Payoneer (PAYO) - 2024 Q2 - Quarterly Results

Revenue Growth and Performance - Revenue excluding interest income grew 15% year-over-year to $173.7 million, while total revenue increased 16% to $239.5 million[2] - Revenue increased to $239.52 million in Q2 2024, up 15.9% from $206.73 million in Q2 2023[13] - Greater China region contributed $84.44 million in revenue, representing 35.3% of total revenue in Q2 2024[15] - Revenue recognized at a point in time increased to $170.75 million in Q2 2024, up 20.9% from $141.23 million in Q2 2023[14] - Interest income on customer balances grew to $65.82 million in Q2 2024, up 19.0% from $55.29 million in Q2 2023[14] Profitability and Adjusted EBITDA - Adjusted EBITDA rose 30% year-over-year to $72.8 million, reflecting improved profitability[2] - Adjusted EBITDA rose to $72.78 million in Q2 2024, up 30.1% from $55.97 million in Q2 2023[16] - Operating income increased to $46.31 million in Q2 2024, up 38.7% from $33.39 million in Q2 2023[13] Volume Growth and Customer Metrics - 22% volume growth year-over-year, with B2B volume increasing 40% to $2.5 billion, marketplace volume up 15% to $11.4 billion, and merchant services volume surging 192% to $119 million[5] - Active Ideal Customer Profiles (ICPs) grew 10% year-over-year to 547,000, with larger ICPs (over $10,000/month) increasing 7%[5] - SMB customer take rate increased 1 basis point year-over-year to 111 bps, driven by B2B volume growth[2] - Payoneer card spend grew 33% year-over-year to $1.2 billion, supported by new integrations with accounting platforms like Xero and QuickBooks[5] - Enterprise payouts volume increased 31% year-over-year to $4.7 billion, led by expansion in the travel vertical[5] Acquisitions and Strategic Investments - Payoneer acquired Skuad for $61 million in cash, with potential additional payments of up to $20 million, to expand into global workforce management services[4] Financial Position and Cash Flow - Customer funds increased 9% year-over-year to $6.0 billion as of June 30, 2024[5] - Cash and cash equivalents decreased to $575,730 thousand as of June 30, 2024, from $617,022 thousand as of December 31, 2023[19] - Customer funds decreased to $6,037,105 thousand as of June 30, 2024, from $6,390,526 thousand as of December 31, 2023[19] - Net cash provided by operating activities for the six months ended June 30, 2024, was $80,914 thousand, compared to $59,919 thousand for the same period in 2023[20] - Net cash used in investing activities for the six months ended June 30, 2024, was $665,298 thousand, compared to $63,453 thousand for the same period in 2023[20] - Net cash used in financing activities for the six months ended June 30, 2024, was $443,475 thousand, compared to $315,444 thousand for the same period in 2023[20] Net Income and Earnings - Net income decreased to $32.43 million in Q2 2024, down 28.8% from $45.55 million in Q2 2023[13] - Basic earnings per share decreased to $0.09 in Q2 2024 from $0.12 in Q2 2023[18] - Net income for the six months ended June 30, 2024, was $61,399 thousand, compared to $53,487 thousand for the same period in 2023[20] Expenses and Compensation - Research and development expenses slightly decreased to $27.58 million in Q2 2024 from $27.99 million in Q2 2023[13] - Stock-based compensation expenses decreased to $13.67 million in Q2 2024 from $16.17 million in Q2 2023[17] Assets, Liabilities, and Equity - Total assets decreased to $6,920,312 thousand as of June 30, 2024, from $7,283,119 thousand as of December 31, 2023[19] - Total liabilities decreased to $6,250,933 thousand as of June 30, 2024, from $6,618,846 thousand as of December 31, 2023[19] - Retained earnings (accumulated deficit) improved to $46,203 thousand as of June 30, 2024, from a deficit of $15,196 thousand as of December 31, 2023[19] - Common stock repurchased during the six months ended June 30, 2024, amounted to $98,654 thousand, compared to $17,125 thousand for the same period in 2023[20] Guidance and Future Projections - Payoneer raised 2024 guidance, projecting revenue of $920 million to $930 million and adjusted EBITDA of $225 million to $235 million[6]