Payments platform Paysafe Limited (NYSE:PSFE) today announced its financial results for the third quarter of 2024.
Net loss for the third quarter increased to $13.0 million, compared to $2.5 million in the prior year period, largely reflecting an increase in other expenses due to a loss on foreign exchange.
Total revenue for the third quarter of 2024 was $427.1 million, an increase of 8%, compared to $396.4 million in the prior year period, reflecting 7% growth in total payment volume.
Excluding a $1.4 million favorable impact from changes in foreign exchange rates, total revenue increased 7%.
Revenue from the Merchant Solutions segment increased 11%, reflecting double-digit growth in e-commerce as well as growth from small and medium-sized businesses (“SMBs”) driven by initiatives to expand Paysafe’s sales capabilities and optimize the portfolio. Revenue from the Digital Wallets segment increased 4% both as reported and in constant currency, supported by ongoing initiatives related to product and consumer engagement as well as growth from merchants onboarded in 2023.
Adjusted net income for the third quarter decreased 11% to $31.4 million, compared to $35.3 million in the prior year period, reflecting an increase in depreciation and amortization expense as well as an increase in the adjusted effective tax rate.
Adjusted EBITDA for the third quarter was $117.8 million, an increase of 1%, compared to $116.1 million in the prior year period, primarily reflecting revenue growth, partially offset by incremental expenses related to previously announced initiatives to expand the sales team and optimize the portfolio.
Third quarter operating cash flow was $81.9 million, compared to $102.2 million in the prior year period, which was mainly driven by movements in working capital. Unlevered free cash flow was $89.9 million, compared to $110.3 million in the prior year period.
Bruce Lowthers, CEO of Paysafe, commented:
“I am happy to report on behalf of our team another healthy quarter for Paysafe. Revenue growth continues to be strong this year, reaching 8% for the third quarter and year-to-date, demonstrating execution on our strategic priorities and our focus on delivering higher quality, sustainable revenue growth, while investing in the business and progressively reducing net leverage. We are pleased to reaffirm our full year financial outlook for 2024 and we remain confident that we are taking the right actions to drive continued momentum in 2025 and beyond.”
