We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Payoneer Global Inc | NASDAQ:PAYO | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 7.64 | 7.59 | 7.78 | 0 | 01:00:00 |
Raises 2024 guidance 22% volume growth accelerates for a sixth consecutive quarter, reflecting consistent execution 40% B2B volume growth driving continued SMB take rate expansion Expands into global workforce management services for SMBs with the acquisition of Skuad
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 second quarter ended June 30, 2024.
Second Quarter 2024 Financial Highlights
($ in mm)2Q 2023
3Q 2023
4Q 2023
1Q 2024
2Q 2024
YoY Change
Revenue ex. interest income$151.4
$147.6
$159.4
$162.9
$173.7
15%
Interest income55.3
60.4
64.9
65.3
65.8
19%
Revenue$206.7
$208.0
$224.3
$228.2
$239.5
16%
Transaction costs as a % of revenue13.8%
14.6%
16.2%
14.9%
15.4%
160 bps
Net income$45.5
$12.8
$27.0
$29.0
$32.4
-29%
Adjusted EBITDA56.0
58.2
52.2
65.2
72.8
30%
Operational Metrics
Volume ($bn)
$15.3
$16.3
$19.0
$18.5
$18.7
22%
Active Ideal Customer Profiles (ICPs) ('000s)1495
502
516
530
547
10%
Revenue as a % of volume ("Take Rate")135 bps
127 bps
118 bps
124 bps
128 bps
-7 bps
SMB customer take rate2110 bps
107 bps
100 bps
108 bps
111 bps
1 bps
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.
2.
SMB customer take rate represents revenue from SMBs who sell on marketplaces, B2B SMBs, and Merchant Services, divided by the associated volume from each respective channel.
“Payoneer delivered another consecutive quarter of record revenue, accelerating volume and ICP growth, and significant profitability. We are steadily executing to capture a massive opportunity and our results are a validation that our strategy is working: we grew ICPs by 10%, increased ARPU by 27%, and continued to expand our SMB take rate while driving more leverage across the business.
More and more cross-border SMBs with global operations are using Payoneer’s financial stack. To accelerate our evolution and B2B momentum, we are excited to announce the acquisition of Skuad and welcome to Payoneer the talented entrepreneurs who share our vision of supporting global SMBs. We are combining the strength and reach of Payoneer with Skuad’s comprehensive global workforce and payroll solutions to create a powerful platform that will enhance our customers’ ability to expand their teams worldwide and grow globally.”
John Caplan, Chief Executive Officer
Transaction Details
On August 5, Payoneer acquired Skuad, a global workforce and payroll management company headquartered in Singapore. The acquisition accelerates Payoneer’s strategy to deliver a comprehensive and integrated financial stack for SMBs that operate internationally.
Payoneer acquired Skuad for $61 million cash, subject to adjustments and funded with cash on hand, and up to an additional $20 million of future payments in cash and equity that are contingent upon reaching certain performance and tenure milestones.
Second Quarter 2024 Business Highlights
2024 Guidance
“Payoneer is driving accelerating growth across our entire SMB customer business. We delivered a second consecutive quarter of 21% growth in revenue excluding interest income and $7.5 million of certain non-volume fees earned in the prior year period.
We are raising our 2024 guidance to reflect our significant outperformance in the second quarter and our momentum heading into the second half of 2024. We continue to innovate our product offerings, are accelerating the evolution of our financial stack with our acquisition of Skuad and continue to strengthen our position as the dedicated partner of choice for SMBs with global, cross-border operations.”
Bea Ordonez, Chief Financial Officer
2024 guidance is as follows:
Revenue
$920 million - $930 million
Transaction costs
~16.5% of revenue
Adjusted EBITDA (1)
$225 million to $235 million
(1) Guidance for fiscal year, where adjusted, is provided on a non-GAAP basis, which Payoneer will continue to identify as it reports its future financial results. The Company cannot reconcile its expected adjusted EBITDA to expected net income under “2024 Guidance” without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company's control and/or cannot be reasonably predicted at this time, which unavailable information could have a significant impact on the Company’s GAAP financial results. Please refer to “Financial Information; Non-GAAP Financial Measures” below for a description of the calculation of adjusted EBITDA.
Webcast
Payoneer will host a live webcast of its earnings on a conference call with the investment community beginning at 8:30 a.m. ET today, August 7, 2024. To access the webcast, go to the investor relations section of the Company’s website at https://investor.payoneer.com. A replay will be available on the investor relations website following the call.
About Payoneer
Payoneer is the financial technology company empowering the world’s small and medium-sized businesses to transact, do business, and grow globally. Payoneer was founded in 2005 with the belief that talent is equally distributed, but opportunity is not. It is our mission to enable any entrepreneur and business anywhere to participate and succeed in an increasingly digital global economy. Since our founding, we have built a global financial stack that removes barriers and simplifies cross-border commerce. We make it easier for millions of SMBs, particularly in emerging markets, to connect to the global economy, pay and get paid, manage their funds across multiple currencies, and grow their businesses.
Forward-Looking Statements
This press release includes, and oral statements made from time to time by representatives of Payoneer, may be considered “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Payoneer’s future financial or operating performance. For example, the impact from our acquisition of Skuad and projections of future revenue, transaction cost and adjusted EBITDA are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “expect,” “intend,” “plan,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “potential” or “continue,” or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Payoneer and its management, as the case may be, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (1) changes in applicable laws or regulations; (2) the possibility that Payoneer may be adversely affected by geopolitical events and conflicts, such as the current conflict between Israel and Hamas, and other economic, business and/or competitive factors; (3) changes in the assumptions underlying our financial estimates; (4) the outcome of any known and/or unknown legal or regulatory proceedings; and (5) other risks and uncertainties set forth in Payoneer’s Annual Report on Form 10-K for the period ended December 31, 2023 and future reports that Payoneer may file with the SEC from time to time. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Payoneer does not undertake any duty to update these forward-looking statements.
Financial Information; Non-GAAP Financial Measures
Some of the financial information and data contained in this press release, such as adjusted EBITDA, have not been prepared in accordance with United States generally accepted accounting principles (“GAAP”). Payoneer uses these non-GAAP measures to compare Payoneer’s performance to that of prior periods for budgeting and planning purposes. Payoneer believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Payoneer’s results of operations. Payoneer's method of determining these non-GAAP measures may be different from other companies' methods and, therefore, may not be comparable to those used by other companies and Payoneer does not recommend the sole use of these non-GAAP measures to assess its financial performance. Payoneer management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in Payoneer’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. You should review Payoneer’s financial statements, which are included in Payoneer’s Annual Report on Form 10-K for the year ended December 31, 2023 and its subsequent Quarterly Reports on Form 10-Q, and not rely on any single financial measure to evaluate Payoneer’s business.
Non-GAAP measures include the following item:
Adjusted EBITDA: We provide adjusted EBITDA, a non-GAAP financial measure that represents our net income (loss) adjusted to exclude, as applicable: M&A related expense (income), stock-based compensation expenses, restructuring charges, share in losses (gain) of associated company, loss (gain) from change in fair value of warrants, other financial expense (income), net, taxes on income, and depreciation and amortization.
Other companies may calculate the above measure differently, and therefore Payoneer’s measures may not be directly comparable to similarly titled measures of other companies.
In addition, in this earnings release, we reference volume, which is an operational metric. Volume refers to the total dollar value of transactions successfully completed or enabled by our platform, not including orchestration transactions. For a customer that both receives and later sends payments, we count the volume only once. We also reference ARPU (Average Revenue Per User), which is defined as the Revenue from Active Customers divided by the number of Active Customers over the period in which the Revenue was earned. Active Customers for these purposes are defined as Payoneer accountholders with at least 1 financial transaction over the period. Revenue from Active Customers represents revenue attributed to Active Customers based on their use of the Payoneer platform, including interest income earned from their balances, and excluding revenues unrelated to their activities.
TABLE - 1 PAYONEER GLOBAL INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (U.S. dollars in thousands, except share and per share data)(Unaudited)
Three months ended
June 30,
2024
2023
Revenues $239,520
$
206,734
Transaction costs (Exclusive of depreciation and amortization shown separately below and inclusive of $375 and $436 in interest expense and fees associated with related party transactions during the three months ended June 30, 2024 and 2023, respectively)36,961
28,497
Other operating expenses41,242
40,527
Research and development expenses27,580
27,995
Sales and marketing expenses50,614
48,402
General and administrative expenses26,102
22,012
Depreciation and amortization10,712
5,909
Total operating expenses193,211
173,342
Operating income46,309
33,392
Financial income: Gain from change in fair value of Warrants1,006
13,586
Other financial income, net976
4,318
Financial income, net1,982
17,904
Income before taxes on income48,291
51,296
Taxes on income15,866
5,747
Net income $32,425
$
45,549
Other comprehensive income (loss) Unrealized gain on available-for-sale debt securities, net872
-
Unrealized loss on cash flow hedges, net(699
)
-
Tax benefit on unrealized losses on cash flow hedges, net126
-
Other comprehensive income, net of tax299
-
Comprehensive income $32,724
$
45,549
Per Share Data Net income per share attributable to common stockholders — Basic earnings per share $0.09
$
0.12
— Diluted earnings per share $0.09
$
0.12
Weighted average common shares outstanding — Basic356,315,658
365,000,974
Weighted average common shares outstanding — Diluted373,368,383
387,623,679
Disaggregation of revenue
The following table presents revenue recognized from contracts with customers as well as revenue from other sources:
Three months ended June 30,
2024
2023
Revenue recognized at a point in time $170,751
$141,231
Revenue recognized over time492
7,884
Revenue from contracts with customers $171,243
$149,115
Interest income on customer balances $65,821
$55,293
Capital advance income2,456
2,326
Revenue from other sources $68,277
$57,619
Total revenues $239,520
$206,734
The following table presents the Company’s revenue disaggregated by primary regional market, with 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 revenues, where revenues are disaggregated based on the billing address of the transaction funds source.
Three months ended June 30,
2024
2023
Primary regional markets Greater China(1) $84,439
$71,227
Europe(2)45,609
41,699
Asia-Pacific(2)36,225
27,385
North America(3)22,798
26,041
South Asia, Middle East and North Africa(2)25,914
21,711
Latin America(2)24,535
18,671
Total revenues $239,520
$206,734
1.Greater China is inclusive of mainland China, Hong Kong, Macao and Taiwan.
2.No single country included in any of these regions generated more than 10% of total revenue.
3.The United States is the Company’s country of domicile. Of North America revenues, the US represents $21,645 and $24,995 during the three months ended June 30, 2024 and 2023, respectively.
TABLE - 2 PAYONEER GLOBAL INC. RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (UNAUDITED) (U.S. dollars in thousands)Three months ended
June 30,
2024
2023
Net income $32,425
$
45,549
Depreciation and amortization
10,712
5,909
Taxes on income
15,866
5,747
Other financial income, net
(976
)
(4,318
)
EBITDA58,027
52,887
Stock based compensation expenses(1)
13,666
16,173
M&A related expense(2)
2,091
498
Gain from change in fair value of Warrants(3)
(1,006
)
(13,586
)
Adjusted EBITDA $72,778
$
55,972
Three months ended, June 30, 2023 Sept. 30, 2023 Dec. 31, 2023 Mar. 31, 2024 June 30, 2024 Net income $
45,549
$
12,825
$
27,021
$
28,974
$
32,425
Depreciation and amortization
5,909
7,116
8,750
9,408
10,712
Taxes on income
5,747
10,012
14,272
13,910
15,866
Other financial income, net
(4,318
)
(1,137
)
(3,763
)
(2,747
)
(976
)
EBITDA52,887
28,816
46,280
49,545
58,027
Stock based compensation expenses(1)
16,173
15,330
17,338
15,077
13,666
M&A related expense(2)
498
1,745
451
2,375
2,091
Loss (gain) from change in fair value of Warrants(3)
(13,586
)
7,799
(11,824
)
(1,761
)
(1,006
)
Restructuring charges(4)—
4,488
—
—
—
Adjusted EBITDA $
55,972
$
58,178
$
52,245
$
65,236
$
72,778
1.
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.
2.Amounts relate to M&A-related third-party fees, including related legal, consulting and other expenditures.
3.Changes in the estimated fair value of the warrants are recognized as gain or loss on the condensed consolidated statements of comprehensive income. The impact is removed from EBITDA as it represents market conditions that are not in our control.
4.We initiated a plan to reduce our workforce during the three months ended September 30, 2023, and had non-recurring costs related to severance and other employee termination benefits.
TABLE - 3 PAYONEER GLOBAL INC. EARNINGS PER SHARE (UNAUDITED) (U.S. dollars in thousands, except share and per share data)(Unaudited)
Three months ended June 30,
2024
2023
Numerator: Net income $32,425
$45,549
Denominator: Weighted average common shares outstanding — Basic356,315,658
365,000,974
Add: Dilutive impact of RSUs, ESPP and options to purchase common stock16,327,840
21,928,779
Dilutive impact of private Warrants724,885
693,926
Weighted average common shares — diluted373,368,383
387,623,679
Net income per share attributable to common stockholders — Basic earnings per share $0.09
$0.12
Diluted earnings per share $0.09
$0.12
TABLE - 4 PAYONEER GLOBAL INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) (U.S. dollars in thousands, except share and per share data)June 30,
December 31,
2024
2023
Assets: Current assets: Cash and cash equivalents $575,730
$
617,022
Restricted cash
10,653
7,030
Customer funds
6,037,105
6,390,526
Accounts receivable (net of allowance of $352 at June 30, 2024 and $385 at December 31, 2023)
6,567
7,980
Capital advance receivables (net of allowance of $5,445 at June 30, 2024 and $5,059 at December 31, 2023)
49,478
45,493
Other current assets
53,400
40,672
Total current assets
6,732,933
7,108,723
Non-current assets: Property, equipment and software, net
14,522
15,499
Goodwill
19,889
19,889
Intangible assets, net
88,597
76,266
Restricted cash
6,018
5,780
Deferred taxes
19,051
15,291
Severance pay fund
818
840
Operating lease right-of-use assets
23,078
24,854
Other assets
15,406
15,977
Total assets $
6,920,312
$
7,283,119
Liabilities and shareholders’ equity: Current liabilities: Trade payables $
38,974
$
33,941
Outstanding operating balances
6,037,105
6,390,526
Short term debt from related party
14,984
—
Other payables
100,415
117,508
Total current liabilities
6,191,478
6,541,975
Non-current liabilities: Long-term debt from related party
—
18,411
Warrant liability
5,788
8,555
Other long-term liabilities
53,667
49,905
Total liabilities
6,250,933
6,618,846
Commitments and contingencies Shareholders’ equity: Preferred stock, $0.01 par value, 380,000,000 shares authorized; no shares were issued and outstanding at June 30, 2024 and December 31, 2023.
—
—
Common stock, $0.01 par value, 3,800,000,000 and 3,800,000,000 shares authorized; 382,998,980 and 368,655,185 shares issued and 352,689,391 and 357,590,493 shares outstanding at June 30, 2024 and December 31, 2023, respectively.
3,830
3,687
Treasury stock at cost, 30,309,589 and 11,064,692 shares as of June 30, 2024 and December 31, 2023, respectively.
(154,692
)
(56,936
)
Additional paid-in capital773,888
732,894
Accumulated other comprehensive income (loss)
150
(176
)
Retained earnings (accumulated deficit)46,203
(15,196
)
Total shareholders’ equity669,379
664,273
Total liabilities and shareholders’ equity $
6,920,312
$
7,283,119
TABLE - 5 PAYONEER GLOBAL INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (U.S. dollars in thousands)
Six months ended
June 30,
2024
2023
Cash Flows from Operating Activities Net income $61,399
$
53,487
Adjustment to reconcile net income to net cash provided by operating activities: Depreciation and amortization
20,120
11,948
Deferred taxes
(3,640
)
(9,833
)
Stock-based compensation expenses28,742
33,100
Gain from change in fair value of Warrants
(2,767
)
(13,334
)
Foreign currency re-measurement loss (gain)2,311
(606
)
Changes in operating assets and liabilities: Other current assets(12,728
)
(1,621
)
Trade payables4,606
(13,157
)
Deferred revenue273
407
Accounts receivable, net
1,413
1,618
Capital advance extended to customers
(154,357
)
(138,900
)
Capital advance collected from customers150,372
135,835
Other payables
(17,664
)
(5,259
)
Other long-term liabilities1,168
(1,066
)
Operating lease right-of-use assets4,370
5,053
Interest and amortization of discount on investments
(3,275
)
—
Other assets
571
2,247
Net cash provided by operating activities
80,914
59,919
Cash Flows from Investing Activities Purchase of property, equipment and software
(2,802
)
(2,422
)
Capitalization of internal use software(27,345
)
(12,921
)
Severance pay fund distributions, net22
125
Customer funds in transit, net
(988
)
(54,188
)
Purchases of investments in available-for-sale debt securities(739,185
)
—
Maturities and sales of investments in available-for-sale debt securities
105,000
—
Net cash inflow from acquisition of remaining interest in joint venture
—
5,953
Net cash used in investing activities
(665,298
)
(63,453
)
Cash Flows from Financing Activities Proceeds from issuance of common stock in connection with stock-based compensation plan, net of taxes paid related to settlement of equity awards and proceeds from employee equity transactions to be remitted to employees12,027
12,091
Outstanding operating balances, net
(353,421
)
(309,911
)
Borrowings under related party facility11,920
14,015
Repayments under related party facility
(15,347
)
(14,514
)
Common stock repurchased(98,654
)
(17,125
)
Net cash used in financing activities(443,475
)
(315,444
)
Effect of exchange rate changes on cash and cash equivalents(2,311
)
705
Net change in cash, cash equivalents, restricted cash and customer funds
(1,030,170
)
(318,273
)
Cash, cash equivalents, restricted cash and customer funds at beginning of period7,018,367
6,386,720
Cash, cash equivalents, restricted cash and customer funds at end of period $
5,988,197
$
6,068,447
Supplemental information of investing and financing activities not involving cash flows: Property, equipment, and software acquired but not paid $
1,237
$
870
Internal use software capitalized but not paid $
7,408
$
8,294
Common stock repurchased but not paid $
602
$
2,600
Right of use assets obtained in exchange for new operating lease liabilities $
2,594
$
2,474
View source version on businesswire.com: https://www.businesswire.com/news/home/20240807622293/en/
Investor Contact: Michelle Wang investor@payoneer.com
Media Contact: Alison Dahlman PR@payoneer.com
1 Year Payoneer Global Chart |
1 Month Payoneer Global Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions