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Payoneer (PAYO) - 2024 Q2 - Quarterly Results
PAYOPayoneer (PAYO)2024-08-07 11:35

Revenue Growth and Performance - Revenue excluding interest income grew 15% year-over-year to 173.7million,whiletotalrevenueincreased16173.7 million, while total revenue increased 16% to 239.5 million[2] - Revenue increased to 239.52millioninQ22024,up15.9239.52 million in Q2 2024, up 15.9% from 206.73 million in Q2 2023[13] - Greater China region contributed 84.44millioninrevenue,representing35.384.44 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 141.23millioninQ22023[14]−Interestincomeoncustomerbalancesgrewto141.23 million in Q2 2023[14] - Interest income on customer balances grew to 65.82 million in Q2 2024, up 19.0% from 55.29millioninQ22023[14]ProfitabilityandAdjustedEBITDA−AdjustedEBITDArose3055.29 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 72.78millioninQ22024,up30.172.78 million in Q2 2024, up 30.1% from 55.97 million in Q2 2023[16] - Operating income increased to 46.31millioninQ22024,up38.746.31 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 2.5billion,marketplacevolumeup152.5 billion, marketplace volume up 15% to 11.4 billion, and merchant services volume surging 192% to 119million[5]−ActiveIdealCustomerProfiles(ICPs)grew10119 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 1.2billion,supportedbynewintegrationswithaccountingplatformslikeXeroandQuickBooks[5]−Enterprisepayoutsvolumeincreased311.2 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 61millionincash,withpotentialadditionalpaymentsofupto61 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 6.0billionasofJune30,2024[5]−Cashandcashequivalentsdecreasedto6.0 billion as of June 30, 2024[5] - Cash and cash equivalents decreased to 575,730 thousand as of June 30, 2024, from 617,022thousandasofDecember31,2023[19]−Customerfundsdecreasedto617,022 thousand as of December 31, 2023[19] - Customer funds decreased to 6,037,105 thousand as of June 30, 2024, from 6,390,526thousandasofDecember31,2023[19]−NetcashprovidedbyoperatingactivitiesforthesixmonthsendedJune30,2024,was6,390,526 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 59,919thousandforthesameperiodin2023[20]−NetcashusedininvestingactivitiesforthesixmonthsendedJune30,2024,was59,919 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 63,453thousandforthesameperiodin2023[20]−NetcashusedinfinancingactivitiesforthesixmonthsendedJune30,2024,was63,453 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 315,444thousandforthesameperiodin2023[20]NetIncomeandEarnings−Netincomedecreasedto315,444 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 45.55millioninQ22023[13]−Basicearningspersharedecreasedto45.55 million in Q2 2023[13] - Basic earnings per share decreased to 0.09 in Q2 2024 from 0.12inQ22023[18]−NetincomeforthesixmonthsendedJune30,2024,was0.12 in Q2 2023[18] - Net income for the six months ended June 30, 2024, was 61,399 thousand, compared to 53,487thousandforthesameperiodin2023[20]ExpensesandCompensation−Researchanddevelopmentexpensesslightlydecreasedto53,487 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 27.99millioninQ22023[13]−Stock−basedcompensationexpensesdecreasedto27.99 million in Q2 2023[13] - Stock-based compensation expenses decreased to 13.67 million in Q2 2024 from 16.17millioninQ22023[17]Assets,Liabilities,andEquity−Totalassetsdecreasedto16.17 million in Q2 2023[17] Assets, Liabilities, and Equity - Total assets decreased to 6,920,312 thousand as of June 30, 2024, from 7,283,119thousandasofDecember31,2023[19]−Totalliabilitiesdecreasedto7,283,119 thousand as of December 31, 2023[19] - Total liabilities decreased to 6,250,933 thousand as of June 30, 2024, from 6,618,846thousandasofDecember31,2023[19]−Retainedearnings(accumulateddeficit)improvedto6,618,846 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 15,196thousandasofDecember31,2023[19]−CommonstockrepurchasedduringthesixmonthsendedJune30,2024,amountedto15,196 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 17,125thousandforthesameperiodin2023[20]GuidanceandFutureProjections−Payoneerraised2024guidance,projectingrevenueof17,125 thousand for the same period in 2023[20] Guidance and Future Projections - Payoneer raised 2024 guidance, projecting revenue of 920 million to 930millionandadjustedEBITDAof930 million and adjusted EBITDA of 225 million to $235 million[6]