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Paysafe growth stifled by headwinds in Q3

B2B payments platform Paysafe reported a 4% revenue rise to $366m and a 5% increase in total payment volume to $32.5bn in Q3 2022, which it put down to resilience from US SMBs. 

Paysafe revenues rise, EBITDA margin falls (YoY)
Paysafe Q3 revenue and adjusted EBTIDA margin, 2020-2022

The company saw 12% revenue growth in its US acquiring segment. However, adjusted EBITDA fell 10% YoY to $95.5m, giving Paysafe an EBITDA margin of 26.1% (down from 30% last year). Headwinds included a $4.1m revenue impact from the Russia-Ukraine war and a $5.6m impact from unfavourable changes to FX rates. 

In particular, FX rates affected digital commerce, which declined again this quarter by 4% – to $180.6m. However, it increased 8% on a constant currency basis, reflecting growth from new products and acquisitions in the last 12 months, such as Europe and LatAm-focused payments platform SafetyPay.

The company is continuing to expand into Latin America, where it has launched 10 Paysafe merchants and has now launched its eCash payment solution in Argentina. It has also added Kansas to its iGaming division, building on payments partnerships with multiple operators. 

Paysafe has tightened the range in its FY 2022 revenue guidance to $1.48bn-$1.49bn, while adjusted EBITDA is now expected to be $407m-$411m.

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