Paysafe Shares Trade Down After Q1 Earnings: Platform Touts Total Payment Volume Of $33B

Paysafe Limited PSFE reported first-quarter FY23 revenue growth of 5% year-over-year to $387.85 million, beating the consensus of $377.43 million. 

• The revenue was up 7% YoY on a constant currency basis.
• Total Payment Volume of $33 billion, up 8% Y/Y.
• Segment revenues: Merchant Solutions rose 98% Y/Y to $208.52 million, and Digital Wallets +2% Y/Y to $181.45 million.
• Adjusted EPS was $0.54, down from $0.62 in 1Q22, missing the consensus of $0.63.
• Adjusted EBITDA was $107.82 million (+4% Y/Y), and the margin contracted by 50 bps to 27.8%, as the Merchant Solutions margin decreased by 10 bps, and Digital Wallets expanded by 180 bps.
• The London-based company reported an operating income of $34.98 million, compared to a loss of $1.19 billion a year ago.
• As of March 31, the company held cash and cash equivalents of $221.7 million, and net debt was $2.4 billion.
• PSFE's cash used in operating activities for the quarter totaled $118.96 million, versus cash generated of $504.85 million a year ago.
• Paysafe CEO Bruce Lowthers: "We are confident in maintaining our full year outlook and remain very pleased with the progress of our sales transformation initiative, which is driving cross-selling and higher value client wins."
• FY23 Outlook: Paysafe expects revenue of $1.58 billion-$1.6 billion, versus the consensus of $1.59 billion.
• It sees Adjusted EBITDA of $452 million - $462 million.

Price Action: PSFE shares were trading down 9.11% at $13.17 midday Tuesday.