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Paysafe Limited (PSFE)

Participants
Kirsten Nielsen Head, Investor Relations
Bruce Lowthers Chief Executive Officer
Izzy Dawood Chief Financial Officer
George Mihalos Cowen
Dan Perlin RBC Capital Markets
Jason Kupferberg Bank of America
David Togut Evercore ISI
Scott Wurtzel Wolfe Research
Timothy Chiodo Credit Suisse
Andrew Hummel WestPark Capital
Call transcript
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Operator

Greetings. Welcome to the Paysafe Q1 2022 Earnings Conference Call. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to your host, Kirsten Nielsen, Head of Investor Relations.

You may begin.

Kirsten Nielsen

morning. good and you Thank Welcome to conference XXXX first quarter earnings call. Paysafe’s

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

You on should these statements. place undue not reliance

Forward-looking the information statements update and no as non-GAAP during this contains call under to will that speak we date only of measures them. obligation also rules. financial call of presentation constitute Today’s this SEC undertake

measures comparable and which most website. and reconciliations who CEO find on today Relations could CFO. this May appendix the our You to Paysafe Investor are GAAP as Bruce press of release measures section and non-GAAP directly Dawood, in in today’s Izzy the available on X; presentation, of our additional information are these joined me financial the With Lowthers, about

While I many have delighted already of himself introduce with from with directly. today to him call on to am us the to at tenure you you his XX-year Bruce are FIS, familiar

call Following the results over from strategic to in a our I Bruce, financial turn few Bruce. remarks highlights more that, and Izzy discuss will will detail. With

Bruce Lowthers

today. Kristen. thank Good us for Thanks, morning, and everyone joining you

quarter, I February. following into to the Europe in Russia’s tragic I Before Ukraine in the of jump want acknowledge ongoing invasion events

mostly little for I the Paysafe past such impact on Philip the from team want welcome European leadership the lead pivotal but teammates visiting committed placed has Coming during happy and the the trust time. for over last tragedy. He to in compelling warm only took to few Paysafe a upon. time. thank at me to why his next also for was will this I not the our later. observations company of appreciate discuss to for offices, he I I XX Board the week on through and and Paysafe role background a pandemic today, started the wars important in build are major joined our now, share and the European having this days our foundations public, Having through We helping few the results a Izzy Paysafe am this in been to years laid Having have I also great to career a my navigated step am personally. fit listen-mode company. a and in us

As grateful FIS, most with. wonderful teammates of not you already XX President. at last I know, opportunity the for I as recently to am there, time but I my have the only spent work the had most years

in forefront drive Paysafe of the well talented payment already as the both team at positions lot and a innovator growth and attracted and the and working I the us. was efficiency at I opportunities an entrepreneur space to have in as discussing number growth as Earlier had XXX also career, company FIS around on to accelerating something of involved consumers focus was payment believe needed and I that the the I important co-founding fast experience startups in reaccelerate technology and my there, passionate ESG me me world pioneer the entrepreneurial enjoying spirit products, very startups myself potential businesses my am the improved the at a days of in Paysafe. company marketplace. While and unleash. Fortune forefront I was Paysafe both remain very consider a leading a for I to of I to compete to for focused experiences early on the always to experience, is modernizing innovative client enabling in pace sales. strong growth today’s and will see ahead. a for with with heart.

turn touch for the a highlights will Izzy, on Before I quarter. call I few to the over

adjusted as progress was Paysafe by First of range market the including from Ontario’s operators. the to was $XXX continues a digital including iGaming, as revenue merchants the continues high-end $XXX commerce, with pressures turnaround show as XX% EBITDA been end-to-end revenue quarter million business million in exceeding and to respectively. and grew Paysafe access with strong segment, wallet to a across of and acquiring while new for guidance adjusted come leading FX digital absorbing in launch payment both private solutions. well Europe. performance U.S. market have the More the The early quarter, Paysafe’s EBITDA which overall full impressed successful in demonstrate from America multiple impacts to North broadly, leadership I pipeline XX%

FTX, the Additionally, into exchange. another leading to over providing earnings to Izzy share shareholders to team with Paysafe’s quarter. more the now, crypto call. an update turn our went partners, results for with business and the finance meeting and on to forward Izzy? and for our of the I call the detailed next progressing of members, clients expansion and review on recently embedded But a perspective I’d business look like over live the months we is coming well

Izzy Dawood

Bruce. Thanks,

through Slide I our the on a provide financial will updates go X. Before few starting we priorities, strategic results, on

Vitana payment payments real-time trust key continue cash and We to across with go-live wallets card activity crypto, verticals, our broad them online see in very merchants a commerce digital traction including navigate our across a complex recent In for Paysafe help solutions. of remains verticals, where processing. delivering support banking, to strong, growth digital processing, of and lot global options card set

in customers based strong by instant on well for we the to banking transfers. FTX now open Additionally, European exchanges cryptocurrency is where economic embedded pipeline, step-up for payment as as addition well win organizations. with partnering as exciting to area in wins are to Binance, large continue optimize as and another FTX crypto finance facilitating payments recent purchases interest as payments see our This e-commerce with part we of

lot of continue to vertical. demand also see We financial the services across a

Our eCash meaningful Tomorrow is has neobanks and Bank. partnering and business supporting a player Solarisbank with become now

we recently are offering growth expanded with our trading of incremental merchants several driving digital our service ForEx having wallets. beyond Additionally,

we Lastly, in are of North America. seeing good progress iGaming outside

with card As states. one to multiple Playtech’s to touch into streamlined also Europe API, follow. collaboration and now our platform single In successful integration starting extending global Through digital example, America, wallet recent in are presentation. set we payment Paysafe pleased of UK acquiring across and processing Europe UK we with the in range that services following Paysafe a to and traction integration solutions, with Playtech with on operators to leverage later I the be also U.S. access our more Paysafe’s Latin will able be the our continue acquisition will of and payment a with

update at that in the Now, iGaming, Ontario long-awaited market April gross jurisdiction Slide for private X starting on American iGaming in America turning fifth opened to $X.X market we estimated X, on maturity. for its successfully largest an North revenue which operators. reached launched to gaming be billion North is with Canada, Ontario

on delivering full builds We XX are lotteries, operators, of the which stack and with the with processing multiple APMs. provincial market years live leadership local of

transfer, supporting amongst e-transfer, Gateway, Paysafe’s betXXX, and alternative Direct, funds and are others, payments including used by providing Bet, through processing, traditional consumers. brands, payment eCash is Canadian widely a We exciting Caesars, electronic and including card popular accepted which theScore Visa BetRivers, PointsBet, Interac method

in of Washington. some now form Turning are legislation jurisdictions XX legal iGaming and jurisdictions coming having the that an are to where the go allow Puerto in passed, in including Maryland, Arkansas live additional we has and to recently months live U.S., Ohio, recently added we Rico four prepared

out user including continued volumes results are Skrill more strong of seeing in up double Wallet, growth revamped sequentially sign-ups. also new and our We than strong Digital

launch our last with shared media Barstool’s assets. variety media the we campaign As QX call, U.S. in our the to we of in on popular a with Skrill promote are Sports to brand Barstool utilizing prepared you

X app, and in we for key Skrill’s be National’s with operator Importantly, thrilled America Sportsbook North Skrill to the Barstool is a are first integrating which Tier Penn team. milestone

have Europe. new we longstanding for we U.S., a momentum XX% presence be Colorado seeing year-over-year Betsson, strong our very Lastly, wins revenues a including our grown clients. Volumes had and across are year-over-year and expect expanding the recent existing with both XX% to of we across XXXX, with number Overall, over in XXXX. partner our to over expansion have up

progress. of in as our our the taking we the and digital European competitiveness we seeing Now, to growth earnings turning deliver business continued of the is on our are a to What long-term progress initial Slide actions X. organization today digital markets, refocus on wallet we wallet call, On signs last in are opportunities. result improve discussed

the Our implemented to improvement in Across bank points total more with actions XX% we than regions in where to deposits steady optimize monthly pricing positive see XX targeted data show and to we up from September up Europe, continue have deposits countries March. in deposits XX% continue to changes.

to result, markets. rolling changes out As now additional these European a are we

and in the also are in conversion funnel sign-ups first improvement to trends We seeing positive optimization of deposit.

talent. a improve our in at experience progress growth drivers have and have crypto. discussed Skrill last all such the Since in mentioned QX. wins joined I conversion investment the continued things X% Additionally, merchant from our initiatives in key rate on Elbruz experience have to as from increase embedded and We deep term recently at checkout longer we and resulted to brings welcomed friction progress Bitpanda QX finance already the who the in reduce checkout Yilmaz U.S., us in is piece our

him our have drive to on board to crypto excited are We strategy.

in FX Europe, conversion seeing us is deposits, development business proof and embedded wallets, as and Megan We and summarize, of Oxman, including new are welcome the the also in wallet key impact including Russia drive X-month teams excluding actives. product metrics To underlying the market improving Amazon’s solution. from we finance stabilization digital challenges digital our to who rates of payments such and for points joins Ukraine,

We market a us and the be year, expect taking XXXX half the risks Europe. absorb in enabling we in are now, momentum building actions transitional with second to to

our executing X, also which banking we program, new XXXX additional banking are On million our enhances $X have in against in already. the bank, including QX our an relationship of X portfolio, a added Turning Citizens delivered partnerships, cost expansion Tier processing capacity. have we we towards as $XX with to new million and sponsor targeting Slide it

targets. to On the integration recent and on our continues team plans the deliver acquisitions, synergy

eCash countries SafetyPay. than We additional are live merchants with we are expanding and through with XX to in America Latin PagoEfectivo more

with opportunities live We there. have to looking performance uniquely markets. and countries, wallets, merchants SafetyPay is and digital PagoEfectivo currently completed Overall, the are online then integration NETELLER X in exceeding or which money and positioned our to into into expand we into enables growth expectations from wallet cross-selling Skrill for the new to deposit are load consumers our transact and

Moving and than to our by for was slightly to a due and mainly than cost guidance. our expected, of Revenue our higher continued performance FX better commerce impacted acquiring performance adjusted Digital Slide EBITDA range, somewhat management X U.S. stronger-than-expected in rate. of snapshot performance but the discipline. versus also guidance came

Moving acquiring. are $XXX that I revenue will to have compared QX as volume X% $XX.X Slide skew rate. volumes of driven first or as was last of which not portion finance us. the to embedded million, year. XX% of revenue was growth of does QX significant increase Therefore, not year-on-year, we take results, for exchanged point quarter our summary a out a to volume X not U.S. by for Total the an drivers the XX% overall PXP, include for down the it our solution billion, excluded from are

in resulting EBITDA reflects in the is in related sequentially, of EBITDA the adjusted from as inorganic down foreign increase changes the acquiring U.S. acquisitions. unfavorable QX from in That which by approximately primarily mix to compared impact compared XX.X%, million, margin partly business of recent QX but was benefit year-over-year flat offset $XXX margin adjusted the of was to commerce. EBITDA exchange was last digital Adjusted rates, year the to offset acquisitions, Excluding from of year. revenue recent SG&A and XX% growth change which for quarter stable last

recovered cash on mentioned at our on meaningfully last flows reflecting an free basis. for trailing XX-month as Lastly, Paysafe related to U.S. in can quarter including cash of acquiring XX-month payment end. was second tax as half QX Conversion as expected XX%, call, fluctuate it in taxes paid, year. on And this increase in XXXX, is a withholding capital in I be a to evaluated basis the well a volumes best working growth of

cash call, QX QX, last free with year closer year we XX-month a flow and to QX prior bank from on flow XX%. before the the of XX% In free Additionally, full our conversion recovering between benefited in trailing we guarantees. conversion to cash expect utilization basis. expect Consistent XX%

will by on Turning to macroeconomic of which $X.X capitalization impact sustained debt to as I due liquidity on XX, an decline non-cash as market is This no cash covenants. loss the touch or well and stock of Slide our impairment our in billion. net flow, has our briefly This goodwill price a conditions. was driven charge, current market and

XX% we was rate tax Our than XX%. tax X.X%, the Ignoring the discrete warrants, and year, estimate our of on deferred of between effective tax X.X% and rate our gains the impact for and QX result will items impairment. primarily tax of was rate discrete quarter which at effective lower range on as a last losses goodwill

has the take year-over-year, larger mix is sequentially a rate take decreased rate Paysafe volume as and has is predominantly take reflecting you segment, this from and rate XX Slide largely U.S. see portion the the increasing improved the XX% trend, U.S. as digital acquiring for take within total become to a of while from last of rate can to The down mix acquiring in has lower has driven a year XX% period. commerce business, mix this QX our sequentially, graph, summary Moving which stable sequentially. of

volume I embedded As total not finance. earlier, the mentioned volumes from does include

in decrease up XX% XX Moving compared digital year-over-year. the QX. the $XXX.X reflecting commerce. were was including in results, seen prior headwinds of on for and which up billion starting $XX.X in the you million, to Europe, Revenue a operators, unfavorable have region European business year, mix, of regulatory discussion and who are Slide impact from also double-digit to FX Volumes with results segment the for declines reporting a X%

lockdowns growth tougher Europe. which COVID-related eCash Additionally, the a prior business faced to benefited year, in the comparable from

acquisitions, which EBITDA from impact Excluding partly was quarter $XX.X revenue and additional the X%. revenue the unfavorable in of SG&A recent the down reflecting XX%, benefit inorganic down Adjusted offset acquisitions. down first FX, million and from the was lower the

earlier, slightly deposits, we with results of other excluding metrics. the business of the FX digital our rates impact. progress expectations, show continues discussed and conversion were digital the As improvement to turnaround Overall, ahead wallet in in commerce

margin first Take rate in XXX XX% XX% the lower volume of year. to Moving to the reflecting an the XX.X% year-over-year, for XX mix U.S. year-on-year U.S. year. to prior U.S. segment. million acquiring prior quarter was primarily the to million, acquiring and $XX.X adjusted basis $XX.X to channel increase quarter. within for more than increased to XX% Slide first increased EBITDA Volume Revenue in acquiring. billion points Adjusted and the increased compared EBITDA compared was $XXX

to track direct our growth segment is the on vertical well. our expected as year-over-year Lastly, marketing acquiring within to is and U.S. contribute beginning recovering expansion and as margin

quarter $X.X LTM end. billion, and look to the EBITDA reflecting at we net were equivalents to Slide on million at XX. SafetyPay X.Xx, closed and debt adjusted our was January Net debt ratio XX acquisition the to our and sheet Turning cash liquidity. $XXX Cash balance was

start Our debt excess down use our primary EBITDA. of towards cash pay of our moving X.Xx to is adjusted target and

Let’s now have to to our and the rate unfavorable XX Since macroeconomic call, move Slide guidance. our exchange to movement USD-euro discuss see uncertainty. we in last continued

based single to performance $X.XX the on we our to up year is across billion are confident today. and headwinds we pipeline seeing our and us flat based on mitigate between digital expected full and basis, absorb of remain acquisition double are is enabling in what grow we year, single continued acquiring On in digital digits and full However, acquiring, to outlook be seeing on billion. commerce, U.S. digits, to maintaining low we expected our revenue a commerce U.S. momentum strong those revenue high $X.XX revenue reported expect digits. to low a recent

$XX our $XXX by the when has call total million U.S. against EBITDA the first approximately million. For negatively the an annual million and dollar euro, on XX, and XX% the EBITDA which Since provided, revenue outlook strengthened impacts $XXX million be between is $XX adjusted expected company, by adjusted basis. was on November to

assuming no of remainder $XX parts revenue the and and full year revenue we’re for Belarus Ukraine. in million million on Additionally, in the basis sanctioned a of approximately These areas year also Russia, adjusted contribute from $XX in XXXX. EBITDA

rates $XXX in saw remainder For QX, to in we exchange the million, adverse QX, adjusted movement million $XXX a and of EBITDA at revenue expect consistent assumes $X.XX the for million of reflects the range with to million what USD-euro $XXX $XXX we April. rate of stays and in range which

single-digit a gambling digital by growth year-over-year high regulations by ongoing and impacts. offset in addition Russia impact U.S. driven the expect to expected, adverse Ukraine in We in as Europe, commerce FX in acquiring movements decline of

start expectations. to half will off our the as digital rate across year, remain this synergies growing second outlook at to To our growth the embedded in by macro and good year of the optimistic quarter summarize, a full at ahead you year, Looking in finance posting driven acquisition Paysafe good year pipeline exit of momentum we we impact see first of a commerce. growth. U.S. results double-digit our and our acquiring headwinds, Despite is in the QX

to growth the lap We second that, progress in the digital see to to continue up year questions. for let’s as improve Europe the half call and impact changes in and in the the the some open of With margins we expect of wallet. of start regular

Operator

proceed Cowen. your is question. question first from Our Instructions] [Operator with Mihalos with George Please

George Mihalos

and welcome forward taking with thanks to working questions. looking aboard, Great. Bruce, everyone, morning, my Good you. for

Bruce Lowthers

George. Thank you,

George Mihalos

sort a just perspective, a again perspective, whether a that now early your focused ask you’re days, days on, vertical from of be the but Maybe product where sir? from from a bit focused sort what to at of are priorities are you sort that early in premature, initial wanted of just Paysafe,

Bruce Lowthers

Yes, for the George, thanks question.

the go week in think We’ve As around But I on me. of and got we organization have meet we some a front amount obvious. fair grow do the business the getting first pretty get still again. me, that to look this of it’s opportunity here behind focused how of to

tools. have We great of lot a

The of done over has technology We job lot strengths. couple have really great last a the a organization of years. nice

focus around You risk great of global around Obviously, automation Really like the of cloud-based and emphasis technology, do. what in a great majority see API compliance. for RTP, of of great a a new lot lot advances single a innovative vast the we technologies on licenses on basis. base

So a with. And and to about culture really we work really and lot do. of it’s great together assets growth kind driving now of a think pulling that I just can them

George Mihalos

the Izzy, mentioned, acquiring of Appreciate outperformed, sort grew Perfect. double-digit. U.S. that the quickly, color. that then And as you

if if callout where can And of came from, you again, upside share curious surprised April to you trends guys. willing upside? you Just the maybe kind are through Thanks, that? to the what

Izzy Dawood

for George. Yes. Sure, Thanks question. the

acquiring the which retail, that, doing a really soft the On Ascend U.S. great hospitality of just in a been January off, the improvement really take contributes has overall margin saw well. post-Omicron. top On strength. start after to like We as job on

XX% saw increase, you revenue EBITDA the XX% So increase. margin

the the find have well. continue right probably synergies of areas as April acquirers as years. strong, is expectations So acquired coming you’ve like seen remains been businesses now in to And in other over that in

George Mihalos

you. Thank Great.

Operator

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

Dan Perlin

final you I making. comments just morning. Good of some were to go to wanted the Thanks. back

– absorbing and FX a lot absorbing of Russia headwinds and You’re obviously Ukraine.

us that’s taking gives more half consideration in again you so just can little you and could ramp through on these meet in But a maybe much detail walk a So that out all you and I you called of Thanks. half implied, second the confident synergies finance. about into confidence, that so feel embedded mean that you the little acquisitions and thinking what go deeper how if maybe in why out expectations. second maps levels in can

Izzy Dawood

Sure.

many it things the we question. When guidance kind right could of to approach did right. thanks for as I’ll go it, risk-based the – take throughout Maybe a how to could develop go we back things year. maybe we developed take wrong many more as So the

So that these the is some headwinds. to absorb giving capacity of us unforeseen

longer. we especially of was ramp-up that The our did on second a the would embedded thing took some for our pipeline, little take larger sales just enterprise finance, a view

to into Now started we with the you coming we finance the with We that’s up as specifically, solution. finance as went occur. April. we half, live know, and of actually things they we them One embedded are couple ramping in add is, January recently, methods about that. very pretty finance, and good a through, feel for in second But as FX signed slowly, additional payment get embedded

ramping year. So starts the that of up half second

talking seeing – really run is should that and adds making of and then and excited so to the ramping that half announcing have been integrations to – as rate North to Barstool Skrill up and the have about Cup iGaming, plus help a we’ve the in We half integration other our again, second World QX America relative start about the state first also states contribution we that finally, well. in

are couple that are behind that of build of building there to from blocks you we up a that Does half kind where second color So get up ramp it? the QX. help from kind of

Dan Perlin

that’s for think I a you roadmap guys. No, Yes. great

talked mix average U.S. outperformance, callout shift seeing as one like inflation am about acquiring being I real in for Just the an to slides. of you that I underlying your think some that wondering, are ticket, is think I reason quick, you just we follow-up on [indiscernible]? for a or

Izzy Dawood

our maybe services, So increase XX%. something to average higher, closer and general actually I’ll right? Petro – So seen inflation, retail up tickets in it’s not, we’ve it’s an hospitality, things maybe on seen go average ticket. X% out it’s about two break our year-on-year In our but we’ve year-on-year,

volumes that business. part show ticket prices really it’s a smaller up call impact gas we’re that average little the we’re – the seeing bit of acquiring, seeing seeing. the kind in we’re overall what you U.S. the So higher for a the but of Again,

that than call of something inflation increases. seen terms it’s years of prior more year-on-year out probably but in big we’ve a just in – not So

Dan Perlin

Yes.

take We will both. you Awesome. it. Thank

Bruce Lowthers

Thank you.

Operator

Bank Please proceed your from next Our with America. with question is Kupferberg Jason of question.

Jason Kupferberg

morning. Hey, guys. Good

down Just year-over-year? on take us the And left just wanted there then bit U.S. a you a rate quarter-over-quarter, acquiring what tell revenue? mix your bit revenue in little factors off on picking between drove elaborate revenue or start you little can up can acquiring, down the volume-based and per up that just is U.S. mix but transaction to

Izzy Dawood

There is two Jason. things right, there,

predominantly we’re some in So have way, the on the slightly And the side, our chart, seeing XX by rates. higher of acquiring just take much in thing. by a it’s just driven rate we more increase retail is That’s volume, a smaller of a it’s in but which greater increase increase. uptick hospitality the basis take and rounding point a

So not the impacted take your me. impacted that’s second like rates got question, we’re and more view year-over-year, on being stable Jason, and seeing in just it a again, remind

Bruce Lowthers

About transaction. the

Izzy Dawood

you call probably than what Yes, driven more to transaction XX% it XX% driven. are volume we about

Jason Kupferberg

then around just some balance follow-up And leverage. on comments helpful. made That’s sheet the Okay. the you to of

think end I to roadmap last share year. this deleveraging would that case? Thank any quarter, sort you you in low on the by expect had of said be Is potential of the it And you. of to this pace kind still of Xs want the year? the beyond you

Izzy Dawood

hitting by are the X% low-Xs, expecting were we potentially the of year. maybe just end below We or Yes.

or down of loans. pay debt actively are some buyback quarter using either our our We cash our excess every to

that for is focus pretty important us. de-levering So, on

Jason Kupferberg

you. Thank

Operator

proceed your is Evercore Togut question. Please with David ISI. question with next from Our

David Togut

Thank you Bruce. and congratulations,

Bruce Lowthers

Thank you. David. Good morning

David Togut

called comment out Tier X speak On Skrill winning X near the pipeline Slide encouraging. to very adding which for chose operators operator, first on the in other X, its future? Tier Skrill operator you why Can Skrill you that and is

Izzy Dawood

I all kind channels what overall Barstool their credit building – has capabilities, really them, across and or relationship say with built we them. as brought brand, Zak can the we it’s And team really that through it of and into the their and media brand of using in with their a prowess not that Barstool onboard of strong to payment last that do Yes. sportsbook obviously terms do media Skrill would us, integrating then to He summer. really lot well. really have a Sure. platform we into social just our

So, of Skrill those team the of announced other excited has kind the lot of a whole it – are yet. takes that Skrill talking actually goes to and a we about no, relationship, we all it. operators exactly through driving But And pretty momentum. yes, just couple

have amounts seen sequentially. the We enhancements high XXx we through allowing still It’s great proof growing and customers some made, It’s to VIP the of good doubled but points. Skrill small, we really go VIP the as Volumes a have year-on-year. at that rate are up some the dollar USA.

about coming operators. is in So, able conversations all X campaign with operators. X in other momentum Barstool talk us that is we are Tier our just the with to This quarters, Tier helping starts QX, everything signed. hopefully, And

David Togut

that. Appreciate

follow-up, adjusted And see for five organic your expectation quarter? of a X% organic in revenue EBITDA what growth fiscal was ‘XX points as Just to organic the growth is the growth? and still

Izzy Dawood

organic, you David, mean just being And be now around the acquisitions? to clear,

David Togut

Yes.

in quarter? the the year as And for what organic revenue growth EBITDA whole, ex-acquisitions, a the expectation your ex-acquisition? what’s organic to So, was

Izzy Dawood

Sure.

So, for was effectively year-on-year the our offset by FX – impact organic growth, the M&A. our

X% So, with you consistent we can past growth was probably calculate overall like pretty And for in the roughly the it. are M&A said we quarter. that driven.

revenue in contribution deals XXXX. we a million $XX from contribution $XX have million about pre-synergies in in the and expect three contribution We done that’s EBITDA

we on track still that. So, with are

David Togut

much. very Thank you Got it.

Bruce Lowthers

you. Thank

Operator

with Please question. with your Our Scott Wolfe Wurtzel Research. from next proceed question is

Scott Wurtzel

wanted for in the decline touch guys. and I the your progress the that segment that inflection quarter an We would on continue what just It you second. on user wanted and inflection good wanted for the to Hey, about growth. thinking for get This Scott good But Darren. just be? the on conversions. made on was to a Thanks. increased noticed just to it see morning potential to growth, I of digital some sequentially wallet is user touch the on thoughts to during deposit drivers of potential pricing

Izzy Dawood

the of decreases. primarily one things and we operate, are And seen going Germany as our driving which from gaming and seeing Europe, Obviously, wallet well. have e-cash where question. in into in good XXXX. wallets across year-on-year Scott, you Sure. Yes. that and other regulations operators that impacted Netherlands also It’s digital reset are

seen So, we active XX-month decline. the have

to through that challenging are last or that on for where seen stable. comps stabilizes. the we expect have three will active, really said, and months, decline of so That the targeting that one-month QX kind with QX two relatively the being months we We

us it’s gives a of that So, little bit stabilizing. that comfort again,

inflection some the on rise victory business are slightly where just the team again things and core doing of the declaring is the Chirag yet. it are improving. an up right metrics get point stabilizing where not are We to and

Bruce Lowthers

on team would to I that that some really just And the great hiring I it. are initial Chirag see is pretty quickly. going add you really think view talent. doing. building of is like He some I outcomes

Scott Wurtzel

of higher-level just Great. then FX of as just back you impacts the some follow-up, guidance? the Thanks. macro a guidance headwinds And and Outside to assumptions your here. are going can Ukraine, about in Russia, that Belarus maybe the talk and embedded from

Izzy Dawood

Yes.

keep the don’t the impacts items impact the isn’t will that in see probably, that what probably Those – us. are two. we or volumes. any impacting or recessionary Europe see unknown we an on be based would macro U.S. now Right not that planning we of imminent. in today, that the QX are anything is two one Right change But the regulatory the of we that on. think those either see for our Europe I happening right guide. probably an of we the largest now, impact two other And any eye two the now, in in macro even there that is macro assumption assumptions rest year balance

Scott Wurtzel

Great. Thanks guys.

Bruce Lowthers

Thank you.

Operator

Jamie is Our your with question question. proceed Please Friedman from next Susquehanna. with

Jamie Friedman

Hi.

echo greetings, me Let the Bruce.

Bruce Lowthers

Yes, you. thank

Jamie Friedman

think of So, I in but disclose growth going segment, remarks, your the did Gaming the were you North quick American prepared there. in you kind

that say, you that, be I if If you apologize, could you or would did have if but great.

Izzy Dawood

based on expecting what XXXX. in year-over-year XX% happy volume North outperformed are we XX% segment. volume iGaming We for all Yes. of had revenue again, that. with we that Pretty seeing. And Hopefully, the growth growth a America plus

Jamie Friedman

that to In would did monthly the in actives it, you actives question the just last appendix were? I maybe wallet I or missing I disclose am say, see what the be but of terms in monthly don’t the

Izzy Dawood

e-cash In have quarter. wallet active Yes. we that a the shared for there and Jamie, additional every that XX-month appendix, for was

So, yes, I…

Jamie Friedman

Okay.

that million it found $X.X I it. I got is, So,

that’s a constant So, down, currency why is that though? number,

Izzy Dawood

No, it’s right, all The metric. revenue that’s the way a not. is just constant currency the The metric. active users is to the

Jamie Friedman

Got it.

Okay.

period? how is to the that compared previous would So,

Izzy Dawood

about down. It’s believe first I period was X.X.

Bruce Lowthers

million. $X.X Yes. Correct.

Jamie Friedman

like Okay. high are going what measurement to just on. at you was Bruce, And of the I then a wondering run kind company level,

to here? is said are in a your what prepared that remarks on your deliver growth You And about shop. thinking you prior focus priority. But how that you we saw at

Bruce Lowthers

of that Yes. prepared not Look, I a weekend, work on to the great Obviously, think that it’s has change But kind a we quarter. the been presenting. question. metrics this company – will

follow that along can We everybody making to and be the have that our kind back business, the look as points of so proof will growth. come progress and we pivot to are see as transparent we we at very how

would looking able in growing we demonstrate disclosures we I second to are come business, the are lot at to the probably that next how the business. measuring we see about how going are the here So, and some days. you business a are the we quarter expect how more are to XX going to in be

Jamie Friedman

Thank the you in guys. it. Got I will jump again queue. back

Operator

from proceed Suisse. [Operator Instructions] with Our is with Timothy next Please question. Chiodo question Credit your

Timothy Chiodo

acquiring. wanted about also I to morning. Good U.S. you. Thank talk Great.

So, had volumes, to want year much? I in if just And we was I that X% to of changed rate strong for the changed for about That last what specifically, for XX%. really since that full up see And at heading to X% really does segment what volumes again an that, beat imply XXXX exit on has range. in that being the specifically. you number talked acquiring? volumes a into previously guided? in this the big Related the they U.S. terms know about volume were

Izzy Dawood

Sure, Tim, a there. questions of couple

year, was solid So, high-single growth. in the are of year-over-year be for compare easier we thinking growth. are The for looking saw they we mid a some comp to QX at still it little no, full really – digits volume will terms

one. that’s So,

the talk, think terms the [indiscernible] exit of the I we side aspect early. recessionary team other The on that excited are are right rate and of Inflation, still volume XXXX, in about. it’s momentum the pretty now, seeing

We are count. growing our stick

per growing our are and merchant revenue our servicing offering. our We through

pretty again, get XXXX we about to QX, now, good talk look the of year. we rest closer right So, QX. about for it the then will And as we

Timothy Chiodo

earlier growth you that was trends were the in XX% acquiring. trends mean terms were there comment you the a consistent around and of also Okay. terms of that volume question consistent U.S. on Great. made mentioned you April, then roughly in the Did – or… And

Izzy Dawood

high-single to QX. XX for digits are internal in expecting for low-double year-on-year growth Relative we probably for the – digit, volume maybe acquiring expectations,

Timothy Chiodo

Right.

Okay. Netherlands, clarified there the mentioned iGaming. is then changes Great. that am to sort just update And that. – glad some around or around of quo? the on calls regulatory you Alright. around is last I one any had Is mention we there, status prior of

Izzy Dawood

the many to and that’s I mentioned planning to our approved – the question. through Yes. we have operators accept that. run think license we operators And that process start QX expecting question get reversed payments actually to another through going the these where application from for could contributing Tim, go operators was agency step earlier next element with back rate. The I that’s licensing with are decree great an for. is should we are are Yes, providers. the what e-money of

hopefully should accept e-money as starting to the to So, approved. providers, going eCash And the license QX QX the again able operators the see the that licensing one be to in like late operators are get being us. we for to big

Timothy Chiodo

appreciate those. thank Izzy, for taking I Great. all it. Okay. you

Operator

Capital. Andrew Our next question with with question. from is your Please proceed Hummel WestPark

Andrew Hummel

my Thanks guys. Hey taking for question.

embedded you ramp wanted volume double the expecting how finance transactions monetizing including opportunities are that particularly to are you in and But the wanted into And guys on to to back those have. back the just half? the base. I about of Just you talk and see you thinking when how guys not through the year

Izzy Dawood

Sure.

here. flavor of give you to couple a of Just things a

So, billion with we financial effectively working we are. our better how lot embedded relationship. a our partners volume are had QX. in in But in $X finance That’s

compensated we PXP We get the on money and in-wallet money in out, the transactions – or are getting that occur. not

every internal, one for there is we process news external great transaction from six to is internally. the about transactions Now,

the ecosystem embedded of right. our finance So, partners is very strong,

get for which from are We drives their activity enabling which consumers, more better them revenue. engagement their

So, the the how fair a included driven. kind as of are a is it’s that’s because revenue not reflection reason the not volumes of result,

rapid started the bank transfers, have we transfer into wallet. Now, with

as card As other goes the our have to all our include set. we we solution our are the again, risk parameters But the wallet country-by-country, slowly options which our processing. on, embedded wallet, year into that make plans be that’s to eCash are well as finance payment and sure would KYC,

noticed also well. an accepted in taking asset them have provider asset regulated compliance seriously as are France, a being very speeds You recently as at provider least Binance they

you So, all you, go grow to are going the as partners enough that things color? our pointing we give are quarters along. embedded continue to finance to with Does

Andrew Hummel

I helpful. Yes, that’s appreciate pretty it.

Operator

now of remarks. for turn end the the I reached question-and-answer closing the have And We over session. Bruce call to will

Bruce Lowthers

my visit to to It in great the morning. And many also Look, you, here this everybody at to meet people fantastic team and excited joining warm you. a so Thank such about I opportunity us last want I the welcome. in very thank week. Yes. Paysafe. get everyone, was for thank Europe for remain

strength really able we we a earlier, and be get have amount on mentioned to I build will As laser-focused of growth. that tremendous on

think off foundational build items have great we of. I to some

drive product experience. innovation and will We client

We will culture. sales after a really get creating strong

opportunities moving markets TAM have a strong lot expansion. and with of also We adjacent geographic into around expansion

and one work track. let’s So, listening, get everybody growth our as recommit engine appreciate today are joining if this on team to to us Thank I you you. back values and team, courageously to our

Operator

conference, today’s you lines participation. your concludes time. Thank This at you disconnect for your may and this