NEW YORK--(BUSINESS WIRE)--Payoneer (NASDAQ: PAYO), the financial technology company empowering the world’s small and medium-sized businesses (SMBs) to transact, do business and grow globally, will report its Fourth Quarter and Full Year 2023 financial results on Wednesday, February 28, 2024, before the market open. Senior management will also host a conference call and earnings webcast to discuss financial results at 8:30 a.m. Eastern Time the same day. A live webcast and replay of the event will be availa ...

VioletaStoimenovaFounded in 2005, Payoneer Global (NASDAQ:PAYO) is a global payment provider focusing on helping digital SMBs in emerging markets engage in international transactions. PAYO has been underperforming since going public in 2021, with a price return of -51.6%. It reached an all-time high of $10.75 per share the same year. Since then, it has gradually declined to reach $4.8 per share today. I initiate my coverage with a buy rating and a 1-year price target of $6.44, a potential upside of over ...

3Q 2023 Earnings Supplement Nasdaq: PAYO 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. 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 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . (212) 600-9272 Registrant's Telephone Number, Including Area Code N/A (Former name or former address, if changed since last report) Payoneer G ...

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. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "expect," "intend," "will," "plan," "estimate," "anticipate," "believe," "predict," ...

Financial Data and Key Metrics - Q2 revenue increased 40% YoY to $207 million, driven by higher margin products, improved monetization, and growth in key B2B regions [9] - Adjusted EBITDA of $56 million, nearly quadrupled YoY, representing a 27% adjusted EBITDA margin [4] - Q2 take rate was 131 basis points, up 30 basis points YoY and 9 basis points sequentially [14] - Customer funds held by Payoneer increased 8% YoY to $5.5 billion, with $55 million in interest income earned from these balances [16] - Q2 net income was $46 million, compared to $4 million in Q2 2022, with basic and diluted EPS of $0.12 [19] Business Line Performance - B2B payments volume declined 2% YoY, but grew 12% YoY excluding proactive customer terminations made last year [5] - Strong traction in B2B business in service-oriented markets like APAC, SAMEA, and Latin America [5] - Total active ICPs grew 6% YoY, with 13% growth in APAC, SAMEA, and Latin America [6] - Largest ICPs (those with >$10,000 monthly volume) grew 18%, contributing over 50% of total revenues [6] - Originations from first-time users increased 80% in Q2 [11] Market Performance - APAC, SAMEA, and Latin America saw 29% YoY volume growth, with Europe showing stable growth despite Ukraine war impacts [31] - China remains a significant market, with over 50% YoY revenue growth in Q2, driven by customer growth and ARPU increases [121] - New verticals in Europe, such as agricultural exporters, represent $30 billion in potential annual volume [10] Strategic Direction and Industry Competition - Focus on acquiring ICPs, improving ARPU, and expanding product offerings like commercial cards and checkout services [7][48] - Investments in platform transformation, including cloud-based infrastructure and new onboarding functionality [11] - Strategic acquisitions, such as a China-based payment service provider and an Israeli data platform, to enhance underwriting and risk management [61][103] - Emphasis on operating efficiency and cost discipline, with headcount reductions and streamlined operations [21][102] Management Commentary on Operating Environment and Future Outlook - Management expects interest income to remain a meaningful contributor to core revenue in the coming years [15] - Guidance for 2023 adjusted EBITDA raised to $160-$170 million, reflecting a 20% margin [26] - Anticipated 10% core revenue growth in the back half of 2023, driven by B2B acceleration and new verticals [47][162] - Long-term focus on ICP growth, ARPU expansion, and leveraging technology for operational efficiency [87] Other Important Information - Payoneer repurchased $20 million of shares at a weighted average cost of $4.68 per share [20] - The company expects to use 25% of interest income for platform investments and stock repurchases [17] - New product features, such as real-time fund availability and enhanced commercial card functionality, aim to improve customer experience and drive growth [7] Q&A Session Summary Question: What drives the confidence in continued ICP growth in H2 2023? - Answer: Strong product offerings, focused go-to-market efforts, and exceptional partnerships globally enable continued ICP growth [68][69] Question: How are B2B headwinds in North America and Europe expected to evolve? - Answer: Outside of China, strong YoY volume growth is seen, with Ukraine showing resilience despite challenges [70] Question: What is the outlook for interest income and its sustainability? - Answer: Interest income is expected to remain a meaningful driver of revenue, with medium-term interest rates projected at 2%-3% [49][156] Question: What are the expectations for M&A activity? - Answer: The company continues to evaluate M&A opportunities, particularly in product extensions and regional footprint expansion [50] Question: How is Payoneer managing operating efficiency and cost discipline? - Answer: Recent headcount reductions and streamlined operations are driving greater efficiency, with a focus on high-growth areas [21][102]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR Registrant's Telephone Number, Including Area Code N/A ☐ 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. (Exact name of registrant as specified in its charter) Delaware 001-405 ...

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by $28 million year-over-year to $39 million, representing a 20% adjusted EBITDA margin [5] - Q1 volume increased by 8% year-over-year to $15.7 billion, driven by a recovery in travel and mid single-digit growth from large e-commerce marketplaces [14] - Customer funds held by Payoneer increased by $837 million, or 18% year-over-year, to $5.5 billion [15] - Q1 net income was $8 million compared to $20 million in the first quarter of last year, which included a gain of over $30 million from the change in fair value of warrants [17] Business Line Data and Key Metrics Changes - B2B AP/AR volumes increased by 23% year-over-year on an apples-to-apples basis, while overall B2B volumes increased by 2% year-over-year [31] - The penetration of the virtual commercial card increased by over 50% and more than doubled year-over-year [9] - The take rate for Q1 was 122 basis points, up from 94 basis points in the prior year period [39] Market Data and Key Metrics Changes - Payoneer experienced over 25% year-over-year revenue growth in each of its six regions, with over 70% growth in Latin America [5] - Key countries such as Vietnam, Argentina, Mexico, Colombia, and UAE saw over 50% year-over-year growth [5] - The company is focusing on emerging markets, particularly in Latin America, CEMEA, and APAC, which are expected to drive future growth [50][74] Company Strategy and Development Direction - The company aims to deliver strong and sustainable revenue growth, focusing on Ideal Customer Profiles (ICPs) and building a next-generation technology platform [28] - Payoneer is actively evaluating product-driven M&A opportunities to enhance its growth strategy and expand its market presence [10][18] - The company is incorporating AI in its onboarding processes to increase efficiency and reduce customer acquisition costs [7] Management's Comments on Operating Environment and Future Outlook - Management noted that while volume growth is below expectations, there is strong customer acquisition momentum [8] - The company anticipates interest rates will begin to decrease in the latter half of the year, which may impact revenue [20] - Management expressed confidence in meeting updated 2023 financial targets despite macroeconomic headwinds [21] Other Important Information - The company has paused hiring plans across the organization to generate savings in 2023 [61] - Payoneer will host its first Investor Day on September 21, 2023, in New York City [62] Q&A Session Summary Question: What are your thoughts on the ability to grow the ICP base during different macro environments? - Management indicated that they are focused on acquiring and serving customers who meet the ICP criteria, with early momentum observed [46][64] Question: Can you provide insights on ARPU opportunities and pricing strategies? - Management is experimenting with pricing strategies, including account fees, and noted that B2B business monetizes at 50% greater than marketplace payouts [48][99] Question: How do you see the geographic mix evolving with the focus on ICPs? - Management expects to see a shift in geographic mix as they penetrate high-growth markets, particularly in Latin America and APAC [49][70] Question: What is the impact of the recent banking turmoil on customer behavior? - Management reported no significant changes in customer behavior despite the banking turmoil, indicating strong trust in Payoneer [85][101] Question: What types of businesses are being considered for M&A? - Management is evaluating M&A opportunities focused on product extensions, regional footprint expansion, and enhancing existing licensing frameworks [128]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents Payoneer Global Inc.'s unaudited Q1 2023 financial statements, including balance sheets, income, and cash flow statements with notes [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20consolidated%20balance%20sheets%20(Unaudited)) Total assets and liabilities decreased by March 31, 2023, mainly due to customer funds, while shareholders' equity increased | Balance Sheet Item | March 31, 2023 ($ thousands) | December 31, 2022 ($ thousands) | | :--- | :--- | :--- | | **Total Assets** | **$6,237,718** | **$6,594,651** | | Cash and cash equivalents | $544,542 | $543,299 | | Customer funds | $5,467,274 | $5,838,612 | | **Total Liabilities** | **$5,660,872** | **$6,049,395** | | Outstanding operating balances | $5,467,274 | $5,838,612 | | **Total Shareholders' Equity** | **$576,846** | **$545,256** | [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20consolidated%20statements%20of%20comprehensive%20income%20(Unaudited)) Revenues significantly increased for Q1 2023, resulting in operating income, a turnaround from a prior-year loss, though net income decreased | Income Statement Item | Q1 2023 ($ thousands) | Q1 2022 ($ thousands) | YoY Change | | :--- | :--- | :--- | :--- | | **Revenues** | **$192,014** | **$136,958** | **+40%** | | Total operating expenses | $177,002 | $143,301 | +24% | | **Operating income (loss)** | **$15,012** | **($6,343)** | **N/A** | | Financial income, net | $2,098 | $28,501 | -93% | | **Net income** | **$7,938** | **$20,211** | **-61%** | | Diluted earnings per share | $0.02 | $0.06 | -67% | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20consolidated%20statements%20of%20cash%20flows%20(Unaudited)) Net cash provided by operating activities in Q1 2023 was positive, while both investing and financing activities used significant cash | Cash Flow Activity | Q1 2023 ($ thousands) | Q1 2022 ($ thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $3,902 | $2,372 | | Net cash provided by (used in) investing activities | ($57,004) | $27,953 | | Net cash provided by (used in) financing activities | ($364,490) | $233,611 | | **Net change in cash, cash equivalents, restricted cash and customer funds** | **($417,077)** | **$263,858** | [Notes to the Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20condensed%20consolidated%20financial%20statements%20(Unaudited)) Notes provide detailed explanations of accounting policies and financial results, covering acquisitions, capital advances, revenue disaggregation, and a stock repurchase program - In January 2023, the Company acquired all remaining interests in its joint venture in the People's Republic of China, accounting for it as an asset acquisition[35](index=35&type=chunk) | Revenue by Region | Q1 2023 ($ thousands) | Q1 2022 ($ thousands) | YoY Growth | | :--- | :--- | :--- | :--- | | Greater China | $63,960 | $43,041 | 49% | | Europe | $38,621 | $28,461 | 36% | | North America | $25,536 | $20,276 | 26% | | Asia-Pacific | $25,381 | $19,019 | 33% | | South Asia, Middle East and North Africa | $19,945 | $15,412 | 29% | | Latin America | $18,571 | $10,749 | 73% | | **Total Revenues** | **$192,014** | **$136,958** | **40%** | - On May 7, 2023, the Board of Directors authorized a stock repurchase program for up to **$80 million** of common stock over 24 months[97](index=97&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2023 financial results, highlighting significant revenue growth driven by interest income, leading to improved operating income and Adjusted EBITDA [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Q1 2023 revenues significantly increased, primarily from interest income, leading to operating income despite rising expenses, though net income decreased - Revenues increased by $55.1 million (**40%**) YoY, primarily driven by a **$49.2 million** increase in interest income from higher customer balances and rising interest rates[115](index=115&type=chunk) - Sales and marketing expenses increased by **$13.4 million** (39%) due to higher employee compensation, third-party commissions, and marketing program spending[120](index=120&type=chunk) - General and administrative expenses rose by **$8.6 million** (47%), mainly from increased employee compensation and legal services costs[121](index=121&type=chunk) [Liquidity and Capital Resources](index=23&type=section&id=Liquidity%20and%20Capital%20Resources) The company held substantial cash as of March 31, 2023, with liquidity from operations and a Warehouse Facility, deemed sufficient for future needs - The company had **$544.5 million** of cash and cash equivalents as of March 31, 2023[126](index=126&type=chunk) - The company utilizes a Warehouse Facility to provide external financing for its capital advance activity, with an initial committed amount of **$25 million** that can be increased up to **$100 million**[127](index=127&type=chunk)[128](index=128&type=chunk) | Cash Flow Summary | Q1 2023 ($ thousands) | Q1 2022 ($ thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $3,902 | $2,372 | | Net cash provided by (used in) investing activities | ($57,004) | $27,953 | | Net cash provided by (used in) financing activities | ($364,490) | $233,611 | [Key Metrics and Non-GAAP Financial Measures](index=25&type=section&id=Key%20Metrics%20and%20Non-GAAP%20Financial%20Measures) Management uses Volume and Adjusted EBITDA to evaluate performance, with Q1 2023 showing transaction volume growth and a significant increase in Adjusted EBITDA | Metric | Q1 2023 | Q1 2022 | YoY Growth | | :--- | :--- | :--- | :--- | | Volume | $15,735 million | $14,620 million | 8% | | Reconciliation to Adjusted EBITDA | Q1 2023 ($ thousands) | Q1 2022 ($ thousands) | | :--- | :--- | :--- | | Net income | $7,938 | $20,211 | | Adjustments (Depreciation, Taxes, etc.) | $12,861 | $29,328 | | EBITDA | $20,799 | $29,328 | | Other Adjustments (Stock comp, M&A, etc.) | $17,953 | ($18,927) | | **Adjusted EBITDA** | **$38,752** | **$10,401** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=26&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rate changes and foreign currency fluctuations, with hypothetical shifts materially impacting revenues and earnings due to large balances - The company is exposed to interest rate sensitivity, where a hypothetical **1%** change in rates could materially affect revenues and earnings due to its holdings of cash, cash equivalents, and customer funds[156](index=156&type=chunk) - Payoneer faces foreign currency risk from its global operations and customer funds held in various currencies. A hypothetical **10%** change in exchange rates could materially impact financial results[158](index=158&type=chunk) [Item 4. Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2023, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of March 31, 2023, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[161](index=161&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[162](index=162&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) The company is periodically involved in various litigation matters incidental to its normal business operations, with further details in Note 11 - The company is party to various litigation matters incidental to the conduct of its business. More details are available in Note 11 (Commitment and Contingencies)[165](index=165&type=chunk) [Item 1A. Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred to the risk factors previously disclosed in the company's Annual Report on Form 10-K filed on February 28, 2023 - As of the filing date of this Form 10-Q, there have been no material changes to the risk factors disclosed in the company's Annual Report on Form 10-K filed on February 28, 2023[167](index=167&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company issued common stock to a senior employee for the 2020 optile acquisition, exempt from registration under Section 4(a)(2) of the Securities Act - A total of **59,257** shares of common stock were issued during the quarter pursuant to an employment agreement related to the 2020 optile acquisition, exempt from registration under Section 4(a)(2) of the Securities Act[168](index=168&type=chunk) [Item 3. Defaults upon Senior Securities](index=28&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[169](index=169&type=chunk) [Item 4. Mine Safety Disclosures](index=28&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[170](index=170&type=chunk) [Item 5. Other Information](index=28&type=section&id=Item%205.%20Other%20Information) The company reported no other information for this item - None[171](index=171&type=chunk) [Item 6. Exhibits](index=29&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including various agreements, CEO and CFO certifications, and XBRL data files - Lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files[174](index=174&type=chunk)[175](index=175&type=chunk)

Financial Data and Key Metrics Changes - Payoneer reported 2022 revenue of $628 million, representing a 33% year-over-year growth, and adjusted EBITDA of $48 million, reflecting a 72% year-over-year growth [84] - Q4 revenue increased 32% year-over-year to $184 million, driven by growth in high-value services and interest income from customer balances [126] - The company ended Q4 with cash and cash equivalents of $543 million, a sequential increase of $35 million [14] Business Line Data and Key Metrics Changes - The B2B accounts payable/accounts receivable (AP/AR) business saw a 10% year-over-year volume growth in Q4, indicating strong demand for these services [97] - A threefold increase in spend on the virtual Commercial Mastercard was reported, with over $1 billion in volume achieved [71] - Customer funds held by Payoneer increased nearly $800 million sequentially and over $1.4 billion year-over-year to $5.8 billion [97] Market Data and Key Metrics Changes - The geographic diversity of revenue increased, with nearly 35% of overall revenues coming from Latin America, APAC, and SAMENA, up from approximately 20% four years ago [86] - The company experienced a normalization in volumes from large e-commerce marketplaces, with mid-single-digit volume growth reported [31] - Interest income from customer balances reached $36 million in Q4, up from less than $1 million in the prior year period [127] Company Strategy and Development Direction - Payoneer plans to invest approximately $30 million in building the next generation of its technology platform in 2023, focusing on automation and operational efficiency [94] - The company aims to double adjusted EBITDA in 2023 while continuing to invest in growth and profitability [16] - Payoneer is focused on acquiring more profitable active customers and enhancing its product capabilities to serve a larger customer base profitably [77] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting 2023 financial targets while investing for long-term growth, despite known headwinds from the decline in revenues for certain onboarding services and the exit from Russia [104] - The company anticipates continued strong growth in its B2B business and other high-value services, with a focus on managing acquisition costs and improving profitability [135] - Management highlighted the importance of leveraging the brand to attract more SMBs while reducing onboarding costs [78] Other Important Information - The Board of Directors appointed Bea Ordonez as CFO effective March 1, 2023, marking a leadership transition [8] - The company established the Payoneer Foundation to support charitable efforts aligned with its values, including small business development [124] - Payoneer reported a net loss of $10 million in Q4, compared to a net loss of $19 million in the same period last year [101] Q&A Session Summary Question: Insights on customer cohort profitability - Management noted that size drives economics, and investments in the platform will enable serving more customers profitably over time [23] Question: Product enhancements and spending priorities - Management highlighted a threefold increase in the Commercial Mastercard and emphasized the importance of bundling products to drive growth [25] Question: Pipeline for new larger SMB merchant partners - Management indicated optimism about the pipeline and the potential for growth in the B2B AP/AR business, particularly in Latin America [150] Question: M&A opportunities and market valuations - Management acknowledged that private company market valuations are rationalizing and that they are evaluating potential M&A opportunities [51] Question: Payoneer to Payoneer volume and monetization efforts - Management confirmed ongoing exploration of monetization strategies for Payoneer account holder transactions [161]