Paysafe Raises 2024 Forecast Following 9% Revenue Growth

Tuesday, 13/08/2024 | 15:16 GMT by Jared Kirui

The company experienced a 7% year-over-year increase in payment volume, totaling $38.1 billion.

Paysafe's growth was largely boosted by its focus on the iGaming sector, along with partnerships and capital returns.

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.