Paysafe Limited (“Paysafe” or the “Company”) (NYSE:PSFE)
(PSFE.WS), a leading specialized payments platform, today announced
its financial results for the second quarter of 2021.
Second Quarter 2021 Financial Highlights (metrics
compared to second quarter of 2020)
- Total Payment Volume of $32.3 billion, increased 41%
- Revenue of $384.3 million, increased 13%
- Net income attributable to the Company of $6.6 million,
compared to net loss of $15.9 million
- Adjusted EBITDA of $118.8 million, increased 8%
- Reaffirmed 2021 full year outlook
Philip McHugh, CEO of Paysafe, stated, “We are pleased with the
continued momentum Paysafe exhibited over the second quarter with
impressive growth and several key wins across iGaming and other
attractive digital commerce verticals, including crypto. Paysafe
also continues to drive value across the other pillars of our
strategy, including strong execution on our cost program and our
recently announced acquisitions in Latin America, creating the
largest open banking solution in the region. In total, we remain
confident in our 2021 outlook and the years ahead as we continue to
see the combination of our eCommerce gateway, digital wallets,
online banking, and eCash solutions as a true differentiator in the
market.”
Strategic and Operational Highlights
- Excluding the direct marketing vertical and a 2020 business
divestiture, growth from all other revenue was 23% compared to the
prior year
- Continued strong momentum in North American iGaming, including
48% revenue growth; piloting enhanced Skrill digital wallet for
U.S. iGaming with eight major brands
- Expanded digital commerce across attractive verticals including
digital goods (e.g., eCash live on Microsoft Store on Xbox), crypto
(e.g., added 22 new cryptocurrencies to Skrill digital wallet),
financial services (multiple eCash wins) and travel (e.g., launched
safeguarding solution for travel industry)
- 68% volume growth in U.S. Acquiring compared to the prior
year
- Delivered on transformation initiatives, including $17 million
of cost savings achieved year to date of approximately $30 million
targeted for 2021
- Announced acquisitions of PagoEfectivo and SafetyPay, leading
open banking solutions in Latin America
- Appointment of Mark Brooker brings deep iGaming experience and
further strengthens Paysafe’s Board
Basis of Presentation
The financial information for the three and six months ended
June 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 six months
ended June 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 ($15.8 million net of tax), respectively, as of March
31, 2020. The prior period results have been revised to reflect the
correction of this misstatement.
Second Quarter 2021 Summary of Consolidated Results
Three months ended
Six months ended
June 30,
June 30,
($ in thousands) (unaudited)
2021
2020
2021
2020
Revenue
$
384,343
$
341,034
$
761,767
$
700,699
Gross Profit (excluding depreciation and
amortization)
$
228,565
$
214,789
$
454,952
$
445,066
Net income / (loss) attributable to the
Company
$
6,597
$
(15,901
)
$
(54,050
)
$
(85,193
)
Adjusted EBITDA
$
118,804
$
110,375
$
232,034
$
223,145
Adjusted EBITDA margin
30.9
%
32.4
%
30.5
%
31.8
%
Total revenue for the second quarter of 2021 was $384.3 million,
an increase of 13%, compared to $341.0 million in the prior year.
Growth was partially offset by an $8.8 million impact of a business
divestiture (Pay Later) in October 2020. Excluding Pay Later,
revenue increased 16%. 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, which had an unfavorable impact on
growth.
Excluding the divested business and the direct marketing
vertical, growth from all other revenue was approximately 23%
compared to the prior year, reflecting growth from all three
segments. In eCash Solutions, growth was supported by extended
COVID-19 lockdowns in Europe and an associated increase in online
consumer spending. In Integrated Processing, growth was driven by
the U.S. acquiring business, which continued to benefit from the
macroeconomic recovery, as well as growth across integrated
eCommerce, including iGaming and other specialized eCommerce
verticals. Digital Wallet growth was driven by favorable foreign
currency movement, a higher level of sporting events as well as
crypto and trading activity, partially offset by the impact of
targeted actions and country exits that occurred in 2020.
Net income attributable to the Company for the second quarter
was $6.6 million, compared to a loss of $15.9 million in the prior
year. Results included a fair value gain on the measurement of the
warrant liability at period-end. This increase was partially offset
by a $20.1 million increase in interest expense, reflecting the
expense of capitalized debt fees as a result of debt repayment, as
well as the impact of income tax expense of $16.7 million in the
second quarter compared with an income tax benefit of $2.7 million
in the prior year.
Adjusted EBITDA for the second quarter was $118.8 million, an
increase of 8%, compared to $110.4 million in the prior year.
Adjusted EBITDA margin decreased 150 basis points to 30.9%,
reflecting business mix, including the headwind from the high
margin direct marketing vertical, as described above. These impacts
were partially offset by strong cost optimization. Additionally,
the prior year margin benefited from temporary cost reductions
related to the COVID-19 pandemic.
Second quarter net cash from operating activities was negative
$7.7 million, compared to positive $123.5 million in the prior
year. Free cash flow was $54.6 million, compared to $96.2 million
in the prior year.
Summary of Segment Results
Three months ended
Six months ended
June 30,
YoY
June 30,
YoY
($ in thousands) (unaudited)
2021
2020
change
2021
2020
change
Revenue:
Integrated Processing
$
191,242
$
178,397
7.2
%
$
368,145
$
364,614
1.0
%
Digital Wallet
$
97,271
$
91,108
6.8
%
$
192,194
$
199,601
-3.7
%
eCash Solutions
$
103,876
$
75,998
36.7
%
$
216,792
$
145,067
49.4
%
Intersegment
$
(8,046
)
$
(4,469
)
80.0
%
$
(15,364
)
$
(8,583
)
79.0
%
Total Revenue
$
384,343
$
341,034
12.7
%
$
761,767
$
700,699
8.7
%
Adjusted EBITDA:
Integrated Processing
$
45,764
$
52,050
-12.1
%
$
90,691
$
107,264
-15.5
%
Digital Wallet
$
46,927
$
40,305
16.4
%
$
84,700
$
93,999
-9.9
%
eCash Solutions
$
43,033
$
27,297
57.6
%
$
91,104
$
50,164
81.6
%
Unallocated Corporate
$
(16,920
)
$
(9,277
)
82.4
%
$
(34,461
)
$
(28,282
)
21.8
%
Total Adjusted EBITDA
$
118,804
$
110,375
7.6
%
$
232,034
$
223,145
4.0
%
Adjusted EBITDA margin:
Integrated Processing
23.9
%
29.2
%
(530) bps
24.6
%
29.4
%
(480) bps
Digital Wallet
48.2
%
44.2
%
400 bps
44.1
%
47.1
%
(300) bps
eCash Solutions
41.4
%
35.9
%
550 bps
42.0
%
34.6
%
740 bps
Total Adjusted EBITDA margin
30.9
%
32.4
%
(150) bps
30.5
%
31.8
%
(130) bps
Financial Guidance
($ in millions)
Q3 2021
Full Year 2021
Revenue
$360 – $375
$1,530 – $1,550
Gross Profit (excluding depreciation and
amortization)
$210 – $220
$930 – $970
Adjusted EBITDA
$95– $110
$480 – $495
Refinancing
In the second quarter Paysafe refinanced its existing senior
secured loan facility totaling $2.1 billion with a combination of a
new $1.1 billion senior secured loan facility and $0.9 billion of
senior secured notes, as well as increased its revolving credit
facility from $225 million to $305 million. The refinancing
extended the Company’s maturity profile, lowered its borrowing rate
and improved Paysafe’s financial flexibility.
Webcast and Conference Call
Paysafe will host a live webcast to discuss the results today at
8:30 a.m. (EDT). 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
Monday, August 16, 2021 at 8:30 a.m.
EDT
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)
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 $92
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.
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.
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)
June 30, 2021
December 31, 2020
Assets
Current assets
Cash and cash equivalents
$
247,801
$
387,616
Customer accounts and other restricted
cash, net of allowance for credit losses of $4,428 and $4,096,
respectively
1,249,268
1,376,236
Accounts receivable, net of allowance for
credit losses of $12,102 and $25,035, respectively
129,708
117,410
Settlement receivables, net of allowance
credit losses of $4,571 and $5,859, respectively
170,890
223,083
Prepaid expenses and other current
assets
72,780
63,252
Related party receivables - current
6,733
6,271
Contingent consideration receivable -
current
2,964
26,668
Total current assets
1,880,144
2,200,536
Deferred tax assets
17,390
17,669
Property, plant and equipment, net
14,431
18,691
Operating lease right-of-use assets
35,574
40,187
Intangible assets, net
1,461,324
1,524,817
Goodwill
3,483,539
3,481,816
Contingent consideration receivable –
non-current
—
125,107
Other assets – noncurrent
1,859
508
Total non-current assets
5,014,117
5,208,795
Total assets
$
6,894,261
$
7,409,331
Liabilities and equity
Current liabilities
Accounts payable and other liabilities
$
211,433
$
231,724
Short-term debt
6,280
15,400
Funds payable and amounts due to
customers
1,404,975
1,552,187
Operating lease liabilities - current
8,635
8,969
Income taxes payable
7,355
8,161
Contingent consideration payable -
current
10,495
5,820
Derivative financial liabilities,
current
16,506
2,651
Total current liabilities
1,665,679
1,824,912
Non-current debt
2,114,909
3,246,871
Related party payables – non-current
—
195,228
Operating lease liabilities –
non-current
30,489
34,540
Deferred tax liabilities
121,352
122,519
Warrant liabilities
194,044
—
Derivative financial liabilities -
non-current
—
47,547
Liability for share-based compensation
12,153
—
Contingent consideration payable –
non-current
4,142
3,742
Other liabilities - non-current
968
969
Total non-current liabilities
2,478,057
3,651,416
Total liabilities
4,143,736
5,476,328
Accumulated other comprehensive income /
(loss)
2,039
(2,419
)
Shareholders' equity in the
Company
2,612,840
1,921,705
Non-controlling interest
137,685
11,298
Total shareholders' equity
2,750,525
1,933,003
Total liabilities and shareholders'
equity
$
6,894,261
$
7,409,331
Paysafe Limited Condensed
Consolidated Statements of Operations (unaudited)
For the three months ended
June 30,
For the six months ended June
30,
($ in thousands)
2021
2020
2021
2020
Revenue
$
384,343
$
341,034
$
761,767
$
700,699
Cost of services (excluding depreciation
and amortization)
155,778
126,245
306,815
255,633
Selling, general and administrative
113,037
104,414
307,035
221,921
Depreciation and amortization
70,114
67,492
135,576
136,991
Impairment expense on intangible
assets
1,357
5,038
1,935
79,403
Restructuring and other costs
4,518
4,359
7,488
10,006
(Gain) / loss on disposal of subsidiary
and other assets, net
(28
)
—
(28
)
261
Operating income / (loss)
39,567
33,486
2,946
(3,516
)
Other income / (expense), net
46,558
(9,498
)
79,083
(24,578
)
Interest expense, net
(62,650
)
(42,531
)
(125,019
)
(80,754
)
Income / (loss) before taxes
23,475
(18,543
)
(42,990
)
(108,848
)
Income tax expense / (benefit)
16,690
(2,714
)
10,754
(23,768
)
Net income / (loss)
$
6,785
$
(15,829
)
$
(53,744
)
$
(85,080
)
Less: net income attributable to
non-controlling interest
188
72
306
113
Net income / (loss) attributable to the
Company
$
6,597
$
(15,901
)
$
(54,050
)
$
(85,193
)
Net income / (loss)
$
6,785
$
(15,829
)
$
(53,744
)
$
(85,080
)
Other comprehensive income / (loss), net
of tax of $0:
(Gain) / Loss on foreign currency
translation
(12,956
)
4,601
(4,458
)
15,642
Total comprehensive income /
(loss)
$
19,741
$
(20,430
)
$
(49,286
)
$
(100,722
)
Less: comprehensive income attributable to
non-controlling interest
188
72
306
113
Total comprehensive income / (loss)
attributable to the Company
$
19,553
$
(20,502
)
$
(49,592
)
$
(100,835
)
Paysafe Limited Condensed
Consolidated Statements of Cash Flow (unaudited)
Six Months Ended June
30,
($ in thousands)
2021
2020
Cash flows from operating
activities
Net loss
$
(53,744
)
$
(85,080
)
Adjustments for non-cash items:
Depreciation and amortization
135,576
136,991
Unrealized foreign exchange loss /
(gain)
2,245
(10,255
)
Deferred tax expense / (benefit)
4,714
(24,547
)
Interest expense, net
69,155
22,908
Share based compensation
84,117
—
Other (income) / expense, net
(75,901
)
10,459
Impairment expense on intangible
assets
1,935
79,403
Allowance for credit losses and other
9,600
27,897
(Gain) / loss on disposal of subsidiary
and other assets, net
(28
)
261
Non-cash lease expense
4,909
5,085
Movements in working capital:
Accounts receivable, net
(21,342
)
(29,457
)
Prepaid expenses, other current assets,
and related party receivables
(9,282
)
4,048
Settlement receivables, net
44,113
33,155
Accounts payable, other liabilities, and
related party payables
(21,139
)
(19,065
)
Funds payable and amounts due to
customers
(116,268
)
(15,073
)
Income tax payable
(17,650
)
(1,688
)
Net cash flows from operating
activities
41,010
135,042
Cash flows in investing
activities
Purchase of property, plant &
equipment
(1,169
)
(1,722
)
Purchase of merchant portfolios
(36,703
)
(3,241
)
Purchase of other intangible assets
(37,452
)
(28,034
)
Net cash outflow on acquisition of
subsidiary
(23,531
)
—
Net cash flows used in investing
activities
(98,855
)
(32,997
)
Cash flows from financing
activities
Net cash inflow from reorganization and
recapitalization
1,167,874
—
Payment of equity issuance costs
(149,496
)
—
Proceeds from loans and borrowings
2,112,816
235,435
Repayments of loans and borrowings
(3,267,269
)
(95,059
)
Payment of debt issuance costs
(1,068
)
Payments under derivative financial
instruments, net
(31,515
)
(2,617
)
Cash outflow on foreign exchange forward
contract
(6,504
)
Proceeds under line of credit
300,000
205,867
Repayments under line of credit
(300,000
)
(185,230
)
Contingent consideration received
7,942
—
Contingent consideration paid
(1,002
)
(748
)
Net cash flows (used in) / provided by
financing activities
(168,222
)
157,648
Effect of foreign exchange rate
changes
(40,716
)
2,638
(Decrease) / increase in cash and cash
equivalents, including customer accounts and other restricted cash
during the period
$
(266,783
)
$
262,331
Less: Net decrease in cash and cash
equivalents classified within current assets held for sale
$
—
$
(1,422
)
Net (decrease) / increase in cash and
cash equivalents, including customer accounts and other restricted
cash during the year
$
(266,783
)
$
260,909
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
$
1,497,069
$
1,643,270
Six Months Ended June
30,
2021
2020
Cash and cash equivalents
$
247,801
$
502,560
Customer accounts and other restricted
cash, net
1,249,268
1,140,710
Total cash and cash equivalents,
including customer accounts and other restricted cash, net
$
1,497,069
$
1,643,270
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 Income / (Loss) to Non-GAAP
Adjusted EBITDA
Three months ended
Six months ended
June 30,
June 30,
($ in thousands)
2021
2020
2021
2020
Net Income / (Loss)
$
6,785
$
(15,829
)
$
(53,744
)
$
(85,080
)
Income tax expense / (benefit)
16,690
(2,714
)
10,754
(23,768
)
Interest expense, net
62,650
42,531
125,019
80,754
Depreciation and amortization
70,114
67,492
135,576
136,991
Share based compensation expense
3,276
—
84,117
—
Impairment expense on intangible
assets
1,357
5,038
1,935
79,403
Restructuring and other costs
4,518
4,359
7,488
10,006
(Gain) / loss on disposal of subsidiaries
and other assets, net
(28
)
—
(28
)
261
Other (income) / expense, net
(46,558
)
9,498
(79,083
)
24,578
Adjusted EBITDA
$
118,804
$
110,375
$
232,034
$
223,145
Adjusted EBITDA Margin
30.9
%
32.4
%
30.5
%
31.8
%
Reconciliation of Operating Cash Flow to Non-GAAP Free Cash
Flow
Three months ended
Six months ended
June 30,
June 30,
($ in thousands)
2021
2020
2021
2020
Net cash (outflows)/ inflows from
operating activities
$
(7,730
)
$
123,463
$
41,010
$
135,042
Capital Expenditure
(23,215
)
(14,848
)
(38,621
)
(29,756
)
Cash paid for interest
19,011
19,560
55,864
57,846
Payments relating to Restructuring and
other costs
725
7,282
4,180
12,124
Movement in Customer Accounts and other
restricted cash
65,805
(39,219
)
100,691
5,369
Free Cash Flow
$
54,596
$
96,238
$
163,124
$
180,625
Adjusted EBITDA
118,804
110,375
232,034
223,145
Free Cash Flow Conversion
46
%
87
%
70
%
81
%
Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit
(excluding depreciation and amortization)
Three months ended
Six months ended
June 30,
June 30,
($ in thousands)
2021
2020
2021
2020
Revenue
$
384,343
$
341,034
$
761,767
$
700,699
Cost of services (excluding depreciation
and amortization)
155,778
126,245
306,815
255,633
Depreciation and amortization
70,114
67,492
135,576
136,991
Gross Profit (1)
$
158,451
$
147,297
$
319,376
$
308,075
Depreciation and amortization
70,114
67,492
135,576
136,991
Gross Profit (excluding depreciation
and amortization)
$
228,565
$
214,789
$
454,952
$
445,066
(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/20210816005153/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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