Paysafe Announces Strong First Quarter Results for 2024
Paysafe has reported its financial results for the first quarter of 2024. The company experienced an 8% revenue growth year-over-year, totaling $417.7 million, with a 7% increase on a constant currency basis. Notably, the total payment volume also saw a 7% rise, reaching $36.1 billion.
Turnaround to Profitability
Last quarter marked a significant improvement in profitability, with net income reported at $3.1 million, a stark contrast to the $3.8 million net loss recorded in the same period the previous year. This positive shift to profitability per diluted share moved from a loss of $0.06 to a gain of $0.05.
Adjusted net income for the quarter stood at $35.3 million or $0.57 per diluted share, up from $33.1 million or $0.54 per diluted share year-over-year. Adjusted EBITDA also increased by 4% to $111.9 million, with a 3% rise on a constant currency basis.
Strategic and Operational Developments
Paysafe has continued to expand its market capabilities and reach, as evidenced by several strategic moves:
- The launch of the Pay by Bank solution for U.S. iGaming, facilitating real-time wagers by directly linking bettors to their bank accounts at online sportsbooks.
- A partnership with Xsolla, advancing Paysafe’s white label wallet strategy and enhancing its position in game commerce.
- The expansion into new U.S. states, with iGaming payment processing now active in 33 states and territories, including new launches in Vermont and North Carolina.
Commitment to Sustainability
Reinforcing its dedication to sustainable business practices, Paysafe published its inaugural sustainability report. The report outlines the company’s strategy and commitments across four pillars: Trusted Technology, Engaged Employees, Thriving Society, and Responsible Business Practices.
The company’s balance sheet remains solid with total cash and cash equivalents of $202.1 million and a net leverage ratio that improved to 4.9x. Total debt was slightly reduced, thanks to prudent financial management and favorable foreign exchange movements.
Bruce Lowthers, CEO of Paysafe, expressed optimism about the company’s trajectory.“We are off to a great start this year, delivering 8% year-over-year revenue growth in the first quarter, reinforcing that our strategic initiatives and associated investments are driving momentum in the business and setting us up for long-term success. We remain confident in our financial outlook for this year, which reflects stronger underlying revenue performance, anchored by improved operational execution,” said Lowthers.
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