Financial Data and Key Metrics Changes - The company reported a 4% decline in revenue to $401 million, but organic revenue increased by 5% when excluding inorganic impacts from foreign exchange, interest, and divestitures [20][21] - Adjusted EBITDA was $95.2 million, with an adjusted EBITDA margin of 23.7%, slightly ahead of expectations [21][28] - Unlevered free cash flow for the quarter was $57 million, reflecting a 60% conversion of adjusted EBITDA [22] Business Line Data and Key Metrics Changes - Merchant Solutions volume increased by 11% to $34.3 billion, resulting in organic revenue growth of 6% [25] - Digital Wallet segment revenue was $187.6 million, an increase of 3% on an organic basis, with volume up 5% to $5.9 billion [26] - The enterprise sales organization signed over 100 enterprise-level contracts in Q1, with strong growth in gaming and e-commerce [7][14] Market Data and Key Metrics Changes - E-commerce growth was strong at 31% for the first quarter, with processing growth in iGaming exceeding 50% year-over-year [14] - The company anticipates that the Latin American market will contribute to mid to upper single-digit growth, with expectations for low double-digit growth as the year progresses [83] Company Strategy and Development Direction - The company is focusing on expanding its PaySafe wallet platform to unlock geographic expansion and target new consumer groups [9] - Partnerships are a key strategy, with recent collaborations including Fiserv and Tilde to enhance product offerings and market reach [18][19] - The company aims to achieve at least 10% of annual revenue contributions from products released in the last three years [50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in accelerating growth in the second half of the year, driven by existing contracts and new product initiatives [8][30] - The company is mindful of macroeconomic dynamics but remains confident in delivering full-year guidance [28][29] - Management noted that attrition in the SMB segment has been slightly higher than expected, but improvements are anticipated as new initiatives are implemented [29] Other Important Information - The company repurchased 613,000 shares during the first quarter and an additional 693,000 shares in April, returning approximately $20 million to shareholders year-to-date [28] - Total debt at the end of the quarter was just under $2.4 billion, with net leverage increasing slightly to 4.9 times [27] Q&A Session Summary Question: How much of the sales pipeline is booked but not yet live? - Management indicated good visibility in the sales pipeline, with strong enterprise sales and a positive outlook for onboarding merchants [35][38] Question: Expectations for Q2 EBITDA margin? - Management expects Q2 EBITDA margin to be similar to Q1, with an increase in the second half of the year [39][40] Question: Update on e-commerce mix within the merchant segment? - E-commerce accounts for about a quarter of the merchant segment revenue, with iGaming being a significant contributor [44][45] Question: Strategy for the SMB side of the business? - The company is focusing on balancing direct sales and ISO channels, with recent investments aimed at increasing direct sales productivity [54][56] Question: Differentiation of Clover in the market? - Management believes Clover has a strong growth profile and is investing in additional services to enhance its competitive position [62][63] Question: Availability of Clover's software packages to merchants? - The company is expanding its product offerings through Clover, including digital wallets and other services [70] Question: Commission structures for direct versus indirect sales? - The commission structures differ significantly, with direct sales having shorter-term residuals compared to the ISO channel [72][76] Question: Conviction for growth from new products? - Management highlighted strong sales performance and new product launches, including the Pago Effectivo wallet, as key growth drivers [80][81]