Group 1 - Payoneer Global Inc. (NASDAQ: PAYO) has been trading near its lows after being public for over 4 years, indicating potential undervaluation in the market [1] - The company has consistently demonstrated strong growth despite challenges such as the Russian invasion, showcasing its resilience in the global payments sector [1]

Financial Performance - Revenues for the three months ended March 31, 2025, were $246.6 million, an increase of $18.4 million or 8% compared to the prior year[152]. - Operating income decreased by 24% to $29.3 million for the three months ended March 31, 2025, compared to $38.4 million in the prior year[152]. - Net income for the three months ended March 31, 2025, was $20.6 million, a decrease of 29% compared to $29.0 million in the prior year[152]. - Adjusted EBITDA for the three months ended March 31, 2025, was $65.431 million, slightly up from $65.236 million in the same period of 2024[193]. - The company experienced an $8.4 million year-over-year decrease in net income for the three months ended March 31, 2025, primarily due to a $27.5 million increase in operating expenses[176]. Expenses - General and administrative expenses increased by 24% to $29.9 million for the three months ended March 31, 2025, primarily due to higher employee compensation and consulting expenses[159]. - Research and development expenses rose by 16% to $37.3 million for the three months ended March 31, 2025, driven by increased employee-related expenses and restructuring charges[157]. Cash Flow and Investments - As of March 31, 2025, the company had $524.2 million in cash and cash equivalents[168]. - Net cash provided by operating activities increased to $53.7 million for the three months ended March 31, 2025, up from $39.5 million in the same period of 2024, representing a growth of 36%[175]. - Net cash used in investing activities decreased to $48.0 million for the three months ended March 31, 2025, from $114.1 million in the same period of 2024, a reduction of 58%[182]. - Net cash used in financing activities was $402.4 million for the three months ended March 31, 2025, down from $521.1 million in the same period of 2024, a decrease of 23%[184]. Acquisitions - Payoneer acquired 100% of Payeco Finance Information Holding Corporation on April 9, 2025, enhancing its regulatory infrastructure in China[149]. - The company also acquired Skuad Pte. Ltd. on August 5, 2024, to strengthen its financial services for SMBs operating internationally[150]. Market Conditions and Risks - The ongoing geopolitical conflicts, including the war in Ukraine and the conflict in Israel, may impact future revenues and operations, although current effects have been minimal[143][148]. - The company is monitoring the impacts of evolving tax legislation, with a global minimum tax of 15% applicable from January 1, 2025, in certain jurisdictions[165]. Share Repurchase - The company repurchased 1,880,309 shares of common stock for $17.0 million during the three months ended March 31, 2025, with $86.8 million remaining available for future repurchases[170]. - The company has authorized a stock repurchase program of up to $250.0 million, which expires on December 31, 2025[169]. Foreign Exchange Revenue - Payoneer has the opportunity to generate revenues from foreign exchange transactions as part of the payment delivery process[206]. - The ability to generate revenues from foreign exchange is partially dependent on external factors such as market conditions and applicable regulations[206]. - Optimizing foreign exchange efforts can have a material impact on revenues and earnings[206].

Core Insights - Payoneer Global Inc. reported quarterly earnings of $0.05 per share, missing the Zacks Consensus Estimate of $0.07 per share, and down from $0.08 per share a year ago, representing an earnings surprise of -28.57% [1] - The company posted revenues of $246.62 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.70%, and up from $228.18 million year-over-year [2] - Payoneer Global shares have declined approximately 29% since the beginning of the year, contrasting with the S&P 500's decline of -4.7% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.07 on revenues of $251.53 million, and for the current fiscal year, it is $0.28 on revenues of $1.04 billion [7] - The estimate revisions trend for Payoneer Global is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Financial Transaction Services industry, to which Payoneer Global belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting that companies in the top half of Zacks-ranked industries tend to outperform those in the bottom half by more than 2 to 1 [8]

Payoneer Global (PAYO) Q1 2025 Earnings Call May 07, 2025 08:30 AM ET Company Participants Michelle Wang - Vice President-Investor RelationsJohn Caplan - Chief Executive OfficerBea Ordonez - Chief Financial OfficerDaniel Krebs - Senior AssociateWill Nance - Vice PresidentTrevor Williams - Managing DirectorSanjay Sakhrani - Managing Director Conference Call Participants Cristopher Kennedy - Research Analyst, Financial Services and Technology Operator Morning and thank you for standing by. Welcome to the Payo ...

Payoneer Global (PAYO) Q1 2025 Earnings Call May 07, 2025 08:30 AM ET Company Participants Michelle Wang - Vice President-Investor RelationsJohn Caplan - Chief Executive OfficerBea Ordonez - Chief Financial OfficerDaniel Krebs - Senior AssociateWill Nance - Vice PresidentTrevor Williams - Managing DirectorSanjay Sakhrani - Managing Director Conference Call Participants Cristopher Kennedy - Research Analyst, Financial Services and Technology Operator Morning and thank you for standing by. Welcome to the Payo ...

Payoneer Global (PAYO) Q1 2025 Earnings Call May 07, 2025 08:30 AM ET Speaker0 Morning and thank you for standing by. Welcome to the Payoneer's First Quarter twenty twenty five Earnings Conference Call. At this time, all lines have been placed on mute to prevent any background noise. Following the speakers' remarks, there will be a question and answer session that will open your line for questions. As a reminder, this conference call is being recorded. I would now like to turn the call over to Michelle Wang ...

1Q 2025 Investor Presentation Forward-Looking Statements Certain statements in this presentation 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 the Company's future financial or operating performance. For example, projections of future revenue growth and adjusted EBITDA margin are forward-looking statements. In some cases, ...

[Payoneer First Quarter 2025 Financial Results](index=1&type=section&id=Payoneer%20First%20Quarter%202025%20Financial%20Results) Payoneer's Q1 2025 results show revenue growth and profitability, with a suspended 2025 outlook [Financial & Business Highlights](index=1&type=section&id=Financial%20%26%20Business%20Highlights) Payoneer's Q1 2025 highlights include 8% revenue growth driven by volume and take rate expansion, and strategic achievements [Q1 2025 Financial Highlights](index=1&type=section&id=Q1%202025%20Financial%20Highlights) Key financial metrics for Q1 2025 show revenue growth excluding interest income, but a decrease in net income Q1 2025 Key Financial Metrics | ($ in millions) | 1Q 2024 | 1Q 2025 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue ex. interest income | $162.9 | $188.6 | 16% | | Interest income | $65.3 | $58.0 | (11)% | | **Revenue** | **$228.2** | **$246.6** | **8%** | | Net income | $29.0 | $20.6 | (29)% | | Adjusted EBITDA | $65.2 | $65.4 | 0% | | Volume ($ in billions) | $18.5 | $19.7 | 7% | | Active ICPs ('000s) | 530 | 556 | 5% | - Revenue excluding interest income grew **16%** year-over-year, while total revenue grew **8%**. Net income decreased by **29%** YoY to **$20.6 million**[1](index=1&type=chunk)[2](index=2&type=chunk) - The take rate for SMB customers increased by **11 bps** YoY to **119 bps**, contributing to stronger revenue performance relative to volume[2](index=2&type=chunk)[3](index=3&type=chunk) [Q1 2025 Business Highlights](index=1&type=section&id=Q1%202025%20Business%20Highlights) Business highlights include strong ARPU growth, increased card usage, and a strategic acquisition in China - Average Revenue Per User (ARPU) excluding interest income grew **22%**, marking the seventh consecutive quarter of acceleration[6](index=6&type=chunk) SMB Customer Revenue Growth (YoY) | SMB Segment | Q1 2025 Revenue | YoY Growth | | :--- | :--- | :--- | | SMBs on marketplaces | $110 million | 8% | | B2B SMBs | $52 million | 37% | | Merchant Services (Checkout) | $7 million | 96% | - Spend on Payoneer cards increased **29%** YoY to **$1.4 billion**[12](index=12&type=chunk) - Customer funds grew **11%** YoY to **$6.6 billion** as of March 31, 2025[12](index=12&type=chunk) - In April 2025, Payoneer completed the acquisition of Easylink Payment Co., Ltd., a licensed China-based payment service provider, to strengthen its regulatory infrastructure and service for Chinese customers[4](index=4&type=chunk)[12](index=12&type=chunk) - The company repurchased **$17 million** of shares at an average price of **$9.04**, a slowdown from the **$51 million** repurchased in the prior year period[12](index=12&type=chunk) [2025 Outlook](index=2&type=section&id=2025%20Outlook) Payoneer suspended its full-year 2025 guidance due to uncertain global macroeconomic and trade conditions - Payoneer has suspended its full-year 2025 guidance due to macroeconomic uncertainty[7](index=7&type=chunk)[9](index=9&type=chunk) - The company faces substantial risks from the uncertain global macro and trade environment, which could negatively impact the cross-border businesses it serves[9](index=9&type=chunk) - Management remains focused on supporting customers and positioning the company to capture new opportunities that may arise from shifts in global trade and supply chains[10](index=10&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements for Q1 2025 detail revenues, net income, balance sheet, and cash flow [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) The comprehensive income statement for Q1 2025 details total revenues and net income Consolidated Statements of Comprehensive Income (Unaudited) | (U.S. dollars in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | **Revenues** | **$246,617** | **$228,183** | | Total operating expenses | $217,298 | $189,807 | | **Operating income** | **$29,319** | **$38,376** | | Income before income taxes | $27,769 | $42,884 | | **Net income** | **$20,577** | **$28,974** | | Comprehensive income | $29,327 | $29,001 | - Operating expenses increased to **$217.3 million** from **$189.8 million** YoY, driven by increases across all categories, including R&D, Sales & Marketing, and G&A[20](index=20&type=chunk) [Disaggregation of Revenue](index=6&type=section&id=Disaggregation%20of%20Revenue) Revenue disaggregation details sources from customer contracts, interest income, and regional markets Revenue by Source (Unaudited) | (U.S. dollars in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Revenue from contracts with customers | $186,263 | $160,458 | | Interest income on customer balances | $57,972 | $65,268 | | **Total revenues** | **$246,617** | **$228,183** | Revenue by Primary Regional Market (Unaudited) | (U.S. dollars in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Greater China | $84,896 | $81,358 | | Europe, Middle East, and Africa | $58,893 | $59,163 | | Asia-Pacific | $51,260 | $41,582 | | Latin America | $27,873 | $23,070 | | North America | $23,695 | $23,010 | | **Total revenues** | **$246,617** | **$228,183** | - The Asia-Pacific region showed the strongest YoY revenue growth at **23.3%**, followed by Latin America at **20.8%**[23](index=23&type=chunk) [Reconciliation of Net Income to Adjusted EBITDA](index=7&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) This section reconciles net income to Adjusted EBITDA, detailing various non-GAAP adjustments Reconciliation of Net Income to Adjusted EBITDA (Unaudited) | (U.S. dollars in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | **Net income** | **$20,577** | **$28,974** | | Depreciation and amortization | $14,390 | $9,408 | | Income taxes | $7,192 | $13,910 | | Other financial expense (income), net | $1,550 | $(2,747) | | Stock based compensation expenses | $18,755 | $15,077 | | M&A related expenses | $337 | $2,375 | | Restructuring charges | $2,630 | — | | **Adjusted EBITDA** | **$65,431** | **$65,236** | - Adjusted EBITDA remained flat YoY at approximately **$65.4 million**. Key adjustments from net income included stock-based compensation (**$18.8 million**), depreciation & amortization (**$14.4 million**), and income taxes (**$7.2 million**). A new restructuring charge of **$2.6 million** was recorded in Q1 2025[26](index=26&type=chunk) [Earnings Per Share](index=8&type=section&id=Earnings%20Per%20Share) Earnings per share for Q1 2025 show a decrease in both basic and diluted EPS YoY Earnings Per Share (Unaudited) | | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Basic EPS | $0.06 | $0.08 | | Diluted EPS | $0.05 | $0.08 | - Diluted earnings per share decreased to **$0.05** in Q1 2025 from **$0.08** in Q1 2024[28](index=28&type=chunk) [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet highlights total assets, customer funds, and shareholders' equity as of March 31, 2025 Consolidated Balance Sheet Highlights (Unaudited) | (U.S. dollars in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $524,150 | $497,467 | | Customer funds | $6,578,390 | $6,964,153 | | **Total assets** | **$7,550,162** | **$7,930,380** | | Outstanding operating balances | $6,578,390 | $6,964,153 | | **Total liabilities** | **$6,799,431** | **$7,205,590** | | **Total shareholders' equity** | **$750,731** | **$724,790** | - Total assets decreased from **$7.93 billion** at year-end 2024 to **$7.55 billion** at the end of Q1 2025, primarily due to a decrease in customer funds and outstanding operating balances[30](index=30&type=chunk) - Shareholders' equity increased to **$750.7 million** from **$724.8 million** at the end of 2024, driven by net income and other comprehensive income, partially offset by share repurchases[30](index=30&type=chunk) [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash flow statements detail operating, investing, and financing activities for the first quarter of 2025 Consolidated Cash Flow Highlights (Unaudited) | (U.S. dollars in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $53,716 | $39,510 | | Net cash used in investing activities | $(47,986) | $(114,147) | | Net cash used in financing activities | $(402,446) | $(521,113) | - Cash flow from operating activities was a net inflow of **$53.7 million**, an improvement from **$39.5 million** in the prior year period[32](index=32&type=chunk) - Net cash used in financing activities was **$402.4 million**, primarily driven by a **$385.8 million** decrease in outstanding operating balances and **$17.8 million** in common stock repurchases[32](index=32&type=chunk) [Other Information](index=2&type=section&id=Other%20Information) This section provides corporate information, forward-looking statements, and non-GAAP financial measure definitions [About Payoneer](index=2&type=section&id=About%20Payoneer) Payoneer's mission is to empower global entrepreneurs and businesses in the digital economy - Payoneer's mission is to enable entrepreneurs and businesses anywhere to participate and succeed in the digital global economy by simplifying cross-border commerce[11](index=11&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section outlines the risks and uncertainties associated with forward-looking statements in the report - The report contains forward-looking statements subject to risks and uncertainties, including geopolitical events, changes in laws or regulations, and shifts in global trade policies[13](index=13&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and explains the use of non-GAAP financial measures like Adjusted EBITDA - The company uses non-GAAP measures like Adjusted EBITDA for performance comparison. These measures are not prepared in accordance with GAAP and may not be comparable to those of other companies[14](index=14&type=chunk) - Adjusted EBITDA is defined as net income adjusted to exclude items such as M&A expenses, stock-based compensation, restructuring charges, certain financial income/expenses, taxes, and depreciation & amortization[15](index=15&type=chunk)

Core Viewpoint - Payoneer (NASDAQ: PAYO) has established a strong competitive advantage through its global payment infrastructure, which smaller players will find difficult to replicate, indicating a positive outlook for the company as long as it maintains effective execution [1]. Company Analysis - Payoneer is viewed as a company with long-term growth potential, supported by a solid foundation in fundamental analysis and a focus on identifying undervalued companies [1]. - The investment strategy emphasizes acquiring quality companies at a discount to their intrinsic value and holding them for long-term earnings and shareholder return compounding [1].

Core Viewpoint - Payoneer Global Inc. (PAYO) experienced an 11.7% increase in share price, closing at $6.59, following a significant trading volume and a recent acquisition [1][2]. Company Developments - The recent rise in Payoneer's share price is linked to the Trump administration's announcement of a 90-day halt on reciprocal tariffs for most countries [2]. - Payoneer completed the acquisition of Easylink Payment Co., Ltd., a licensed payment service provider in China, which is expected to enhance its global regulatory framework and improve service offerings in China [2]. Financial Performance Expectations - Payoneer is projected to report quarterly earnings of $0.07 per share, reflecting a year-over-year decline of 12.5%, with revenues expected to reach $242.49 million, an increase of 6.3% from the previous year [3]. - The consensus EPS estimate for Payoneer has been revised down by 3.3% over the last 30 days, indicating a negative trend in earnings estimate revisions [5]. Industry Context - Payoneer operates within the Zacks Financial Transaction Services industry, which includes other companies like Green Dot (GDOT) [5]. - Green Dot's consensus EPS estimate remains unchanged at $0.70, representing an 18.6% increase compared to the previous year, while it closed the last trading session at $7.72, up 15.2% [6].