Core Viewpoint - Payoneer Global Inc. (PAYO) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks rating system is based on the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years [2]. - Payoneer Global is projected to earn $0.32 per share for the fiscal year ending December 2024, representing a year-over-year increase of 33.3% [9]. - Over the past three months, the Zacks Consensus Estimate for Payoneer Global has risen by 30.3%, indicating a positive trend in earnings estimates [9]. Impact of Institutional Investors - Changes in a company's future earnings potential, as shown through earnings estimate revisions, are strongly correlated with near-term stock price movements, largely due to institutional investors adjusting their valuations based on these estimates [5]. - Institutional investors typically react to changes in earnings estimates, leading to significant price movements in the stock [5]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of Payoneer Global to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [11].

Company Overview - Payoneer Global Inc. (PAYO) currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 1 (Strong Buy), which is associated with a high likelihood of outperforming the market [3] Price Performance - Over the past week, PAYO shares increased by 1.2%, while the Zacks Technology Services industry declined by 0.51% [5] - In the last month, PAYO's price change was 36.05%, significantly outperforming the industry's 1.76% [5] - Over the past quarter, PAYO shares rose by 52.57%, and over the last year, they increased by 101.89%, compared to the S&P 500's gains of 15.2% and 38.09%, respectively [6] Trading Volume - PAYO's average 20-day trading volume is 3,134,674 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, three earnings estimates for PAYO have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $0.25 to $0.32 [9] - For the next fiscal year, two estimates have also moved upwards with no downward revisions [9]

Core Insights - Payoneer Global Inc. (PAYO) shows potential as a strong investment due to a significant revision in earnings estimates, indicating an improving earnings outlook [1][7] - Analysts are increasingly optimistic about the company's earnings prospects, which is expected to positively influence its stock price [2] - The Zacks Rank system, which rates stocks from 1 (Strong Buy) to 5 (Strong Sell), has a proven track record, with Zacks 1 stocks averaging a +25% annual return since 2008 [3] Current-Quarter Estimate Revisions - For the current quarter, Payoneer is projected to earn $0.04 per share, reflecting a year-over-year decline of -20% [4] - In the last 30 days, one estimate has been revised upward, with no negative revisions, leading to an 8.33% increase in the Zacks Consensus Estimate [4] Current-Year Estimate Revisions - The expected earnings for the full year are $0.29 per share, representing a +20.83% change from the previous year [5] - Over the past month, two estimates have been revised upward, with no negative revisions, resulting in a 16.16% increase in the consensus estimate [5] Favorable Zacks Rank - The positive estimate revisions have earned Payoneer a Zacks Rank 1 (Strong Buy), indicating strong potential for outperformance [6] - Research indicates that stocks with Zacks Rank 1 and 2 significantly outperform the S&P 500 [6] Bottom Line - Payoneer Global's strong estimate revisions have led to a 33.7% increase in stock price over the past four weeks, suggesting further upside potential [7]

Revenue Growth - Revenues for the three months ended September 30, 2024, were $248.3 million, an increase of 19% compared to $208.0 million in the same period of 2023[135]. - For the nine months ended September 30, 2024, revenues reached $716.0 million, reflecting an 18% increase from $606.8 million in the prior year[136]. - The company processed $20.4 billion in volume for the three months ended September 30, 2024, compared to $16.3 billion in the same period of 2023, representing a 25% increase[123]. - Volume grew by 25% and 23% for the three and nine months ended September 30, 2024, reaching $20.4 billion and $57.6 billion respectively, driven by growth in digital commerce and B2B volumes[169]. - Payoneer generated significant revenues from transaction fees, interest earned on customer funds, and non-volume-based products, with a focus on B2B services and Checkout offerings[171]. Expenses - Transaction costs for the three months ended September 30, 2024, were $38.1 million, a 25% increase from $30.4 million in the same period of 2023[137]. - For the nine months ended September 30, 2024, transaction costs totaled $109.0 million, up 27% from $86.0 million in the prior year[138]. - Research and development expenses for the three months ended September 30, 2024, were $34.6 million, an increase of 28% compared to $26.9 million in the same period of 2023[141]. - Research and development expenses increased by $10.0 million, or 12%, to $94.2 million for the nine months ended September 30, 2024, driven by higher employee compensation and IT expenses[142]. - Sales and marketing expenses rose by $7.9 million, or 5%, to $152.8 million for the nine months ended September 30, 2024, primarily due to increased direct marketing expenditures[144]. - General and administrative expenses increased by $6.2 million, or 8%, to $80.0 million for the nine months ended September 30, 2024, mainly due to higher M&A related expenses[146]. - Depreciation and amortization expenses surged by $14.6 million, or 76%, to $33.6 million for the nine months ended September 30, 2024, largely due to increased amortization of internal use software[147]. - Financial expense, net was $6.6 million for the nine months ended September 30, 2024, a significant increase of $19.9 million compared to the prior year, primarily due to losses from warrant repurchase[149]. Net Income and Cash Flow - Net income for the three months ended September 30, 2024, was $41.6 million, a significant increase of 224% from $12.8 million in the same period of 2023[135]. - For the three months ended September 30, 2024, Payoneer reported a net income of $41,574 thousand, compared to $12,825 thousand for the same period in 2023, representing a substantial increase[174]. - Adjusted EBITDA for the three months ended September 30, 2024, was $69,268 thousand, up from $58,178 thousand in the prior year, indicating strong operational performance[174]. - Net cash provided by operating activities was $131.0 million for the nine months ended September 30, 2024, an increase of $29.7 million compared to the prior year[160]. - Net cash used in investing activities was $1,814.1 million for the nine months ended September 30, 2024, primarily due to investments in U.S. Treasury Securities and term deposits[164]. - The company had $534.2 million in cash and cash equivalents as of September 30, 2024, indicating strong liquidity[154]. Strategic Initiatives - The company plans to continue investing in enhancing its global platform and making acquisitions to deliver more value to customers[124]. - Payoneer acquired 100% of Skuad Pte. Ltd. on August 5, 2024, to accelerate its strategy for SMBs operating internationally[131]. - The company recognized a liability related to contingent consideration in connection with the Skuad acquisition, reflecting its ongoing strategic initiatives[175]. Market Risks - Payoneer is exposed to market risks, including interest rate changes and foreign currency fluctuations, which could materially impact revenues and earnings[180]. - A hypothetical 1% increase or decrease in interest rates could significantly affect Payoneer's revenues and earnings due to the nature of its cash and cash equivalents[180]. - The company began investing in foreign currency forward contracts in January 2024 to mitigate foreign currency risk, particularly related to operating expenses in New Israeli Shekels[181]. - A hypothetical 10% strengthening or weakening of the U.S. dollar against the New Israeli Shekel could have a material impact on unrealized gains or losses recognized in Accumulated Other Comprehensive Income (AOCI)[181]. - Payoneer’s ability to generate revenues from foreign exchange transactions is influenced by market conditions and negotiations with third-party financial institutions, which can materially affect revenues and earnings[183].

Financial Data and Key Metrics - Total volume growth accelerated for the seventh consecutive quarter to 25% [9] - Total revenue grew by 19%, with revenue excluding interest income rising by 24% [9] - Adjusted EBITDA reached $69 million, with a 28% margin [9] - B2B volume grew by 57% in Q3, contributing to over 40% of year-over-year revenue growth excluding interest income [11] - Customer funds held by Payoneer increased by 13% to $6.1 billion, driving an 8% increase in interest income to $65 million [29] - Net income was $42 million, compared to $13 million in Q3 of the previous year [36] Business Line Performance - B2B business delivered 57% volume growth, accelerating from 40% growth last quarter [27] - Merchant services volume grew by 142%, and enterprise payouts volume grew by 29% [27] - SMBs selling on marketplaces saw 17% volume growth, driven by strong performance from large Chinese e-commerce sellers [26] - Card product growth exceeded 40% quarter-over-quarter, with consistent growth in the previous four quarters [79] Market Performance - ICP growth increased by 11%, with strength in APAC, LatAm, and China [8] - 10,000+ ICPs represent 85% of SMB volume, with both volume and revenue growing by over 25% in Q3 [16] - Payoneer's customer portfolio continues to evolve, with ICPs now comprising 28% of the overall base, up from 25% at the start of 2023 [16] Strategic Direction and Industry Competition - Payoneer is building a full-service financial platform for the cross-border needs of SMBs globally, focusing on B2B transactions and emerging markets [6][17] - The company is modernizing its platform, expanding its financial stack, and focusing on compliance and regulatory moats to drive growth [18] - Payoneer is positioned to capture a multi-trillion-dollar opportunity in cross-border B2B payments, supported by regulatory infrastructure, banking partnerships, and strategic alliances [17] Management Commentary on Operating Environment and Future Outlook - Management highlighted the company's momentum, driven by strong execution, strategic capital allocation, and disciplined growth [7] - Payoneer expects to continue delivering mid-teens growth in 2025, with a focus on B2B and marketplace businesses [41][66] - The company is actively managing interest rate sensitivity, with one-third of customer funds invested in US Treasury bonds and term deposits, and another third protected by interest rate floors [30][31] Other Important Information - Payoneer repurchased $21 million worth of shares in Q3 and has repurchased a total of $119 million worth of shares in the first nine months of 2024 [37][38] - The company is working towards closing the acquisition of a licensed Chinese payment service provider, expected in the first half of 2025 [38] - Payoneer raised its 2024 revenue guidance by $30 million, expecting full-year revenue between $950 million and $960 million [39][40] Q&A Session Summary Question: B2B SMB Trends and Upside Surprises - B2B volume growth accelerated to 57% in Q3, driven by strategic initiatives, customer acquisition, and improved customer experience [47][48] - Management expects B2B growth to continue outpacing overall business growth, with a long-term opportunity in the multi-trillion-dollar cross-border B2B market [49] Question: Revenue Deceleration and Transaction Costs in Q4 - Q4 revenue growth is expected to decelerate to mid-teens, consistent with medium-term targets, due to tougher comps and potential macro uncertainties [51] - Transaction costs are expected to increase in Q4 due to seasonal business mix shifts and higher take-rate business lines [52] Question: Marketplace Payouts Business and Market Share Gains - Payoneer's marketplace payouts business grew by 17% in Q3, driven by strong performance in China and cross-selling of card products [56] - The company is focused on expanding its marketplace ecosystem and adding new marketplace relationships [57] Question: Exposure to Chinese Goods Sellers and US Tariffs - Payoneer is confident in its resilience to potential US tariffs, given its diverse global customer base and focus on non-sensitive verticals [60] Question: Sales and Marketing Investment and ICP Growth - Payoneer is focusing on acquiring larger ICPs, with headcount in go-to-market remaining stable while prioritizing high-value customers [62][63] - The company is also investing in cross-selling products like workforce management solutions to drive ARPU growth [63][79] Question: Pricing Roadmap and Revenue Yields - Payoneer continues to execute on its pricing strategy, with $45 million of uplift expected in 2024 from pricing initiatives [69] - The company is launching new account tiers, such as the pro account, to further monetize its customer base [78] Question: ARPU Growth and Intranetwork Flows - ARPU growth of 20% in Q3 was driven by a mix of pricing, cross-sell, and customer acquisition strategies [82] - Payoneer is piloting intranetwork flow pricing, which could be a significant driver of future monetization [83] Question: Float Income and Margins in 2025 - Float income is expected to decline in 2025 due to lower interest rates, partially offset by balance growth and duration extension strategies [85] - Payoneer remains confident in achieving mid-20s EBITDA margins in 2025, driven by core revenue growth and operational discipline [86] Question: Skuad Integration and M&A Strategy - Payoneer is on track with the integration of Skuad, with cross-sell activities beginning to drive growth in workforce management solutions [88] - The company is actively pursuing tuck-in acquisitions to expand its product capabilities and drive ARPU growth [90]

Payoneer Global Inc. (PAYO) came out with quarterly earnings of $0.11 per share, beating the Zacks Consensus Estimate of $0.04 per share. This compares to earnings of $0.05 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 175%. A quarter ago, it was expected that this company would post earnings of $0.06 per share when it actually produced earnings of $0.09, delivering a surprise of 50%.Over the last four quarters, the company ...

Exhibit 99.1 Payoneer Reports Third Quarter 2024 Financial Results Raises 2024 guidance Record quarterly volume up 25% year-over-year, including 57% B2B growth Record quarterly revenue and increasing profitability year-over-year NEW YORK – November 5, 2024 – Payoneer Global Inc. ("Payoneer" or the "Company") (NASDAQ: PAYO), the financial technology company empowering the world's small and medium-sized businesses to transact, do business and grow globally, today reported financial results for its third quart ...

Muhla1 The Thesis On August 12, 2024, Payoneer Global Inc. (NASDAQ:PAYO) offered to buy back all its outstanding warrants for a fixed price of $0.78 each. The offer is not subject to financing conditions, approvals, or minimum or maximum number of warrants tendered. Translation: all warrants you tender will be purchased. During the most recent trading day (September 3, 2024) the warrants traded for $0.7725 for most of the day. This allows you to purchase warrants in the open market for $0.7725 and tender th ...

Payoneer Global Inc. (PAYO) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving. Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term sto ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Payoneer Global Inc. (Exact name of registrant as specified in its charter) Delaware 001-40547 86-1778671 (State or other jurisdiction of incorpora ...