The earnings call presented strong revenue growth and successful execution of strategic initiatives, including significant enterprise wins and a reduction in net leverage. However, there were challenges with declining EBITDA margins and adjusted net income due to increased tax rates and interest revenue headwinds.

Company Guidance

During the Paysafe Q3 2024 earnings call, the company reported an 8% year-over-year revenue growth to $427 million, with Merchant Solutions and Digital Wallets growing by 11% and 4%, respectively. Adjusted EBITDA increased by 1% to $117.8 million, resulting in a margin expansion of 70 basis points from the first half of 2024. The firm reduced its net leverage ratio to 4.7x, an 8% decrease from Q3 2023. Paysafe reaffirmed its full-year guidance, expecting revenue growth between 7% and 8% and an adjusted EBITDA margin of 27.5% to 28%. The company also highlighted strategic initiatives, including the hiring of 170 new sales representatives, achieving $40 million in revenue from portfolio optimization, and enhancing consumer acquisition strategies. Total volume for the quarter was $37.5 billion, a 7% increase year-over-year, with a decline in adjusted EPS to $0.51, mainly due to tax rate changes. Overall, the call emphasized continued execution on strategic priorities and a strong financial outlook for the remainder of the year.

Revenue and Growth Metrics

Revenue increased 8% year-over-year to $427 million, with Merchant Solutions growing 11% and Digital Wallets growing 4%. Adjusted EBITDA was $117.8 million, up 1% year-over-year.

Strategic Initiatives Success

83 enterprise wins booked, doubling from last year, and 170 new sales reps hired ahead of schedule. Generated over $40 million in revenue from portfolio optimization initiatives.

Digital Wallet Performance

Transactions per active user grew 16% year-over-year, with average revenue per user up 5%. Acquired 1.3 million users in the quarter.

Leverage and Debt Reduction

Net leverage reduced by 8% from Q3 2023 to 4.7x at the end of Q3 2024. Total debt decreased by $39 million from the second quarter.

North American iGaming Revenue Growth

North American iGaming revenue grew over 50%, reflecting merchant wins and industry growth.

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Paysafe (PSFE) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

PSFE Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
May 11, 2021	2021 (Q1)	0.03 / -0.84	―	―	―	―
Aug 16, 2021	2021 (Q2)	0.12 / 0.12	―	―	―	―
Nov 11, 2021	2021 (Q3)	0.02 / -2.33	-0.001	-232800.00% (-2.33)	―	―
Mar 02, 2022	2021 (Q4)	0.31 / 1.56	-0.12	1400.00% (+1.68)	―	―
May 11, 2022	2022 (Q1)	0.26 / 0.43	-0.84	151.43% (+1.27)	―	―
Aug 10, 2022	2022 (Q2)	0.33 / 0.60	0.12	400.00% (+0.48)	―	―
Nov 10, 2022	2022 (Q3)	0.53 / 0.48	-2.329	120.61% (+2.81)
Mar 09, 2023	2022 (Q4)	0.44 / 0.54	1.56	-65.38% (-1.02)
May 16, 2023	2023 (Q1)	0.07 / 0.54	0.432	25.00% (+0.11)
Aug 15, 2023	2023 (Q2)	0.46 / 0.56	0.6	-6.67% (-0.04)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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PSFE Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 13, 2024	$25.47	$19.02	-25.32%
Aug 13, 2024	$19.36	$20.59	+6.35%
May 13, 2024	$15.67	$18.84	+20.23%
Mar 07, 2024	$14.23	$12.53	-11.95%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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