Paysafe Ltd (PSFE) 2024 Q3 法說會逐字稿

Ladies and gentlemen, greetings, and welcome to the Paysafe Third Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.

女士們、先生們，大家好，歡迎參加 Paysafe 2024 年第三季財報電話會議。此時，所有參與者都處於只聽模式。正式演講後將舉行簡短的問答環節。（操作員指示）謹此提醒，本次會議正在錄製中。

I would now like to hand the call over to Kirsten Nielsen, Head of Investor Relations. Please go ahead.

我現在想將電話轉給投資者關係主管克斯汀尼爾森 (Kirsten Nielsen)。請繼續。

Thank you and welcome to Paysafe's earnings conference call for the third quarter of 2024. Joining me today are Bruce Lowthers, Chief Executive Officer; John Crawford, Chief Financial Officer, and Alex Gersh.

感謝並歡迎參加 Paysafe 2024 年第三季的收益電話會議。今天與我一起出席的是執行長 Bruce Lowthers；財務長約翰·克勞福德 (John Crawford) 和亞歷克斯·格甚 (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 report. These statements reflect management's current assumptions and expectations and are subject to factors that could cause actual results to differ materially from those 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 to 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 non-GAAP measures and reconciliations to the most direct comparable GAAP financial measures in today's press release and in the appendix of this presentation which are all available in the Investor Relations section of our website.

本次電話會議期間的前瞻性陳述僅涉及本次電話會議的日期，我們不承擔更新這些陳述的義務。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非GAAP 衡量標準以及與最直接可比GAAP 財務衡量標準的調節的更多信息，這些信息均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。

Thanks, Kirsten, and thank you all for joining us today. Before I discuss our fantastic quarter, I want to start by saying that our hearts and thoughts are with our colleagues, customers and partners in Florida and the Southeastern US, who were impacted by the recent hurricanes. And I want to especially thank our business continuity team for their efforts to quickly support our employees who live in the affected regions.

謝謝克爾斯滕，也謝謝大家今天加入我們。在討論我們出色的季度之前，我首先想說的是，我們的心和想法與佛羅裡達州和美國東南部受到最近颶風影響的同事、客戶和合作夥伴同在。我要特別感謝我們的業務連續性團隊為快速支持生活在受影響地區的員工所做的努力。

Next, I'm excited to welcome John Crawford, our new CFO. As you read in our press release, John brings with him more than 25 years of financial leadership experience with a strong background in the payments industry. I am confident that John's partnership will be extremely valuable as we move into the Paysafe's next phase of growth. I'll ask John to say hello and share his initial thoughts towards the end of today's call.

接下來，我很高興歡迎我們的新任財務長約翰·克勞福德 (John Crawford)。正如您在我們的新聞稿中所讀到的那樣，John 擁有超過 25 年的財務領導經驗，在支付行業擁有深厚的背景。我相信，隨著我們進入 Paysafe 的下一階段的發展，約翰的合作關係將非常有價值。在今天的電話會議結束時，我會請約翰打個招呼並分享他的初步想法。

We sincerely thank Alex for the work he's done over the past two years as CFO. I've really enjoyed working with him and he's been instrumental partner in stabilizing the business and improving our financial performance. Alex will stay with us through the end of the year, working closely with John to ensure a smooth transition.

我們衷心感謝 Alex 在過去兩年擔任財務長期間所做的工作。我非常喜歡與他合作，他在穩定業務和改善我們的財務表現方面發揮了重要作用。亞歷克斯將與我們在一起直到今年年底，與約翰密切合作，以確保順利過渡。

Now let's review our Q3 results. We have continued our momentum accelerating our higher quality revenue growth from the prior year, with revenue increasing 8% year-over-year or 7% on a constant currency basis to $427 million with Merchant Solutions growing 11% and Digital Wallets growing 4%, slightly offset by lower interest revenue.

現在讓我們回顧一下第三季的結果。與前一年相比，我們持續維持加速高品質營收成長的勢頭，營收年增8%，以固定匯率計算成長7%，達到4.27 億美元，其中商家解決方案成長11%，數位錢包成長4% ，利息收入下降略有抵銷。

Adjusted EBITDA of $117.8 million was up 1% year-over-year and our adjusted EBITDA margin expanded 70 basis points in the third quarter compared to the first half of 2024, while making planned incremental investments as well as actions to reduce risk in the business.

調整後 EBITDA 為 1.178 億美元，年增 1%，第三季調整後 EBITDA 利潤率比 2024 年上半年擴大了 70 個基點，同時進行了計劃的增量投資以及降低業務風險的行動。

Additionally, we continue to focus on net leverage, reducing 8% from Q3 2023 to 4.7 times at the end of Q3 2024. Overall, our third quarter and year-to-date results highlight a strong year with our continued execution on our strategic priorities and our focus on delivering higher quality revenue growth, strengthening the business and progressively reducing net leverage.

此外，我們繼續關注淨槓桿率，從 2023 年第三季的 8% 降至 2024 年第三季末的 4.7 倍。整體而言，我們第三季和年初至今的業績突顯了我們持續執行策略重點、專注於實現更高品質的營收成長、加強業務和逐步降低淨槓桿率的強勁表現。

With that said, we are pleased to reaffirm our full year financial outlook for 2024 with revenue growth in the expected range of 7% to 8% and adjusted EBITDA margin in the range of 27.5% to 28%.

話雖如此，我們很高興重申 2024 年全年財務展望，預計營收成長在 7% 至 8% 範圍內，調整後 EBITDA 利潤率在 27.5% 至 28% 範圍內。

Let's turn to slide 4 for an update on our four strategic priorities for 2024. I remain pleased with the progress that we've made this year, as all of our initiatives remain on track or ahead of expectations. Let's start with the expansion of our sales capabilities. During the quarter, we booked 83 enterprise wins, which was up meaningfully from last year, demonstrating our continued momentum in cross-selling and winning new clients.

讓我們轉向投影片 4，了解 2024 年四大策略重點的最新情況。我對我們今年的進展仍然感到滿意，因為我們所有的舉措都保持在正軌上或超出了預期。讓我們從擴大我們的銷售能力開始。本季度，我們贏得了 83 家企業，比去年大幅增加，展現了我們在交叉銷售和贏得新客戶方面的持續勢頭。

On our hiring initiative year-to-date, we've welcomed 170 new sales reps, reaching our target ahead of schedule. As a reminder, this is a critical initiative to expand our reach and sales capabilities across both enterprise merchants and SMB merchants.

在今年迄今的招募計畫中，我們已經迎來了 170 名新銷售代表，提前實現了我們的目標。謹此提醒，這是一項重要舉措，旨在擴大我們在企業商家和中小企業商家中的影響力和銷售能力。

Second, on our portfolio optimization, we continue to perform better than we expected, supported by our actions to grow the direct sales team, and enhance our products with value added solutions and partnerships. Year-to-date, we've generated over $40 million revenue related to these initiatives, ahead of schedule to reach our target of $50 million for the year.

其次，在我們的產品組合優化方面，在我們發展直銷團隊的行動的支持下，我們的表現繼續好於我們的預期，並透過增值解決方案和合作夥伴關係增強我們的產品。年初至今，我們已透過這些措施創造了超過 4,000 萬美元的收入，提前實現了今年 5,000 萬美元的目標。

Our investments in these initiatives are tracking to our expectations with some remaining spend expected in Q4. Our third priority for the year was to revamp our consumer acquisition efforts. Our marketing team continues to utilize new market testing strategies with the goal of building a scalable blueprint to drive user growth.

我們對這些措施的投資符合我們的預期，預計第四季會有一些剩餘支出。我們今年的第三個優先事項是改善我們的消費者獲取工作。我們的行銷團隊繼續利用新的市場測試策略，目標是建立可擴展的藍圖來推動用戶成長。

Beyond our traditional acquisition efforts, we're also expanding our reach to new users through B2B2C partnerships. Last quarter, we announced a collaboration with Revolut to bring our e-cash service to Revolut's 10 million UK customers. Through this relationship, we're enabling their customers to deposit and withdraw cash seamlessly to and from their bank accounts at any of our 12,000 point-of-sale partner locations in the UK.

除了傳統的收購工作之外，我們還透過 B2B2C 合作夥伴關係擴大我們對新用戶的影響力。上個季度，我們宣布與 Revolut 合作，為 Revolut 的 1,000 萬英國客戶提供我們的電子現金服務。透過這種關係，我們使他們的客戶能夠在英國 12,000 個銷售點合作夥伴地點的任何一個銀行帳戶中無縫存入和提取現金。

Within the first three months, we've transacted with 28,000 unique Revolut consumers and we expect this to increase over time through further adoption in the UK, along with expansion to other markets.

在前三個月內，我們已經與 28,000 名獨特的 Revolut 消費者進行了交易，我們預計隨著時間的推移，透過在英國的進一步採用以及擴展到其他市場，這一數字將會增加。

We look forward to launching a similar collaboration with a marquee client in the coming months. Finally, while still relatively small numbers, our revenue generated from new product introductions continues to be up significantly compared to last year, reflecting our sharpened focus on innovation and consumer experience.

我們期待在未來幾個月與大客戶進行類似的合作。最後，雖然數量仍然相對較少，但我們透過新產品推出產生的收入與去年相比繼續大幅增長，反映出我們對創新和消費者體驗的更加關注。

Turning to our Merchant Business on slide 5. We saw solid performance led by double-digit growth in e-commerce, which represents about 15% of our merchant portfolio by revenue. North American iGaming revenue grew over 50%, reflecting merchant wins in the prior year and industry growth.

轉向幻燈片 5 上的商業業務。我們看到了電子商務兩位數成長帶來的穩健業績，以收入計算，電子商務約占我們商家組合的 15%。北美 iGaming 收入成長超過 50%，反映了上一年商家的勝利和行業的成長。

We also continue to see strength in our cross-selling efforts. Out of the 83 enterprise deals booked in Q3, 28% of those were with existing clients, and our net revenue retention with enterprise merchants remains above 100%. Billable MIDs were down slightly in Q3, mainly reflecting our focus on the ideal customer profiles and derisking the portfolio.

我們也繼續看到交叉銷售努力的優勢。在第三季預訂的 83 筆企業交易中，其中 28% 是與現有客戶簽訂的，我們與企業商家的淨收入留存率仍然高於 100%。第三季可計費 MID 略有下降，主要反映了我們對理想客戶檔案和降低投資組合風險的關注。

Revenue per new merchant was up double-digits and the SMB direct book grew 5%, reflecting the benefit of our investments to optimize the portfolio and our focus on driving stickier merchant relationships with greater lifetime value.

每個新商家的營收成長了兩位數，中小企業直接預訂成長了5%，這反映出我們為優化產品組合而進行的投資所帶來的好處，以及我們致力於透過更大的終身價值推動更牢固的商戶關係。

Turning to Digital Wallets on slide 6. In Q3, we saw transactions per active user grow 16% year-over-year, with positive trends across all products and average revenue per user grew 5%, supported by product initiatives and the ramp-up of merchants onboarded in 2023.

轉向幻燈片 6 上的數位錢包。第三季度，我們看到每個活躍用戶的交易量年增16%，所有產品都呈現正面趨勢，在產品計劃和2023 年入駐商家數量增加的支持下，每個用戶的平均收入增長了5% 。

This marks the seventh consecutive quarter of year-over-year growth for both metrics. We acquired 1.3 million users in the quarter, slightly up from the 1.2 in Q2 and stable year-over-year. Our active user base was 7 million and consumer acquisition cost also stable at approximately $17 in Q3.

這標誌著這兩個指標連續第七個季度年增。本季我們獲得了 130 萬用戶，略高於第二季的 1.2 萬人，較去年同期穩定。第三季度，我們的活躍用戶群為 700 萬，消費者獲取成本也穩定在 17 美元左右。

Again, we're seeing stability here with active users, along with improvement in the user engagement and experience. As I touched on earlier, we continue to improve our consumer acquisition strategies, while targeting a broader consumer base and enhancing our wallet platform to offer scalable model that supports sustainable growth.

我們再次看到活躍用戶的穩定性以及用戶參與度和體驗的改善。正如我之前提到的，我們繼續改進我們的消費者獲取策略，同時瞄準更廣泛的消費者基礎並增強我們的錢包平台，以提供支援永續成長的可擴展模型。

With that, I'll ask Alex to review the Q3 results in more detail.

接下來，我將請 Alex 更詳細地查看第三季的結果。

Thank you, Bruce. Let's move to slide 8 for a summary of our third quarter results. Total volume increased 7% year-over-year to $37.5 billion. Total revenue grew 8% to $427.1 million or 7% on a constant currency basis.

謝謝你，布魯斯。讓我們轉到第 8 張投影片來總結我們第三季的業績。總成交量較去年同期成長 7%，達到 375 億美元。總營收成長 8%，達到 4.271 億美元，以固定匯率計算成長 7%。

Revenue growth reflects strong performance from our 2023 sales cohort, portfolio optimization and product initiatives. This was partly offset by a $3 million headwind from interest revenue.

營收成長反映了我們 2023 年銷售群體、產品組合優化和產品計畫的強勁表現。這被利息收入 300 萬美元的逆風部分抵銷。

Adjusted EBITDA was $117.8 million for the quarter, an increase of 1% year-over-year, while adjusted EBITDA margin was 27.6%, a decline of 170 basis point, primarily reflecting the incremental investment as well as certain client exits related to derisking the portfolio.

本季調整後 EBITDA 為 1.178 億美元，年成長 1%，調整後 EBITDA 利潤率為 27.6%，下降 170 個基點，主要反映了增量投資以及與降低風險相關的某些客戶退出。

As Bruce mentioned, our initiatives remain on track and we expect to have a continued investment activity into Q4. On an LTM basis, unlevered free cash flow declined 3% to $318.7 million mainly due to timing and tax related items and reflecting a 68% conversion rate, which is in line with our expected conversion range.

正如布魯斯所提到的，我們的舉措仍在按計劃進行，我們預計第四季將繼續進行投資活動。以 LTM 計算，無槓桿自由現金流下降 3%，至 3.187 億美元，主要是由於時間安排和稅務相關項目，反映了 68% 的轉換率，這符合我們預期的轉換範圍。

Adjusted net income was $31.4 million and adjusted EPS was $0.51 per share, down from $0.57 in the third quarter of last year. This mainly reflects an increase in our adjusted effective tax rate, which was 35% in Q3, primarily due to the recognition of BEAT tax expense in the US totalling $3.5 million related to growth in the US and disbursements to non-US entity.

調整後淨利為 3,140 萬美元，調整後每股收益為 0.51 美元，低於去年第三季的 0.57 美元。這主要反映了我們調整後的有效稅率的增加，第三季為 35%，主要是由於確認了與美國增長和向非美國實體支付相關的美國 BEAT 稅收費用總計 350 萬美元。

This includes roughly $2 million of catch-up attributable to prior periods. Excluding this catch-up, the rate would have been approximately 30%. Going forward, we expect an adjusted ETR in the range of 26% to 30%. These increases were partly offset by lower interest expense, reflecting lower debt and interest rates.

其中包括約 200 萬美元的前期費用。排除這一追趕，該比率約為 30%。展望未來，我們預計調整後的 ETR 將在 26% 至 30% 的範圍內。這些成長部分被利息支出下降所抵消，反映出債務和利率下降。

Let's move to slide 9 to discuss the segment results. Starting with Merchant Solutions, volume increased 8% year-over-year to $32 billion and revenue increased 11% to $241.1 million. Growth was driven by strong double-digit growth within our e-commerce business led by iGaming.

讓我們轉到投影片 9 來討論分段結果。從 Merchant Solutions 開始，銷量年增 8%，達到 320 億美元，營收成長 11%，達到 2.411 億美元。成長是由 iGaming 主導的電子商務業務強勁的兩位數成長所推動的。

The remainder of the Merchant segment grew 8% year-over-year, reflecting our strategic initiatives to expand our sales capabilities and optimize the portfolio. Adjusted EBITDA was $52.6 million, a decline of 8%, reflecting continued investment in our 2024 initiatives and in our actions to derisk the portfolio as we have discussed.

商家業務的其餘部分年增 8%，反映了我們擴大銷售能力和優化產品組合的策略性舉措。調整後 EBITDA 為 5,260 萬美元，下降 8%，反映出我們對 ​​2024 年計劃以及我們所討論的降低投資組合風險的行動的持續投資。

Turning to the Digital Wallet on slide 10, volume increased 5% to $5.9 billion and revenue increased 4% to $190.9 million primarily driven by products and sales initiatives, along with the solid growth from Merchant onboarded last year, partially offset by lower interest revenue. Foreign exchange impact were immaterial to the segment growth relate in Q3. Adjusted EBITDA was $84.1 million, an increase of 5%, while adjusted EBITDA margin expanded 40 basis points.

轉向幻燈片10 上的數位錢包，銷量增長5%，達到59 億美元，收入增長4%，達到1.909 億美元，這主要是由產品和銷售計劃以及去年商家的穩健增長推動的，但部分被利息收入下降所抵消。外匯影響對第三季的細分市場成長並不重要。調整後 EBITDA 為 8,410 萬美元，成長 5%，調整後 EBITDA 利潤率擴大 40 個基點。

Turning to slide 11, we continue to strengthen our balance sheet and focus on disciplined capital allocation. At the end of the quarter, total debt was $2.4 billion and net debt decreased by $39 million from the second quarter.

轉向投影片 11，我們繼續強化資產負債表並專注於嚴格的資本配置。截至本季末，總負債為 24 億美元，淨負債較第二季減少 3,900 萬美元。

Our net leverage ratio further improved to 4.7 times compared to 5.1 times in Q3 of 2023. As a reminder, we have approximately 25 million remaining in our share repurchase program. We remain confident that our solid cash flow generation will enable us to continue investing in the business, while also deleveraging and returning capital to the shareholders.

我們的淨槓桿率從 2023 年第三季的 5.1 倍進一步改善至 4.7 倍。提醒一下，我們的股票回購計畫還剩約 2500 萬股。我們仍然相信，我們穩定的現金流產生將使我們能夠繼續投資業務，同時去槓桿化並將資本回饋給股東。

Moving to full year outlook on slide 12. Based on our strategic progress and results-to-date, we are maintaining our revenue and adjusted EBITDA guidance for 2024, which we have updated on our last earnings call. Just to reiterate, our guidance reflects full year reported revenue to be in a range of $1.713 billion to $1.729 billion which is higher than our initial 2024 guidance provided at the beginning of the year.

前往幻燈片 12 上的全年展望。根據我們迄今為止的策略進展和業績，我們將維持 2024 年的收入和調整後的 EBITDA 指引，我們在上次財報電話會議上更新了這項指引。重申一下，我們的指導反映了全年報告收入在 17.13 億美元至 17.29 億美元之間，高於我們年初提供的 2024 年初始指引。

We continue to expect adjusted EBITDA to come in between $471 million to $484 million reflecting adjusted EBITDA margin between 27.5% to 28%. I'll note that the Euro to USD exchange rate averaged 1.1 for Q3 and approximately 1.09 quarter-to-date in Q4 and has recently trended lower.

我們仍預期調整後 EBITDA 將在 4.71 億美元至 4.84 億美元之間，反映調整後 EBITDA 利潤率在 27.5% 至 28% 之間。我要指出的是，第三季歐元兌美元匯率平均為 1.1，第四季迄今約為 1.09，並且最近呈現走低趨勢。

As a reminder, given our geographical mix, every 1% weakening of the Euro versus the US dollar has an unfavourable impact of approximately $6 million to $7 million on revenue annualized. Lastly, I want to reiterate that we continue to expect our net leverage to be between 4.6 times and 4.7 times at the end of the year. So we've achieved that a quarter ahead of schedule.

提醒一下，考慮到我們的地理結構，歐元兌美元每貶值 1%，就會對年化收入產生約 600 萬至 700 萬美元的不利影響。最後，我想重申，我們仍然預期年底淨槓桿率在4.6倍至4.7倍之間。所以我們比原計劃提前了一個季度實現了這個目標。

And finally, I want to welcome John and also express my gratitude to my colleagues at Paysafe. Through a collective effort, we were able to improve our financial performance while reducing debt and leverage. I am grateful for the opportunity I've had to contribute to these stronger results and the company's broader transformation.

最後，我要歡迎 John，並向 Paysafe 的同事表示感謝。透過集體努力，我們能夠改善財務業績，同時減少債務和槓桿。我很感激有機會為這些更強勁的業績和公司更廣泛的轉型做出貢獻。

Now, I'll turn the call over to John to say a few words.

現在，我將把電話轉給約翰說幾句話。

Thank you, Alex, and I'll be brief. Since coming on board, I've had the opportunity to meet our teams across multiple locations. And I'm impressed with their dedication and drive to succeed. I've been following this business from the outside for many years and knew it had very interesting assets combined with attractive end markets. Now I can add in the quality of the people and that's a great formula for success.

謝謝你，亞歷克斯，我會長話短說。自從加入以來，我有機會與我們多個地點的團隊見面。他們的奉獻精神和追求成功的動力給我留下了深刻的印象。我多年來一直從外部關注這家企業，知道它擁有非常有趣的資產和有吸引力的終端市場。現在我可以增加人員的素質，這是成功的一個很好的公式。

A few areas of opportunity stand out to me. And these early observations will help shape my priorities as we close out this year and prepare for next year and beyond. First, we've got too many systems and we have the ability to achieve meaningful efficiencies there.

有幾個領域的機會對我來說很突出。當我們結束今年並為明年及以後做準備時，這些早期觀察將有助於確定我的優先事項。首先，我們有太多的系統，我們有能力在其中實現有意義的效率。

Second, I believe we can improve internal capital allocation to generate more value for our customers and better returns for Paysafe. Finally, I will focus on cost discipline as we continue to scale and drive margin.

其次，我相信我們可以改善內部資本配置，為我們的客戶創造更多價值，為 Paysafe 帶來更好的回報。最後，隨著我們繼續擴大規模並提高利潤率，我將專注於成本控制。

To wrap up, I am thrilled to partner with Bruce and the team to build upon the progress to date and to unlock new opportunities to drive growth and operating leverage. And with that, I will turn the call back over to Bruce.

最後，我很高興與 Bruce 和團隊合作，在迄今為止的進展的基礎上再接再厲，並釋放新的機會來推動成長和營運槓桿。這樣，我會將電話轉回布魯斯。

Thank you, John, and Alex. Our performance throughout 2024, including 8% revenue growth year-to-date showcases continued execution on our priorities and our focus on delivering higher quality, sustainable revenue growth.

謝謝約翰和亞歷克斯。我們 2024 年全年的業績，包括年初至今 8% 的收入成長，顯示我們繼續執行我們的優先事項，並專注於實現更高品質、可持續的收入成長。

At the same time, we're investing in our future and progressively reducing net leverage. I remain highly confident that we are taking the right actions to drive continued momentum in 2025 and beyond. I want to thank everyone on the Paysafe team for their persistent dedication and hard work throughout this turnaround.

同時，我們正在投資未來並逐步降低淨槓桿。我仍然非常有信心，我們正在採取正確的行動，以推動 2025 年及以後的持續發展勢頭。我要感謝 Paysafe 團隊中的每個人在整個轉變過程中堅持不懈的奉獻和辛勤工作。

While we have more work to do, our progress has been remarkable over the last couple of years. And now as we continue to focus on getting better each quarter, we have a clear and exciting path to the next chapter of our journey. We are making our own weather.

雖然我們還有更多工作要做，但過去幾年我們已經取得了顯著的進步。現在，隨著我們繼續專注於每季變得更好，我們已經有了一條清晰而令人興奮的道路，通往我們旅程的下一個篇章。我們正在創造我們自己的天氣。

With that, we will open the line for your questions.

這樣，我們將開通您的提問熱線。

Thank you. Ladies and gentlemen, we will now be conducting a question-and-answer session. (Operator Instructions) Andrew Harte, BTIG.

謝謝。女士們、先生們，我們現在將進行問答環節。（操作員說明）Andrew Harte，BTIG。

Hey, thanks. Good morning and welcome, John. Excited to work with you going forward and good luck, Alex. Thanks for all the help and support. Bruce, you talked about the portfolio optimization efforts being ahead of schedule, including the $50 million of revenue benefit this year. I know in the past we talked about kind of those same efforts should yield about $100 million benefit in 2025.

嘿，謝謝。早上好，歡迎光臨，約翰。很高興能與您一起前進，祝您好運，亞歷克斯。感謝大家的幫忙與支持。Bruce，您談到了投資組合優化工作提前完成，包括今年 5000 萬美元的收入收益。我知道過去我們談到同樣的努力應該在 2025 年產生約 1 億美元的效益。

So is that still the case? How should we be thinking about some of those portfolio optimization efforts and the revenue contribution next year? And kind of what has been the key to be ahead of schedule to-date?

那麼現在還是這樣嗎？我們應該如何考慮明年的一些投資組合優化工作和收入貢獻？到目前為止，提前完成計畫的關鍵是什麼？

Yes, Andrew, look, thanks for dialling in and joining us this morning. Look, we feel like we're making great progress against the four initiatives. I think, as we said in the prepared remarks, we're on track or ahead with each of them. Each of those have kind of a little bit different spin on it. But to your question specifically on the $50 million we're trending a little bit positive there against that number as we outlined. When we calendarize that for next year, we see really solid growth with that.

是的，安德魯，謝謝您今天早上撥打我們的電話並加入我們。看，我們感覺我們在這四項舉措方面取得了巨大進展。我認為，正如我們在準備好的發言中所說，我們正在步入正軌或領先於他們每個人。每一個都有一點不同的旋轉。但對於你提出的特別是關於 5000 萬美元的問題，我們的趨勢相對於我們概述的這個數字有點積極。當我們將其安排到明年時，我們會看到真正的穩健成長。

So we have really excellent, as we sit here today, we have excellent visibility into revenue growth and accelerating EBITDA margins and reducing our net leverage as we kind of move into '25. I don't want to get ahead of ourselves. Q4 is usually our next year discussion of kind of where we're going. But now today we have really good visibility unlike years past as to kind of what the outcomes will be. So we feel very good about that. I think the other thing that we talked a little bit about is the hiring.

因此，當我們今天坐在這裡時，我們對收入成長和 EBITDA 利潤率加速成長以及隨著我們進入 25 年而降低淨槓桿率有很好的了解。我不想超越自己。第四季通常是我們明年討論我們的發展方向。但與過去幾年不同，今天我們對結果將有很好的了解。所以我們對此感覺非常好。我認為我們討論的另一件事是招聘。

So we're ahead on the hiring 170 people. So we're probably maybe a little more than a quarter in front of that from what we originally planned. That probably spins out another couple of $1 million of investment this year as we look at it, but it's worth because the team is performing at a high level. We see really good growth within our sales organization year-over-year.

因此，我們提前招募了 170 名員工。因此，我們可能比最初計劃的時間提前了四分之一多一點。從我們的角度來看，今年這可能會導致另外 100 萬美元的投資，但這是值得的，因為該團隊的表現很高。我們看到我們的銷售組織逐年成長。

And we think that that's going to pay off as we move into '25 and '26. So these, as we talked about a quarter ago, these are decisions that are driving a longer term outlook and output. And so we feel very confident about these are on track and the right thing for the company to be doing.

我們認為，隨著我們進入 25 和 26 年，這將會得到回報。因此，正如我們一個季度前討論的那樣，這些決策正在推動長期前景和產出。因此，我們對這些工作正在步入正軌並且對公司來說是正確的事情充滿信心。

That's helpful. Thanks. And then on the Revolut partnership, you called out the 28,000 transacting users with the e-cash partnership into a base of about 10 million in the UK. And I think there's about 4x that globally Revolut users. So I guess what's your expectation for the ramp with those UK customers and kind of what could the timeline be to expanding into other regions with Revolut as well?

這很有幫助。謝謝。然後，在 Revolut 合作夥伴關係中，您將電子現金合作夥伴關係的 28,000 名交易用戶納入英國約 1,000 萬的用戶群中。我認為全球 Revolut 用戶數量約為該數字的 4 倍。所以我想您對這些英國客戶的成長有何期望，以及與 Revolut 一起擴展到其他地區的時間表是什麼？

Yes. I think you'll see that continue to expand through 2025. It's going to be a nice growth item for us. I think you saw it probably as well. We announced the Deutsche Bank partnership as well prior to the call last week. So we have another similar one with a much larger client base. So this is a kind of new initiative, really leveraging the assets that we have in Europe.

是的。我認為到 2025 年您會看到這種情況繼續擴大。這對我們來說將是一個很好的成長項目。我想你可能也看到了。在上週的電話會議之前，我們也宣布了與德意志銀行的合作關係。因此，我們還有另一個類似的客戶群，其客戶群大得多。所以這是一種新舉措，真正利用了我們在歐洲擁有的資產。

Keep in mind, we've got over 600,000 merchants across the European landscape. So this is really a great opportunity for us to do something unique and different than what we've done historically, in essence, allowing for cash deposit and withdrawal at any one of our retailers across Europe. So, we're very optimistic about how this kind of continues to go. And we think there's a lot more room here. I think we'll look to continue to add and sign other institutions to this type of model.

請記住，我們在整個歐洲擁有超過 60 萬名商家。因此，這對我們來說確實是一個很好的機會，可以做一些與我們歷史上所做的事情不同的獨特的事情，本質上，允許在我們歐洲各地的任何一家零售商處進行現金訪問。因此，我們對這種情況的持續發展非常樂觀。我們認為這裡還有更多空間。我認為我們將繼續在這種模式中新增和簽署其他機構。

Thanks. And then just last one for me, Alex, with the higher risk merchants rolling off, did we kind of see that impact in the merchant gross margin this quarter with those higher risk customers rolling off? And then, I guess, kind of thinking forward when we're thinking about the merchant gross margin mix, can you just remind us or help us kind of frame it up how we should be thinking about it longer term especially as it pertains to the direct (technical difficulty) over e-comm channel mix? Thanks.

謝謝。然後，對我來說，亞歷克斯，最後一個問題是，隨著高風險商家的退出，我們是否看到了本季高風險客戶的退出對商家毛利率的影響？然後，我想，當我們考慮商家毛利率組合時，您能否提醒我們或幫助我們制定框架，我們應該如何長期考慮它，特別是因為它與透過電子商務管道組合直接（技術難度）？謝謝。

Yes. Sure. On the first question, yes, definitely. We said they were high margin, but they're not sustainable. And so you'll see it on the EBITDA margin, you see it on gross margin and you, of course, see it on revenue. In terms of overall, in terms of the how you should think about gross margin, to be honest with you, the way we think about it, the way I think about it, we focus on our revenue and we focus on our EBITDA. And as John said, he's going to continue to focus on efficiency to try to drive that EBITDA margin higher, what's going to happen to the gross margin, it's really hard to predict at this point.

是的。當然。關於第一個問題，是的，絕對是。我們說過它們的利潤率很高，但它們是不可持續的。所以你會在 EBITDA 利潤率上看到它，你會在毛利率上看到它，當然，你會在收入上看到它。總的來說，就你應該如何看待毛利率而言，老實說，我們思考它的方式，我思考它的方式，我們專注於我們的收入，我們專注於我們的 EBITDA。正如約翰所說，他將繼續關注效率，試圖提高 EBITDA 利潤率，毛利率會發生什麼變化，目前還很難預測。

I would just add, as we said coming into the year that we would see margin acceleration from the front half to the back half of the year. We talked about that in our prepared remarks as well with 70 basis points expansion from the margin at the front half of the year, the EBITDA margin at the front half of the year to the back half.

我想補充一點，正如我們所說，進入今年，我們將看到利潤率從上半年到下半年加速。我們在準備好的發言中也談到了這一點，以及從上半年的利潤率到下半年的 EBITDA 利潤率擴大了 70 個基點。

So, we're executing exceptionally well navigating the optimization of some of our portfolios and margin expansion, as we said. And we feel like we're in a great position, as we said earlier in the year, to see margin expansion and as we move into '25. So, none of that has changed from our view as we sit here today.

因此，正如我們所說，我們在優化某些投資組合和擴大利潤方面執行得非常好。正如我們在今年早些時候所說的那樣，隨著我們進入 25 年，我們感覺我們處於有利的地位，可以看到利潤率的擴張。因此，當我們今天坐在這裡時，這些都沒有改變。

Thanks, team. Nice quarter.

謝謝，團隊。不錯的季度。

Trevor Williams, Jefferies.

特雷弗威廉斯，杰弗里斯。

Hi. This is Spencer James on for Trevor Williams. Thank you for taking the question. I wanted to ask a bit of a preview of the playbook for FY26, just given a lot of the initiatives in FY25 so far have appeared to really pay off. So curious if next year will look like more of the same or if there -- if we should expect a bit of a shift in investment priorities?

你好。我是史賓塞詹姆斯，替補特雷弗威廉斯。感謝您提出問題。我想對 2026 財年的行動手冊進行一些預覽，因為到目前為止，25 財年的許多舉措似乎確實得到了回報。很好奇明年是否會出現更多相同的情況，或者我們是否應該預期投資重點會發生一些轉變？

Yes, great question. I think when we do our next earnings call in March, we probably will have a cool slide on what we're going to do for '25. But I don't think we'll be sharing necessarily what we'll be doing with '26. But I think what you'll see in '25 is we have a clear path. We'll have a similar construct to what we have this year, where we have four or five initiatives that candidly the team is already working on for '25 that will set up '26.

是的，很好的問題。我認為，當我們在 3 月召開下一次財報電話會議時，我們可能會對 25 年的計劃有一個很酷的幻燈片。但我認為我們不一定會分享我們將在 26 年所做的事情。但我認為你會在 25 年看到我們有一條清晰的道路。我們將有一個與今年類似的結構，我們有四到五項舉措，坦率地說，團隊已經在為 '25 開展工作，並將設立 '26。

So I think the playbook is very much established at this point. We're taking on just a few projects, executing well against those projects that will drive particular outcomes. And so we're very focused on getting off to a good start here in '25. And as I said, the projects are identified, we're already working them and we feel pretty good about that.

所以我認為目前的劇本已經非常成熟了。我們只承擔了幾個項目，並且對那些將推動特定成果的項目執行得很好。因此，我們非常注重在 25 年取得一個好的開始。正如我所說，專案已經確定，我們已經在開展工作，我們對此感覺非常好。

So we'll '26 is just a little too far out there for us to start sharing just yet, but we definitely have a view and a path on where we're going.

因此，26 年對我們來說還有些遙遠，無法開始分享，但我們肯定對我們的發展方向有自己的看法和道路。

Yes. Thank you for that. Apologies. I did mean to say FY25 getting ahead of myself as well. And then maybe just as a follow-up, I was wondering if you could provide an update on the health of the pipeline just in the context of achieving growth targets for next year and any thoughts on mix shift of opportunities within the pipeline maybe?

是的。謝謝你。抱歉。我確實想說 25 財年也太超前了。然後，也許只是作為後續行動，我想知道您是否可以在實現明年增長目標的背景下提供有關管道健康狀況的最新信息，以及對管道內機會混合轉移的任何想法？

Yes. Look, our pipeline is really strong. On the enterprise side, really solid growth, 83 enterprise deals for the year. It's basically double what we had a year before. We're seeing really solid growth within those numbers. And so feel very good about what Rob and the sales team are doing. I think the product organization is starting to come together.

是的。你看，我們的管道真的很強大。在企業方面，成長確實強勁，全年有 83 家企業交易。這基本上是我們一年前的兩倍。我們看到這些數字確實在穩定成長。因此，對 Rob 和銷售團隊所做的事情感到非常滿意。我認為產品組織正在開始整合。

We're seeing good initiatives starting to emerge there. So we feel very confident as we sit looking at our pipeline, looking at the things that are coming for '25. Like I said before, we have pretty good visibility into how '25 is shaping up already. So feel confident about that.

我們看到那裡開始出現良好的舉措。因此，當我們坐下來審視我們的管道、審視 25 年即將推出的產品時，我們感到非常有信心。正如我之前所說，我們已經對 25 世紀的發展有了很好的了解。所以對此充滿信心。

Thank you for taking the questions.

感謝您提出問題。

Thank you. Appreciate it.

謝謝。欣賞它。

Paul Obrecht, Wolfe Research.

保羅‧奧布雷希特，沃爾夫研究中心。

Hi, thanks. This is Paul Obrecht on for Darren. It's great to see that you've reached the goal of 170 adds to the sales organization. Can you touch on the progress in ramping these new hires and when you expect them to be fully ramped at kind of a normal run rate of productivity?

你好，謝謝。我是保羅·奧布雷希特 (Paul Obrecht) 替補達倫 (Darren)。很高興看到您已實現為銷售組織增加 170 名員工的目標。您能否談談增加這些新員工的進度以及您預計何時能夠以正常的生產力運行速度全面提高？

Sure. Happy to do that. So, as some of you may recall, what we talked about is our enterprise sales team generally takes about six months to get fully ramped. So accelerating hiring really is about driving more opportunity into '25, getting them on board quicker, so that we can really maximize the impact in '25. When you look at our SMB sales organization, they get online a little faster.

當然。很高興這樣做。因此，正如你們中的一些人可能還記得的那樣，我們談論的是我們的企業銷售團隊通常需要大約六個月的時間才能完全成熟。因此，加速招募實際上是為了在 25 世紀推動更多的機會，讓他們更快加入，這樣我們才能真正最大限度地發揮 25 世紀的影響力。當您查看我們的中小企業銷售組織時，您會發現他們的上網速度要快一些。

So they're getting online typically within three, four months. And so a little quicker ramp there. What we can share so far as we look at both the enterprise and the SMB channel, I would say, the enterprise team is probably outperforming our expectations slightly and the SMB is probably right on expectation. And but there's a lot of people for us adding.

所以他們通常會在三到四個月內上網。所以那裡的斜坡要快一點。就企業和中小企業管道而言，我們可以分享的是，我想說的是，企業團隊的表現可能略高於我們的預期，而中小企業可能符合預期。但還有很多人需要我們補充。

Just to put it in context a little bit, we basically have doubled the size of the sales team in the last few months. So there's a lot that we're absorbing, a lot of processes that had to be worked through on onboarding training and all those things. But overall I think the team is doing a very good job with that and we feel like it's progressing on track.

簡而言之，在過去的幾個月裡，我們基本上將銷售團隊的規模擴大了一倍。因此，我們正在吸收很多東西，必須在入職培訓和所有這些事情上完成很多流程。但總的來說，我認為團隊在這方面做得非常好，我們覺得它正在步入正軌。

Great. Thank you. And then as a follow-up, it looks like SMB direct decelerated to around 5% from 10% last quarter. Is that mainly reflective of the decisions to exit risky merchants? And can you just provide some color on what you're seeing in this part of the portfolio and kind of what your expectations are going forward?

偉大的。謝謝。接下來，SMB Direct 似乎從上季的 10% 減速至 5% 左右。這主要反映了退出高風險商家的決定嗎？您能否提供一些您在這部分投資組合中所看到的內容以及您對未來的期望？

Yes. Look, as we talked about, we looked at kind of where the market was going, what we saw kind of emerging from a regulatory standpoint and we decided to start being proactive instead of being reactive as we had been historically as a company. So we decided there were certain merchants that were the highest of risk that we no longer wanted to be associated with.

是的。看，正如我們所說，我們研究了市場的走向，我們從監管的角度看到了一些新的情況，我們決定開始採取主動行動，而不是像我們作為一家公司歷史上那樣被動反應。因此，我們決定不再希望與某些風險最高的商家建立聯繫。

So, we started taking advantage of the fact that our growth was significantly ahead of where we thought it would be at this point. And we started laying off some of those merchants from our portfolio. And that's what is driving the SMB decline. When you look at internally as we look at our revenue walk, the same-store sales, the new sales, those things are progressing very, very nicely.

因此，我們開始利用這樣一個事實：我們的成長遠遠超出了我們目前的預期。我們開始從我們的投資組合中解僱一些商人。這就是中小企業衰退的原因。當你審視內部時，就像我們審視我們的營收走勢、同店銷售額、新銷售額一樣，這些事情都進展得非常非常好。

And it gave us the latitude to prune some of the portfolio and still and keep in mind, we're still driving to a number that is above what the midpoint was at the start of the year. So when we look at the original midpoint of expectation of revenue is around 6% and change just over 6% growth. We're going to be obviously above that as we've given the guidance for the year. So, it's a great year. We're making a lot of progress in the transformation and setting ourselves up for a good solid '25.

它給了我們修剪一些投資組合的自由度，但請記住，我們仍在推動一個高於年初中點的數字。因此，當我們看到最初的收入預期中點約為 6% 時，變化為略高於 6% 的增長。由於我們已經給出了今年的指導，因此我們的目標顯然會高於這一水平。所以，這是美好的一年。我們在轉型方面取得了巨大進展，並為美好的 25 年做好了準備。

Got it. Appreciate the color. Thank you.

知道了。欣賞顏色。謝謝。

Thank you. (Operator Instructions) Timothy Chiodo, UBS.

謝謝。（操作員說明） Timothy Chiodo，UBS。

Hi. This is Jing on for Tim. Thank you for taking the question. I wanted to touch on your value added services opportunities. It's encouraging to see you're ahead of the 15 million 2024 revenue. In last quarter you highlighted an integrated loan program for short-term working capital support for your partners. And we saw Paysafe being highlighted by (technical difficulty) as a commercial lending customer.

你好。這是 Tim 的 Jing 發言。感謝您提出問題。我想談談你們的增值服務機會。看到您領先 2024 年 1500 萬美元的收入，真是令人鼓舞。在上個季度，您強調了為合作夥伴提供短期營運資金支持的綜合貸款計劃。我們看到 Paysafe 作為商業貸款客戶被（技術難度）凸顯。

So could you expand on this partnership and any unit economics that you can share impact on take rate or any other value added services you could highlight? Thank you.

那麼，您能否擴展這種合作夥伴關係以及您可以分享對接受率或您可以強調的任何其他增值服務的影響的任何單位經濟效益？謝謝。

Yes. Thank you for the question. Yes, we are a partner of theirs. The loan program is a great program that as you look at our client base, we've got in aggregate around the world, we've got close to 900,000 merchants. So for us to have a program that offers working capital loans makes a lot of sense. I think you'll see that from our standpoint, this is not something that we underwrite or take any risk on.

是的。謝謝你的提問。是的，我們是他們的合作夥伴。貸款計劃是一個很棒的計劃，當你看看我們的客戶群時，我們在世界各地總共擁有近 900,000 個商家。因此，對我們來說，制定一個提供營運資金貸款的計劃非常有意義。我想您會看到，從我們的角度來看，這不是我們承保或承擔任何風險的事情。

This is something that we have just a referral arrangement with or origination type of deal with them. I think we will add others to that mix as we go forward, respective of the different geographic markets that we're operating in. I think this is just the beginning. I think you'll see us offer a large number of other solutions much like as probably everyone knows, we sell a lot of Clover, one of the largest resellers of Clover.

我們只是與他們進行了推薦安排或發起類型的交易。我認為，隨著我們的發展，我們將在我們所經營的不同地理市場中添加其他產品。我認為這只是一個開始。我想您會看到我們提供大量其他解決方案，就像大家都知道的那樣，我們銷售大量的 Clover，是 Clover 最大的經銷商之一。

You'll see our programs start to really take on more of that where we're adding more and more ancillary services to our merchants. At the end of the day, what we're trying to do is provide the merchants the opportunity to run their business the best that they can. And that's really what we're trying to do on the merchant acquiring side.

您將看到我們的計劃開始真正承擔更多的責任，我們為商家添加越來越多的輔助服務。歸根究底，我們要做的就是為商家提供盡其所能經營業務的機會。這確實是我們在商家收單方面正在嘗試做的事情。

And just to add, just to confirm, yes, our take rate, if you look at Q3 of last year in the Merchant Solutions business versus Q3 of this year is off of it.

只是補充一點，只是為了確認，是的，如果你看看去年第三季的商家解決方案業務與今年第三季的情況，我們的接受率是不一樣的。

Thank you.

謝謝。

Awesome. Really appreciate the color. I also wanted to follow-up on Clover, so really glad you mentioned it. So related to your distribution of Clover, how should we think about the potential overlap of value added services offered by Paysafe and by Clover on the merchant side? Thank you.

驚人的。真的很欣賞這個顏色。我也想跟進 Clover，很高興你提到它。那麼，與您對 Clover 的分銷相關，我們應該如何考慮 Paysafe 和 Clover 在商家方面提供的增值服務的潛在重疊？謝謝。

Yeah, that's a great question. Look, I would say that Fiserv is a great partner of ours. We work with them quite a bit on product innovation and ideas on how to expand distribution of our products and their products to the compliant entities customer base.

是的，這是一個很好的問題。聽著，我想說 Fiserv 是我們很棒的合作夥伴。我們與他們在產品創新和如何擴大我們的產品及其產品向合規實體客戶群的分銷方面的想法進行了大量合作。

So, we feel very good about the opportunity to continue to expand -- us for expanding the products that we sell from Fiserv into the market. And we feel very good about the opportunity in front of us. So I think something we'll continue to be pushing on here as we move into '25.

因此，我們對繼續擴張的機會感到非常高興——我們將 Fiserv 銷售的產品擴展到市場。我們對擺在我們面前的機會感到非常滿意。因此，我認為，進入 25 年後，我們將繼續在這裡推動一些事情。

Really appreciate the color. I'll pass it on. Thank you.

真的很欣賞這個顏色。我會把它傳遞下去。謝謝。

Thank you. As there are no further questions, I would now like to hand the conference over to Bruce Lowthers, CEO, for closing comments.

謝謝。由於沒有其他問題，我現在想將會議交給執行長 Bruce Lowthers 進行總結評論。

Well, thank you. Thank you, everyone, for joining us. I want to thank, obviously, everyone here at Paysafe for a great quarter. Again, just a reminder, 8% growth. We saw margin expansion from the front half of the year to Q3.

嗯，謝謝。謝謝大家加入我們。顯然，我要感謝 Paysafe 的每個人，感謝他們度過了一個美好的季度。再次提醒一下，成長 8%。從上半年到第三季度，我們看到利潤率擴大。

So excited about that. It really needs to be reiterated again the net leverage ratio coming down to 4.7 as Alex touched on meeting kind of our full year obligation already a full quarter in advance. We're excited about that. So really a strong quarter for us with solid top and bottom line and net leverage reduction. So thank you very much. Appreciate everyone dialling in today.

對此感到非常興奮。確實需要再次重申，淨槓桿率已降至 4.7，因為 Alex 提前一個季度談到了我們的全年義務。我們對此感到興奮。因此，對我們來說，這確實是一個強勁的季度，擁有堅實的營收和利潤以及淨槓桿率的降低。非常感謝。感謝今天撥通電話的每個人。

Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。