Payoneer Global : Earnings Presentation PDF (4b7e71)

Published: 2025-05-07 07:35:08 ET PAYO

Published on 05/07/2025 at 07:35

NASDAQ:PAYO | May 7, 2025

Take the complexity out of doing business globally for SMBs

Payoneer's mission:

Serve diverse customer types in over 190+ countries and territories

Compelling financial profile positioned to generate long term profitable growth

2005-2017

Founded to simplify cross-border payments and became one of the leading payment providers for SMBs selling on marketplaces

2018-2024

Expanded into B2B payments, leveraging existing scaled global infrastructure, and launched new capabilities including expense management, working capital, and merchant services

2025+

Become the comprehensive financial stack serving cross-border SMBs worldwide

Volume ($B)

Customer funds ($B)

Revenue ($M)

Adjusted EBITDA1 ($M)

$271

$28

$80

$55

13% CAGR

$7.0

$4.4

17% CAGR

$978

$473

27% CAGR

113% CAGR

2021 2024

1. Please refer to the appendix of this presentation for the reconciliation from net income (loss) to adjusted EBITDA.

Description 2024 performance

Prioritize the customers we can have the greatest impact on

Expand where customers are traditionally underserved

Invest in high value products and services

Make it easier to access complementary solutions

Targeted GTM strategy to acquire and retain our ideal customer profile (ICPs)

Focus on high growth, underserved regions which have the most attractive take rate dynamics

Drive growth in our higher value, take rate accretive, products and services

Drive adoption of multiple AP products to increase ARPU, improve customer retention and economics

 +8% ICP growth

Increasing focus on our largest customers with greatest ARPU potential

~30% revenue growth in APAC and LATAM

42% volume growth in B2B

>100% volume growth in Checkout

36% growth in Card usage with 6 consecutive quarters of >30% growth

53% of usage from customers using 3+ AP products in Q4'24 vs 40% in Q1'22

Enhanced B2B offering through workforce management acquisition

Ensure pricing reflects the value we deliver

Continuous program to optimize pricing through bundling, relationship-based pricing and other efforts

$30M incremental revenue from pricing

$978M of 2024 Revenue

Other1

Interest income 26%

B2B SMBs2

19%

North America 10%

Latin America 10%

EMEA

26%

Other3

14%

B2B

Invoicing

Send to bank account

31%

Merchant Services 2%

Enterprise payouts 7%

By customer type

SMBs that sell

APAC

19%

By customer region

China

Interest income 26%

Merchant Services

By product

Card

on marketplaces2

45%

35%

2% Enterprise

payouts

15%

Other includes revenue recognized over time and capital advance income.

Certain non-volume revenues, including those related to banking partnerships and FX, which were previously allocated to SMBs that sell on marketplaces were re-classified to B2B SMBs to better reflect the customers supporting those revenues.

Revenue for SMBs that sell on marketplaces and B2B SMBs was restated for historical periods in 2024. Volumes were not impacted.

Other includes revenue recognized over time, capital advance income, FX, and other misc. fees and charges.

Customers can access a comprehensive financial stack through their Payoneer Account

Accounts Receivable Cash Management Accounts Payable

B2B invoice

Checkout FX capabilities

Payoneer card

Marketplace payout

Load funds

Hold multi-currency balances

Pay vendors, suppliers, and contractors

Global regulatory framework

Relationships with major global marketplaces

Expansive bank and payment service provider network

~100 Providers

Software integrations Expanding into SMB

grade services

Workforce management Spend management Workflow automation

North America

EMEA

Greater China

of total ICPs

29%

of total ICPs

20%

of total ICPs

APAC

Latin America

14%

of total ICPs

31%

of total ICPs

Reported regions

100+

Customer success managers speaking 20+ languages

556K

Ideal Customer Profiles (ICPs)

35+

Countries with on-the-ground presence

7,000

Trade corridors served

Note: Data as of March 31, 2025. Active ICPs are defined as customers with a Payoneer Account that have on average over $500 per month in volume and were active over the trailing twelve-month period.

B2B SMBs

"One of the reasons I really like working with Payoneer is that as I grow my own business, Payoneer's flexibility and global reach allows me to not have to find different payment options. I like that Payoneer is with me in this growth as I plan what the next five to ten years look like."

- Marla De Castro Rausch, Founder and CEO Animation Vertigo, Philippines

SMBs that sell on marketplaces

"Amazon is unable to pay funds directly into a Thai bank account, so we were being paid by check. It would take a week for the checks to arrive, and we had to deal with 20 or 30 different checks each month. We looked for alternative solutions, but there was nothing which was really suitable. Payoneer helps us get our money more quickly and more efficiently. It's now an integral part of our business.

- Rob Palmer, CEO

Platinum Publishing, Thailand

Enterprise payouts

"We wanted to find a solution that would enable us to pay every seller in every country. Payoneer really opened us to nearly every market in the world with their payment flexibility."

- Vered Raviv-schwartz, COO

Fiverr

Customers % of total revenue

556K

Active ICPs1

Active non-ICPs

53K

503K

1.4M

>50%

~25%

<10%

$10K+/month ICPs

$500-$10K/month ICPs

<$500/month non-ICPs

~2M active customers

~90%

Enterprise payouts

~10%

Note: Customer data as of March 31, 2025. % of total revenue based on 1Q25 LTM (4/1/24-3/31/25) revenue and includes allocated interest income attributable to each category.

1. Active ICPs are defined as customers with a Payoneer Account that have on average over $500 per month in volume and were active over the trailing twelve-month period.

Active ICPs by region ('000s)

556

Revenue growth by region

1Q22

1Q25

112

166

160

122

173

APAC LATAM

N. America China EMEA

28%

25%

16%

37%

453

+13% CAGR

in higher take rate regions

~1% take rate

~2.5% take rate

LATAM APAC China EMEA N. America 3-year CAGR (1Q25 vs. 1Q22)

Usage by number of products used by a customer

40% 41%

41%

44%

46% 46%

48%

50%

49%

50%

51%

53%

22%

23%

22%

21%

20%

22%

21%

22%

20%

28%

29%

31%

30%

32%

33%

34%

36%

38%

AP product

AP products

3+ AP products

1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25

Larger SMBs have more complex AP needs.

As we enhance our product capabilities to capture more of their diversified AP needs, we can drive greater retention, stickiness, and lifetime value.

Note: Usage products include withdraw to bank account, card, pay others, banking partnerships, partner charge, and other.

$265

+9%

Growth in ARPU ex. interest

$359

$425

+21%

Growth in ARPU ex. interest

$103

$94

$22

$243

$265

$322

Strategy to expand ARPU

GTM strategy targeting larger ICPs

Drive faster growth in high value businesses and products such as B2B and card

Execute pricing initiatives to ensure pricing reflects the value we deliver

2022 2023 2024

Note: ARPU represents the trailing twelve months as of December 31 for each year shown. Please refer to the disclaimers at the beginning of the presentation for the ARPU definition.

+16 bps

1.19%

1.09%

1.10%

1.11%

1.07%

1.08%

1.09%

1.03%

1.06%

1.04%

1Q22

2Q22

3Q22

1Q23

2Q23

3Q23

1Q24

2Q24

3Q24

1Q25

4Q24

4Q23

4Q22

0.97%

1.00%

1.09%

4Q ecomm seasonality

Note: SMB take rate represents volume from SMB customers (SMBs that sell on marketplaces, B2B, and Merchant Services) divided by revenue from SMB customers.

$6.6B in customer funds, reflecting the trust of our customers and the utility of our platform

$257M of interest income earned on customer funds in FY 2024

85%+ of customer funds are interest-bearing

~75% of customer funds are held with U.S. domestic financial institutions1

~75% of customer funds are denominated in U.S. dollars

In 2024 we took actions to reduce our sensitivity to interest rate fluctuations:

$1.8B of customer funds invested in US treasury securities and term-based deposits as of March 31, 2025

Interest rate floor contracts on $1.9B of customer funds to hedge against rates decreasing below 3%

Interest Income Earned on Customer Funds

2.2%

0.4%

0.1%

1.7%

5.0%

5.1%

5.3%

4.3%

$5.8B

$6.4B

$7.0B

$5.9B

$6.6B

$4.4B

$3.3B

$1.7B

$17M

2019

$6M

2020

$3M

2021

$55M

2022

2023

2024

1Q24

1Q25

Lower interest rates

+11% YoY

growth in customer funds

-11% YoY

decrease in 1Q25 interest income

$58M

$65M

$231M

$250M

Average Effective Federal Funds Rate:

Note: Data as of March 31, 2025 unless otherwise stated. Customer fund balances reflect ending period balances.

1. U.S. domestic financial institutions include U.S. based financial institutions and their non-U.S. subsidiaries.

$84

$93

$121

$159

$177

Cash & equivalents and debt ($M)

Operating cash flow ($M)

Share repurchases and stock-based compensation ($M)

$16

$18 $0

($12)

$137

$66

$65

$57

$52

$617

$543

$497

2022 2023 2024

Strong balance sheet with no debt provides flexibility for investment and capital returns

Delivered significant operating cash flow since going public

Share repurchases significantly exceeding stock-based compensation

Note: Cash & cash equivalents and debt reflects balances as of December 31 of the year shown.

Significant opportunity to be the partner for the world's cross-border businesses

A high growth, increasingly profitable SMB business that is supported by differentiated assets and infrastructure built over 20 years

Robust balance sheet and strong cash flow generation enabling investment & capital returns

Medium-term

Long-term

(Through 2026)

Revenue growth

Adjusted EBITDA margin

(Beyond 2026)

Revenue growth

Adjusted EBITDA margin

Total Revenue

Strong SMB customer growth partially offset by lower interest income

Total Adjusted EBITDA

Stable profitability despite

Adjusted EBITDA

margin

$7M lower interest income

$228

$240

$248

$262

$247

1Q24

2Q24

3Q24

4Q24

1Q25

$63

24%

$65

27%

$65

29%

$69

28%

$73

30%

1Q24 2Q24 3Q24 4Q24 1Q25

YoY

growth 19% 16% 19% 17% 8%

Revenue excluding interest income

Exceeding mid-teens target

Adjusted EBITDA excluding interest income

Increasing profitability YoY excluding interest income demonstrates operating leverage

$163

$174

$183

$189

$201

$7 $7

$0 $4 $3

YoY

1Q24 2Q24 3Q24 4Q24 1Q25

YoY

1Q24 2Q24 3Q24 4Q24 1Q25

+$11 +$6 +$6 +$15 +$7

growth1 21% 21% 24% 26% 16%

increase

Note: figures in millions unless noted otherwise. Please refer to the appendix of this presentation for the reconciliation from net income (loss) to adjusted EBITDA.

1. Year-over-year growth rate calculations exclude $7.5M of quarterly revenue earned for onboarding services for a certain enterprise client for the periods 3Q22-3Q23 (inclusive).

Volume ($M) 1Q24 2Q24 3Q24 4Q24 1Q25

YoY QoQ

SMBs that sell on marketplaces $11,002 $11,403 $11,983 $13,448 $11,373 B2B SMBs 2,232 2,467 2,802 2,952 2,708

Merchant services 92 119 153 218 173

SMB customer volume $13,327 $13,989 $14,938 $16,618 $14,254

Enterprise payouts 5,129 4,724 5,467 5,871 5,421 6% -8%

Total volume $18,455 $18,713 $20,404 $22,489 $19,676 7% -13%

Growth impacted by timing of holiday payouts

-15%

21%

-8%

88%

-21%

-14%

Faster growth with higher take rate customer segments

Revenue as a % of volume ("Take Rate") 1Q24 2Q24 3Q24 4Q24 1Q25

YoY QoQ

SMBs that sell on marketplaces 0.93% 0.94% 0.91% 0.87% 0.97% 4 bps 10 bps

B2B SMBs 1.72% 1.73% 1.75% 1.88% 1.94% 22 bps 6 bps

Merchant services 3.95% 3.89% 3.85% 3.91% 4.12% 17 bps 21 bps

SMB customer take rate 1.08% 1.11% 1.09% 1.09% 1.19% 11 bps 10 bps

Enterprise payouts 0.30% 0.34% 0.30% 0.28% 0.29% -1 bps 1 bps

Total take rate 1.24% 1.28% 1.22% 1.16% 1.25% 1 bps 9 bps

Significant take rate expansion with SMB customers

Revenue ($M) 1Q24 2Q24 3Q24 4Q24 1Q25

YoY QoQ

By source:

SMBs that sell on marketplaces(1) $102 $108 $108 $117 $110 8% -6% B2B SMBs(1) 38 43 49 56 52 37% -6%

Merchant services 4 5 6 9 7 96% -17%

Strong B2B revenue growth

SMB customer revenue

$144

$155

$163

$181

$170

18% -6%

Enterprise payouts

1% -4%

Revenue recognized at a point in time

$160

$171

$180

$197

$185

16% -6%

Revenue recognized over time

40% 20%

Revenue from contracts with customers

$160

$171

$180

$198

$186

16%

-6%

Interest income on customer balances

$65

$66

$65

$61

$58

-11%

-4%

Capital advance income

-3% -18%

Revenue from other sources

$68

$64

$60

-11%

-5%

Total revenue

$228

$240

$248

$262

$247

-6%

$163

21%

$174

21%

$183

24%

$201

26%

$189

16%

-6%

Memo:

Revenue ex. interest income and onboarding fees from an enterprise client

% YoY growth

Note: Revenue by source represents revenue recognized from contracts with customers as well as revenue from other sources.

Underlying business is strong and outpacing mid-teens target

(1) Certain non-volume revenues, including those related to banking partnerships and FX, which were previously allocated to SMBs that sell on marketplaces were re-classified to B2B SMBs to better reflect the customers supporting those revenues. Revenue for SMBs that sell on marketplaces and B2B SMBs was restated for historical periods in 2024. Volumes were not impacted.

Active ICPs ('000s)

1Q24

2Q24

3Q24

4Q24

1Q25

YoY

QoQ

By size:

$500-$10K/month

473

492

503

505

503

-1%

$10K+/month

-7%

-3%

Total

530

547

557

560

556

-1%

Year-over-year volume growth by customer size:

$500-$10K/month

10%

11%

-500 bps

-800 bps

$10K+/month

18%

21%

26%

20%

-1,000 bps

-1,200 bps

Faster growth with $10K+ ICPs

By primary regional market: APAC

164

169

174

173

-1%

EMEA

168

167

166

165

160

-5%

-3%

China

107

110

109

112

14%

LATAM

10%

-3%

N. America

14%

Total

530

547

557

560

556

-1%

Revenue ($M)

1Q24

2Q24

3Q24

4Q24

1Q25

YoY

QoQ

By primary regional market: China

$81

$84

$85

$90

$85

-6%

EMEA

-10%

APAC

23%

-3%

N. America

-9%

LATAM

21%

Total Revenue

$228

$240

$248

$262

$247

-6%

Note: Active ICPs are defined as customers with a Payoneer Account that have on average over $500 per month in volume and were active over the trailing twelve-month period. Revenue disaggregated by primary regional market represents revenues being attributed to the country (in the region) in which the billing address of the transacting customer is located, with the exception of global bank transfer (enterprise payouts) revenues, where revenues are disaggregated based on the billing address of the transaction funds source.

Given the current macroeconomic uncertainty, Payoneer is suspending its previously issued full-year 2025 guidance.

There are a broad range of potential outcomes and as a company supporting cross-border businesses that may be negatively impacted, we face substantial risks which could impact our financial results.

Our business and the customers we serve are diverse and our focus during this time is squarely on supporting our customers as they navigate the dynamic environment. Some customers may benefit from potential shifts in global trade and supply chains and we are focused on ensuring we and our customers are well positioned to capture potential new opportunities.

Approximately 20% of our annual revenue comes from China-based customers selling into the US.

Represents non-cash charges associated with stock-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense in our business and an important part of our compensation strategy.

Represents the non-recurring reorganizational costs that were not recorded as a reduction of additional paid in capital. The amounts relate to legal and professional services associated with the Reorganization.

Amounts relate to M&A-related third-party fees, including related legal, consulting and other expenditures. Additionally, amounts for the three months ended March 31, 2025 and September 30, 2024 include $0.3 and

$0.2 million, respectively, in non-recurring fair value adjustment of the Skuad contingent consideration liability. Amounts for the year ended December 31, 2024 include $1.8 million for the same reason. Amounts for the year ended December 31, 2022 relate to a non-recurring fair value adjustment of a liability related to our 2020 acquisition of Optile.

Changes in the estimated fair value of the warrants are recognized as gain or loss on the condensed consolidated statements of comprehensive income (loss). The impact is removed from EBITDA as it represents market conditions that are not in our control.

Amounts for the three months ended March 31, 2025 represents non-recurring costs related to severance and other employee termination benefits. Amounts for the year ended December 31, 2023 reflect a plan to reduce our workforce in which we had non-recurring costs related to severance and other employee termination benefits.

Amounts relate to a non-recurring loss on the repurchase and redemption of

outstanding public warrants.

Twelve months ended,

($ in thousands)

Dec. 31, 2021

Dec. 31, 2022

Dec. 31, 2023

Dec. 31, 2024

Net income (loss)

$ (33,987)

$ (11,970)

$ 93,333

$ 121,163

Depreciation & amortization

17,997

20,858

27,814

47,296

Income taxes

8,711

13,586

39,203

18,308

Other financial (income) expense, net

6,854

10,131

(11,568)

(2,419)

EBITDA

(425)

32,605

148,782

184,348

Stock based compensation expenses(1)

37,013

52,150

65,767

64,787

Reorganization related expenses(2)

5,087

Share in losses of associated company

M&A related expense (income)(3)

(1,721)

(2,323)

3,468

9,439

Gain from change in fair value of Warrants(4)

(11,824)

(33,963)

(17,359)

(2,767)

Restructuring charges(5)

4,488

Loss on Warrant repurchase/redemption(6)

14,746

Adjusted EBITDA

$ 28,166

$ 48,471

$ 205,146

$ 270,553

Interest Income

2,702

55,292

230,634

256,846

Adjusted EBITDA excluding interest income

$ 25,464

$ (6,821)

$ (25,488)

$ 13,707

Revenue

$ 473,403

$ 627,623

$ 831,103

$ 977,716

Adjusted EBITDA margin

25%

28%

Three months ended,

($ in thousands)

Mar. 31, 2024

Jun. 30, 2024

Sept. 30, 2024

Dec. 31, 2024

Mar. 31, 2025

Net income

$ 28,974

$ 32,425

$ 41,574

$ 18,190

$ 20,577

Depreciation & amortization

9,408

10,712

13,510

13,666

14,390

Income tax expense (benefit)

13,910

15,866

(19,484)

8,016

7,192

Other financial expense (income), net

(2,747)

(976)

(1,674)

2,978

1,550

EBITDA

49,545

58,027

33,926

42,850

43,709

Stock based compensation expenses(1)

15,077

13,666

17,430

18,614

18,755

M&A related expense(3)

2,375

2,091

3,166

1,807

337

Gain from change in fair value of Warrants(4)

(1,761)

(1,006)

Restructuring charges(5)

2,630

Loss on Warrants repurchase/redemption(6)

14,746

Adjusted EBITDA

$ 65,236

$ 72,778

$ 69,268

$ 63,271

$ 65,431

Interest Income

65,268

65,821

65,162

60,595

57,972

Adjusted EBITDA excluding interest income

$ (32)

$ 6,957

$ 4,106

$ 2,676

$ 7,459

Revenue

$ 228,183

$ 239,520

$ 248,274

$ 261,739

$ 246,617

Adjusted EBITDA margin

29%

30%

28%

24%

27%

Disclaimer

Payoneer Global Inc. published this content on May 06, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2025 at 11:34 UTC.