Paysafe Limited (“Paysafe” or the “Company”) (NYSE: PSFE)
(PSFE.WS), a leading specialized payments platform, today announced
its financial results for the third quarter of 2021.
Third Quarter 2021 Financial Highlights (Metrics compared
to third quarter of 2020)
- Total Payment Volume of $31.1 billion, increased 19%
- Revenue of $353.6 million, decreased 1%
- Net loss attributable to the Company of $147.2 million,
compared to net loss of $38.1 million, and inclusive of a non-cash
impairment charge of $322.2 million
- Adjusted EBITDA of $106.4 million, decreased 1%
- Revised outlook for full year 2021
Philip McHugh, CEO of Paysafe, stated, “In the third quarter we
reported Adjusted EBITDA in line with our expectations, despite
softer than expected revenue, reflecting both market and
performance challenges within the digital wallet business. While
the recent trend will drive an adjusted financial outlook, we
continue to see strong momentum across the business. Our position
to win in high growth and disruptive markets including online
sports betting and crypto continues to accelerate, coupled with
strong delivery against our cost and technology platform
targets.”
Strategic and Operational Highlights
- 50% year-to-date revenue growth in North American iGaming
- Announced several new and expanded U.S. iGaming partnerships,
including Fubo Gaming, PlayUp, and SuperBook Sports
- Continued rollout of Skrill USA digital wallet revamp designed
to make it easier and faster than ever to wager online; pilot now
expanded to 11 iGaming brands
- Expanded eCash partnership with Incomm, supporting financial
inclusion and enabling cash consumers to pay bills at more than
4,600 Walmart stores across the U.S.
- Acquired German fintech company, viafintech, positioning
Paysafe as an essential payments partner to fast-growing neobanks
around the world
- Announced acquisition of SafetyPay and closed acquisition of
PagoEfectivo, establishing Paysafe as the leading provider of open
banking solutions in Latin America
- Exceeding cost savings program targets, delivering $26 million
year-to-date
Third Quarter 2021 Summary of Consolidated Results
Three months ended
Nine months ended
September 30,
September 30,
($ in thousands) (unaudited)
2021
2020
2021
2020
Revenue
$
353,585
$
355,505
$
1,115,352
$
1,056,204
Gross Profit (excluding depreciation and
amortization)
$
208,733
$
220,153
$
663,685
$
665,219
Net loss attributable to the Company
$
(147,200
)
$
(38,127
)
$
(201,250
)
$
(123,320
)
Adjusted EBITDA
$
106,405
$
107,280
$
338,439
$
330,425
Adjusted EBITDA margin
30.1
%
30.2
%
30.3
%
31.3
%
Total revenue for the third quarter of 2021 was $353.6 million,
a decrease of 1%, compared to $355.5 million in the prior year.
Growth was partially offset by a $7.7 million impact of a business
divestiture (Pay Later) in October 2020. Excluding Pay Later,
revenue increased 2%. Revenue performance compared to the prior
year also reflects the impact of actions taken to improve the
Company’s overall risk/reward profile in certain markets and
channels, specifically related to the exit of certain clients in
the direct marketing vertical within the Integrated Processing
segment, which had an unfavorable impact on growth. Excluding the
divested business and the direct marketing vertical, growth from
all other revenue was approximately 5% compared to the prior year,
driven by the Integrated Processing segment, including growth from
both U.S. acquiring and integrated eCommerce, as well as strong
growth from the eCash segment. Growth was partially offset by a
decline from the Digital Wallet segment.
Net loss attributable to the Company for the third quarter was
$147.2 million, compared to a loss of $38.1 million in the prior
year. Net loss included a non-cash impairment charge of $322.2
million to reduce the carrying value of intangible assets in the
Digital Wallet segment. This was partially offset by a fair value
gain of $94.3 million on the measurement of the warrant liability
at period-end. Results also reflect a $23.3 million decrease in
interest expense related to the Company’s debt refinancing which
was completed in June of 2021 as well as an income tax benefit of
$76.9 million compared to $14.3 million in the prior year.
Adjusted EBITDA for the third quarter was $106.4 million, a
decrease of 1%, compared to $107.3 million in the prior year.
Adjusted EBITDA margin was 30.1%, compared to 30.2% in the prior
year.
Third quarter net cash from operating activities was $51.6
million, an increase of 37%, compared to $37.8 million in the prior
year. Free cash flow was $70.2 million, compared to $58.8 million
in the prior year.
Summary of Segment Results
Three months ended
Nine months ended
September 30,
YoY
September 30,
YoY
($ in thousands) (unaudited)
2021
2020
change
2021
2020
change
Revenue:
Integrated Processing
$
186,889
$
180,557
3.5
%
$
555,034
$
545,171
1.8
%
Digital Wallet
$
83,662
$
98,543
-15.1
%
$
275,856
$
298,144
-7.5
%
eCash Solutions
$
90,175
$
81,983
10.0
%
$
306,967
$
227,050
35.2
%
Intersegment
$
(7,141
)
$
(5,578
)
28.0
%
$
(22,505
)
$
(14,161
)
58.9
%
Total Revenue
$
353,585
$
355,505
-0.5
%
$
1,115,352
$
1,056,204
5.6
%
Adjusted EBITDA:
Integrated Processing
$
44,432
$
48,674
-8.7
%
$
135,123
$
155,938
-13.3
%
Digital Wallet
$
39,931
$
48,136
-17.0
%
$
124,631
$
142,135
-12.3
%
eCash Solutions
$
36,346
$
30,832
17.9
%
$
127,450
$
80,996
57.4
%
Unallocated Corporate
$
(14,304
)
$
(20,362
)
-29.8
%
$
(48,765
)
$
(48,644
)
0.2
%
Total Adjusted EBITDA
$
106,405
$
107,280
-0.8
%
$
338,439
$
330,425
2.4
%
Adjusted EBITDA margin:
Integrated Processing
23.8
%
27.0
%
(320) bps
24.3
%
28.6
%
(430) bps
Digital Wallet
47.7
%
48.8
%
(110) bps
45.2
%
47.7
%
(250) bps
eCash Solutions
40.3
%
37.6
%
270 bps
41.5
%
35.7
%
580 bps
Total Adjusted EBITDA margin
30.1
%
30.2
%
(10) bps
30.3
%
31.3
%
(90) bps
Financial Guidance
For full year 2021, Paysafe is now anticipating revenue, gross
profit and Adjusted EBITDA to be in the ranges provided below.
These revised expectations primarily reflect the impact of the
following developments:
- Gambling regulations and softness in key European markets and
performance challenges impacting the Digital Wallet segment
- The modified scope and timing of new eCommerce customer
agreements relative to the Company’s original expectations for
these agreements
As described in more detail in the supplemental presentation to
this press release, Paysafe is taking actions to address these
challenges and to deliver on its growth opportunities, but the
Company expects these headwinds to impact the Company’s growth and
profitability in 2021.
($ in millions)
Q4 2021
Full Year 2021 - prior
Full Year 2021 -
updated
Revenue
$355 – $365
$1,530 – $1,550
$1,470 – $1,480
Gross Profit (excluding depreciation and
amortization)
$205 – $215
$930 – $970
$870 – $880
Adjusted EBITDA
$90– $100
$480 – $495
$425 – $435
Webcast and Conference Call
Paysafe will host a live webcast to discuss the results today at
8:30 a.m. (ET). The webcast and supplemental information can be
accessed on the investor relations section of the Paysafe website
at ir.paysafe.com. An archive will be available after the
conclusion of the live event and will remain available via the same
link for one year.
Time
Thursday, November 11, 2021 at
8:30 a.m. ET
Hosts
Philip McHugh, Chief Executive
Officer and Director
Izzy Dawood, Chief Financial
Officer
Webcast
Go to the Investor Relations
section of the Paysafe website to listen and view slides
Dial in
877-407-3037 (U.S. toll-free)
215-268-9852 (International)
Basis of Presentation
The financial information for the three and nine months ended
September 30, 2021 included in this press release reflect, and is
based upon, information of Paysafe Limited after giving effect to
the transaction with Foley Trasimene Acquisition Corporation II
(“FTAC”) completed on March 30, 2021 (as further discussed below
under Reorganization and Recapitalization (the “Transaction”). The
comparative financial information for the three and nine months
ended September 30, 2020 is based upon information of Pi Jersey
Holdco 1.5 Limited (the “Accounting Predecessor”), prior to giving
effect to the Transaction. Prior to the Transaction, Paysafe
Limited had no material operations, assets or liabilities.
As of December 31, 2020, an out of period adjustment related to
the period ended March 31, 2020 was identified and corrected for
the impairment of certain Digital Wallet’s intangible assets. This
resulted in the overstatement of Intangible assets, net and
understatement of Impairment expense on intangible assets, net of
$21.4 million ($15.8 million net of tax), respectively, as of March
31, 2020. The prior period results have been revised to reflect the
correction of this misstatement.
Reorganization and Recapitalization (the
“Transaction”)
On March 30, 2021, Paysafe completed the previously announced
transaction with FTAC, a special purpose acquisition company, which
resulted in Paysafe Limited acquiring, and becoming the successor
to, the Accounting Predecessor. Simultaneously, it completed the
merger with FTAC with an exchange of the shares and warrants issued
by Paysafe Limited for those of FTAC. The acquisition was accounted
for as a capital reorganization followed by the merger with FTAC,
which was treated as a recapitalization. Following the transaction,
both the Accounting Predecessor and FTAC are indirect wholly owned
subsidiaries of Paysafe Limited. Upon completion of the
Transaction, the common stock and warrants began trading on the New
York Stock Exchange under the ticker symbols “PSFE” and “PSFE WS,”
respectively, on March 31, 2021.
About Paysafe
Paysafe Limited (“Paysafe”) (NYSE:PSFE) (PSFE.WS) is a leading
specialized payments platform. Its core purpose is to enable
businesses and consumers to connect and transact seamlessly through
industry-leading capabilities in payment processing, digital
wallet, and online cash solutions. With over 20 years of online
payment experience, an annualized transactional volume of US $100
billion in 2020, and approximately 3,400 employees located in 12+
global locations, Paysafe connects businesses and consumers across
70 payment types in over 40 currencies around the world. Delivered
through an integrated platform, Paysafe solutions are geared toward
mobile-initiated transactions, real-time analytics and the
convergence between brick-and-mortar and online payments. Further
information is available at www.paysafe.com.
Forward-looking Statements
This press release includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are provided for illustrative purposes
only and are not intended to serve as, and must not be relied on by
any investor as, a guarantee, an assurance, a prediction or a
definitive statement of fact or probability. Paysafe Limited’s
(“Paysafe,” “PSFE” or the “Company”) actual results may differ from
their expectations, estimates, and projections and, consequently,
you should not rely on these forward-looking statements as
predictions of future events. Words such as “anticipate,” “appear,”
“approximate,” “believe,” “budget,” “continue,” “could,”
“estimate,” “expect,” “forecast,” “foresee,” “guidance,” “intends,”
“may,” “might,” “plan,” “possible,” “potential,” “predict,”
“project,” “seek,” “should,” “would” and variations of such words
and similar expressions (or the negative version of such words or
expressions) may identify forward-looking statements, but the
absence of these words does not mean that a statement is not
forward-looking. These forward-looking statements include, without
limitation, Paysafe’s expectations with respect to future
performance.
These forward-looking statements involve significant risks and
uncertainties that could cause the actual results to differ
materially, and potentially adversely, from those expressed or
implied in the forward-looking statements. While the Company
believes its assumptions concerning future events are reasonable, a
number of factors could cause actual results to differ materially
from those projected, including, but not limited to: cyberattacks
and security vulnerabilities; complying with and changes in money
laundering regulations, financial services regulations, consumer
and business privacy and data use regulations or other regulations
in Bermuda, the UK, Ireland, Switzerland, the United States, Canada
and elsewhere; changes in our relationships with banks, payment
card networks, issuers and financial institutions; risk related to
processing online payments for merchants and customers engaged in
the online gambling and foreign exchange trading sectors; risks
related to our focus on specialized and high-risk verticals; risks
related to becoming an unwitting party to fraud or be deemed to be
handling proceeds of crimes being committed by customers; our
ability to satisfy closing conditions related to acquisitions and
risks associated with the integration of acquisitions; the effects
of chargebacks, merchant insolvency and consumer deposit settlement
risk; changes to our continued financial institution sponsorship;
failure to hold, safeguard or account accurately for merchant or
customer funds; risks related to the availability, integrity and
security of internal and external IT transaction processing systems
and services; failure of third parties to comply with contractual
obligations; changes and compliance with payment card network
operating rules; substantial and increasingly intense competition
worldwide in the global payments industry; the COVID-19 pandemic,
including the resulting global economic uncertainties; risks
related to developing and maintaining effective internal controls
over financial reporting; managing our growth effectively,
including growing our revenue pipeline; any difficulties
maintaining a strong and trusted brand; keeping pace with rapid
technological developments; risks associated with the significant
influence of our principal shareholders; terrorism; and other
factors included in the “Risk Factors” in our Form 20-F and in
other filings we make with the SEC, which are available at
https://www.sec.gov. Readers are cautioned not to place undue
reliance upon any forward-looking statements, which speak only as
of the date made. The Company expressly disclaims any obligations
or undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change
in their expectations with respect thereto or any change in events,
conditions, or circumstances on which any statement is based,
except as required by law.
Paysafe Limited Condensed
Consolidated Balance Sheets (unaudited)
($ in thousands)
September 30, 2021
December 31, 2020
Assets
Current assets
Cash and cash equivalents
$
262,267
$
387,616
Customer accounts and other restricted
cash, net of allowance for credit losses of $4,350 and $4,096,
respectively
1,201,801
1,376,236
Accounts receivable, net of allowance for
credit losses of $10,317 and $25,035, respectively
131,220
117,410
Settlement receivables, net of allowance
credit losses of $4,057 and $5,859, respectively
152,364
223,083
Prepaid expenses and other current
assets
68,872
63,252
Related party receivables – current
6,459
6,271
Contingent consideration receivable –
current
2,896
26,668
Total current assets
1,825,879
2,200,536
Deferred tax assets
17,236
17,669
Property, plant and equipment, net
15,539
18,691
Operating lease right-of-use assets
33,035
40,187
Intangible assets, net
1,163,072
1,524,817
Goodwill
3,536,623
3,481,816
Contingent consideration receivable –
non-current
—
125,107
Other assets – noncurrent
1,670
508
Total non-current assets
4,767,175
5,208,795
Total assets
$
6,593,054
$
7,409,331
Liabilities and equity
Current liabilities
Accounts payable and other liabilities
$
236,974
$
231,724
Short-term debt
6,280
15,400
Funds payable and amounts due to
customers
1,335,568
1,552,187
Operating lease liabilities – current
8,470
8,969
Income taxes payable
19,873
8,161
Contingent and deferred consideration
payable – current
10,647
5,820
Liability for share-based compensation –
current
5,835
Derivative financial liabilities,
current
—
2,651
Total current liabilities
1,623,647
1,824,912
Non-current debt
2,190,938
3,246,871
Related party payables – non-current
—
195,228
Operating lease liabilities –
non-current
28,220
34,540
Deferred tax liabilities
34,603
122,519
Warrant liabilities
99,717
—
Derivative financial liabilities –
non-current
—
47,547
Liability for share-based compensation –
non-current
5,882
—
Contingent and deferred consideration
payable – non-current
3,112
3,742
Other liabilities – non-current
969
969
Total non-current liabilities
2,363,441
3,651,416
Total liabilities
3,987,088
5,476,328
Commitments and contingent liabilities
Shareholders' equity in the
Company
2,468,187
1,921,705
Non-controlling interest
137,779
11,298
Total shareholders' equity
2,605,966
1,933,003
Total liabilities and shareholders'
equity
$
6,593,054
$
7,409,331
Paysafe Limited Condensed
Consolidated Statements of Operations (unaudited)
For the three months ended
September 30,
For the nine months ended
September 30,
($ in thousands)
2021
2020
2021
2020
Revenue
$
353,585
$
355,505
$
1,115,352
$
1,056,204
Cost of services (excluding depreciation
and amortization)
144,852
135,352
451,667
390,985
Selling, general and administrative
111,041
112,873
418,076
334,794
Depreciation and amortization
61,832
66,141
197,408
203,132
Impairment expense on intangible
assets
322,210
44,401
324,145
123,804
Restructuring and other costs
14,833
505
22,321
10,511
(Gain) / loss on disposal of subsidiary
and other assets, net
—
98
(28
)
359
Operating loss
(301,183
)
(3,865
)
(298,237
)
(7,381
)
Other income / (expense), net
96,490
(6,484
)
175,573
(31,062
)
Interest expense, net
(19,272
)
(42,578
)
(144,291
)
(123,332
)
Loss before taxes
(223,965
)
(52,927
)
(266,955
)
(161,775
)
Income tax benefit
(76,859
)
(14,305
)
(66,105
)
(38,073
)
Net loss
$
(147,106
)
$
(38,622
)
$
(200,850
)
$
(123,702
)
Less: net income / (loss) attributable to
non-controlling interest
94
(495
)
400
(382
)
Net loss attributable to the
Company
$
(147,200
)
$
(38,127
)
$
(201,250
)
$
(123,320
)
Net loss
$
(147,106
)
$
(38,622
)
$
(200,850
)
$
(123,702
)
Other comprehensive income / (loss), net
of tax of $0:
Loss / (gain) on foreign currency
translation
6,602
(6,568
)
2,144
9,074
Total comprehensive loss
$
(153,708
)
$
(32,054
)
$
(202,994
)
$
(132,776
)
Less: comprehensive income / (loss)
attributable to non-controlling interest
94
(495
)
400
(382
)
Total comprehensive loss attributable
to the Company
$
(153,802
)
$
(31,559
)
$
(203,394
)
$
(132,394
)
Paysafe Limited Condensed
Consolidated Statements of Cash Flow (unaudited)
Nine Months Ended September
30,
($ in thousands)
2021
2020
Cash flows from operating
activities
Net loss
$
(200,850
)
$
(123,702
)
Adjustments for non-cash items:
Depreciation and amortization
197,408
203,132
Unrealized foreign exchange gain
(3,167
)
(8,843
)
Deferred tax benefit
(94,255
)
(39,324
)
Interest expense, net
81,494
5,552
Share based compensation
92,830
—
Other (income) / expense, net
(166,818
)
14,613
Impairment expense on intangible
assets
324,145
123,804
Allowance for credit losses and other
13,611
42,518
(Gain) / loss on disposal of subsidiary
and other assets, net
(28
)
359
Non-cash lease expense
7,192
7,847
Movements in working capital:
Accounts receivable, net
(26,862
)
(47,165
)
Prepaid expenses, other current assets,
and related party receivables
(8,969
)
7,522
Settlement receivables, net
60,542
10,636
Accounts payable, other liabilities, and
related party payables
(6,850
)
(18,866
)
Funds payable and amounts due to
customers
(176,091
)
3,322
Income tax payable
(732
)
(8,599
)
Net cash flows from operating
activities
92,600
172,806
Cash flows in investing
activities
Purchase of property, plant &
equipment
(4,452
)
(2,303
)
Purchase of merchant portfolios
(48,533
)
(3,241
)
Purchase of other intangible assets
(57,083
)
(43,356
)
Net cash outflow on acquisition of
subsidiary
(119,177
)
(9,137
)
Net cash flows used in investing
activities
(229,245
)
(58,037
)
Cash flows from financing
activities
Net cash inflow from reorganization and
recapitalization
1,167,874
—
Payment of equity issuance costs
(151,455
)
—
Proceeds from loans and borrowings
2,241,081
270,050
Repayments of loans and borrowings
(3,295,658
)
(323,264
)
Payment of debt issuance costs
(5,930
)
-
Payments under derivative financial
instruments, net
(48,457
)
(3,259
)
Cash outflow on foreign exchange forward
contract
(6,504
)
—
Proceeds under line of credit
450,000
346,867
Repayments under line of credit
(450,000
)
(328,230
)
Contingent consideration received
7,942
—
Contingent consideration paid
(4,497
)
(4,359
)
Net cash flows used in financing
activities
(95,604
)
(42,195
)
Effect of foreign exchange rate
changes
(67,535
)
45,485
(Decrease) / increase in cash and cash
equivalents, including customer accounts and other restricted cash
during the period
$
(299,784
)
$
118,059
Less: Net decrease in cash and cash
equivalents classified within current assets held for sale
$
—
$
(2,250
)
Net (decrease) / increase in cash and
cash equivalents, including customer accounts and other restricted
cash during the year
$
(299,784
)
$
115,809
Cash and cash equivalents, including
customer accounts and other restricted cash at beginning of the
period (1)
1,763,852
1,382,361
Cash and cash equivalents at end of the
period, including customer accounts and other restricted
cash
$
1,464,068
$
1,498,170
Nine Months Ended September
30,
2021
2020
Cash and cash equivalents
$
262,267
$
298,800
Customer accounts and other restricted
cash, net
1,201,801
1,199,370
Total cash and cash equivalents,
including customer accounts and other restricted cash, net
$
1,464,068
$
1,498,170
Non-GAAP Financial Measures
To supplement the Company’s condensed consolidated financial
statements presented in accordance with generally accepted
accounting principles, or GAAP, the company uses non-GAAP measures
of certain components of financial performance. This includes Gross
Profit (excluding depreciation and amortization), Gross Profit
Margin (excluding depreciation and amortization), Adjusted EBITDA,
Adjusted EBITDA margin, Free cash flow and Free cash flow
conversion, which are supplemental measures that are not required
by, or presented in accordance with, accounting principles
generally accepted in the United States (“U.S. GAAP”).
Gross Profit (excluding depreciation and amortization) is
defined as revenue less cost of services (excluding depreciation
and amortization). Gross Profit Margin (excluding depreciation and
amortization) is defined as Gross Profit (excluding depreciation
and amortization) as a percentage of revenue. Management believes
Gross Profit to be a useful profitability measure to assess the
performance of our businesses and ability to manage cost.
Adjusted EBITDA is defined as net income/(loss) before the
impact of income tax (benefit)/expense, interest expense, net,
depreciation and amortization, share based compensation, impairment
expense on intangible assets, restructuring and other costs,
loss/(gain) on disposal of a subsidiaries and other assets, net,
and other income/(expense), net. These adjustments also include
certain costs and transaction items that are not reflective of the
underlying operating performance of the Company. Adjusted EBITDA
margin is defined as Adjusted EBITDA as a percentage of Revenue.
Management believes Adjusted EBITDA to be a useful profitability
measure to assess the performance of our businesses and improves
the comparability of operating results across reporting
periods.
Free cash flow is defined as net cash flows provided by/used in
operating activities, adjusted for the impact of capital
expenditure, payments relating to restructuring and other costs,
cash paid for interest and movements in customer accounts and other
restricted cash. Capital expenditure includes purchases of property
plant & equipment and purchases of other intangible assets,
including software development costs. Capital expenditure does not
include purchases of merchant portfolios. Free cash flow conversion
is defined as free cash flow as a percentage of Adjusted EBITDA.
Management believes free cash flow to be a liquidity measure that
provides useful information about the amount of cash generated by
the business.
Management believes the presentation of these non-GAAP financial
measures, including Gross Profit, Gross Profit Margin, Adjusted
EBITDA and Adjusted EBITDA margin, when considered together with
the Company’s results presented in accordance with GAAP, provide
users with useful supplemental information in comparing the
operating results across reporting periods by excluding items that
are not considered indicative of Paysafe’s core operating
performance. In addition, management believes the presentation of
these non-GAAP financial measures provides useful supplemental
information in assessing the Company’s results on a basis that
fosters comparability across periods by excluding the impact on the
Company’s reported GAAP results of acquisitions and dispositions
that have occurred in such periods. However, these non-GAAP
measures exclude items that are significant in understanding and
assessing Paysafe’s financial results or position. Therefore, these
measures should not be considered in isolation or as alternatives
to revenue, net income, cash flows from operations or other
measures of profitability, liquidity or performance under GAAP.
You should be aware that Paysafe’s presentation of these
measures may not be comparable to similarly titled measures used by
other companies. In addition, the forward-looking non-GAAP
financial measures of Adjusted EBITDA and Gross Profit provided
herein have not been reconciled to comparable GAAP measures due to
the inherent difficulty in forecasting and quantifying certain
amounts that are necessary for such reconciliations. We have
reconciled the historical non-GAAP financial measures presented
herein to their most directly comparable GAAP financial measures. A
reconciliation of our forward-looking non-GAAP financial measures
to their most directly comparable GAAP financial measures cannot be
provided without unreasonable effort because of the inherent
difficulty of accurately forecasting the occurrence and financial
impact of the adjusting items necessary for such reconciliations
that have not yet occurred, are out of our control, or cannot be
reasonably predicted. For the same reasons, we are unable to
address the probable significance of the unavailable information,
which could be material to future results.
Reconciliation of GAAP Net Loss to
Non-GAAP Adjusted EBITDA
Three months ended
Nine months ended
September 30,
September 30,
($ in thousands)
2021
2020
2021
2020
Net Loss
$
(147,106
)
$
(38,622
)
$
(200,850
)
$
(123,702
)
Income tax benefit
(76,859
)
(14,305
)
(66,105
)
(38,073
)
Interest expense, net
19,272
42,578
144,291
123,332
Depreciation and amortization
61,832
66,141
197,408
203,132
Share based compensation expense
8,713
—
92,830
—
Impairment expense on intangible
assets
322,210
44,401
324,145
123,804
Restructuring and other costs
14,833
505
22,321
10,511
Loss / (gain) on disposal of subsidiaries
and other assets, net
—
98
(28
)
359
Other (income) / expense, net
(96,490
)
6,484
(175,573
)
31,062
Adjusted EBITDA
$
106,405
$
107,280
$
338,439
$
330,425
Adjusted EBITDA Margin
30.1
%
30.2
%
30.3
%
31.3
%
Reconciliation of Operating Cash Flow
to Non-GAAP Free Cash Flow
Three months ended
Nine months ended
September 30,
September 30,
($ in thousands)
2021
2020
2021
2020
Net cash inflows from operating
activities
$
51,590
$
37,764
$
92,600
$
172,806
Capital Expenditure
(22,914
)
(15,903
)
(61,535
)
(45,659
)
Cash paid for interest
6,933
59,934
62,797
117,780
Payments relating to Restructuring and
other costs
8,035
2,776
12,215
14,900
Movement in Customer Accounts and other
restricted cash
26,508
(25,750
)
127,199
(20,381
)
Free Cash Flow
$
70,152
$
58,821
$
233,276
$
239,446
Adjusted EBITDA
106,405
107,280
338,439
330,425
Free Cash Flow Conversion
66
%
55
%
69
%
72
%
Reconciliation of GAAP Gross Profit to
Non-GAAP Gross Profit (excluding depreciation and
amortization)
Three months ended
Nine months ended
September 30,
September 30,
($ in thousands)
2021
2020
2021
2020
Revenue
$
353,585
$
355,505
$
1,115,352
$
1,056,204
Cost of services (excluding depreciation
and amortization)
144,852
135,352
451,667
390,985
Depreciation and amortization
61,832
66,141
197,408
203,132
Gross Profit (1)
$
146,901
$
154,012
$
466,277
$
462,087
Depreciation and amortization
61,832
66,141
197,408
203,132
Gross Profit (excluding depreciation
and amortization)
$
208,733
$
220,153
$
663,685
$
665,219
(1)
Gross Profit has been calculated as
revenue, less cost of services and depreciation and amortization.
Gross profit is not presented within the Company's consolidated
financial statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211111005470/en/
Media Kate Aldridge Paysafe kate.aldridge@paysafe.com +44 750
079 7547
Investors Kirsten Nielsen Paysafe +1 (646) 901-3140
kirsten.nielsen@paysafe.com
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