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Dec 31, 2024
Paysafe Q4 2024 Earnings Report
Paysafe reported a 1% revenue increase and a net income turnaround in Q4 2024.
Key Takeaways
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.
Paysafe
Paysafe
Paysafe Revenue by Segment
Paysafe Revenue by Geographic Location
Revenue by Segment
Merchant Solutions Revenue
CapyFin.comDigital Wallets Revenue
CapyFin.comRevenue by Geographic Location
Global Revenue
CapyFin.com 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%.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income