PSFE - Earnings call transcript Q2 2022

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Operator

Greetings and welcome to Paysafe’s Second Quarter 2022 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to Kirsten Nielsen, Head of Investor Relations. Thank you.

You may begin.

Kirsten Nielsen

morning. good and you Thank Welcome to conference XXXX second quarter earnings call. Paysafe’s Chief today and are me Executive Bruce Officer. With Financial Lowthers, Officer Chief Izzy Dawood,

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

You should not place undue reliance on these statements.

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

these presentation, additional and measures on are most call in find to the financial about turn will this comparable release the today’s With Relations press of can the of reconciliations which information directly appendix our and GAAP website. measures section that, available I Investor the non-GAAP to with in and traveled Thanks, all X morning, for you of meeting major and thank the active employees, of today. Kirsten. joining have an months Bruce Great. us over everyone for first It’s around offices world. me, Good shareholders been Lowthers who customers hundreds Bruce. extremely the to You

to and I financial turn On quarter, my call, state already over initial the Paysafe, results then steps some will today’s share guidance. we start to overview taking the Izzy has improve it on team early are engaged and and the highly I’ll the I to Our company. and been with of review then simplify observations of will an

on let’s Slide X. start that, with So

progress U.S. the million SafetyPay led driven EBITDA and continues despite revenue double-digit revenue and adjusted be across quarter, Acquiring, to Growth PagoEfectivo At and guidance our Payment customers’ we XXXX of QX. as experience were brands and customers. Score greater a by Year changer on for focus range $XXX for team the improving and $XXX our game Recently, innovation. region same growth by as our Our recognizing second the of line our Awards, areas players, key expected which the than headwinds. with recorded we in quarter at Innovation FX our our seeing their SBC in wallet acquisitions especially are U.S. our of iGaming EBITDA won time, and VIP million Americas

dashboard, improvements wallet as addition, are In such we experience to customers our to personalize wallet being their customers, user our rollout which new that in our received allows by continue positively experience.

into expansion traditional card total we are private payments in of merchants alternative Ontario’s greater our approval now onboarding Solid new are where with through than market, XX% rates providing province. XX Paysafe’s the or gateway, a and iGaming live and

growth see than billion to U.S. first the gateway volumes iGaming in have in half continue market X the XXXX. We regulated and of robust processed more in

we noteworthy, X integration We Skrill’s legislation most states are look remain National’s in upcoming With where states upcoming forward recent several Barstool the operator first about with XX Skrill North Tier launches is in excited our which passed. Ohio also being and live and America. Penn Sports to wallet is currently app, in jurisdictions the

our on largest conference and I our very quarter, improvements. year-over-year channel to were second the partners feedback meet These great held During we merchant received partner operational to-date. positive

the of progress good in lot quarter. a So,

we expectations, with dollar, of our the gambling will impacts absorb headwinds could war outlook market. from impacting upfront outlook current want the felt the year, which to align detail. updating European May, walk we When to we stronger anticipated the regulatory and reiterated we our Russian-Ukraine that be in the rest you the through As the comfortable will more Izzy our for in XXXX state I that

to we merchants those factors, we guidance. over next these been already particular, environment the able both actions prudent the set touch believe are pressure us absorb changes growth uncertainty our but have my a XXXX. weaker taken it’s as XX well have I related now half, are to as in for in environment reporting will confident to that have Europe. a further the up minute, consumer added in In will FX months and Due through While gambling Europe. first few the we macroeconomic headwinds we we to revise in the in the on first am days making I U.S.

has visiting ahead. in joined am we since person the for seeing to team been to has discuss all I It’s been the A have made and clients feedback X. the to in will excited which teams I their Moving forward. the been going X Slide continue me company. offices by instrumental opportunities and over thank the feel of our and to is engagement I the want make Paysafe I changes for months our highlight potential world and particular meeting and so far in around first

our of plan still I strides. While and large share and have a initial my rates. we and will the we the growth have opportunity future today, acquiring right in the process a When with developing today, And broadly construct. market on issuing views path we position on has our Paysafe great streams high and I are at priorities, unique revenue forward. both focused are which verticals, in Paysafe look made

assets and target customers. consumer our assets a our of to and have power we cross-selling to many for have serve while However, opportunity monetize and leverage end-to-end better merchant improve to payments lot markets, our we of fully our

verticals couple can we be areas, history, clients a competitive as very in on forward. improving and focus I in With these of believe the move marquee we strong

snapshot Turning to of a X Slide for segmentation. revenue

North markets recreational digital we at as and ourselves with such discretionary of as gaming, today. look you define video our entertainment travel, focused, retail largely asset While but fast spend good which mix small, serve, as describe the America. revenue XX% presence growing can broadly And America overall, we or comprises we iGaming, trading, balanced Europe a have This and about in Latin and we a hospitality. across geographical

we about So, a with by company as for long safe our our power to focus Plainly, as have one assets movement where it’s sector great It’s need helping digital value remain a capabilities, attractive when proposition. customers the think a TAMs and common we who to of DNA focused we the around our and in holistic as we goal. are company, as this act team the money we a win right or as and on delivering I world.

isn’t of massive you who markets for we been like those long-term, is X. think particularly new we to following over This our attractive Turning Slide This reiterating how addressable with but tailwinds worth growing play. have I double-digit serve TAMs a look we Paysafe, at rates. We where that at today. it’s

new So, into it’s not repositioning a entirely verticals. Paysafe matter of

today, to end-to-end and that plenty that these unique grow growth to to job core of markets but backdrop, let’s entertainment. product payments Slide sales our needed executing the to of in we together, many have merchants X. a verticals. drive of do We power network brings consumers two-sided runway Paysafe better a With move products within with must innovation and has

offering, consumers. global which We have scaled serves merchants XX a and XXX,XXX million

to proposition two opportunities today. had access X. I value the sides the in challenge these than on and X bring those On I that together. opportunities network, synergy have Slide my the here as success two-sided on well. unlocking networks past believe exist to for side but on is have only focus of to team our The each not points million we the more value Additionally, improve

recognize add that I This U.S. we have Now as following business well ‘XX. first will our at some iGaming have areas my grew want certain the from of Acquiring as here XX seen regulated growth well. performed the quite I of half additional days the to XX% strong first Across in market. region observations Paysafe. LatAm, Americas,

or accounts look help more to healthy are when XXXX across merchants, drive the and much growth the top do have revenue. XXX we Additionally, those opportunity double-digit generating we to them of with roughly our clients our their end at we top

strategic has regulatory Americas, as fueled as which offset more by challenges also in our Europe, the growth average the our faced increasing, by driven environment monthly the users has well in in Lastly, war. are acquisitions, Russian-Ukraine which users from the decline than

see to conversion positive rates and pricing in markets. trends funnel in improvements optimization, optimization the continue target and underlying We

today. other hand, the On this also drive for frankly, well our a were But are represents improvement significant there opportunity to working stakeholders. not few future areas that, value ultimately and

still operated platform go-to-market the and our sales operational experiences we too product already structure organizational complex us to allow our updates and changes have is First, efficiency to responded cloud and despite innovation. success is Streamlining the recent a team model. for in the and experience has is organization products allow organization. years business to our merchant and all improve progress of fund our our critical our to these The on focus and User and simplify with and in and migration employee, our drive consumer interactions will consolidation, us improving quickly silos. improve will number and made savings,

opportunity have product lost our we enhance we Second, of a to Bluntly, have our lot here. innovation. way

help that to innovation great reality. our and merchants less was users moves to product a mixed days, really balance our now great our has to within world customers developing verticals driving to in to the a innovation. to is the grow. deliver been Paysafe is entertainment wallet our side What’s truly clear network experience in past From industry, change weighted consumer bring return It but heavily products to we opportunity so helping to we the example, the dynamic a of have our entrepreneurial the early the focus a need time merchant and For market, of our to pioneer side, of side. as on a time product

also and existing a account organizations development business rebuilt sales engine business reducing the Finally, teams, These business friction customers, get us. doing rebuild full acquisition our of will operational we opportunities. support new strong focused in with lines on and will the

will talent forward as We both additional to hiring move establishing growth. for functions us drive these of metrics in and we be

X. Slide to Turning

in for been team We all enabling Officer. a both are and welcome and I product businesses and our very make transform teams and customer focus new to Rob experience the will experience growth aligning private to invaluable His recruiting public driving leadership of At of to making have the brings client and I pleased our needs both talent Gatto member driving team sizes. several after commercial on market Paysafe’s our organizational of we deep sales changes Revenue understanding and efficiently with Chief him to am as acumen and as decades better same Rob go structure time, business. direction.

in talent add to next continue will the of months. We couple

something be who next we talk under Aston, Officer is the also centralized has meaningful operations and appointed Roy This have Operating to role. been will further a about We quarter. change Chief

Additionally, efficiency. we project in that will the stage significant creation drive of a are operational

We come are not ready to next to on announce that more but yet, quarter.

and plan metrics also are. on of We additional provide we transformation updates where terms in the to

Yazdian are bring with Chirag Patel, tremendous proposition opportunity together putting business. unique also business Afshin place we for eCash broader role simplified has our look that expanded Importantly, our in led we capabilities merchant division team into We by the leading in acquiring bring global as one potential have growth. base and our Digital Wallets and we an market. wallets and as customer-centric taken to our a existing view the customer merchant at a future we

the to XX. Slide path on Turning forward

in to prior see take are I position verticals. a can great slides, you from being As believe the advantage of we in

have working and our future. innovation, excited on And roots about We areas, couple our of Acting with for results. With to on return now allow to reinvest of efficiency we aligned to discuss many improve returning we a in experience our product one to focus that sales, are just that, will user a as will things I’ll the organization growth Izzy call am and XXXX. growth. turn operationally convinced us I to over well.

Izzy Dawood

Bruce. Thanks,

the Revenue from driven start Acquiring, versus business towards growth of U.S. of the Slide primarily with came end range by snapshot end was of at performance guidance and currency. Let’s EBITDA lower while for mix in high range, our XX a reflecting strong our guidance. the

growth for QX our strength was Volume of where saw an of Slide summary continued strong an billion, America, increase reflects and a Volume we XX year-over-year. North $XX.X of increase X% financial we momentum in regulated to sequentially softer Moving results. expected, SMB across iGaming in as crypto market. growth in trading. Europe, as markets well iGaming continued market weakness well as U.S. from the In the saw and continued as X% activity as

it revenue year-over-year. as are as volume the not have our not finance rate. was exchange a As reminder, drivers. second of million, not transactions, which $XXX does the the portion quarter include or embedded down overall peer-to-peer a X% we solution revenue to Therefore, excluded take volumes significant for Total skew

exchange decline impact Commerce. $XX changes rates, Excluding and in foreign from Europe, million. increased QX by X% conflict Acquiring from as changes U.S. in roughly the the than regulatory the Digital the to million Russia-Ukraine revenue XXXX, offset revenue $XX currency to in more growth impacted Compared

excluding would for of pro growing been businesses business more So on primarily The have was margin forma headwinds, mix. these basis. reflects quarter the well revenue acquired Adjusted year-to-date are and EBITDA million, in resulting performing a X%. roughly adjusted lower growth EBITDA than XX% $XXX margin an XX%. The recently

expect be as higher range. the currently XX% free is as Lastly, $XXX of our basis lower is lower free XX-month XX Slide was which On and of the and in CapEx flow guarantees LatAm year for conversion, higher capital the or reflecting geography. XX%, utilization million walk spend bank QX cash a to revenue due We on well paid. working outflows conversion taxes around full cash targeted year-over-year a to by flow end and growth

on included dollar. an the of rest earlier, our reflects regions performance million impact QX, stronger touched markets, results in softness Bruce grow. to $XX European the In from our our while ongoing continue a As

current price as $XXX.X our Turning on of our the capitalization, macroeconomic to Slide had loss and a we as net to our market well XX, results. driven impairment million. in GAAP net due by decline QX, of conditions. market I’ll was an briefly loss goodwill QX, GAAP touch to sustained stock Similar and In

As this in which the a charge, with EPS covenants. flow, aligns which liquidity well on Beginning a from peers or introducing impact our cash our our are this reminder, non-cash no community. net adjusted we as is feedback debt reporting, reporting and investment has quarter, adjusted as income

income of net these for The prior million period. EBITDA on and attributable in increase of was acceleration net higher expense information measures as QX factors in adjusted amortization change debt excluding, largely additional income million adjusted income find was $XX.X required intangibles an adjusted expense. of the the amortization can financing and to impacting Adjusted compared deferred in in to the the same $XX.X appendix You well as expense non-GAAP presentation. net year and interest depreciation

the of were a decrease compared Let’s Slide to Commerce. in on results, year, Revenue billion, the a XX report X% seen $XXX.X the Europe, a operators reflecting year-over-year. move FX region for declines in in Digital $XXX.X discussion have and iGaming from which we the was XX% Volumes also activity prior to soft half. segment gambling through results starting million, decline to who first with of continue the

Russia-Ukraine In activity. softer impact the addition, the war trading and financial of

Ukraine Germany, digits Excluding increased mid-single in Netherlands, these from Russia, impacts currency. would revenue constant have

petrol. second business EBITDA the XX% and a the Lastly, of growth was continued tougher Adjusted the of for increase from increased will constant currency year-on-year. year. to SMB the on in Acquiring was down we’ve Revenue XX% $XX.X from in benefited move results as retail recent $XX.X million, Europe. the Commerce from we basis, this year, restaurants, market quarter business efficiency. prior million an the year-over-year reflect segment. in reminder, trends, faced lockdowns strength marketing relative Consistent segment mix billion, Digital U.S. Slide a XX% increase acquisitions. reflecting $XXX.X million. a SG&A seen Overall, comparison eCash Acquiring On quarter as market, to vertical than XX, in prior continued and was and direct and second $XX segment X% the such an lower which COVID revenue, QX in verticals to EBITDA in U.S. growth with strong volume for to recovery of Adjusted operational the U.S. compared

was to turn Let’s liquidity. look balance X.Xx. sheet $XXX ratio our at debt quarter at $X.X end. Slide and to and adjusted billion, to debt million our net equivalents were LTM was and XX Cash EBITDA cash Net

on debt term of to moving our and In trading take EBITDA, of and will X.Xx debt $XX our towards reduction roughly and QX, Our in voluntary debt repayments the million to primary act opportunistically totaling second pay down current notes advantage to cash million, pricing debt $XXX use and monitor of start target of half completed we continue both our we is targeting buybacks excess annually. adjusted and levels.

declined Europe. move the our the taken When have potential Let’s we felt regulatory Russia-Ukraine May, euro, impacts the for a those revised XXXX. guidance outlook $XX we from from believe in the direct guidance to first we risk, from business a our XXXX, in the providing approach war to which could in our we’ve XX. Russia the When May X.XX reiterated U.S. absorb original Slide then particularly headwinds factoring related assumption against Commerce year the market assumption a in confident as those the well and dollar X.XX for the has that we as revenue in conservative dollar stronger conflict Digital stronger absorbed to we of Between for half, original and year-over-year. of full million impacts

an here As and well the headwinds negative as we macro on a its from expected reduction impact from rate have associated we’re of uncertainty pressure FX impact seeing to we internationally. to in the signals environment softer the and in merchants, spend Particularly, regulatory like related gambling U.S. and today, markets Netherlands. macro addition as consumer reflecting customers’ European environment and spending Germany sit additional in

revenue. leading original Looking a year, FX X.XX full in for and versus X.XX roughly decline May our versus rate also is X% a which in our expectation from ahead, a of expectation parity for expect to $XX euro the second half, we the exchange decline million XX% or

decline moderation million million million EBITDA of $XX we in range $XX to a U.S. by adverse addition to year. revenue and in Digital of a on inflation in uncertainty, growth behavior $XXX rate to including and second its $XXX adjusted million, of the half economic expect driven Commerce, in offset largely FX the from reflecting by impact the persistent of Acquiring, QX, For range movements the consumer

to turning Slide Now XX.

year, we flat or roughly between full reported year-over-year. basis, billion billion expect $X.XX the on revenue For $X.XX and a

for We basis. is not expect U.S. Commerce down single roughly XX% for flat constant Acquiring be revenue year. grow a high or full to currency Digital adjusted now digits, expected to roughly on the FX

summarize, by For our primarily the expect $XXX be between lower total reflecting margins and FX our expect mix. in the are business adjusted To expected and is improvements $XXX than driven which offset million, seasonal prior expectations uncertainty, we growth to QX. with company, the reflecting macroeconomic continue EBITDA partly million year-over-year, synergies lower in our guidance, to second while and activity we to half, acquisition from

Now the closing to Bruce back I’ll call remarks. turn for

Bruce Lowthers

I’m you, by us facing while next few the the continue uncertain seeing company. Thank XXXX. feel changes I’m economic in up in confident that an Great. the and growth I to the the to in over for will that reiterating months address, Izzy. make we that potential conclude business we’re I’ll changes excited by environment have set

We’re financial you our at and on open progress, Day Investor With expect strategic updated QX and share for our update XXXX. call the keeping Operator? in we to committed to a questions. that, let’s

Operator

Bank come Jason [Operator your questions you. Kupferberg first with of America. from proceed Please Instructions] of with Our Thank line the questions.

Jason Kupferberg

the Thanks guys. question. morning, taking for Good

can verticals the you But highlighted European guide little gaming? in softening just that Just year. trends bit? revenue a Thanks. does emerging new the you if on assume the so outside revenue of there. if and European detail gaming new And of some the Obviously, softness guide

Izzy Dawood

Yes, for No, May seeing start weakness it’s Jason, commerce revenue. late European the predominantly and into the because in we digital majority our Thanks of the that’s gaming it’s June. question. Izzy.

slowdown cost fuel, food, because of it’s spending. assuming just We’re of causing higher discretionary cost just higher of

iGaming as see So it’s the in activity what segment we a predominantly whole. lower

Jason Kupferberg

expense the of at. just may stack? then I on to expectations those would interest year where how leverage end for that the you to curious the expect floating some changing Okay. just rate be your And tell you your was year, in us have And given

quarter. think I here ticked hair the it up second a in

as to get sense of end you will the wanted just the So you think the longer-term where year target? you a by Thank pursue you. of be

Izzy Dawood

ends up rate it change a are in think I X.XXXXX [ph] Page basically range. XXX% We expect because USD. against you don’t of against hedged think the the I a XX, change European interest in we Jason, and Yes, at much look XX% expense if

So a an effectively from interest in there good position overall pretty expense.

Again, have meaningful a base little it but not the a will Now, increase. rate does change. impact,

Jason Kupferberg

the you Thank terrific. Okay, for comments.

Operator

you. Thank

line Our of questions. next Peller Please with questions from the with Research. proceed Darrin come your Wolfe

Darrin Peller

after Hey, a having guys. Thanks. there Bruce, few now months. I’d love to hear perspectives been your

in really versus of not look too months the are that If of takeaways I and run opportunity, medium is key look? what much, the what coming Investor you’re a you Day couple it to now, front the in after maybe business more of long-term you operating out businesses in this know at terms terms but thought was your what coming

Bruce Lowthers

Hey, I in, a into and I had say would Darrin. pretty good stepping was was doing. what beat coming Look, I on company the what

they So XX really talking where process. were understanding going kind of get was the employees, days, over trying of to the in to around first customers, an it

I quite the at business. So simply look

a platform. platform our We we’ve then got issuing out business And have we an of. acquiring where business wallet drive merchant

spaces, very as I at that So look in those I good verticals. think we’re like I construct

sales, got with that a in around address. we the innovation we of issues product We’ve I think, success had lot which and can some past.

are right And on think we things get things that so I back the can track. these

to feel did and we off passionate very brand I had of are we a about beat our a good good. of this have so build pretty like excited our I company. great do. And employees about what got XX-days team, what we feel very

are. feel about where we I So, very good

Darrin Peller

Thanks.

is me follow-up, you a two which ask little a bit parts. Let of

– are it quite they a be than to really you they again. and still I a was are performing we looked more and story, that when One at. digital think business, are And worth be potentially grow seeing sequentially at annual first that of a them – down be when more would are thought quite worth at seems trading valuation-wise the is bit looking actives bit are not wallet the business that just we

in would curious there a So, would business cause thought think I inflection an the business the your really, view. what in opportunity And in picture more looking about the when of those separated that. out merchant given we parts, that at anything businesses. acquiring different really the hear some parts some there, in to U.S. bigger valuation worth should is may then can and be the maybe some be be be When done of be the potential could if about

Bruce Lowthers

Yes.

So, let where impacts and had Again, around take the were. me just as I good was think understanding first pretty we a wallet. the question into I was wallet coming what

saw some the we So, Russian-Ukraine on the the FX in having notably European our side. also Germany, stream having for regulatory on And had a Netherlands there. issues, business impact we headwinds stream. which some created most impact obviously the is revenue war and an significant revenue on

As that – focusing the my prepared experience we became in our – very I would are is the wallet. I and that in our product. assessment much on balanced said we the consumers what remarks, we weren’t didn’t We with using merchant-centric

with bring we our if a around run balance think innovation product wallet pretty little I more part we can So, a good can that, of to business. the get our

of The turn to our organization think around in where very is I what the Board your and and I we are to the today, ability valuation, think parts we grow. an some as it of have this get supportive around second part question the of

we on that our and the consumers We see the side of verticals growing we on the between the focusing side. I so merchant and a business. on consumers going think have focus do is wallet And on we have commonality that’s what lot are the to

the two-sided is a opportunity So, for those of between lot I us think really there synergy there markets. exploit to

Darrin Peller

best. you. the Thank All Alright.

Operator

you. Thank

Autonomous with from the Research. questions. Levin Our next line your of proceed questions with come Please Josh

Josh Levin

morning. enhance a think take good engine. that will questions. sales the two How I we strong Hi, you to you need long to talked about do innovation have do? and Bruce, product built

Bruce Lowthers

happen ‘XX. going return a in thank quarter, Josh, Look, be rate back growth solid will you. we Yes. it’s to in to think but I a not in

come the looking look back changes, growth we have So, and I ‘XX get a half not year, think – a year we be at – of a the to company. to far for return will out the this series but as rate to too will but growth with be ourselves, of will we have solid we of of ahead to

a problem. So, I don’t think long-term it’s

Josh Levin

Okay.

year, account-to-account macro? second Trustly your talked of with them. you from being weakness weakness one in to of was or players. it due competitive increase some any last in I about increasing in regarding entirely there Is or I competition guess, question was The landscape, it Europe macro. is really changes the know in gambling, European the competition

Izzy Dawood

of that out in it’s Izzy. is part and economic capacity of gambling impacts year-over-year. also operators for Josh, Hey QX the fact of what [indiscernible] software a activity of I that mean but driven, Yes, weakness They are take I of them. lower gambling see on Europe, will we as consumers. their question. showing magnitude we macro part XX%-plus a that come regulatory also is it couple did decline, but mater in not read-up have especially point the in to declines it

to or what macro-driven we have talk as event a best heard can the we read, from we what opposed pure more to, it’s see anything environment. competitive from and So, we have a

Josh Levin

follow-up mini that, one on if might. I Just

You of mentioned year, regulations. of effect This are the regulations they also into part on? going last sort is effect what’s just that residual the went of

Izzy Dawood

things. couple of There are a Yes.

operators around in overlapping relinquishing one clearly, their still uncertainty of of Netherlands And terms fair in at licenses was QX, the is But a year, items. looking the we the have second or them. So, amount there rest the of getting Germany and recent. Germany more

markets. UK out white on and about you affordability have as paper where are comes both know, the Germany And We well. UK about talked it relatively as sizable

Josh Levin

Thank you.

Bruce Lowthers

Thank Josh. you,

Operator

Thank you.

line proceed next of Chiodo with Timothy Suisse. with Our from your Credit questions. questions the come Please

Bruce Lowthers

Good morning.

Timothy Chiodo

the taking for question. good morning. Thanks Great. Hi,

I Can for expectation. the for the little so there believe that what year acquiring full remarks, in more U.S. mentioned the mid high-single digits you of are the a prepared that expectations were to On for with was prior in but guidance of I quarter. the U.S. you acquiring towards X% is is, believe update year XXXX the up business, maybe bit the aim of high-single volumes an volumes? full us on a the moderating digits,

Izzy Dawood

thanks Yes. Yes, probably Growth to it’s year-on-year. the going question. in the be for is Tim, digits moderating high-single still.

We are around… cautious being

Timothy Chiodo

Okay.

that go imply the the in ahead, or still it year So, in the ahead. would – high-single, sorry, please, exiting go so call

Izzy Dawood

we full revenue a around be as From XX% Okay. growth should a perspective, well. also year-on-year

Timothy Chiodo

rate Okay. that clarify digits that, so. a of appreciate or I just about volume? Izzy, would QX that. right approaching mid-single for sound Does it, call want just lot a Thanks I that exit to imply maybe the

Izzy Dawood

probably digits, the higher that right. digits, in mid-single the yes, but end of Yes, sounds mid-single

Timothy Chiodo

then Okay. a of Great. Is mix the within you And is a and Thanks there can past of lot. business around follow-up U.S. that you on gaining are Clover. final your the SMB make mentioned distributor acquiring how large have volumes? any in business, Clover comment the if you share U.S. doing a that’s

Bruce Lowthers

Yes.

As listened else. the business, call, far to have as Frank’s I Clover live everybody

changes think to. reselling we don’t But have I real see they versus had it’s our you had what QX I of perspective from what any just in pretty them like do it, in prior well.

like for demand not a it’s It is there state steady in us. increased seems or an demand. decrease So,

Timothy Chiodo

taking questions. for Okay. of Excellent. you Thank both those

Operator

your questions from come with next Our proceed with questions. Jamie line Susquehanna. Friedman the Please of Instructions] [Operator

Jamie Friedman

Hi. Thank you.

Bruce Lowthers

morning. Good

Jamie Friedman

Good morning.

Bruce, segment. your commented prepared in iGaming general the in the on So, remarks, you progress

you to give that just think really I wondering you some that quarter? quarter. on points could Did a happy was bit. last if segment growth proof the had in this it rate XX% there. I You elaborate good was

Bruce Lowthers

it We prepared probably in – has I don’t number… gave the the remarks, believe we Izzy

Izzy Dawood

to probably segment. growth it’s regulated is we – XX%. we we iGaming in just volume year-on-year, saw a probably in – go Yes, If close XX% iGaming QX

pretty So, growth volume strong year-on-year.

Jamie Friedman

Got but quarter. last think as the XX And was you I that it. same then the states mentioned Okay. Bruce,

the realize or So, you it than was your – to segment. the more there on announced track. disciplined I in are are terms do the have we is you pretty you is in U.S.? lot beginning, to there in that a to of footprint – But the closer middle what

Bruce Lowthers

here are think game beginning the in the iGaming. I U.S. still in we of on the

U.S. week. last positive market. for is legislation you for we what think just some a that job. the a lead say, read move great Massachusetts expect us It’s and priority with doing to the a Probably leads is I So, the who I in probably iGaming us would in had

Jamie Friedman

mess These these to you assumption on appreciate way, the right that about in I XX. I Page but I high PowerPoint. ask Did flat that basis. on constant for Izzy, on are guys up, is But I said I now wanted Yes. you the digital apologize are it as-reported down if doing, to – that you the a the the in currency are singles bridges heard that assumption want thought hear helpful. I by I wrong. you year basis, digital an don’t

Izzy Dawood

right. that digital impact Jamie, on. meaningful that all That’s the currency runs It’s business. through is pretty you spot basically, got the commerce

Jamie Friedman

Got it.

Okay. you. the Thank queue. I in will jump back

Bruce Lowthers

Thank you.

Operator

you. Thank

from with the questions Please next RBC Dan line question. come Our Perlin your of proceed with Capital Markets.

Dan Perlin

little very being that Thanks. product the merchant-centric in ask, How wanted just little of broader I are context question you? to it’s a innovation you the guess towards I Good very macro-centric headwinds morning. and in bit a lot the more need a total lot sounds – But a of are a consumer makes the just Europe. it sense. of like That pivot centric. to

consumers. am the gaming services historically kind provided you of I product the can so have you think users, away Are of that the – users? I about that just innovation call towards non-cyclical typically high-frequency guess And you leaning create more from pivoting some the them I towards tilted help. some high-frequency again, trying to wondering, larger as Some of

about is type something think issues? of dovetails that that also these user attract you some I innovation to to am of into you incremental start and there macro And the the could us help might so wondering, counterbalance that engineering

Bruce Lowthers

question. great Dan, Yes.

absolutely are to we those on So, still focus have a VIP users. going no,

us, using which there usage experiences app, to will VIP still But to important to to focus recognize I want a really to our what value think out user want going value velocity of what the broaden choices broaden to is opportunity a have on We are in to the consumers. out to very to a the very important But be why and continue that’s is we customer the we there us. for we bring create additional to proposition app. are lot great to today very drive distinct is sure – there that make of we people that. lot are merchants. velocity is the And think

Dan Perlin

accounts. a to around Yes, of absolutely. ask I wanted top kind just also question the

those here I think new may you are made the same double which is are should bit. about other that into merchants – pruned be digits, to level Like be how – Thank needs said the healthy obviously a or growing they should a we the top are of the to And your Are growth? not merchants thinking set merchants XXX of be me for you. they types fit merchants? that other actually balance there extent strategy? think be thinking, that we the producing

Bruce Lowthers

Yes.

Let me it’s But as I and will I Izzy let one, very wouldn’t start well. add off, say in unusual.

out our of that’s to very percentage probably So, that top you accounts other drive, look and not compared when there. at revenue unusual company the they any

to to clients going active, into products have cross-sell So, them. we the have opportunity engaged, more are highly that highly are

that lot And me. so makes sense to a of

end On other have the merchants. small got the we spectrum, of XXX,XXX

those of growth. near are driving growing going really of not are be anywhere organizations larger the Some, that to some

And lower is going growth default so that rate a be to growth by rate.

good say it a in are a that’s what focus And to dial are really to is on overarching balance. to really that would what It my What we think really didn’t them bring I keen help we about just kind grow. a is So, accounts. point going top are happened. need we focus of have what our I And really to do accounts going on. in those now we

Dan Perlin

so Thank great. you much. That’s

Operator

Thank you.

over for the back like to Bruce the would comments. end the Lowthers reached of turn have session. question-and-answer We closing any to call now I

Bruce Lowthers

this I much. you want and everything Thank the it. you Greatly very joining appreciate thank for pulling here the all call Look, morning. us for team today together for thank to my in here of first of momentum XX the team all first and to started efforts at the we building days Paysafe have on their in XX forward the look for days.

much. So, thank you very

Operator

This you. your We conclude appreciate teleconference. does Thank participation. today’s

your this lines time. You your day. disconnect rest may the at Enjoy of

Paysafe Limited (PSFE) 10 Aug 222022 Q2 Earnings call transcript