Paysafe Registers 3% Revenue Decline In Q1 Due To Mixed Segment Performance; Reiterates FY22 Outlook

Paysafe Limited PSFE reported a first-quarter FY22 revenue decline of 3% year-on-year to $367.7 million, missing the consensus of $371.7 million. Total Payment Volume of $31.2 billion increased 13% Y/Y.
Segments: US Acquiring revenue rose 10.3% Y/Y to $169.1 million, eCash revenue declined 10.5% Y/Y to $101.1 million, Digital Wallets revenue fell 13.4% Y/Y to $82.2 million, and Integrated & Ecommerce Solutions revenue decreased 1.5% Y/Y to $23.2 million.
The adjusted EBITDA margin contracted 170 bps to 28.3%.
Paysafe held $1.97 billion in cash and equivalents, including customer accounts, and generated $503.8 million in operating cash flow.
CFO Izzy Dawood commented: "We are particularly pleased with the strong performance from our US Acquiring business, which delivered double-digit volume, revenue, and adjusted EBITDA growth. We are winning across Digital Commerce, and the turnaround of the digital wallet business continues to show progress. Additionally, Paysafe is succeeding in North America iGaming, recently launching in Ontario's new private market. Despite macro headwinds, we remain confident in our full-year outlook supported by continued momentum in US Acquiring and our pipeline across Digital Commerce."
Outlook: Paysafe reaffirmed FY22 revenue guidance of $1.53 billion – $1.58 billion.
Price Action: PSFE shares traded lower by 3.07% at $2.21 in the premarket on the last check Wednesday.