Paysafe Ltd (PSFE) 2023 Q4 法說會逐字稿

Greetings. Welcome to the Paysafe fourth quarter 2023 earnings call. (Operator Instructions) Please note this conference is being recorded. I will now turn the conference over to Kirsten Nielsen, Head of Investor Relations. Thank you. You may begin.

問候。歡迎參加 Paysafe 2023 年第四季財報電話會議。（操作員說明）請注意，本次會議正在錄製中。我現在將會議交給投資者關係主管克斯汀尼爾森 (Kirsten Nielsen)。謝謝。你可以開始了。

Thank you, and welcome to Paysafe earnings conference call for the fourth quarter and full year 2023. Joining me today are Bruce Lowthers, Chief Executive Officer; and Alex Gersh, Chief Financial Officer.

謝謝，歡迎參加 Paysafe 第四季和 2023 年全年財報電話會議。今天與我一起出席的是執行長 Bruce Lowthers；和財務長 Alex Gersh。

Before we begin, a reminder that this call will contain forward-looking statements and should be considered in conjunction with cautionary statements contained in our earnings release and the company's most recent SEC reports. These statements reflect management's current assumptions and expectations and are subject to factors that may cause actual results to differ materially from these forward-looking statements. You should not place undue reliance on these statements.

在我們開始之前，請注意，本次電話會議將包含前瞻性陳述，並應與我們的收益發布和公司最新的 SEC 報告中包含的警示性陳述結合起來考慮。這些陳述反映了管理階層目前的假設和預期，並受到可能導致實際結果與這些前瞻性陳述有重大差異的因素的影響。您不應過度依賴這些陳述。

Forward looking statements during this call speak only as of the date of this call, and we undertake no obligation to update them. Today's presentation also contains non-GAAP financial measures. You can find additional information about these measures and reconciliations to the most directly comparable GAAP financial measures in today's press release and in the appendix of this presentation, which are available on the Investor Relations section of our website.

本次電話會議期間的前瞻性陳述僅代表本次電話會議當日的情況，我們不承擔更新這些前瞻性陳述的義務。今天的演示還包含非公認會計準則財務指標。您可以在今天的新聞稿和本演示文稿的附錄中找到有關這些措施以及與最直接可比的 GAAP 財務措施的調節的更多信息，這些信息可在我們網站的投資者關係部分找到。

With that, I'll turn the call over to Bruce.

這樣，我就把電話轉給布魯斯。

Great. Thanks, Kirsten, and thank you all for joining us today. We're pleased with our fourth quarter and full year '23 performance, which reflects the achievement of our financial guidance.

偉大的。謝謝克爾斯滕，也謝謝大家今天加入我們。我們對 23 年第四季和全年的業績感到滿意，這反映了我們財務指導的實現。

2023 marked a year of continued improvement for Paysafe with better growth and better execution. Our teams have a lot to be proud of, and I want to thank them for their hard work and dedication. While we've made progress in many areas of the business, there is more to be done, and we're excited to deliver our goals for 2024, which are well underway.

2023 年是 Paysafe 持續改善的一年，實現了更好的成長和更好的執行。我們的團隊有很多值得自豪的地方，我要感謝他們的辛勤工作和奉獻精神。雖然我們在業務的許多領域取得了進展，但還有更多工作要做，我們很高興能夠實現 2024 年的目標，這些目標正在順利進行中。

Alex will take you through the financial results in more detail, but the headline is that we delivered a strong fourth quarter with 8% revenue growth or 6% on a constant currency basis, resulting in full year revenue of $1.6 billion, a 7% increase compared to 2022 and a 6% on a constant currency basis. Fourth quarter adjusted EBITDA increased 13% leading to full year adjusted EBITDA of $459 million, an increase of 12% compared to 2022 or 11% on a constant currency.

Alex 將帶您更詳細地了解財務業績，但標題是我們第四季度的營收成長強勁，營收成長 8%，按固定匯率計算成長 6%，全年營收達到 16 億美元，成長 7%與2022 年相比，以固定匯率計算成長6%。第四季調整後 EBITDA 成長 13%，全年調整後 EBITDA 達到 4.59 億美元，比 2022 年成長 12%，以固定匯率計算成長 11%。

This resulted in adjusted EBITDA margin of 28.6% for 2023, an increase of 120 basis points. We also reduced our net leverage, which was 5.0 at quarter end, overachieving our original target for 2023 and down from 5.8 at the end of last year.

這導致 2023 年調整後 EBITDA 利潤率為 28.6%，增加了 120 個基點。我們也降低了淨槓桿率，季末為 5.0，超出了 2023 年的最初目標，低於去年年底的 5.8。

Turning to slide 4, I'll recap the highlights of our achievements in 2023, which provides us with a solid foundation to build upon in 2024. First, starting with enterprise sales, we closed roughly 160 enterprise deals in 2023. This was supported by a 58% increase in our quota-carrying sales reps to 71 team members, which is nearly double the comparable head count from the second half of 2022 when the plans for our sales transformation were first established. And this drove a strong contribution to in-year revenue growth from new deals signed. We also recorded double-digit e-commerce growth, which increased 29% for 2023.

轉到投影片 4，我將回顧我們 2023 年所取得的成就的亮點，這為我們在 2024 年的發展奠定了堅實的基礎。首先，從企業銷售開始，2023 年我們完成了約 160 筆企業交易。這得益於我們的配額銷售代表增加了 58%，達到 71 名團隊成員，這幾乎是 2022 年下半年我們首次製定銷售轉型計劃時可比人員數量的兩倍。這推動了新簽署的交易對年內收入成長的強勁貢獻。我們也實現了兩位數的電子商務成長，2023 年成長 29%。

On customer experience after coming up in the J.D. Power rankings and reaching third place last year, I'm thrilled that Paysafe has now reached among the top two brands outperforming the industry average for all studied dimensions.

在客戶體驗方面，去年在 J.D. Power 排名中名列第三，我很高興 Paysafe 現在已躋身前兩個品牌之列，在所有研究維度上均優於行業平均水平。

Another highlight on the merchant side is our improved deal efficiency, including faster onboarding. In Q4, our average-contract-to-launch timeframe was about 30 days faster than what we were delivering in Q1, driven by continued process improvement, system consolidation, and the creation of a focused customer success team.

商家方面的另一個亮點是我們提高了交易效率，包括更快的入職速度。在持續的流程改善、系統整合和創建專注的客戶成功團隊的推動下，第四季度我們的平均合約到啟動時間比第一季交付的時間快了約 30 天。

On the consumer side, we improved the customer experience by building the self-serve tools into web and mobile journeys, resulting in a 20% reduction in the customer service contacts. We also increased our customer service NPS score by implementing enhanced automation and next-gen customer service tools. These improvements throughout 2023 have resulted in an increased growth and engagement in our classic digital wallet. We closed out the year seeing growth in three month actives with encouraging progress in key conversion metrics, including payments success rates and converting sign-ups to first usage in the wallet.

在消費者方面，我們透過將自助服務工具建置到網路和行動旅程中來改善客戶體驗，從而減少了 20% 的客戶服務聯繫次數。我們還透過實施增強的自動化和下一代客戶服務工具來提高客戶服務 NPS 分數。2023 年的這些改進提高了我們經典數位錢包的成長和參與度。我們在今年結束時看到了三個月活躍量的成長，關鍵轉換指標取得了令人鼓舞的進展，包括支付成功率和將註冊轉化為錢包中的首次使用。

Lastly, in addition to improving the customer experience, we've sharpened our focus on new product development. We've made a number of organizational changes in 2023, adapted our capital spend to support this renewed commitment to innovation. During the year, we optimized and expanded the payment methods available to our merchants and increased the number of payment methods that are available enterprise wide.

最後，除了改善客戶體驗之外，我們也更重視重新產品開發。2023 年，我們進行了多項組織變革，調整了資本支出，以支持這項新的創新承諾。年內，我們優化並拓展了商家可用的支付方式，增加了企業範圍內可用的支付方式數量。

In summary, we've made great progress across the board, resulting in growth in our key financial metrics while also reducing our debt and leverage.

總之，我們在各方面都取得了巨大進步，導致我們的關鍵財務指標成長，同時也減少了我們的債務和槓桿。

Moving to slide 5. This is the same supplemental use that we provided last quarter, demonstrating our growth by each business unit. As you've seen in our results, we've improved revenue growth to 7% in 2023, driven by double digit growth across the classic digital wallet business, e-commerce solutions, and our SMB third party channel. This growth was partially offset by softer performance from two areas of business, our direct channel in the US acquiring as well as our eCash business. I'll come back to this in a moment when I discuss our focus for 2024.

轉到投影片 5。這與我們上季度提供的補充用途相同，顯示了我們每個業務部門的成長。正如您在我們的業績中所看到的，在經典數位錢包業務、電子商務解決方案和中小企業第三方通路兩位數成長的推動下，我們到 2023 年將營收成長提高至 7%。這一成長被我們在美國的直接收單管道和電子現金業務這兩個業務領域的疲軟業績所部分抵消。當我討論 2024 年的重點時，我會再回到這個主題。

Turning to slide 6. In Q4, we booked 50 new enterprise wins with balanced deal activity across our target verticals. Additionally, we are pleased to have expanded our relationship with Hard Rock Bet into newly relaunched Florida market, which is now the largest state with legalized sports betting and anticipated to be one of the largest sports betting markets in the US. We look forward to continuing to grow our relationship with Hard Rock supporting online payments for its players.

轉到投影片 6。第四季度，我們透過目標垂直領域的平衡交易活動贏得了 50 家新企業。此外，我們很高興將與 Hard Rock Bet 的關係擴展到新重新啟動的佛羅裡達州市場，該市場目前是體育博彩合法化的最大州，預計將成為美國最大的體育博彩市場之一。我們期待繼續發展與 Hard Rock 的關係，為其玩家提供線上支付支援。

For our 2024 sales priorities, we're moving into an important phase of execution and continued investment to support future growth and scale. In 2024, we plan to add 170 additional salespeople to our headcount while expanding the scope of this initiative beyond the enterprise level to also include our SMB business. This will also include territory expansion to about four new states this year, where we already have hired 25 SMB agents primarily in states not covered today by us.

對於我們 2024 年的銷售重點，我們正在進入執行和持續投資的重要階段，以支持未來的成長和規模。到 2024 年，我們計劃再增加 170 名銷售人員，同時將該計劃的範圍擴大到企業級別之外，將我們的中小企業業務也納入。這也包括今年將領土擴展到大約四個新州，我們已經在這些州僱用了 25 名 SMB 代理商，主要是在我們今天未涵蓋的州。

As we've touched on during prior calls, we will be focused on optimization of the SMB portfolio in 2024, particularly to improve the growth of our direct channel. At the same time, we are focused on the entire portfolio to drive a more favorable business mix partly supported by the expansion of acquisition channels and agent recruitment programs. Also, we're rolling out expanded capabilities and value added services to further enhance client satisfaction and support retention. Importantly, we'll continue to deliver on the progress we made into 2023, including continued cross-selling into our client base.

正如我們在先前的電話會議中所提到的，我們將在 2024 年專注於中小企業投資組合的最佳化，特別是提高我們直接管道的成長。同時，我們專注於整個投資組合，以推動更有利的業務組合，部分原因是擴大收購管道和代理商招募計畫。此外，我們正在推出擴展功能和增值服務，以進一步提高客戶滿意度並支援保留。重要的是，我們將繼續在 2023 年取得進展，包括繼續向我們的客戶群進行交叉銷售。

During 2023, we cross-sold our products into 19% of our enterprise client base of more than 800 merchants, which is up from very little cross-selling in prior years. And this continues to reflect the key opportunity with a lot of runway to grow with our existing merchants.

2023 年，我們將產品交叉銷售給 800 多家商戶的企業客戶群中的 19%，高於前幾年的交叉銷售水準。這繼續反映出與我們現有商家一起成長的重要機會。

Turning to slide 7. We are rolling out a phased approach of our merchant wallet to SMBs in the US with planned road map that leverages our digital wallet for SMBs to receive acquiring settlement and manage their business finances in one place. We see this as a growing opportunity in the market where SMB needs are currently being met by fragmented solutions for across banks, wallets, and various checking and software-as-a-service solutions.

轉到投影片 7。我們正在向美國的中小型企業推出分階段的商業錢包方法，並製定了路線圖，利用我們的數位錢包讓中小型企業在一個地方接收收單結算並管理其企業財務。我們認為這是市場上一個不斷增長的機會，中小企業的需求目前透過跨銀行、錢包以及各種支票和軟體即服務解決方案的分散解決方案來滿足。

For Paysafe, this represents an opportunity to bring together our B2B and B2C capabilities with a mission to help businesses with easy and convenient ways to move money through simple, intuitive digital experiences.

對 Paysafe 來說，這代表著一個將我們的 B2B 和 B2C 功能結合在一起的機會，其使命是透過簡單、直觀的數位體驗幫助企業以簡單且方便的方式轉移資金。

Moving to slide 8. We continue to show progress in our classic digital wallets, ending the year with approximately 930,000 three-month actives. This reflects 7% growth from the prior year and two quarters of consecutive growth in active users following the stabilization in the first half of '23. In the fourth quarter, we saw constant currency revenue growth of 14% from classic wallets. This was supported by product and client experience initiatives such as pricing promotions, engagement activities such as promotion calendars and revamping our loyalty program, VID campaigns, the launch of a prepaid virtual cards in Brazil.

轉到投影片 8。我們的經典數位錢包繼續取得進展，到年底三個月的活躍人數約為 93 萬人。這反映出較前一年成長 7%，以及繼 23 年上半年穩定後活躍用戶連續兩季成長。第四季度，我們看到經典錢包的貨幣收入持續成長 14%。這得到了產品和客戶體驗計劃的支持，例如定價促銷、促銷日曆等參與活動、改善我們的忠誠度計劃、VID 活動、在巴西推出預付費虛擬卡。

This was further supported by the growth from interest revenue on consumer deposits, new merchant relationships, as well as ongoing improvement from the merchant checkout conversion. In 2024, we look forward to expand this view to also demonstrate progress in our eCash solutions, providing a more comprehensive view of the consumer side of the business.

消費者存款利息收入的成長、新的商家關係以及商家結帳轉換率的持續改善進一步支撐了這一點。到 2024 年，我們期待擴展這一觀點，以展示我們的 eCash 解決方案的進展，提供更全面的消費者方面業務視圖。

Turning to slide 9. As we move forward, improving our marketing and customer acquisition strategy is key to delivering sustainable growth on the consumer side of our business. Here, as one example, we recently conducted a test campaign for our Skrill digital wallet in two European markets. The key point is that we expanded our outreach to new channels while delivering more effective localized messaging. We also implemented improve incentives and rewards to encourage new sign-ups to fund their accounts and performed subsequent transactions, driving improved conversion and engagement.

轉到投影片 9。隨著我們的前進，改善我們的行銷和客戶獲取策略是實現我們消費者業務永續成長的關鍵。舉個例子，我們最近在兩個歐洲市場對 Skrill 數位錢包進行了一項測試活動。關鍵在於我們將業務範圍擴大到新管道，同時提供更有效的在地化訊息傳遞。我們還實施了改進的激勵措施和獎勵，以鼓勵新註冊者為其帳戶提供資金並進行後續交易，從而提高轉換率和參與度。

The initial results are promising. We contributed to double-digit growth year over year and new accounts funded and the strongest sign-up activity in more than 20 months. While this campaign was focused on our Skrill wallet in select markets, we also have a solid quarter for consumer acquisition of registered eCash users in Q4 as a result of promotions across various new marketing channels such as influencer collaborations with key gaming partners, the rollout of country-specific promotions, and the sponsoring of an eTournament. This is just the start of what we're working on as part of our broader goals to drive higher consumer acquisition.

初步結果是有希望的。我們實現了同比兩位數的成長、新帳戶融資以及 20 多個月以來最強勁的註冊活動。雖然這項活動的重點是我們在特定市場的 Skrill 錢包，但由於各種新行銷管道的促銷活動，例如與主要遊戲合作夥伴的影響者合作、推出針對特定國家/地區的促銷活動以及電子錦標賽的贊助。這只是我們努力的開始，作為我們推動更多消費者購買的更廣泛目標的一部分。

Turning to slide 10, let's bring it all of this together to summarize our priorities for 2024. First, we will advance our new go-to-market strategies on both sides of the ecosystem to expand our reach with new and existing merchants to strengthen consumer acquisition.

轉向投影片 10，讓我們將所有這些匯總在一起，總結我們 2024 年的優先事項。首先，我們將在生態系統兩側推動新的市場進入策略，擴大我們與新舊商家的接觸範圍，從而加強消費者獲取。

As I touched on earlier, we also have a number of initiatives underway to optimize the portfolio particularly to address the mixed dynamics we've experienced in the SMB business. Here, we are enhancing our product offering and capabilities, expanding our merchant acquisition program, and adding additional headcount with a sharper focus on moving upmarket in expanding territories.

正如我之前提到的，我們還採取了許多舉措來優化產品組合，特別是解決我們在中小企業業務中經歷的混合動態。在這裡，我們正在增強我們的產品供應和能力，擴大我們的商家收購計劃，並增加額外的員工人數，並更加專注於在不斷擴大的領土上進軍高端市場。

Lastly, we continue to drive our initiatives around product innovation and customer experience. About half of our projects this year are focused on consumer solutions, such as scaling new products in eCash, including our new online account features and deposit methods.

最後，我們繼續圍繞產品創新和客戶體驗推動我們的舉措。今年我們大約一半的專案專注於消費者解決方案，例如擴展 eCash 中的新產品，包括我們新的線上帳戶功能和存款方式。

We are also continuing to improve the digital wallet payment experience and loyalty programs while expanding local payment methods, payouts in key regions such as Latin America. The other half of our product and initiatives are focused on the merchant side, such as continuing to expand our authorization acceptance and advancing our unbranded solutions.

我們也持續改善數位錢包支付體驗和忠誠度計劃，同時擴大本地支付方式，在拉丁美洲等關鍵地區進行支付。我們的另一半產品和措施專注於商家方面，例如繼續擴大我們的授權接受範圍和推進我們的非品牌解決方案。

Turning to slide 11. In 2024, we are making important investments to drive growth in our target verticals while enhancing operational efficiencies. The two key investment areas are sales initiatives and portfolio optimization. Overall, this reflects $25 million of incremental investment in 2024, about half of which represents onetime expense, with the remaining half reflecting the short-term margin headwind from our new sales hires in 2024 prior to their full revenue and margin contribution in '25.

轉到投影片 11。2024 年，我們將進行重要投資，以推動目標垂直領域的成長，同時提高營運效率。兩個關鍵投資領域是銷售計劃和投資組合最佳化。總體而言，這反映了 2024 年 2,500 萬美元的增量投資，其中約一半代表一次性費用，其餘一半反映了 2024 年新銷售人員在 25 年貢獻全部收入和利潤之前的短期利潤逆風。

We expect the contribution of these initiatives to deliver at least $50 million in in-year revenue and approximately $100 million for 2025, coupled with improved operating leverage as the benefits are realized over the next two years.

我們預計這些措施的貢獻將帶來至少 5,000 萬美元的年內收入，到 2025 年將帶來約 1 億美元的收入，並且隨著未來兩年內實現效益，營運槓桿將得到改善。

With that, I'll ask Alex to review the financial results.

接下來，我將要求亞歷克斯審查財務結果。

Thank you, Bruce. Let's move to slide 13 for the summary of our fourth quarter financial results. Volume was $35.8 billion in the fourth quarter, an increase of 8% year over year. And the total revenue of $414.5 million, increased 8% or 6% on a constant currency basis. Growth was led by double digit volume and revenue growth in e-commerce within the merchant solutions segment, as well as classic digital wallets included interest revenue on consumer deposits, which was a year-on-year benefit of $6 million in Q4 or $32 million for the full year compared to 2022.

謝謝你，布魯斯。讓我們轉到投影片 13，了解我們第四季的財務表現摘要。第四季成交額為 358 億美元，較去年同期成長 8%。總收入為 4.145 億美元，以固定匯率計算成長 8% 或 6%。成長主要得益於商家解決方案領域電子商務的兩位數數量和收入成長，以及傳統數位錢包（包括消費者存款利息收入），第四季同比收益 600 萬美元，即 3,200 萬美元與2022 年相比全年。

Excluding the year-on-year benefit from FX and interest, Paysafe revenue growth was approximately 4% for both the fourth quarter and full year. Adjusted EBITDA for the fourth quarter was $121.7 million, an increase of 13% year over year or 11% constant currency. Adjusted EBITDA margin was 29.4%, an increase of 140 basis points, primarily driven by operating leverage, including lower credit losses, which more than offset a decline in gross margin.

排除外匯和利息帶來的年比收益，Paysafe 第四季和全年營收成長約為 4%。第四季調整後 EBITDA 為 1.217 億美元，較去年同期成長 13%，以固定匯率計算成長 11%。調整後的 EBITDA 利潤率為 29.4%，成長了 140 個基點，主要是受到營運槓桿的推動，包括信貸損失的降低，這足以抵消毛利率的下降。

Our total SG&A was 30.2% of revenue in the fourth quarter, down from 35.7% of revenue in a prior year quarter. We generated $89.6 million in unlevered free cash flow for the fourth quarter, reflecting 74% conversion of adjusted EBITDA. I'll note that we have changed our naming convention from free cash flow to un-levered free cash flow for clarity purposes.

第四季我們的 SG&A 總額佔營收的 30.2%，低於去年同期營收的 35.7%。第四季我們產生了 8,960 萬美元的無槓桿自由現金流，反映了調整後 EBITDA 的 74% 轉換率。我要指出的是，為了清楚起見，我們已將命名約定從自由現金流更改為無槓桿自由現金流。

Additionally, we elected to reclassify the presentation of settlement receivables and funds payable due to customers from operating activities to present them as financing activities within the cash flow statement. As a result, the reconciling item related to movements in customer accounts and other restricted cash is no longer required in our non-GAAP un-levered cash flow reconciliation. You can find more information on our non-GAAP definitions and reconciliation in the appendix of our presentation.

此外，我們選擇將營業活動中應收帳款及應付客戶款項的列報重新分類，並將其列報為現金流量表中的融資活動。因此，我們的非公認會計準則無槓桿現金流量調節中不再需要與客戶帳戶變動和其他受限制現金相關的調節項目。您可以在我們簡報的附錄中找到有關我們的非 GAAP 定義和調整的更多資訊。

Adjusted net income for the fourth quarter increased 23% year over year to $40.9 million and adjusted EPS increased 22% to $0.66 per share as our growth and margin improvements more than offset increase in depreciation and amortization and tax expense. Overall, our fourth quarter results were in line with our expectations resulting in the achievement of our full year guidance for 2023.

第四季調整後淨利潤年增 23% 至 4,090 萬美元，調整後每股收益成長 22% 至每股 0.66 美元，因為我們的成長和利潤率改善足以抵銷折舊、攤提和稅收費用的成長。總體而言，我們第四季度的業績符合我們的預期，從而實現了 2023 年全年指引。

Let's move to slide 14 for the summary of the full year. Volume in 2023 increased 8% to $140 billion and full year revenue was $1.6 billion, an increase of 7% compared to 2022 or 6% constant currency. Our largest region, North America grew approximately 7% for the full year 2023. Europe, our second largest region, grew approximately 3%.

讓我們轉到投影片 14，了解全年的總結。2023 年銷量成長 8%，達到 1,400 億美元，全年營收為 16 億美元，比 2022 年成長 7%，以固定匯率計算成長 6%。我們最大的地區北美在 2023 年全年增長了約 7%。我們的第二大地區歐洲成長了約 3%。

Overall, our growth and performance trends have been consistent throughout the year, reflecting strength in e-commerce, improvement in classic digital wallets, and continued resilience in the US SMB market, driven by our third party channel. We saw softer performance from our e-cash business and the SMB direct business, which are key focus for improvements in 2024.

總體而言，我們的成長和業績趨勢全年保持一致，反映出電子商務的實力、經典數位錢包的改進以及在我們的第三方管道的推動下美國中小企業市場的持續彈性。我們看到電子現金業務和中小企業直接業務的表現疲軟，這是 2024 年改進的重點。

Adjusted EBITDA for the full year increased 12% to $459 million, resulting in adjusted EBITDA margin of 28.6%, an increase of 120 basis points. Our full year total SG&A was 31.7% of revenue, down from 35.7% in 2022. Our un-levered free cash flow for 2023 was $318 million, an increase of 8% compared to 2022 and reflecting 69% conversion of adjusted EBITDA in line with our expected conversion range of 65% to 70%.

全年調整後 EBITDA 成長 12%，達到 4.59 億美元，調整後 EBITDA 利潤率為 28.6%，成長 120 個基點。我們全年的 SG&A 總額佔營收的 31.7%，低於 2022 年的 35.7%。我們 2023 年的無槓桿自由現金流為 3.18 億美元，比 2022 年成長 8%，反映出調整後 EBITDA 的轉換率為 69%，符合我們 65% 至 70% 的預期轉換範圍。

Adjusted net income for the full year increased 5% to $144 million and adjusted EPS increased 4% to $2.33 per share as growth in adjusted EBITDA was partially offset by an increase in depreciation and amortization expense as well as a $24 million increase in interest expense. In 2024, we expect to see a reduction in interest expense, reflecting debt repayments, and current rates for FX, and interest.

全年調整後淨利潤增長5%，達到1.44 億美元，調整後每股收益增長4%，達到每股2.33 美元，因為調整後EBITDA 的增長被折舊和攤銷費用的增加以及利息費用增加2400 萬美元部分抵消。到 2024 年，我們預計利息支出將減少，反映債務償還以及當前外匯利率和利息。

Let's move to slide 15 to discuss the segment results. In fourth quarter, merchant solutions volume was $30.2 billion, an increase of 8% year over year, resulting in full year volume of $118.7 billion, also up 8%. Fourth quarter revenue increased 9% year over year to $227.3 million and a full year revenue increased 7% year over year to $878.3 million.

讓我們轉到投影片 15 來討論分段結果。第四季度，商業解決方案交易額為302億美元，年增8%，全年交易額為1,187億美元，也成長8%。第四季營收年增 9%，達到 2.273 億美元，全年營收年增 7%，達到 8.783 億美元。

Performance was led by e-commerce, which increased 29% for the full year, with strong momentum in North America iGaming. In the SMB market, we saw continued growth in verticals such as eating and drinking places, grocery and petrol, and personal services.

電子商務引領業績，全年成長 29%，北美 iGaming 勢頭強勁。在中小型企業市場，我們看到餐飲場所、雜貨和汽油以及個人服務等垂直行業的持續成長。

Merchant solutions, fourth quarter and full year adjusted EBITDA both increased 11% to $56.6 million and $222.2 million, respectively. Fourth quarter adjusted EBITDA margin expanded by 40 basis points and the full year margin expanded by 80 basis points, reflecting operational improvements, including lower credit losses which more than offset gross margin headwinds from channel mix as SMB growth was stronger in our lower margin third party channel.

商家解決方案第四季和全年調整後 EBITDA 均成長 11%，分別達到 5,660 萬美元和 2.222 億美元。第四季調整後EBITDA 利潤率擴大了40 個基點，全年利潤率擴大了80 個基點，反映了營運改善，包括信貸損失降低，抵消了通路組合帶來的毛利率不利因素，因為我們利潤率較低的第三方中小型企業成長更為強勁管道。

As of Q4, our revenue mix within merchant solutions was roughly 15% eCommerce or enterprise level merchants, 40% SMB direct channel, and 45% SMBs third party channel. In 2024, we expect this segment to grow revenues between 8% to 10%, supported by strong growth in e-commerce, the annualization of our 2023 wins and the optimization of the SMB portfolio.

截至第四季度，我們在商家解決方案中的收入組合約為 15% 的電子商務或企業級商家、40% 的中小企業直接管道和 45% 的中小企業第三方管道。到 2024 年，我們預計該細分市場的收入將增長 8% 至 10%，這得益於電子商務的強勁增長、我們 2023 年勝利的年度化以及中小企業投資組合的優化。

Turning to the digital wallet segment on slide 16. Fourth quarter volumes increased 13% to $6 billion and full year volume increased 9% to $22.4 billion. Revenue for the fourth quarter was $191.3 million, an increase of 8% year over year and 3% constant currency. Digital wallet revenue for the full year was $734.7 million, an increase of 7% or 5% constant currency.

轉向幻燈片 16 上的數位錢包部分。第四季銷售成長 13%，達到 60 億美元，全年銷售成長 9%，達到 224 億美元。第四季營收為 1.913 億美元，年增 8%，以固定匯率計算成長 3%。全年數位錢包營收為 7.347 億美元，成長 7%，以固定匯率計算成長 5%。

Fourth quarter adjusted EBITDA for the digital wallet segment was $82.4 million an increase of 7% year-over-year and up 2% on a constant currency basis and reflecting a 43.1% margin, down 40 basis points, mainly due to product mix. Full year adjusted EBITDA was $318.7 million, an increase of 10% or 8% constant currency, with margins improving by 120 basis points to 43.4%.

第四季數位錢包領域調整後 EBITDA 為 8,240 萬美元，年增 7%，以固定匯率計算成長 2%，利潤率為 43.1%，下降 40 個基點，主要由於產品組合。全年調整後 EBITDA 為 3.187 億美元，成長 10%，以固定匯率計算成長 8%，利潤率提高 120 個基點，達到 43.4%。

In 2024, for the digital wallet segment, we expect growth in the low single digits, reflecting growth in active users, the rollout of new products in eCash, such as online account features and deposit methods, cross-selling and the expansion of our merchant wallet in Europe, while expanding into key regions such as Latin America. We expect growth to be partly offset by a modest headwind from interest revenue.

到 2024 年，對於數位錢包領域，我們預計將出現低個位數成長，這反映出活躍用戶的成長、eCash 新產品的推出（例如線上帳戶功能和存款方式）、交叉銷售以及我們商家的擴張錢包在歐洲，同時擴展到拉丁美洲等關鍵地區。我們預期成長將被利息收入的溫和阻力部分抵銷。

Turning to slide 17, for the summary of debt and leverage. At the end of fourth quarter, total debt was $2.5 billion, reflecting debt repayment or repurchases of $62 million during the quarter. In 2023, we repaid approximately $174 million of our debt as we continue to take advantage of the market opportunities to buy back debt at discounts to par. At year end, net debt was $2.3 billion and our leverage ratio was further reduced to 5.0 times compared to 5.8 times at the end of 2022.

轉向幻燈片 17，了解債務和槓桿的摘要。截至第四季末，債務總額為 25 億美元，反映本季債務償還或回購額為 6,200 萬美元。2023 年，我們償還了約 1.74 億美元的債務，因為我們繼續利用市場機會以低於面額的折扣回購債務。截至年底，淨債務為 23 億美元，槓桿率從 2022 年底的 5.8 倍進一步降至 5.0 倍。

We remain focused on reducing that leverage in 2024 and will continue to work towards our midterm target net leverage of 3.5 times. Additionally, as of December, the average interest rate on our debt was 5.8%. We also earn interest on our customer deposits at a rate of 3.7%, which is recognized in revenue. As you saw in our last earnings in November, Paysafe Board authorized a $50 million share repurchase program, which we expect to commence in the coming weeks. We continue to expect the majority of our excess cash flow to be committed to deleveraging while we continue to invest in innovation to drive long term growth.

我們仍致力於在 2024 年降低槓桿率，並將繼續努力實現 3.5 倍的中期目標淨槓桿率。此外，截至 12 月，我們債務的平均利率為 5.8%。我們也以 3.7% 的利率賺取客戶存款利息，並在收入中確認。正如您在 11 月的上一份財報中看到的那樣，Paysafe 董事會批准了一項 5000 萬美元的股票回購計劃，我們預計該計劃將在未來幾週內開始。我們仍預期大部分過剩現金流將用於去槓桿化，同時繼續投資於創新以推動長期成長。

Moving to full year outlook on slide 18. For 2024, we expect revenue to be in the range of $1.688 billion to $1.712 billion, reflecting growth above 6% at the midpoint, with the largest contribution coming from our existing client base, including new enterprise wins in 2023. We believe that this growth outlook reflects continued improvement with higher quality of revenue growth, particularly when you consider the benefits of interest and FX tailwinds that we saw in 2023.

轉到幻燈片 18 上的全年展望。2024 年，我們預計營收將在 16.88 億美元至 17.12 億美元之間，中間成長率超過 6%，其中最大的貢獻來自我們現有的客戶群，包括 2023 年新贏得的企業。我們認為，這種成長前景反映了收入成長品質的持續改善，特別是考慮到我們在 2023 年看到的利息和外匯順風的好處。

We expect adjusted EBITDA to be within the range of $473 million to $488 million. And while we expect to see a continued decline in gross margin in 2024 as a result of business mix, we are offsetting this headwind with cost discipline and operational efficiencies. As Bruce highlighted, we're also planning for incremental OpEx investment of approximately $25 million to support the expansion of our sales team and portfolio optimization, which has an impact of approximately 150 basis points on adjusted EBITDA margins.

我們預計調整後 EBITDA 將在 4.73 億美元至 4.88 億美元之間。儘管我們預計由於業務組合，2024 年毛利率將持續下降，但我們正在透過成本控制和營運效率來抵消這一不利因素。正如 Bruce 所強調的，我們還計劃增加約 2500 萬美元的營運支出投資，以支持我們銷售團隊的擴張和產品組合優化，這對調整後 EBITDA 利潤率產生約 150 個基點的影響。

Excluding these investments, adjusted EBITDA would be greater than $500 million and reflect margin expansion. We expect the cadence of growth throughout the year to follow normal seasonal patterns, which typically reflect a modest seasonal decline from Q4 to Q1, as well as seasonal uplift from Q3 to Q4. As with prior years, we expect Q4 to be our strongest quarter, also reflecting the timing of our sales and product initiatives, including the pace of revenue contribution from new sales hires to take about six months to onboard and start producing.

排除這些投資，調整後的 EBITDA 將超過 5 億美元，反映了利潤率的擴張。我們預計全年成長節奏將遵循正常的季節性模式，這通常反映出從第四季到第一季的季節性適度下降，以及從第三季到第四季的季節性上升。與往年一樣，我們預計第四季度將是我們最強勁的季度，這也反映了我們的銷售和產品計劃的時間安排，包括新銷售人員的收入貢獻速度，需要大約六個月的時間才能入職並開始生產。

We expect the $25 million of incremental cost to be saved roughly 60% in the first half of the year and 40% in the second half. Adjusted EBITDA margins are expected to be stronger in the second half as well, largely due to the same drivers, which will influence our operating leverage.

我們預計上半年 2,500 萬美元的增量成本將節省約 60%，下半年將節省 40%。預計下半年調整後的 EBITDA 利潤率也會更高，這主要是由於相同的驅動因素，這將影響我們的營運槓桿。

Looking ahead to 2025, we expect revenue growth to accelerate from 2024 and for adjusted EBITDA margins to reflect a more normalized margin excluding these investments for at least 100 basis points above the high end of our 2024 outlook, including enhanced operating leverage as the new hires are onboarded this year and generating annualized revenue contribution in 2025 and beyond.

展望2025 年，我們預期營收成長將從2024 年開始加速，調整後的EBITDA 利潤率將反映更正常化的利潤率（不包括這些投資）至少比我們2024 年展望的上限高出100 個基點，其中包括新員工帶來的營運槓桿的增強今年加入，並在 2025 年及以後產生年化收入貢獻。

Now I will turn the call back to Bruce for closing remarks before we take questions.

現在，在我們回答問題之前，我將把電話轉回給布魯斯，讓其結束語。

Thank you, Alex. In closing, I'd like to reiterate that we see significant value potential in Paysafe with a lot of runway to accelerate growth. We maintain strong market positions in high-value markets. We serve premier global client base with significant cross-selling opportunities across our geographies.

謝謝你，亞歷克斯。最後，我想重申，我們看到 Paysafe 具有巨大的價值潛力，並且有很大的空間來加速成長。我們在高價值市場中保持強大的市場地位。我們為全球優質客戶群提供服務，並在各個地區提供重要的交叉銷售機會。

We are entering 2024 in a solid financial position with strong cash generation while also deleveraging the business to create shareholder value. By continuing to prioritize client experience, product innovation, and execute our go-to-market strategy, we believe that we can unlock meaningful opportunities in stakeholder value.

進入 2024 年，我們的財務狀況穩健，現金流強勁，同時也透過業務去槓桿化創造股東價值。透過持續優先考慮客戶體驗、產品創新並執行我們的市場策略，我們相信我們可以釋放利害關係人價值的有意義的機會。

Now let's begin the Q&A session.

現在我們開始問答環節。

Thank you, Bruce will take a couple of questions from the Safe technology platform, which allows shareholders to submit and upvote questions. After that, we'll turn to questions from our research analyst community. As a reminder, we may pass over questions that were already addressed on this call or in the prior recent quarters. We may also group together questions that share a common theme.

謝謝，布魯斯將從 Safe 技術平台回答幾個問題，該平台允許股東提交問題並投票。之後，我們將轉向研究分析師社群提出的問題。提醒一下，我們可能會忽略本次電話會議或最近幾季已經解決的問題。我們也可以將具有共同主題的問題組合在一起。

Our first question is from [Matthew] who asks what goals have we set in order to restore investor confidence in Paysafe? Bruce, could you take this one?

我們的第一個問題來自 [Matthew]，他問我們設定了哪些目標來恢復投資人對 Paysafe 的信心？布魯斯，你能拿走這個嗎？

Sure. Thank you, Kirsten. Look, I think the question that Matthew's posed, what goals have we set? I think we clearly said that as we started out going back a couple of years would stabilize the company, we would then begin to grow our revenue streams and then accelerate growth once we have done that.

當然。謝謝你，克爾斯滕。看，我認為馬修提出的問題是，我們設定了哪些目標？我認為我們明確表示，當我們開始時，回顧幾年將穩定公司，然後我們將開始增加我們的收入流，然後在完成後加速成長。

I think if you look back at the achievements and the financial results that we highlighted in our remarks, we can see that our results have improved growth in '23 across essentially all key metrics, while also reducing our debt and net leverage ratio.

我認為，如果你回顧我們在演講中強調的成就和財務業績，我們可以看到我們的業績在 23 年幾乎所有關鍵指標上都改善了成長，同時也降低了我們的債務和淨槓桿率。

We continued to deliver on that progress in '24. We're really advancing our go-to-market strategies on both sides of our ecosystem to expand the reach in new -- with new and existing merchants. This kind of strengthening our consumer and merchant acquisition. We've gone under significant operating changes during the past year, and I'm highly confident that we are in a stronger position today and well positioned for the future.

我們在 2024 年繼續取得了這項進展。我們確實在生態系統的兩側推進我們的入市策略，以擴大新的業務範圍——與新的和現有的商家合作。這種加強我們的消費者和商家獲取。在過去的一年裡，我們經歷了重大的營運變革，我非常有信心我們今天處於更有利的地位，並為未來做好了準備。

Okay. Thank you, Bruce.

好的。謝謝你，布魯斯。

Our next question is from [Daniel] who asked about adding Web3 or cryptocurrency capabilities and [active] Skrill users will be able to invest in equity markets. Bruce, do you want to address this one as well?

我們的下一個問題來自 [Daniel]，他詢問添加 Web3 或加密貨幣功能以及 [活躍] Skrill 用戶將能夠投資股票市場。布魯斯，你也想解決這個問題嗎？

Yeah, happy to. And Daniel, thanks for the question. I think we have the right talent assets and regulatory experience to enable new ways to buy and sell in a virtual environment and to serve the new generation of digital entrepreneurs in the experiential economy. The combination of crypto and Web3 is part -- part of that, I would say we're very focused across the entertainment space and we do think about the future functionality quite a bit as how that's going to evolve over time.

是的，很高興。丹尼爾，謝謝你的提問。我認為我們擁有合適的人才資產和監管經驗，可以在虛擬環境中實現新的買賣方式，並為體驗經濟中的新一代數位企業家提供服務。加密貨幣和 Web3 的結合是其中的一部分，我想說的是，我們非常關注娛樂領域，我們確實對未來的功能進行了相當多的思考，以及它將如何隨著時間的推移而發展。

To address the question more directly, crypto is, today, a very small piece of our business, less than 2% of our revenue. Our wallet does offer crypto trading income with 50 different cryptocurrencies available in over 80 countries globally, including features complementary Web3. But we don't really have any interest at this point of offering equity trading as we're looking at our feature functionality as we're moving forward.

為了更直接地回答這個問題，如今，加密貨幣只占我們業務的一小部分，不到我們收入的 2%。我們的錢包確實透過全球 80 多個國家的 50 種不同加密貨幣提供加密貨幣交易收入，包括與 Web3 互補的功能。但我們目前對提供股票交易並沒有任何興趣，因為我們正在研究我們的功能，因為我們正在前進。

So we feel very strongly about the emergence of crypto and Web3 in especially in the gaming space on Web3 and we do plan to be part of -- have that as part of our offering as we're moving forward.

因此，我們對加密貨幣和 Web3 的出現感到非常強烈，特別是在 Web3 的遊戲領域，我們確實計劃成為其中的一部分——隨著我們的前進，將其作為我們產品的一部分。

Okay. Thanks, Bruce. And lastly, we did have a couple of questions on the nature of capital allocation from Ganesh [thickness Warren], who asked about the strategy for repaying debt. And had another question on our plans to initiate the recently approved stock buyback program. Alex, can you take this one?

好的。謝謝，布魯斯。最後，我們確實對 Ganesh [thickness Warren] 提出了一些關於資本配置性質的問題，他詢問了償還債務的策略。還有一個關於我們啟動最近批准的股票回購計劃的計劃的問題。亞歷克斯，你能拿走這個嗎？

Sure. Happy to take the question. Just to recap what we've shared in our prepared remarks at year-end, our leverage ratio was reduced to 5.0 times compared to 5.8 times at the end of 2022. In 2023, we repaid approximately $174 million of our debt, and this was actually better than what we initially targeted for the year.

當然。很高興接受這個問題。回顧我們在年底準備的演講中所分享的內容，我們的槓桿率從 2022 年底的 5.8 倍降至 5.0 倍。2023 年，我們償還了約 1.74 億美元的債務，這實際上比我們最初的年度目標要好。

We remain focused on reducing net leverage in 2024 and will continue to work towards our midterm target net leverage of 3.5 times. As you saw in our last earnings release in November, the Board authorized a $50 million share repurchase program, which we expect to commence in the coming weeks. We plan to maintain flexibility and continue to focus on reducing leverage while we continue to invest in innovation to drive long-term growth.

我們仍致力於降低 2024 年的淨槓桿率，並將繼續努力實現 3.5 倍的中期目標淨槓桿率。正如您在 11 月發布的最新財報中看到的那樣，董事會批准了一項 5000 萬美元的股票回購計劃，我們預計該計劃將在未來幾週內開始。我們計劃保持靈活性並繼續專注於降低槓桿，同時繼續投資創新以推動長期成長。

Thanks, Alex. Let's open up the line for our analyst Q&A. Operator?

謝謝，亞歷克斯。讓我們打開分析師問答熱線。操作員？

(Operator Instructions)

（操作員說明）

Dan Perlin, RBC Capital Markets.

丹‧佩林 (Dan Perlin)，加拿大皇家銀行資本市場部。

Thanks. Good morning. I just wanted to touch on the -- kind of payback periods, so to speak, on the $50 million of in-year revenues. I appreciate the cadence commentary on the investments. I think that 60% of the $25 million will happen kind of the first half. The $50 million -- I mean, I guess this implies kind of a second half ramp, but it also seems to be a pretty quick turnaround. So I'm just wondering kind of the efficiencies that you're expecting from the sales team and maybe just -- maybe putting a finer point, is that something that we would see really ramp like aggressively in the fourth quarter? Or should we be thinking kind of third and maybe even before that?

謝謝。早安.我只是想談談 5000 萬美元的年收入的投資回收期。我很欣賞對投資的節奏評論。我認為 2500 萬美元中的 60% 將在上半年完成。5000 萬美元——我的意思是，我想這意味著下半年的成長，但這似乎也是一個相當快的轉變。所以我只是想知道您對銷售團隊的效率有何期望，也許只是——也許更準確地說，我們會在第四季度看到這種效率的大幅提升嗎？或者我們應該考慮第三種甚至更早的方法？

Okay. Well, I think you're right, Dan, that we do expect this to be a pretty quick payback. And obviously with $50 million this year and $100 million next year, the payback occurs somewhere within the 12 months of incurring the cost. So it's a no-brainer, quite frankly, from our perspective.

好的。嗯，我認為你是對的，丹，我們確實希望這會是一個相當快的回報。顯然，今年 5,000 萬美元，明年 1 億美元，投資回報將在產生成本後的 12 個月內完成。因此，坦白說，從我們的角度來看，這是理所當然的。

Yeah. Okay. And then just a follow-up on gross margins. I know you said there's going to continue to be a headwind there. Is there any way to kind of quantify or kind of help us with the pacing of that, maybe what that might look like in totality, given some of the moving parts? Thank you.

是的。好的。然後是毛利率的後續行動。我知道你說過那裡將繼續有逆風。有沒有什麼方法可以量化或幫助我們調整節奏，考慮到一些變化的部分，也許整體看起來是什麼樣子？謝謝。

So I think on the gross margin, look -- and I think we've said this before, we were very much focused on the [I'd say] revenue growth and EBITDA margin. As you see us moving into different verticals and different customer base, both in digital wallets, particularly in digital wallets, we could see and we have seen some deterioration in margin. It's really I would almost call it a [iterioration] that is really expanding our wallet capability significantly from where it was a few years ago. So that may continue.

所以我認為在毛利率方面，我想我們之前已經說過了，我們非常關注[我想說]收入增長和 EBITDA 利潤率。當你看到我們進入不同的垂直領域和不同的客戶群時，無論是數位錢包，特別是數位錢包，我們都可以看到利潤率下降。我真的幾乎會把它稱為[改進]，它確實比幾年前顯著擴展了我們的錢包功能。所以這種情況可能會持續下去。

But what we've also said if we will continue to focus on efficiencies in terms of SG&A cost to make sure that we continue to improve operating leverage and EBITDA margins. On the merchant solutions side, of course, we've already mentioned that what we really need to do is really ramp up the SMB direct channel, which is a higher margin channel than the third-party channel. We are working on this. As you could see right now, we still have a lot of work to do. And we will be reporting on this on a quarterly basis. And as you see that turnaround, you should see some improvements in the SMB margin, gross margin.

但我們也說過，如果我們將繼續關注 SG&A 成本方面的效率，以確保我們繼續提高營運槓桿和 EBITDA 利潤率。當然，在商家解決方案方面，我們已經提到，我們真正需要做的是真正擴大中小企業直接管道，這是一個比第三方管道利潤更高的管道。我們正在努力解決這個問題。正如您現在所看到的，我們還有很多工作要做。我們將每季對此進行報告。當你看到這種轉變時，你應該會看到中小企業利潤率、毛利率的一些改善。

Got it. Thank you.

知道了。謝謝。

Thank you.

謝謝。

David Togut, Evercore ISI.

大衛·托古特，Evercore ISI。

Thank you. Good morning. Could you discuss the drivers of a digital wallet take rate compression in the fourth quarter? And what are your expectations for digital wallet take rates for this year as a whole? Thank you.

謝謝。早安.您能否討論一下第四季度數位錢包利率壓縮的驅動因素？您對今年全年數位錢包的使用率有何預期？謝謝。

Yes, Alex, you want to go ahead?

是的，亞歷克斯，你想繼續嗎？

Yeah, sure, Bruce. As we've said, I think in our remarks, and as I just alluded to this right, we are -- we have a significant growth in our digital wallet segment, right? And we are reaccelerating that segment. We are looking at different products and are targeting different parts of the ecosystem to drive that growth. Some of those products -- and therefore, the simple answer is gross margin -- take rate deterioration is the product mix. But it's again, we see it as a really good story because what we really expanding is the use case for the digital wallet. But with some of those customers and some of those products, it does come with a little lower take rate.

是的，當然，布魯斯。正如我們所說，我認為在我們的演講中，正如我剛才提到的那樣，我們的數位錢包領域有了顯著的增長，對嗎？我們正在重新加速該領域的發展。我們正在尋找不同的產品，並針對生態系統的不同部分來推動成長。其中一些產品——因此，簡單的答案是毛利率——採用率惡化是產品組合。但我們再次認為這是一個非常好的故事，因為我們真正擴展的是數位錢包的用例。但對於其中一些客戶和其中一些產品來說，它的接受率確實要低一些。

Got it.

知道了。

Probably just to clarify for you, we're not seeing pricing pressure with our existing products. What we're seeing is, as Alex just said, us bringing new product to market at different price points, at different margin profiles. So when we look at our take rates on an apples to apples basis, we're seeing stability within our rates, but we're introducing new things at different price points and different margin profiles.

可能只是為了向您澄清，我們沒有看到現有產品的定價壓力。正如亞歷克斯剛才所說，我們看到的是，我們以不同的價格點、不同的利潤率將新產品推向市場。因此，當我們以同類為基礎查看我們的收取率時，我們發現我們的費率保持穩定，但我們正在以不同的價格點和不同的利潤率推出新產品。

Understood. Thanks for that clarification. And just as a follow-up, what are your 2024 expectations for unlevered free cash flow and then year-end 2024 leverage target?

明白了。感謝您的澄清。作為後續問題，您對 2024 年無槓桿自由現金流的預期以及 2024 年底槓桿目標是多少？

Again, what we are -- because of the buyback and because of the -- we're really focusing on optimizing our bank balance sheet as much as possible. It would include the buyback. It would include the leverage. We aren't really giving a target for 2024 in terms of the net leverage, but we continue to focus on reducing the net leverage. The midterm target, as we said, is 3.5 times, and we stand behind that target.

再說一次，我們現在的情況——因為回購，也因為——我們真正專注於盡可能優化我們的銀行資產負債表。這將包括回購。它將包括槓桿。我們並沒有真正給出 2024 年淨槓桿率的目標，但我們繼續專注於降低淨槓桿率。正如我們所說，中期目標是3.5倍，我們支持這個目標。

The expectations would be that our EBITDA increases. So I would expect our un-levered cash flow to continue to stay stable or maybe increase a bit from where it is now. But so overall, we continue to see a 2024 as a very strong cash generator here, where we are able to invest in our business, deleverage, and execute on the buyback.

我們的預期是 EBITDA 會增加。因此，我預計我們的無槓桿現金流將繼續保持穩定，或者可能比現在增加。但總的來說，我們仍然認為 2024 年是一個非常強大的現金產生器，我們能夠投資我們的業務、去槓桿化並執行回購。

Thank you.

謝謝。

Thank you, David.

謝謝你，大衛。

Scott Wurtzel, Wolfe Research.

史考特‧沃策爾，沃爾夫研究中心。

Thanks. Good morning, guys, and thank you for taking my questions here. I just wanted to start off on the SMB side of the business. You talked about introducing value-added services to your merchant base. And I know you're rolling out merchant wallet, but just wondering if you can maybe share some color on any of the other value-added services and products you could be introducing into ecosystem this year?

謝謝。早安，夥計們，謝謝你們在這裡提出我的問題。我只是想從中小企業方面開始。您談到了向您的商家群引入加值服務。我知道您正在推出商業錢包，但只是想知道您是否可以分享一些您今年可能引入生態系統的其他增值服務和產品的資訊？

Yes, Scott, good morning and thanks for the questions. Yeah, we're very excited about what is evolving with our SMB business -- our merchant business in total. So I think what you'll see us focus on are a lot of ancillary services around those businesses. So we're look at working capital partnerships that we're creating where we are really facilitating a third party opportunity for our merchants to access working capital.

是的，斯科特，早上好，謝謝你的提問。是的，我們對我們的中小企業業務（我們的整個商業業務）的發展感到非常興奮。因此，我認為您會看到我們關注的是圍繞這些業務的許多輔助服務。因此，我們正在研究我們正在創建的營運資金合作夥伴關係，我們真正為我們的商家提供獲得營運資金的第三方機會。

We have some PCI. We have some supplemental POS device program, that's being launched. So we have a lot of smaller programs that we're bringing to market around things that our merchants are asking for and how to help them run their business a little bit better. So we'll give a lot more color as we go through the year on the progress of these programs. But, early on, we're very bullish of the success of the programs that we're launching.

我們有一些 PCI。我們正在啟動一些補充 POS 設備計劃。因此，我們有很多較小的計劃，圍繞著我們的商家所要求的東西以及如何幫助他們更好地經營業務，將它們推向市場。因此，我們將在這一年中對這些計劃的進展提供更多的資訊。但是，在早期，我們非常看好我們正在啟動的計劃的成功。

Great. That's helpful. And just to follow up on the classic digital wallet segment and looks like you guys had some good success in this top of funnel campaign. I'm just wondering almost kind of where we are with that. Are there in terms of the two markets that you did it in? Is there still more room to go in those markets? And then do you have plans to expand this campaign to incremental markets going forward?

偉大的。這很有幫助。只是為了跟進經典的數位錢包部分，看起來你們在這個漏斗頂部的活動中取得了一些良好的成功。我只是想知道我們在這方面的進展如何。你們所做的這兩個市場有嗎？這些市場還有更多發展空間嗎？那麼您是否計劃將這項活動擴展到未來的增量市場？

Yeah, Scott, thank you for that as well. As we talked about last quarter and in the last meeting we had, we really were focused on centralized our marketing organization and bringing a higher discipline to what we were doing and focusing in on our consumer cost of acquisition and how we were going about it and modernizing the impact of our marketing efforts. And we've really started to do that. This is one proof point, we will continue to do these type of programs.

是的，斯科特，也謝謝你。正如我們在上個季度和上次會議中談到的那樣，我們確實專注於集中我們的行銷組織，並對我們正在做的事情實行更高的紀律，並專注於我們的消費者獲取成本以及我們的做法和使我們的行銷工作的影響現代化。我們已經真正開始這樣做了。這就是一個證明，我們會繼續做這類節目。

I love the program that we did when we launched our own tournament, and it was really a great partnership for us to do where 100,000 members within that community that we're sponsoring the e-sports tournament for. So these were our target customers. Every one of them had the opportunity to use whether our eCash product or even our wallet product.

我喜歡我們在推出自己的錦標賽時所做的計劃，對於我們來說，我們為社區內的 100,000 名會員贊助電子競技錦標賽，這確實是一個很好的合作夥伴關係。這些就是我們的目標客戶。他們每個人都有機會使用我們的 eCash 產品甚至我們的錢包產品。

So we're really bringing a more sophisticated approach to our marketing efforts, and we will absolutely be expanding these type of programs across our profile as we're moving forward. We're very excited about really maximizing the marketing funds that we have, not necessarily increasing them in aggregate at this point, but really getting a higher throughput on the spend that we have today.

因此，我們確實為我們的行銷工作帶來了更複雜的方法，隨著我們的前進，我們絕對會在我們的個人資料中擴展這些類型的計劃。我們非常高興能真正最大化我們擁有的行銷資金，目前不一定要增加它們的總量，但確實能在我們今天的支出上獲得更高的吞吐量。

Great, and very helpful. Thanks, guys.

太棒了，而且非常有幫助。多謝你們。

Andrew Harte, BTIG.

安德魯·哈特，BTIG。

Hey Bruce, you mentioned how the enterprise space had about 19% cross-sell. Can you just unpack that a bit further? How do you see that opportunity evolving in the year ahead? And maybe where were we a year ago on that cross-sell opportunity?

嘿 Bruce，您提到企業領域的交叉銷售比例約為 19%。能進一步解壓一下嗎？您如何看待這個機會在未來一年的發展？也許一年前我們在交叉銷售機會方面處於什麼位置？

Yeah, good morning, Andrew. As we came in now 18 months-plus ago, one of the things that I noted when I started here was that we had very little cross-sell because of the silos of the businesses that we had. It was really almost less than 1% opportunity there that we were executing on cross-selling products into our various existing customer base, those top 800 customers.

是的，早上好，安德魯。18 個月多前，當我們剛進入這裡時，我注意到的一件事是，由於我們的業務各自為政，我們幾乎沒有交叉銷售。我們向各種現有客戶群（前 800 名客戶）交叉銷售產品的機會實際上幾乎不到 1%。

So going from just a year ago less than 1%, 2% to 19% this year is a huge step forward, and it really underscores the point that I was trying to make a year ago that there was a great amount of opportunity for us to go in and sell our digital wallet customer that was their primary revenue stream with us. Go in and sell acquiring to them and start moving our eCash and digital wallet business into some of our existing merchant customers.

因此，從一年前的不到 1%、2% 到今年的 19%，這是一個巨大的進步，這確實強調了我一年前試圖表達的觀點，即我們有很多機會進入並出售我們的數位錢包客戶，這是他們與我們的主要收入來源。向他們出售收單業務，並開始將我們的電子現金和數位錢包業務轉移到我們現有的一些商家客戶。

So feel very good about the progress. I would expect that this is going to continue to do expand as we're moving forward, especially now that Nicole and her team are starting to ramp up with new products and we absolutely will be focused on selling into our existing base. So I think this is a lot of runway for us. We're very excited about the opportunity and really proud of Rob Gatto's team and what they've been able to do through '23. And now it's about scaling up and driving a better quality revenue stream for ourselves in '24 and '25.

所以對進展感覺非常好。我預計隨著我們的前進，這將繼續擴大，特別是現在妮可和她的團隊開始推出新產品，我們絕對會專注於向我們現有的基地銷售。所以我認為這對我們來說有很多跑道。我們對這個機會感到非常興奮，並對 Rob Gatto 的團隊以及他們在 23 年所做的事情感到非常自豪。現在我們的重點是在 24 世紀和 25 世紀擴大規模並為我們自己帶來更優質的收入來源。

Thanks. And then Alex, the comments on the guidance page about the gross margin headwinds, a function of mix. Is that more just merchant solutions outgrowth -- outpacing digital wallet on top line? Or is there anything you'd call out within each segment on kind of margin trends?

謝謝。然後亞歷克斯，指導頁面上關於毛利率逆風的評論，這是一個混合的函數。這是否只是商家解決方案的成長——在營收上超過了數位錢包？或者您在每個細分市場中是否有什麼關於利潤趨勢的內容？

It is all of those things. So it is absolutely merchant solution outpacing growth in digital wallet as a first thing. It is then inside merchant solution, our opportunity to be able to improve this margin by driving the growth faster in the direct segments versus indirect segment which you see right now, indirect is growing much faster. So that's obviously has an impact on the margin. And on the digital wallet is exactly, as I said, it's [based], it's the product mix as we expand the usage of the wallet and getting new customers and attacking new markets.

這就是所有這些事情。因此，這絕對是首先超越數位錢包成長的商業解決方案。然後，在商家解決方案內部，我們有機會透過推動直接細分市場的成長更快來提高利潤率，而不是您現在看到的間接細分市場，間接成長更快。所以這顯然對利潤率有影響。正如我所說，數位錢包是[基礎]，是我們擴大錢包的使用、獲得新客戶和進攻新市場時的產品組合。

Thanks, guys. Appreciate it.

多謝你們。欣賞它。

Thank you.

謝謝。

Timothy Chiodo, UBS.

提摩西‧奇奧多，瑞銀集團。

Great. Thank you for taking the question. A similar question around the ISO versus the direct channel in the US. Looking at the growth divergence there, can you just characterize some of the reasons for the growth divergence? Is it related to either gross add? Is it churn of the underlying business? Is it pricing? What are the reasons? Maybe it's a different product being sold direct versus through the ISO channel? What are the reasons why the growth is so divergent?

偉大的。感謝您提出問題。在美國，關於 ISO 與直接管道的類似問題。看看那裡的成長差異，您能否描述一下成長差異的一些原因？它與總添加有關嗎？是基礎業務的流失嗎？是定價嗎？原因是什麼？也許直接銷售的產品與透過 ISO 通路銷售的產品不同？到底是什麼原因導致成長如此分化呢？

Yes, Tim, good morning and thank you for dialing in and asking a question. So when we look at the SMB channel, there really is a couple of things that are going on there. One on direct book versus our ISO channel, there is -- the underlying merchant is a much smaller merchant in the direct book than in the ISO book. So the ISO book is about four times larger merchant than what we experience in the direct book.

是的，蒂姆，早上好，感謝您撥打電話並提出問題。因此，當我們查看 SMB 頻道時，確實發生了一些事情。直接預訂與我們的 ISO 管道相比，直接預訂中的底層商家比 ISO 預訂中的商家小得多。因此，ISO 書籍的商家規模大約是我們在直接書籍中體驗到的規模的四倍。

Our direct team is actually selling very well. Those smaller merchants, just churn at a higher rate candidly, than the other. We're not experiencing much pricing pressure. We see good stability in our take rates across the board, both in the ISO and in our direct book. I would say there is a little bit of product difference between the two in the direct book because we're selling it to a smaller merchant in the direct book. They're not looking for necessarily the same things that the larger SMB client is, that we're servicing through our ISO channel.

我們的直接團隊實際上賣得很好。坦白說，那些規模較小的商家的流失率比其他商家更高。我們沒有遇到太大的定價壓力。我們看到，無論是在 ISO 中還是在我們的直接預訂中，我們的整體採用率都保持良好的穩定性。我想說，直接預訂中的兩者之間存在一點產品差異，因為我們在直接預訂中將其出售給較小的商家。他們所尋求的東西不一定與我們透過 ISO 管道提供服務的大型 SMB 客戶相同。

So there's a little bit of each of those things kind of going on within the profile. We feel good about our ability to correct the direct channel. Certainly as we expand into new markets, each state gives us great opportunity to adjust who we're going after, where we're going after, the type of merchants that we want, to help mitigate that attrition and churn on the direct side.

因此，在個人資料中，每一項都發生了一些事情。我們對糾正直接管道的能力感到滿意。當然，當我們擴展到新市場時，每個州都給了我們很好的機會來調整我們要追求的物件、我們要追求的地方、我們想要的商家類型，以幫助減少直接方面的消耗和流失。

Excellent. Thank you. As a related follow-up on the ISO side. So you mentioned that the revenue take rates are stable across both the direct and the ISO channel. Could you talk a little bit about the trends in the commissions being paid out to ISOs maybe over the last 5 to 10 year period, how much that might have changed, and if there's been any change at all in the last call it year two or three years?

出色的。謝謝。作為ISO方面的相關後續。您提到直接通路和 ISO 通路的收入取得率都很穩定。您能否談談過去 5 到 10 年期間支付給 ISO 的佣金的趨勢，可能發生了多少變化，如果最後有任何變化，請稱之為第二年或三年？

Yes, Tim, I would say there's been little to no change in the last two years that I've seen on the rates that we're paying out on the ISO channel. Certainly, as you know, in this industry as well as [IV], that ISO channel has changed quite dramatically over the last 10 years.

是的，提姆，我想說的是，在過去兩年中，我們在 ISO 管道上支付的費率幾乎沒有變化。當然，正如您所知，在這個行業以及 [IV] 中，ISO 管道在過去 10 年中發生了相當大的變化。

As far as what the percentage payout residuals are. Our book is not really any different than anybody else is. They escalated over time, over -- going back five, seven years ago, and have been relatively stable in the last couple of years here. It's a higher percentage so it really impacts the margin of that book.

至於支付殘差的百分比是多少。我們的書與其他書並沒有什麼不同。隨著時間的推移，它們不斷升級，可以追溯到五、七年前，並且在過去幾年中相對穩定。這是一個較高的百分比，因此它確實影響了該書的利潤。

Thank you, Bruce. Yes, exactly would have thought more stable more recently, but over the longer term might have stepped but completely checks out. Thank you so much for the time.

謝謝你，布魯斯。是的，最近確實會認為更穩定，但從長遠來看，可能會有所進步，但會完全檢查出來。非常感謝您抽出時間。

Thank you, Tim.

謝謝你，提姆。

(Operator Instructions)

（操作員說明）

Jamie Friedman, SIG.

傑米·弗里德曼，SIG。

Hey, good morning and congratulations on 2023. It's obviously a lot of hard work here.

嘿，早安，祝賀 2023 年。顯然這裡需要付出很多努力。

Thanks, Jamie.

謝謝，傑米。

I want to ask you first about the digital wallet. So I'm looking at slide 8, and I was wondering if you could help us think through how you think through the inputs to the revenue flywheel? Is it the average transaction per user? Is it the growth in users, or is it the ARPU? What would you advise if we're trying to think through those inputs?

我想先問你關於數位錢包的問題。所以我正在看投影片 8，我想知道您是否可以幫助我們思考您如何思考收入飛輪的投入？是每個用戶的平均交易量嗎？是用戶的成長，還是ARPU？如果我們嘗試考慮這些意見，您有什麼建議？

Yeah, Jamie. So me personally, I focus on the ARPU number, it's kind of where I gravitate in. As I try to look at my own litmus test of whether things are going well or not going well. I really kind of dial in on that, then I really click into our three-month active or/and consumer acquisition is really where I've been focused on as I look at the business and how we continue to turn this business around.

是的，傑米。所以就我個人而言，我關注 ARPU 數字，這是我所關注的地方。當我試著審視自己的試金石時，事情是否會順利。我真的有點參與其中，然後我真的點擊了我們三個月的活躍或/和消費者獲取確實是我在研究業務以及我們如何繼續扭轉這項業務時一直關注的地方。

So those are really the metrics that I follow. I think as we think about '24, we'll continue to evolve some of these slides so that you guys can track more easily our progress in this digital wallet side of the business, the consumer side of the business, especially as we get into eCash as well and the continued turnaround of that business as we move into '24. So we'll be probably introducing some new slides help you guys as we're moving forward.

所以這些確實是我遵循的指標。我認為，當我們考慮 24 世紀時，我們將繼續改進其中一些幻燈片，以便你們可以更輕鬆地追蹤我們在業務的數位錢包方面、消費者方面的進展，特別是當我們進入eCash 也是如此，隨著我們進入24 年，該業務的持續好轉。因此，我們可能會介紹一些新的幻燈片，以幫助你們繼續前進。

And then I did want to ask about the merchant take rate. So just looking at the appendix and it did increase to 80 basis points. Alex, I think you alluded to some of the inputs there. What should we be contemplating as we model because we model volume with the take rate to get to revenue. So how should we be thinking about merchant take rates in '24?

然後我確實想問商家的拿貨率。所以只要看一下附錄，它確實增加到了 80 個基點。亞歷克斯，我認為你提到了那裡的一些意見。我們在建模時應該考慮什麼，因為我們用成交量來建模以獲得收入。那我們該如何考慮 24 年的商家收取率呢？

Yes, I think you're going to see it to be stable where we are. It's I think we're having an opportunity to introduce some new product into the merchant side. We feel good. We're not seeing a tremendous amount of have pricing pressure in the SMB space. And in the e-comm space, we're doing very well. I think as we have mentioned previously, we've had really strong growth in our e-com book. We feel like that will continue and feel very solid about the merchant business.

是的，我想你會看到我們現在的情況是穩定的。我認為我們有機會向商家引入一些新產品。我們感覺很好。我們沒有看到中小企業領域有巨大的定價壓力。在電子商務領域，我們做得非常好。我認為正如我們之前提到的，我們的電子圖書成長非常強勁。我們認為這種情況將會持續下去，並且對商業業務感到非常踏實。

And the only thing that I would add is that portfolio optimization that we've talked about as part of our incremental $25 million investments, well some of that will also go to support that take rate stability.

我唯一要補充的是，我們已經討論過投資組合優化，作為我們增量 2500 萬美元投資的一部分，其中一些也將用於支持利率穩定。

Got it. Thank you, both. I'll jump back in the queue.

知道了。謝謝你們倆。我會跳回到隊列中。

Thank you, Jamie.

謝謝你，傑米。

Thank you. We have at the end of our question-and-answer session. I would now like to turn the floor back over to Bruce Lowthers for closing remarks.

謝謝。我們的問答環節即將結束。現在我想請布魯斯·勞瑟斯 (Bruce Lowthers) 致閉幕詞。

Thank you. I just want to tell everyone, I appreciate how much work goes into these quarterly calls. Thank you for joining us today. I want to thank Kirsten and her team that you see with us this morning for helping us pull all this together. Really appreciate their hard work in each and every one of these quarterly calls that we have.

謝謝。我只想告訴大家，我很感激這些季度電話會議所做的工作。感謝您今天加入我們。我要感謝今天早上你們看到的克斯汀和她的團隊幫助我們把這一切整合在一起。非常感謝他們在我們每一次季度電話會議中所做的辛勤工作。

I also wanted to just thank our team for a great year. We really appreciate all the work in this transformation year, and we're very excited about 2024. So we'll you see in a couple of months. Thank you very much.

我還想感謝我們的團隊度過了美好的一年。我們非常感謝這一轉型年中所做的所有工作，並且對 2024 年感到非常興奮。所以我們會在幾個月後看到。非常感謝。

Thank you. That does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

謝謝。今天的電話會議到此結束。我們感謝您的參與。此時您可以斷開線路。享受你一天剩下的時間。