Paysafe Limited (PSFE) closed the last trading session at $18.50, gaining 27.9% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $24.24 indicates a 31% upside potential. The average comprises seven short-term price targets ranging from a low of $16 to a high of $64, with a standard deviation of $17.60. While the lowest estimate indicates a decline of 13.5% from the current price lev ...

Core Insights - Paysafe's Q1 report showed strong performance, leading to a significant increase in stock price by 20.2% following the results announcement [1] - The company reported non-GAAP earnings per share of $0.57 on sales of $417.7 million, surpassing analyst expectations of $0.55 per share on revenue of $408.2 million [2] - Revenue grew by 8% year over year, driven by a 7% increase in total payment volume, reaching $36.1 billion in transaction value [3] Financial Performance - Adjusted net income rose approximately 7% year over year to $35.3 million, despite ongoing expansion of the sales team [3] - Paysafe reiterated its full-year revenue guidance for 2024, expecting sales between $1.69 billion and $1.71 billion, aligning with analyst estimates [4] - The company also guided for adjusted EBITDA to be between $473 million and $488 million, maintaining previous targets despite concerns over rising selling costs [5]

Paysafe Limited (NYSE:PSFE) Q1 2024 Earnings Conference Call May 13, 2024 4:30 PM ET Company Participants Kirsten Nielsen - Senior Vice President, Investor Relations Bruce Lowthers - Chief Executive Officer and Executive Director Alex Gersh - Chief Financial Officer Conference Call Participants David Togut - Evercore ISI Dan Perlin - RBC Capital Markets Aditya Buddhavarapu - Bank of America Securities Paul Obrecht - Wolfe Research Spencer James - Jefferies Timothy Chiodo - UBS Andrew Harte - BTIG Operator H ...

Over the last four quarters, the company has surpassed consensus EPS estimates three times. Paysafe Limited, which belongs to the Zacks Financial Transaction Services industry, posted revenues of $417.74 million for the quarter ended March 2024, surpassing the Zacks Consensus Estimate by 2.49%. This compares to year-ago revenues of $387.85 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the ...

Financial Performance - Revenue reached $418 million, an increase of 8% year-over-year (YoY), or 7% on a constant currency (cc) basis[8] - Adjusted Net Income was $35 million, with Adjusted Earnings Per Share (EPS) at $057, up 6% YoY[9] - Paysafe reported a positive GAAP net income of $31 million, compared to a GAAP net loss of $38 million in Q1 2023[10] - Adjusted EBITDA was $112 million, with a margin of 268%[22] - Volume increased by 7% YoY, reaching $36 billion[21] Strategic Initiatives and Investments - Sales and portfolio optimization initiatives are on track, including significant year-to-date hiring in the sales function[10] - The company is doubling its direct sales team in FY24, with 29 new hires in Q1[11] - Paysafe is expecting ~$50 million benefit in FY24 from investment hiring revenue[14] Segment Performance - Merchant Solutions revenue increased by 11%, while Digital Wallets revenue grew by 5%[10] - Digital Wallets added approximately 14 million consumers[42] - Digital Wallets segment metrics show 75 million 3-month active users, stable YoY, with an Average Revenue Per User (ARPU) of $26, up 5% YoY[42] Leverage and Capital Allocation - Net leverage reduced to 49x, compared to 50x in December 2023[23] - The company repurchased approximately 989k shares for $14 million[24] Outlook - Paysafe reaffirmed its 2024 revenue guidance of $1688 million - $1712 million, representing >6% revenue growth at midpoint[10, 61] - Adjusted EBITDA guidance for 2024 is $473 million - $488 million, with a margin of 280% to 285%[80]

[Q1 2024 Financial & Operational Highlights](index=1&type=section&id=First%20Quarter%202024%20Financial%20Highlights) Paysafe reported an 8% revenue increase to **$417.7 million**, achieving a net income of **$3.1 million** and reducing net leverage to **4.9x**, alongside key operational advancements Q1 2024 Key Financial Metrics (vs. Q1 2023) | Metric | Q1 2024 | Change (YoY) | | :--- | :--- | :--- | | Revenue | $417.7 million | +8% | | Total Payment Volume | $36.1 billion | +7% | | Net Income | $3.1 million | N/A (from loss) | | Diluted EPS | $0.05 | N/A (from -$0.06) | | Adjusted EBITDA | $111.9 million | +4% | | Adjusted Diluted EPS | $0.57 | +5.6% | - Net leverage decreased to **4.9x** as of March 31, 2024, down from **5.0x** at the end of 2023, indicating progress in deleveraging[5](index=5&type=chunk) - Strategic and operational progress in Q1 2024 includes expanding sales team, repurchasing **$14 million** of common shares, partnering with Xsolla, launching Pay by Bank for U.S. iGaming, and completing network tokenization offering[5](index=5&type=chunk) [Q1 2024 Consolidated Financial Results](index=2&type=section&id=First%20Quarter%20of%202024%20Summary%20of%20Consolidated%20Results) Total revenue grew 8% to **$417.7 million**, driven by both segments, resulting in a net income of **$3.1 million** and a significant increase in operating cash flow Q1 2024 Consolidated Results Summary (in thousands) | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $417,738 | $387,849 | +8% | | Gross Profit (excl. D&A) | $247,365 | $228,910 | +8% | | Net Income / (Loss) | $3,056 | $(3,808) | N/A | | Adjusted EBITDA | $111,916 | $107,815 | +4% | - Revenue growth was driven by an **11%** increase in Merchant Solutions and a **5%** increase in Digital Wallets[6](index=6&type=chunk) - The shift from a net loss to net income was primarily due to an increase in other income and a decrease in interest expense, which offset higher depreciation, amortization, and tax expenses[7](index=7&type=chunk) - Operating cash flow significantly increased to **$58.8 million** from **$20.0 million** in the prior year, mainly driven by lower taxes paid and the timing of bonus payments[10](index=10&type=chunk) [Segment Performance](index=3&type=section&id=Summary%20of%20Segment%20Results) Merchant Solutions revenue grew **11%** to **$231.4 million** with a **6%** EBITDA decline, while Digital Wallets saw **5%** growth in both revenue and EBITDA Q1 2024 Segment Results (in thousands) | Segment | Revenue | Revenue YoY Change | Adjusted EBITDA | Adjusted EBITDA YoY Change | | :--- | :--- | :--- | :--- | :--- | | Merchant Solutions | $231,398 | +11% | $49,178 | -6% | | Digital Wallets | $190,457 | +5% | $83,274 | +5% | - The decline in Merchant Solutions' Adjusted EBITDA occurred despite strong revenue growth, while Digital Wallets showed balanced growth in both top-line revenue and profitability[15](index=15&type=chunk) [Full Year 2024 Financial Guidance](index=3&type=section&id=Full%20Year%202024%20Financial%20Guidance) Paysafe reaffirmed its full-year 2024 guidance, projecting revenue between **$1,688 million** and **$1,712 million**, and Adjusted EBITDA from **$473 million** to **$488 million** Full Year 2024 Guidance (in millions) | Metric | Full Year 2024 Range | | :--- | :--- | | Revenue | $1,688 - $1,712 | | Adjusted EBITDA | $473 - $488 | [Balance Sheet and Cash Flow](index=2&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) As of March 31, 2024, Paysafe held **$202.1 million** cash, reduced total debt to **$2.5 billion**, and generated strong operating cash flow of **$58.8 million** Balance Sheet Summary (as of March 31, 2024) | Metric | Amount (in millions) | | :--- | :--- | | Cash and cash equivalents | $202.1 | | Total debt | $2,457.4 | | Net debt | $2,255.3 | - Total debt decreased by **$44.5 million** compared to December 31, 2023, reflecting net repayments and favorable foreign exchange rate movements[11](index=11&type=chunk) Q1 Cash Flow Summary (in millions) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Operating Cash Flow | $58.8 | $20.0 | | Unlevered Free Cash Flow | $69.2 | $42.2 | [Corporate Updates](index=2&type=section&id=Corporate%20Updates) Paysafe published its inaugural Sustainability Report, outlining a new strategy based on four pillars: trusted technology, engaged employees, thriving society, and responsible business principles - The company published its inaugural Sustainability Report, demonstrating its commitment to acting as a responsible fintech company[12](index=12&type=chunk) - The sustainability strategy is built on four pillars: Trusted technology, Engaged employees, Thriving society, and Responsible business practices[16](index=16&type=chunk) [Financial Statements and Non-GAAP Reconciliations](index=6&type=section&id=Financial%20Statements%20and%20Non-GAAP%20Reconciliations) This section provides detailed unaudited financial statements for Q1 2024, including Statements of Operations, Balance Sheets, and Cash Flows, along with reconciliations for key non-GAAP measures [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2024 revenue reached **$417.7 million**, with operating income of **$33.0 million**, resulting in a net income of **$3.1 million** or **$0.05** per diluted share Q1 2024 Statement of Operations Highlights (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenue | $417,738 | $387,849 | | Operating income | $32,965 | $34,980 | | Income before taxes | $10,355 | $71 | | Net income / (loss) | $3,056 | $(3,808) | | Diluted EPS | $0.05 | $(0.06) | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets were **$5.05 billion**, total liabilities **$4.18 billion**, and total shareholders' equity **$873.9 million** Balance Sheet Summary (in thousands) | Line Item | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total current assets | $1,792,093 | $1,906,493 | | Total assets | $5,054,153 | $5,227,701 | | Total current liabilities | $1,596,050 | $1,712,668 | | Total liabilities | $4,180,247 | $4,344,388 | | Total shareholders' equity | $873,906 | $883,313 | [Condensed Consolidated Statements of Cash Flow](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flow) Q1 2024 saw **$58.8 million** net cash from operating activities, **$13.8 million** used in investing, and **$142.4 million** used in financing, leading to an overall cash decrease Q1 2024 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash from operating activities | $58,835 | $20,014 | | Net cash used in investing activities | $(13,825) | $(32,543) | | Net cash used in financing activities | $(142,376) | $(194,558) | [Non-GAAP Reconciliations](index=12&type=section&id=Non-GAAP%20Reconciliations) This section details reconciliations of GAAP net income of **$3.1 million** to Adjusted EBITDA of **$111.9 million**, Adjusted Net Income of **$35.3 million**, and operating cash flow to Unlevered Free Cash Flow of **$69.2 million** Reconciliation of Net Income to Adjusted EBITDA (Q1 2024, in thousands) | Line Item | Amount | | :--- | :--- | | Net income | $3,056 | | Adjustments (Taxes, Interest, D&A, etc.) | $108,860 | | **Adjusted EBITDA** | **$111,916** | Reconciliation of Net Income to Adjusted Net Income (Q1 2024, in thousands) | Line Item | Amount | | :--- | :--- | | Net income | $3,056 | | Adjustments (Amortization, SBC, Tax items, etc.) | $32,250 | | **Adjusted net income** | **$35,306** | Reconciliation of Operating Cash Flow to Unlevered Free Cash Flow (Q1 2024, in thousands) | Line Item | Amount | | :--- | :--- | | Net cash inflows from operating activities | $58,835 | | Capital expenditure | $(24,425) | | Cash paid for interest | $31,331 | | Payments for Restructuring | $3,453 | | **Unlevered Free Cash Flow** | **$69,194** |

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(B) OR 12(G) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 19 ...

Financial Data and Key Metrics Changes - The company reported a strong fourth quarter with an 8% revenue growth, or 6% on a constant currency basis, resulting in full year revenue of $1.6 billion, a 7% increase compared to 2022 [10][34] - Fourth quarter adjusted EBITDA increased 13%, leading to full year adjusted EBITDA of $459 million, an increase of 12% compared to 2022 [10][35] - Adjusted EBITDA margin for 2023 was 28.6%, an increase of 120 basis points [10][35] - Net leverage was reduced to 5.0 at quarter end, down from 5.8 at the end of the previous year [10][40] Business Line Data and Key Metrics Changes - The classic digital wallet business and ecommerce solutions experienced double-digit growth, with ecommerce growing 29% for 2023 [11][15] - Merchant solutions volume was $30.2 billion in Q4, an increase of 8% year-over-year, with full year volume also up 8% to $118.7 billion [36] - Digital wallet segment saw fourth quarter volume increase of 13% to $6 billion, with full year volume increasing 9% to $22.4 billion [38] Market Data and Key Metrics Changes - North America, the largest region, grew approximately 7% for the full year 2023, while Europe grew approximately 3% [34] - The company noted softer performance in the e-cash business and the SMB direct business, which are key focus areas for improvement in 2024 [34] Company Strategy and Development Direction - The company plans to add 170 additional salespeople in 2024, expanding the scope of initiatives to include the SMB business [16] - A phased approach for rolling out a merchant wallet to SMBs in the U.S. is underway, aiming to consolidate B2B and B2C capabilities [17] - The company is focused on optimizing the SMB portfolio and enhancing product offerings to improve growth in the direct channel [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's stronger position and ability to restore investor confidence through improved growth metrics and reduced debt [53][54] - The outlook for 2024 includes expected revenues in the range of $1.688 billion to $1.712 billion, reflecting growth above 6% at the midpoint [42] - Adjusted EBITDA for 2024 is expected to be within the range of $473 million to $488 million, with a focus on cost discipline and operational efficiencies [42][43] Other Important Information - The company has authorized a $50 million share repurchase program expected to commence soon [41][59] - The average interest rate on the company's debt was 5.8%, with plans to reduce interest expenses through debt repayments [40][35] Q&A Session Summary Question: What goals have been set to restore investor confidence in Paysafe? - Management highlighted the stabilization of the company, growth in revenue streams, and a focus on expanding reach with new and existing merchants [52][54] Question: Are there plans to add Web3 or cryptocurrency capabilities? - Management confirmed that while crypto is a small part of the business, they are focused on expanding offerings in the crypto and Web3 space, particularly in gaming [56][57] Question: What is the strategy for repaying debt and initiating the stock buyback program? - The company plans to maintain flexibility while focusing on reducing leverage and investing in innovation [58][59] Question: What are the expectations for digital wallet take rate compression? - Management indicated that take rate compression is due to product mix, with stability in existing product pricing [72][75] Question: What are the drivers of growth divergence between the direct and ISO channels? - The company noted that the direct channel serves smaller merchants compared to the ISO channel, impacting growth dynamics [126]

Improved execution with stronger core business to leverage our assets $millions assumptions for Adj. EPS Statement regarding non-GAAP financial measures Reconciliation of GAAP net income (loss) to Adj. net income 20 Other operating Income Three Months Ended December 31, Three months ended (1) During the fourth quarter of 2023, the Company elected to change its presentation of "Settlement receivables, net" and "Funds payable due to customers" from operating activities, to present them as financing activities ...

Exhibit 99.1 Bruce Lowthers, CEO of Paysafe, commented: "We closed out 2023 strong with 8% revenue growth in Q4 and full year growth of 7%, reflecting our best year since coming public. We have undergone significant operating changes during this past year which has allowed us to deliver on the commitments that we set last March, driving revenue growth, Adjusted EBITDA expansion and a reduction in our net debt leverage ratio. Our team is excited about the opportunities ahead, and we look forward to building ...