Paysafe’s Boss Presents a Sunnier Outlook As He Points to Improved Results

Bruce Lowthers came over from FIS Inc. last spring to run a stumbling Paysafe Ltd., and in the ensuing months the new chief executive delivered a series of candid assessments of his new company. “Bluntly, we’ve lost our way here,” he told equity analysts in November, adding, “We’re impeding our growth…we have to execute better.”

The message must have been received. Lowthers’s assessment early Thursday was considerably sunnier during a conference call to discuss the London-based processor’s fourth-quarter and full-year results, which included improved numbers for its crucial digital-wallet and merchant-acquiring businesses.

“We said we’d return to growth in the back half of [2022] and we’ve done exactly that,” Lowthers said, pointing to total payments volume of $33 billion for the quarter and $130 billion for the year, year-over-year increases of 5% and 6%, respectively.

The wallet business, which includes the Skrill and Neteller products, has posted five consecutive months of growth, he said. Total active users for the products reached 25.9 million in the fourth quarter, up 34% since the final quarter of 2021 as the company has worked to broaden the user base beyond iGaming to more general entertainment and smooth out the technology to improve the user experience. Wallet revenue for the quarter rose 6% to $177.1 million and 1% for the year, to $686.2 million.

Lowthers projected further gains. “We expect [the number of ] users to accelerate around the second quarter,” he noted, as the company concentrates on boosting the value users store in their wallets. Total deposits rose 14% to $262 million in the fourth quarter compared to the same period in 2021.

At the same time, Lowthers pointed to rising opportunities in North American iGaming and recent client conversions as encouraging signs the company is back on track. Ten months after taking over, he added, “I’m more excited … about the opportunity we have…we expect to be very competitive in U.S. iGaming.” Paysafe now supports digital gaming payments in 25 U.S. states, Lowthers reported.

Paysafe’s other crucial business, acquiring, posted improved financial results on better volume totals. Revenue rose 10% for the quarter, to $208.5 million, as well as for the year, to $817.4 million. Lowther ruled out any impacts from a possible recession in markets like the United States. “This is really about us going out and executing,” he said. “If we do have a recession, it will be mild.”

Paysafe reported $384 million in revenue overall for the quarter, up 8%, and $1.5 billion for the year, up 5%. Adjusted net income for the quarter was $33 million, down from $52 million in 2021’s fourth quarter. For the year, it came to $137 million, down from $185.8 million. “We’re prepared to grow in 2023,” Lowthers said. “We have stabilized the company.”