Paysafe has provided updated financial estimates for the fourth quarter of 2022, following its performance in the third quarter. The company expects revenue to range between $1.48bn and $1.49bn, compared to the previous guidance of $1.47bn to $1.49bn. Similarly, adjusted EBITDA is projected to be between $407.0m and $411.0m, compared to the previous range of $400.0m to $415.0m.
In the third quarter, Paysafe experienced a 3.5% year-on-year increase in revenue, reaching $366.0m. This growth was primarily driven by a 12.4% rise in revenue from its US acquiring business, which became the company’s main source of revenue. However, there was a 4.3% decline in digital commerce revenue, partly offsetting the overall revenue increase.
While costs increased in several areas, Paysafe saw a significant decrease in impairment expenses on goodwill and intangible assets. This led to a lower overall expense for the quarter.
In terms of profitability, Paysafe reported a pre-tax profit of $8.3m, as opposed to a loss of $234.0m in the same period last year. The company paid $7.3m in income tax, resulting in a net profit of $978,000, compared to a loss of $147.1m in 2021. However, including a $33.5m loss on foreign currency translation, the total net loss for the quarter was $32.6m, showing improvement compared to the $153.8m loss in 2021.
The company’s adjusted EBITDA declined by 10.2% to $95.5m, not including the large impairment charge. Paysafe’s CEO, Bruce Lowthers, expressed satisfaction with the financial results, highlighting the resilience in the US SMB market and improvement in digital commerce. He also expressed confidence in the company’s actions to rejuvenate growth and expects further improvement in 2023 and beyond.
