LONDON–(BUSINESS WIRE)–Paysafe Limited (“Paysafe” or the “Company”) (NYSE: PSFE), a leading payments platform, today announced its financial results for the third quarter of 2023.
Third Quarter 2023 Financial Highlights
(Metrics compared to third quarter of 2022)
- Revenue of $396.4 million, increased 8%; increased 5% on a constant currency basis
- Total Payment Volume of $35.1 billion1, increased 8%
- Net loss attributable to the Company of $2.5 million, or ($0.04) per diluted share, compared to $1.0 million net income attributable to the Company, or $0.02 per diluted share
- Adjusted net income of $35.3 million, or $0.57 per diluted share, compared to $29.2 million, or $0.48 per diluted share
- Adjusted EBITDA of $116.1 million, increased 22%; increased 18% on a constant currency basis
- Net leverage2 decreased to 5.1x as of September 30, 2023, compared to 5.8x as of December 31, 2022
Bruce Lowthers, CEO of Paysafe, commented: “Paysafe has continued to build momentum through the third quarter led by double-digit growth from our e-commerce solutions and classic digital wallets. Overall, our third quarter results reflect 8% year-over-year revenue growth, 22% Adjusted EBITDA growth and accelerated leverage reduction. These results reaffirm that the execution of our playbook is working and providing the foundation for us to deliver on our strategic initiatives and commitment to achieving our mid-term growth targets. I want to thank our extraordinary team for all their hard work as we continue to realign Paysafe in its pursuit of operational excellence.”
Strategic and Operational Highlights
- Announced that Paysafe’s Board has authorized a $50 million share repurchase program
- Delivered fifth consecutive year-over-year quarterly revenue growth
- Continued to progress Paysafe’s sales transformation, fueling growth in enterprise-level bookings
- Advanced Paysafe’s priorities across client experience and product innovation, including continued improvement to branded wallet portfolio, enhancing customer journey and merchant checkout experience, as well as leveraging our wallet platform to drive value, scale and expanded use cases
- Announced a new partnership with Fanatics Betting and Gaming to offer its customers traditional card payments alongside a full suite of alternative payment methods
- Won ‘Best Digital Wallet’ and highly acclaimed for ‘Best Payments led Financial Inclusion Initiative’ by The Digital Banker’s Global Payments Innovation Awards 2023
- Recognized by CNBC’s list of the World’s Top FinTech Companies (Digital Payments)
- Won 2023 ‘Payment Provider of the Year’ by Gambling.com and the American Gambling Awards
|
(1) |
|
Excludes embedded wallet related volumes of $3.9 billion and $10.4 billion in the third quarter of 2023 and 2022, respectively. |
|
(2) |
|
Paysafe defines net leverage as the calculation of net debt (total debt less cash and cash equivalents) divided by the sum of the last twelve months (LTM) of Adjusted EBITDA. For the period ending September 30, 2023, total debt was $2,514.7 million and cash and cash equivalents was $226.5 million, and LTM Adjusted EBITDA was $444.5 million, respectively. For the period ending December 31, 2022, total debt was $2,643.5 million and cash and equivalents was $260.2 million, and LTM Adjusted EBITDA was $410.0 million, respectively. |
Third Quarter of 2023 Summary of Consolidated Results
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
September 30, |
|
|
September 30, |
|
||||||||||
|
($ in thousands) (unaudited) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
|
Revenue |
|
$ |
396,410 |
|
|
$ |
365,988 |
|
|
$ |
1,186,597 |
|
|
$ |
1,112,569 |
|
|
Gross Profit (excluding depreciation and amortization) |
|
$ |
232,333 |
|
|
$ |
214,178 |
|
|
$ |
696,967 |
|
|
$ |
654,669 |
|
|
Net (loss) / income attributable to the Company |
|
$ |
(2,549 |
) |
|
$ |
978 |
|
|
$ |
(8,122 |
) |
|
$ |
(1,828,944 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Adjusted EBITDA |
|
$ |
116,076 |
|
|
$ |
95,470 |
|
|
$ |
336,922 |
|
|
$ |
302,390 |
|
|
Adjusted EBITDA margin |
|
|
29.3 |
% |
|
|
26.1 |
% |
|
|
28.4 |
% |
|
|
27.2 |
% |
|
Adjusted net income attributable to the Company |
|
$ |
35,272 |
|
|
$ |
29,152 |
|
|
$ |
103,026 |
|
|
$ |
103,954 |
|
Total revenue for the third quarter of 2023 was $396.4 million, an increase of 8%, compared to $366.0 million in the prior year period, reflecting 8% growth in total payment volume. Excluding an $11.9 million favorable impact from changes in foreign exchange rates, total revenue increased 5%. Revenue from the Merchant Solutions segment increased 6%, led by double-digit growth from e-commerce solutions. Revenue from the Digital Wallets segment increased 12% on a reported basis and 5% on a constant currency basis, as a decline from eCash solutions was more than offset by double-digit growth from classic digital wallets, partly reflecting the Company’s initiatives to increase consumer engagement and merchant checkout conversion rates. Growth from the Digital Wallets segment was also supported by new product features and interest revenue on consumer deposits.
Net loss attributable to the Company for the third quarter was $2.5 million, compared to net income of $1.0 million in the prior year period. The decrease in net income reflects an increase in operating income, which was offset by a reduction in other income as a result of foreign exchange and fair value adjustments.
Adjusted net income for the third quarter increased 21% to $35.3 million, compared to $29.2 million in the prior year period as strong growth in Adjusted EBITDA more than offset higher expenses related to depreciation and amortization, interest and taxes.
Adjusted EBITDA for the third quarter was $116.1 million, an increase of 22%, compared to $95.5 million in the prior year period. Excluding a $3.4 million favorable impact from changes in foreign exchange rates, Adjusted EBITDA increased 18% compared to the prior year period. Adjusted EBITDA margin for the third quarter increased 320 basis points to 29.3%, compared to 26.1% in the prior year period, reflecting lower credit losses and operating leverage.
Third quarter net cash used in operating activities was $2.5 million, compared to $6.2 million in the prior year period, mainly reflecting the timing of working capital, as well as settlement of funds payable and amounts due to customers. Free cash flow was $105.3 million, compared to $106.5 million in the prior year period, which includes the movement in customer accounts and other restricted cash which was an increase of $99.8 million in the third quarter of 2023, compared to an increase of $110.0 million in the prior year period.
Balance Sheet
As of September 30, 2023, total cash and cash equivalents were $226.5 million, total debt was $2.5 billion and net debt was $2.3 billion. Compared to June 30, 2023, total debt decreased by $61.0 million, reflecting net repayments of $22 million as well as movement in foreign exchange rates.
Summary of Segment Results
|
|
|
Three Months Ended |
|
|
|
|
|
Nine Months Ended |
|
|
|
|
||||||||||||
|
|
|
September 30, |
|
|
YoY |
|
|
September 30, |
|
|
YoY |
|
||||||||||||
|
($ in thousands) (unaudited) |
|
2023 |
|
|
2022 |
|
|
change |
|
|
2023 |
|
|
2022 |
|
|
change |
|
||||||
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Merchant Solutions |
|
$ |
216,847 |
|
|
$ |
203,733 |
|
|
|
6 |
% |
|
$ |
651,066 |
|
|
$ |
608,848 |
|
|
|
7 |
% |
|
Digital Wallets |
|
$ |
182,855 |
|
|
$ |
162,992 |
|
|
|
12 |
% |
|
$ |
543,382 |
|
|
$ |
509,024 |
|
|
|
7 |
% |
|
Intersegment |
|
$ |
(3,292 |
) |
|
$ |
(737 |
) |
|
|
347 |
% |
|
$ |
(7,851 |
) |
|
$ |
(5,303 |
) |
|
|
48 |
% |
|
Total Revenue |
|
$ |
396,410 |
|
|
$ |
365,988 |
|
|
|
8 |
% |
|
$ |
1,186,597 |
|
|
$ |
1,112,569 |
|
|
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Merchant Solutions |
|
$ |
57,467 |
|
|
$ |
45,631 |
|
|
|
26 |
% |
|
$ |
165,572 |
|
|
$ |
149,282 |
|
|
|
11 |
% |
|
Digital Wallets |
|
$ |
79,930 |
|
|
$ |
68,142 |
|
|
|
17 |
% |
|
$ |
236,350 |
|
|
$ |
212,286 |
|
|
|
11 |
% |
|
Corporate |
|
$ |
(21,321 |
) |
|
$ |
(18,303 |
) |
|
|
-16 |
% |
|
$ |
(65,000 |
) |
|
$ |
(59,178 |
) |
|
|
-10 |
% |
|
Total Adjusted EBITDA |
|
$ |
116,076 |
|
|
$ |
95,470 |
|
|
|
22 |
% |
|
$ |
336,922 |
|
|
$ |
302,390 |
|
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Adjusted EBITDA margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Merchant Solutions |
|
|
26.5 |
% |
|
|
22.4 |
% |
|
410 bps |
|
|
|
25.4 |
% |
|
|
24.5 |
% |
|
90 bps |
|
||
|
Digital Wallets |
|
|
43.7 |
% |
|
|
41.8 |
% |
|
190 bps |
|
|
|
43.5 |
% |
|
|
41.7 |
% |
|
180 bps |
|
||
|
Total Adjusted EBITDA margin |
|
|
29.3 |
% |
|
|
26.1 |
% |
|
320 bps |
|
|
|
28.4 |
% |
|
|
27.2 |
% |
|
120 bps |
|
||
Full Year 2023 Financial Guidance
|
($ in millions) (unaudited) |
|
Full Year 2023 |
|
Revenue |
|
$1,595 – $1,608 |
|
Adjusted EBITDA |
|
$454 – $462 |
Share Repurchase Program
Paysafe also announced today that its Board of Directors has authorized the commencement of a share repurchase program. The share repurchase program authorizes the Company to purchase up to $50 million of Paysafe’s common stock.
“This buyback program reinforces the Board’s and management’s confidence in Paysafe,” said Alex Gersh, CFO of Paysafe. “With our healthy cash flow generation and consistent progress towards reducing our net leverage ratio over the last several quarters, we believe now is the appropriate time to include share repurchases as part of our capital allocation strategy. We continue to expect the majority of our excess cash flow to be committed to de-leveraging, while we also continue to invest in innovation to drive long-term growth.”
Under the Share Repurchase Program, management is authorized to purchase shares of our common stock from time to time through open market purchases or privately negotiated transactions at prevailing prices as permitted by securities laws and other legal requirements, and subject to market conditions and other factors. This program does not obligate the Company to acquire any particular amount of common stock and the program may be extended, modified, suspended or discontinued at any time at the Company’s discretion.
Webcast and Conference Call
Paysafe will host a live webcast to discuss the results today at 8:30 a.m. (ET). The webcast and supplemental information can be accessed on the investor relations section of the Paysafe website at ir.paysafe.com. An archive will be available after the conclusion of the live event and will remain available via the same link for one year.
|
Time |
Tuesday, November 14, 2023, at 8:30 a.m. ET |
|
|
Webcast |
Go to the Investor Relations section of the Paysafe website to listen and view slides |
|
|
Dial in |
877-407-3037 (U.S. toll-free); 215-268-9852 (International) |
About Paysafe
Paysafe Limited (“Paysafe”) (NYSE: PSFE) (PSFE.WS) is a leading payments platform with an extensive track record of serving merchants and consumers in the global entertainment sectors. Its core purpose is to enable businesses and consumers to connect and transact seamlessly through industry-leading capabilities in payment processing, digital wallet, and online cash solutions. With over 20 years of online payment experience, an annualized transactional volume of over $130 billion in 2022, and approximately 3,300 employees located in 12+ countries, Paysafe connects businesses and consumers across 100 payment types in over 40 currencies around the world. Delivered through an integrated platform, Paysafe solutions are geared toward mobile-initiated transactions, real-time analytics and the convergence between brick-and-mortar and online payments. Further information is available at www.paysafe.com.
Forward-looking Statements
This press release 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 provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Paysafe Limited’s (“Paysafe,” “PSFE” or the “Company”) actual results may differ from their expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “anticipate,” “appear,” “approximate,” “believe,” “budget,” “continue,” “could,” “estimate,” “expect,” “forecast,” “foresee,” “guidance,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “seek,” “should,” “would” and variations of such words and similar expressions (or the negative version of such words or expressions) may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, without limitation, Paysafe’s expectations with respect to future performance.
These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially, and potentially adversely, from those expressed or implied in the forward-looking statements. While the Company believes its assumptions concerning future events are reasonable, a number of factors could cause actual results to differ materially from those projected, including, but not limited to: cyberattacks and security vulnerabilities; complying with and changes in money laundering regulations, financial services regulations, cryptocurrency regulations, consumer and business privacy and data use regulations or other regulations in Bermuda, the UK, Ireland, Switzerland, the United States, Canada and elsewhere; risks related to our focus on specialized and high-risk verticals; geopolitical events and the economic and other impacts of such geopolitical events and the responses of governments around the world; acts of war and terrorism; the effects of global economic uncertainties, including inflationary pressure and rising interest rates, on consumer and business spending; risks associated with foreign currency exchange rate fluctuations; changes in our relationships with banks, payment card networks, issuers and financial institutions; risk related to processing online payments for merchants and customers engaged in the online gambling and foreign exchange trading sectors; risks related to becoming an unwitting party to fraud or be deemed to be handling proceeds of crimes being committed by customers; the effects of chargebacks, merchant insolvency and consumer deposit settlement risk; changes to our continued financial institution sponsorships; failure to hold, safeguard or account accurately for merchant or customer funds; risks related to the availability, integrity and security of internal and external IT transaction processing systems and services; our ability to manage regulatory and litigation risks, and the outcome of legal and regulatory proceedings; failure of third parties to comply with contractual obligations; changes and compliance with payment card network operating rules; substantial and increasingly intense competition worldwide in the global payments industry; risks related to developing and maintaining effective internal controls over financial reporting; managing our growth effectively, including growing our revenue pipeline; any difficulties maintaining a strong and trusted brand; keeping pace with rapid technological developments; risks associated with the significant influence of our principal shareholders; the effect of the COVID-19 pandemic on our business; and other factors included in the “Risk Factors” in our Form 20-F and in other filings we make with the SEC, which are available at https://www.sec.gov. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made.
The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in their expectations with respect thereto or any change in events.
Paysafe Limited Condensed Consolidated Balance Sheets (unaudited)
|
($ in thousands) |
|
September 30, 2023 |
|
|
December 31, 2022 |
|
||
|
Assets |
|
|
|
|
|
|
||
|
Current assets |
|
|
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
226,451 |
|
|
$ |
260,219 |
|
|
Customer accounts and other restricted cash |
|
|
1,291,662 |
|
|
|
1,866,976 |
|
|
Accounts receivable, net of allowance for credit losses of $5,496 and $10,558, respectively |
|
|
163,430 |
|
|
|
159,324 |
|
|
Settlement receivables, net of allowance for credit losses of $5,126 and $5,398, respectively |
|
|
140,273 |
|
|
|
147,774 |
|
|
Prepaid expenses and other current assets |
|
|
103,434 |
|
|
|
60,810 |
|
|
Total current assets |
|
|
1,925,250 |
|
|
|
2,495,103 |
|
|
Deferred tax assets |
|
|
104,538 |
|
|
|
104,538 |
|
|
Property, plant and equipment, net |
|
|
18,563 |
|
|
|
11,947 |
|
|
Operating lease right-of-use assets |
|
|
25,473 |
|
|
|
35,509 |
|
|
Derivative asset |
|
|
16,053 |
|
|
|
17,321 |
|
|
Intangible assets, net |
|
|
1,188,622 |
|
|
|
1,291,458 |
|
|
Goodwill |
|
|
1,990,603 |
|
|
|
1,999,132 |
|
|
Other assets – noncurrent |
|
|
4,271 |
|
|
|
2,048 |
|
|
Total assets |
|
$ |
5,273,373 |
|
|
$ |
5,957,056 |
|
|
|
|
|
|
|
|
|
||
|
Liabilities and equity |
|
|
|
|
|
|
||
|
Current liabilities |
|
|
|
|
|
|
||
|
Accounts payable and other liabilities |
|
$ |
225,003 |
|
|
$ |
241,529 |
|
|
Short-term debt |
|
|
10,190 |
|
|
|
10,190 |
|
|
Funds payable and amounts due to customers |
|
|
1,464,102 |
|
|
|
1,997,867 |
|
|
Operating lease liabilities – current |
|
|
8,625 |
|
|
|
7,953 |
|
|
Income taxes payable |
|
|
— |
|
|
|
11,325 |
|
|
Contingent and deferred consideration payable – current |
|
|
10,639 |
|
|
|
18,171 |
|
|
Liability for share-based compensation – current |
|
|
2,543 |
|
|
|
11,400 |
|
|
Total current liabilities |
|
|
1,721,102 |
|
|
|
2,298,435 |
|
|
Non-current debt |
|
|
2,504,498 |
|
|
|
2,633,269 |
|
|
Operating lease liabilities – non-current |
|
|
20,165 |
|
|
|
29,913 |
|
|
Deferred tax liabilities |
|
|
136,132 |
|
|
|
118,791 |
|
|
Warrant liabilities |
|
|
2,264 |
|
|
|
3,094 |
|
|
Liability for share-based compensation – non-current |
|
|
2,927 |
|
|
|
4,942 |
|
|
Contingent and deferred consideration payable – non-current |
|
|
8,378 |
|
|
|
8,975 |
|
|
Total liabilities |
|
|
4,395,466 |
|
|
|
5,097,419 |
|
|
Commitments and contingent liabilities |
|
|
|
|
|
|
||
|
Total shareholders’ equity |
|
|
877,907 |
|
|
|
859,637 |
|
|
Total liabilities and shareholders’ equity |
|
$ |
5,273,373 |
|
|
$ |
5,957,056 |
|
Paysafe Limited Condensed Consolidated Statements of Operations (unaudited)
|
|
|
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 |
|
|
|
457,900 |
|
|
Selling, general and administrative |
|
|
121,195 |
|
|
|
132,250 |
|
|
|
383,106 |
|
|
|
397,527 |
|
|
Depreciation and amortization |
|
|
67,074 |
|
|
|
66,088 |
|
|
|
197,046 |
|
|
|
199,096 |
|
|
Impairment expense on goodwill and intangible assets |
|
|
— |
|
|
|
4,036 |
|
|
|
275 |
|
|
|
1,886,223 |
|
|
Restructuring and other costs |
|
|
835 |
|
|
|
6,443 |
|
|
|
4,165 |
|
|
|
60,636 |
|
|
Loss on disposal of subsidiary and other assets, net |
|
|
— |
|
|
|
699 |
|
|
|
— |
|
|
|
1,359 |
|
|
Operating income / (loss) |
|
|
43,229 |
|
|
|
4,662 |
|
|
|
112,375 |
|
|
|
(1,890,172 |
) |
|
Other income, net |
|
|
9,661 |
|
|
|
38,230 |
|
|
|
19,584 |
|
|
|
97,863 |
|
|
Interest expense, net |
|
|
(38,421 |
) |
|
|
(34,631 |
) |
|
|
(112,639 |
) |
|
|
(89,013 |
) |
|
Income / (loss) before taxes |
|
|
14,469 |
|
|
|
8,261 |
|
|
|
19,320 |
|
|
|
(1,881,322 |
) |
|
Income tax expense / (benefit) |
|
|
17,018 |
|
|
|
7,283 |
|
|
|
27,442 |
|
|
|
(52,749 |
) |
|
Net (loss) / income |
|
$ |
(2,549 |
) |
|
$ |
978 |
|
|
$ |
(8,122 |
) |
|
$ |
(1,828,573 |
) |
|
Less: net income attributable to non-controlling interest |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
371 |
|
|
Net (loss) / income attributable to the Company |
|
$ |
(2,549 |
) |
|
$ |
978 |
|
|
$ |
(8,122 |
) |
|
$ |
(1,828,944 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net (loss) / income per share attributable to the Company – basic |
|
$ |
(0.04 |
) |
|
$ |
0.02 |
|
|
$ |
(0.13 |
) |
|
$ |
(30.24 |
) |
|
Net (loss) / income per share attributable to the Company – diluted |
|
$ |
(0.04 |
) |
|
$ |
0.02 |
|
|
$ |
(0.13 |
) |
|
$ |
(30.24 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net (loss) / income |
|
$ |
(2,549 |
) |
|
$ |
978 |
|
|
$ |
(8,122 |
) |
|
$ |
(1,828,573 |
) |
|
Other comprehensive (loss) / income , net of tax of $0: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
(Loss) / gain on foreign currency translation |
|
|
(8,853 |
) |
|
|
(33,532 |
) |
|
|
1,525 |
|
|
|
(55,660 |
) |
|
Total comprehensive loss |
|
$ |
(11,402 |
) |
|
$ |
(32,554 |
) |
|
$ |
(6,597 |
) |
|
$ |
(1,884,233 |
) |
|
Less: comprehensive income attributable to non-controlling interest |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
371 |
|
|
Total comprehensive loss attributable to the Company |
|
$ |
(11,402 |
) |
|
$ |
(32,554 |
) |
|
$ |
(6,597 |
) |
|
$ |
(1,884,604 |
) |
Paysafe Limited Consolidated Net (loss) / income per share attributable to the Company
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
September 30, |
|
|
September 30, |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
|
Numerator ($ in thousands) |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net (loss) / income attributable to the Company – basic |
$ |
(2,549 |
) |
|
$ |
978 |
|
|
$ |
(8,122 |
) |
|
$ |
(1,828,944 |
) |
|
Net (loss) / income attributable to the Company – diluted |
$ |
(2,549 |
) |
|
$ |
978 |
|
|
$ |
(8,122 |
) |
|
$ |
(1,828,944 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Denominator (in millions) |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Weighted average shares – basic |
|
61.6 |
|
|
|
60.6 |
|
|
|
61.3 |
|
|
|
60.5 |
|
|
Weighted average shares – diluted |
|
61.6 |
|
|
|
60.7 |
|
|
|
61.3 |
|
|
|
60.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net (loss) / income per share attributable to the Company |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Basic |
$ |
(0.04 |
) |
|
$ |
0.02 |
|
|
$ |
(0.13 |
) |
|
$ |
(30.24 |
) |
|
Diluted |
$ |
(0.04 |
) |
|
$ |
0.02 |
|
|
$ |
(0.13 |
) |
|
$ |
(30.24 |
) |
Paysafe Limited Condensed Consolidated Statements of Cash Flow (unaudited)
|
|
|
Nine Months Ended |
|
|||||
|
|
|
September 30, |
|
|||||
|
($ in thousands) |
|
2023 |
|
|
2022 |
|
||
|
Cash flows from operating activities |
|
|
|
|
|
|
||
|
Net loss |
|
$ |
(8,122 |
) |
|
$ |
(1,828,573 |
) |
|
Adjustments for non-cash items: |
|
|
|
|
|
|
||
|
Depreciation and amortization |
|
|
197,046 |
|
|
|
199,096 |
|
|
Unrealized foreign exchange loss / (gain) |
|
|
4,907 |
|
|
|
(49,319 |
) |
|
Deferred tax expense / (benefit) |
|
|
17,453 |
|
|
|
(64,165 |
) |
|
Interest expense, net |
|
|
5,392 |
|
|
|
25,393 |
|
|
Share-based compensation |
|
|
23,061 |
|
|
|
45,248 |
|
|
Other income, net |
|
|
(19,828 |
) |
|
|
(40,559 |
) |
|
Impairment expense on goodwill and intangible assets |
|
|
275 |
|
|
|
1,886,223 |
|
|
Allowance for credit losses and other |
|
|
13,857 |
|
|
|
24,792 |
|
|
Loss on disposal of subsidiary and other assets, net |
|
|
– |
|
|
|
1,359 |
|
|
Non-cash lease expense |
|
|
6,686 |
|
|
|
5,505 |
|
|
Movements in working capital: |
|
|
|
|
|
|
||
|
Accounts receivable, net |
|
|
(15,857 |
) |
|
|
(24,046 |
) |
|
Prepaid expenses, other current assets, and related party receivables |
|
|
(1,332 |
) |
|
|
(21,772 |
) |
|
Settlement receivables, net |
|
|
2,090 |
|
|
|
(10,581 |
) |
|
Accounts payable, other liabilities, and related party payables |
|
|
(26,623 |
) |
|
|
29,194 |
|
|
Funds payable and amounts due to customers |
|
|
(529,888 |
) |
|
|
1,210,744 |
|
|
Income tax payable and receivable |
|
|
(24,485 |
) |
|
|
(15,320 |
) |
|
Net cash flows (used in) / provided by operating activities |
|
|
(355,368 |
) |
|
|
1,373,219 |
|
|
Cash flows in investing activities |
|
|
|
|
|
|
||
|
Purchase of property, plant & equipment |
|
|
(12,129 |
) |
|
|
(2,637 |
) |
|
Purchase of merchant portfolios |
|
|
(26,749 |
) |
|
|
(38,347 |
) |
|
Purchase of other intangible assets |
|
|
(69,393 |
) |
|
|
(67,056 |
) |
|
Acquisition of business, net of cash acquired |
|
|
— |
|
|
|
(424,722 |
) |
|
Net cash outflow on disposal of subsidiary |
|
|
— |
|
|
|
(826 |
) |
|
Receipts under derivative financial instruments |
|
|
7,520 |
|
|
|
— |
|
|
Cash outflow for merchant reserves |
|
|
(24,400 |
) |
|
|
— |
|
|
Other investing activities, net |
|
|
(410 |
) |
|
|
— |
|
|
Net cash flows used in investing activities |
|
|
(125,561 |
) |
|
|
(533,588 |
) |
|
Cash flows from financing activities |
|
|
|
|
|
|
||
|
Cash settled equity awards |
|
|
(484 |
) |
|
|
(154 |
) |
|
Repurchases of shares withheld for taxes |
|
|
(7,857 |
) |
|
|
— |
|
|
Proceeds from exercise of warrants |
|
|
5 |
|
|
|
3 |
|
|
Repurchase of borrowings |
|
|
(124,344 |
) |
|
|
(31,365 |
) |
|
Proceeds from loans and borrowings |
|
|
90,138 |
|
|
|
86,246 |
|
|
Repayments of loans and borrowings |
|
|
(68,592 |
) |
|
|
(130,672 |
) |
|
Payments under derivative financial instruments, net |
|
|
— |
|
|
|
(1,305 |
) |
|
Payment of debt issuance costs |
|
|
— |
|
|
|
(6,261 |
) |
|
Proceeds under line of credit |
|
|
675,000 |
|
|
|
571,600 |
|
|
Repayments under line of credit |
|
|
(675,000 |
) |
|
|
(565,600 |
) |
|
Contingent consideration received |
|
|
— |
|
|
|
2,621 |
|
|
Contingent and deferred consideration paid |
|
|
(9,210 |
) |
|
|
(16,717 |
) |
|
Net cash flows used in financing activities |
|
|
(120,344 |
) |
|
|
(91,604 |
) |
|
Effect of foreign exchange rate changes |
|
|
(7,809 |
) |
|
|
(284,334 |
) |
|
(Decrease) / increase in cash and cash equivalents, including customer accounts and other restricted cash during the period |
|
$ |
(609,082 |
) |
|
$ |
463,693 |
|
|
Cash and cash equivalents, including customer accounts and other restricted cash, at beginning of the period |
|
|
2,127,195 |
|
|
|
1,971,718 |
|
|
Cash and cash equivalents, including customer accounts and other restricted cash, at end of the period |
|
$ |
1,518,113 |
|
|
$ |
2,435,411 |
|
Contacts
Media
Kate Aldridge
Paysafe
[email protected]
+44 750 079 7547
Investors
Kirsten Nielsen
Paysafe
[email protected]
+1 (646) 901-3140
Read the orginal article: https://siliconcanals.com/news/business-wire/paysafe-reports-third-quarter-2023-results-reaffirms-full-year-outlook/
