Tue, July 02, 2024 at 17:37

• 

  Kang-hoon

  • Hello, Annie.

  • Today, I have some exciting news about Paysafe's recent financial performance and future projections.

  • 
• Annie

  • Oh, that sounds interesting!

  • What's the big news?😊

  
• 

  Kang-hoon

  • Paysafe has forecasted an annual revenue of $1.7 billion for 2024, driven by the growing demand for Paysafecard deposits on online casinos.

• Annie

  • Wow, that's impressive!

  • How did they perform in the first quarter?

  
• ADward

  • Hold on! Behold, an advertisement awaits. Legend has it that clicking on this ad will make the AI server even smarter... 😅

  
• 

  Kang-hoon

  • In the first quarter, Paysafe reported a net income of $3.1 million, a significant improvement from the $3.8 million loss in the same period last year.

  • 
• Annie

  • That's quite a turnaround!

  • What contributed to this success?

  
• 

  Kang-hoon

  • Bruce Lowthers, the CEO, attributed this to their white-label wallet strategy, an expanded sales team, and a renewed focus on enabling deposits via Paysafe, especially in the USA.

• Annie

  • Interesting.

  • How did their revenue and EBITDA look?

  
• 

  Kang-hoon

  • Their revenue for the first quarter grew by 8% year-over-year to $417.7 million, and their adjusted EBITDA increased by 4% to $111.9 million.

• Annie

  • That's solid growth.

  • What about their different segments?

  
• 

  Kang-hoon

  • The Merchant Solutions segment saw an 11% rise in revenue due to growth in e-commerce and small to medium-sized businesses.

  • The Digital Wallets segment also grew, driven by the gambling sector.

• Annie

  • It seems like the gambling sector is a big part of their success.

  • Any strategic partnerships?

  
• 

  Kang-hoon

  • Yes, their partnership with Xsolla for a new white-label wallet strategy has been particularly successful.

  • This, along with an expanded sales team, has bolstered their performance.

• Annie

  • What are their financial projections for 2024?

  
• 

  Kang-hoon

  • Paysafe expects revenue between $1.688 billion and $1.712 billion, with an adjusted EBITDA ranging from $473 million to $488 million.

• Annie

  • That's optimistic!

  • What about the online gambling market in general?

  
• 

  Kang-hoon

  • The global online gambling sector is projected to reach an annual value of $153.57 billion by 2030, with a compound annual growth rate (CAGR) of 11.7% over the next six years.

• Annie

  • That's huge!

  • What factors are driving this growth?

  
• 

  Kang-hoon

  • Key factors include the increasing availability of free-play versions of online casino games and the adoption of advanced digital payment options like Paysafe.

• Annie

  • Free-play versions?

  • How do they help?

  
• 

  Kang-hoon

  • They allow players to experience games without financial risk, building trust and familiarity with online gambling platforms.

  • Revenue is generated through advertisements within these free-play environments.

• Annie

  • Got it.

  • And digital payments?

  
• 

  Kang-hoon

  • Digital payment options, including blockchain-based solutions and digital wallets like Paysafe, make it easier for players to deposit and withdraw funds, removing friction.

• Annie

  • How significant are digital payments in iGaming?

  
• 

  Kang-hoon

  • Approximately 75% of iGaming is funded through digital payment methods like Paysafe and cryptocurrencies.

  • About 40% of these payments are made via cryptocurrencies.

• Annie

  • That's a lot!

  • So, is this news good or bad for the market?

  
• 

  Kang-hoon

  • This is definitely good news.

  • Paysafe's strategic focus on enhancing its digital wallet capabilities and expanding in the iGaming sector positions it well for sustained growth.

  • The market's rapid expansion presents substantial opportunities for them.

  • Upon comprehensive consideration, this news is perceived as a 😍Bullish.