Forward-Looking Statements First Quarter 2025 Earnings May 13, 2025 Forward-looking statements and non-GAAP financial measures This presentation and today's webcast include "forward-looking statements" within the meaning of U.S. federal securities laws. 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 Lim ...

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Financial Performance - Net cash flows provided by operating activities increased by $19,782 to an inflow of $253,804 for the year ended December 31, 2024 [467]. - Net cash used in investing activities decreased by $26,857 to $108,380 for the year ended December 31, 2024 [470]. - Net cash used in financing activities decreased by $490,229 to $280,799 for the year ended December 31, 2024 [471]. - The Company had $216,683 in cash and cash equivalents as of December 31, 2024, compared to $202,322 in 2023 [456]. Debt and Borrowing - The total principal amount of external borrowings was $2,390,689 as of December 31, 2024, down from $2,519,857 in 2023 [453]. - The Company had $214,287 available under its $305,000 Revolving Credit Facility as of December 31, 2024 [456]. - The Company is required to maintain a first lien debt ratio below 7.5x a Last Twelve Months EBITDA measure [454]. Interest Rate and Currency Risk - As of December 31, 2024, a 100 basis points increase in interest rates would result in a $12.6 million unfavorable impact on net loss [442]. - The Company actively manages interest rate risk through interest rate swaps to convert floating rates to fixed rates [441]. - A 10% strengthening of the U.S. dollar would decrease the Company's net assets by $21.5 million [445]. Tax and Deferred Assets - The company has net deferred tax assets of $19,347 in the UK as of December 31, 2024, with a likelihood of realizing these assets depending on future taxable income [496]. Impairments and Goodwill - Intangible asset impairments recognized for the years ended December 31, 2024, 2023, and 2022 were $823, $1,254, and $5,036 respectively, indicating potential future impairments due to reduced earnings or loss of key customer relationships [504]. - No indicators of impairment were identified for goodwill during the year ended December 31, 2024, with the estimated fair value of each reporting unit exceeding its carrying value [501]. - The company regularly reviews finite-lived intangible assets for impairment, with complex assumptions affecting valuations [503]. Credit Losses and Legal Liabilities - The allowance for credit losses has declined, reflecting improved conditions, although significant judgment is required in estimating future credit losses [493]. - The company has exposure to credit losses for financial assets, with estimates based on historical data and current conditions [492]. - The company maintains liabilities for legal actions that are probable and can be reasonably estimated, indicating ongoing litigation risks [505]. Revenue Recognition and Acquisitions - Revenue recognition involves significant judgments, particularly in determining principal-agent considerations for payment processing services [487]. - The company recognizes contingent consideration payables associated with acquisitions, which are remeasured each reporting period based on financial performance targets [480]. - The company did not complete any business combinations in the current year, which may impact future growth strategies [486].

Company Overview - Paysafe is focusing on its digital wallet business as a key growth driver for the upcoming year, with quarterly revenue growth of 1% and full-year growth of 6% [1] - The total payment volume for the quarter reached $40 billion, marking a 12% increase, while the annual total was $151.7 billion, up 8% [1] Future Strategy - The CEO highlighted the company's strategy to leverage its white label wallet platform, particularly in markets like Peru where it has a strong eCommerce presence [2] - Paysafe aims to differentiate itself in the white label wallet space through its regulatory strength and robust anti-money laundering (AML) practices [3] Market Trends - Research indicates a global shift towards digital wallets as the preferred method for cross-border transactions, driven by consumer demand for convenience and simplicity compared to traditional payment methods [4][5] Corporate Developments - The company has received unsolicited takeover interest but remains confident in its business outlook [5] - In February, Paysafe announced the sale of its direct marketing payment processing unit to Kort Payments, which is expected to help the company focus on its ideal customers and verticals in the experience economy [6][7]

Financial Data and Key Metrics Changes - In 2024, the company achieved 7% organic revenue growth, with full-year revenue reaching $1.7 billion, a 6% increase year-over-year [7][9] - Adjusted EBITDA for Q4 was $103 million, leading to a full-year total of $452 million, down 1% compared to the previous year [10][11] - The company generated strong unlevered free cash flow of $300 million in 2024, reflecting a 66% conversion of adjusted EBITDA [11] - For the first time since going public, the company reported a positive GAAP net income of $22 million for the full year of 2024, compared to a net loss of $20 million in the previous year [11] Business Line Data and Key Metrics Changes - Merchant Solutions revenue increased 1% year-over-year in Q4 to $230.1 million, with full-year revenue up 9% to $957.6 million [40] - Digital Wallet revenue grew 2% in Q4 to $194.4 million, leading to a full-year growth of 4% [43] - The company reported double-digit growth in e-commerce and mid-single-digit growth in the SMB segment [40][43] Market Data and Key Metrics Changes - The company experienced high single-digit growth from its top 20 countries, indicating broad-based growth across key regions [19] - The total number of enterprise-level merchants increased by 6% in 2024, reflecting improved market penetration [19] Company Strategy and Development Direction - The company completed its portfolio rationalization by divesting its direct marketing payment processing business, focusing on ideal customers and verticals [7][8] - The strategic initiatives include expanding sales capabilities and enhancing product offerings, with a focus on the experienced economy [30][52] - The company aims to drive greater scale and interoperability of its products to improve customer experiences [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's turnaround and growth potential, highlighting significant progress in financial performance and operational efficiency [52] - The outlook for 2025 includes expected revenue growth between flat and 2%, with organic growth projected at 6.5% to 8% [46] - Management anticipates improved adjusted EBITDA margins and strong operating leverage as the sales organization matures [39][48] Other Important Information - The company repurchased 2.6 million shares in 2024, with an average price of $16.23 per share, and announced a $70 million increase to its share repurchase program [45][46] - The company expects to reduce its net leverage ratio to 4.4% or lower by the end of 2025, with a long-term target of 3.5% by the end of 2026 [45] Q&A Session Summary Question: What are the growth drivers for the SMB channel in 2025? - Management highlighted solid growth in Clover sales and an increase in revenue per merchant, with a focus on larger SMB clients [56][57] Question: Can you provide details on the direct marketing business sale? - The impact of the sale will be below the EBITDA line, and it is expected to have a minimal effect on adjusted EPS in 2025 [58][65] Question: What is the outlook for the Merchant segment's gross profit growth? - Management expects robust growth in the Merchant segment, particularly in the second half of 2025 [78] Question: What are the expectations for attrition in FY '25? - Management anticipates a reduction in attrition rates as the company has completed its derisking strategy [104][106] Question: Can you elaborate on the new product contributions to revenue? - The accounting card and ePIN are significant contributors to new product revenue, with continued expansion expected [112][114] Question: What competitive advantages does the company have in the white-labeled wallets market? - The company emphasizes its regulatory strength and AML capabilities as key differentiators in the market [116]

Fourth Quarter and Full Year 2024 Earnings March 4, 2025 Forward-looking statements and non-GAAP financial measures Forward-Looking Statements This presentation and today's webcast include "forward-looking statements" within the meaning of U.S. federal securities laws. 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 probabil ...

Financial Performance - Fourth quarter 2024 revenue was $420.1 million, a 1% increase year-over-year, and total payment volume reached $40.0 billion, up 12%[4] - Full year 2024 revenue totaled $1,704.8 million, reflecting a 6% increase compared to 2023, with the Merchant Solutions segment growing 9%[14] - Net income for Q4 2024 was $33.5 million, compared to a net loss of $12.1 million in Q4 2023, driven by a gain on foreign exchange and an income tax benefit[9] - Revenue for Q4 2024 was $420,070,000, a slight increase from $414,541,000 in Q4 2023, representing a growth of 1.3%[30] - Net income for Q4 2024 was $33,511,000, compared to a net loss of $12,129,000 in Q4 2023, marking a significant turnaround[30] - Basic net income per share for Q4 2024 was $0.55, compared to a loss of $0.20 per share in Q4 2023[32] - Net income for 2024 was $22,160, compared to a net loss of $(20,251) in 2023, representing a significant turnaround[36] Cash Flow and Leverage - As of December 31, 2024, net leverage decreased to 4.7x from 5.0x a year earlier, with total debt at $2.4 billion and cash and cash equivalents at $216.7 million[3] - The company anticipates strong free cash flow generation and aims to achieve a net leverage of 3.5x by the end of 2026[5] - Net cash flows from operating activities increased to $253,804 in 2024 from $234,022 in 2023, a growth of about 8.5%[36] - Unlevered Free Cash Flow for 2024 was $299,592, down from $318,299 in 2023, a decrease of approximately 5.9%[48] Expenses and Costs - Adjusted EBITDA for Q4 2024 decreased 15% to $103.3 million, primarily due to increased credit losses of $22.7 million, up $15.2 million from the prior year[11] - Selling, general and administrative expenses rose to $136,779,000 in Q4 2024 from $125,030,000 in Q4 2023, an increase of 9.4%[30] - The company reported an operating income of $29,511,000 for Q4 2024, down from $46,281,000 in Q4 2023, a decrease of 36.2%[30] - The company incurred share-based compensation expenses of $38,534 in 2024, up from $28,873 in 2023, an increase of approximately 33.5%[36] - The company reported a total depreciation and amortization expense of $273,364 for 2024, compared to $263,433 in 2023, an increase of about 3.8%[47] - Restructuring and other costs for the year ended December 31, 2024, totaled $5,178,000, compared to $6,061,000 in 2023, indicating a decrease of approximately 14.6%[50] Assets and Liabilities - Total assets decreased to $4,809,334,000 in Q4 2024 from $5,227,701,000 in Q4 2023, a decline of 8%[34] - Total liabilities decreased to $3,930,073,000 in Q4 2024 from $4,344,388,000 in Q4 2023, a reduction of 9.5%[34] - Cash and cash equivalents increased to $216,683,000 in Q4 2024 from $202,322,000 in Q4 2023, an increase of 7.2%[34] Market and Strategic Initiatives - Revenue from the Digital Wallets segment increased 2% in Q4 2024, supported by product initiatives despite lower interest revenue from consumer deposits[8] - The company experienced a $10.7 million revenue headwind from the disposed direct marketing payment processing business in Q4 2024[8] - Paysafe received unsolicited preliminary non-binding expressions of interest regarding potential takeover proposals, which the Board is reviewing[20] - The company anticipates continued focus on specialized and high-risk verticals, with potential impacts from regulatory changes and economic uncertainties[28] Adjusted Metrics - Adjusted EBITDA for the year ended December 31, 2024, was $452,054, slightly down from $458,663 in 2023, indicating a decrease of about 1.5%[47] - Gross Profit (excluding depreciation and amortization) for 2024 was $989,073, up from $937,926 in 2023, reflecting an increase of approximately 5.5%[49] - Adjusted net income for the year ended December 31, 2024, was $132,520,000, down from $143,888,000 in 2023, representing a decrease of approximately 7.5%[51] - The adjusted net income per diluted share for the three months ended December 31, 2024, was $0.48, consistent with $0.66 in the same period of 2023[51]

Core Insights - Paysafe is reportedly considering a sale after receiving takeover interest and is exploring options with a financial advisor [1] - The company went public in December 2020 through a merger with Foley Trasimene Acquisition Corp. II, which valued Paysafe at $9 billion, but its stock has since dropped approximately 80%, currently valuing the company at $1.4 billion after a recent rise [2] - In its November earnings report, Paysafe reported growth in core segments and an increase in average transactions per active user of digital wallets, although its adjusted earnings of 51 cents per share fell short of Wall Street's expectation of 59 cents [3] Business Developments - Paysafe's CEO announced a collaboration with Revolut to provide eCash services to Revolut's 10 million UK customers, achieving transactions with 28,000 unique consumers within the first three months [4] - The company also partnered with CellPoint Digital to enable travel merchants to offer seamless payment solutions, connecting them to various acquirers through CellPoint's payment orchestration platform [5] - Paysafe emphasizes its commitment to supporting merchants with robust acquiring solutions, high acceptance rates, enhanced security, and improved liquidity [6]

Core Insights - Paysafe Limited (NYSE: PSFE) reported its Q3 results on November 13, showing resilience in its performance, particularly with iGaming clients [1] Financial Performance - The company demonstrated strong financial results, although specific figures were not provided in the text [1] Market Position - Paysafe operates as a payment platform provider and processor, focusing on the iGaming sector, indicating a specialized market niche [1]

Core Viewpoint - Paysafe Limited (NYSE: PSFE) reported disappointing Q3 results, leading to negative reactions from the investing community [1] Financial Performance - The article indicates a detailed examination of the Q3 numbers, suggesting that there are significant concerns regarding the company's financial health [1] Investment Perspective - The author expresses a long-term investment strategy, focusing on a mix of growth, value, and dividend-paying stocks, with a particular emphasis on value investing [1]