Paysafe Raises 2024 Revenue Forecast After Recorded 9% Surge In Q2

Paysafe has announced its financial results for Q2 2024. The company stated that its revenue grew by 9% to $439.9 million compared to the same period last year. Paysafe noted that it has also updated its growth projections for the year because of the financial success it recorded in the second quarter.

Paysafe realized a total payment volume of $38.1 billion, showing a 7% surge year-over-year. While the company still saw a net loss of $1.4 million, it was less than the $1.8 million loss it recorded in the same period last year.

Paysafe Raises Revenue Projections By 125 Points

The firm also saw an improvement in its adjusted net income as it grew from $34.7 million to $36.5, which also represents $0.59 per diluted share. Additionally, Paysafe saw a slight rise in its adjusted EBITDA to $119 million, representing a 5% increase from the figures in the previous quarter.

Chief Executive Officer of Paysafe, Bruce Lowthers, commented about the company’s strong performance. He stated that the company is raising its revenue projections for 2024 following its robust performance in the second quarter of the year. The company is now looking at a growth range of 7% to 8%. He also stated that the company’s original outlook has increased by 125 basis points at the midpoint different from their original guidance.

Paysafe sees massive growth in iGaming

Paysafe’s revenue surge was helped by the company’s strong performance in the iGaming sector. The growth was bolstered by deals signed in the 4th quarter of last year and the company’s online gambling expansion in the US. Paysafe has also added more products to its portfolio while removing other products that are no longer profitable. The firm says it wants to improve earnings quality and reduce risk.

Additionally, Paysafe has been very active in capital returns, spending $11 million to repurchase 686,396 shares. Paysafe’s net leverage reportedly fell to 4.8x in June compared to the 5.0x net leverage towards the end of 2023. This shows an improved financial health.

Paysafe recorded a strong performance in major business segments in Q1 earnings. The revenue reached $417.7 million, surging 8% year-over-year (YoY). Its adjusted EBITDA rose to $111.9 million, indicating a 4% surge from the previous year. The growth in adjusted EBITDA was 3% when adjusted for currency fluctuations.

Last month, Paysafe collaborated with fiat-crypto payment solution provider, Alchemy Pay, to offer a wide range of crypto payment methods to users. The platform says the partnership will enhance the access to crypto transactions.