Paysafe Reports Fourth Quarter and Full Year 2024 Results

LONDON--(BUSINESS WIRE)--March 04, 2025-- 

Paysafe Limited ("Paysafe" or the "Company") $(PSFE)$, a leading payments platform, today announced its financial results for the fourth quarter and full year of 2024.

The Company also announced that on February 28, Paysafe closed on its previously announced agreement to sell its direct marketing payment processing business line ("the disposed business"). For additional information, please see the Company's press release on February 11, along with the supplemental materials to this earnings release, available on the investor relations section of Paysafe's website.

Fourth Quarter 2024 Financial Highlights

(Metrics compared to fourth quarter of 2023, unless otherwise noted)

   -- Revenue of $420.1 million, increased 1%; increased 2% on a constant 
      currency basis 
 
   -- Total Payment Volume of $40.0 billion, increased 12% 
 
   -- Net income of $33.5 million, or $0.54 per diluted share, compared to net 
      loss of $12.1 million, or ($0.20) per diluted share 
 
   -- Adjusted net income of $29.6 million, or $0.48 per diluted share, 
      compared to $40.9 million, or $0.66 per diluted share 
 
   -- Adjusted EBITDA of $103.3 million, decreased 15%; decreased 14% on a 
      constant currency basis 
 
   -- Net leverage1 decreased to 4.7x as of December 31, 2024, compared to 5.0x 
      as of December 31, 2023 

Full Year 2024 Financial Highlights

(Metrics compared to full year of 2023)

   -- Revenue of $1,704.8 million, increased 6%; increased 6% on a constant 
      currency basis 
 
   -- Total Payment Volume of $151.7 billion, increased 8% 
 
   -- Net income of $22.2 million, or $0.36 per diluted share, compared to net 
      loss of $20.3 million, or ($0.33) per diluted share 
 
   -- Adjusted net income of $132.5 million, or $2.14 per diluted share, 
      compared to $143.9 million, or $2.33 per diluted share 
 
   -- Adjusted EBITDA of $452.1 million, decreased 1%; decreased 1% on a 
      constant currency basis 

Bruce Lowthers, CEO of Paysafe, commented: "We've made incredible progress, delivering on our priorities and executing our three-year growth plan. By transforming our business and focusing on the biggest opportunities in the experience economy, we're positioning Paysafe for long-term, sustainable growth. In 2025 our mission is clear: drive revenue through product innovation, improve sales efficiency, create new partnerships, and scale for better customer and employee experiences. With our foundational turnaround now behind us we are looking forward to our third year of organic revenue growth."

 
(1)    Paysafe defines net leverage as net debt (total debt less cash and cash 
       equivalents) divided by the sum of the last twelve months $(LTM)$ 
       Adjusted EBITDA. For the period ended December 31, 2024, total debt was 
       $2,363.5 million and cash and cash equivalents was $216.7 million, and 
       LTM Adjusted EBITDA was $452.1 million. For the period ended December 
       31, 2023, total debt was $2,501.8 million and cash and cash equivalents 
       was $202.3 million, and LTM Adjusted EBITDA was $458.7 million. 
 

Full Year 2025 Financial Guidance

 
($ in millions) (unaudited)    Full Year 2025 
                               --------------- 
Revenue                        $1,710 - $1,734 
Adjusted EBITDA                  $463 - $478 
Adjusted EPS                    $2.21 - $2.51 
 

Paysafe's 2025 outlook reflects reported revenue growth in the range of 0% to 2%, which includes the impact of the disposed business as well as a modest headwind from currency and interest revenue. Paysafe's outlook reflects organic revenue growth in the range of 6.5% to 8.0% and Adjusted EBITDA margin in the range of 27.1% to 27.6%, with Adjusted EBITDA growth in the mid-teens. Paysafe continues to expect to generate strong free cash flow and to reduce leverage, including the Company's goal to achieve 3.5x net leverage by the end of 2026.

Fourth Quarter and Full Year 2024 Summary of Consolidated Results

 
                           Three Months Ended         Year Ended 
                              December 31,           December 31, 
                           ------------------   ---------------------- 
($ in thousands) 
(unaudited)                  2024      2023        2024        2023 
                           --------  --------   ----------  ---------- 
Revenue                    $420,070  $414,541   $1,704,835  $1,601,138 
Gross Profit (excluding 
 depreciation and 
 amortization)             $236,605  $240,959   $  989,073  $  937,926 
Net income / (loss)        $ 33,511  $(12,129)  $   22,160  $  (20,251) 
 
Adjusted EBITDA            $103,345  $121,741   $  452,054  $  458,663 
Adjusted net income        $ 29,563  $ 40,862   $  132,520  $  143,888 
 

Fourth Quarter 2024 Results

Paysafe's financial results were significantly impacted by accelerated merchant exits and associated credit losses during the fourth quarter, reflecting the Company's strategic decision to reduce its exposure to direct marketing, a business line within the SMB portfolio of the Merchant Solutions segment. This had an unfavorable impact to fourth quarter reported revenue growth for total Paysafe and the Merchant Solutions segment of approximately 3 percentage-points and 5 percentage-points, respectively.

Total revenue for the fourth quarter of 2024 was $420.1 million, an increase of 1%, compared to $414.5 million in the prior year period. Excluding a $1.8 million headwind from movement in foreign exchange rates, revenue increased 2%. Revenue from the Merchant Solutions segment increased 1%, reflecting double-digit growth in e-commerce as well as modest growth from SMBs, largely offset by a $10.7 million headwind from the disposed business. Revenue from the Digital Wallets segment increased 2% as reported, or 3% on a constant currency basis, supported by product initiatives, which more than offset lower revenue from interest on consumer deposits.

Net income for the fourth quarter of 2024 increased to $33.5 million, compared to a net loss of $12.1 million in the prior year period, reflecting an increase in other income due to a gain on foreign exchange, as well as an income tax benefit of $17.7 million, compared to an income tax expense of $13.4 million in the prior year period, which more than offset a decrease in operating income.

Adjusted net income for the fourth quarter of 2024 decreased to $29.6 million, compared to $40.9 million in the prior year period, largely attributable to the same factors that contributed to the decline in Adjusted EBITDA, partly offset by a decrease in interest expense.

Adjusted EBITDA for the fourth quarter of 2024 was $103.3 million, a decrease of 15%, compared to $121.7 million in the prior year period, largely reflecting the increase in credit losses as described above. Credit losses were $22.7 million in the fourth quarter of 2024, an increase of $15.2 million compared to the prior year period.

The combined headwinds from movements in foreign exchange rates and interest on consumer deposits to fourth quarter revenue and Adjusted EBITDA were $5.2 million and $4.4 million, respectively.

Operating cash flow for the fourth quarter of 2024 was $58.9 million, compared to $61.6 million in the prior year period. Unlevered free cash flow was $70.5 million, compared to $89.6 million in the prior year period.

Full Year 2024 Results

Total revenue for the full year 2024 was $1,704.8 million, an increase of 6% on a reported and constant currency basis, compared to $1,601.1 million in 2023. Revenue from the Merchant Solutions segment increased 9%, including a 1 percentage-point unfavorable impact from the disposed business. Revenue from the Digital Wallets segment increased 4%.

Net income for the full year 2024 increased to $22.2 million, compared to a net loss of $20.3 million in 2023, largely driven by an income tax benefit of $8.1 million, compared to an expense of $40.8 million for 2023, as well as a decrease in interest expense, which was $140.8 million, compared to $151.1 million in 2023, and an increase in other income. This was partially offset by a decline in operating income.

Adjusted net income for the full year 2024 decreased 8% to $132.5 million, compared to $143.9 million in 2023. The decrease in adjusted net income was largely attributable to the same factors that contributed to the decline in Adjusted EBITDA, partly offset by a decrease in interest expense.

Adjusted EBITDA for the full year 2024 was $452.1 million, a decrease of 1%, compared to $458.7 million in 2023, reflecting the impacts from the disposed business and credit losses as described above, which were $46.4 million in 2024, an increase of $25.3 million compared to 2023 credit losses. Additionally, Paysafe made investments in 2024 totaling approximately $29 million to expand its sales capabilities and optimize the portfolio, which drove an increase in selling, general and administrative expenses.

The combined headwinds from movements in foreign exchange rates and interest on consumer deposits to full year revenue and Adjusted EBITDA were approximately $5.9 million and $6.8 million, respectively.

Operating cash flow for full year 2024 increased to $253.8 million, compared to $234.0 million in the prior year. Unlevered free cash flow decreased to $299.6 million, compared to $318.3 million in the prior year.

Balance Sheet

As of December 31, 2024, total cash and cash equivalents were $216.7 million, total debt was $2.4 billion and net debt was $2.1 billion. Compared to December 31, 2023, total debt decreased by $138.3 million, reflecting net repayments of $58.3 million as well as movement in foreign exchange rates.

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March 04, 2025 06:55 ET (11:55 GMT)