Paysafe has reported its first quarter earnings, recording a net loss of $1.2bn, a notable increase over Q1 last year when it posted a $60.6m loss.

For the first three months of 2022, Paysafe reported a decline across most metrics, led by a 3% top-line revenue decrease year-on-year.

All-in-all, Paysafe’s Q1 revenue amounted to $367.7m, down from last year’s $377.4m. Adjusted EBITDA likewise decreased, dropping 8% year-on-year to $104m.

Despite Paysafe’s US Acquiring business increasing its revenue by 10%, the company’s Digital Commerce segment saw revenue decline by 11%, offsetting the former’s growth.  

Adjusted EBITDA tells a similar tale. US Acquiring grew this metric by 20% to $47.2m, while Digital Commerce experienced a 17% drop to $75.8m.

Breaking down Paysafe’s Digital Commerce segment even further, eCash generated $101m in revenue, a 10.5% decrease, while Digital Wallets produced $82.2m for a 13% drop.

While these declines likely contributed to Paysafe’s considerable net loss, it primarily attributed this to a sustained decline in stock price and market capitalisation, resulting in it recognising a $1.2bn impairment of goodwill.

Despite these results, Paysafe’s CEO Izzy Dawood remained optimistic, commenting: “Paysafe is off to a good start this year, posting first quarter results ahead of our expectations.

“We are particularly pleased with the strong performance from our US Acquiring business, which delivered double-digit volume, revenue and adjusted EBITDA growth.”

He added: “Despite macro headwinds, we remain confident in our full year outlook supported by continued momentum in US Acquiring and our pipeline across Digital Commerce.”