Paysafe (US:PSFE)2025-03-04 12:00Financial 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]