Payoneer Global (PAYO) is an international financial technology company specializing in secure cross-border payments, digital money transfers, and global payroll solutions for businesses and entrepreneurs of all sizes. Its multi-currency platform enables users to send and receive funds, manage working capital, pay vendors, and access local accounts in over 150 global currencies across more than 190 countries. Founded in 2005, Payoneer is headquartered in New York City. The company operates worldwide, serv ...

Financial Data and Key Metrics Changes - The company reported strong growth in net revenue, maintaining the rapid pace achieved in 2024, with income from operations growing faster than revenue, particularly in Argentina [4][5][23] - Monthly active users reached 64 million, growing over 30% year on year [7] - EBIT margin improved by 70 basis points year on year, from 12.2% to 12.9% [96] Business Line Data and Key Metrics Changes - In Argentina, GMV growth was 126% year on year, with items sold increasing by 52% [20][23] - The supermarket category grew 65% year on year, outpacing other categories [31] - The fintech segment continues to expand, with a focus on democratizing financial services and increasing user engagement [7][11] Market Data and Key Metrics Changes - Brand preference metrics for the marketplace reached all-time highs in Brazil, Mexico, Argentina, and Chile [5] - The credit book in Argentina grew significantly, with assets under management increasing by 69% year on year [23][56] Company Strategy and Development Direction - The company aims to enhance its value proposition through strategic investments in both commerce and fintech, focusing on long-term growth opportunities in Latin America [5][4] - The rebranding of MercadoPago to align with the company's ecosystem is intended to strengthen user relationships and improve brand recognition [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the stabilization of the macroeconomic environment in Argentina, which has positively impacted credit performance and profitability [22][24] - The company is cautious about competition but sees opportunities arising from new entrants in the e-commerce space, which could bring new users online [116][118] Other Important Information - The company is focused on logistics as a key enabler for growth, with ongoing investments in fulfillment centers [44][45] - The fintech sector is expected to continue growing, with a strong emphasis on user retention and engagement through innovative financial products [59][90] Q&A Session Summary Question: Sustainability of trends in Argentina - Management noted strong growth in Argentina driven by recovery in demand and market share gains, with a focus on enhancing the value proposition [20][24] Question: Growth drivers in 1P GMV - The company highlighted strong performance across various categories, with supermarket growth being particularly notable [30][31] Question: Contribution margin evolution in Argentina - Management attributed the high contribution margin to growth in commerce and fintech, along with improved efficiencies [50][51] Question: Asset quality trends - The company reported strong asset quality in Argentina, with low delinquencies and a growing credit portfolio [56][57] Question: Strategy regarding deposits in Brazil - The focus is on marketing and positioning as a leading digital bank, with a recent campaign to enhance brand awareness [59][62] Question: Credit business appetite and funding strategy - Management confirmed a healthy credit portfolio with no deterioration, while also being cautious about risk [65][69] Question: Impact of competition from TikTok and other platforms - The company is monitoring new entrants closely but believes they may bring new users to the online marketplace [116][118]