Paysafe Limited Reports Third Quarter 2024 Financial Results
Paysafe Limited (NYSE: PSFE) has announced its financial results for the third quarter of 2024.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change | Consensus Estimates |
|---|---|---|---|---|
| Revenue | $427.1M | $396.4M | +8% | $423.1M |
| EPS (GAAP Net Loss per Share) | ($0.21) | ($0.04) | Not favorable | $0.02 |
| Adjusted Net Income Per Share | $0.51 | $0.57 | -11% | Not provided |
| Adjusted EBITDA | $117.8M | $116.1M | +1% | Not provided |
Paysafe demonstrated a revenue increase of 8% year-over-year, slightly surpassing Wall Street's revenue expectations. However, the company reported a net loss of $13.0 million, a deeper loss than the same quarter last year, which was primarily due to foreign exchange losses and increased expenses.
Revenue Segment Performance
| Segment | Q3 2024 Revenue | Growth (YoY) |
|---|---|---|
| Merchant Solutions | Not detailed in exact figures | 11% |
| Digital Wallets | Not detailed in exact figures | 4% |
The Merchant Solutions segment showed robust growth of 11%, driven by e-commerce and SMB initiatives, while Digital Wallets experienced a steady increase of 4%, maintained by ongoing product enhancements and merchant growth.
Key Developments and Operational Highlights
- Appointment of John Crawford as Chief Financial Officer, enhancing financial leadership.
- Progress in 2024 initiatives, with the hiring of 170 new sales team members.
- Double-digit growth in eCommerce, particularly within the iGaming sector in North America.
- Establishment of a partnership with Revolut for UK cash deposit solutions with expansion plans in the EEA.
Executive Commentary
CEO Bruce Lowthers expressed satisfaction with the consistent revenue growth and strategic execution, reinforcing the company's commitment to enhancing sustainable revenue and reducing net leverage. He reaffirmed Paysafe's full-year 2024 financial outlook, expressing confidence in the company's direction for 2025 and beyond.
Forward Guidance
Paysafe reaffirmed its full-year 2024 financial outlook, underscoring confidence in maintaining its growth momentum into the next fiscal year.
Stock Price Movement
Following the earnings release, Paysafe's stock price experienced a slight decline of approximately 0.97%.
In summary, Paysafe exhibited strong revenue growth in Q3 2024, driven by strategic investments and expansion in key segments. The company faces challenges with net losses but remains optimistic about future growth potentials, buoyed by leadership changes and new partnerships.
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