Company: PSEWF
Filing Date: 2025-03-04
Form Type: 20-F
Source: 0000950170-25-032340
Chunk: 112

Company: Paysafe Ltd
Filing Date: 2025-03-04
Form: 20-F
Item: Item 5
Chunk 112
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      6.4  

(1)

Amount includes intersegment transactions that are attributable to the segment. Intersegment transactions are primarily for processing credit card transactions and deposits between segments.

(2)

Selling, general and administrative excludes share-based compensation costs which are not included in our definition of Segment Adjusted EBITDA.

The commentary included below exclude amounts that are outside of our definition of Segment Adjusted EBITDA. Refer to the commentary of these amounts under “ Results of Operations”.

Revenue increased by $30,836, or 4.2%, to $765,505 for the year ended December 31, 2024 from $734,669 for the year ended December 31, 2023. This increase was primarily due to growth in Digital Assets, and product initiatives.

Cost of services (excluding depreciation and amortization) increased by $9,264 or 4.5% to $215,263 for the year ended December 31, 2024 from 205,999 for the year ended December 31, 2023. This increase is consistent with the increase in revenues during the period.

Selling, general and administrative increased by $1,253 or 0.6% to $211,217 for the year ended December 31, 2024 from $209,964 from December 31, 2023. This increase is due to costs incurred on information technology related to increased software development, and premises and office costs due to new office leases entered into during the year ended December 31, 2024.

Segment Adjusted EBITDA increased by $20,319 or 6.4%, to $339,025 for the year ended December 31, 2024 from $318,706 for the year ended December 31, 2023 which is due to the variances explained above.

Seasonality

We have experienced in the past, and expect to continue to experience, seasonal fluctuations in our business. For instance, both of the Company’s Merchant Solutions and Digital Wallets businesses historically experience increased activity during the traditional holiday period and around other nationally recognized holidays, when certain of our game’s operators may run promotions, consumers enjoy more leisure time and younger consumers may receive our products as gifts. Our Digital Wallets segment experiences increased activity based on the occurrence and timing of sporting events. Volatility in our revenue, key operating metrics or their rates of growth could result in fluctuations in our financial condition or results of operations.

Quantitative and Qualitative Disclosure about Market Risk

Our