Financial Data and Key Metrics Changes - Total revenue for Q1 2021 was $377.4 million, up 5% year-over-year, driven by strong growth in the eCash segment [32] - Adjusted EBITDA for the quarter was $113.2 million, essentially flat compared to the prior year, resulting in an adjusted EBITDA margin of 30% [34] - Free cash flow was $109 million, or 96% conversion on an adjusted EBITDA basis [35] Business Line Data and Key Metrics Changes - Integrated processing revenue for Q1 was $176.9 million, a decrease of 5% year-over-year, with volume growth up 17% [38] - eCash revenue for Q1 was $112.9 million, an increase of 63% year-over-year, driven by increased online spending [40] - Digital wallet revenue for Q1 was $94.9 million, a decrease of 30% year-over-year, impacted by targeted actions and country exits [41] Market Data and Key Metrics Changes - North America iGaming revenues grew 66% in Q1, with Paysafe now live in 15 states across the U.S. [19] - The U.S. SMB market saw an 18% increase in volumes year-on-year in the acquiring business [11] - The overall market for online and e-commerce volumes remains strong, with significant activity in North America iGaming [10] Company Strategy and Development Direction - Paysafe aims to be the leading specialized payment platform, focusing on differentiated products for both consumers and merchants [13] - The company is positioned to win in iGaming, digital goods, trading, and financial services, with 75% of revenues coming from online payments [16] - The transformation plan is underway, with a target to migrate 70% of the business to the cloud by year-end [27] Management's Comments on Operating Environment and Future Outlook - Management noted strong underlying trends across businesses, with expectations for revenue growth to reflect strength in the second half of the year [29] - The company is optimistic about the recovery in the U.S. SMB market and the expansion of the iGaming market [10][49] - Management expressed confidence in achieving full-year guidance despite challenges faced in Q1 [62] Other Important Information - Total debt outstanding at the end of Q1 was $2.1 billion, with a net debt to last 12-month adjusted EBITDA ratio of 4.2x [43] - The company expects leverage to decrease to approximately 3.7x by year-end [43] - Paysafe has implemented a number of initiatives to capture further cost savings, with SG&A costs down approximately 4% year-over-year [28] Q&A Session Summary Question: What is the normalized growth expected for the company? - Management indicated that after accounting for certain impacts, they expect growth in the range of 11% to 13% as they lap legacy issues in Q2 and Q3 [58][62] Question: What progress has been made on digital wallet initiatives? - Management highlighted strong growth in crypto trading and plans to enhance instant funding capabilities in the U.S. market [71][72] Question: How is the U.S. iGaming market expected to develop? - Management noted that up to 25 states may open up for gaming, with a strong focus on integrating with online gaming operators [90][91] Question: What is the status of the transformation cost takeouts? - Management confirmed a strong program with expectations of $30 million in cost takeouts for the year, aiming for EBITDA margin expansion [95][96]

| --- | --- | --- | --- | --- | |------------------------------------|-------|-------|-------|-------| | | | | | | | | | | | | | First Quarter 2021 | | | | | | May 11, 2021 Earnings Presentation | | | | | | | | | | | Forward Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements This presentation 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 statement ...