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Paysafe Limited (PSFE)

Participants
Will Maina IR
Philip McHugh CEO
Izzy Dawood CFO
Darrin Peller Wolfe Research
Dan Perlin RBC Capital Markets
Jamie Friedman Susquehanna Financial Group
Josh Levin Autonomous Research.
Mike Del Grosso Compass Point
Timothy Chiodo Credit Suisse
Call transcript
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Operator

Greetings, and welcome to Paysafe's First Quarter 2021 Earnings Conference Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Will Maina, Investor Relations with Paysafe. ahead. go Please

Will Maina

Officer. good XXXX and Philip to Paysafe Chief the Chief Thank conference morning. call. quarter Financial Dawood, Izzy earnings Officer; are, With first Executive you, and Welcome me McHugh, today

of subject factors call Before we those current begin, statements in forward-looking like recent could company's to contained periodic considered in beliefs, and be with management's to release SEC a will and and most that should expectations the remind statements, forward-looking conjunction contain reflect everyone I'd results this number cautionary reports. actual assumptions our are that from cause to These and materially statements differ statements. earnings

call, included supplemental earnings financial Investor our certain press measures today's will and Relations company's will SEC in that Phil. release [ph] of I'll and to to information constitute call measures now are information in today's GAAP During legal non-GAAP available the over section earnings turn website. the also provide rules. management presentation, certain under These are which company reconciliations

Philip McHugh

quarter the for Thanks, I'm to to first Paysafe. then public highlights quarter, successful deliverables our first key you our from our turn welcome thank our and joining Izzy some for everyone announcement it CFO, Well, Will. cover of to as and performance. Paysafe. earnings say for that. and going an the and been of Today, eventful all, over To Dawood, financial review to Thanks least strategic first it's

We billion going more billion, able the return de-SPACed strengthening the down public rating and than investors. following successful strong our the balance we sheet successfully debt, New to initial credit after pay along a Stock our to XX, March $X.X raised SPAC successfully York $X our announcement. XXX-days way. First, listed of Exchange were on on We with and

that our transformation Foley front. we've We lots of in our with Chairman, on fully the a activity plan, as also new board implementation, Bill place started and have already

year-on-year on to initiatives. As a strong and activity, to against quarter, North SMB of and starting several and America key overall the we our April. and this across four strong our behind. growth team, saw market. able across momentum a seeing XX% legalization we in iGaming, U.S. sports and higher new the far much e-commerce also not lots markets with other of the first driving increase business, From the market win. volumes to execute We're we're strategy, We're online we've in of U.S. of strong been betting in growth delivering states with acquiring activity We're the continue scale we company business, planned strong. view, and see to in in that We're seeing lots states continue new in the market remain recovery in rapid emergence growth want the an chapter and volumes in seeing our XXXX,

a new adoption recent According Finally, in which consumers consumer nearly have Paysafe proprietary XX-months. payment a methods, seeing last payment method time. research, XX% using tried new to well over we're also served to openness continued has our of the in

important but anyone Presentation. Day back new to recent our during March, that points. We our few today, provided our detail to you a do to event to I I for encourage think on review recap and which Moving really I Analyst repeat won't strategy, ample story, Paysafe in it's

powerful and We're with Skrill, our two Moreover, truly with mean products a leading a by network. company, is creating Paysafe the that? consumer differentiated What platform. sided scaled to payments our unique do First, on side, company be Neteller powerful both payment merchant the and strong and specialized I solutions risk the goal commerce. deliver us technology hundreds provide and card platforms send payment replicate, forms digital in it's products money allow global hard expertise, payments We of make Paysafe to to management all with very that in brands scale, valuable ways markets. consumers along of match millions to a of with our

market approach risk importantly, management focused know required, right deep in multiple that very like of ATMs, the of is strong requires When verticals and knowledge Lastly, iGaming, Paysafe win. we has and like integration. combination we to ease to that the

terms In on growth of really we deploy key that how we focus strategy, four pillars.

have casino positioned winner win fast position to to true online poker, betting, In iGaming be includes particular, the sports and market. and First, U.S. the in emerging we which iGaming, a eSports. fantasy we're strong

combined strength and position payments, digital Second, financial products, strong win capabilities, travel with to including entertainment, verticals, some online beyond select well our revenues fastest from exposed industry swimlanes the of in e-commerce our growth folks iGaming, and services, solutions, payments as our eCash and including trading our Neteller in coming of Skrill, specific integrated goods, the market. and verticals. we're of to our XX% the With

Day, Analyst enhance see in which pillar, e-commerce transformation across And opportunities verticals. in we ready we third America plan, our expansion, rising consolidation about company. The and great digital market multiple underway well areas is detail iGaming, delivering operating North in leverage the which we is finally, all during are the our position our of and spoke wallet to

our said of in the So of that's a a terms we last Day of bit summary strategy. during what Analysts

to first quarter. now in what let move we on actually the So, me did

a world. the industry, around American North talked Paysafe choice, Day, serving gaming one our more majority we with iGaming. de operators iGaming how the partner of who start of the payments more At than iGaming products first facto regulated the about the lot and X,XXX Analyst use is with me of Let or market,

We where approximately emerging into all of market, we to XX% also U.S. the operators. integrations our have grow talked already strategy about

key quarter. both first in in provide Revenues the activity the Michigan first from grew America in our Virginia XX% some first quarter. So, North iGaming let and quarter. updates in me launched the Paysafe in

in live are U.S. the we across states Now XX

second an also quarter We and a during deepened number with early expanded quarter. our wins the presence exciting first of

our with In March, U.S. launched Michigan. We're York. our relationship New in our significant business expanded with who lottery PointsBet we has where expanded going by U.S. live recently are with partnerships of [ph] their Our plans expand with Casino, growth, with integration, In expanding Michigan powering in with other in states. we we Parx Playtech buoyed which our in back is the live relationship Jackpocket, business. also our leveraging enjoyed on partnership WinBet BetBall are [ph] Virginia, to

Additionally, our we also with presence expanded in Colorado of our strong launch PlayUp.

release, have only-regulated Canada, position, on support continue in to as and Alberta's dominant Moving to press online now recent gambling our we website. announced we a

we're instant integrations wallet, there's where key Skrill on our gap a to addition in in we payments making in In the multiple from enhancements, our digital funding on specifically and for with early material market the major we product our perspective. feedback upcoming positive, an Overall, very think both product with a discussions We The brands. been talked from with focus driving about we're has several expanding here, also pleased states, market. execution merchants track from incredibly wallet. with traction key pilots the and

how me in let turn Now verticals. growing emerging to we're

relationship. services. March, traction. an financial Skrill wallet. to league QX new we countries Microsoft, saw well XX markets in have the drive strength our neobanks we gain it growing engagement. in We growth financial such and We're Coinbase trading with supporting as well as services, in emerging and continue strong wallets. growth to in In very overall our trading note FX presence note, online live eCash And trading making expanded strides with partnership digital volumes as user XX% to U.S. we ability in and trading, Of our include been trade gaming, strong the markets, particular in true seen as the in business, within We've in year-on-year, market. online and to expand sponsor in has crypto crypto particular of active active expands other as We as and our gaming. we're digital as Of cryptocurrencies that continue eSports goods to crypto good other been particularly continues across to

some partnerships supporting It player becoming We Monese. we're with live and pilot good seven neobanks. for exchanges banks of including sites crypto on and for XX In including processing a eCash, also other our announces, sided with live services, and are building financial of well. on two as meaningful wallets, digital the TSB Diebold A Nixdorf, a includes network. example sites with prior

to integrated as software CampMinder in recent and with progress we two see Ascend verticals, Additionally, wins. continue

Now, made progress also let points. me our and move on unlock on from proof the emerging fully initiatives, We've verticals the playbook value. into and global transformation transformation scale accelerate to

banks. Paysafe year-end, our our down We've X% X as We're operating and to with service. the risk as QX, across early fees, We seeing multiple cost initiatives number functions. our to risk are driving These analytics part kicked we across by XXX% migration see to are to bank in path effectively well approximately rates lowering across business capture meet by or a prior on more and to banking actions leverage. cloud XX% a we Tier track migrate exceed SG&A further our target improve positive off both XXXX. costs loss a and were continued having year, savings improvement also of In versus of

to we and enhance digital potential market opportunities assessing consolidate e-commerce regarding Now, iGaming, last active to deals, moving pillar, expand wallet, the on our remain footprint. the in

make then will quick results, the Before comment details. you a we on I'll financial move take on, through the Izzy

improve has in all tempered risk overall the been underlying the reward this in are markets and to businesses we growth places, seeing certain strong While and trends measures across growth right channels. somewhat profile by the

second-half the mentioned these in lap took the expect XXXX, actions to place of these we majority in Analysts As the year. this truly during we of Day, issues and

Paysafe world. to finally As want thank team a my the I last members point, around

and everybody. pleased introduction, the start With Our it a across as moment Izzy. chapter new equity all success hard ownership over culture to from really employees We're an is instilling as the company. in a turn the testament that public given Paysafe, we work have to to really this getting now I'll company, of true this dedication

Izzy Dawood

Philip. Thanks,

and were of in and turn and performance for the start Overall, Revenue summary to our delivered versus in our the quarter. at the with higher expenses Gross guidance came line. end versus expectations of let's Slide a solid brief profit first quarter. our X, Now for guidance. performance we EBITDA right our

strong X, Now year-over-year, quarter to Slide was let's million, segment. volumes X% by in revenue for eCash. driven year-over-year, our turn Total first eCash the processing and up X% by driven were up growth $XXX.X integrated

business, integrated discussed of X%. Pay in and July approximately mid Day been invested model, reward for in the processing margin for the to partially revenue the growth revenue compared have XX%, of and margin the margin to decrease optimization would actions in XX.X% we essentially resulting a Later our an impact in eCash teens. of high business year. Further $XXX.X million, the XXXX, EBITDA in increased adjusting which expansion. and continued was would flat our year, the risk reflects Adjusted prior prior compared The wallet, Excluding have Analyst to EBITDA by digital in was business quarter our primarily offset adjusted have mix

or QX. free XX% of EBITDA included million flow was a on Lastly, end bank conversion the guarantees of an $XXX basis, benefit at cash which million, from utilization the $XX adjusted

expect conversion we free levels. with quarter, flow Next cash line in typical

to deferred which last is X% quickly additional of debt a X, Depreciation the the last on was expense, by GAAP higher XX% our touch was expense driven we Moving results. as acceleration I lower QX. items, down year, at few of than Interest Slide million, and end will amortization year. debt $XX.X line financing and than including paid $XX.X

saw relating on XX% charge, Moved Volume was a Slide X with XXXX, compensation our the QX, invested are starting volumes loss in of transaction. the compared processing to was $XXX.X by increased for our We completion the also year. relative shares the discussion the up and travel hospitality XXXX. For impacted growth a industry strong, Revenue net the most QX, results, segment of prior to subdued first decrease to verticals, business, million, led share-based to the U.S. number processing. for of across while market. was of the quarter X% integrated still by

Adjusted channel. million in payments EBITDA revenue $XX.X by million as U.S. processing offset year. margin from iGaming was in prior the direct compared of decreased revenue declined X% XX.X% growth Excluding prior lower the by was year. the merchant in losses Adjusted Later Pay offset channel EBITDA event mix, due credit our to and lower and one-time to the partially due to $XX.X marketing a business,

increased have impact we of and our integrated discrete taken reward Pay in the have Excluding improve risk revenue would that to Later profile, actions X%. the processing approximately

and turn was XX.X%, eCash EBITDA on basis million in associated increase let's more an of of an increase verticals. all of points year-over-year. for to revenue Europe Now of XXXX, more XX% $XX.X spending to driven an by extended quarter the online prior first than eCash $XXX.X in Adjusted Slide in XXX EBITDA increase in compared QX was resulting year, XX. lockdowns adjusted double margin million,

shift wallet. $XX.X Moving quarter and million, digital focus wallet country to the discussed first performance exits a and to was the from targeted was digital we’ve XX% our prior XX, in last year, Analyst by of for Dat. impacted the decrease we Slide Revenue prior segment that compared in our year, actions to

in and million wallets due driven X%, driven in have decreased impact, and by this marketing million, FX higher approximately Adjusted Excluding prior mix, the of digital business revenue the trading was would to the year. margin in compared activity. and profit and investment grown iGaming EBITDA operations. crypto year-over-year, to $XX.X Adjusted by margin EBITDA $XX.X gross XX.X% increase changes

of by to $X.X at $X.X XX-month our two our debt the first notches In Moody's be debt as debt corporate to was S&P one. ratio two notches, of notches EBITDA B+. March lien adjusted to of of the of on to outstanding end approximately repayment our billion billion and XX. post-closing Slide Moving April, rating merger. And the XX, was X.Xx, reflecting by two upgraded last to also quarter total rating net upgraded

leverage well. expect to We X.Xx as to by decrease year-end approximately

which our be leverage Finally, profile improve will we debt additional can our refinanced, and whether current efficiently evaluate flexibility. continue to profile create further

we to for discuss on outlook QX. our would Moving Slide now XX,

all million $XXX to our million we on is move basis, $XXX On profit on full revenue $XXX range between $XXX and For across million, to strong expected Slide the to with be between Gross to the QX, growth expect of XXXX, businesses. adjusted million year. to reported EBITDA XX, a in $XXX we $XXX million. million

expectations in the Day. provided as Our whole a line remain Analysts with guidance

and In year, to we we've our XXXX. however, billion lapped X% XX%, as from of range growth This now Later legacy guidance revenue to low see Pay that our lifting are will of year-over-year revenue $X.XX our in of excludes impacted the growth QX. revenue, billion. you growth model, strength in in of which the the reflect the the the second-half business issues reflects of the For expect end range $X.XX the

to We $XXX to continue gross profit expect million of million. $XXX

to, For continue we for adjusted I'll expect turn closing Philip, million. now $XXX EBITDA, back With to million to that, $XXX call remarks. over the

Philip McHugh

We're issues. executing Q&A eCash legacy lapping much. rapid We're in we're e-commerce. summary, consistent, a seeing business. our iGaming We're we're In in against can market strong delivering recovery very to inorganic strategy. across deals U.S. U.S. emerging Izzy. I for Thanks, the high plan, Thank against the in We're expanding and said, pace. at key well the With that our session. well-positioned verticals We're winning growth think wallets, our you now transformation growth. we and and move SMB organic digital

Operator

question. Our Research. with first your we'll Thank of you, proceed sir. [Operator Instructions] Peller comes from Darrin time, Wolfe this a At session. question be Please question-and-answer conducting today

Darrin Peller

growing Hey, segment, you well digital basis and at? growth at do these when referral start and were been, basis per the the to results, guys Good impacts a comps as anniversary revenue would look we couple you the you a to then have have Can portfolio to then overall, us, But if is said, morning. right. obviously we the and teens, derisk. guys. back network out quarters? on the side, should next per high lot. your from Obviously, I on you called of you growth you out segment as and had we partners just think partners, this on, you a more to company what impact company-wide? touch that merchant All remind Thanks. expect change mid When as that normalized grow perhaps, a just segment see in changes normalized, that Again, the

Philip McHugh

out components out. it's look, Darrin, the laid Good in basically good Yeah, there Philip. chat. Izzy always, worth of to three as Hey, calling talk so are terms change that

So a of forma of and Later math. that's year one simple is pro kind last the disposal Pay

that we of called good last to we actions talking And QX segments The kind markets, out the channels see significant starting strategically at some rules and that on And digital year, second We which And to where direct of as ourselves then end a Analysts player views one on were year. Day. were market. pipe think took of us. more consistently Those of for our there. QX clients that for about lap the is, scheme recently, in and we he kind QX we didn't wallets, this were a year. the the vertical, through are or and in very of exited and on was of we upcoming rates QX anticipate decision marketing

of late kind clients. ring-fenced we to As a worked did out piece. discrete exited set QX. December, and early through of through ahead we of that, result It's we a We wanted very basically that, get in that and

As we we're business. very well-positioned here that in stand today,

capacity sets is have capabilities specific in lap marketing right to we'll issue one And May and year. direct direction. manage broadest Trading the of We and in the of that QX of volumes. going this strong

So, to business happy our and right decisions the impacts our we've They were call kind March all with those out going then of trends three guidance. of -- you And those the place. X all broadly highlighted, the as in are of in the growth we're really were components. what capture the

ourselves have well. the those as We through high see issues QX growth won't we card lapping very So, and Paysafe QX.

business. to But, add kind that kind blends XX%, little see over that if a growth let that range to else it definitely consistent XX%, that. me of through, taper anything turn down When you to a bit ourselves want XX% we in Izzy, So will on of as year-on-year. all of

Izzy Dawood

Hey. Philip. Thanks, Sure.

do you of finer math kind specifically, to point and QX, how help a the to Darrin, So, mid-teens. guys we get the on putting

So million the roughly year-on-year. we about, accounts specific $XX Philip And changes believe of roughly exited that's some to impact $XX that channels we network those million. QX the talked that scheme a year-on-year in is and

you to how growth So million company. the it's adjust how you year-on-year. mid-teens if about wanted two, get for overall the those, the add And see $XX if to we impact for that's you

Philip McHugh

guidance. wanted -- just discussed, have with comfortable these And Yeah. where yes, said, year items our as folks reaffirming obviously I we to talked. feel full We we're uncomfortable are enough reiterate,

you'll we these year. are these And lap issues shape second-half we're starts So would the kind legacy in of as of. aware taking things of performance their see real the

Darrin Peller

Okay.

So that partly the in integrated just questions yield seeing the getting some explains the bottom also. speakers]. you're compression side on We're [multiple

Philip McHugh

Yeah. Exactly.

Darrin Peller

When just I my know follow-up digital the all the out. the on the mean, lot a strategy of we -- about mean, and the look wallet I I are excited overall. investors what at initiatives really and you side, it's is then build around story revisiting stock new what

update on the wallet of gaming, the with just any it's that's So kind progress the U.S. on market. more what the going like to has to us remittance? expansion specifically into partnerships if or been then, And could you made U.S. bring whether areas over, again, How guys. progress crypto? Thanks

Philip McHugh

I'll other going and profile, for forward. to those a very effectively has are a in of too, both wallet upside One a to regards as it's couple and comments And ones driving the growth lot of our eCash Yeah, Neteller, and business. strong on business is, wallet digital emerging wallets. another us make Skrill which

trading. of in So pleased initiatives, been terms really with crypto we've certainly

we're just from in expanded XX and trade partnership our crypto in U.S. now, our consistent trading in We Coinbase, not but sites. we in FX said With very strong our March, and get and states. crypto gambling live operators, announcement, sites. the in to XX we from As ability signups

the we We crypto, multiple So today, currencies up could free of trading, orders. countries crypto advance could [ph] do could XX crypto do trade XX in we to functions now.

for go a are we'll this some expanding the we basis. us building at some fund that merchant that will a build We'll [Indiscernible] limited to think crypto wallet, we can enable on capability to take really slow looking And those your as but changes crypto and over time, crypto wall So, on to trading. out. be

Tier we where be that's We have up Remittance only not move think gaming, a strong, can be a relationships. trading player we but in to in we to Xbank especially continues strong. roadmap as

business. down market. in Skrill literally and Our cost product. the goes funding most serve the the we really kind instant been us We've And funding then the for tailwind mean market. VIP instant of Neteller And on creates built in that with in in on on We and the U.S. driving That's to focused importantly, spot is base. a client gap that more wallet. focus a the U.S.

with four or setup the season. pilot NFL five that test brands, have the anticipation over very plan We of in we large summer to

how view need their So reacted we're to pleased and with to We're a market. that. We're focused we've of players it, partners placed uniquely product. part gaming-focused who with with pleased really And the that that in that have VIP drive pleased a solve reaffirmed cashier a that. volume the on as large really developed how wallet, very a is is company Paysafe the

So, wallet those the the We're the think legacy are of spoken some before. are that we flavors about these working of trajectory. We've They issues. about when painful. through and some

we're moving well, business to can we the this right. the an well-positioned out Analyst as there. on store Day eCash where started app, So funds our business, you think that out really paysafecard we just to on called Also, call app, we

a effectively XX% from on a we'll our start of this my will the that end through will by go it's longer in to So be revenues that forms of transactional or paysafecard have value It's app. account, done stored where then that gone into app but progress, expanding we other We've have year. we digital it's postpaid stay and IBAN standing wallet. no pre a Once a account, APM. payment

sophisticated also as wallet it versus becomes serving of the as more drivers one traders Z another type of see millennial Gen and more that we the on growth, gamers Skrill. So eCash customers, digital and

Darrin Peller

guys. again, Thanks great. that's Alright,

Philip McHugh

Darrin. Thanks,

Operator

with next RBC Markets. Dan is Capital question proceed from Please question. of The your Perlin

Dan Perlin

wallet, to it so wanted about, there the substantially. rate morning, things, talk bunch explained just of actually digital just we integrated saw these good looks the where I take you so little this like be place we a But saw Thanks a the degradation, reason. quite more here might expanding within guys. it the bit and versus

wondering, year-over-year then One lift on second-half know things. is you that making And I kind lapping And a be how the about should you couple just cadence effects. basis? run so, we I'm modeling? rate a we secondly, as we about reconcile the sure talked this there is, understand of Is any think it? to that will having some

could Thank speak So just you to point you. that first?

Philip McHugh

Dan, from to hear Hey, Sure. you. nice

talk So take I'll mix turn there. about to what's and it over the Izzy on rate going

Izzy Dawood

Yeah, combination so the Yeah, the or use two multiple users meaningful, rates we we Again, consumers in fact love Dan, pretty wallets. uplift wallet let's for start the take factors. and things. think that, with meaningful, of digital our

call FX increased volume actually that exit the crypto also increased general versus FX of because transaction, digital explains side, volume, driver. take in But impacted volume, the combined take kind mean, we revenue the we a on big, So crypto flip of big rates take trading take a rate the the lead wallet rate for discussed first, bump higher decline channels basis. digital I wallets. a so wallets, that that's rates downward the revenue, that with which kind it impacted on of saw,

So consumers again, just do wallet our how are mix to using the their a of activities.

direct higher business, rules that the have earlier, mentioned scheme and integrated likes it our rates. cake pretty which simplistic. Philip in the On processing, marketing is The really really

lower processing fact, here's matter of year-on-year, you our and a rates. solid with if and were pretty saw group take driven, integrated primarily e-commerce volumes As

e-commerce processing the rate So a add combination piece of decline to on and general to the difference integrated contribute direct the take see the growth side. marketing

our a believe the kind So of most impacted -- company, two and XX balance out. part those roughly take to I flat it basis rate was of actually for year-on-year as kind overall, by was

Dan Perlin

you're Okay. markets, question of are on There's It there's to playing expected U.S. of some and to kind gone That's are necessary amount And additional out, understand others brand the drive lot a could then open of help is into the awareness. like you've that wondering, sounds that if I'm how are helpful. that investments year, up. you taking iGaming. place us really throughout just that envisioning things there. my follow-up truly

of roll behind transformation 'XX? Skrill the is to out things the do piece, just and trying wallets, and And I'm then were year. that. mentioned, of then on to expecting understand how achieving that in secondarily, where the cadence stand? doing you investments I do make sure you cost Neteller where $XX You was of just some the you're the expected you. I stand we're the guys on kind know, you that takeout million I it of But think Thank in early that, in but

Philip McHugh

Thanks, Dan.

me iGaming U.S. out the to on So pieces. two break piece, let

activity, both online players, in can what terms tremendous is, of one So from follows happen, that anyone see there's and from casino expect a of we of to amount state. but when in terms also the market, obviously,

as as currently go York activity. So all to and plans we and legislation early active legislation real sometimes live with Connecticut, some as plans at Wyoming, But Florida, year. with pretty of Massachusetts also with Arizona, We states year, Louisiana, early the not advanced live go to this second-half XXXX. the early Maine, this with and also XX New Ohio, see see Maryland, as if

So, where of to gaming. we can have opening see XX states XX up you a path up the

that about, the integrate, very a playbook tailwind. now. is talked nice To consistently that's we integrate one, So

with integrate to gaming online have players. You the

the side, you're so integrate that's card And ground account gaining Playtech. You servicing ACH processing, a debit processing player platforms by plus and that Games management Scientific have credit to like and with conductivity.

So we're winning in that space, right.

BetBall. We they where there play. we up have big Playtech mentioned open mentioned players, the a states is share of Parx, a We as large WinBet which and

So states. live we multiple in in are those states

well-positioned be we'll there. So

that's So first is and part formula of drive that grow. the the

the part develop wallet other seen we've which markets second the really of time. over The is digital formula, to in play

In why that pilot piece on the on the as that. the we second Plaid top funding We a processing leading really becomes integration growth, got the Now fall. of backing into that attack are segment We've the summer. with capability on that's payment to to our done. growth a follower. through an see VIP we've that view, And power and that's pick engine We instant the up the start to of where there. we market integrating second go that

little that out. we playing that's how So bit a see

dollars, In but off, off the towards thesis, ramp marketing will year XXXX. takes as on be Skrill the the and of terms to marketing end doing the the us see some and some you'll takes of pilot Skrill into up start brand of we

then little terms that. takeouts, kind incentives. a of also bit of the of all transformation have worked had have kind We've we of with projects feel in that's last on part, So, specific strong Foley they family there. the the We And good and really cost companies the a about program.

implemented So Foley pieces of lot Bill follow playbook. to a we've the

million several have year. run that exit $XX takeout cost building $XX rate kind activities our next in into there this augment the XXXX. about of million other for of repeatable for guidance numbers cost We of we're to pipe are That's year. And a in that

back-half a to EBITDA continue to do as going that drumbeat steady into we year have expand in expect of year the margins well. the So, like next

of there. lot focused a it's So, activity

Dan Perlin

That's great. so much. you Thank

Operator

of Friedman Jamie your from is Please with Susquehanna proceed question. question next Financial The Group.

Jamie Friedman

morning. good Hi,

I in congratulations. ask, your think the you could qualitatively to you wondering was rather quantitatively? echo elaborate me remarks Philip, or commented Let April, in had about wanted strength prepared that I I if

Philip McHugh

early We processing, record some trends with continuously records, at the had We've for we're days are going. early to seeing, historical be recovery in definitely results some May. actual even but as historical and April, top-line just where No, records, not results we look e-commerce the records. very in pleased

some seeing into come e-com sites, crypto our we're expanded travel back. we've As trading

very continues well. some eCash my only adoption, to of to online remain really the points don’t but Paysafe not that. app also to across you know, Izzy, we're to move strong, in the board. terms if So anything the add proof seeing nice I as want

Izzy Dawood

was you Yeah, year numerically, But, last solid. love then I'll I'll incredibly April year some been has to just very things. add, and probably say this April, depressed. tell

from different through crossed, significant April to will at COVID world the of a see. that How pretty and the So, we solid of least see, We'll have, that so far, I'll June? the speeds and into month really start say we volumes. But, play metrics fingers recovery. off April track growth, all May goes and as our in

Jamie Friedman

follow-up. Alright. my as And then

of So in is the Can remarks, you observed had of least the that growth volume I your think prepared dimensionalize online the the at in beginning, online. offline, qualitatively you again? versus the Phil, XX%

Philip McHugh

outside is the in direct seen we've strong What marketing of generally we've the speaking businesses. digit double our course, growth, e-commerce seen vertical, very

we've been business digits. extremely in Now, high and on iGaming happy it that obviously, business across calling capacity sales of e-commerce the very is business, double front. e-commerce we're investing us board, our with an and But sort the

Jamie Friedman

queue. Got Thank jump you. back it. I'll the in

Philip McHugh

good Jamie. Thanks, It's to hear you. from

Operator

question next Josh Please from The is your of Research. Autonomous proceed question. with Levin

Josh Levin

is it XX% one, tell it questions. X.X Can wallet dated? much came North Or, two digital Hi, And versus I out unchanged versus it have good how us changed? that you called you report. if the from active number? number, Number for users processing morning. has Thank growth from why wallet eCash? current iGaming. looks that Or America not a in number then you. million, digital the a current last is Is

Philip McHugh

want to that one? Do grab you

Izzy Dawood

gateway second-half doesn't Hey, on volume iGaming Yeah. instant good as well. is we're us. you full year. in in around right roll Josh, program force now Hey, America funding all out is the The to Plaid the with wallet of related. really that a common North this from predominantly or hear e-commerce the rolling till the the supporting And concert out of the

which e-commerce an is a well. growth of maybe pretty the line as market much have all expected, of would better much the kind about in little pretty kind is what So activity,

end of terms it's it's from QX. active static, of no the million In users, unchanged X.X

channel that still an still go we're still muted we're the updated some lapping continue as to Obviously, outside, but and the quarters we'll the like. in exits through QX, the it's impact as less, then 'XX number And -- there's is impact. So along. QX in update

Josh Levin

Thank you.

Operator

Our from Point. Please next is [Operator Instructions] of proceed your question question. Compass Del Mike with Grosso

Mike Del Grosso

But, whether those on expectations, question volume or the as some could of help of know us it's your A question. segments? this verticals, processing was some the of quarter other as you my there. some kind integrated performed taking Thanks. the there to SMB growth in I travel XX%, relative for Thanks other how or channel exits morning. out far Good

Philip McHugh

question. for the thanks Hey, Mike,

front. of continues the smaller to is SMB tends a seeing we to the space, nice decent had which well. across actually SMB, strong. really, what as operate. But generally is us tailwind recovery that There's the in of Two, actually board, well across. return on board, a are has like camps for portfolio across be is on We which So, wellness, is that's U.S. amount recovery a seeing That that also and very good. been to the we perform we across and side some to a a we're Two, travel. really a our kind which robust Petro of SMB of where and extremely health have business lot restaurant retail

in continue working want the And us as trading, while where FX will think story crypto digital trading, engine So, on we also trading wallet introduce hook finally, a those growth processing emerging really very got I we're you other a really and with great be relationship. to We've to we're working for mention able processing a seven of tailwinds. XX in those closely, see wallet, that's that that? Paysafe sites. with that are we sectors And client, nice really. develop. you teams, crypto of we've and And see Izzy, share, continued did that's wider share. very which add a not to they're both been product in closely available then the a but grabbing get only And, working that to together, worked sites to on we

Izzy Dawood

really multiple hospitality travel seeing that Mike, because in is start strength April. good we mentioned, quick Phillip and across interesting, Yeah. of really the one sectors. things more up really piece is interesting, The as pick that

and Some opening of start came up. the things to state restrictions down

restaurants kind QX strong as the April and of retail as into health in also continue that growth petro, supports well. and wellness and So

but wood mean, business, green see strong almost knock on we I here, really far, everywhere, So shoots processing vertical. across across integrated our

Mike Del Grosso

XX my the existing to legalizations, is you've I stepping XX-months. the state today think here the of to relative in back, and you as to next maybe Great. XX upside legalized I Thanks. does on your XX the then know, But, Like, you've compare mentioned initial expectations were how just got we what your guess this iGaming the that Is they and of it, opportunity. then? incremental presentation to on I qualitative story? last QX. lot March, kind of growth then, XX% revenue a had follow-up think U.S. the in about comments And

Philip McHugh

kind and I Generally think when and better look two talking at QX, are or it's we were that. kind QX, there ways than happening answer initially. we about you to when back about of QX, speaking, spoke faster it of

cliff. it's a at an state happen. might that think generally, and strong budgets So, we're that believe seeing COVID going did We be accelerating We force.

New York that. great is a example of

positive overall, The we So slightly up only go a we opens every a would same state said. have more that's trend way. what optimistic on not state and by as basis, caveat than through state the

then operators, for multiple open up for lottery first, and up sports some second. will opening are Some betting

will be select of very operators. Some specific allow states very like York a and only few New

So that's integrated if into great. you're that operator,

that miss might state. on a you chance of out more not, of you're If

of drilled management generally big across But there's the names of important account and We're little speaking, Mike systems. the all on you we as very big the well or the integrated a it. player nuance, with very So bit a well names. down majority big are integrated

does pace. these accelerated open well states that a serve up at us as more So,

Mike Del Grosso

Helpful Thank Great. you. color.

Philip McHugh

Mike. Thanks,

Operator

is question question. Chiodo Timothy Please next proceed with of Suisse. The Credit your from

Timothy Chiodo

Great. that are I just business. segment Thanks processing, Clover understand or the talk integrated about Maybe half component the the this SMB, morning. taking question you roughly for so the guys revenue. could of On within Maybe is there? there how that for to largest rest is the overall large business that you? SMB talk compared How about Clover. resellers the to and compared just And maybe of portfolio? one of the of the grew relationship the you

Philip McHugh

devices we've country. No, It's Clover definitely we have. definitely larger talked which resellers a past with in Tim. First of Thanks, Data, one continue Smart the to we're of the great the relationship that in

also call don't I terminals exact on scale hand Clover in you been, improving follow-up focused So pop. pretty us a that share. very to backend and Omaha. more drives North agents extra really in Two, capability and And and this auto of and closely of operational has e-commerce we're onto driving focusing capability, TCIS, with board on cut been an the the powerful state of our a assessment gateway been working offering, It market, our SMB efficiency, lots the that into get where you that's the first either boarding having we've have can as [indiscernible] breakdown. of attracts a in for single strength. well. auto actually We can serve. or That's we're focus integrating an real Where there. more certainly of it

that. So front beyond but can on couple nice on that there's a developments sales, follow POS up happening of the Smart we

Timothy Chiodo

you yield lower? slightly higher, Clover yield? general, just relative the in describe describe the you slightly to Okay. would Great. then, overall segments in And business, that line, Would on the to related that as as roughly

Philip McHugh

up. the I'm pick yield I business? on didn't you that said Tim, Apologies. which sorry,

Timothy Chiodo

portion of business. Clover The the SMB

Philip McHugh

POS the more, yield selling the the a there yield have drive to yield between of would higher in to I at a than going on merchant the [ph]. But meaningful day. We size vertical POS the suspect Clover there's the really is delta not portion? check. of Oh, is end aside the actual and the double What's

But, approached that's confirmation So, from we with way that. back certainly can of come the pricing. we a

Timothy Chiodo

Great. taking so Thanks Okay. the for much questions.

Philip McHugh

good Thanks, hear you. Time. from It's to

Operator

for remarks. to questions McHugh There no Philip call this back to I would at the closing like turn are additional time,

Philip McHugh

Thanks.

the everybody. everyone large a to questions. for on crowd performance phone, some and Paysafe. where Thanks growth thank have for forward joining. taking and We for the so Thanks, follow-up sessions on We updating for we're look you the of

Operator

conference. This today's concludes

participation. lines your disconnect this you your Thank at may for You time.