Paysafe Limited · NYSE:PSFE
Paysafe — Q1 2023 Earnings Presentation
23 slides from Paysafe's earnings presentation, May 16, 2023
Slide 1: First Quarter 2023 Earnings
First Quarter 2023 Earnings M AY 1 6 , 2 0 2 3
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 Q1'23 results Recent Highlights • +7% total revenue growth YoY CC • Merchant Solutions +8% (incl. Revenue double-digit e-comm growth) and Ranked #3 on J.D. Power Digital Wallets +6% CC U.S. Merchant Services Satisfaction Study Organization update • Welcomed Nicole Carroll – Chief Adj
Slide 4: Sales transformation focused on new customer acquisition, Q1 enterprise deal examples
Q1 enterprise deal examples Cross-Selling Products to Expanding Merchants Winning New Existing Merchants to New Regions Merchants Sales transformation focused on new Client vertical: 3 gaming merchants (Europe) Client vertical: Forex/multi-asset trading Client vertical: Cryptocurrency exchange custo
Slide 5: Returning to growth in classic digital wallet
Returning to growth in classic digital wallet Stability in 3-month active users2 Revenue1 +10%cc Q1 classic digital wallet classic digital wallet underlying active user trend growth YoY 1.0m 0.9m 0.9m 0.9m 0.9m • Stability in active user base • Double-digit growth in 3-month transactions, TPA and av
Slide 6: Q1 2023 Financial Results
Q1 2023 Financial Results 6
Slide 7: Q1 revenue exceeds guidance range, Adj. EBITDA in line
Q1 revenue exceeds guidance range, Adj. EBITDA in line Q1 Guidance Q1 $millions (midpoint1) Actual Revenue $377.5 ✓ $387.8 Adj. EBITDA $106.5 ✓ $107.8 Adj. EBITDA margin % ~28% ✓ 27.8% (1) Q1'23 guidance range was revenue of $375m – $380m and Adj. EBITDA of $105m – $108m. 7
Slide 8: Q1 financial highlights
8 Q1 financial highlights Volume1 ($bn) Revenue ($m) Adj. EBITDA2,3 ($m) LTM FCF3 ($m) Adj. Net Income3 ($m) +5% +4% +8% +7% cc2 +5% cc2 +30% -11% $33.8 $395.2 $307.9 $31.2 cc FX $109.3 headwind cc FX $237.0 $367.7 $387.8 $104.0 headwind $107.8 $37.3 reported reported $33.1 1.2% 1.1% 28.3% 27.8% $0.
Slide 9: Merchant Solutions
Merchant Solutions Volume ($bn) Revenue ($m) Adj. EBITDA ($m) • Volume and revenue reflect double-digit e-comm growth and resiliency in US SMB +10% +8% +8% $208.5 • YoY comparison includes prior $28.6 year Omicron impact in Jan '22 $192.3 $52.3 $25.9 $48.5 0.74% 0.73% 25.2% 25.1% take rate take rate
Slide 10: Digital Wallets
Digital Wallets Volume11 ($bn) Volume ($bn) Revenue2 2($m) Revenue ($m) Adj.EBITDA Adj. EBITDA 2 ($m) 2 ($m) • Performance reflects momentum +2% +6% across growth initiatives (user flat +6% cc +12% cc experience, innovation, and sales transformation) $5.4 $5.4 $188.7 $83.5 • Growth supported by inte
Slide 11: Continued focus on reducing leverage
Continued focus on reducing leverage Liquidity position ($m) 3/31/23 Committed RCF(1) $305 Amounts drawn (37) • ~$50m Q1 net repayments of debt; Cash and cash equivalents 222 movement in FX increased debt by Total $490 ~$15m % Facility (as of 3/31/23) ($m) total • Avg. interest rate (incl. interest
Slide 12: Maintaining 2023 guidance
12 Maintaining 2023 guidance 2023 FY Guidance $millions (unchanged) Revenue $1,580 – $1,600 • Other: − Approximate FX sensitivity: 1% EUR weakening year-over-year growth 6% to 7% versus USD impacts annual revenue by ($7m) and Adj. EBITDA by ($2m) Adj. EBITDA $452 – $462 year-over-year growth 10% to
Slide 13: Closing
Closing 1 2 3 4 Large, High Growth Scarce and Leading Well Positioned Verticals with Attractive Two- Payments Provider for Growth Strong Tailwinds Sided Network ✓ Leading mid-tier SMB ✓ Solid footprint in ✓ Powerful network effects ✓ Re-accelerating top-line acquirer entertainment verticals ✓ Premie
Slide 14: Appendix
Appendix
Slide 15: Supplemental: summary of segment results
Supplemental: summary of segment results 2022 2023 Q1 Q2 Q3 Q4 FY2022 Q1 Volume ($m) Merchant Solutions $ 25,862 $ 28,392 $ 27,826 $ 28,000 $ 110,080 $ 28,571 Digital Wallets 5,444 5,095 4,786 5,278 20,603 5,443 Intersegment (137) (126) (117) (161) (541) (196) Total $ 31,169 $ 33,361 $ 32,495 $ 33,1
Slide 16: 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 17: Reconciliation of GAAP Net loss to Adj. EBITDA
Reconciliation of GAAP Net loss to Adj. EBITDA 17
Slide 18: Reconciliation of GAAP Net loss to Adj. net income
Reconciliation of GAAP Net loss to Adj. net income (1): Other non operating income, net primarily consists of income and expenses outside of the Company's operating activities, including, fair value gain / loss on warrant liabilities and loss on contingent consideration and gain / loss on foreign ex
Slide 19: Reconciliation of Operating Cash Flow to Free Cash Flow
Reconciliation of Operating Cash Flow to Free Cash Flow 19
Slide 20: Reconciliation of GAAP Gross Profit to Gross Profit (excl. D&A)
Reconciliation of GAAP Gross Profit to Gross Profit (excl. D&A) (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. 20
Slide 21: Adjusted Net Income per Share
Adjusted Net Income per Share (1): The denominator used in the calculation of diluted adjusted net income per share has been adjusted to include the dilutive effect of the Company's restricted stock units. 21
Slide 22: Supplemental: Adj. EBITDA to Adj. Net Income reconciliation
Supplemental: Adj. EBITDA to Adj. Net Income reconciliation Three Months Ended ($ in thousands) March 31, 2023 2022 Adjusted EBITDA $ 107,815 $ 103,967 Depreciation and amortisation(1) 29,874 21,157 Other operating (income) / expense, net (2) (1,783) 1,930 Interest expense, net 37,456 25,956 Adjuste
Slide 23: Thank you
Thank you