Company: PSEWF
Filing Date: 2025-03-04
Form Type: 20-F
Source: 0000950170-25-032340
Chunk: 111

Company: Paysafe Ltd
Filing Date: 2025-03-04
Form: 20-F
Item: Item 5
Chunk 111
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 December 31, 2024 from $878,346 for the year ended December 31, 2023. This increase was due to higher volumes and growth in e-commerce driven by initiatives to expand our sales capabilities and optimize the portfolio. The increase was offset partially by a decrease in revenue from higher margin merchants.

Cost of services (excluding depreciation and amortization) increased by $49,702 or 10.6% to $518,792 for the year ended December 31, 2024 from $469,090 for the year ended December 31, 2023. This increase is consistent with the increase in volumes during the period.

Selling, general and administrative increased by $60,878 or 32.5% to $247,980 for the year ended December 31, 2024 from $187,102 for the year ended December 31, 2023. This increase is due to increased credit losses of $27,642, mainly due to specific loss events associated with certain merchants and increased losses in the direct marketing business line, an increase in personnel cost of $24,281, primarily related to increased headcount to expand our sales capabilities, and an increase in consulting costs of $11,482 related to the ongoing optimization of the Merchant Solutions portfolio.

Segment Adjusted EBITDA decreased by $31,303 or 14.1%, to $190,851 for the year ended December 31, 2024 from $222,154 for the year ended December 31, 2023 which is dues to variances explained above.

Digital Wallets

The following table presents our results for the Digital Wallets operating segment for the year ended December 31, 2024 and 2023:

                                                      For the year                                Variance                       
                                                ended December 31,                                                               
  (U. S. dollars in thousands)                                2024                                $                              
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Revenue (1)                                                           765,505      734,669                    30,836      4.2  
  Cost of services (excluding depreciation                              215,263      205,999                     9,264      4.5  
  Selling, general and administrative (2)                               211,217      209,964                     1,253      0.6  
  Segment Adjusted EBITDA                                               339,025      318,706                    20,319