Paysafe Reports First Quarter 2024 Results; Reaffirms Full Year Outlook
First Quarter 2024 Financial Highlights
(Metrics compared to first quarter of 2023, unless otherwise noted)
-
Revenue of
$417.7 million , increased 8%; increased 7% on a constant currency basis -
Total Payment Volume of
$36.1 billion , increased 7% -
Net income of
$3.1 million , or$0.05 per diluted share, compared to net loss of$3.8 million , or ($0.06 ) per diluted share -
Adjusted net income of
$35.3 million , or$0.57 per diluted share, compared to$33.1 million , or$0.54 per diluted share -
Adjusted EBITDA of
$111.9 million , increased 4%; increased 3% on a constant currency basis -
Net leverage1 decreased to 4.9x as of
March 31, 2024 , compared to 5.0x as ofDecember 31, 2023
Recent Strategic and Operational Highlights
-
Published
Paysafe's inaugural sustainability report -
Expanded sales team as part of previously announced investment plans to enhance
Paysafe's go-to-market capabilities to support growth in target verticals -
Capital returns - repurchased 989,419 of
Paysafe's common shares for$14 million - Advanced our white label wallet strategy through a partnership with Xsolla, a leader in game commerce
-
Launched
Paysafe's Pay by Bank solution forU.S. iGaming, allowing bettors to log-in directly to their bank accounts at online sportsbooks’ cashiers to fund real-time wagers -
Paysafe is now processing iGaming payments in 33 U.S. states and territories, including Q1 launches inVermont andNorth Carolina - Completed our network tokenization offering by integrating with Mastercard’s Secure Card on File, providing cardholders with an extra layer of protection and enhancing their payment journey
(1) |
|
First Quarter of 2024 Summary of Consolidated Results
|
|
Three Months Ended |
|
|||||
|
|
|
|
|||||
($ in thousands) (unaudited) |
|
2024 |
|
|
2023 |
|
||
Revenue |
|
$ |
417,738 |
|
|
$ |
387,849 |
|
Gross Profit (excluding depreciation and amortization) |
|
$ |
247,365 |
|
|
$ |
228,910 |
|
Net income / (loss) |
|
$ |
3,056 |
|
|
$ |
(3,808 |
) |
|
|
|
|
|
|
|
||
Adjusted EBITDA |
|
$ |
111,916 |
|
|
$ |
107,815 |
|
Adjusted net income |
|
$ |
35,306 |
|
|
$ |
33,076 |
|
Total revenue for the first quarter of 2024 was
Net income for the first quarter increased to
Adjusted net income for the first quarter increased 7% to
Adjusted EBITDA for the first quarter was
First quarter operating cash flow was
Balance Sheet
As of
2023 Sustainability Report
Demonstrating our commitment to acting as a responsible fintech company,
The report can be accessed on the Sustainability section of Paysafe’s website at https://www.paysafe.com/en/about/sustainability/.
Paysafe’s Sustainability Report highlights the company’s commitment to focus on the following four pillars:
- Trusted technology: delivering security and protection for consumers and merchants alike by continually strengthening the security of our products, services and internal processes, providing a great customer experience, underpinned by trust, convenience and support for the vulnerable and a responsible approach to technology and innovation.
- Engaged employees: attracting and retaining the right talent through offering our people a great place to work, which rewards commitment, promotes engagement, offers development opportunities and prioritizes their wellbeing, building upon our diverse workforce at every level of the business.
- Thriving society: striving to make a positive contribution to society by increasing accessibility to financial and digital products for all customers, supporting community volunteer programs, corporate donations, and reducing the impact of our operations and value chain on the environment.
-
Responsible business practices: operating in a responsible manner by promoting effective governance, ethics and compliance across our organization through experienced leaders, established committees and robust policies, standards and procedures to guide everyone that works for
Paysafe , including our suppliers and partners.
Summary of Segment Results
|
|
Three Months Ended |
|
|
|
|
||||||
|
|
|
|
|
YoY |
|||||||
($ in thousands) (unaudited) |
|
2024 |
|
|
2023 |
|
|
change |
||||
Revenue: |
|
|
|
|
|
|
|
|
|
|||
Merchant Solutions |
|
$ |
231,398 |
|
|
$ |
208,521 |
|
|
|
11 |
% |
Digital Wallets |
|
$ |
190,457 |
|
|
$ |
181,448 |
|
|
|
5 |
% |
Intersegment |
|
$ |
(4,117 |
) |
|
$ |
(2,120 |
) |
|
|
94 |
% |
Total Revenue |
|
$ |
417,738 |
|
|
$ |
387,849 |
|
|
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|||
Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|||
Merchant Solutions |
|
$ |
49,178 |
|
|
$ |
52,336 |
|
|
|
-6 |
% |
Digital Wallets |
|
$ |
83,274 |
|
|
$ |
79,209 |
|
|
|
5 |
% |
Corporate |
|
$ |
(20,536 |
) |
|
$ |
(23,730 |
) |
|
|
13 |
% |
Total Adjusted EBITDA |
|
$ |
111,916 |
|
|
$ |
107,815 |
|
|
|
4 |
% |
Full Year 2024 Financial Guidance
($ in millions) (unaudited) |
|
Full Year 2024 |
Revenue |
|
|
Adjusted EBITDA |
|
|
Webcast and Conference Call
Time |
|
|
Webcast | Go to the Investor Relations section of the |
|
Dial in | 877-407-0752 ( |
About
Forward-looking Statements
This press release includes “forward-looking statements” within the meaning of
These forward-looking statements involve significant risks, uncertainties, and events that may cause the actual results to differ materially, and potentially adversely, from those expressed or implied in the forward-looking statements. While the Company believes its assumptions concerning future events are reasonable, a number of factors could cause actual results to differ materially from those projected, including, but not limited to: cyberattacks and security vulnerabilities; complying with and changes in money laundering regulations, financial services regulations, cryptocurrency regulations, consumer and business privacy and data use regulations or other regulations in
The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in their expectations with respect thereto or any change in events.
Paysafe Limited Condensed Consolidated Statements of Operations (unaudited)
|
|
Three Months Ended |
|
|||||
|
|
|
|
|||||
($ in thousands) |
|
2024 |
|
|
2023 |
|
||
Revenue |
|
$ |
417,738 |
|
|
$ |
387,849 |
|
Cost of services (excluding depreciation and amortization) |
|
|
170,373 |
|
|
|
158,939 |
|
Selling, general and administrative |
|
|
144,808 |
|
|
|
128,311 |
|
Depreciation and amortization |
|
|
68,310 |
|
|
|
63,547 |
|
Impairment expense on goodwill and intangible assets |
|
|
653 |
|
|
|
82 |
|
Restructuring and other costs |
|
|
452 |
|
|
|
1,990 |
|
Loss on disposal of subsidiary and other assets, net |
|
|
177 |
|
|
|
— |
|
Operating income |
|
|
32,965 |
|
|
|
34,980 |
|
Other income, net |
|
|
12,355 |
|
|
|
2,547 |
|
Interest expense, net |
|
|
(34,965 |
) |
|
|
(37,456 |
) |
Income before taxes |
|
|
10,355 |
|
|
|
71 |
|
Income tax expense |
|
|
7,299 |
|
|
|
3,879 |
|
Net income / (loss) |
|
$ |
3,056 |
|
|
$ |
(3,808 |
) |
|
|
|
|
|
|
|
||
Net income / (loss) per share – basic |
|
$ |
0.05 |
|
|
$ |
(0.06 |
) |
Net income / (loss) per share – diluted |
|
$ |
0.05 |
|
|
$ |
(0.06 |
) |
|
|
|
|
|
|
|
||
Net income / (loss) |
|
$ |
3,056 |
|
|
$ |
(3,808 |
) |
Other comprehensive (loss) / income, net of tax of $0: |
|
|
|
|
|
|
||
(Loss)/gain on foreign currency translation |
|
|
(7,612 |
) |
|
|
2,174 |
|
Total comprehensive loss |
|
$ |
(4,556 |
) |
|
$ |
(1,634 |
) |
Paysafe Limited Consolidated Net income / (loss) per share
|
Three Months Ended |
|
|||||
|
|
|
|||||
|
2024 |
|
|
2023 |
|
||
Numerator ($ in thousands) |
|
|
|
|
|
||
Net income / (loss) - basic |
$ |
3,056 |
|
|
$ |
(3,808 |
) |
Net income / (loss) - diluted |
$ |
3,056 |
|
|
$ |
(3,808 |
) |
Denominator (in millions) |
|
|
|
|
|
||
Weighted average shares – basic |
|
61.6 |
|
|
|
61.0 |
|
Weighted average shares – diluted (1) |
|
62.0 |
|
|
|
61.0 |
|
Net income / (loss) per share |
|
|
|
|
|
||
Basic |
$ |
0.05 |
|
|
$ |
(0.06 |
) |
Diluted |
$ |
0.05 |
|
|
$ |
(0.06 |
) |
(1) |
The denominator used in the calculation of diluted net income per share for the three months ended |
Paysafe Limited Condensed Consolidated Balance Sheets (unaudited)
($ in thousands) |
|
|
|
|
|
|
||
Assets |
|
|
|
|
|
|
||
Current assets |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
202,134 |
|
|
$ |
202,322 |
|
Customer accounts and other restricted cash |
|
|
1,172,818 |
|
|
|
1,295,947 |
|
Accounts receivable, net of allowance for credit losses of |
|
|
176,283 |
|
|
|
162,081 |
|
Settlement receivables, net of allowance for credit losses of |
|
|
179,404 |
|
|
|
171,224 |
|
Prepaid expenses and other current assets |
|
|
61,454 |
|
|
|
74,919 |
|
Total current assets |
|
|
1,792,093 |
|
|
|
1,906,493 |
|
Deferred tax assets |
|
|
77,273 |
|
|
|
77,273 |
|
Property, plant and equipment, net |
|
|
18,925 |
|
|
|
17,213 |
|
Operating lease right-of-use assets |
|
|
28,649 |
|
|
|
22,120 |
|
Derivative financial assets |
|
|
11,097 |
|
|
|
10,427 |
|
Intangible assets, net |
|
|
1,109,934 |
|
|
|
1,163,935 |
|
|
|
|
2,006,801 |
|
|
|
2,023,402 |
|
Other assets – non-current |
|
|
9,381 |
|
|
|
6,838 |
|
Total non-current assets |
|
|
3,262,060 |
|
|
|
3,321,208 |
|
Total assets |
|
$ |
5,054,153 |
|
|
$ |
5,227,701 |
|
|
|
|
|
|
|
|
||
Liabilities and equity |
|
|
|
|
|
|
||
Current liabilities |
|
|
|
|
|
|
||
Accounts payable and other liabilities |
|
$ |
206,649 |
|
|
$ |
202,699 |
|
Short-term debt |
|
|
10,190 |
|
|
|
10,190 |
|
Funds payable and amounts due to customers |
|
|
1,357,682 |
|
|
|
1,477,017 |
|
Operating lease liabilities – current |
|
|
8,241 |
|
|
|
8,233 |
|
Contingent and deferred consideration payable – current |
|
|
10,183 |
|
|
|
11,828 |
|
Liability for share-based compensation – current |
|
|
3,105 |
|
|
|
2,701 |
|
Total current liabilities |
|
|
1,596,050 |
|
|
|
1,712,668 |
|
Non-current debt |
|
|
2,447,162 |
|
|
|
2,491,643 |
|
Operating lease liabilities – non-current |
|
|
23,357 |
|
|
|
16,963 |
|
Deferred tax liabilities |
|
|
108,540 |
|
|
|
111,705 |
|
Warrant liabilities |
|
|
1,698 |
|
|
|
1,423 |
|
Liability for share-based compensation – non-current |
|
|
2,798 |
|
|
|
3,108 |
|
Contingent and deferred consideration payable – non-current |
|
|
642 |
|
|
|
6,878 |
|
Total non-current liabilities |
|
|
2,584,197 |
|
|
|
2,631,720 |
|
Total liabilities |
|
|
4,180,247 |
|
|
|
4,344,388 |
|
Commitments and contingent liabilities |
|
|
|
|
|
|
||
Total shareholders' equity |
|
|
873,906 |
|
|
|
883,313 |
|
Total liabilities and shareholders' equity |
|
$ |
5,054,153 |
|
|
$ |
5,227,701 |
|
Paysafe Limited Condensed Consolidated Statements of Cash Flow (unaudited)
|
|
Three Months Ended |
|
|||||
|
|
|
|
|||||
($ in thousands) |
|
2024 |
|
|
2023 (1) |
|
||
Cash flows from operating activities |
|
|
|
|
|
|
||
Net income / (loss) |
|
$ |
3,056 |
|
|
$ |
(3,808 |
) |
Adjustments for non-cash items: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
68,581 |
|
|
|
63,547 |
|
Unrealized foreign exchange gain |
|
|
(2,519 |
) |
|
|
(5,598 |
) |
Deferred tax (benefit) / expense |
|
|
(1,767 |
) |
|
|
7,782 |
|
Interest expense, net |
|
|
3,634 |
|
|
|
8,563 |
|
Share-based compensation |
|
|
9,359 |
|
|
|
7,216 |
|
Other income, net |
|
|
(7,162 |
) |
|
|
(3,189 |
) |
Impairment expense on goodwill and intangible assets |
|
|
653 |
|
|
|
82 |
|
Allowance for credit losses and other |
|
|
11,739 |
|
|
|
3,923 |
|
Loss on disposal of subsidiary and other assets, net |
|
|
177 |
|
|
|
— |
|
Non-cash lease expense |
|
|
2,232 |
|
|
|
2,243 |
|
Movements in working capital: |
|
|
|
|
|
|
||
Accounts receivable, net |
|
|
(24,222 |
) |
|
|
(12,766 |
) |
Prepaid expenses and other current assets |
|
|
(1,788 |
) |
|
|
(11,947 |
) |
Accounts payable and other liabilities |
|
|
(3,792 |
) |
|
|
(15,752 |
) |
Income tax receivable / (payable) |
|
|
654 |
|
|
|
(20,282 |
) |
Net cash flows from operating activities |
|
|
58,835 |
|
|
|
20,014 |
|
Cash flows in investing activities |
|
|
|
|
|
|
||
Purchase of property, plant & equipment |
|
|
(3,719 |
) |
|
|
(2,732 |
) |
Purchase of merchant portfolios |
|
|
— |
|
|
|
(4,399 |
) |
Other intangible asset expenditures |
|
|
(20,706 |
) |
|
|
(27,636 |
) |
Receipts under derivative financial instruments |
|
|
2,531 |
|
|
|
2,224 |
|
Cash inflow from merchant reserves |
|
|
6,510 |
|
|
|
— |
|
Other investing activities, net |
|
|
1,559 |
|
|
|
— |
|
Net cash flows used in investing activities |
|
|
(13,825 |
) |
|
|
(32,543 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
||
Cash settled equity awards |
|
|
— |
|
|
|
(484 |
) |
Repurchases of shares withheld for taxes |
|
|
(257 |
) |
|
|
(3,690 |
) |
Purchase of treasury shares |
|
|
(12,000 |
) |
|
|
— |
|
Settlement funds - merchants and customers, net |
|
|
(108,302 |
) |
|
|
(138,975 |
) |
Repurchase of borrowings |
|
|
(30,545 |
) |
|
|
(57,386 |
) |
Proceeds from loans and borrowings |
|
|
50,242 |
|
|
|
25,781 |
|
Repayments of loans and borrowings |
|
|
(33,759 |
) |
|
|
(13,329 |
) |
Proceeds under line of credit |
|
|
225,000 |
|
|
|
225,000 |
|
Repayments under line of credit |
|
|
(225,000 |
) |
|
|
(225,000 |
) |
Contingent consideration paid |
|
|
(7,755 |
) |
|
|
(6,475 |
) |
Net cash flows used in financing activities |
|
|
(142,376 |
) |
|
|
(194,558 |
) |
Effect of foreign exchange rate changes |
|
|
(25,951 |
) |
|
|
20,379 |
|
Decrease in cash and cash equivalents, including customer accounts and other restricted cash during the period |
|
$ |
(123,317 |
) |
|
$ |
(186,708 |
) |
Cash and cash equivalents, including customer accounts and other restricted cash at beginning of the period |
|
|
1,498,269 |
|
|
|
2,127,195 |
|
Cash and cash equivalents at end of the period, including customer accounts and other restricted cash |
|
$ |
1,374,952 |
|
|
$ |
1,940,487 |
|
|
|
Three Months Ended |
|
|||||
|
|
|
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Cash and cash equivalents |
|
$ |
202,134 |
|
|
$ |
221,687 |
|
Customer accounts and other restricted cash |
|
|
1,172,818 |
|
|
|
1,718,800 |
|
Total cash and cash equivalents, including customer accounts and other restricted cash |
|
$ |
1,374,952 |
|
|
$ |
1,940,487 |
|
(1) |
During the fourth quarter of 2023, the Company elected to change its presentation of the cash flows associated with "Settlement receivables, net" and "Funds payable and amounts due to customers" from operating activities, to present them as financing activities within its Consolidated Statements of Cash Flows. Comparative amounts have been recast to conform to current period presentation. These recasts had no impact on the Consolidated Statements of Comprehensive Loss, Consolidated Statements of Financial Position or Consolidated Statements of Shareholders' Equity. |
Non-GAAP Financial Measures
To supplement the Company’s condensed consolidated financial statements presented in accordance with generally accepted accounting principles, or GAAP, the company uses non-GAAP measures of certain components of financial performance. This includes Gross Profit (excluding depreciation and amortization), Adjusted EBITDA, Unlevered free cash flow, Adjusted net income, Adjusted net income per share, and Net leverage which are supplemental measures that are not required by, or presented in accordance with, accounting principles generally accepted in
Gross Profit (excluding depreciation and amortization) is defined as revenue less cost of services (excluding depreciation and amortization). Management believes Gross Profit to be a useful profitability measure to assess the performance of our businesses and ability to manage cost.
Adjusted EBITDA is defined as net income/(loss) before the impact of income tax (benefit)/expense, interest expense, net, depreciation and amortization, share-based compensation, impairment expense on goodwill and intangible assets, restructuring and other costs, loss/(gain) on disposal of a subsidiaries and other assets, net, and other income/(expense), net. These adjustments also include certain costs and transaction items that are not reflective of the underlying operating performance of the Company. Management believes Adjusted EBITDA to be a useful profitability measure to assess the performance of our businesses and improves the comparability of operating results across reporting periods.
Adjusted net income excludes the impact of certain non-operational and non-cash items. Adjusted net income is defined as net income/(loss) attributable to the Company before the impact of other non-operating income / (expense), net, impairment expense on goodwill and intangible assets, restructuring and other costs, accelerated amortization of debt fees, amortization of acquired assets, loss/(gain) on disposal of subsidiaries and other assets, share-based compensation, discrete tax items and the income tax (benefit)/expense on these non-GAAP adjustments. Adjusted net income per share is adjusted net income as defined above divided by adjusted weighted average dilutive shares outstanding. Management believes the removal of certain non-operational and non-cash items from net income enhances shareholders ability to evaluate the Company’s business performance and profitability by improving comparability of operating results across reporting periods.
Unlevered free cash flow is defined as net cash flows provided by/used in operating activities, adjusted for the impact of capital expenditure, payments relating to restructuring and other costs and cash paid for interest. Capital expenditure includes purchases of property plant & equipment and purchases of other intangible assets, including software development costs. Capital expenditure does not include purchases of merchant portfolios. Management believes unlevered free cash flow to be a liquidity measure that provides useful information about the amount of cash generated by the business.
Net leverage is defined as net debt (gross debt less cash and cash equivalents) divided by the last twelve months Adjusted EBITDA. Management believes net leverage is a useful measure of the Company's credit position and progress towards leverage targets.
Management believes the presentation of these non-GAAP financial measures, including Gross Profit, Adjusted EBITDA, Unlevered free cash flow, Adjusted net income, Adjusted net income per share, and Net leverage when considered together with the Company’s results presented in accordance with GAAP, provide users with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of Paysafe’s core operating performance. In addition, management believes the presentation of these non-GAAP financial measures provides useful supplemental information in assessing the Company’s results on a basis that fosters comparability across periods by excluding the impact on the Company’s reported GAAP results of acquisitions and dispositions that have occurred in such periods. However, these non-GAAP measures exclude items that are significant in understanding and assessing Paysafe’s financial results or position. Therefore, these measures should not be considered in isolation or as alternatives to revenue, net income, cash flows from operations or other measures of profitability, liquidity or performance under GAAP.
You should be aware that Paysafe’s presentation of these measures may not be comparable to similarly titled measures used by other companies. In addition, the forward-looking non-GAAP financial measure of Adjusted EBITDA provided herein have not been reconciled to the comparable GAAP measure due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations. We have reconciled the historical non-GAAP financial measures presented herein to their most directly comparable GAAP financial measures. A reconciliation of our forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the adjusting items necessary for such reconciliations that have not yet occurred, are out of our control, or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information, which could be material to future results.
Reconciliation of GAAP Net Income / (Loss) to Adjusted EBITDA
|
|
Three Months Ended |
|
|||||
|
|
|
|
|||||
($ in thousands) |
|
2024 |
|
|
2023 |
|
||
Net income / (loss) |
|
$ |
3,056 |
|
|
$ |
(3,808 |
) |
Income tax expense |
|
|
7,299 |
|
|
|
3,879 |
|
Interest expense, net |
|
|
34,965 |
|
|
|
37,456 |
|
Depreciation and amortization |
|
|
68,310 |
|
|
|
63,547 |
|
Share-based compensation expense |
|
|
9,359 |
|
|
|
7,216 |
|
Impairment expense on goodwill and intangible assets |
|
|
653 |
|
|
|
82 |
|
Restructuring and other costs |
|
|
452 |
|
|
|
1,990 |
|
Loss on disposal of subsidiaries and other assets, net |
|
|
177 |
|
|
|
— |
|
Other income, net |
|
|
(12,355 |
) |
|
|
(2,547 |
) |
Adjusted EBITDA |
|
$ |
111,916 |
|
|
$ |
107,815 |
|
Reconciliation of Operating Cash Flow to Non-GAAP Unlevered Free Cash Flow
|
|
Three Months Ended |
|
|||||
|
|
|
|
|||||
($ in thousands) |
|
2024 |
|
|
2023 (1) |
|
||
Net cash inflows from operating activities |
|
$ |
58,835 |
|
|
$ |
20,014 |
|
Capital expenditure |
|
|
(24,425 |
) |
|
|
(30,368 |
) |
Cash paid for interest |
|
|
31,331 |
|
|
|
28,893 |
|
Payments relating to Restructuring and other costs |
|
|
3,453 |
|
|
|
23,684 |
|
Unlevered Free Cash Flow |
|
$ |
69,194 |
|
|
$ |
42,223 |
|
Adjusted EBITDA |
|
|
111,916 |
|
|
|
107,815 |
|
(1) |
During the fourth quarter of 2023, the Company elected to change its presentation of "Settlement receivables, net" and "Funds payable and amounts due to customers" from operating activities, to present them as financing activities within its Consolidated Statements of Cash Flows. As a result, the reconciling item related to "Movements in customer accounts and other restricted cash" is no longer required in the unlevered free cash flow reconciliation. Comparative amounts have been recast to conform to current period presentation. |
Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit (excluding depreciation and amortization)
|
|
Three Months Ended |
|
|||||
|
|
|
|
|||||
($ in thousands) |
|
2024 |
|
|
2023 |
|
||
Revenue |
|
$ |
417,738 |
|
|
$ |
387,849 |
|
Cost of services (excluding depreciation and amortization) |
|
|
170,373 |
|
|
|
158,939 |
|
Depreciation and amortization |
|
|
68,310 |
|
|
|
63,547 |
|
Gross Profit (1) |
|
$ |
179,055 |
|
|
$ |
165,363 |
|
Depreciation and amortization |
|
|
68,310 |
|
|
|
63,547 |
|
Gross Profit (excluding depreciation and amortization) |
|
$ |
247,365 |
|
|
$ |
228,910 |
|
(1) |
Gross Profit has been calculated as revenue, less cost of services and depreciation and amortization. Gross profit is not presented within the Company's consolidated financial statements. |
Reconciliation of GAAP Net Income / (Loss) to Adjusted Net Income
|
|
Three Months Ended |
|
|||||
|
|
|
|
|||||
($ in thousands) |
|
2024 |
|
|
2023 |
|
||
Net income / (loss) |
|
$ |
3,056 |
|
|
$ |
(3,808 |
) |
Other non operating income, net (1) |
|
|
(9,774 |
) |
|
|
(764 |
) |
Impairment expense on goodwill and intangible assets |
|
|
653 |
|
|
|
82 |
|
Amortization of acquired assets (2) |
|
|
33,603 |
|
|
|
33,673 |
|
Restructuring and other costs |
|
|
452 |
|
|
|
1,990 |
|
Loss on disposal of subsidiaries and other assets, net |
|
|
177 |
|
|
|
— |
|
Share-based compensation expense |
|
|
9,359 |
|
|
|
7,216 |
|
Discrete tax items (3) |
|
|
5,465 |
|
|
|
5,479 |
|
Income tax expense on non-GAAP adjustments (4) |
|
|
(7,685 |
) |
|
|
(10,792 |
) |
Adjusted net income |
|
$ |
35,306 |
|
|
$ |
33,076 |
|
(in millions) |
|
|
|
|
|
|
||
Weighted average shares - diluted |
|
|
62.0 |
|
|
|
61.0 |
|
Adjusted diluted impact |
|
|
0.0 |
|
|
|
0.4 |
|
Adjusted weighted average shares - diluted |
|
|
62.0 |
|
|
|
61.4 |
|
(1) |
Other non-operating income, net primarily consists of income and expenses outside of the Company's operating activities, including, fair value gain / loss on warrant liabilities and derivatives, gain / loss on repurchases of debt, gain / loss on foreign exchange and the release of certain provisions. |
(2) |
Amortization of acquired asset represents amortization expense on the fair value of intangible assets acquired through various Company acquisitions, including brands, customer relationships, software and merchant portfolios. |
(3) |
Discrete tax items mainly represent (a) valuation allowance recorded on deferred tax assets of |
(4) |
Income tax expense on non-GAAP adjustments reflects the tax expense on each taxable adjustment using the current statutory tax rate of the applicable jurisdiction specific to that adjustment. |
Adjusted Net Income per Share
|
Three Months Ended |
|
|||||
|
|
|
|||||
|
2024 |
|
|
2023 |
|
||
Numerator ($ in thousands) |
|
|
|
|
|
||
Adjusted net income - basic |
$ |
35,306 |
|
|
$ |
33,076 |
|
Adjusted net income - diluted |
$ |
35,306 |
|
|
$ |
33,076 |
|
Denominator (in millions) |
|
|
|
|
|
||
Weighted average shares – basic |
|
61.6 |
|
|
|
61.0 |
|
Adjusted weighted average shares – diluted (1) |
|
62.0 |
|
|
|
61.4 |
|
Adjusted net income per share |
|
|
|
|
|
||
Basic |
$ |
0.57 |
|
|
$ |
0.54 |
|
Diluted |
$ |
0.57 |
|
|
$ |
0.54 |
|
(1) |
The denominator used in the calculation of diluted adjusted net income per share for the three months ended |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240510776430/en/
Media
crystal.wright@paysafe.com
+1 (904) 328-7740
Investors
+1 (646) 901-3140
kirsten.nielsen@paysafe.com
Source: