Payments platform Paysafe saw a $17.7m rise in revenue in Q1 year on year to $377.4m, but also saw $2.0m net loss increase because of administrative costs, in its first results since going public in a merger with Foley Trasimene Acquisition Corporation.
Total revenue came to $377.4m, an increase of 4.9% compared to the first quarter of 2020. Paysafe credited this to growth across its eCash platform, which grew 63.3% in revenue year on year.
Paysafe’s Integrated Processing and Digital Wallet software revenue dropped by 4.9% and 12.5% respectively, while $7.3m of revenue was canceled out through intersegment eliminations.
However, expenses amounted to an overall net loss for the company. Cost of services totalled at $151.0m, a rise of 16.7% compared to Q1 in 2020. Selling, general and administrative costs came to $185.5m, a rise of 57.9% year on year. Depreciation and amortization expenses dropped 5.8% to $65.4m, while impairment expenses on intangible assets dropped a significant 98% from $529.6m to $578,000. Restructuring and other costs also fell by 47.4% to $2.9m.
In total, the provider recorded an operating loss of $28.1m, $12.5m more than in the previous year year. Other expenses, generating $32.6m, brought the total to a positive of $4.4m. But the interest expense, costing $58.5m, decreased the total to a loss of $54.0m. The income tax benefit of $5.0m concluded the total net loss of $49.0m, a 3.9% increase compared to the previous year.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) totalled at $113.2m.
“As we embark on our next chapter as a public company, we are pleased to deliver solid financial results in the first quarter, including continued strength from online and e-commerce volumes.” said Philip McHugh, CEO of Paysafe.
“Looking ahead, with our great market positions and unique, two-sided network, we believe that Paysafe remains well positioned to deliver consistent double-digit growth and drive operating leverage.”
Last month Paysafe finalized its merger with special purpose acquisition company Foley Trasimene Acquisition Corporation, after it was announced in December 2020.