Paysafe Limited (NYSE:PSFE) Q3 2023 Earnings Conference Call November 14, 2023 8:30 AM ET

Company Participants

Bruce Lowthers - Chief Executive Officer

Alex Gersh - Chief Financial Officer

Kirsten Nielsen - Senior Vice President, Investor Relations

Conference Call Participants

David Togut - Evercore ISI

Scott Wurtzel - Wolfe Research

Jamie Friedman - Susquehanna

Tim Chiodo - UBS

Aditya Buddhavarapu - Bank of America

Operator

Hello and welcome to the Paysafe Q3 2023 earnings conference call and webcast.

If anyone should require Operator assistance, please press star, zero on your telephone keypad.

A question and answer session will follow the formal presentation. You may be placed in the question queue at any time by pressing star, one on your telephone keypad. As a reminder, this conference is being recorded.

It is now my pleasure to turn the call over to Kirsten Nielsen, Head of Investor Relations. Please go ahead, Kirsten.

Kirsten Nielsen

Thank you and welcome to Paysafe’s earnings conference call for the third quarter of 2023. Joining me today are Bruce Lowthers, Chief Executive Officer, and Alex Gersh, Chief Financial Officer.

Before we begin, a reminder that this call will contain forward-looking statements and should be considered in conjunction with cautionary statements contained in our earnings release and the company’s most recent SEC reports. These statements reflect management’s current assumptions and expectations and are subject to factors that could cause actual results to differ materially from those forward-looking statements. You should not place undue reliance on these statements. Forward-looking statements during this call speak only as of the date of this call, and we undertake no obligation to update them.

Today’s presentation also contains non-GAAP financial measures. You can find additional information about these measures and reconciliations to the most directly comparable GAAP financial measures in today’s press release and in the appendix to this presentation, which are available in the Investor Relations section of our website.

With that, I’ll turn the call over to Bruce.

Bruce Lowthers

Thanks Kirsten, and thank you all for joining us today. Let’s jump right in.

This marks our fifth consecutive quarter of year-over-year revenue growth, demonstrating progress on our turnaround and strategic initiatives. Our third quarter performance shows growth across our key metrics, including volume, revenue, adjusted EBITDA, adjusted EPS, and last 12 month free cash flow, building upon a strong first half of the year.

Third quarter revenue of $396 million increased 8% year-over-year or 5% on a constant currency basis, with trends consistent with what we discussed in the second quarter. We recorded 6% growth in the merchant solutions segment led by double-digit growth from ecommerce. In the digital wallet segment, revenue increased 12% on a reported basis and 5% in constant currency, driven by double-digit growth in classic digital wallets which was partially offset by softer performance in eCash.