Paysafe Limited Soars 8% on Q4 Revenues Beat

Shares of Paysafe Limited (NYSE: PSFE) jumped 4.8% on March 2 and gained another 4% during the after-market trading, after it reported impressive fourth-quarter sales and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), which outpaced both the company’s own revenue guidance and outperformed analysts’ expectations.

The beat was driven by robust performance from US Acquiring and the turnaround of the digital wallet business. Paysafe is a specialized payments platform company

Q4 Numbers

Revenues were flat year-over-year at $371.1 million but exceeded consensus estimates of $357.37 million. Total Payment Volume increased 20% to $31.5 million.

Further, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 11% to $105.5 million.

FY2022 Outlook

Looking ahead, management provided financial guidance for FY2022.

The company forecasts revenues to be in the range of $1.53 billion to $ 1.58 billion, versus the consensus estimate of $1.54 billion.

For the fiscal first quarter, revenues are projected to be in the range of $355 million to $365 million, versus the consensus estimate of $362.7 million.

Appointment of New Chairman

Concurrent with the earnings release, Paysafe announced the appointment of Daniel Henson as the non-executive chairman of its board of directors.

The appointment is effective from March 1, 2022 and follows the decision of William P. Foley II to step down as chairman and board member to focus on other commitments.

CEO Comments

Paysafe CEO, Philip McHugh, commented, “We continue to win and pursue competitive deals with some of the most disruptive companies in high growth verticals, such as North America iGaming and crypto, and our teams remain extremely focused on delivering on our commitments, positioning Paysafe for strong future growth.”

Analysts Recommendation

Following the Q4 results, Susquehanna analyst James Friedman lowered the price target on Paysafe to $9 (197.03% upside potential) from $13 and reiterated a Buy rating.

The Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 3 Buys, 1 Hold and 1 Sell. The average Paysafe price target of $8.33 implies that the stock has upside potential of 174.9% from current levels.

Bloggers Weigh In

TipRanks data shows that financial blogger opinions are 85% Bullish on PSFE stock, compared to a sector average of 68%.

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