Global payments provider Paysafe has released its Q1 2024 earnings report, revealing strong financial performance and continued growth across key business segments. The company reported an 8% year-over-year (YoY) increase in revenue, reaching $417.7 million. On a constant currency basis, revenue grew by an impressive 7%.
Paysafe Delivers Strong Q1 2024 Results
Paysafe's Adjusted EBITDA for the quarter stood at $111.9 million, representing a 4% increase from the previous year. When adjusted for currency fluctuations, the growth in Adjusted EBITDA was 3%. The company also reported a net income of $3.1 million, a significant improvement from the net loss of $3.8 million in Q1 2023. Adjusted net income reached $35.3 million, growing compared to last year's period.
CEO Bruce Lowthers attributed the strong results to the success of Paysafe's strategic initiatives and investments. For example, Paysafe expanded its sales team, advanced its white-label wallet strategy through a partnership with Xsolla, and launched its Pay by Bank solution for US iGaming.
“We remain confident in our financial outlook for this year, which reflects stronger underlying revenue performance, anchored by improved operational execution ,” added Lowthers, who has been leading the company for over two years.
Revenue from the Merchant Solutions segment rose by 11%, driven by substantial growth in e-commerce and small to medium-sized businesses (SMBs) due to enhanced sales strategies and portfolio optimization efforts. In constant currency, the Digital Wallets segment saw a revenue increase of 5%, or 4%, primarily fueled by the gambling sector and continued efforts to boost product and consumer engagement.
Reaffirming Full-Year Outlook
Based on the strong Q1 performance, Paysafe reaffirmed its financial outlook for 2024. The company expects revenue from $1,688 million to $1,712 million and Adjusted EBITDA between $473 million and $488 million, reflecting stronger underlying revenue performance and improved operational execution.
A few months ago, Paysafe announced an extension of its collaboration with Visa. The partnership aims to integrate Visa network tokens, providing an alternative to traditional credit and debit card account numbers.
The company made headlines in 2023 after ending its partnership with the Binance exchange in France, which halted support for euro deposits and withdrawals for SEPA transfers.
