Paysafe has reported its Q1 23 results, with its strongest quarter since it went public via a SPAC in March 2021 seeing it deliver 5% YoY revenue growth to $388m, or 7% on a constant currency basis. It also saw its volume increase by 8% YoY to $34bn for Q1 23, although is yet to make a profit. The company reaffirmed its FY 2023 revenue projections of around a 6-7% increase based on the results, however this was not enough to appease investors, with the share price falling over 12% following the news.
Much of the company’s growth this quarter came from its Merchant Solutions segment, which grew 8% to $209m. Within this, ecommerce was a particularly strong driver, seeing double-digit growth, as was the company’s North American SMB market.
Meanwhile, Digital Wallets saw a 2% rise (6% on a constant currency basis) to $181m, which was buoyed by growth in both iGaming and digital assets, but undercut by ongoing impacts from the Russia-Ukraine war. Within the company’s classic digital wallet subsegment, Paysafe saw 10% growth on a constant currency basis, aided by stable three-month active users, but a 27% YoY growth in average transactions per user.
The company stated that it is now leading as a mid-tier SMB acquirer, as well as a provider of digital wallets and as an eCash network.
Paysafe highlighted that this quarter is part of an ongoing effort to return to growth that will take multiple quarters to achieve, however the company pointed to its scalable model and projected double-digit EBITDA growth, as well as its position in large-high growth verticals such as entertainment and iGaming, as key signs of its success.