Paysafe’s FY22 results show a loss of $1.86bn year-on-year (PS1.56bn/EUR1.76bn), due to a $1.83bn cash impairment.
In 2022, the total revenue from payments platforms grew by 0.6% compared to the previous year.
Numerous strategic and operational improvements have been made to the company. Paysafe’s services are now available in 25 states, including Ohio.
Bruce Lowthers from Paysafe commented on the Q4 and FY22 results.
He said that he was pleased with the fourth quarter’s financial results and progress, which included 8% year-overyear constant currency revenue growth. “When I joined Paysafe we stated that our focus would be to return to growth in 2023 and the back half year. And we have done exactly that.”
“We have hired high-caliber talent, repositioned the business and rebuilt our sales organization, which is generating early success in cross-selling, multi-product client wins.”
The final day of 2022 saw total cash and cash equivalents of $260.2m, total and total debt of $2.60bn, and net debt of $2.40bn.
Q4 results
The fourth quarter’s financial performance showed that revenue rose by 3%, from $371.6m in Q4 last year to $383.6m 2022. The revenue growth would have been 8.8% year-on-year, excluding $17.6m loss due to foreign exchange rates.
Paysafe reported a net loss of $33.7 million for the quarter. This is a decrease from the $90.3m profit it made the previous year. This huge loss was attributed by the payments platform to the fair value gain from the remeasurement warrant liability and the income tax benefit in 2021. The year-on-year decline is notable due to the significant increase in share-based compensation expense and interest expense in 2022’s fourth quarter.
The company’s adjusted earnings before interest taxes, depreciation and amortization (EBITDA), rose by 2% year-on-year from $105.5m in 2010 to $107.6m in 2011. The company reported that this number would have been around 6% if it weren’t for the negative loss.
Results for the full year
Moving to FY22, revenue increased by 1% year-over-year from $1.49bn a $1.50bn. Paysafe attributes this increase to Merchant Solutions’ revenue growth of 10%, which offsets the 9% loss Digital Wallets suffered. The company also cites the impact of changing exchange rates on overall revenue.
This year’s net loss was $1.86bn compared to the $111.0m in 2021. This is due to the non-cash impairment of goodwill, intangibles and other charges starting in 2022.
Comparatively to Q4, FY22 adjusted EBITDA decreased by 8%, from $433.9m 2021 to $410.0m 2022. The loss was attributed to foreign exchange rates, business mix and the conflict between Russia and Ukraine.
These factors also had an impact on the 26% net income loss from $185.8m – $137.0m year-on –
Plans for 2023
Bruce Lowthers emphasized customer-centricity as a key component of the company’s plans for the next year.
He said, “Looking ahead, we remain tirelessly focused on client experiences, product innovation and further sales transformation to fully utilize our assets worldwide and capture meaningful growth opportunities over the coming years.”
