PAYSAFE LIMITED Reports Positive Q1 FY2023 Earnings Results on March 31, 2023
May 28, 2023
Earnings Overview
PAYSAFE LIMITED ($NYSE:PSFE) reported their earnings results for the first quarter of FY2023 on March 31 2023. Total revenue was USD 387.9 million, an increase of 5.5% from the first quarter of FY2022. Net income also saw a dramatic improvement, rising from -1171.2 million to -3.8 million year-on-year.
Market Price
On Wednesday, PAYSAFE LIMITED reported its Q1 FY2023 earnings results on March 31, 2023. The results showed that the company achieved a 6.0% drop from the previous closing price of 12.7. PAYSAFE LIMITED opened at $12.6 and closed at $12.0, giving investors a clear picture of the company’s financial performance during the first quarter. The decrease in net profit was attributed to the company’s increased expenses in the quarter, including marketing costs, advertising campaigns and payroll expenses. Despite the decrease in net profit, PAYSAFE LIMITED still managed to report strong revenue growth.
This increase in revenue was attributed to higher sales of PAYSAFE’s products and services, as well as a new partnership with a major retailer. This increase in cash flow was driven by the company’s continued focus on cost-cutting and efficiency initiatives. Overall, PAYSAFE LIMITED reported a strong Q1 FY2023 earnings results with positive revenue growth and increasing cash flow. The company will continue to focus on cost-cutting and efficiency initiatives to maintain their profitability over the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Paysafe Limited. More…
| Total Revenues | Net Income | Net Margin |
| 1.52k | -695.28 | -3.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Paysafe Limited. More…
| Operations | Investing | Financing |
| 301.27 | -152.41 | -117.39 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Paysafe Limited. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.73k | 4.86k | 14.22 |
Key Ratios Snapshot
Some of the financial key ratios for Paysafe Limited are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.8% | -24.3% | -37.1% |
| FCF Margin | ROE | ROA |
| 9.7% | -40.6% | -6.1% |
Analysis
GoodWhale has conducted an analysis of PAYSAFE LIMITED‘s overall wellbeing. We have assigned the company a health score of 6/10, indicating intermediate financial health. This means that the company is likely to ride out any crisis without the risk of bankruptcy due to its cashflows and debt. When considering the different aspects of PAYSAFE LIMITED’s performance, we find that the company is strong in , medium in profitability and weak in asset, dividend, and growth. As such, PAYSAFE LIMITED has been classified as a ‘sloth’, a type of company which we conclude has achieved revenue or earnings growth slower than the overall economy. The type of investors who may be interested in such a company are those looking for a steady but low-risk investment. The lack of major growth prospects may be off-putting to high-growth investors, but it means that PAYSAFE LIMITED is likely to provide its investors with steady returns over time. As such, it could be an attractive option for those interested in slow but steady profits. More…
Peers
Paysafe Ltd is a leading provider of online payments and e-money solutions. The company offers a wide range of payment options for businesses and consumers, including credit and debit cards, e-wallets, and prepaid cards. Paysafe is headquartered in the Isle of Man and has offices in the UK, US, Canada, Australia, and New Zealand.
Paysafe’s main competitors are Block Inc, Microsoft Corp, and Network International Holdings PLC. Block is a leading provider of blockchain-based payment solutions. Microsoft is a leading provider of cloud-based payment solutions. Network International is a leading provider of payment processing solutions for businesses in the Middle East and Africa.
– Block Inc ($NYSE:SQ)
Block Inc is a publicly traded company with a market capitalization of 31.84 billion as of 2022. The company has a return on equity of -1.6%. Block Inc is a provider of blockchain technology and services. The company’s platform enables the development, deployment, and management of blockchain applications. Block Inc also offers consulting and professional services to enterprises and government organizations.
– Microsoft Corp ($NASDAQ:MSFT)
Microsoft Corporation is an American multinational technology company with a market cap of $1.76 trillion and a ROE of 45.3%. The company develops, manufactures, licenses, supports, and sells computer software, consumer electronics, personal computers, and related services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers.
– Network International Holdings PLC ($LSE:NETW)
Network International Holdings PLC is a leading provider of payments solutions in the United Arab Emirates. The company has a market cap of 1.74 billion as of 2022 and a return on equity of 9.7%. Network International provides a suite of products and services that enable businesses to accept and process payments. The company’s products and services include point-of-sale terminals, mobile point-of-sale devices, electronic billing, and online payment solutions. Network International also offers value-added services such as loyalty programs, data analytics, and fraud management.
Summary
PAYSAFE LIMITED’s first quarter FY2023 earnings results showed an increase in revenue of 5.5%. While net income decreased from the same period last year, it was still an improvement, dropping from -1171.2 million to -3.8 million. Despite this, the stock price for PAYSAFE LIMITED moved down on the same day. Investors will want to take a closer look at PAYSAFE LIMITED’s financial performance and consider factors such as future cash flow, competitive positioning, and other potential risks before making an investment decision.
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