Paysafe has released its financial report for the
second quarter of 2024, highlighting a 9% increase in revenue to $439.9 million
compared to the same period last year. According to the company’s statement,
this growth has led the payment platform to revise its full-year revenue
forecast upwards.
Strong Q2 Performance
The company’s total payment volume reached $38.1
billion, marking a 7% increase year-over-year. Although Paysafe recorded a net
loss of $1.4 million, this was an improvement from the $1.8 million loss in the
same quarter last year.
Adjusted net income grew to $36.3 million, or $0.59
per diluted share, up from $34.7 million, or $0.56 per diluted share, a year
ago. Adjusted EBITDA also experienced a modest rise of 5%, reaching $119
million.
Commenting about the strong performance, Paysafe‘s
CEO, Bruce Lowthers, said: “Given our robust performance in the first half
of the year, we are raising our revenue guidance for 2024 to a growth range of
7% to 8%.” Lowthers also highlighted a 125 basis point increase at the
midpoint from their original guidance.
Focus on iGaming and Partnerships
Paysafe’s growth in iGaming revenue remains a key
driver, bolstered by deals signed in the latter half of 2023 and the expansion
of online gambling in new US states. The company has also continued to optimize
its portfolio, focusing on reducing risk and improving earnings quality.
Besides that, Paysafe has reportedly been active in capital
returns, repurchasing 686,396 shares for $11.0 million. The company’s net
leverage reportedly decreased to 4.8x as of June 30, 2024, down from 5.0x at
the end of 2023, reflecting improved financial health.
In Q1 earnings, Paysafe posted strong performance and growth across key business segments. Revenue increased 8% year-over-year (YoY), reaching $417.7 million. On a constant currency basis, revenue expanded by 7%. Paysafe’s adjusted EBITDA was $111.9 million, marking
a 4% increase from the previous year. Adjusted for currency fluctuations, the
growth in adjusted EBITDA was 3%.
Additionally, Paysafe partnered with Alchemy Pay, a fiat-crypto payment solution provider, last month to offer users a range of payment methods for purchasing cryptocurrencies. This step aimed to boost crypto transaction accessibility.
This article was written by Jared Kirui at www.financemagnates.com.
