Geographic Concentration and Regulatory Environment - The company generated 31% of its revenue from customers in Greater China for the year ended December 31, 2022, indicating significant geographic concentration and exposure to local economic and political conditions [204]. - Future regulatory changes in China may require the company to secure a local license, which could materially adversely affect its business if not obtained [205]. - The company currently supports customers from China through partnerships with regulated banks and licensed payment providers, as it does not hold a license to operate in China [205]. - The company is subject to extensive and complex regulatory requirements across multiple jurisdictions, which may impose overlapping or conflicting obligations [190]. - Any failure to comply with existing or new laws and regulations could result in significant fines, penalties, and operational restrictions, adversely affecting the company's financial condition [192]. - The company has obtained licenses to operate in various jurisdictions, including the United States, Europe, Japan, Australia, and Hong Kong, but future disputes could have a material adverse effect on its business [193]. - The company is required to self-report when exceeding the parameters of its licenses, which could lead to regulatory scrutiny and potential operational changes [193]. - The company has previously disclosed potential violations of OFAC sanctions regulations, which could lead to significant statutory penalties and harm to its reputation [210]. - The company is subject to complex regulations regarding privacy and data protection, with potential fines for non-compliance reaching up to €20 million or 4% of total global annual turnover under GDPR [218]. - The California Consumer Privacy Act (CCPA) became enforceable on July 1, 2020, imposing new rules for data collection and providing consumers with rights to opt out of certain disclosures [214]. - The Personal Information Protection Law (PIPL) in China, effective November 1, 2021, regulates data processing and applies to both Chinese and foreign organizations engaging with Chinese customers [216]. Financial Performance and Position - The company reported revenues of $627.6 million for the year ended December 31, 2022, representing a 32.5% increase from $473.4 million in 2021 [399]. - The company recorded a net loss of $12.0 million in 2022, an improvement compared to a net loss of $34.0 million in 2021 [399]. - The company’s operating loss narrowed to $22.2 million in 2022 from $30.2 million in 2021, indicating improved operational efficiency [399]. - The company reported a comprehensive loss of $14.4 million in 2022, compared to a comprehensive loss of $35.9 million in 2021, showing a trend towards reduced losses [399]. - Cash provided by operating activities increased significantly to $83,960,000 in 2022 from $20,015,000 in 2021 [406]. - Total cash, cash equivalents, restricted cash, and customer funds at the end of 2022 reached $6,386,720,000, up from $4,838,433,000 in 2021 [408]. - Total current assets increased to $6.47 billion in 2022, up from $4.96 billion in 2021, driven by a rise in customer funds to $5.84 billion from $4.40 billion [396]. - Total liabilities increased to $6.05 billion in 2022, up from $4.59 billion in 2021, primarily due to higher outstanding operating balances [396]. - The allowance for Capital Advances receivables was $5.3 million in 2022, compared to $2.4 million in 2021, reflecting increased credit loss estimates [396]. - The company has recorded liabilities for uncertain tax positions amounting to $17.3 million as of December 31, 2022 [390]. Market Risks and Financial Controls - The trading market for the company's common stock is expected to remain volatile, influenced by various factors including market conditions and regulatory developments [231]. - A hypothetical 1% increase or decrease in interest rates could have a material effect on the company's financial results based on customer funds balance as of year-end 2022 [360]. - A hypothetical 10% increase or decrease in current exchange rates could have a material impact on the company's financial results as of year-end 2022 [365]. - The company is exposed to market risks including interest rate changes and foreign currency fluctuations [359]. - The company's internal control over financial reporting was maintained effectively as of December 31, 2022 [377]. - The company faces significant challenges in maintaining effective internal controls over financial reporting, which are essential for compliance with the Sarbanes-Oxley Act [225]. Strategic Growth and Acquisitions - The company is actively evaluating potential strategic acquisitions and partnerships as part of its growth strategy, but there are risks associated with identifying and integrating these opportunities [221][222]. - The acquisition of Optile had a net cash impact of $15,482,000 in 2020, with no cash impact reported in 2021 and 2022 [406]. - The net fair value of assets acquired in the Optile acquisition included $20,449 million in goodwill and $17,805 million in identifiable intangible assets [410]. - Total cash paid for the acquisition, net of cash acquired, was $15,482 million [410]. Research and Development - Research and development expenses rose to $115.0 million in 2022, up 42.3% from $80.8 million in 2021, indicating a focus on innovation [399]. - Research and development expenses consist primarily of employee compensation and related costs, professional services, and consulting expenses related to new technology development [494]. Revenue Recognition and Transaction Costs - The Company recognizes revenue from transaction fees, which vary based on transaction size and volume, at the time the underlying transactions occur [476]. - Capital Advance fees are recognized over the advance period when the Company retains the right to future receivables [478]. - Revenue from global bank transfers is recorded when the funds transfer is executed and delivered to the beneficiary, with revenue deferred until delivery [479]. - Interest earned on customer funds balances is recognized as revenue [481]. - Customer acquisition costs, including rewards and sales commissions, are capitalized as other assets on the consolidated balance sheets [482]. - The Company established an allowance for potential uncollectible amounts related to CA receivables, reflecting transaction costs on the statement of comprehensive loss [447]. - The Company applies macroeconomic factors such as unemployment rates and GDP forecasts to estimate expected credit losses for CA receivables [448]. - The provision for transaction losses, including the allowance for credit and debit card collections, totaled $6,617 and $4,072 as of December 31, 2022, and 2021 respectively [490]. - Transaction costs are primarily driven by transaction size and volume, including fees paid to banks and processors, which are net of any rebate programs [489]. Environmental and Compliance Considerations - The company acknowledges that climate change and environmental issues could disrupt operations and may lead to increased compliance costs due to evolving ESG regulations [189]. - The company may incur substantial costs to comply with evolving data protection laws, which could affect its ability to develop new services and features [217]. - Recent legal developments in Europe have created uncertainty regarding the transfer of personal data from the EEA to the U.S., impacting the company's data processing practices [213].

Start Time: 16:30 January 1, 0000 5:20 PM ET Payoneer Global Inc. (NASDAQ:PAYO) Q3 2022 Earnings Conference Call November 09, 2022, 16:30 PM ET Company Participants Scott Galit - Co-CEO John Caplan - Co-CEO Michael Levine - CFO Michelle Wang - VP, IR Conference Call Participants Will Nance - Goldman Sachs Sanjay Sakhrani - Keefe, Bruyette & Woods Josh Siegler - Cantor Fitzgerald Cris Kennedy - William Blair Mayank Tandon - Needham Mike Grondahl - Northland Securities Operator Good afternoon and thank you fo ...

Revenue Growth - Revenues for the three months ended September 30, 2022, were $158.9 million, a 30% increase from $122.7 million in the prior year, and for the nine months, revenues were $444.1 million, up 33% from $334.2 million[132]. - Payoneer processed $44.4 billion in volume during the nine months ended September 30, 2022, compared to $40.5 billion in the same period of 2021, reflecting a strong growth trajectory[122]. - Volume grew by 11% and 9% for the three and nine months ended September 30, 2022, reaching $15.1 billion and $44.4 billion respectively, driven by customer acquisition and growth in digital commerce[174]. Expenses - Research and development expenses increased by 47% to $29.6 million for the three months ended September 30, 2022, and by 49% to $82.1 million for the nine months, driven by increased headcount and related costs[140][141]. - Sales and marketing expenses rose by 39% to $41.1 million for the three months ended September 30, 2022, and by 40% to $112.4 million for the nine months, primarily due to higher employee compensation and marketing program spending[142][143]. - General and administrative expenses increased by $5.7 million, or 36%, to $21.7 million for the three months ended September 30, 2022, driven by higher employee-related expenses and consultant costs[145]. - For the nine months ended September 30, 2022, general and administrative expenses rose by $15.4 million, or 34%, totaling $60.0 million, primarily due to increased compensation and consultant expenses[146]. - Depreciation and amortization expenses were $5.9 million and $15.5 million for the three and nine months ended September 30, 2022, reflecting increases of 33% and 15% respectively[147]. - Transaction costs for the three months ended September 30, 2022, were $28.0 million, a 13% increase, while for the nine months, they were $79.8 million, up 9%, reflecting a 9% increase in transaction volume[136][137]. Operating Performance - Operating loss improved to $(5.1) million for the three months ended September 30, 2022, compared to $(6.5) million in the prior year, and $(13.7) million for the nine months, a significant improvement from $(26.0) million[132]. - Adjusted EBITDA for the three months ended September 30, 2022, was $12.7 million, compared to $6.1 million in the prior year, while for the nine months it was $37.9 million versus $14.6 million[178]. Cash Flow and Financial Position - Net cash provided by operating activities was $44.3 million for the nine months ended September 30, 2022, an increase of $33.5 million compared to the prior year[165]. - Net cash used in investing activities was $13.9 million for the nine months ended September 30, 2022, an increase of $9.4 million compared to the prior year, primarily due to purchases of property and equipment[170]. - Net cash provided by financing activities was $655.7 million for the nine months ended September 30, 2022, a decrease of $31.2 million compared to the prior year, mainly due to the absence of inflow from the Reverse Recapitalization[171]. - As of September 30, 2022, the company had $507.9 million in cash and cash equivalents, which is expected to meet operating and capital expenditure requirements for at least the next twelve months[161]. Market and Economic Factors - The geopolitical conflict between Russia and Ukraine had a limited impact on revenues, with combined revenues from these regions accounting for less than 10% of total revenue[125]. - The COVID-19 pandemic has shifted buying patterns towards e-commerce, which has positively influenced Payoneer's role in the global economy, although recent trends indicate softening growth rates[127]. - Most revenue is earned in U.S. dollars, minimizing significant foreign currency risk, although fluctuations in currencies like the Euro and British Pound could impact results[7]. - The company has the potential to generate revenues from optimizing foreign exchange during payment delivery, which can materially affect revenues and earnings[8]. - A hypothetical 10% increase or decrease in current exchange rates could have a material impact on the company's financial results[9]. Strategic Outlook - The company expects to continue investing in global platform growth, product development, and regulatory expansion, alongside pursuing acquisitions to enhance customer value[123]. - Payoneer aims to increase monetization rates by focusing on higher monetization regions and introducing new services like the Payoneer Commercial Mastercard[121]. Accounting and Compliance - The company is classified as an emerging growth company under the JOBS Act, allowing it to delay the adoption of new accounting standards until they apply to private companies[10]. - The company will become a large accelerated filer at the end of fiscal year 2022, losing its emerging growth company status[11]. - A fair value adjustment of a liability from the 2020 acquisition of Optile was noted, impacting the financial results[3]. - The company reported non-recurring reorganizational costs related to legal and professional services associated with the Reorganization[2]. - As of September 30, 2022, the company's cash and cash equivalents were primarily held in cash deposits and money market funds, with a hypothetical 1% interest rate change potentially having a material effect on financial results[5].

Payoneer Global Inc. (NASDAQ:PAYO) Q2 2022 Earnings Conference Call August 11, 2022 4:30 PM ET Company Participants Michelle Wang - Vice President, Investor Relations Scott Galit - Co-Chief Executive Officer John Caplan - Co-Chief Executive Officer Michael Levine - Chief Financial Officer Conference Call Participants Bob Napoli - William Blair Will Nance - Goldman Sachs Sanjay Sakhrani - KBW Josh Siegler - Cantor Fitzgerald Ashwin Shirvaikar - Citi Sam Salvas - Needham & Co Mike Grondahl - Northland Securit ...

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. FORM 10-Q Table of Contents ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the quarterly period ended June 30, 2022 (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation) (Commission File Number) ...

○Payoneer Connecting Today's Borderless World Investor Presentation | May 2022 Disclaimers This presentation does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any security. You should not construe the contents of this presentation as legal, tax, accounting or investment advice or a recommendation. Please see our SEC filings under "Payoneer Global Inc." for the most up to date information. Forward-Looking Statements Certain statements in this presentatio ...

Payoneer Global Inc. (NASDAQ:PAYO) Q1 2022 Earnings Conference Call May 12, 2022 5:00 PM ET Company Participants Scott Galit – Chief Executive Officer Michael Levine – Chief Financial Officer Conference Call Participants Robert Napoli – William Blair & Company Ashwin Shirvaikar – Citi Sanjay Sakhrani – Keefe, Bruyette & Woods, Inc. Josh Siegler – Cantor Fitzgerald Kyle Peterson – Needham & Company Andrew Hummel – WestPark Capital, Inc. Operator Good afternoon ladies and gentlemen. Thank you for standing by. ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) Unaudited Q1 2022 financials report 36% revenue growth to $137.0 million and $20.2 million net income, driven by warrant gains [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20consolidated%20balance%20sheets%20%28Unaudited%29) Total assets increased to $5.31 billion from $5.08 billion, with liabilities at $4.79 billion and equity at $522.0 million Condensed Consolidated Balance Sheet Data (in thousands) | Account | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $465,734 | $465,926 | | Customer funds | $4,630,553 | $4,401,254 | | Total current assets | $5,185,537 | $4,962,723 | | Total assets | $5,307,852 | $5,078,752 | | **Liabilities & Equity** | | | | Outstanding operating balances | $4,630,553 | $4,401,254 | | Total liabilities | $4,785,888 | $4,591,679 | | Total shareholders' equity | $521,964 | $487,073 | [Condensed Consolidated Statements of Income (Loss)](index=6&type=section&id=Condensed%20consolidated%20statements%20of%20income%20%28loss%29%20%28Unaudited%29) Q1 2022 revenues grew 36% to $137.0 million, resulting in a $20.2 million net income, primarily from warrant fair value gains Q1 2022 vs Q1 2021 Income Statement (in thousands, except per share data) | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Revenues | $136,958 | $100,606 | | Total operating expenses | $143,301 | $101,755 | | Operating loss | $(6,343) | $(1,149) | | Gain from change in fair value of Warrants | $31,196 | $0 | | Net income (loss) | $20,211 | $(3,508) | | Diluted earnings (loss) per share | $0.06 | $(0.16) | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=7&type=section&id=Condensed%20consolidated%20statements%20of%20comprehensive%20income%20%28loss%29%20%28Unaudited%29) Q1 2022 comprehensive income was $20.6 million, a significant improvement from a $4.7 million loss in the prior year Comprehensive Income (Loss) (in thousands) | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net income (loss) | $20,211 | $(3,508) | | Foreign currency translation adjustments | $390 | $(1,189) | | **Comprehensive income (loss)** | **$20,601** | **$(4,697)** | [Condensed Consolidated Statements of Changes in Shareholders' Equity](index=8&type=section&id=Condensed%20consolidated%20statements%20of%20changes%20in%20redeemable%20preferred%20stock%2C%20redeemable%20convertible%20preferred%20stock%20and%20shareholders%27%20equity%20%28deficit%29%20%28Unaudited%29) Shareholders' equity increased to $522.0 million in Q1 2022, driven by net income and stock-based compensation - Shareholders' equity increased by **$34.9 million** during Q1 2022, from **$487.1 million** to **$522.0 million**[25](index=25&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20consolidated%20statements%20of%20cash%20flows%20%28Unaudited%29) Q1 2022 operating cash flow was $2.4 million, with investing activities providing $28.0 million and financing $233.6 million Summary of Cash Flows (in thousands) | Activity | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $2,372 | $(16,468) | | Net cash provided by (used in) investing activities | $27,953 | $(8,034) | | Net cash provided by financing activities | $233,611 | $2,430 | [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20condensed%20consolidated%20financial%20statements%20%28Unaudited%29) Notes detail accounting policies, Russia-Ukraine conflict impact (immaterial), CECL adoption, and revenue disaggregation by geography - The Russia-Ukraine conflict's impact on revenue was immaterial in Q1 2022. Russia, Belarus, and Ukraine combined accounted for slightly less than **10%** of revenue for the quarter[43](index=43&type=chunk) - The company early adopted the new CECL guidance for credit losses on financial instruments effective January 1, 2022, resulting in a cumulative effect adjustment to retained earnings[66](index=66&type=chunk) Revenue by Primary Geographical Market (in thousands) | Region | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Greater China | $43,041 | $39,614 | | United States | $19,782 | $8,053 | | All other countries | $74,135 | $52,939 | | **Total revenues** | **$136,958** | **$100,606** | - The company entered into a Warehouse Facility agreement with related party Viola Credit for external financing of its Capital Advance activity, with an initial committed amount of **$25 million**[77](index=77&type=chunk)[78](index=78&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q1 2022 revenue grew 36% to $137.0 million, with volume up 10% to $14.6 billion, while operating expenses increased 41% Q1 2022 vs Q1 2021 Operational Results (in thousands) | Metric | Q1 2022 | Q1 2021 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $136,958 | $100,606 | 36% | | Total operating expenses | $143,301 | $101,755 | 41% | | Operating loss | $(6,343) | $(1,149) | 452% | | Net income (loss) | $20,211 | $(3,508) | (676)% | - Revenue growth of **36%** was driven by increased acquisition of new customers and fast growth in several developing markets[132](index=132&type=chunk) - Operating expenses increased across the board, primarily due to higher employee compensation from increased headcount in R&D (**+56%**), Sales & Marketing (**+49%**), and G&A (**+72%**)[135](index=135&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk) Key Metrics and Non-GAAP Measures (in millions) | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Volume | $14,620 | $13,341 | | Adjusted EBITDA | $10.4 | $7.8 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rate changes and significant foreign currency fluctuations, with potential material impact - Interest rate sensitivity on cash and cash equivalents is low due to the short-term nature of the instruments. A hypothetical **1%** change in rates on the Warehouse Facility debt would not have a material effect[174](index=174&type=chunk)[175](index=175&type=chunk) - The company has significant foreign currency exposure from its global operations. A hypothetical **10%** increase or decrease in exchange rates could have a material impact on financial results[176](index=176&type=chunk)[180](index=180&type=chunk) - The company is an emerging growth company under the JOBS Act and has elected to use the extended transition period for new accounting standards, but expects to lose this status at the end of fiscal year 2022[181](index=181&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of March 31, 2022, with no material changes to internal controls - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2022[184](index=184&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[185](index=185&type=chunk) [PART II - OTHER INFORMATION](index=34&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various litigation matters incidental to its business, as detailed in Note 8 of the financial statements - The company is involved in various litigation matters that arise in the ordinary course of business. For more details, refer to Note 8 (Commitment and Contingencies)[188](index=188&type=chunk) [Item 1A. Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the Annual Report on Form 10-K - As of the filing date, no material changes have occurred to the risk factors disclosed in the Annual Report on Form 10-K[190](index=190&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds were reported for the period - None[191](index=191&type=chunk) [Item 3. Defaults upon Senior Securities](index=34&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) No defaults upon senior securities were reported for the period - None[192](index=192&type=chunk) [Item 4. Mine Safety Disclosures](index=34&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[193](index=193&type=chunk) [Item 5. Other Information](index=34&type=section&id=Item%205.%20Other%20Information) No other information to report for the period - None[194](index=194&type=chunk) [Item 6. Exhibits](index=35&type=section&id=Item%206.%20Exhibits) Exhibits include employment agreements and CEO/CFO certifications required by the Sarbanes-Oxley Act - Exhibits filed with the report include CEO and CFO certifications pursuant to Rules 13a-14, 15d-14, and Section 906 of the Sarbanes-Oxley Act[198](index=198&type=chunk)

Payoneer Global Inc. (NASDAQ:PAYO) Q4 2021 Earnings Conference Call March 3, 2022 4:30 PM ET Company Participants Scott Galit – Chief Executive Officer Michael Levine – Chief Financial Officer Conference Call Participants Keeler Patton – Cantor Fitzgerald Will Nance – Goldman Sachs Sam Salvas – Needham and Company Bob Napoli – William Blair Mike Grondahl – Northland Securities Ashwin Shirvaikar – Citi Andrew Hummel – WestPark Capital Operator Good afternoon, ladies and gentlemen, thank you for standing by. ...

Part I [Business Overview](index=4&type=section&id=Item%201.%20Business) Payoneer operates a global payment and commerce-enabling platform for digital businesses, facilitating cross-border transactions and offering diverse financial services globally - Payoneer, founded in 2005, is a global payment and commerce-enabling platform democratizing access to global commerce for SMBs[17](index=17&type=chunk) Fiscal Year 2021 Performance Highlights | Metric | Value | | :--- | :--- | | Revenue | $473.4 million | | Revenue Growth (YoY) | 37% | | Supported Trade Corridors | Over 7,000 | | Countries and Territories Served | Over 190 | | Average New Customer Applications per Month | Over 300,000 | - The company's growth strategy focuses on leveraging marketplace ecosystems and B2B AP/AR, expanding partnerships, extending product offerings, and pursuing strategic M&A[65](index=65&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk) - Payoneer is regulated as a non-bank financial institution in key markets including the United States, Europe, Hong Kong, Japan, Australia, and India[39](index=39&type=chunk) - As of December 31, 2021, Payoneer's workforce comprised **1,871 employees** across 32 countries and 58 nationalities[91](index=91&type=chunk) [Risk Factors](index=16&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant business, regulatory, operational, and financial risks, including intense competition, customer concentration, evolving global regulations, cybersecurity threats, and a history of net losses - A significant concentration risk exists with Amazon, which generated an estimated **24% of Payoneer's 2021 revenues**[125](index=125&type=chunk) - The company faces substantial competition from traditional banks, global digital platforms, and merchant service providers[117](index=117&type=chunk)[119](index=119&type=chunk) - Approximately **24% of 2021 revenue** was generated from Greater China, exposing the company to local economic, political, and regulatory changes, including ongoing license application processes[210](index=210&type=chunk)[211](index=211&type=chunk) - The business is subject to extensive global regulations, including money transmission, data protection, and anti-money laundering laws, with non-compliance potentially leading to significant fines and penalties[195](index=195&type=chunk)[216](index=216&type=chunk)[219](index=219&type=chunk) - The company has a history of net losses, including **$34.0 million in 2021**, **$23.7 million in 2020**, and **$0.6 million in 2019**, with anticipated increasing future expenses[126](index=126&type=chunk) - Cybersecurity breaches, system failures, and unauthorized data disclosure pose significant risks, potentially leading to liability, reputational damage, and service disruptions[162](index=162&type=chunk)[164](index=164&type=chunk) [Unresolved Staff Comments](index=42&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - There are no unresolved staff comments[266](index=266&type=chunk) [Properties](index=42&type=section&id=Item%202.%20Properties) Payoneer's principal executive office is in New York City, with all global office spaces leased and deemed adequate for immediate needs - The company's principal executive office is in New York City, with additional leased offices in major global metropolitan areas[267](index=267&type=chunk) [Legal Proceedings](index=42&type=section&id=Item%203.%20Legal%20Proceedings) The company is not currently party to any legal proceedings expected to significantly affect its financial position or profitability - Payoneer is not presently party to any legal proceedings expected to significantly impact its financial position or profitability[268](index=268&type=chunk) [Mine Safety Disclosures](index=42&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[269](index=269&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=43&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Payoneer's common stock and warrants trade on Nasdaq, with **353 holders of record** as of February 25, 2022, no cash dividends paid, and recent share repurchases for tax liabilities - The company's common stock and warrants trade on The Nasdaq Global Market under symbols \"PAYO\" and \"PAYOW\"[272](index=272&type=chunk) - As of February 25, 2022, there were **353 holders of record** for the company's common stock[273](index=273&type=chunk) - The company has not paid any cash dividends on its common stock to date[274](index=274&type=chunk) Issuer Purchases of Equity Securities (Q4 2021) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Oct 2021 | N/A | N/A | | Nov 2021 | N/A | N/A | | Dec 2021 | 279,596 | $6.46 | | **Total** | **279,596** | **$6.46** | [Reserved](index=44&type=section&id=Item%206.%20Reserved) This item is reserved and contains no information [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=46&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2021, Payoneer's revenue grew **37% to $473.4 million** driven by increased transaction volume, though net loss widened to **$34.0 million** due to higher operating expenses following its June 2021 public listing and reorganization Key Financial Performance (2021 vs. 2020) | Metric (in thousands) | 2021 | 2020 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $473,403 | $345,592 | $127,811 | 37% | | **Transaction costs** | $101,476 | $97,040 | $4,436 | 5% | | **Operating loss** | ($30,209) | ($17,295) | ($12,914) | 75% | | **Net loss** | ($33,987) | ($23,746) | ($10,241) | 43% | Transaction Volume Trend (2019-2021) | Year | Volume (in billions) | YoY Growth | | :--- | :--- | :--- | | 2019 | $28.9 | 35% | | 2020 | $44.4 | 53% | | 2021 | $56.7 | 28% | Adjusted EBITDA Reconciliation (in thousands) | Metric | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | **Net loss** | $(33,987) | $(23,746) | $(625) | | Depreciation and amortization | 17,997 | 17,095 | 10,341 | | Stock based compensation | 37,012 | 10,892 | 9,535 | | Reorganization related expenses | 5,087 | — | — | | Gain from change in fair value of Warrants | (11,824) | — | — | | Other adjustments | (1,684) | (4,161) | 1,179 | | **Adjusted EBITDA** | **$28,166** | **$6,388** | **$24,615** | - The company completed its reorganization with FTAC Olympus Acquisition Corp. on June 25, 2021, becoming publicly traded and raising **$874.5 million** in gross proceeds[294](index=294&type=chunk)[354](index=354&type=chunk) - As of December 31, 2021, the company held **$465.9 million** in cash and cash equivalents, deemed sufficient for at least the next twelve months of operating and capital expenditure requirements[358](index=358&type=chunk)[359](index=359&type=chunk) [Quantitative and Qualitative Disclosures About Market Risks](index=61&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risks) Payoneer is exposed to market risks, primarily from interest rate changes affecting borrowings and foreign currency fluctuations impacting global operations and financial results - The company is exposed to interest rate risk, with floating-rate borrowings under its Warehouse Facility, where a hypothetical **1% change** could materially affect financial results[416](index=416&type=chunk) - Payoneer faces foreign currency risk from global operations, with expenses and balances in various currencies subject to exchange rate fluctuations despite most revenue being in U.S. dollars[417](index=417&type=chunk)[418](index=418&type=chunk) [Financial Statements and Supplementary Data](index=63&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited consolidated financial statements for Payoneer Global Inc. for fiscal years 2019-2021, including balance sheets, statements of loss, comprehensive income, shareholders' equity, and cash flows, reflecting the 2021 reverse recapitalization Consolidated Balance Sheet Data (in thousands) | Account | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Total Current Assets** | $4,962,723 | $3,570,459 | | **Total Assets** | $5,078,752 | $3,669,684 | | **Total Current Liabilities** | $4,497,828 | $3,440,922 | | **Total Liabilities** | $4,591,679 | $3,479,850 | | **Total Shareholders' Equity** | $487,073 | $24,299 | Consolidated Statement of Loss Data (in thousands) | Account | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | **Revenues** | $473,403 | $345,592 | $317,750 | | **Operating loss** | $(30,209) | $(17,295) | $3,641 | | **Net loss** | $(33,987) | $(23,746) | $(625) | | **Net loss per share (Basic & Diluted)** | $(0.33) | $(0.80) | $(0.33) | Consolidated Statement of Cash Flows Data (in thousands) | Account | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | **Net cash from operating activities** | $20,015 | $9,526 | $(14,312) | | **Net cash from investing activities** | $10,156 | $(66,854) | $(20,581) | | **Net cash from financing activities** | $1,396,195 | $1,673,464 | $353,743 | Revenue by Geographic Market (in thousands) | Region | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Greater China | $160,583 | $127,307 | $103,531 | | United States | $55,941 | $38,729 | $69,016 | | All other countries | $256,879 | $179,556 | $145,203 | | **Total revenues** | **$473,403** | **$345,592** | **$317,750** | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=116&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants regarding accounting principles, financial disclosure, or auditing scope - None[702](index=702&type=chunk) [Controls and Procedures](index=116&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of December 31, 2021, with no material changes to internal control over financial reporting, and no management assessment or auditor attestation report is included as permitted for newly public companies - The CEO and CFO concluded the company's disclosure controls and procedures were effective as of December 31, 2021[704](index=704&type=chunk) - The annual report does not include a management report or auditor attestation on internal control over financial reporting, as permitted for newly public companies[706](index=706&type=chunk) Part III [Items 10-14](index=117&type=section&id=Items%2010-14) Information for Items 10 through 14, covering directors, executive officers, corporate governance, compensation, security ownership, and related transactions, is incorporated by reference from the forthcoming 2022 Proxy Statement - Information for Items 10, 11, 12, 13, and 14 is incorporated by reference from the forthcoming 2022 Proxy Statement[711](index=711&type=chunk)[712](index=712&type=chunk)[713](index=713&type=chunk)[714](index=714&type=chunk)[715](index=715&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=117&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the financial statements, financial statement schedules, and exhibits filed as part of the Form 10-K report, including an exhibit index and noting the omission of certain schedules - This section contains the index to the consolidated financial statements and the list of exhibits filed with the Form 10-K[717](index=717&type=chunk)[718](index=718&type=chunk) [Form 10-K Summary](index=119&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company indicates there is no Form 10-K summary - None[723](index=723&type=chunk)