Paysafe Limited (PSFE) Earnings Call Transcript & Summary

All right. We'll get started. Hi, everyone. I'm Kirsten Nielsen. Welcome to Paysafe's Analyst Day. I lead Investor Relations for Paysafe. I just want to thank everyone for being here, especially those of you who are here in person with us. We know there's a lot going on in the markets today. Thank you to those of you who are tuning in on the webcast as well. Really appreciate your time. Let's see a couple of just housekeeping items before we get started. As usual, we'll have our forward-looking statements in today's presentation and some non-GAAP financial measures. You can find more information on these in the appendix of the presentation as well as our SEC filings and on our Investor Relations website. So this is the agenda for today. We've structured it in 2 main parts. We'll start off hearing from Bruce an update on our strategic priorities. Then you'll hear from Rob Gatto, our new Chief Revenue Officer, and then we'll have a spotlight on the iGaming market with Zak Cutler. Then we'll have a brief break. We'll take a few questions then, and then we'll do a quick restroom break, and then we'll get started again after that with Afshin for a presentation on the merchant acquiring business. And then Alex will tie it all together for us in the financial outlook, and then we'll have a few remarks from Bruce before we have our final Q&A session for the day. And then you're welcome to join us for a few drinks and orders afterwards as well. So that's the agenda for the day. With that, I'd like to get started, and I'll turn it over to Bruce.

Thank you, Kirsten, and welcome, everyone. Really appreciate everybody making time to come here. Another slow fintech weekend. So we didn't really have any exposure on the weekend. So I'll go ahead and get that question off the table before we get going. But seriously, it's great to be here. Great to be here at the New York Stock Exchange, having an opportunity to talk a little bit about Paysafe, and kind of where we're going with the company as we move forward. So I do, before I get into it, I want to just thank the team. You're going to get the opportunity to meet a lot of the folks here. They put in a lot of work putting these slides together. It's a big process, as you guys know, and really appreciate everything that Kirsten has led for us as we've gone through this. So let's jump in with the reintroduction to Paysafe. I think many of you have heard us talked just last week with Alex, Kirsten and myself, kind of how we finished up the year. So we look at the company at $1.5 billion from revenue, $130 billion in volume, 3,300 employees. We had a nice movement in the back half of the year, kind of stabilizing and driving some growth. When we look at the company, I look at it very simplistically. So we have kind of our merchant acquiring business and our digital wallet business. So really 2 segments that we look at as we move forward and both great opportunities. You're going to hear in the coming slides, the markets that we're in, why we think they're great markets to be part of. We've got a great merchant acquiring business. You're going to get to hear from Afshin later on today. But we're the fourth largest nonbank merchant acquirer in the U.S. We have a leading eCash network in Europe with over 1 million storefronts and participants. We've got 19 million consumers that are using our digital wallet product. So we have some scale. We have a global footprint. We have a great margin. I think as you heard Alex and I talk about last Thursday, as we look forward, we've got a business that in '23 that will grow 6% to 7% as we move forward, and we'll have somewhere between 100- and 150-basis-point margin expansion as we move forward. So that kind of gives a quick overview of Paysafe. So today, we've got the team here to present a lot of what we're going to talk about. So you're going to have, obviously, Alex. A lot of us probably -- for a lot of people in the room, it's the first time you'll have the opportunity to hear from people directly. So you've heard from Alex last week, but you'll get another opportunity to hear from Alex today, talking more about where we're going than kind of where we have been. Afshin is over here as well. So he will talk a lot about Merchant Acquiring. He's got some exciting things that he's looking at and where the merchant acquiring business is going. Rob Gatto, who is our Chief Revenue Officer. So Rob is going to talk about what he's done over the last few months that he's been here and the success that he's had already. So we have some real success stories that are building, and he'll talk a little bit about that. And then, Zak, you're going to get an opportunity to hear from Zak talking about the gaming industry and kind of our path forward on the gaming industry and why we're still very excited about the gaming industry. I also want to announce today that Nicole Carroll is here today, and she's up back. She is joining us as our Chief of Strategy and Innovation. So Nicole will join us at the beginning of April. And so we're very excited to have her here with us. She comes from Experian most recently and has a long background in payments being Visa and Discover and some others. So we're very excited to have her joining us, and driving our long-term enterprise strategy and innovation. So you can see a very experienced team that we've pulled together. We've had a great opportunity to recruit great talent in. It's been about putting the talent in the right place so we can be successful and drive outcomes as we move forward. So let me tell you a little bit about what we do. But before I do that, the question that I get a lot from the people in the room and others is why do people buy from you? And it really comes down to 3 things. People buy because they like the experience that they have with us, whether it'd be a merchant or a consumer, they will all come back to us and tell us -- and you'll actually get to hear today some testimonials of people of our clients talk about the experience that they have, whether it'd be a VIP consumer that's using our application or ISV or ISO or one of our merchants, that's usually the first thing they talk about is the experience that they have with us versus others. The second thing that they talk about is really our ability to manage risk. So keep in mind, we've been around for over 20 years. We do business in 120 countries. We've had the opportunity to really craft the skill set around legislation, regulatory and risk. So we've really built out a strong foothold in navigating risk for clients. And then lastly is breadth of solutions. So you'll hear Afshin talk about some of the reasons why the merchants like what our merchant acquiring does is really about the optionality that we present to them. And so that's really what's been driving a lot of the success that he's had, and he'll talk a lot about that as we go forward. But bringing in Nicole and 1 of the 3 components of what we look at as we go forward is really about bringing more clients -- bringing more products to our clients. So we're going to see a lot of energy around that as we are moving forward. And we've already started that process, and you'll get to hear some of those initiatives here today. So for me, and just my focus is coming in now 10 months ago, it's really been about how do we simplify the business? How do we really get refocused on driving growth? And the things that we've done for that really have been, first and foremost, we saw that we have 800, just over 800 clients that drive about 50% of our revenue. And we really saw that those were underpenetrated. We have great opportunity to cross-sell, and I've got a slide here, I'll show you in a minute. It will become very obvious as you look at those that we have a tremendous opportunity to cross-sell more product into our customer base. So focusing on growth, starting with our sales engine, building out a team to go after those 800 and the opportunity to cross-sell into those customers. It's not just there. We're going to partner with a lot of people. We're going to start accelerating the products that we're bringing to market. And that's why it's so important for me to bring in someone like Nicole to help us really drive the innovation around product. For us, we really going to need to focus on this. I talked about it probably the first earnings call that I was in. We talked about we needed to execute better. We needed to get more product to market. The market happens in a very fast and dynamic way. And we need to adapt and be agile to support our small businesses, our enterprise clients and our consumers. And so we're really going to put a lot of energy around this innovation. And then talent, as I said. we've had a lot of opportunity to evaluate the talent. Our teams are having a tremendous amount of success recruiting people into the organization. And we really feel like we're on stable ground, and we've got a great basis to build off of with our talented teams. So when you look at historically where we came from, you can see that, behind me here, we started -- you look out 5 years ago, we were $1.1 billion. We'll look at $1.6 billion for this year. And you can see the kind of the time line of things as they've evolved. And so we looked at '22 as a kind of a year of transition, kind of stabilizing the ship. We believe that we've done that, and we feel like we've positioned ourselves to grow. As you heard on the earnings call last week, we had a decent growth path through the back half of the year, and now we've positioned ourselves for '23. I think as we look longer term, Alex will give you more guidance of high single digits, low double digit. When you take into account what we've told the guidance for this year, that really looked at the out years, we believe in the '25 time frame that we'll be a double-digit teens grower as we're moving forward. So we think we have lots of revenue opportunities in front of us. And now it's just about lining up the team and going out and executing on the opportunities that we have. So when we look at our verticals, we look at -- these are our 5 verticals. So how we did this is we went -- we pulled all the revenue streams that we have. And we said, okay, what are the MCC codes? What are the verticals that we play in? And this is what came back. So it was easy exercise of just going through and pulling the data and saying, "Okay, here's where we are today. This represents 80% of our revenue stream. And so we really want to focus in on these places." This has been kind of a big shift for us just mentally, culturally. As we look at this and say, okay, here's where we naturally are. These are great opportunities with trillion dollar TAMS with double-digit growth rates for the foreseeable future. So we know we have big verticals that we can go play in. Now it's just up to us to go execute and drive better outcomes. So very excited about the gaming market. Travel and leisure is one that is continuing to accelerate for us. Our pipeline is building there. Video gaming has been something we've been part of for a very long time, predominantly out of our eCash business. Retail hospitality is really on the merchant acquiring side. So having a lot of success there, as you have seen in 2022, and then our digital assets. Well, the digital assets is a smaller component of our revenue stream. It's something that we still -- even despite the current market, we're still excited about what's going on in digital assets, and we think we have a natural extension into that market, and we'll talk about that here in a second. So merchant acquiring, again, double-digit growth for us in e-comm. We've got some nice, real strong growth in our SMB vertical. We think that there's ways where we can continue to accelerate that business. We don't see any downturn economically here that will impact us. We certainly are seeing all the activity that's happened over the last couple of weeks in the marketplace. But when we talk to economists, we generally feel, as I said last week, that it will be a moderate recession that we work our way through and doesn't really impact that business. Digital wallet, we had nice fifth month in a row of stabilization and starting to see some growth. We talk about growth kind of returning back into the digital wallet as we move into Q2. So we feel that that's a market that is really going to be a growth engine for us in the out years as we look at our midterm guidance. Emerging markets, LatAm, as you guys know, we did a couple of acquisitions last year. They've been performing exceptionally well. 18% growth last year. So we're very excited about the opportunities in LatAm, and we think that, that will continue to be a growth engine for us as we move forward. Embedded finance, we're very excited about. I'm going to talk about that in a second, so I won't spend too much time here. But there's a lot of examples here where our wallet platform really comes together. And we think there's a lot of opportunities that we can take advantage of looking at our wallet platform differently than we have historically. So it's not just about the gaming part of the wallet. We think there's expansion of the wallet platform that we can do in an embedded finance context or a private label context, if you will. Digital leisure also is a great place for us as we look at, and I'm going to give you an example of that here in a minute, but it's a great place for us to expand and another revenue channel for us to really drive. When you look at our revenue streams, fairly balanced. North America leading away with merchant acquiring at 55%. We've got 33% in Europe. Obviously, the 7% is really coming from the LatAm activity that we just acquired. So we feel good about that. And then we've got rest of the world. On the right side of the screen, as you guys are looking at it, you have the breakdown of the verticals of where the revenue streams are coming from. So you can see retail hospitality is the leader in the clubhouse. We've got iGaming is right on its heels, but we have good growth opportunities in these other verticals and very excited about those. So as we look at the business and what we wanted to focus on, again, we just kind of kept it simple. Customer experience, right? So we talked about customer experience when I first came in. Just in January, we got a report from J.D. Powers, where we were ranked third for merchant services satisfaction. So we are right behind Bank of America and Stripe as the 2 leaders. We were the -- in the last year, we increased 53 points. It was the biggest increase they've ever had in the report of a particular vendor moving up to #3. So the things that the team have been doing have really been working and paying off. So you have Afshin's business that I talked about. The experience as part of that foundation, seeing a lot of success there. On the wallet side, we talked a lot over the fall, about making improvements to the application. And just today, we launched a feature within the app that allows for our consumers to track the funding of their wallet. This will eliminate 5,000 calls to us a month just from that one thing. So as we continue to just focus on experience, experience, experience, it's driving better outcomes for us. Product innovation, I talked about, we're really laser focused. We're focused on improving our off rates. We're focused on our APM strategy. We're focused on our single API, driving things into our e-com gateway, and we're very, very focused on the wallet. The wallet platform is something you're going to hear us talk a lot about, and we feel there's a tremendous amount of runway for us with that. And then you're going to hear from Rob in a second, so I won't talk too much about that, but sales acceleration, it's really about creating a sales culture. Why I like a sales culture is when you have a sales culture, sales impact everything that you do. So they make you better, right? They bring up issues of this onboarding process is clunky. We need to fix it. It gets everybody in the room talking about how do you service the clients better. And it's one of the few things that really do that in any organization. It gets everybody working together. It makes you better because it forces you to address the challenges. As you accelerate your sales, that's going to be really important for us is to get better at all those little things and sales escalates all of those. One of the other big things, advantages, accelerators that we have is -- and this is not something new you guys have seen this before, is really having that 2-sided ecosystem, the merchants and the consumers. And I'm going to give you an example here in a second of why we think we have a channel that very few people have, and how we can actually take advantage of it and accelerate our revenue growth as we do this. So when you think of our wallet, this is what their wallet typically looks like. You come into the wallet, you're either trying to move funds into the wallet or you're you trying to move funds out of the wallet. You're trying to check your balance. You're maybe making a payment somewhere, but you're really driving kind of a transactional interaction with our wallet. Where we think we can go with the wallet is a little broader. You've heard us talk a little bit about making it more functional, driving more feature functionality into the wallet. And as I've just mentioned, just today, we've launched some more features into it to make it more functional. But as we go forward, we really think we have the opportunity to create a private label wallet, an embedded finance wallet. And so already, Rob and his team have built a great pipeline on private label wallets. So this is an example of what we do even with Binance today. So we drive a wallet for Binance. We think there's plenty of opportunities for others to do that, whether there's an affinity wallet. We have all kinds of opportunities. But these verticals crypto trading, gaming, sports, marketplaces. These are all places that we think we'll be able to leverage and drive a private label wallet in the marketplace. And we feel that we're very well positioned because we're one of the few people that can do it on a global basis. So very excited about the opportunities that we have here. So what makes it stand out for us versus everybody else. One, we've been doing it a long time. We understand the regulatory environment. We understand the licensing that is required. And those are all things that we're finding as we talk to our clients, they're looking for help with. And so these are things that we know how to do and we know how to drive. So we're very excited about the opportunity to really drive this platform, wallet platform as we go forward. And one of the things we start thinking about the private label wallet or embedded wallet is our own use cases, what are things that we can do to really take advantage and go directly to market for ourselves. And we really feel excited about an entertainment wallet. This is a space that we feel we have a right to win in. Based on the verticals that we're already at, this would be a consumer destination wallet for us. So unlike just the wallet of administration for our payments, this is a place where you can go and you can have a great experience at whatever event that you are. So at the end of the day, whether you have your tickets there, whether you have the opportunity to see what the line is or see what the bets of the day are, you have all kinds of information there to experience better whatever event you happen to be at. And I'm going to give you a great example of how this works. So for those of you who have not been to a Formula E race, I would encourage you to go do it. It's a great opportunity. And I was here in Brooklyn a couple of years ago when they had the Formula E race here. What I loved about the race was that it was very interactive. So you come into the race. You've got; one, they're all e-cars, so there's not a lot of noise, but they're zipping around. It's a fun experience. There's monitors everywhere. You have an app, so you become part of the race. You have the opportunity to -- so you have your tickets there, you're watching the race on the monitors. You're watching the races physically. You have the opportunity to vote for your favorite driver. So now you become immersed in the sporting event. And you can -- if your driver gets enough points, you can actually have your driver get a boost of power and they can go chase down the driver in front of them. One of the things that's cool about this is you're also having an opportunity to buy things. They'll bring them to you wherever you're sitting. You can get your food. You can get your jerseys. You can interact with the drivers. These are all things that we think that will emerge tremendously over the coming years and things that we can participate in. When we look at the assets that we have, when we look at the platform of the wallet, when we look at our acquiring business, all of these things are things that we can really drive to create this new entertainment future. And I think it's something for us as we look at additional revenue streams, longer term, this will be a place that we really dial in and focus on. So coming back to customer experience, product innovation, sales acceleration. I wanted to talk a minute about the sales acceleration, and what I was talking about, about cross-selling. So when we look at our markets and how we cross-sell, when you look up here, you'll see the purple line, the merchant acquiring, you can see it's over North America predominantly. That's where our base is. So while we have common clients in Europe, they aren't buying, acquiring from us in Europe, but they are buying it in North America. When we look at our digital wallets, we have common clients in Europe and North America, but they're buying their digital wallet from us in Europe, and they're not buying the digital wallet from us in North America. This was largely because of the way we were constructed historically. And this is what I'm talking about. When you look at those 800 to 900 top clients that we have, this is the opportunity for us to go back and cross-sell into those people. So we have a great opportunity to cross-sell into those, and this is an opportunity that was there for us, we just weren't taking advantage of it as we were set up. So we believe we're positioned for growth, reaccelerating our growth. We think we have great verticals. We think we have a platform that's very attractive with our 2-sided network. You're going to hear Afshin talk about our merchant wallet. And so we're going to take that wallet platform is another use case, and we're going to bring that to our merchants in the U.S., and we're going to start funding all of our merchants acquiring through that wallet. And we're going to have features that allow them to manage their SMB business out of that wallet, and that will be delivered this year. So this is us taking our digital wallet platform and driving it through our distribution in North America and creating a different wallet revenue opportunity for us as we're moving forward. And Afshin is going to walk you through that example here as he has the opportunity later on. So we believe we're well positioned for growth. We're very excited about the opportunities that we have. Again, we'll grow 6% to 7% this year. We'll have 100- to 150-basis-point margin expansion. We think that there's a lot to come from Paysafe and it's a great time to be invested in Paysafe. So with that, I'm going to invite my friend, Rob Gatto up here and he is going to talk a little bit about what he's done with sales and where we're going here in the near future. So Rob, thank you.

Thank you, Bruce. Welcome, everybody. Good afternoon. I'm Rob Gatto, I'm the Chief Revenue Officer. I've been here 8 months now, and my job is to transform the way we go to market. A lot of what I'm going to talk about is enterprise. Afshin, will talk a lot about the small and medium-sized businesses. Two definitional things before we get going. Bruce has mentioned a couple of times. We're 800-plus clients that we call enterprise. That's $100,000 or more in annual spend with us. You'll often refer to -- I'll refer through the presentation on ACV, which is the annual contract value. So those are sort of 2 definitional things you'll see as we go through. I'm super excited to share with you the amount of advancement we've done in just 8 months has been phenomenal. So let's get going. So context is important to understand where we came from. So when I got here, we had 5 separate sales organizations, was a sales rep, an account manager, each one sold a specific product, neither were compensated to sell anything else other than the product that they were aligned to sell. The marketing that was behind those particular teams was specific to the product that they sold. There was no verticalization at all, no expertise in gaming or expertise in video gaming or travel or leisure, just one rep, one account manager targeting a product. So what's changed is we've taken all those sellers, and we've organized them into one single team, one team that sells all Paysafe products. So the old strategy was an APM strategy. In the cash register, I was trying to sell one thing: eCash, wallet, credit card processing, debit cards. In the new world, I sell the entire Paysafe suite, and I try to sell a cash register with all the APMs that we have in place. So one rep, one team selling all of our products and then selling them back to the client base, those 800 plus, and then also selling them to new merchants in the verticals that we think are attractive. So let's take a look at the actual details. So we focused on 3 particular things. The first is on the headcount side, we organized our sellers by vertical. We've placed leaders in each of those target verticals. We now have sales reps and account managers paired together as expertise in a specific vertical. Every single seller, every single account manager is tied to a revenue quota, a book growth and a new revenue, new merchant quota, fully aligned top to bottom. We've created a single lead-gen area. And so where before we led with lead-gen on a product basis, we now lead with lead-gen expertise in a vertical. Every vertical lead has a marketing person that's attached. Together, they go to market in their vertical to sell all of the Paysafe products not just one product. And then last, we've created a set of KPIs to manage success. So I'm going to share with you a lot of the success we've had in the first 8 months, but we're really prepared to understand how we continue to get better each and every quarter. So let's take a deeper look at the verticals. So Bruce mentioned 5. On the sales side, we've organized them into 3. The first is gaming. Inside of gaming is the iGaming area as well as the video gaming area. I'm not going to spend a lot of time. We've got Zak Cutler here, who's an expert in that area. He now runs that vertical worldwide. The second vertical is digital assets, which incorporates a fairly large customer base of FX trading, our quickly growing crypto business and then all of your Web3, meta and virtual areas. Bruce mentioned the virtual F1 race, this would fit inside of the digital assets business. That's run by a gentleman by the name of Micah Kershne, we hired who is a veteran from the Worldpay Vantiv days. The third vertical is travel, retail and hospitality. That's run by one by the name of Chris Petersen, came directly from NCR as well as over a decade at FIS. It's really a great team, experienced, understands how to build the sales force, and then more importantly, one of our big opportunities is to sell acquiring back into our customer base. Both Micah and Chris come with an enormous amount of acquiring expertise, decades, in fact. You can't grow your sales force without support. So what we've done is also organized the many different support teams around the country, around the world, and we've put them into one support team. They're focused in 4 areas: traditional sales ops, all the mechanical things that support a sales force training, comp plans, pipelines; deal operations to make sure that as the deals move through, we sell the right deal and the right product and the right combination; presales, which is actually really important. When you think about where we're coming from, we're coming from a product-oriented sales force, and we're moving towards one rep that sells an entire product line. So we have a presales group that has expertise across each of our product lines. There's an eCash expert. There's a digital wallet expert. There's an acquiring expert. Each are there to support the sales reps in the field. So it's a great combination of people who understand the vertical with an underlay of support of folks that understand the product set that they may want to bring. And then last is Demand-Gen, which I already talked about. Field marketers aligned with their appropriate sales vertical. All right. So let's take a look at the priorities for the group. This is really straightforward. It's really simple. There's 800-plus enterprise clients that we could sell back to. I'm going to show you a stat in a little bit about how many of the 800 actually have more than one, and it's not a lot. So the first and foremost is to upsell new products into the existing customer base. This is Bruce's graph where he showed acquiring from U.S. into Europe and wallet in cash from Europe into the U.S. An enormous opportunity for us to go ahead and leverage the relationships we have within our existing clients. The second is to expand into new geographies. The logical one is LatAm. With the LatAm acquisitions, we have an opportunity to sell every one of our clients into Latin America. Again, I'll have an example of this and some interesting stats on what the opportunity truly looks like. That also includes North America, new provinces in Canada and new states in the U.S. Great example, last week, Massachusetts launched with 6 operators, 50% or 3 of those operators were launched by Paysafe. A great example of our client base moving geographically in the U.S. All right. So let's take a look at an example for each of these. So I'm going to start on the right side. There's 2 sections of these slides, start on the right side. [indiscernible] is an online trading platform, digital wallet client, 20-plus years, 20-year client. They own one product. The reason is they've only had one sales rep and one account manager calling on them for a decade. New structure, under 8 months, we sold acquiring it already in Europe. We're now moving our way into Latin America. This is the exact target image of what we have in front of us on an opportunity basis. And if you look to the left side of the slide is where it gets actually more exciting. Less than 5%, less than 5% of the 800-plus enterprise clients have more than one product. So I'm a sales guy at heart. I mean that's just an obvious fishball of opportunity. We have 40-plus current ones in the pipeline. And we've only been at this for less than 8 months. This is a great example of how we can take advantage of our client base. And frankly, at 20 years, these clients know us extremely well. The second example, this is another one of my favorite. Plarium is video gaming. This is even better. So Plarium uses eCash, but they don't use eCash direct from us because we do make eCash available via other payment partners. So for years, they've used eCash as a mechanism for folks to get money in to spend on the games. Nobody's ever called them and asking about another product, the new sales transformation, one rep, one group, acquiring. We brought acquiring in, and in the process of bringing acquiring in, we were able to convince the client to change the integration to bring eCash direct. So rather than through a partner, I now own the technology and the API integration into that client. And now I've got opportunities to move into Latin America, too. So I've got a double inside of just a single client that's been a client for a long time actually through a partner. And this is, again, when you look at the left side of the slide, where it gets pretty exciting. Less than 5% of our merchants currently leverage Latin America. Again, the 800-plus, less than 5%, there's 70-plus opportunities in the pipeline right now that are worth more than $10 million just to take our existing clients and to move them into Latin America. All right. Let's take a look at the last one. So I know a lot of you, when you think of Paysafe, you think gaming. We talked a lot about some of the other verticals like travel and hospitality and entertainment, retail, lots of opportunity, lots of green space for us to go into those verticals. Virgin Voyages is a great example of a client we closed 60, 75 days ago. So why did we win? Bruce talked about this earlier. Our expertise in the area of risk is why clients like Virgin Voyages work with us. We beat large acquirers, 2 of them in this particular sales cycle, and it was primarily because of our service around risk. Look at the left side again, opportunities. 300-plus new merchants that are in the pipeline at an average contract value of double of what it was prior to the transformation. I'm going to talk a little bit about that on another slide. But the idea here is that velocity, metrics, everything is getting better and the opportunities exist. So let's take a -- listen from an existing client. [Presentation]

So I heard 2 things, trust, I heard Latin America expansion, all the things that we're talking about. That was videotaped at ICE, the first trade show that we actually had where we had our vertical set, just a great client experience. So before I talk about the momentum, transformation at this level takes time. A typical sales cycle for us is 90 to 120 days. Implementation can be anywhere from another 60 to 120 days. So you're looking at 5 to 8 months. We're about 8 months in, and so we're beginning now to just see the KPIs and the metrics and the velocity, and they're all really good. If you look at the slide here, you start on the left, if you take the fourth quarter of 2022, our average deal size, so deals that we booked in 2020 -- in the Q4 of 2022 were double the size of any deal -- the average deal for Q1 through Q3 of '22 right? So you're seeing velocity on deal size. The overall contract value, the amount we booked in Q4 across all the deals was 1.5x what we booked in all of Q1 through Q3 in 2022. Again, velocity that's already showing up in Q4, and we're beginning to see that in Q1. And then the pipeline continues to grow. We're at 1.6 multiple from where we were when I joined here in January, just a tremendous amount of velocity. So I always joke that it can't be a sales slide -- it can't be a sales deck if there isn't a set of logos. A lot of logos here for Q4. But I want you to take 2 things away from here. These logos are much broader than just gaming. Paysafe is having success across all the entertainment verticals that Bruce talked about. The second thing is sales velocity. This shows nothing more than sales velocity. So I'm going to shift gears, and I'm going to move away from merchant and I'm going to move to consumer acquisition. But before I get there, I really want to leave you with 3 things on this transformation for merchants. To me, the opportunity is clear. Two, we've organized, hired and set our teams up in a way that they can have success. And I think, three, I've never been more excited and never been more sure in the 8 months I've been here, this is all execution. With the opportunity in the people in place, we will execute as we go forward. So I'm going to shift now and move into the consumer acquisition side. So Bruce mentioned earlier about the 2-sided marketplace. And one of the things that makes us attractive to merchants is we have all these consumers, right? There's thousands of touch points put cash in and cash out, the wallet, all of those are consumers that I can bring to merchants. And so it becomes very important that we continue to acquire those consumers and then we continue to invest and get them to stay active. So we use typical tactics to do this, organic paid partner. I'm going to talk a little bit about examples in each of these. These are not rocket science categories. But on the organic side, we do a lot of content marketing, a lot of content creation, a lot of movement across the social ecosystem to find places that we can engage with our clients. We do use paid media across the traditional social channels. And then I do want to talk a little bit about partners. I've got a few examples because partners are really an interesting way for us to integrate into the fabric of the vertical. So if you think about the movement from product orientation to vertical, we're now searching for partners inside a vertical, right? So let's take a look at how we apply these. So if any of you have done any research on me, I spent 20 years in ad-tech. So I'm a marketer at heart. I've been involved in billions of dollars of ad spend. And what I found is that if you could stick to a simple 3-level funnel, awareness consideration and acquisition, you can map your messages to each funnel, your tactics to each funnel and you leverage all 3. Too many companies spend too much time in the acquisition channel, trying to increase the ROI and forget that you have to keep putting consumers or buyers in at the top. So everything that we do, our tactics, our efforts are all thought before they're put in market, what stage of the funnel are they at, and why is the message important to the consumer at that point? Let's see how we apply it to geography because this is actually interesting, right? When you go via geography, Bruce showed the revenue breakdown. We have different -- we're in different spots in each of these geographies. So I'm going to start on the bottom right. in Europe. In Europe, we spend a lot of time defending, activating and then using influence from our existing clients to acquire new. We've got a strong base of wallet and cash users. The idea is to keep them engaged and activated and at the merchant. It only strengthens our merchant relationship. When you move to North America, we have a little bit less, right? So in North America, our strategies are much more driven around how to acquire new. And I'll show you some examples with Barstool, the merchant wallet that Bruce talks about. A lot of the tactics in North America will be all about gaining consumers whereas in Europe, they're a little bit more in defense and activity. And then LatAm sort of fits in the middle. We've got a little bit of both an opportunity to acquire new, which I'll show you an example of, but we also have a lot to continue to activate and to defend. So let's look at the topics. Any great marketing campaign is driven off how you can connect with the consumer. So in our case, we connect with the consumer across a number of different themes. Sports is the obvious one. Cashback deals, loyalty, those are all examples. Ticket purchasing in the future, Bruce mentioned that. Crypto and NFT purchasing, I want to show you exactly how we use that to drive wallet usage. Money remittance, bill payment, maybe not exactly in our verticals, but money remittance is a big thing, and it's an area that we spend time driving on the merchant side, and it helps the consumer. So I've got 3 examples. Let's take a look at the first one. So in Latin America, there's an enormous amount of demand to buy crypto, I know even in the crypto winter. But in Latin America, it's difficult. Money in, money out is not easy. The exchanges are not all in the different countries. You can buy and you [ can ] house crypto in the wallet. And so what we're doing is marketing to Latin America countries, offering incentives to make your first crypto purchase in the wallet. And as I acquire those consumers in the wallet, I now have the opportunity to stretch them sideways into all the other things they could do in the wallet, whether it'd be gambling or any other theme that we've talked about earlier. So this is a great example of using a theme, using a market and then going after that market in a multilayer campaign. We've got digital out of home, as you can see, and a bunch of social media. The second example, North America, new acquisition, right, all about new acquisition, Barstool Media, which is a cult-like following for those of you here in the U.S., we have partnered with them. They are now a gambling operator. They have a ton of marketing space available because most of the other gambling operators, they market it on Barstool, which is not allowed anymore. And so they also have a need in the early stages to drive VIPs into Barstool and away from other operators, and Zak will talk about this later. But what we've done is put together a really attractive VIP program around the wallet to drive those VIPs into Barstool and we've blanketed across the Barstool media properties. And I've got an example, if somebody, I think, can turn it on here. [Presentation]

Very cool. For those of you who really do spend time at Barstool, it is the way they read is on purpose. It's done in an edgy and character-based way. All right. The last example I have for you is AC Milan. So this is an opportunity for us to do a co-branding card, wallet, marketing to their football fans via their CRM, player involvement, in-stadium advertising, with the idea being growing the wallet and the loyalty card inside of the AC Milan fan base. To me, this is a great example where we would like to go, modelize in a nonsponsorship-type sports environment. We do all their payment processing, and it really grows the brand on both sides. It engages their football fans in AC Milan. And on our side, it really begins to get our products and services into help. And so I believe this is the last slide that I have. So before I go, like I said, I've been here 8 months. We had a tremendous amount of progress in the 8 months. I'm more excited today than it was when I joined, and I'm super excited to introduce at Zak Cutler, who's going to take you through our gaming side. So thank you very much.

Thank you, Rob. Appreciate it. Good afternoon, everyone. My name is Zak Cutler. I'm the President of Global Gaming here at Paysafe. Today, I'm going to quickly talk about the overall market sizing, then we'll get into our existing positioning, future opportunities. And then from there, we'll close on some exciting customer wins and testimonials. So starting with the overall sizing. This is obviously a huge market that we're going after that we expect to grow to $240 billion in deposit volume by 2026. We expect the growth to be led by both North America and LatAm, who both benefit from very high double-digit CAGRs. We expect North America to even catch up to Europe by 2026 as well. We're super excited about this because we feel that we're very well positioned to capitalize in these growth markets. So getting into our positioning, starting in North America, we're very strong in card acquiring and gateway, where we're live with some of the leading brands such as DraftKings and Caesars. We're currently live in 25 states with over 50 operators, and we have over 100% of the volume with the Canadian lotteries. We've also recently launched in Ontario, where we've launched some of the leading brands in a market that we expect to be in the top 5 over the next few years. Moving over to Europe and Rest of World, it's a bit of a different picture. We're very strong in eCash and digital wallets. We're live with over 1,000 customers with millions of active users and a very well-known brand. Moving down to LatAm. We're very strong in open banking and eCash, with PagoEfectivo being the leading payment type in Peru for gaming. So I want to highlight a statistic in New Jersey specifically, which really highlights how much growth is available in the North American market. So in 2013, in New Jersey's first year of online gaming operations, they did $120 million in GGR. 7 years later, they did over $1.3 billion. They nearly 10x'ed in a course of 7 years. The reason why this is important is because we are currently live in 25 states in the U.S. But of those 25 states, many of them are only in their first few years of operation. So that tells us, like New Jersey, they still have a lot of room for growth. Not to mention, California, Texas and Florida have yet to regulate as well. So we're obviously excited about these growth markets in North America and LatAm. But what does that mean for Paysafe in terms of revenue today and revenue moving out into 2026. So in 2022, we ended North America with $26 million in revenue. That was up 26% from last year, volumes are up 80% year-over-year, and this is well ahead of industry CAGR. So moving into the chart behind me, this growth was really led by our strong positioning and card acquiring and gateway. What you can see is still the #1 payment type in the North American market. And I want to be very clear, this pie chart is not Paysafe's market share, this is just the industry share of cashier and shows that most popular ways North American gamblers choose to deposit on the sites. So card acquiring is, #1, you have ACH at 33% and then getting into digital wallets, which has another large share. So what does this mean for us in 2026? We expect this to be a $100 million revenue opportunity for Paysafe by 2026. This is based on an expected $40 billion GGR, which will actually create about $700 million in addressable payments revenue in the online gambling space. So for us to get to $100 million, we really just need to maintain our market share in card acquiring. We need to get our digital wallet to single-digit share along with eCash, and then we need to get into low double-digit share for ACH in North America. These are all very reasonable and achievable goals for Paysafe. We're also super excited about LatAm as well. We also believe that by 2026, we'll get to $75 million in revenue for iGaming in LatAm, which would be up from $40 million, which we just did in 2022. So I think it's important to take a step back and really just remind the audience what it is we actually sell to the gambling merchants? Why they pick us, and why they stay with us for so long? So again, through one integration, an online gambler and an online gaming merchant can basically get access to any form of payment for money in and money out, whether that's ACH, card acquiring, digital wallet, eCash or any of our other 260 APMs. That, in and of itself, and I'm a former operator. I came from DraftKings, I came from Jackpocket, Betclic Everest Group . We've actually been a client of Paysafe's for over 15 years before I joined the company. And I can tell you that, that, in and of itself, is a very powerful thing through one integration. But in addition to that, we also have very deep industry relationships and industry experience, which is how we retain our customers as well. And because of that, we really -- over the years, we actually started North America by taking the first official wager in North America. And along the way, the data that we've collected and the experiences that we've had, they actually serve our customers very well and lead to increased conversion rates, optimization rates and even faster state entries because we really understand the compliance profile of these customers. And we work with the networks and the regulators to get them up and running faster than probably any of our competitors. And that's very noticeable in the stat that Rob just gave with our Massachusetts launch. And a lot of the press releases that you guys have probably seen where we're always first to market in every state with our existing clients. So drilling down a little bit further into how we're a bit different. Our digital wallet has also been repositioned to serve the VIP market in North America. One of the very unique features in this wallet is the fact that we offer a $250,000 deposit limit, and that is fully -- and that limit itself is fully indemnified to the operators, effectively giving 100% chargebacks. We also, again, as we mentioned, through one integration, have access to over 260 APMs. So we talked a lot about our current positioning and where we're currently strong. But I think it's important to highlight some recent changes we've made that I really do think are going to serve to accelerate our growth even further. So when Bruce came, he actually created the first-ever official global gaming division. And that division will actually serve to unify all commercial decisions under one person, which will allow us to effectively cross-sell multiproduct and multi-jurisdictional deals more efficiently than we've ever been able to do at Paysafe. So in North America, that means taking our strong card acquiring positioning and then cross-selling further into digital wallets and eCash more effectively. In Europe and rest of world, it's important to note that, while we're very strong in eCash and digital wallets, there's still roughly, in some European jurisdictions, 60% of that cashier is still card acquiring. Now we have these products to offer these merchants, yet in the past, we were not cross-selling them efficiently. Now we really have the opportunity to do that in the new structure. And then moving down to LatAm, it's the same thing. We're able to now more efficiently take the acquisitions that we did and cross-sell them into our existing European merchant base. So here are some -- we talked about the recent changes that we've made. And now it's pretty exciting to actually show some really great proof points and some deals that we've recently closed. So the first deal is still yet to be announced to the public, which is why we don't have the logo here. But this is a very large brand in the U.S. expected to be a future Tier 1 operator. And super excited to announce that they're actually taking all of our products in the U.S., inclusive of both Skrill and eCash. We won because of our long-standing reputation with some of the leading brands in the space, but also because, through one integration, they were able to get all of these bullet points that we sold. Another deal that we're super excited about is a newly announced deal with Rush Street Interactive. This deal was led with card processing and APMs in Ontario, with additional product expansion to come in both LatAm and the United States. Again, we won this deal because of our brand reputation, but also because of one integration allowing them to expand into LatAm, both the Ontario market and throughout North America as well. We talked a lot about Barstool Sports, but just to reiterate, we did go live with Barstool in mid-February. And again, this is specifically a digital wallet deal focused on their VIP segment, combined with a large marketing deal on their brand assets to drive adoption into Skrill in the U.S. Another one that I'm very excited about is Kaizen. This is a -- this is one of our fastest-growing merchants outside of North America, and we were able to bring them into the LatAm market with our PagoEfectivo product. So like Rob had mentioned, this is another example of a long-standing client that we are now up-selling multiple products into. And then finally, very excited, again, similar to Rob -- similar, as Rob mentioned, this is a very old client called [ Roots ] that's been around for a very long time at Paysafe with a digital wallet, eCash integration, and we've been able to sell them card acquiring for the first time ever in the German market. So you've heard me talk a lot about our strategy, our recent wins. Now we'll get to hear from one of our most well-known customers DraftKings. [Presentation]

And next, you'll hear from one more customer, which is Jackpocket. We'll hear from their CFO, Sean Siuda. [Presentation]

So those are really some great videos. I think they highlight the long-standing relationships we have in the space, what our customers think about us, the relevancy of our products and really the fact that we're going to continue to grow with these customers as they grow. So finally, just to summarize everything important, by 2026, we expect $175 million in gaming revenue in our growth markets of LatAm and North America. We have a single API with a long-standing reputation that you've heard about today from our customers that gets our clients and customers alike just about everything they need through one integration. The new structure that Bruce has created truly has proof points that we've demonstrated that show what we're doing is working. We are now able to more efficiently cross-sell and upsell, and we're super excited about our growth opportunities in this space. Thank you.

Okay. Thanks, Bruce, Rob, Zak. We will have time at the end to take questions from Bruce and the team, but I did want to give the opportunity now midway through the agenda. If you have any questions on part 1, particularly for Rob, Zak or Bruce, we're happy to take a few now. And [ Darryl ] will help us in the back, too, with the mics. So just feel free to raise your hand and we'll pass you a mic. If you could just share your name and firm, that would be appreciated.

Ramsey El-Assal from Barclays. I was wondering if you could, Bruce, talk a little bit about the balance between -- or maybe what inning you're in, in terms of business investment to sort of achieve some of the new product road map that you laid out. How do you strike that balance between pursuing all this opportunity whilst also keeping an eye on the profit line?

Yes. So I think for us, what we've really done is we tried to simplify the business, right? Right out of the gate, we looked at the business, we said, "Okay. How do we simplify the business?" We've looked at the merchant acquiring and Digital Wallet businesses. We said, "Okay. Great. What do we need for those businesses?" And so what we've done over the last 10 months is we've actually gone in and made a bunch of changes within the organization to pay for a lot of the investment. So you'll notice that we have 3,300 employees. That's down from 3,500 at the beginning of the year. So we've gone in. We've made adjustments. We're going to continue to do that, where we're self-funding a lot of the investment that we're making in the organization. So when you look at our CapEx, for example, we've really just gone through a more rigorous process around CapEx and where we're going to spend the money and taking the funnel, if you will, of BAU spend and bringing that to new products and balancing new product into that CapEx spend. So for us, right now, it was -- today was about really giving some texture and context around the changes that we've already made, why they've positioned us to be successful going forward, and some insight into the innovation that we think we can bring without adding a lot of cost structure. And as I said, when we look at this year, we'll have a 6% to 7% growth rate on the top line, but we'll also have [ 100 and ] 150 basis point margin expansion as well. And we expect that margin expansion to continue as we're moving forward. So we feel like we've got the right platforms. We have the right assets to build off of. We now feel like we've got the right team and we're putting people in the right places. And what the guys have been able to share with you is that those things are working. And when I came in, one of the things that I talked about as a signpost of things are working was really about our ability to sell multiple products into a customer. And from what Zak and Rob have just talked about, we're showing that we can do that, and that really means great things for us as we start moving forward.

Scott Wurtzel from Wolfe Research. Maybe one for Zak on the competition for different payment methods in North America iGaming. So the ACH open banking seems like it's a pretty large share of the cashier, and just wondering how you view that space and what Paysafe can do to make further inroads on the open banking side of things.

Yes. That's a great question. So the good news is right now, through the gateway, a lot of the brands that you saw on that segment of cashier, we actually already plug directly into our clients, and we're actually monetizing that along the way. So we're already playing there. I do think that we will devote future investment to perhaps enhance our positioning in that market, which I do think will gain over the long term.

Sort of a follow-up question, and this has to do with the cross-sell opportunity and sort of how you think about competition in that process. In other words, when you are going in and enacting the sort of cross-sell, I guess, going both ways, is it the type of situation where you're having to displace a competitor internally who's handling that other function? Or is it more kind of greenfield? Or how do you think about the competitive environment in that kind of cross-sell context?

Yes, I'll take that one. Great question. So I think there's 2 ways to think about it. In the existing customer base, all merchants want less technology. They want one API. And so there's definitely an opportunity for us, given we're inside with eCash and wallet to bring acquiring in. Even if we're in the #2 slot or the #3 slot, there's significant upside, and they can embed it into the API that's already there. So that would be one way on an existing. I think the second way in existing is just bundling, right? So we've got an opportunity on a price bundling perspective to end up with double the revenue by requiring a certain percentage of the credit card processing and return for maybe a small concession on the wallet or cash side. So we've got some unique bundling opportunities that other players don't. Now I think on new merchants, you have the exact same thing. So if you sort of get out of the customer base, you think Zak and I in a deal, a brand new deal, the opportunity to do multiple products. We've got a single API. We've got 200-plus APMs. And again, we've got the opportunity to bundle the pricing. And maybe the acquiring ends up being a little cheaper in return for the fact that you take cash and you take wallet with it. And oh, by the way, the implementation is simpler. So we feel pretty comfortable that we can compete pretty strongly.

Yes. Just to add one thing to that. So if you've taken Digital Wallet and eCash from us for a long time and you're spending the exact same amount on card acquiring with someone else but not through us, it's very compelling if there's a discount on what you're spending through us the same amount elsewhere through one integration to net savings to the customer. So it becomes very competitive when we get in with these multiproduct deals.

Just a plug. We were on ICE, largest gaming show, in January, and we had at least 10 clients that the 3 of us met with that all said the same thing, that dealing with one person at Paysafe has changed their life as an operator working with us. Because before, that sort of deal could not have been done, that sort of pricing adjustment country-to-country. Now with one exact, Zak, in charge, he can make the call as to how he wants to bundle the pricing together country-to-country for an operator.

Yes, we had one in the middle here, too.

Aditya Buddhavarapu from Bank of America. Firstly, on the merchant acquiring where you say now #3 on customer experience, could you maybe talk about where the gap is between you guys and the first 2 players? So what you need to do to move up further in that ranking? And then second, on the merchant acquiring cross-sell, so you spoke about iGaming, how you can cross-sell the digital wallet functionality into the merchants to get the merchant acquiring, how do you approach the other verticals, whether it's travel or hospitality, retail and those things, if you want to upsell the merchant acquiring bit?

I could take the second. Do you want to take the first?

Yes. So the answer is I don't know what the gap is between 1 and 3, but it's something that we just brought a focus to in the back half of the year. So it's something that we're focusing on as we go forward. So we actually have J.D. Power coming in. They're walking us through where we score versus where others score as part of it, and we'll continue to work on that. It's going to be a theme for us as we go forward. We do believe that it creates value for us probably just like many other people in the marketplace. But what we can see is marked improvement, and we'll continue to be committed to that and drive that forward as we go forward.

On the second question, it really depends on the vertical. So in the gaming environment where you've got iGaming and eGaming, it's a straight cross-sell of acquiring into those groups. Large customer base, they're all ripe for it. As we move into digital assets, it's a little bit of a mix. We've got a very strong FX trading base. So we've been selling and acquiring and Latin America expansion into those clients. But in the crypto environment, we don't have as much. We're early stage. So it depends on what the client wants. So on crypto, we start with wallet and cash as an entry mechanism, and others that are actually taking acquiring as a starting point. A little more greenfield. And then in travel and hospitality, I think it's similar to crypto, it really depends. Most of the travel and hospitality I've worked with, it starts with acquiring and then they want to learn about a private label wallet. Bruce talked at length about the embedded wallet. And so you begin to think about an embedded wallet like AC Milan co-branded card. You bring loyalty in, but typically in those verticals we're seeing acquiring as the entry point as opposed to the cross-sell.

Chris Brendler from D.A. Davidson. I had a question for Zak, actually, about your U.S. revenue goals. How much of that would be -- if you can talk about how much of it would be the eCash and the Skrill business, because that's a smaller base but it's a higher-margin business. So I was just wondering how much of that is in your plans to grow that business?

Yes. So we can give you probably a more specific breakdown off-line, but what it assumes is heading into 2026, that we get to single-digit share of that segment by 2026. So if you -- that assumes take rates around probably 2%, if that makes sense.

All right. Let's -- did you have a question? Okay. Let's do a 5-minute break and then we'll start back right at 3.

Thank you.

Thank you.

Thanks. [Break]

All right, 2 or 3 minutes, we're going to get started again. Okay. We're going to get started. All right. Thanks, everyone. We're going to get started again. I'd like to welcome Afshin Yazdian, our President of Merchant Solutions.

All right. Good afternoon, everybody. Afshin Yazdian, President of Merchant Solutions. Thanks for coming back. Hopefully, you got some coffee and got to shake it out a little bit. I'm excited for today. We're going to talk about a couple of things that kind of explains to you where we are today. So first and foremost, we're going to talk about we do. I know that comes up a little -- it comes up very often during some of the investor calls. Who we are, how we got here, why are we winning, how we go to market, and most importantly, where are we headed in the future? I think that's an area that we want to really focus on as well. And there's 2 principles and 2 things you're going to hear me say over and over again throughout. One is simplicity. We've had a lot of success simplifying our business, and we're going to continue to focus on that. And then second, something we've talked about a lot already, which is this customer experience. A lot of what we've done over the last couple of years is really focused on our customers, focused on the experience that they have, whether it's our merchants, whether it's our third-party partners, that's what we're focused on. So let me tell you a little bit about where we are today. For the merchant processing group, we processed about $110 billion of volume in 2022 through 1.4 billion transactions, servicing about 250,000 merchants. 50% of our volume is card not present, and these numbers in the U.S. alone have made us the fourth largest non-bank processor in the country. What we have is scale and we have stability. And using that scale and stability, we've continued to grow our volume. Last year, we grew at 10% volume. Our transaction count grew at 7%, and our revenue grew at 10% as well. We serve the largest part of the market with the greatest revenue potential. So in the $160 billion merchant acquiring net revenue pool, 75% of that growth is coming from the SMB market. While we have a lot of mega accounts and we have a lot of micro accounts in our mix, our real focus is on that SMB, even some of the enterprise accounts who we consider mid-market. That's who we focus on. We love that space. It's the highest number of merchants. It gives us plenty of room for growth as we continue to expand. And our sales channels, which we'll talk about here in a minute, is built for this particular market. Today, 90% of our revenue comes from the U.S. and Canada. In those markets, we have an incredible enterprise gateway. We've got integrations with third-party processors. And we have both a direct and third-party marketing and sales channel that we utilize to go after the market. We're strong in the SMB business, card not present business as well as the card present business. We also have a lot of vertical-specific integration solutions that we focus on in that market. In Europe, we are an acquirer of record. We have our own processing platform that we use there. Our focus has been historically the e-com segment and utilizing our APM solutions that we talked about, and we'll talk a little bit more today during my presentation about the opportunities that we have in Latin America, where we currently have APMs there that are available. You've heard Zak talk about them a little bit on the gaming side. We're in the process of expanding our merchant acquiring business in Latin America as well. In terms of the markets that we serve, merchant style -- merchant types, excuse me, iGaming, retail health and wellness, and travel and leisure makeup over 90% of our market base in the U.S. and in Europe. So how do we sell? We have a great, very unique, scalable model. 50% our growth comes from our direct channels, while 50% comes from our relationships with ISVs and third parties. On the direct side, we've got a global direct sales channel that's focused on our key verticals. We've been growing our enterprise sales channels. You heard Rob talk about that. That's a huge opportunity for us that we're going to continue to grow. And we also have an inbound and outbound marketing team predominantly based here in the U.S. that generates leads, again, typically focused after the SMB market. That's our go-to-market strategy on the direct side. On the ISV and third-party side, we've built a beautiful scalable platform. I'm going to show you exactly how that works here in a minute, that allows us to service our partners. We've got competitive solutions. We've got a lot of products. We've got a lot of differentiation. We have a lot of optionality that our partners love. And then something that's very unique in the last few years: we've built an incredible infrastructure that our partners actually rely on to operate their own businesses. So as they become more and more dependent on Paysafe, we create a much better, closer relationship with our partners and our ISVs where they're able to focus on their customers, they're able to focus on selling and rely on us for a lot of infrastructure. Keeps them sticky, keeps them close to us and it continues to help us grow our business in that segment as well. So on the merchant side, what sort of separates us? What sort of drives our win? What are we using to differentiate? One huge opportunity for us is optionality. Unlike a lot of our competition, we have a variety of pricing, products, services that our customers can use. So whereas some of our competitors have 1 price point or they have 1 particular product, the fact that we have a lot of optionality and the fact that we have many different prices and pricing flexibility, a lot of products and services that we can offer to our merchants, has created a lot of opportunities for us that we take advantage of. We've invested a lot in our risk and data-driven underwriting systems. So we're able to make decisions faster. If you're an SMB, you've got a lot of things you have to worry about. If you're looking for a new merchant account, you want to hear quickly. So we're able to give very quick automated answers and we're able to provide a frictionless rapid onboarding process for them. We have many instances where merchants can start processing with us same day. So this concept of giving them a lot of optionality, fast onboarding, quick decisioning has been a huge driver for us in our growth the last few years. Customer service seems to be the theme of the day. I'm going to bring it up 1 more time. We talked about the J.D. Power ranking. When I look back over the last couple of years, this is the 1 area that I think I'm most proud of. We really focused on what I call the customer experience. I think you asked the question earlier, what separates us from being #1, #2. Our customer experience is not just about hiring more people to answer the phones. It's this concept that we've created where we've created a lot of self-service tools. It's the experience that the merchant has from the moment that the merchant applications comes through to quickly respond to them, to the experience they have, if they do need something from us. And so we're going to continue to improve there. We're going to continue to invest there, and I'm very excited about that. But the ranking is something we're proud of. It just is one example of all the investment that we've made coming to fruition. And then, of course, the specialized verticals. With a lot of our merchants, we've got proprietary capabilities. We have third-party solutions. We have integrations. We have the expertise that a lot of our merchants', in particular, sectors need, and we utilize that, and that's a huge strength for us as well. When it comes to our partners, we've got sort of the same value through what I call our simple, single point of access. So what we're looking at here is a partner can submit a single application through our system and get access to a variety of different processors, multiple POS solutions, gateways, features, products. And then we've got this incredible banking network, this bank relationship network, that helps us basically find a home for most of our customers. So the perfect example is an ISO or a third-party ISV that submits an application to us. Typically, instead of having to go to different of our competitors to try to find a home for their account, they know that if they submit an application to us, we will find the right processor, utilizing whatever processor they may want to select, to make sure that we have a home for that particular merchant. A lot of times, again, this goes back to the optionality. If we're bringing new business on, it might avoid having to go and reintegrate with one of the processors. We have a variety of POS options, gateways. We use a lot of different products. We have a lot of POS companies that work with us, so you're not limited to just one terminal. You're not limited to one gateway, you're not limited to one product. And then I think one of our greatest strengths is the depth of our banking relationships. By having such a broad base of things, we basically ensure a home for most of our merchant applications. Different banks have expertise in different verticals. Different banks have different risk appetites. Our ability to have these relationships with the bank, again, through the single source of application coming in, allows us to pick up a lot of market share from our partners who no longer feel like they have to shop merchant applications around, they're able to come to us for a yes. Another thing we're proud of is that we have built, over the last couple of years, we spent a lot of time integrating all of our different systems. So we now have a unified infrastructure that ensures consistency and a great customer experience as this goes along. So no matter what platform you're using, no matter what product you're using, no matter what bank you're with, we have consolidated all of our underwriting. We have centralized support, so the merchants and the partners have a very consistent feel and it's really showing in terms of how long our customers are staying with us. how much more of their market share we're able to capture on a go-forward basis. And one other thing that I think has lost some times of importance is the fact that we've created a consolidated report for the partners, excuse me. So instead of getting various different reports, whether they're using -- whatever platform that they're using, whatever bank they're using, one single report that they can look at to see what their business looks like. And I brought up the concept of depending on us for infrastructure. This allows them to focus on selling to the merchants and allows us to support them in any way that we can. So that's a little bit about who we are, how we got here and some of the success and some of the reasons for the success we've had over the last couple of years. Want to now talk a little bit about the future. What are we focused on as we think about 2023 and beyond? And there's really 3 areas that we're going to continue to focus on. So first is the opportunity that we have in e-commerce. You've heard -- you've heard Rob talk about it a little bit earlier today. You've heard Bruce talk about it. We are winning in e-com, but I think some of the activities and some of the actions we're about to take will allow us a greater opportunity to expand faster in the e-com business. We will continue to focus on SMB. We've built an infrastructure that is scalable, that's going to allow us to continue to win in that market, and I'll dive in a little bit there. And the third, which I'll talk about, obviously, a little bit more, is this concept of continuing to pioneer. Paysafe's been around for a long time. It's a business that has forever been innovative. It's always been ahead of itself in terms of knowing, as Wayne Gretzky likes to say, where the puck is going, not where the puck has been. We've got great people and our ability to continue to be pioneering, to sort of look ahead about where we can add value to our -- both our consumers and our merchants will be a key focus for us as we move ahead. So first, e-commerce. Expectations there are double-digit growth in the future. How are we going to do that? A few different ways. We've talked about cross-sell. We've talked about the ability to go into our existing book of business and sell them to the point they're using wallets. How do we start selling them acquiring? We have a lot of opportunity there. I think the changes that we've made in our go-to-market strategy will be a key driver in that, and I think some of the investments that we're making in people that we've hired, people that we're bringing on board will help us there as well. Supporting our customers' global ambitions, we are going to talk a little bit about geography and geographic expansion in merchant acquiring, specifically. But we're already very strong in the U.S. and Canada. We're going to continue to be able to follow our customers, whether they want to come into the U.S. or go to some of the other markets that we're going to be playing in. So just simply following our customers where they want to go, making sure that they've got a single solution to work with will help us drive that. And then continuing to leverage the platforms that we have, our APMs. We're going to continue to make the process of integrating and working with Paysafe that much easier. We're going to continue investing in our infrastructure. So very similar to what we did in the U.S., in particular, on the SMB side, where we've made it very simple, quick answers. We've invested a lot in our customer service and our infrastructure, the reporting, everything that comes with it. We'll have the same focus on making sure that our e-com business and our e-com customers have that same experience as well, and then we'll continue to invest in products, features, knowing what the market needs, making sure that it's easy to integrate with us will be a key component of that. On the SMB side, we've had incredible growth over the last 3 years. We've done this, as I mentioned earlier, we simplified our business. We focus on the customer experience, and we'll continue to do more and more of that. The single point of access, we -- this has been live for about 6 months now. We're starting to see the results. We have plenty of examples where partners that were sending business to a variety of different competition, we're starting to get more and more of their business. We're getting more of their market share. We're getting more of their applications. We think this is an area that will help the banking relationship that I described, our ability to say yes more, to be quick in our responses has helped them as well. Customer service, we are going to be #1. No one thought we'd be #3. No one thought -- I don't think J.D. Power even knew about us a few years ago, Bruce. The fact that we've made such great strides, such great improvements, the culture there in our company has changed completely where customer service and that experience becomes a key driver for us. We're holding on to our business a lot longer. We're seeing less attrition as time goes on, especially in the SMB world, so I think that will help us continue with the growth. And then we're going to spend a lot of time and effort, and I've got a slide that I'll get into here in a minute, about product, how we offer the products, the way we go to market, again, knowing that we're going after that SMB channel, how quickly we can provide the products that they need for their businesses. to move forward. And then this concept of easier onboarding, we're constantly working to make that process very frictionless, as I like to joke. Small business has a lot of things to worry about. They're worried about their employees. They're worried about if the coffee shows up and all sorts of things. We want to make the process of signing up with us as easy as possible. This will ensure our continued growth in that SMB channel. And we talk a lot about customer service. I'm not going to read these quotes to you, but one of the biggest changes, I think, that you'll see at Paysafe, especially in the merchant solutions group, is that our customers look to us as solution providers. They talk about how we let them get to market faster. They use words like efficiency and effectively helping them grow their own business. So it's not just growing our business, but we're helping them grow their own business. This idea of our product depth, our expertise. I talked a little bit about the special verticals where we have a lot of expertise. We have a lot of our customers that come to us looking for solutions, and we've really become that -- we're taking on that role within their companies. And our partners as well, ISVs, they look to us truly as a partner. We work with them now to help them grow their business. We're investing in their business where we can. And so the culture here is really that of a partnership. It's that whether you're an ISO or a merchant, we're here to help you grow your business. Continued pioneering is the third area that we're going to really focus on as we grow our business. We're going to talk a little bit about geographic expansion. We'll talk about something that I'm incredibly excited about, which is the merchant wallet. We alluded to it earlier, and I'll kind of get into the weeds of exactly how that's going to work. And then what we've built already is an incredible distribution model. We focus on merchant solutions. How do we take that same distribution model and now start to sell other products to the same merchant base. So starting with geographic expansion. Most of our Merchant Solutions business today is in the U.S. It's predominantly -- I think I showed you the stat, about 90% here in the U.S. Paysafe was actually started in Canada, still has -- we still have a big presence in Canada. We have a big office in Montreal. We have an infrastructure there that we just need to sort of go in, make a small investment in. We've already hired salespeople. There's opportunities for us with our gateway to continue to grow on the e-commerce side. We've hired salespeople there in the last couple of years -- last couple of months. They're starting to have some effect. We have our direct sales channel now selling into Paysafe. So it's a little bit of a focus. It's an area that we lost focus on, and it's a huge opportunity for us. Europe, very similar. Europe has always been a stronghold for Paysafe. We have -- as I mentioned, we're a direct acquirer there. We have an incredibly strong banking relationship. Through different efforts, including a lot of the effort that Rob talked about earlier, we are focusing there on how we can continue to grow. We're going to spend some money there on bringing in some great people. We've hired product people to help us make sure that we have the right products and services in place. We're -- again, customer service. We're enhancing the way we provide information to our customers in that channel. So I think we'll start to see a lot of growth there. And Latin America is a huge opportunity. We did a few acquisitions have merchant relationships there already. Now we're investing in becoming an acquirer in Latin America, and I think it will give us a great opportunity, a great chance to grow in that market as well. This is the thing I've been most excited about for 2 years. This concept of launching our merchant wallet to the SME business here in the U.S. So first and foremost, it's exciting because it's an opportunity for us to leverage a product in something that's already here. We're using our own digital wallet, sort of repurposing it, if you will, for something that's going to help solve a problem for a lot of SMBs. So the easiest place we're going to start is this concept of immediate fund settlement. How do we get funds to our businesses faster, quicker? I tell the story of driving by McDonald's near my house. And the sign outside doesn't talk about the food or McDonald's, doesn't talk about whatever specials that they're running that day. The sign simply says, we pay our employees daily. So this concept for -- even a McDonald's, the concept that they need, they want access to capital faster. They need to be able to use their settlement dollars to be able to pay their employees. Small businesses are in the same situation. And unlike a lot of the larger companies, they're not going to have a balance sheet, so the access to be able to go and source funds. If we can get funds to our merchants, whether it's throughout the day, think about a restaurant in California that's got 3 shifts, how do we quickly get them funds? How do we use this wallet as a way to give them the access? And most importantly, they're able to use it to pay their employees. They use it to pay their staff. They could potentially pay their vendors. So we start to create this flywheel effect. We solve the solution for our merchants, but it's also creating customers for us on our wallet. So it's a very exciting thing. The wallet will also serve another purpose for the merchants. It will help them drive a stronger relationship with their consumers. So again, for a small medium business, how hard it is for them to be able to attract customers, maintain a relationship, develop some kind of a connectivity, as I like to say, to their customer base. So we'll add products like loyalty and rewards, and their customers will start using these wallets as well. And so when you think about it from the SMB side, when you think about it from the merchant acquiring side, we're solving a problem for our customers, our small medium businesses. From a Paysafe [ Century ] perspective, we're bringing together this concept of the merchant and the consumer. We're helping drive the wallet here in the U.S. in a way that I think will be very effective. So parts of this will start to launch later this year. And I'm, like I said, very, very excited about this. I think this is something that we'll begin to differentiate us in the marketplace. And then finally, I've mentioned several times this great distribution model that we've created. We're having a lot of success. We onboard a lot of accounts. We do it quickly. We do it frictionlessly as best as we can. How do we take the same concept that when we use our iPhone, the ability for you to go on, pick an app for whatever service, whatever application it is that you're looking for. How do we bring that same mentality from a product distribution? I mentioned with customer service, it was not just about hiring more people, making sure they answer the phone, but concepts of self-service. Nobody wants to pick up the phone and call it customer service anymore. It's all about self-service. It's all about wanting to do it yourself, typically on your computer or these days on your phone. So we're working to add a variety of different products, things that we know our small and medium businesses will need, and giving them the ability to buy that through us. 3 things that will do for us. One, we'll talk about the differentiation, something that we will be able to do that a lot of our competition can't do, and utilizing our distribution model. Second, obviously, it's additional revenue and income for us. We're excited about that. And third, I think it does create a sticky -- a greater level of stickiness with our merchants. The more products that they're using with us, the stickier they are. The numbers have shown that historically. So that's my presentation. I did it right on time. I'm proud of myself. But I want to leave you guys with a couple of things. When you think about our merchant group, we are a U.S. market leader. We've really turned this business around. It's going fantastically well. We've built an incredibly strong distribution model that's going to continue to grow even faster. We're stable. We're efficient. Our infrastructure is scalable. So the ability for us to continue to grow is there, and I'm excited about that. We have an incredibly talented team. The team that we have at Paysafe, the people that we have, there's passion there. You saw some of the projects we're talking about in terms of being pioneering. The people are here to make that happen, and we're going to continue to invest in our products and our services and continue to improve. And while I'm very, very proud of our past accomplishments, I'm even more excited about our future. So lots of good things happening. And so I get the pleasure now of introducing somebody who claims he doesn't need an introduction. He claims everybody knows him. But in just in case, it's my honor to have Alex Gersh, our CFO, come on board.

What do we press?

The green button, green.

Green is go. Good. I'm old school, so my notes are on the thing here. So I don't know how to use any of this fancy equipment that they have. We'll just go straight into the presentation. So I joined on October 3. And I joined -- when I -- and I think about what companies I joined. I joined for a few reasons. First of all, of course, I met the team. They're great guys. But let's face it, there are a lot of great guys everywhere, right? But then you look at the business model and you say to yourself, here's a company that has scale, right? Here's a company that returned to growth in many geographical regions. So it has scale. It has geographic diversity. It's growing in the U.S. It's growing in Latin America. It's growing in Europe. Here's a company that has interesting diverse customer base. You got over 250,000 merchants. You've got over 19 million consumers. You kind of think about how you can bring it all together. The words like upsell and cross-sell, you keep hearing here, right? You start thinking about that. And then, of course, as a CFO, you think to myself, can this make money? And then you look and go, "Yes, it makes money." Interesting, right? It's profitable. It makes money. And then you really go down and go, but doesn't really produce cash, because we all know about U.S. GAAP and all the other GAAPs. And then you go on, 2022 was not a great year. Let's look at it honestly, yet $300 million of cash was generated. So in an average year, in the year before the company really fully returned to growth, still generated $300 million of cash. That's when I was sold. As soon as I knew that the cash was coming, I said to myself, this is the job for me. And this -- I think this kind of underscores what I've just said. 2022. Tough year. Ukraine war, FX headwinds, regulatory headwinds. If you look at the second half of the year, the company has returned to growth. We see it now. The growth is accelerating. Digital wallet is doing a lot better. Very, very good to see. Very exciting to see it. New products, new innovations, the customers like it more. What's not to like? And of course, Afshin's business continues to go from strength to strength. So you're looking at these things and you're going, "the growth is back." I always like to look at the numbers the history to show me what the future could hold, and you can see second half of the year starts to show you that growth opportunity. So what is our focus for 2023? You've heard a lot of this year. I don't want to keep repeating the same thing, but I will, just in case you didn't hear it fully. So cross-sell and upsell opportunity. With all those customers, all those merchants, absolutely the right thing to do. And it doesn't cost that much to cross-sell, right? So the marketing investment, it's not enormous to do it, which is why we get down back to the operating leverage in the model, which is so important. Focus on bringing our products to new geographies. Again, we've got all of these geographies present and taking advantage of the existing customers and the new customers relationship to drive our products. And then, of course, new product innovation, right? Company generates cash. It has opportunity to invest in new products. We can do both. We can deleverage, which is what I dream about every single day. But we could also invest in the new products, right? That creates a very, very powerful engine for growth. And of course, cost efficiency. I'm a b****** when it comes to cost, really. These guys don't know what they got themselves into, quite honestly. But I think it's very, very clear to me that we can generate operating leverage. We have shown it. I am -- we talk about 100 basis points for next year in our guidance. I'm sleeping well at night thinking of those kinds of numbers, right? And that's just the beginning. I think there's an opportunity to keep going with that, right? So I think -- and the cash generation, again, continuing cash-generating machine is working, and it's working very well. So those are things that we will continue to focus on as we take it to 2023 and beyond. So scalable business model, as I've said to you. You could see the breakdown in our cost here. I think there's only a couple of things I'm going to say. When you look at cost of sales, what is our opportunity? E-commerce is an opportunity, right? There's no question about it. Direct channel acquisition and our merchant acquiring is an opportunity. Those will drive margin, they are higher-margin products for us, right? Digital wallet is an opportunity. What you see in digital wallet is a higher-margin product and some of these new innovations, you heard from these guys. This is another opportunity. So cost of sales, that's what's going to drive the gross margin. Then you go beyond the gross margin and you start to look at the SG&A kind of, right? Our head count, 3,000 people. Today, 43% of them approximately are in Sofia, right, Bulgaria. So we will continue to invest, but we will invest in a lower cost location. Very important, we'll continue to drive the margin. Office footprint. 2022, we reduced it by 69,000 square feet. We will reduce it in 2023. We continue to focus on cost. I don't care. I'm ready to work on the street, for all I give a c*** about, right? So we just get rid of that cost and put them all out on the street, put them on, on the computer and a little chair. Florida is warm. You can do that on the beach, anyway. And then, of course, you're looking at things like our vendor. So we're going to take a look at our vendors. I'm already taking a look at consultants. I looked at our insurance cost. There will be a couple of more things we could look at. There's no question there's some squeezing to be done. No question about it. So we will squeeze a little bit, and we will see what happens. And so I think -- and I think the -- you could see -- some of the other things that are on this slide. But all of the things that I just mentioned, again, make me very comfortable with the guidance and the improvement in the margin that we have talked about in our guidance and that we talk about in the next few years. The leverage will continue. I hate leverage unless you buy something and then you have so much cash and EBITDA that it deleverages really quickly again. So we will continue to focus, and this is a management focus. We will continue to get the deleveraging down. But the most important thing is that organic growth revenue, right? Bruce keeps talking about revenue growth, revenue growth. These guys kept talking about revenue growth. With this kind of growth, we can generate enough cash and deleverage and continue to invest in the business. And again, I'm just repeating the same things, but that is the goal. CapEx. We're a CapEx-light company, I would say. The most important thing about this chart is in 2023, that you see there is a shift. Yes, we continue to spend a lot on our platform. We have to. But these guys talked about innovation, and we are going to invest money in the innovation, right? We're going to -- the whole point of cash and investing in innovation is to try to develop a competitive advantage against your competitor. And I hope is that some of these things, whether it's merchant wallet, whether some of these other things that you've heard today, will allow us to develop a competitive advantage against the other players and continue to win, as these guys have been doing already. Okay. Debt. Big slide. Lots of numbers simply to say we're very comfortable with the debt level. As I said, we finished the year at 5.8x EBITDA on net debt. We will get down to 5.3x to 5.1x by the end of 2023. And as I said, our goal is to 3.5x. I think the only other thing in this environment, people ask -- most of you probably know. Roughly 81% of our debt is fixed in the interest rate, effectively notionally or through swaps, but it's fixed. So the interest rate, the huge interest rate fluctuation don't really affect it. We just need to keep generating cash and paying this thing down, which we will absolutely do and continue to do. Okay. I'm going to reiterate the guidance. Bruce already said it, but it's my last slide, and I've only taken like 5 minutes, and I just want to stand here for a few more, if you don't mind. So we'll just do that. So revenue growth, as we said for next year, $1.58 billion to $1.6 billion. Nice little 6% midpoint growth rate. Very pleased with that, and again, showing the turnaround happening. EBITDA, adjusted EBITDA, $452 million to $462 million, and represents growth of 11%, talking about operating leverage. And you can see it here, 100 basis points in margin at the midpoint, improvement. And for the medium term, we expect the revenue growth, as I think you saw here, 8% to 12% for the next 3 years, with EBITDA growth in the mid-teens. For those of you who are busily trying to do the model, we expect both businesses to achieve roughly the same revenue growth of high single-digit, low double-digit growth, right? So we expect them to be roughly the same for the next 3 years. On that note, I'm going to leave the stage. I hope you enjoyed it, and I'm going to give it back to Bruce to take us home at this point of the proceedings.

Thank you, Alex. Great slide. Just really a couple of comments. One, I thank you all for coming. Really appreciate it. We will do a Q&A here to wrap up. I'll ask the team to come on up and answer any questions that you may have. I do want to thank the team that's here up front and in back for everything you guys have done. For me, I just wanted to tell you, I'm really excited. As I'm coming up on the first year of being here, I came here to Paysafe for a couple of reasons. One, I wanted to grow a business. I really wanted to get back to things I had done earlier in my career and really grow a business and have the opportunity to have an impact on what we're doing. And what I love about our team, our people at Paysafe, is they're very passionate about what we do. And we do believe that we have an opportunity to do something unique and really take advantage of the assets that we have within the company. And I think they are really unique assets. I love the fact that we have a consumer and merchant model that allows for us to really accelerate growth as we move forward. And so very much looking forward to '23 returning us to growth in the manner that we talked about. And pushing the team to innovate, be adaptive, get better every day and really accelerate what we're doing and helping our clients, right? At the end of the day, for me, as I think back on my career, it was always about helping. Whether I was doing my startups or later in my career, it was always about helping our clients. How do they become successful? And for me, that's what this is about, and it's been a fun year, as I'm approaching the year mark here next month. It's been great to be here, part of Paysafe, and I look forward to talking with you guys as we move forward and talking about the team that we've built, the success that we could have together and the impact we could have on our customers. So with that, again, thank you very much for joining us here in New York at the New York Stock Exchange, and I'll ask the team to come on up and we can jump into Q&A. Come on up, Kirsten, you get all the answers, so...

It's Ramsey El-Assal from Barclays again. One more question. I wanted to ask, Alex, about free cash flow conversion. It looked like it was -- I forget the exact number, but sort of mid-60s in 2021, 73-ish. What are we talking -- what would you think a normalized free cash flow conversion?

I think 65% to 75% sounds reasonable to me, certainly for 2023, 2024, and we'll try to improve it. But I think I think I see this year as something that's fairly normalized, 2022. So yes, something like that.

And maybe one quick follow-up. One quick follow-up. In terms of the deleveraging, what is the -- if you could remind us what is the trajectory there, the cadence in terms of how you get from where you are now to your goal?

2 ways. So I think this year, we bought about $77 million of, roughly -- if I remember correctly, $77 million of debt -- of our debt back. I certainly expect to continue to do that next year. And of course, the EBITDA growth, right? So it's the buying back of that kind of debt. And we'll be opportunistic. I mean quite frankly, between us, last year, we made $11 million gain on our debt buying, right? So there's some opportunities, right? So we'll continue to be opportunistic. We'll continue to do that, but that's the trajectory.

And I think just as a reminder, during your prepared remarks, you said 5.1x to 5.3x for this year, and then continuing to progress towards the goal beyond that.

Spencer Anson from Susquehanna. I'm pretty interested in this digital wallet for SMBs. Is there a certain vertical that you're going after first? Are there any customers in any of your key verticals that have been asking for this product?

Happy to take that. I think we'll look -- we'll start probably in the area -- you saw my slide. 90% of our business is retail hospitality, obviously, our gaming. But I think the restaurant sector, in particular. I know from a cash flow perspective, there's always a greater need there. I think that sort of flywheel effect of having them pay their customers fast will be there. We'll also look at it from a geographic perspective. So if you're doing business on the West Coast, there's typically a delay on the funding. So we'll take advantage of that. Our ability to fund that much faster could help as well. So we have a -- I don't think we'll be that specific. I think we'll offer it generally, but we'll focus on those 2 particular segments first.

All right. Any other questions? Otherwise, we...

Got to be a few more.

Everybody wants to have a drink. You promised drinks. Everybody is waiting.

Scott Wurtzel from Wolfe Research. First, on the merchant business, with your expansion in Latin America, is that going to be on the gateway side or more of the acquirer of record?

Both. So we'll use our gateway and then we're looking at the -- we may start -- it depends on country a little bit. We'll start with just, first and foremost, being a merchant of record in that regard. As we go to different countries, we'll have some flexibility in the approach that we take. But the concept there is we just want to make sure we're in the market. We've got business there that we can take advantage of already, relationships that we have there. So it will first start with us being a merchant processor, then as we go to different countries there, we'll have to sort of play it by ear.

Got it. And then on that same topic, do you have any plans to maybe move into being the acquirer of record in North America, in the U.S. at all?

We talk about that often. We're getting to the point where we've got the scale and the size that, that becomes a bigger reality. And I think technology allows us to move rapidly to do that. It's not in our immediate future, right? I just want to make sure. He's going to nudge me, "No, we're doing it." But it is something we're [ working on ].

This is Adib Choudhury from William Blair. Just thinking about the revenue growth algorithm, the 6% in '23 and kind of the midterm targets. How should we think about that mix of existing cross-sell, upsell versus new customer acquisition, both of which seem to have a lot of momentum? Yes. So I think when you look at the mix, you're going to see a lot of our growth coming from our existing customer base. Keep in mind, those 800-plus clients represent about 50% of our total revenue stream. So that's really where we think there's a great opportunity for us. We obviously are going to have a new client acquisition, but the majority of our revenue is going to come from the existing client base.

Okay. All right. We're happy to take some more offline, too. Well, thank you, everyone, for coming today. We know there's a lot going on in the market, so I appreciate your time, and thank you to everyone on the webcast as well.

Thank you very much.