Financial Data and Key Metrics - Revenue grew 16% YoY to $240 million in Q2 2024, driven by a 10% increase in ICPs, higher take rate services, and interest income from customer funds [13] - Volume growth accelerated to 22%, with B2B volume growth reaching 40% [6][14] - Adjusted EBITDA reached a record $73 million, with a 30% margin, up from $56 million in Q2 2023 [6][13] - Interest income increased 19% to $66 million, driven by a 9% growth in customer funds held by Payoneer [16] - Net income was $32 million, compared to $46 million in Q2 2023, which included $18 million in non-operating gains [19] Business Line Performance - B2B business delivered 40% volume growth in Q2, accelerating from 33% in Q1 [14] - Merchant Services volume grew nearly 200%, while enterprise payout volume grew 31% [15] - SMB marketplace volume increased 15%, driven by strong performance in China and emerging marketplaces [14][15] - Take rate for SMB customers increased by 1 basis point, driven by faster growth in higher take rate B2B business [15] Market Performance - Strong growth in APAC, EMEA, and Latin America, with 28% growth in these regions [28] - China saw 19% growth, while North America grew 23% [28] - Emerging markets like Pakistan, the Philippines, Brazil, and South Korea saw over 40% growth [31] Strategic Direction and Industry Competition - The company is focused on building a financial stack for global cross-border SMBs, with a strategy centered on long-term revenue growth and profitability [5] - Payoneer acquired Squad to enhance cross-border payroll capabilities, aiming to increase ARPU and customer stickiness [12][35] - The company is investing in product enhancements, including integrations with accounting ERPs, multi-entity management, and FX capabilities [9][10] Management Commentary on Operating Environment and Future Outlook - Management highlighted stable macro conditions in Q2, with expectations of some softness in the back half of 2024, particularly in the marketplace business [31][33] - The company raised its 2024 revenue guidance by $25 million to $920-$930 million, with adjusted EBITDA guidance increased by $25 million to $225-$235 million [20][22] - Payoneer expects to extend the duration of 30% of its customer funds portfolio to reduce interest rate sensitivity and drive consistent interest income [16][49] Other Important Information - Payoneer repurchased $47 million worth of shares in Q2 and ended the quarter with $576 million in cash and cash equivalents [19][20] - The company is investing in R&D, with a 12% YoY increase in R&D headcount to support long-term product development [19] Q&A Session Summary Question: Pricing initiatives and their impact on revenue growth [24] - The company is seeing traction from pricing initiatives, including the Lite account launch and FX revenue pricing, with an expected $20 million uplift in 2024 [25][26] Question: Cross-selling strategy and product adoption [27] - Payoneer is focused on cross-selling financial stack products, with increasing adoption of 2-3 AP products among customers [28] - The Squad acquisition is expected to enhance payroll capabilities and drive ARPU growth [29] Question: Macro outlook and regional performance [31] - Management expects some macro softness in H2 2024, particularly in the marketplace business, but remains confident in B2B growth [33][34] Question: Intra-network flow pricing pilot [37] - The pilot is progressing well, with potential for more meaningful impact in 2025 [38][39] Question: Incremental margins and transaction costs [47] - The company expects transaction costs to increase in H2 2024 but has lowered its guidance for transaction costs as a percentage of revenue to 16.5% [47] Question: Interest rate sensitivity and customer deposits [49] - Payoneer is extending the duration of customer deposits to reduce interest rate sensitivity, with $1.2 billion already extended as of July [49][50] Question: Tech stack investments [51] - The company has increased the velocity of product releases and is investing in platform modernization, data capabilities, and AI-based tools [51][52]

Payoneer Global Inc. (PAYO) came out with quarterly earnings of $0.09 per share, beating the Zacks Consensus Estimate of $0.06 per share. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 50%. A quarter ago, it was expected that this company would post earnings of $0.05 per share when it actually produced earnings of $0.08, delivering a surprise of 60%. Over the last four quarters, the company ...

Revenue Growth and Performance - Revenue excluding interest income grew 15% year-over-year to $173.7 million, while total revenue increased 16% to $239.5 million[2] - Revenue increased to $239.52 million in Q2 2024, up 15.9% from $206.73 million in Q2 2023[13] - Greater China region contributed $84.44 million in revenue, representing 35.3% of total revenue in Q2 2024[15] - Revenue recognized at a point in time increased to $170.75 million in Q2 2024, up 20.9% from $141.23 million in Q2 2023[14] - Interest income on customer balances grew to $65.82 million in Q2 2024, up 19.0% from $55.29 million in Q2 2023[14] Profitability and Adjusted EBITDA - Adjusted EBITDA rose 30% year-over-year to $72.8 million, reflecting improved profitability[2] - Adjusted EBITDA rose to $72.78 million in Q2 2024, up 30.1% from $55.97 million in Q2 2023[16] - Operating income increased to $46.31 million in Q2 2024, up 38.7% from $33.39 million in Q2 2023[13] Volume Growth and Customer Metrics - 22% volume growth year-over-year, with B2B volume increasing 40% to $2.5 billion, marketplace volume up 15% to $11.4 billion, and merchant services volume surging 192% to $119 million[5] - Active Ideal Customer Profiles (ICPs) grew 10% year-over-year to 547,000, with larger ICPs (over $10,000/month) increasing 7%[5] - SMB customer take rate increased 1 basis point year-over-year to 111 bps, driven by B2B volume growth[2] - Payoneer card spend grew 33% year-over-year to $1.2 billion, supported by new integrations with accounting platforms like Xero and QuickBooks[5] - Enterprise payouts volume increased 31% year-over-year to $4.7 billion, led by expansion in the travel vertical[5] Acquisitions and Strategic Investments - Payoneer acquired Skuad for $61 million in cash, with potential additional payments of up to $20 million, to expand into global workforce management services[4] Financial Position and Cash Flow - Customer funds increased 9% year-over-year to $6.0 billion as of June 30, 2024[5] - Cash and cash equivalents decreased to $575,730 thousand as of June 30, 2024, from $617,022 thousand as of December 31, 2023[19] - Customer funds decreased to $6,037,105 thousand as of June 30, 2024, from $6,390,526 thousand as of December 31, 2023[19] - Net cash provided by operating activities for the six months ended June 30, 2024, was $80,914 thousand, compared to $59,919 thousand for the same period in 2023[20] - Net cash used in investing activities for the six months ended June 30, 2024, was $665,298 thousand, compared to $63,453 thousand for the same period in 2023[20] - Net cash used in financing activities for the six months ended June 30, 2024, was $443,475 thousand, compared to $315,444 thousand for the same period in 2023[20] Net Income and Earnings - Net income decreased to $32.43 million in Q2 2024, down 28.8% from $45.55 million in Q2 2023[13] - Basic earnings per share decreased to $0.09 in Q2 2024 from $0.12 in Q2 2023[18] - Net income for the six months ended June 30, 2024, was $61,399 thousand, compared to $53,487 thousand for the same period in 2023[20] Expenses and Compensation - Research and development expenses slightly decreased to $27.58 million in Q2 2024 from $27.99 million in Q2 2023[13] - Stock-based compensation expenses decreased to $13.67 million in Q2 2024 from $16.17 million in Q2 2023[17] Assets, Liabilities, and Equity - Total assets decreased to $6,920,312 thousand as of June 30, 2024, from $7,283,119 thousand as of December 31, 2023[19] - Total liabilities decreased to $6,250,933 thousand as of June 30, 2024, from $6,618,846 thousand as of December 31, 2023[19] - Retained earnings (accumulated deficit) improved to $46,203 thousand as of June 30, 2024, from a deficit of $15,196 thousand as of December 31, 2023[19] - Common stock repurchased during the six months ended June 30, 2024, amounted to $98,654 thousand, compared to $17,125 thousand for the same period in 2023[20] Guidance and Future Projections - Payoneer raised 2024 guidance, projecting revenue of $920 million to $930 million and adjusted EBITDA of $225 million to $235 million[6]

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You can see the current list of Zacks #1 Rank Stocks here >>> Set to Beat the Market? Let's discuss some of the components of the Momentum Style Score for PAYO that show why this company shows promise as a solid momentum pick. Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends ...

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. The company is expected to earn $0.24 per share for the full year, which represents a change of 0% from the prior-year number. Consensus earnings estimates for the next quarter and full year have moved considerably higher for Payoneer Global, a ...

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 March 31, 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) (State or other jurisdiction of incorporation) Delaware 001-40547 86-1 ...

Financial Data and Key Metrics - Revenue for Q1 2024 was $228 million, up 19% year-over-year, driven by interest income, B2B business momentum, SMB performance, and pricing initiatives [22] - Adjusted EBITDA margin reached a record 29% in Q1, with adjusted EBITDA of $65 million, up from $39 million in the prior year period [44] - Free cash flow conversion is well above 100% year-to-date, with $587 million in cash and cash equivalents at the end of Q1 [26] - The company repurchased $51 million worth of shares in Q1, accelerating its capital return to shareholders [26] Business Line Performance - B2B volume grew 33% in Q1, a significant acceleration from 13% growth in Q4 2023, driven by service-oriented markets in APEC, LATAM, and SEMEA [17][67] - Merchant services volume grew over 200% in Q1, with strong adoption of the checkout product among 10K+ ICPs [67] - SMB revenue grew 21%, with a 4 basis points increase in take rate due to pricing initiatives and cross-selling of financial products [7][22] - Enterprise payout growth was 34%, driven by strong travel volume and new routes [41] Market Performance - The company achieved double-digit growth in all major regions, with over 20% revenue growth in higher take-rate regions [54] - Greater China showed significant strength, with strong growth in B2B and commercial card products [80] - CEMEA and APAC regions saw 41% and 39% year-over-year B2B growth, respectively [88] Strategic Direction and Industry Competition - The company is focused on expanding its financial stack, including cross-border AR and AP solutions, and enhancing product offerings for SMBs [33][35] - New verticals such as agriculture in Ukraine, beauty products in Asia, and marketing services globally contributed tens of millions in incremental B2B volume in Q1 [35] - The company is investing in a sophisticated pricing engine and segment-based pricing strategies to improve monetization [96] Management Commentary on Operating Environment and Future Outlook - Management highlighted the transformative evolution of cross-border trade, driven by technological advancements, demographic shifts, and rising consumer purchasing power [20] - The company raised its full-year revenue guidance by $20 million and adjusted EBITDA guidance by $15 million, reflecting strong Q1 performance and momentum heading into Q2 [71] - Management remains confident in the company's ability to capture opportunities in the $6 trillion global cross-border B2B market [34] Other Important Information - Sales and marketing expenses increased by $2 million (4%) due to higher marketing spend on card incentive programs and partner commissions [24] - R&D expenses increased by $3 million (9%), with a focus on growth initiatives, product enhancements, and improving user experience [25][43] - Transaction costs increased by 25% to $34 million, in line with volume growth and mix shift toward higher take-rate businesses [42] Q&A Session Summary Question: Revenue growth cadence and expectations for the year [49] - The company expects a U-shaped revenue trajectory for 2024, with strong Q1 and Q2 performance, moderating in Q3, and accelerating again in Q4 [50][51] - Q2 revenue growth is expected to be high single digits, with mid-teens normalized growth, driven by strong B2B momentum [50] Question: Performance in Greater China and macro impact [54] - Greater China showed double-digit growth, with strong execution in B2B and commercial card products, benefiting from consumer spending in the West [80] Question: Capital deployment priorities [56] - The company is balancing share buybacks with tuck-in M&A opportunities to extend its financial stack, having repurchased $51 million worth of shares in Q1 [81][82] Question: B2B volume growth expectations for 2024 [87] - The company maintains its expectation of 25% year-over-year B2B volume growth, with potential for outperformance if macroeconomic conditions remain stable [65][88] Question: Drivers of SMB take rate improvement [100] - The SMB take rate increased by 4 basis points, driven by pricing initiatives, cross-selling of financial products, and strong performance in B2B and merchant services [7][100] Question: Updated thoughts on B2B volume growth for 2024 [87] - The company remains confident in its 25% year-over-year B2B volume growth target, with strong momentum in CEMEA and APAC regions [88] Question: Delta between revenue and adjusted EBITDA guidance raises [89] - The company attributed the delta to transaction costs and investments in growth initiatives, with no significant changes in cash OpEx [66]

Accounts Receivable Volume ($B) Take Rate Defend our market leading position Drive continued scaled, efficient growth Note: Take rates shown above include associated monetization from usage of funds based on the channel the volume came from. Take rates shown above do not include interest income revenue. We are trusted, growing customer funds, and earning • $231M of interest income earned on customer funds in 2023 and $65M in 1Q'24 • $99M of customer funds were invested in US treasury securities with a <1 ye ...

Payoneer Global Inc. (PAYO) came out with quarterly earnings of $0.08 per share, beating the Zacks Consensus Estimate of $0.05 per share. This compares to earnings of $0.02 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 60%. A quarter ago, it was expected that this company would post earnings of $0.05 per share when it actually produced earnings of $0.05, delivering no surprise.Over the last four quarters, the company has sur ...