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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.
Revenue by Segment
Revenue by Geographic Location
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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