LONDON - Paysafe Limited (NYSE:PSFE) reported third quarter earnings that fell short of analyst expectations on Wednesday, sending shares down 8% in early trading despite revenue that topped estimates.
The payments platform company posted adjusted earnings per share of $0.51 for the quarter, missing the consensus forecast of $0.61. Revenue came in at $427.1 million, surpassing analyst projections of $423.15 million and representing 8% year-over-year growth.
Paysafe's CEO Bruce Lowthers commented on the results: "I am happy to report on behalf of our team another healthy quarter for Paysafe. Revenue growth continues to be strong this year, reaching 8% for the third quarter and year-to-date, demonstrating execution on our strategic priorities."
The company reaffirmed its full-year 2024 revenue guidance of $1.713 billion to $1.729 billion, in line with Wall Street estimates of $1.72 billion.
While revenue growth was solid, investors appeared focused on the earnings miss. Adjusted EBITDA grew just 1% year-over-year to $117.8 million.
Paysafe reported a net loss of $13 million for the quarter, compared to a $2.5 million loss in the same period last year. The wider loss was attributed primarily to foreign exchange impacts.
The company highlighted continued double-digit growth in its eCommerce channel, driven by strong demand in North American iGaming. Paysafe also noted progress on cost initiatives, with net leverage decreasing to 4.7x as of September 30, down from 5.0x at the end of 2023.
Despite the negative market reaction, Paysafe maintains its outlook for continued momentum heading into 2025.
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