Core Insights - Payoneer Global Inc. reported quarterly earnings of $0.05 per share, missing the Zacks Consensus Estimate of $0.07 per share, representing an earnings surprise of -28.57% [1] - The company posted revenues of $261.74 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 8.24% and showing an increase from $224.32 million year-over-year [2] - Payoneer Global has outperformed the market with a 1.4% increase in shares since the beginning of the year, compared to the S&P 500's gain of 1.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.06 on revenues of $241.92 million, and for the current fiscal year, it is $0.37 on revenues of $1.02 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 [6] Industry Context - The Financial Transaction Services industry, to which Payoneer Global belongs, is currently in the top 31% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, Ryvyl, is expected to report a quarterly loss of $0.29 per share, with revenues projected to decline by 32.8% year-over-year [9]

Financial Performance - Payoneer achieved a record annual volume of $80 billion, reflecting a 21% year-over-year growth[6]. - Revenue for 2024 reached $977.7 million, representing an 18% increase compared to 2023[2]. - Net income for Q4 2024 was $18.2 million, a decrease of 33% year-over-year, while full-year net income increased by 30% to $121.2 million[2][5]. - Adjusted EBITDA for 2024 was $270.6 million, up 32% from the previous year[2]. - Revenues for Q4 2024 reached $261.739 million, a 16.7% increase from $224.320 million in Q4 2023[21]. - Total revenues for the year 2024 were $977.716 million, up 17.6% from $831.103 million in 2023[21]. - Operating income for Q4 2024 was $29.184 million, compared to $25.706 million in Q4 2023, reflecting a 9.7% increase[21]. - Adjusted EBITDA for Q4 2024 was $63.271 million, an increase of 21.5% from $52.245 million in Q4 2023[27]. - Revenue recognized from contracts with customers for Q4 2024 was $198.233 million, a 26.4% increase from $156.774 million in Q4 2023[22]. - Interest income on customer balances for Q4 2024 was $60.595 million, a decrease of 6.5% from $64.867 million in Q4 2023[22]. - Greater China contributed $89.938 million in revenue for Q4 2024, up 12.5% from $80.244 million in Q4 2023[24]. Customer and Market Growth - The company reported a 42% year-over-year growth in B2B volume, reaching $3.0 billion[6][12]. - Active Ideal Customer Profiles (ICPs) grew by 8% year-over-year, totaling 560,000[6]. Future Projections - Payoneer plans to achieve revenue guidance of $1,040 million to $1,050 million for 2025[11]. Expenses and Liabilities - The company reported total operating expenses of $232.555 million for Q4 2024, compared to $198.614 million in Q4 2023, representing a 17.1% increase[21]. - Total current liabilities rose to $7.13 billion in 2024, up from $6.54 billion in 2023, indicating an increase of 9.0%[33]. Assets and Cash Flow - Total assets increased to $7.93 billion in 2024 from $7.28 billion in 2023, reflecting a growth of 8.9%[33]. - Cash and cash equivalents decreased to $497.47 million in 2024 from $617.02 million in 2023, a decline of 19.4%[33]. - Net cash provided by operating activities for 2024 was $176.93 million, compared to $159.49 million in 2023, representing a growth of 10.9%[35]. - Net cash used in investing activities significantly increased to $1.96 billion in 2024 from $44.25 million in 2023[35]. Shareholder Information - The weighted average common shares outstanding for diluted earnings per share was 385,074,151 for Q4 2024, compared to 379,881,231 for Q4 2023[21]. - Basic earnings per share for Q4 2024 was $0.05, down from $0.08 in Q4 2023, while diluted earnings per share decreased from $0.07 to $0.05[31]. - Total shareholders' equity increased to $724.79 million in 2024 from $664.27 million in 2023, a rise of 9.1%[33]. Tax and Other Financial Activities - Cash paid for taxes in 2024 was $52.32 million, compared to $40.91 million in 2023, reflecting a 28.0% increase[35]. - The company reported a loss on Warrant repurchase/redemption of $19.83 million in 2024, with no such loss reported in 2023[35]. Strategic Initiatives - The company implemented strategies to reduce sensitivity to interest rate fluctuations, with $1.8 billion of customer funds invested in US treasury securities[12]. - Payoneer acquired Skuad, enhancing its financial stack for SMBs operating internationally[12]. - The company reported a record $1.5 billion in spend on Payoneer cards, a 36% increase year-over-year[12].

Core Viewpoint - Payoneer (PAYO) is set to report its fourth-quarter 2024 results on February 27, with expectations of revenue growth and improved earnings per share compared to the previous year [1][5]. Revenue Expectations - The Zacks Consensus Estimate for Payoneer's Q4 2024 revenues is $241.8 million, reflecting a 7.8% year-over-year increase, driven by growth in B2B, International Commercial Partners (ICP), and marketplace segments [3]. - Revenue growth is also anticipated from the adoption of card products, pricing initiatives, and high-interest income due to increased customer funds on the platform [4]. Earnings Projections - The consensus estimate for Payoneer's earnings in Q4 2024 is 7 cents per share, indicating a 40% year-over-year rise, supported by robust top-line growth, strong margins, and disciplined expense management [5]. - However, the current Earnings ESP for Payoneer is -31.49%, and it holds a Zacks Rank of 3 (Hold), suggesting uncertainty regarding an earnings beat this quarter [6][7].

Company Overview - Payoneer Global Inc. (PAYO) is expected to report a year-over-year increase in earnings, with a projected EPS of $0.07, reflecting a +40% change, and revenues anticipated at $241.82 million, up 7.8% from the previous year [3][12]. Earnings Expectations - The upcoming earnings report is scheduled for February 27, and the stock may rise if actual results exceed expectations, while a miss could lead to a decline [2][12]. - The consensus EPS estimate has been revised 1.95% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Payoneer is lower than the consensus estimate, resulting in an Earnings ESP of -31.49%, suggesting a bearish outlook [10][11]. - Despite the negative Earnings ESP, the stock holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [11]. Historical Performance - In the last reported quarter, Payoneer exceeded the expected EPS of $0.04 by delivering $0.11, resulting in a surprise of +175% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Industry Comparison - Global Blue Group Holding AG (GB), another player in the financial transaction services industry, is expected to report an EPS of $0.09, reflecting a +125% year-over-year change, with revenues projected at $133.59 million, up 13.4% [17]. - The consensus EPS estimate for Global Blue has been revised down by 20% in the last 30 days, and it currently has an Earnings ESP of 0.00%, indicating uncertainty in beating the consensus [18].

Core Viewpoint - The Zacks rating system provides a more balanced approach to stock ratings, maintaining an equal proportion of 'buy' and 'sell' ratings, with only the top 20% of stocks receiving favorable ratings, indicating strong earnings estimate revisions and potential for market-beating returns [1][2]. Company Summary - Payoneer Global Inc. (PAYO) has been upgraded to a Zacks Rank 1 (Strong Buy), reflecting an upward trend in earnings estimates, which is a significant factor influencing stock prices [4][5]. - The recent rating upgrade for Payoneer Global suggests a positive outlook on its earnings, likely leading to an increase in its stock price [5][6]. - Over the past three months, analysts have raised their earnings estimates for Payoneer Global, with the Zacks Consensus Estimate increasing by 41.4% [8]. - The company is projected to earn $0.35 per share for the fiscal year ending December 2024, representing a year-over-year change of 45.8% [13]. - The upgrade positions Payoneer Global in the top 5% of Zacks-covered stocks based on estimate revisions, indicating potential for near-term stock price appreciation [18]. Industry Insights - The Zacks Rank stock-rating system, which categorizes stocks based on earnings estimate revisions, has shown a strong track record, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988 [7]. - The correlation between earnings estimate revisions and stock price movements is well-established, making the Zacks rating system a valuable tool for investors [10][12]. - Institutional investors often rely on earnings estimates to determine a stock's fair value, influencing their buying and selling decisions, which in turn affects stock prices [11].

Core Viewpoint - Investors in Payoneer Global Inc. (PAYO) should closely monitor the stock due to significant movements in the options market, particularly the high implied volatility of the Jan. 17, 2025 $5 Put option [1] Company Analysis - Payoneer Global is currently rated as a Zacks Rank 2 (Buy) within the Technology Services industry, which is in the top 27% of the Zacks Industry Rank [3] - Over the past 60 days, three analysts have raised their earnings estimates for the current quarter, resulting in an increase of the Zacks Consensus Estimate from 4 cents per share to 8 cents per share [3] Options Market Insights - The high implied volatility surrounding Payoneer Global shares indicates that options traders are anticipating a significant price movement, which could suggest an upcoming event that may lead to a substantial rally or sell-off [2][4] - Seasoned options traders often seek out options with high implied volatility to sell premium, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as expected by expiration [4]

Core Viewpoint - Payoneer Global Inc. (PAYO) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks rating system is based on the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years [2]. - Payoneer Global is projected to earn $0.32 per share for the fiscal year ending December 2024, representing a year-over-year increase of 33.3% [9]. - Over the past three months, the Zacks Consensus Estimate for Payoneer Global has risen by 30.3%, indicating a positive trend in earnings estimates [9]. Impact of Institutional Investors - Changes in a company's future earnings potential, as shown through earnings estimate revisions, are strongly correlated with near-term stock price movements, largely due to institutional investors adjusting their valuations based on these estimates [5]. - Institutional investors typically react to changes in earnings estimates, leading to significant price movements in the stock [5]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of Payoneer Global to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [11].

Company Overview - Payoneer Global Inc. (PAYO) currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 1 (Strong Buy), which is associated with a high likelihood of outperforming the market [3] Price Performance - Over the past week, PAYO shares increased by 1.2%, while the Zacks Technology Services industry declined by 0.51% [5] - In the last month, PAYO's price change was 36.05%, significantly outperforming the industry's 1.76% [5] - Over the past quarter, PAYO shares rose by 52.57%, and over the last year, they increased by 101.89%, compared to the S&P 500's gains of 15.2% and 38.09%, respectively [6] Trading Volume - PAYO's average 20-day trading volume is 3,134,674 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, three earnings estimates for PAYO have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $0.25 to $0.32 [9] - For the next fiscal year, two estimates have also moved upwards with no downward revisions [9]

Core Insights - Payoneer Global Inc. (PAYO) shows potential as a strong investment due to a significant revision in earnings estimates, indicating an improving earnings outlook [1][7] - Analysts are increasingly optimistic about the company's earnings prospects, which is expected to positively influence its stock price [2] - The Zacks Rank system, which rates stocks from 1 (Strong Buy) to 5 (Strong Sell), has a proven track record, with Zacks 1 stocks averaging a +25% annual return since 2008 [3] Current-Quarter Estimate Revisions - For the current quarter, Payoneer is projected to earn $0.04 per share, reflecting a year-over-year decline of -20% [4] - In the last 30 days, one estimate has been revised upward, with no negative revisions, leading to an 8.33% increase in the Zacks Consensus Estimate [4] Current-Year Estimate Revisions - The expected earnings for the full year are $0.29 per share, representing a +20.83% change from the previous year [5] - Over the past month, two estimates have been revised upward, with no negative revisions, resulting in a 16.16% increase in the consensus estimate [5] Favorable Zacks Rank - The positive estimate revisions have earned Payoneer a Zacks Rank 1 (Strong Buy), indicating strong potential for outperformance [6] - Research indicates that stocks with Zacks Rank 1 and 2 significantly outperform the S&P 500 [6] Bottom Line - Payoneer Global's strong estimate revisions have led to a 33.7% increase in stock price over the past four weeks, suggesting further upside potential [7]

[Payoneer Q3 2024 Financial Results](index=1&type=section&id=Payoneer%20Reports%20Third%20Quarter%202024%20Financial%20Results) [Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) Payoneer achieved record revenue and volume, with significant growth in net income and its high-value customer base Q3 2024 Key Financial & Operational Metrics | ($ in mm) | 3Q 2023 | 3Q 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $208.0 | $248.3 | 19% | | Revenue ex. interest income | $147.6 | $183.1 | 24% | | Net income | $12.8 | $41.6 | 224% | | Adjusted EBITDA | $58.2 | $69.3 | 19% | | Volume ($bn) | $16.3 | $20.4 | 25% | | Active Ideal Customer Profiles ('000s) | 502 | 557 | 11% | - The company has achieved **four consecutive quarters of accelerating growth** in Ideal Customer Profiles (ICPs) and five consecutive quarters of accelerating ARPU excluding interest income, which grew **20%**[3](index=3&type=chunk) [Third Quarter 2024 Business Highlights](index=1&type=section&id=Third%20Quarter%202024%20Business%20Highlights) The company saw strong, broad-based volume growth across key segments, especially in B2B and Merchant Services - B2B volume increased **57% year-over-year to $2.8 billion**, driven by strong customer acquisition and larger transaction sizes[4](index=4&type=chunk) - Merchant Services (Checkout) volume grew **142% year-over-year to $153 million**[4](index=4&type=chunk) - Volume from SMBs selling on marketplaces rose **17% YoY to $12 billion**, while Enterprise payouts volume increased **29% YoY to $5.5 billion**[4](index=4&type=chunk) - Spend on Payoneer cards increased by **41% year-over-year to $1.4 billion**, indicating higher adoption for global accounts payable[4](index=4&type=chunk) - Total customer funds held on the platform grew **13% year-over-year to $6.1 billion** as of September 30, 2024[4](index=4&type=chunk) [2024 Guidance](index=2&type=section&id=2024%20Guidance) Payoneer raised its full-year 2024 guidance for revenue and adjusted EBITDA following strong Q3 performance [Updated Full-Year 2024 Outlook](index=2&type=section&id=Updated%20Full-Year%202024%20Outlook) The company increased its 2024 revenue forecast to $950-$960 million and adjusted EBITDA to $255-$265 million 2024 Full-Year Guidance | Metric | Guidance | | :--- | :--- | | Revenue | $950 million - $960 million | | Transaction costs | ~16.0% of revenue | | Adjusted EBITDA | $255 million to $265 million | - The guidance increase reflects **strong Q3 performance** and higher expectations for both growth and profitability in the final quarter of the year[5](index=5&type=chunk) [Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Consolidated%20Financial%20Statements%20%28Unaudited%29) [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Third-quarter revenue grew to $248.3 million, and net income surged to $41.6 million, driven by revenue growth and a tax benefit Q3 2024 vs Q3 2023 Income Statement Highlights (in thousands) | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Revenues | $248,274 | $208,035 | | Operating income | $35,162 | $29,499 | | Net income | $41,574 | $12,825 | | Diluted earnings per share | $0.11 | $0.03 | - The company recorded a **tax benefit of $19.5 million** in Q3 2024, compared to a tax expense of $10.0 million in Q3 2023, significantly contributing to the net income growth[15](index=15&type=chunk) - A **loss of $14.7 million** was recognized on the repurchase and redemption of warrants during Q3 2024[15](index=15&type=chunk) [Disaggregation of Revenue](index=7&type=section&id=Disaggregation%20of%20Revenue) Revenue growth was geographically diverse, with Greater China as the largest market and significant income from customer balances Revenue by Primary Regional Market (in thousands) | Region | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Greater China | $85,111 | $72,513 | | Europe | $48,666 | $42,378 | | Asia-Pacific | $37,770 | $29,145 | | North America | $25,162 | $22,358 | | South Asia, Middle East and North Africa | $26,809 | $22,181 | | Latin America | $24,756 | $19,460 | | **Total revenues** | **$248,274** | **$208,035** | Revenue by Source (in thousands) | Source | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Revenue from contracts with customers | $180,360 | $145,202 | | Interest income on customer balances | $65,162 | $60,416 | | Other sources | $2,752 | $2,417 | | **Total revenues** | **$248,274** | **$208,035** | [Consolidated Balance Sheets](index=10&type=section&id=Consolidated%20Balance%20Sheets) Total assets stood at $7.05 billion, with shareholders' equity increasing to $727.9 million as of September 30, 2024 Key Balance Sheet Items (in thousands) | Metric | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $534,170 | $617,022 | | Customer funds (Assets) | $6,085,767 | $6,390,526 | | Total assets | $7,051,174 | $7,283,119 | | Outstanding operating balances (Liabilities) | $6,085,767 | $6,390,526 | | Total liabilities | $6,323,300 | $6,618,846 | | Total shareholders' equity | $727,874 | $664,273 | [Consolidated Statement of Cash Flows](index=11&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) Net cash from operations was $131.0 million, while investing and financing activities resulted in significant cash outflows Cash Flow Summary - Nine Months Ended Sep 30 (in thousands) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $131,039 | $101,328 | | Net cash used in investing activities | ($1,814,106) | ($47,754) | | Net cash used in financing activities | ($436,932) | ($492,732) | [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) [Reconciliation of Net Income to Adjusted EBITDA](index=8&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) Adjusted EBITDA increased to $69.3 million, with adjustments for a tax benefit, stock compensation, and warrant-related losses Reconciliation of Net Income to Adjusted EBITDA (in thousands) | | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | **Net income** | **$41,574** | **$12,825** | | Depreciation and amortization | $13,510 | $7,116 | | Tax (benefit) expense on income | ($19,484) | $10,012 | | Stock based compensation expenses | $17,430 | $15,330 | | Loss on Warrant repurchase/redemption | $14,746 | — | | Restructuring charges | — | $4,488 | | **Adjusted EBITDA** | **$69,268** | **$58,178** | [Capital Allocation](index=1&type=section&id=Capital%20Allocation) [Share and Warrant Repurchase](index=1&type=section&id=Share%20and%20Warrant%20Repurchase) The company returned capital via $21 million in share repurchases and a $21 million redemption of all public warrants - The company conducted **$21 million of share repurchases** at a weighted average price of $5.67 per share during the third quarter[4](index=4&type=chunk) - Completed the repurchase and redemption of all **25 million outstanding public warrants for a total of $21 million**[5](index=5&type=chunk) [Company Information and Disclosures](index=3&type=section&id=Company%20Information%20and%20Disclosures) [About Payoneer](index=3&type=section&id=About%20Payoneer) Payoneer is a financial technology company empowering global SMBs to transact and grow in the international digital economy - Payoneer's mission is to enable entrepreneurs and businesses anywhere to participate and succeed in the global digital economy[8](index=8&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements subject to risks and uncertainties detailed in the company's SEC filings - Projections of future revenue, transaction cost, and adjusted EBITDA are considered **forward-looking statements**[9](index=9&type=chunk) - Actual results may differ materially due to risks including **geopolitical events**, changes in laws, and other factors outlined in the company's Form 10-K[9](index=9&type=chunk)