Actual (midpoint1) Actual Revenue $374 ✓ $383.6 $1,487 ✓ $1,496.1 Adj. EBITDA $107 ✓ $107.6 $409 ✓ $410.0 Adj. EBITDA margin % ~28.5% 28.0% ~27.5% 27.4% Note: 4Q22 guidance range: Revenue $370m to $378m, A
Slide 9: Q4 financial highlights
9 Q4 financial highlights Volume1 ($bn) Revenue ($m) Adj. EBITDA2,4 ($m) FCF4 ($m) Adj. Net Income4 ($m) +3% +2% +5% +8% cc2 +72% -37% +6% cc2 $91.4 $33.1 $401.3 cc $111.6 $31.5 FX cc FX $371.7 headwind $105.5 headwind $383.6 $107.6 $53.1 reported reported $52.2 $33.1 1.2% 1.2% 28.4% 28.0% 50% 85% t
Slide 10: 2022 full year financial highlights
10 2022 full year financial highlights Volume1 ($bn) Revenue ($m) Adj. EBITDA2,4 ($m) FCF4 ($m) Adj. Net Income4 ($m) +6% +1% -8% +5% cc2 -3% cc2 +4% -26% $1,566.7 cc $130.1 $1,487.0 FX headwind $428.8 $122.4 $443.9 cc $297.8 $1,496.1 FX headwind $286.3 reported $410.0 reported $185.8 $137.0 65% 73%
Slide 11: Merchant Solutions
11 Merchant Solutions Volume ($bn) Revenue ($m) Adj. EBITDA ($m) +7% +10% +10% +10% -1% +7% $110.1 $817.4 $100.0 +5% $208.5 $745.3 +5% $200.3 $190.3 $186.9 $28.0 $51.8 $51.0 $26.1 0.7% 0.7% 0.7% 0.7% 27.2% 24.5% 25.1% 24.5% take rate take rate take rate take rate margin margin margin margin Q4 2021
Slide 12: Digital Wallets
12 Digital Wallets FX headwind Volume ($bn) Revenue ($m) Adj. EBITDA ($m) -4% -9% +6% cc +1% cc -4% -13% -4% -11% +9% cc, excl. war +3% cc, excl. war +7% cc -3% cc $23.1 $755.7 $322.0 $20.6 $194.7 $750.0 cc $332.1 cc cc $85.5 $5.5 $5.3 $183.8 cc $686.2 $80.0 $289.4 $177.1 reported reported reported
Slide 13: Leverage profile
Leverage profile Liquidity position ($m) 12/31/22 Committed RCF(1) $305 Amounts drawn (21) Non-segregated cash 260 • Total debt $2.64bn vs. $2.76bn Dec'21 Total $544 • $77m TLB & SSN (face value) paid down in % FY'22 Facility (as of 12/31/22) ($m) total Fixed rate SSN $821 • No bond or term loan mat
Slide 14: 2023 guidance
14 2023 guidance $millions 2023 FY Guidance Q1 Guidance Revenue $1,580 – $1,600 $375 – $380 • Other: − Approximate FX sensitivity: Year-over-Year 6% to 7% 2% to 3% 1% EUR weakening vs USD impacts annual (approx. 4% CC) revenue by ($7m) and Adj. EBITDA by ($2m) − Est. year-end net leverage 5.1x to 5.
Slide 15: Appendix
Appendix
Slide 16: Supplemental: summary of segment results
Supplemental: summary of segment results Note: Q1’22, Q2’22, Q3’22 and Q4’22 Volume excludes embedded finance-related volumes of approximately $4.4 billion and $13.5 billion, $10.4 billion, and $9.2 billion, respectively. Note: Gross Profit has been calculated as revenue, less cost of services and d
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 (loss) income to Adjusted EBITDA reconciliation
GAAP Net (loss) income to Adjusted EBITDA reconciliation 18 18 18
Slide 19: Reconciliation of GAAP Net (loss) income to Adjusted net income
Reconciliation of GAAP Net (loss) income to Adjusted net income (in millions) (1): Other non operating (income) /expense, net primarily consists of income and expenses outside of the Company's operating activities, including fair value gain on derivative instruments, fair value gain on warrant liabi
Slide 20: Operating Cash Flow to Free Cash Flow reconciliation
Operating Cash Flow to Free Cash Flow reconciliation 20 20
Slide 21: GAAP Gross Profit to Gross Profit (excl. D&A) reconciliation
GAAP Gross Profit to Gross Profit (excl. D&A) reconciliation (1): Gross Profit has been calculated as revenue, less cost of services and depreciation and amortization. Gross profit is not presented within the Company's consolidated financial statements. 21 21
Slide 22: Adjusted Net Income per Share
Adjusted Net Income per Share (1): The denominator used in the calculation of diluted adjusted net income per share attributable to the Company for the three months and years ended December 31, 2022,and December 31, 2021,has been adjusted to include the dilutive effect of the Company's restricted st
Slide 23: Thank you
Thank you