Slide 1: Third Quarter 2023 Earnings
Third Quarter 2023 Earnings NOVEMBER 14, 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 Volume Revenue Adj. EBITDA Adj. Net Income Net Leverage $35bn $396m $116m $35m 5.1x +8% YoY +8% YoY; 5% cc1 29.3% margin (+320 bps) Adj. EPS $0.57; +19% YoY versus 5.8x Dec-22 • Growth across all key metrics including 5th consecutive quarter of reported YoY revenue growth • Revenue increased
Slide 4: Continued delivery on our focus areas (Q3 highlights)
Continued delivery on our focus areas (Q3 highlights) Sales Customer Product Transformation Experience Innovation Accelerating total revenue growth Merchant: Expediting onboarding Broadening our wallet platform's capabilities +7% 10 Days On track for Q4 initial launch • Single onboarding 2023 YTD re
Slide 5: Building the sales engine
Building the sales engine Transforming our sales function to drive new customer wins and cross-selling across historically siloed businesses and products Q3 Enterprise Wins by Vertical 9% Select Q3 deal 22% ~45 36% Enterprise highlights Wins 33% iGaming & Video Gaming FinTech Services Travel, Leisur
Slide 6: North America iGaming
North America iGaming Enabling all the ways consumers want to pay through a single API • High growth vertical (~2.5% of total revenue); >50% YoY Q3 processing growth • NFL weekly volume growth averaging +35% YoY • Live in 30 U.S. states / territories • Launched in Puerto Rico and Kentucky Q3 and Mai
Slide 7: Classic Digital Wallets
Classic Digital Wallets Continued growth in TPA and ARPU across a stable active user base Average Transactions per Active User (TPA) TPA based on 3-month active users +40% 31 27 28 26 +17% 22 0.9m Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 3-month active users1 (stable for last 5 quarters) Average Revenue per Us
Slide 8: 2023: Driving to higher growth
8 2023: Driving to higher growth Initial focus was on highest value product lines (e-comm and digital wallet) Revenue Growth (nominal, YoY) Total Revenue Growth SMB (ISO) 11% 10% Focus areas for next phase 7% 8% SMB (Direct) 4% • (1%) decline 2023 YTD 1% • Focused on driving higher margin 2021 2022
Slide 9: Driving to higher growth (continued)
Driving to higher growth (continued) Actions Taken 2024 Plans Digital Wallet SMB (Direct) • Improved usability • Expand product offerings and modernize onboarding portal • Launching new products (Paysafe Business Wallet) • Focus on ideal clients, moving up market (more inline with • Leveraging walle
Slide 10: Q3 2023 Financial Results
Q3 2023 Financial Results 10
Slide 11: Q3 financial highlights
11 Q3 financial highlights Volume1 ($bn) Revenue ($m) Adj. EBITDA3 ($m) LTM FCF3 ($m) Adj. Net Income3,4 ($m) +8% +8% +22% +5% cc2 +18% cc2 +39% +21% $35.1 $361.8 $32.5 $116.1 $396.4 $259.4 366.0 $35.3 $95.5 $29.2 1.1% 1.1% 26.1% 29.3% 0.48 $0.57 take rate take rate margin margin Adj. EPS Adj. EPS Q
Slide 12: Merchant Solutions
Merchant Solutions Volume ($bn) Revenue ($m) Adj. EBITDA ($m) • Growth led by double-digit growth from e-comm +7% +6% +26% • Adj. EBITDA margin expansion reflects operational $216.8 improvement and easier $29.6 $57.5 comparison to prior year, $27.8 $203.7 including lower credit losses $45.6 0.73% 0.
Slide 13: Digital Wallets
Digital Wallets Volume11 ($bn) Volume ($bn) Revenue 2 ($m) Revenue ($m) Adj. EBITDA Adj. EBITDA($m) 2 ($m) • Growth driven by classic +12% +17% digital wallets with progress +18% 5% cc2 +7% cc2 across initiatives, including new products, and further $5.6 supported by interest revenue $4.8 $182.9 • 5
Slide 14: Reducing leverage and disciplined capital allocation
Continued focus on reducing leverage and disciplined capital allocation to promote growth and shareholder value Liquidity position ($m) 9/30/23 Drive mid-term Committed RCF(1) $305 Organic Growth HSD to LDD Amounts drawn (50) Investment Cash and cash equivalents 226 organic growth Total $481 Optimiz
Slide 15: Reaffirming 2023 FY guidance
15 Reaffirming 2023 FY guidance 2023 FY Guidance $millions (no change) Revenue $1,595 – $1,608 • Estimated year-end net leverage ~5.0x Year-over-year growth 6.5% to 7.5% • Approximate FX sensitivity: 1% EUR weakening versus USD impacts annual revenue by ($7m) and Adj. EBITDA by ($2m) Adj. EBITDA $45
Slide 16: Closing
Closing Recent awards and recognition Delivering stronger growth in 2023 (+7% 3Q YTD) while expanding margins (+120 bps 3Q YTD) and reducing leverage Focused on the next phase of our turnaround and delivering on our long-term product roadmap in 2024 Driving mid-term outlook of high single-digit to l
Slide 17: Appendix
Appendix
Slide 18: Other assumptions
18 Other assumptions $millions Assumptions for Adj. EPS (Q4 2023) • D&A excludes amortization of acquired intangibles Interest expense, net $35 – $37 • Other operating income excludes the impact of other non-operating income and expense such as fair value gains and losses Depreciation and amortizati
Slide 19: Continued focus on reducing leverage
Continued focus on reducing leverage Liquidity position ($m) 9/30/23 Committed RCF(1) $305 Amounts drawn (50) • $22m Q3 net repayments of debt; FX Cash and cash equivalents 226 movement decreased debt by ~$38m Total $481 % • Avg. interest rate (incl. interest rate Facility (as of 9/30/23) ($m) total
Slide 20: Supplemental: summary of segment results
Supplemental: summary of segment results 2022 2023 Q1 Q2 Q3 Q4 FY2022 Q1 Q2 Q3 Volume ($m) Merchant Solutions $ 25,862 $ 28,392 $ 27,826 $ 28,000 $ 110,080 $ 28,571 $ 30,301 $ 29,644 Digital Wallets 5,444 5,095 4,786 5,278 20,603 5,443 5,394 5,645 Intersegment (137) (126) (117) (161) (541) (196) (22
Slide 21: 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 22: 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) 2023 2022 2023 2022 Revenue $ 396,410 $ 365,988 $ 1,186,597 $ 1,112,569 Cost of services (excluding depreciation and amortization) 164,077 151,810 489,630
Slide 23: Reconciliation of GAAP Net income (loss) to Adj. EBITDA
Reconciliation of GAAP Net income (loss) to Adj. EBITDA Three Months Ended Nine Months Ended September 30, September 30, ($ in thousands) 2023 2022 2023 2022 Net (loss) / income $ (2,549) $ 978 $ (8,122) $ (1,828,573) Income tax expense / (benefit) 17,018 7,283 27,442 (52,749) Interest expense, net
Slide 24: Supplemental: Adj. EBITDA to Adj. Net Income reconciliation
Supplemental: Adj. EBITDA to Adj. Net Income reconciliation Three months ended September 30, ($ in thousands) 2023 2022 Adj. EBITDA $ 116,076 $ 95,470 Depreciation and amortisation (1) 32,980 24,609 Other operating (income) / expense, net (2) (2,387) 1,572 Interest expense, net 38,421 34,631 Adjuste
Slide 25: 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) 2023 2022 2023 2022 Net (loss) / income attributable to the Company $ (2,549) $ 978 $ (8,122) $ (1,828,944) Other non-operating income, net (1) (7,274) (39,80
Slide 26: Adjusted Net Income per Share
Adjusted Net Income per Share Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Numerator ($ in thousands) Adjusted net income attributable to the Company - basic $ 35,272 $ 29,152 $ 103,026 $ 103,954 Adjusted net income attributable to the Company - diluted $ 35,2
Slide 27: Reconciliation of Operating Cash Flow to Free Cash Flow
Reconciliation of Operating Cash Flow to Free Cash Flow Three Months Ended Nine Months Ended September 30, September 30, ($ in thousands) 2023 2022 2023 2022 Net cash (outflows) / inflows from operating activities $ (2,483) $ (6,228) $ (355,368) $ 1,373,219 Capital Expenditure (25,696) (24,962) (81,
Slide 28: Thank you
Thank you