Paysafe registers net loss of $1.2bn in Q1 2022
Specialized payments platform Paysafe Limited (NYSE:PSFE) today announced its financial results for the first quarter of 2022.
Total revenue for the first quarter of 2022 was $367.7 million, a decrease of 3%, compared to $377.4 million in the prior year period. Excluding a $11.6 million unfavorable impact from year-over-year changes in foreign exchange rates, revenue was approximately flat compared to the prior year period.
Growth from US Acquiring, which increased 10%, was offset by declines in Digital Commerce, which decreased 11%, reflecting unfavorable foreign exchange as well as market headwinds related to gambling regulations in Europe, partially offset by the contribution from acquisitions completed in the last twelve months. Additionally, in the prior year period, Paysafe’s eCash solutions benefited from comparably strong volumes associated with COVID-19 lockdowns in Europe.
Net loss attributable to the company for the first quarter was $1.2 billion, compared to net loss of $60.6 million in the prior year period, reflecting a non-cash impairment charge. This was partially offset by a $66.9 million reduction in share-based compensation due to shares vested on completion of the Transaction in the prior year period.
Additionally, interest expense of $26.0 million decreased by $36.4 million as a result of the company’s debt refinancing completed in 2021.
Adjusted EBITDA for the first quarter was $104.0 million, a decrease of 8%, compared to $113.2 million in the prior year period. Adjusted EBITDA margin decreased to 28.3%, compared to 30.0% in the prior year period, primarily reflecting business mix.
First quarter net cash from operating activities was $503.8 million, compared to $48.7 million in the prior year period. Free cash flow was $59.2 million, compared to $108.5 million in the prior year period.
Izzy Dawood, CFO of Paysafe, commented:
“Paysafe is off to a good start this year, posting first quarter results ahead of our expectations. We are particularly pleased with the strong performance from our US Acquiring business, which delivered double-digit volume, revenue and adjusted EBITDA growth. We are winning across Digital Commerce and the turnaround of the digital wallet business continues to show progress.
Additionally, Paysafe is succeeding in North America iGaming, recently launching in Ontario’s new private market. Despite macro headwinds, we remain confident in our full year outlook supported by continued momentum in US Acquiring and our pipeline across Digital Commerce.”