The following is a summary of the Paysafe Limited (PSFE) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Paysafe reported Q3 revenue of $427 million, up 8% year-over-year, with Merchant Solutions growing 11% and Digital Wallets growing 4%.

• Adjusted EBITDA for the quarter was $117.8 million, increasing 1% from the previous year, while adjusted EBITDA margin expanded by 70 basis points compared to the first half of 2024.

• Net leverage was reduced by 8% year-over-year to 4.7 times at the end of Q3 2024.

• The company forecasts continued revenue growth of 7% to 8% for the full year with an adjusted EBITDA margin ranging from 27.5% to 28%.

Business Progress:

• Paysafe booked 83 enterprise wins in the quarter, demonstrating strong momentum in cross-selling and winning new clients.

• The company welcomed 170 new sales reps, reaching the target ahead of schedule, to expand sales capabilities.

• Revolut collaboration introduced to bring e-cash service to 10 million UK customers, transacting with 28,000 unique consumers in the first three months.

• A new collaboration expected with a marquee client in the coming months.

Opportunities:

• The expansion in sales capabilities, revamping consumer acquisition efforts, and strategic partnerships like those with Revolut and potential new major collaborations indicate growing market reach and customer base.

• Implementation of value-added solutions and direct sales teams show enhanced product competitiveness and operational efficiency.

Risks:

• Adjusted EPS decreased to $0.51 from $0.57 year-over-year due to an increase in the adjusted effective tax rate influenced by BEAT tax expense.

• Planned client exits for portfolio derisking are impacting revenue and gross margins, reflecting an operational shift.

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.