Slide 1: First Quarter 2022 Earnings Presentation
First Quarter 2022 Earnings Presentation May 11, 2022
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 Q1 results ahead of guidance; Winning across Digital Strong growth from confident in FY despite FX and Commerce; continued US Acquiring Russia/Ukraine headwinds progress in Digital Wallet Volume(1) Revenue Adj. EBITDA(2) $31.2 bn $367.7 m $104.0 m +13% YoY -3% YoY (flat cc) -8% YoY (-5%
Slide 4: Winning across Digital Commerce
Winning across Digital Commerce Exciting wins with new Progressing our embedded iGaming progress and existing clients finance partnerships beyond North America • Go live with Bitpanda (card processing) • Q1 launch of embedded finance (white • Extending collaboration with Playtech label wallet) solut
Slide 5: Leading in North America iGaming
Leading in North America iGaming Leading and up-and-coming brands come to Paysafe for the full suite of traditional and alternative payments Successful launch in Ontario • Paysafe is live with 10 operators • Delivering full stack of processing and local APMs; live with multiple Paysafe processes ~10
Slide 6: Headwinds Short-Term Actions to Reposition
Delivering on Digital Wallet turnaround; continued Eur market softness What we said… …early progress ✓ Pricing optimization + improved UX driving increasing deposits in targeted • Improvements to customer experience and pricing changes Short-Term European markets (deposits up 14% from Sept to Mar) •
Slide 7: Cost savings and M&A integrations on track
Cost savings and M&A integrations on track Cost optimization M&A integrations • Incremental $20m+ 2022 savings through banking • Closed SafetyPay Jan 31, 2022 efficiencies and optimization of shared services/support functions • SafetyPay and PagoEfectivo rolling out in LatAm with European iGaming cl
Slide 8: Q1 performance exceeded guidance
Q1 performance exceeded guidance Q1 2022 $millions Guidance Actual Revenue $355 – $365 ✓ $368 Adj. EBITDA $95 – $100 ✓ $104 8
Slide 9: Q1 financial highlights
Q1 financial highlights Volume(1) ($bn) Revenue ($m) • Volume. Growth led by US Acquiring +13% -3% Flat cc − Regulatory headwinds in Europe impacting Digital $31.2 $27.5 $377.4 $367.7 Commerce − Tough comparable YoY for eCash; offset by contribution from recent acquisitions • Revenue. Revenue flat Y
Slide 10: Q1 summary of consolidated results
Q1 summary of consolidated results $ in millions Q1'21 Q1'22 Change Net loss reflects $1.2 bn non-cash impairment of goodwill due to the (3%) Revenue $377.4 $367.7 sustained decline in PSFE stock price flat cc and market capitalization as well as Gross Profit (excluding D&A) $226.4 $220.6 (3%) curre
Slide 11: Paysafe total take rate stable sequentially; YoY reflects business mix
Paysafe total take rate stable sequentially; YoY reflects business mix 2.0% 2.2 Digital Commerce take rate 1.9% 1.8% 1.9% 2.0 1.8% 1.8 1.6 1.4% Paysafe total take rate 1.4 1.2% 1.1% 1.2% 1.2% 1.2 0.9% US Acquiring take rate 0.8% 0.9% 1.0 0.8% 0.8% 0.8 0.6 $Bn $32.3 $31.1 $31.5 $31.2 $27.5 0.4 US Acq
Slide 12: Digital Commerce
Digital Commerce Volume(1) ($bn) Revenue ($m) Adj. EBITDA ($m) +2% -11% -6% cc $11.1 $11.3 $224.1 -17% $198.5 $91.5 $75.8 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 2.0% 1.8% 40.8% 38.2% take rate margin • Performance largely inline with expectations with additional currency headwind and reflec
Slide 13: US Acquiring
US Acquiring Volume ($bn) Revenue ($m) Adj. EBITDA ($m) +21% +10% $19.8 +20% $16.4 $169.1 $153.3 $47.2 $39.3 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 0.94% 0.85% 25.6% 27.9% take rate margin • Strong volume despite Omicron-related softness in January; comparison to prior year reflects higher
Slide 14: Leverage summary
Leverage summary Liquidity summary ($m) 3/31/22 • Maintaining significant covenant headroom Cash and cash equivalents $258 • New 4-year amortizing interest rate swap put in (1) Undrawn amounts under revolving credit facility $285 place, initially hedging $400m of USD Term Loan B • Continued commitme
Slide 15: Maintaining 2022 guidance
Maintaining 2022 guidance FY 2022 expectations • US Acquiring: high single-digit to low double-digit growth FY 2022 Q2 2022 • Digital Commerce: flat to low single-digit growth $millions Guidance Guidance Inorganic contribution (PagoEfectivo, SafetyPay, viafintech) Integrated & eCommerce (e.g., NA iG
Slide 16: Appendix
Paysafe: Appendix
Slide 17: Digital Commerce revenue disaggregation
Digital Commerce revenue disaggregation % of YoY % change $m Q1 Revenue Total Revenue Reported CC Active Users eCash $ 101 51% -10% -4% 16.8m Digital Wallet 82 41% -13% -8% 2.8m Integrated & eCommerce 23 12% -2% -1% Intrasegment (8) Total Digital Commerce $ 199 100% -11% -6% CC = constant currency A
Slide 18: Supplemental: summary of segment results
Supplemental: summary of segment results 2021 2022 Q1 Q2 Q3 Q4 FY 2021 Q1 Volume ($m) US Acquiring $ 16,398 $ 20,507 $ 20,685 $ 20,439 $ 78,028 $ 19,849 Digital Commerce 11,114 11,786 10,374 11,050 44,325 11,320 Total $ 27,512 $ 32,292 $ 31,060 $ 31,489 $ 122,353 $ 31,169 Take Rate US Acquiring 0.9%
Slide 19: 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 20: GAAP Net loss to Adjusted EBITDA reconciliation
GAAP Net loss to Adjusted EBITDA reconciliation Three months ended March 31, ($ in thousands) 2022 2021 Net loss $ (1,170,812) $ (60,529) Income tax benefit (43,414) (5,936) Interest expense, net 25,956 62,369 Depreciation and amortization 63,423 65,462 Share based compensation expense 13,970 80,841
Slide 21: Operating Cash Flow to Free Cash Flow reconciliation (LTM)
Operating Cash Flow to Free Cash Flow reconciliation (LTM) LTM Q1 2022 LTM Q1 2021 ($ in thousands) Net cash inflows from operating activities $ 679,576 $ 446,270 Capital expenditure (89,076) (66,370) Cash paid for interest 69,446 152,940 Payments relating to restructuring and other costs 30,421 16,
Slide 22: Operating Cash Flow to Free Cash Flow reconciliation
Operating Cash Flow to Free Cash Flow reconciliation Three months ended March 31, ($ in thousands) 2022 2021 Net cash inflows from operating activities $ 503,848 $ 48,740 Capital expenditure (20,639) (15,406) Cash paid for interest 14,754 36,853 Payments relating to restructuring and other costs 12,
Slide 23: GAAP Gross Profit to Gross Profit (excl. D&A) reconciliation
GAAP Gross Profit to Gross Profit (excl. D&A) reconciliation Three months ended March 31, ($ in thousands) 2022 2021 Revenue $ 367,668 $ 377,424 Cost of services (excluding depreciation and amortization) 147,103 151,037 Depreciation and amortization 63,423 65,462 Gross Profit (1) $ 157,142 $ 160,925
Slide 24: Plug into PaySafe
Plug into PaySafe: