Paysafe Limited (PSFE) plummeted 33.84% in the pre-market trading session at the price of $4.84 after announcing its financial results for the third quarter of 2021.
PSFE is one of the leading specialized payments networks. The company aims to facilitate clients and businesses to seamlessly transact through industry-leading capabilities in a digital wallet, payment processing, and cash solutions.
PSFE Third Quarter 2021 Financial Results
On 11th November 2021, PSFE published its earnings report for the third quarter ended on 30th September 2021 and presented corporate updates.
PSFE Financial Highlights
PSFE calculated net revenue of $353.6 million for the third quarter of 2021. It represents a drop of 1% from $355.5 million in the previous year same quarter. Net loss attributable to Paysafe was $147.2 million for the third quarter ended 30th September 2021. Net loss attributable to the company totaled $38.1 million in the third quarter of the previous year. Adjusted EBITDA was roughly $106.4 million for the third quarter of 2021. It is a drop of 1% from $107.3 million for the third quarter of the previous year.
For the third quarter ended 30th September 2021, PSFE reported an adjusted EBITDA margin of 30.1%. Adjusted EBITDA margin was 30.2% in the third quarter ended on 30th September 2020. Net cash from operating activities totaled $51.6 million for the third quarter of 2021. It represents a rise of 37% from $37.8 million in the same quarter of the prior year. Free cash flow for the third quarter of 2021 was $70.2 million. Free cash flow was $58.8 million in the third quarter ended on 30th September 2020.
Management Comments
Chief executive officer of PSFE, Philip McHugh, remarked that they had reported Adjusted EBITDA in range with their expectations during the third quarter. It indicates both business and performance challenges in the digital wallet market. Coupled with high delivery against the expense, their position to achieve higher growth and disruptive markets like crypto and online sports betting will continue to stimulate. They will continue to publish substantial momentum across all the businesses, he added.
