NYSE$PSFE

Paysafe Limited · Q4 2024 earnings

Q4 2024 earnings · · Before market open · Investor relations

Briefing

Paysafe reported a 1% revenue increase and a net income turnaround in Q4 2024.

Paysafe's Q4 2024 revenue rose to $420.1 million, a 1% increase year-over-year. Net income turned positive at $33.5 million, compared to a loss of $12.1 million in Q4 2023, mainly due to a gain on foreign exchange and a tax benefit. However, adjusted EBITDA fell 15% to $103.3 million due to increased credit losses. Adjusted EPS decreased to $0.48 from $0.66 in the prior year.

  • Revenue grew 1% to $420.1 million, with a 2% increase on a constant currency basis.
  • Net income reached $33.5 million, reversing a loss of $12.1 million in Q4 2023.
  • Adjusted EBITDA declined 15% to $103.3 million due to higher credit losses.
  • Total payment volume increased 12% to $40.0 billion.

Headline financials

Total Revenue

$420M

Previous: $415M+1.3%
EPS (adj)

$0.48

Previous: $0.66-27.3%
Free Cash Flow

$70.5M

No prior period
Net Income

$33.5M

Previous: -$12.1M+376.3%
Operating Income

$29.5M

Previous: $49.5M-40.4%
Gross Profit

$237M

Previous: $175M+35.5%

Revenue & EPS history

Paysafe · Revenue · Quarterly

$420M

Q4 2024+1.3%vs Q4 2023
Beat estimate in 6 of 13 quarters(46%)
ActualEstimate

Forward guidance

Paysafe expects 0% to 2% reported revenue growth in FY25, with an adjusted EBITDA margin of 27.1% to 27.6%. The company aims to reduce net leverage to 3.5x by 2026 while expanding organic revenue growth by 6.5% to 8.0%.

Tailwinds

  • Organic revenue growth expected between 6.5% and 8.0%.
  • Adjusted EBITDA expected to grow in the mid-teens percentage range.
  • Strong free cash flow generation anticipated in FY25.
  • Expansion in e-commerce and digital wallets expected to drive growth.
  • Continued cost optimization initiatives to improve profitability.

Headwinds

  • Headwinds from the disposed business may impact revenue growth.
  • Foreign exchange fluctuations could present challenges.
  • Interest revenue expected to decline slightly.
  • Competitive pressures in the payments industry remain high.
  • Potential regulatory risks in key markets.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

-2.5%

Avg return

Earnings day

-5.9%

Avg return

5 days after

-7.4%

Avg return

30 days after

45%

9 / 20 earnings

Positive

+24.6%

Q3 2022

Best reaction

-38.1%

Q3 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+20.6%-13.4%-17.7%
Q2 2025+17.1%+16.4%+22.3%
Q1 2025-15.2%-21.8%-20.6%
Q4 2024-18.6%-17.0%-22.2%
Q3 2024-29.0%-33.0%-26.8%
Q1 2024+24.1%+19.7%+22.3%
Q4 2023-14.5%-9.7%+12.6%
Q3 2023+24.4%+19.0%+8.9%
Q2 2023+15.1%+4.7%+13.2%
Q1 2023-17.5%-23.8%-23.5%
Q4 2022-5.7%-9.4%-23.1%
Q3 2022+24.6%+35.6%+6.8%
Q2 2022-5.5%-2.8%-16.6%
Q1 2022-12.3%-0.4%+11.0%
Q4 2019+2.8%-0.3%-20.8%
Q4 2020+2.8%-0.3%-20.8%
Q4 2021+9.7%-3.8%+22.8%
Q3 2021-38.1%-39.1%-45.3%
Q2 2021-16.6%-19.2%-18.4%
Q1 2021-18.3%-20.0%-12.8%
Q3 2020
Q2 2020
Q1 2020

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