Financial Data and Key Metrics Changes - Payoneer reported Q3 revenue of $271 million, a 9% year-over-year increase, with revenue excluding interest income reaching $211 million, up 15% year-over-year, marking a quarterly record [14][15] - Adjusted EBITDA was $71 million, representing a 26% adjusted EBITDA margin, with $12 million in adjusted EBITDA excluding interest income for the quarter [22][23] - Customer funds held by Payoneer increased 17% year-over-year to $7.1 billion, reflecting customer trust and future revenue potential [17][19] Business Line Data and Key Metrics Changes - B2B revenue grew 27% in Q3, now representing roughly 30% of revenue excluding interest, up from 20% in Q1 2023 [8][15] - Average Revenue Per User (ARPU) increased 15% in the quarter and was up 22% excluding interest income, with a total increase of 65% since Q1 2023 [15][6] - The focus on larger customers has resulted in nearly 30% of Q3 revenue coming from customers with over $250,000 in monthly volume [7][33] Market Data and Key Metrics Changes - SMB volume grew 6% year-over-year, with B2B SMB volume up 11% and checkout volume up 46% [16] - Enterprise payouts volume increased 19% year-over-year, driven by strong demand in key travel routes and onboarding of new enterprise customers [16] - The take rate for Q3 was 121 basis points, roughly flat year-over-year, with a 12 basis point increase in the SMB customer take rate [16][20] Company Strategy and Development Direction - The company is focused on profitable growth by refining its customer portfolio and prioritizing larger, more complex customers [6][12] - Payoneer is evolving its platform to capture opportunities in stablecoins and blockchain technology, with plans to offer Stablecoin Wallet functionality in 2026 [10][41] - The strategy includes prudent capital allocation, with nearly $500 million in cash and a $300 million share buyback program [12][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential despite short-term volatility, emphasizing a focus on quality customer acquisition and retention [4][5] - The company anticipates continued growth in customer balances and revenue, driven by the adoption of higher-value products and services [9][25] - Management noted a modest softening in volumes in October but remains optimistic about the upcoming holiday season and overall business performance [40] Other Important Information - Total operating expenses increased 10% to $235 million, driven by labor-related expenses and transaction costs [19][22] - The company has secured approximately $120 million of interest income for 2026 through hedging programs [18][19] - Payoneer is actively managing its transaction costs and leveraging strategic partnerships to improve operational efficiency [20][21] Q&A Session Summary Question: Insights on sustainability of key metrics for 2026 - Management highlighted the sustainability and durability of growth metrics, with ARPU consistently growing above 20% and a resilient business model [30][32] Question: Changes in go-to-market strategy - The company is focusing on acquiring larger, higher-quality customers through organic growth and strategic partnerships, enhancing its market presence [34][36] Question: Impact of macroeconomic factors on SMBs - Management acknowledged the impact of tariffs and macroeconomic volatility on SMB volumes but noted resilience and adaptability among customers [38][40] Question: Demand for stablecoin technology - Management sees stablecoins as a long-term opportunity and is exploring their integration into the platform, driven by customer demand for multi-currency capabilities [41][42] Question: Sustainability of take rate expansion - The company reported a 12 basis point increase in take rate, driven by B2B growth and product adoption, with expectations for continued expansion [47][49] Question: Growth in customer funds - Management indicated that customer funds are expected to grow in line with overall volumes, driven by increased utility and adoption of AP products [54][58] Question: Trends in the checkout business - The transition to a partnership with Stripe is expected to improve cost dynamics, with moderated growth rates anticipated but significant revenue potential [61][62] Question: Update on the Scout acquisition - The workforce management business is experiencing solid growth, expanding the ecosystem of AP capabilities and enhancing the B2B value proposition [67][68]

Non-GAAP Financial Measures 2Q 2025 Investor Presentation NASDAQ:PAYO | August 6, 2025 Disclaimers 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. Forward-Looking Statements Certain statements in this presentation may be considered "forward- looking statements" within the meaning of the "safe har ...

Payoneer Global (PAYO) FY Conference Summary Company Overview - **Company**: Payoneer Global (PAYO) - **Industry**: Fintech and Payment Services - **Key Executives Present**: CEO John Kaplan, CFO Pete Ordonez Core Industry Insights - **Global Economic Trends**: The digitization of global commerce, globalization of workforces, and diversification of global trade are significant trends benefiting Payoneer [5][6] - **Tariff Environment**: Current tariff situations present short-term headwinds but are expected to create long-term opportunities for growth [5] Financial Performance - **EBITDA Growth**: Payoneer reported an EBITDA of $270 million in 2024, a significant increase from $28 million in 2021 [2][11] - **Revenue Growth**: Revenue grew by 20% in 2025, with Q1 showing a 16% increase [12][39] - **Customer Funds**: The company holds approximately $7 billion in customer funds, which generates interest income despite no yield being paid to customers [10][42] - **Revenue Composition**: 90% of revenue comes from 550,000 ideal customer profiles (ICPs), which represent over 50% of total revenue [29][30] Market Position and Strategy - **Market Share**: Payoneer has a single-digit market share in key global markets and aims to expand its presence [26] - **Customer Segments**: Focus on B2B SMBs and marketplace sellers, with a 20% market share in the latter [27][28] - **Product Diversification**: The company is expanding its product offerings, including accounts payable solutions and workforce management tools [15][32] Competitive Advantages - **Branded Relationships**: Strong partnerships with major marketplaces like Amazon, eBay, and Alibaba enhance Payoneer's market position [20][22] - **Local Presence**: Payoneer operates in 90 countries, providing localized support and services, which is a significant competitive advantage [25] - **Technological Edge**: The company offers advanced financial solutions that traditional banks cannot match, such as multi-currency accounts and 24/7 support [26][24] Future Outlook - **Growth Projections**: The management team aims for mid-teens revenue growth and 25% adjusted EBITDA margins in the medium term [38] - **Investment in Growth**: Payoneer has a strong balance sheet with $500 million in cash and no debt, allowing for continued investment in growth and shareholder returns [36][50] Investor Insights - **Market Misunderstandings**: There is a perceived disconnect between Payoneer's financial performance and investor understanding, particularly regarding the value of customer funds and the company's growth potential [41][42] - **Take Rate Dynamics**: Contrary to industry trends, Payoneer has successfully expanded its take rates, indicating strong pricing power [48][49] Conclusion - Payoneer is well-positioned to capitalize on the growing demand for cross-border financial services, with a robust business model, strong financial performance, and a clear strategy for future growth. The company encourages investors to engage more deeply with its business model to fully appreciate its value proposition and growth potential [51].

Financial Performance & Growth - Payoneer's total revenue for 1Q25 was $247 million, representing an 8% year-over-year growth[109] - Revenue excluding interest income for 1Q25 was $189 million, a 16% year-over-year increase[109] - Adjusted EBITDA for 1Q25 was $65 million, with an adjusted EBITDA margin of 27%[109] - Customer funds grew by 11% year-over-year, reaching $6.6 billion[85] Customer & Regional Growth - Active Ideal Customer Profiles (ICPs) totaled 556,000 as of March 31, 2025, a 5% year-over-year increase[42, 116] - Revenue from the APAC region grew by 23% year-over-year in 1Q25[116] - Revenue from the LATAM region grew by 21% year-over-year in 1Q25[116] Product & Service Expansion - B2B SMBs revenue increased by 37% year-over-year in 1Q25[113] - Merchant services revenue increased by 96% year-over-year in 1Q25[113] - 53% of customers are using 3+ AP products in Q4'24, compared to 40% in Q1'22[32, 64] Strategy & Outlook - The company is suspending its previously issued full-year 2025 guidance due to macroeconomic uncertainty[118] - The company is targeting mid-teens revenue growth and a 25% adjusted EBITDA margin in the medium term (through 2026)[99, 100, 101]