PSFE - Earnings call 3 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello, and welcome to the Paysafe Q3 2023 Earnings Conference Call webcast. [Operator Instructions] As a reminder, this conference is being recorded.

It's now my pleasure to turn the call over to Kirsten Nielsen, Head of Investor Relations. Please go ahead, Kirsten.

Kirsten Nielsen

to XXXX. conference welcome third for and of quarter you, Paysafe's call earnings the Thank

today Bruce me Chief Joining are Financial Alex Officer; Officer. Gersh, and Lowthers, Chief Executive

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

You statements. should not place undue reliance on these

Forward-looking only no of obligation date this statements undertake them. this update during call as of to we speak call, and the

also financial Today's contains measures. non-GAAP presentation

most and GAAP press the directly in today's You available the which of in measures our comparable website. measures can find additional the about financial release information of Relations section on these are this appendix Investor presentation, to and reconciliations

over that, call With turn I'll the to Bruce.

Bruce Lowthers

you us Kirsten, all Thanks, for thank today. joining and

Let's demonstrating progress marks jump growth, turnaround strategic and year-over-year our our quarter initiatives. of right fifth on revenue consecutive in. This

shows of quarter last flow, growth XX-month upon cash our first including volume, key performance revenue, EPS, adjusted free third Our building strong a the the metrics, year. EBITDA, half adjusted across

quarter. wallets, partially increased by X% by segment, on X% constant double-digit eCash. in recorded in of growth classic from by revenue the Solutions trends second growth segment, which $XXX offset reported discussed a currency, e-commerce. In X% was and or quarter Merchant with basis performance Wallets digital XX% Third softer a growth the Digital driven revenue in led million year-over-year We currency we on the in basis, increased in constant X% consistent double-digit what with

increased Third improvement. of quarter reflecting adjusted basis XXX of constant points currency, margin million XX% year-over-year XX% $XXX and EBITDA

'XX. Our our X.Xx at and target ahead for the the ratio from of well was the original last at down leverage of X.Xx of quarter, end end year net

financial full results pleased XXXX. and to progress strong our to reaffirm we're our for guidance year on Based date,

has Board million a reduce to giving common support repurchase company We in the also to on $XX to stock. the We repurchase while focused program, growth authorized business to share continue of our our leverage. today announced opportunity remain highly investing that up

would congratulate team during the quarter. receiving I several for also to like our awards third

First, Gambling always Provider Paysafe dedication One their on our in also at We the Payments to from we're at of to payment the Digital Digital year, Best as Innovation Category. highly Payments Top for And straight exceptional third delivering also Group. great the recognized American Awards were gambling.com Best Led experiences. vertical, acclaimed recognized of teams for Digital recognize see Initiatives. Inclusion Global Companies Bankers we Wallet prestigious Financial Year the were Payment Service Awards. iGaming the the In CNBC's It's list the Fintech for Payments

in Slide focus we that with enterprise reiterate the to our each we make annual with quarter, XX continue I'll to define across X. deals, In transformation. contract more than areas. Turning Starting third closed value. which agreements sales as $XXX,XXX we progress strategic

discussed wins sell to our our were as and both we've vertically strategic As new Paysafe clients new a go-to-market improved ability which previously, with payments existing our has structure, supported focused partner. by

We have also been ecosystem. customer of committed both to our improving experience for the sides

drive of side, merchant greater faster efficiency, one On areas to our focus onboarding. the including has deal been

QX, delivering in we improvement time merchants look when our onboarded what we over launch the which days quarter. September, contract were at highlight, in one to was previous XX% reflects earlier than just XX As frame average

in is this targeted of driving optimization process and on consolidation focus customer the improvement, system team Continued creation area. the success

consumer our optimization the funnel side, in and gateway continue improvements progress to ongoing the we experience. On see to

number than as selection. of more up integrations, method analytics is conversion the payment of checkout simplified better login reflecting optimization merchant better registration a our enhancements and and percentage such flows, year-over-year, example, For X merchant points

in our and are clients In to merchant-acquiring to digital launch collect bring that Business we've improvements wallet platform innovation, the conducting and together to our for On we product consumers. product Wallet, wallet addition the the QX, the a for U.S. usability, talked settlement. merchants value leveraging initial uses of drive Paysafe about to wallet SMB digital

the time, services and SMB of our to movement a Over foundational along vision expanded with capabilities the product money longer-term clients. with range addressing will be underserved capabilities, of combine needs

Ultimately, flywheel here U.S. a merchants in the our adds while a for we're focused also wallet the driving effect. value creating on in way that

unique solutions. unbranded our Lastly, and opportunity a we enhance broaden for to recognize wallet platform

Our success of are facilitate and the enrich growth capabilities to foremost our our and of the platform objectives partners. merchant wallet

is create brand experiences businesses focus their customer features platform. on empowering aligned Our the leveraging advanced of to by with our

our We which requirements, in are well regulatory appreciate versed and and in the clients licensing Paysafe's clients offering. landscape prospective

number near-term key in of We the these advancing a with are deals pipeline. enthusiastic about initiatives

I'll X. some been we additional direct retention balanced sellers strength resources. clients. management we've now Slide initiative. by done same to target XXX% the saw which in last to through to and cross-selling activity we the sales revenue QX new year, seeing net our has third progress on with client deal work our year-to-date, Moving across the count with realign have geographically supported versus continued that merchants, doubled verticals base, color We our the our and head the our quarter, including time account we're in sales expanding across saw provide In --

the implemented through payouts. and offering brand Gaming, another sports an bettors an As we're Betting new of to all-inclusive here single for a payment options partnership range a very announce Fanatics unprecedented a major is solution deposits highlight, with pleased & providing in Paysafe streamlined integration, making U.S. Fanatics with receiving

our small iGaming, Moving America market a high to talked is We've unique advantage growth the for about in Slide which X. but North Paysafe.

XX operators, states addition in our in over card strong strong very with currently in in gateway, are live position We acquiring and to XX Canada.

gaming at a to form gambler -- integration, and payment access any through money an merchant money again, So of out. for can in one a merchant online

at and including and is high very customers. expertise, conversion addition we In entries, retain attract industry how we deep that, rates faster also to also state relationships which have

with sales we're other Now position replicate even verticals. success in to organization, across our key better this new

classic Wallets. update currency In Slide we on Classic X, growth on consistent our cases for resulting which expanding comes of to most of saw we update constant third reducing our by use revenue and consecutive Moving also revenue Wallets, of XX% in quarters growth Digital to checkout an the while we wallet for provided calls. quarter, the in unique the our focus improve experience is, recent of again, X earnings growth from customer Much Digital work Paysafe's continued platform. this wallets, from with the friction,

stronger This transactions seeing our ongoing both with the stabilization base has around approximately user prior X% growth year. is this in in user growth resulted per active average and X-month double-digit Wallets report in Digital from of actives. can engagement active revenue we And XXX,XXX user. in per quarter,

to Slide X. Moving

a compared seen results, the X% last you've period to in adjusted margin. As flat well year-to-date in EBITDA as improvement our year, same we basis to point XXX as improved revenue for performance have growth

puts the and we've broken out takes our results. Here year-to-date across

areas Wallet as high-value the Classic We as as of across business, Digital high priority e-commerce transformation. our revenue well part our growth have business focus seen the double-digit and

continues demand ISO our by channel SMB Additionally, partners. offering differentiated for perform for to well, strong supported our

softer U.S. the we seen focused that around other well the While We've set and out in performance from areas. in our made the progress as opportunity have solutions, acquiring, channels continue I'll on as pursue Slide to and execute we we which discuss X. eCash next year -- areas growth in to direct still turn playbook, to this

upmarket side one, expanding we on our three, enhancing our which the of is more XXXX, headcount, the the our in business, consistent including our direct strategy; adding direct a on additional focus channel. acquisition by, customer ISO two, product addressing we on with As focus profile sales and softness are offering; moving

wallets. into mid-single-digit growers the more midterm. should to to be continuing by features on and and businesses eCash a to In for customer these wallet graduation platform integrating acquisition, user focus unifying believe customer upgrade of network will our our experience marketing relationship the we eCash, over roughly We enhancements support engagement to in branded our to engaging while the our and both technologies distribution addition

growth. we digital wallet our expect stronger e-comm While and relatively solutions continue to see to

I'll ask Alex financial to that, review results. With the

Alexander Gersh

Thank you, Bruce.

FX, as of move $XXX.X largely rate was lower the roughly benefit X% Classic as interest lowered in XX was increase $X.X revenue million Slide with constant for our the Digital mainly well growth of revenue Merchant quarter, $XX.X revenue our increased results. quarter, or X.X%. year-over-year, currency Let's and volume consumer exception euro This third was the Volume trended to line the the expectations This Growth a financial the also the of billion on roughly on Solutions the e-commerce summary by total quarter. basis. the led and our double-digit as growth million X% a including within X% by revenue of or of segment weakening deposits. with of Wallets, during for an in in

XX% of XXX for credit or Adjusted $XXX.X leverage. an and XX% third an was lower EBITDA losses increase increase currency. driven of constant basis continued primarily the EBITDA million, year-over-year quarter operating margin Adjusted was XX.X%, by points,

third the of revenue prior-year quarter, SG&A XX.X% Our the total quarter. in was in XX.X% of down revenue from

for flow third quarter, We XX% generated free million cash of reflecting EBITDA. the adjusted $XXX in conversion

XX%. LTM the to XX% the the to we cash basis, On XX%. conversion free range would And of for full be million, in was year, $XXX reflecting expect of flow

expense year-over-year Adjusted $X.XX margin XX% net increase XX% as interest and to taxes. and adjusted per expense, depreciation share and third quarter more million, and increased growth our than in offset amortization income increased $XX.X improvements for the EPS to

Let's move starting results, Merchant to segment's to discuss with Solutions. the Slide XX

in was strong by million, Merchant the X%. travel billion, iGaming, year-over-year, $XX.X of for fintech Solutions and Performance led third also revenue was increase including which seeing from X% continued verticals momentum quarter see increase quarter in to other Third while services. an and e-commerce, volume of an American was growth North $XXX.X

and market, in and In as saw we and services. personal growth such eating the grocery SMB places, petrol, continued drinking verticals

Adjusted growth again SMB XX% the a losses, million, increase third-party lower margin to of headwind offset as particularly which an than from in was points, improvements, our EBITDA in including segment Solutions more partner credit channel. mix Merchant $XX.X increased the in strong channel basis reflecting operational XXX

Wallets on Digital to Slide segment XX. Turning

year-over-year. double-digit offset Wallets revenue from growth wallet. Third year-over-year constant basis, a for X% was an quarter solutions million, as increase quarter XX% was Wallets decline modest and was Digital billion, third than more the a digital XX% $XXX.X by increase classic of in currency Digital volume eCash on $X.X our for increase a

well as as also the launched revenue deposits. features segment Growth supported in Wallet on product from consumer QX, interest new growth, Digital the X.X% contributing was by to

Adjusted basis or reflecting the million, Wallet an increase up Digital segment XX% points. EBITDA of a was currency XX.X% and $XX.X in constant XXX year-over-year X% margin,

the Xx million for to of of this debt net through Year-to-date reduced leverage, to will ahead quarter, that end was leverage at totaling reflecting XX of we during as to and September, debt our remain Slide I'll $X.X the year. and end debt the on focused the our continue the to for further approximately discount target year. compared Turning and to now leverage leverage. ratio buy $XXX was $X.X believe take advantage At repaid quarter. our to total debt summary net debt the opportunity par. reiterate debt well our of of be that million reducing we X.Xx year-end, quarter-end, repayments repurchases of last highly back was we and by at billion X.Xx, At billion, the third $XX approximately we have market

progress As million cash strategy. in today Board and allocation you a time that net capital the earnings generation share announced now towards our several to last repurchase our With saw part the quarters, ratio authorized flow our over of leverage repurchases we believe as consistent Paysafe reducing $XX is share our program. appropriate our release, has healthy include

in we also We majority of continue be to to to invest deleveraging, committed innovation cash growth. continue the to while excess drive long-term to our flow expect

guidance outlook full on Based EBITDA Moving Slide adjusted year on XXXX. results maintaining for to revenue to date, strategic we the our progress XX. are and our and

billion, our to $X.XXX $XXX reiterate, full to reflects million reported reflecting of coming adjusted $X.XXX $XXX revenue XX.X% between XX%. EBITDA million, to margin be between adjusted to in EBITDA range year Just guidance billion in the and to

euro of the X.X was that note August beginning around Please quarter-to-date in exchange has rate to the and approximately averaged QX. USD X.XX at

revenue unfavorable versus has As impact annualized. of an million a of geographical mix, X% dollar approximately reminder, $X given every on weakening the our euro U.S.

the trends business of performing range. us put end through our the remains while could or the year, the towards So low at is current lower in if expectation, this end euro the the with line of level

to before Bruce closing I'll Now call turn questions. remarks for back the we take

Bruce Lowthers

you, strategic initiatives, on stronger achieve our and Alex. next Thank closing, our improvement delivering we're for of to in growth on turnaround. the track reducing phase while 'XX meaningful and In margin leverage, preparing

Over X driving QX revenue X%; growth with quarters, low towards and XX% in single-digit consecutive and in X%; high us has progress about 'XX, the momentum strong starting of QX, ahead, last midterm public improving created at This our QX, growth. expansion. are we 'XX further double-digit EBITDA growth the year-over-year now we've QX XX%; opportunities excited margin to

session. Q&A Now let's begin the

Kirsten Nielsen

shareholders couple turn analyst questions and to We'll Thank a community. take the which research our After you, that, we'll of Technologies Say from allows from questions. upload to submit questions Bruce. platform,

reminder, on this share group already together that or theme. prior a may may a common quarters. any As over in We addressed pass we questions call recent we questions also that

Kirsten Nielsen

Okay.

Our from don't does is stock near first good why this is Bruce, representation take Board to while you Mike shareholders? one? question The seems better, for trading company who doing the Paysafe be retail have lows. asked,

Bruce Lowthers

Kirsten. Mike, question. question great for thank Sure. and you Thanks, the

across and of I emphasize, focused iGaming, price or not shareholders. Board opportunities believe diverse announced overall perspectives the buyback our of and very today. highly engaged They're decades the has the our why First, of finance, corporate they believe I'll with legal that and experience the on a which Paysafe ahead, thing doing our is compliance, business right program do share quality many and e-comm, reflects authorized markets, governance. capital have for which current They strong we Directors that

to us investing million organic this we and and to up stock So flow cash prioritize gives debt generate worth opportunity in of continue healthy an to our growth. $XX reducing while an repurchase

Kirsten Nielsen

All right. Thanks, Bruce.

the regarding profitability increasingly one asked, the competitive company financial Philip as Bruce, or also and the competitive take of viability We well yourself set received you to a as dynamics. from you do of couple well? the questions would field as this how losses? reverse like apart

Bruce Lowthers

Sure. question. the and question, you, for thank I'll Philip, take the

or correct any solvency. a to has about position. important it's think I profitability Paysafe healthy misunderstandings the company's financial

free EPS, would such Paysafe in last Digital and third quarter be year metrics, performance margin, performance key When of last said XX growth cash first Our Wallets. our flow. we volume, and demonstrated EBITDA and including about I of higher-value adjusted year, across revenue, as it to a assets joined start months adjusted e-commerce the that May stabilize turning around our

improvement, move As led in growth basis growth, e-commerce great we results EBITDA we're into margin and classic year term, our of X seeing X% wallet. XXX areas, with kind year-to-date and double-digit these point my digital specifically by of

we we're competitive the deals future. we're we When While we're as things: of X winning, our the payment for and at integration. look reach in remarks, stronger certainly and both done, growth what across phase not next prepared enables to service, new turnaround down discussed positioning the company deep the compliance and in landscape, solutions, regulatory moving merchants breadth appreciate and customers the to about through of Paysafe customer which to key markets our single a comes customers the expertise

that to believe very platform. to Paysafe the use and also wallet and as Paysafe which our customers launching product initiatives Wallet, our is excited will we cases in QX, innovation expanding value We're of additional Business about scale our such our and bring while

Kirsten Nielsen

Operator, the Thanks, please line you analyst Bruce. for the Okay. Q&A? can open

Operator

question first Our Evercore coming from Togut Instructions] David from [Operator is Certainly. ISI.

live. now is line Your

David Togut

to impact do for which on Looking the And clarify, businesses of actions to have to these the the revenue does XXXX XXXX specifically? out target just expect at digit, called growth? in plans, apply midterm mid-single actions you you X on Slide growth biggest taken in both XXXX that

Bruce Lowthers

start me Slide let So with X.

focus been of our to side. So drove businesses. tried on outlined, those, in, is businesses our able I what that them growth. really into Two and as really highlight high-value valuation Digital we the double-digit declining as it really company. here were 'XX identified these businesses to came We've struggling, on e-comm we the and focused came here of When in Wallet as drive both that in of were we've the

as we forward. continue move expect to that we So

the that think to what -- they bringing address businesses, execute some put those have some to try the also and we those in SMB We back 'XX those at Direct other 'XX, be eCash we as of businesses line half performing. position back we businesses, we've done here a in and with should us look to of in in things

prepared as came back remarks, similar lines and and underperforming, we to in businesses, where, getting not on those we of what together. said trend those kind are in, expected, we the were have so as now focusing And performing we're they

number So on we start remain profiles growth kind mid-single-digit we those ball to the have of optimistic X a things will of done moving the businesses. that those, for become those and

the midterm think we more looking 'XX we not but as and at 'XX, out, Investor we double-digit profile. Day, further we about were -- I talked about growth much did a were being So when talking low so

David Togut

targeted initiatives follow-up, as expense it. operating just XXXX? for And leverage talk you Got management a could about and

Bruce Lowthers

Yes, in I'll that. jump let on Alex

Alexander Gersh

we what of on saw focus much that talked we we you the we revenue when to if think XX%, you percentage -- talked expense to about very G&A about I from Well, as the continue when see XX% management. a

organization, the drives businesses is the business. separately that serve organization, marketing of has that that, create efficiency, So as that of the operated highlighted the desperate product Bruce things right? together, as before we lot times sales think that a bring entire I many one organization, businesses, that we

to we continue see those would expect operating trends and to efficiencies. continue those So

at the we you the give the the we of year, for at we targets In terms when guidance about -- point. the of will talk end target, when XXXX, that

Operator

from today Wurtzel question Next coming from is Research. Scott Wolfe

live. Your line now is

Scott Wurtzel

Great.

the maybe and should It off about little churn quarter sort on how growth give balancing see was base. engagement sequentially great expectations to bit user thinking of the there. how of forward? in and active the a user versus one, talk and base trended to going wallet First year-over-year color per kind you just if transactions more and sort to we can a basis. be wanted But start adds growth the of user some ARPU increasing active versus And on the both about

Bruce Lowthers

the you Yes, Scott. Thank question. for

think I earnings some growth half hoping in as were as X-month I to quarter, the look, into the So in last to said the of we see our call emerge we actives start year. moved back

the a remarks, reported So rate. X% start with bit emerge saw prepared in little in a as we QX that growth we of to growth

expect I that see to QX, through continued continue. tell actives. about We can that the you with halfway X-month we acceleration

is we've our kind what is done Alex we've marketing -- Officer. regrouped mentioned, So Nicole initiatives just as our Chief Carroll, of under we Growth with

So acquisition. we're really kind of focused on consumer

will excited did and Wallet, new consolidate non-branded, both We're label be so forward in with we out market, only are going do have that Business efforts, marketing not have deals that our rolling we coming. into our coming to we'll our wallets around pipeline 'XX in our because, white we about that be wallets, 'XX some

can to 'XX. path see a we clear X-month into continuing actives to expand So as move we

Scott Wurtzel

a for of there and on your then things follow-up side as That's it. helpful. plans XXXX. Got eCash the And just

more of the XX, think months, going side years, couple was if kind as declining of even XX go of we the back last steady about eCash wallet sort to I maybe of grower. As back a still to was eCash and

we what bit growth a kind expand to in of little there And forward, rate? of the initiatives business. reaccelerate on look growth caused to just a do back, X% business kind just of this your decelerate maybe more sort wondering like So if that to eCash look the

Bruce Lowthers

Yes.

frames from hitting just which business, or 'XX, as 'XX, kind such had well had back, as year look in 'XX. COVID time 'XX essence, as 'XX. of So to in recessionary eCash you time eCash declined when last prepaid if very level set, a it frames business usually in and is, were X% you does you a

had that knew sustainable not significant in growth kind we a of growth profile then, a of profile. back amount we We XXXX. that, So was growth that, was, knew that

of you year-to-date So you're minus a back 'XX. saw from And pull X% X% it improve kind seeing in it a to in 'XX.

in direction, at have experience around kind we're businesses of the really in my while those mid-single-digit gravitated right So growth back moving it least, always profiles. typically,

Operator

next question from from Susquehanna. is Your Jamie Friedman coming

Your line is now live.

James Friedman

Nice improvement here.

ask first trying to boarding page. about Bruce, merchants. about the I acceleration So callout, new your to just I'm in find wanted the

Bruce Lowthers

Yes.

it was X. think Page I

James Friedman

got it's X. No, it. I Page

before. saying that able it when financial in I so just I'm going Merchant, days, is yes, that's and metric it expedited XX%. results? that what terms the you've of wondering you're and say May operationally to that XX may to 'XX, sounds So heard important. never you versus your and deliver how that that's mean It I'm been

Bruce Lowthers

Yes, great question. Jamie,

company one Alex So operational at about a little as of a when of looked year, And operating lot some the Those of things things we've excellence. had inefficiency organization. earlier, independently. a our talked we around created is our back year bit mentioned what kind series organizations was this within you going that a

accelerate stacks what our really And the get allow do to revenue the business technology is and here us streams. tried after that processes we've to

this business that improving of we have we're revenue. how we at to our example, the XX-day look so another time when And focusing it's example accelerate just to processes on

we I to time about and trying in being enterprise market Day think to the to did, talked our close we X XX of days we Analyst drive the months. down XXX talked down in about for sorry, that -- a in days that just couple to from earnings deals months

and doing. kind what review of on So of movement a lot positive process we're

James Friedman

the then, competitive Wallets? not Solutions environment looks a you competitive how compare better with get. But for it products know very level, if a the just position Wallet, it's Digital denominator, Great. if than answer compare higher-level versus And it's thing I we which the about, for could just would would know like follow world. up big question, a hard is Merchant very of a the because I high Merchant I market. Bruce, doing both to positioning market Okay. is you of the different. at those both But you? How

Bruce Lowthers

the resell we've Clover. very a products we We Look, space. other Certainly, We've in had growth like side, product. SMB some Yes. strong Merchant got of in I strong in see Clover. think growth competitive XX% sales our

e-comm Merchant Our also competitive that the of we're the very in component is verticals in.

what really after not do is, stay and domain the in we play that for expertise. we're have to spaces that the e-comm we trying of we're that play on in, to So trying Apple to We're go go trying upstream amount and Amazon. in a verticals or tremendous we

to really And us for worked growth really the allowed and engine on Merchant so acquiring. us reaccelerate the that's it's

when about fraud Wallet feel that with like platform, what as there's non-branded Because tremendous think itself, wallet label amount feel exceptional we or the Wallet. component good regulatory management compete you as the Again, things, of opportunity. the very Wallet of feel we I do look think like side, very really white we I the we're start on a well. platform we moving compliance the of the the into we we at,

of trying owning What gambling brands. in more the horizontal gaming that well, wallet just to in really we or other that trying space. some become a verticals exceptionally space, not we're focus we're of a couple is competes the Wallet horizontal necessarily with Again, play space, on to Apple our the

Operator

from from [Operator Tim Instructions] is question Chiodo next UBS. Our coming

Timothy Chiodo

market. are space. in North overall competitive you e-commerce competitor past How about wanted in Braintree, or American them made the acquiring. large some you into that had to environment in about of space? I to much? acquiring ask online a comments e-commerce, processing may public your merchant that a And much or Great. clearly merchant capabilities the competitor them seeing in iGaming in running the Are they online

Bruce Lowthers

Sure.

So space. competitive a this is look, highly

value have very North we them. a one do of We America, most have deals we But probably of and We competitors proposition. compete lots in run them, into strong being in. Braintree that

win to this continue in We space.

space can is what proposition and Cutler is, for been value as exceptional us Our and doing us, is, They're Zak you his by led highlighting they've successful, team. job, an the very for see.

it's about very opportunities but early optimistic within not our just in North we days globally. remain but America, So iGaming,

Timothy Chiodo

in part PayPal you the your capabilities In you being and cross-sold the Digital Wallet other And the you PayPal button processing and for approach or that Wallets? that in might online space? button, same do the is In have same wallets you you of do there that, the as is, way Would much the words, will, the right, the for processing. if cross-sell you your gambling words, Right. see say other see them? as

Bruce Lowthers

do. We

I So competitors most would our you say when look in probably the stack, are in proposition. they us value at the to similar

do is, VIP when what that. think us really about don't versus I the think them you distinguishes simply our heritage with Wallet, just they

of years and do And experience. again, regulatory experience years out, fraud experience, so stand we of really

like our chances competing. So we

Timothy Chiodo

Perfect.

-- can If very you I one. it's quick don't mind, if numbers just a

that recent you How SMB the give focus about on to that in Direct XXXX. that you're SMB most talked us Just business the focusing just portion from on? is segment's going big on contribution you that more revenue Can Direct? to portion of the

Bruce Lowthers

that Kirsten, breaking? you have do

Kirsten Nielsen

call Sure. XX%, total little for the Well, it, north a XX%. company, of it's

So that XX%, do of I you But little can Merchant math depending would take that's of north the on give is the quarter. company. I a what on going each to a assume mix the for whole Solutions. little bit, or mean,

Timothy Chiodo

North for whole of company. the XX%

Okay.

higher Merchant you. So Thank segment. the meaningfully for

Operator

Buddhavarapu Aditya from of America. from is Bank question next Our

Aditya Buddhavarapu

across broadly that? bit on on 'XX? you on so question. just user much initial of a But us -- that I Can maybe the in a side. you update things you my have but the upon any seen touched sort the quick as on more That's so seen yes, from few you give what far QX? roll first you've A I far? prioritize. a what you thoughts it, Any growth, thoughts few business, know initial to said you've think

Alexander Gersh

would in take year. guidance. far, unchanged, keep we we've we've end seen highlighted FX our the of And right, for us right, bottom think, guidance the what of the which I terms the so issue, to

So But -- we continue business the we see. our see to perform expectations. of FX. keep that's need to We to mindful what be

results the 'XX. And we this at you on the guidance. give say of about at when really else XXXX, have 'XX XXXX, point, for don't we the At we end anything to year, and will give talk

Aditya Buddhavarapu

clear. back That's just Understood. then And to iGaming. going

by you're market volumes your players much is sure -- XX%. is that I'm coming just some gaining there? other some through of maybe versus of coming grew from the share driven through But is the -- trying maybe how to that initiatives. So understand of -- that some your

Bruce Lowthers

Well, absolutely, fair adding year. XX up in been deals. Obviously, last driving look, Fanatics quarter I this great this great market we winning us. amount mean, in we're the yes, for states, a win -- to portfolio, would live I we're But we're has from again say, where a

execute this team tailwinds in great continues the think I America. to space It's as some But well. North in well. -- yes, certainly there's

just space. rapidly. growing good out, small about our is but rapidly. a it feel again, very overall growing We would, is and it's call our I growing business, -- e-comm it's part E-comm of

Aditya Buddhavarapu

guidance. Understood. back then to going just And Great. the midterm

pick get sales those say, you even of bridge eCash SMB as you think that that? to accelerating well Or to start Merchant the SMB, or do can you direct growth. in really if, and sort think do something to low for the then doesn't that Is let's to double-digit So you need up?

Alexander Gersh

the about, talked that to midterm low away that digits, moved of we are fire. believe high all There case. we the be single the in irons lots digit, double still At guidance from

is there will things better, where targeting things But work Some are think better. overall, that be. will this is we we to not work still -- some

Bruce Lowthers

confidence right be able complete the Yes, SMB and have to add, get Direct will business eCash growth just in business profile. I we the I'll

Operator

our end management like of to the reached I'd turn floor comments. We've the question-and-answer closing back session. or any to over further for

Bruce Lowthers

you into year gone much. to the of and has that look 'XX. for efforts the ahead to at the talking again, QX, end Yes. and yet Thank Look, everybody the just us your to I everyone I for all and really together for here help Kirsten to this and want going team joining appreciate want all exciting thank times very the forward today. thank

Alexander Gersh

you. Thank

Operator

conclude and Thank That teleconference you. does today's webcast.

a line for and time, may participation day. We You you disconnect at thank your wonderful have your today. this

Paysafe Limited (PSFE) 14 Nov 232023 Q3 Earnings call transcript