Payoneer Global Inc. · NASDAQ:PAYO
Payoneer Global — Q3 2023 Earnings Presentation
24 slides from Payoneer Global's earnings presentation, Nov 8, 2023
Slide 1: 3Q 2023 Earnings Supplement
3Q 2023 Earnings Supplement Nasdaq: PAYO November 8, 2023
Slide 2: Disclaimers
Disclaimers This presentation does not constitute an offer to sell, a solicitation of looking statements will be achieved. You should not place undue Non-GAAP measures include the following item: an offer to buy, or a recommendation to purchase any security. You reliance on forward-looking statement
Slide 3: Payoneer's mission: connect underserved businesses to a global economy
Payoneer’s mission: Connect the world’s underserved businesses to a rising, global economy 3
Slide 4: Payoneer at a glance: strong growth and increasing profitability
Payoneer at a glance: strong growth and increasing profitability Revenue ($M) Adjusted EBITDA ($M) 35% 218% $163 Active Ideal Customer $790 customer countries Profiles (ICPs)1, +5% year- and territories over-year $583 of 3Q23 LTM volume, +8% of corporate cash on hand, $51 year-over-year, highlightin
Slide 5: Global expansion is essential for SMBs but transacting across borders is complex
Global expansion is essential for today’s SMBs but transacting across borders is complex Can’t get paid Can’t pay Can’t get capital Why does international money How can I use my card for global Why don't local lenders underwrite transfer take 3-4 business days? advertising without it being rejected?
Slide 6: 80M underserved SMBs
Global banks 80M Underserve small businesses underserved SMBs Fintech Primarily for P2P, and Need cross-border, with limited geographies B2B financial solutions designed for small Local banks businesses Underserve cross-border needs Source: McKinsey. 6
Slide 7: Payoneer is the multi-currency financial stack optimized for the global SMB
Payoneer is the multi-currency financial stack optimized for the global SMB Checkout Pay Invoice Financial stack Payoneer card for global SMBs Load funds Manage and optimize Move money financial operations, including: Marketplace payout • Treasury Pay vendors, suppliers, • Currency conversions and b
Slide 8: We have unique assets and infrastructure
We have unique assets and infrastructure… • Financial services institution regulated • Virtual account so customers are • ~2M active customers, including across key markets, including US, always local, no matter where they 502K active Ideal Customer Europe, Hong Kong, Japan, Australia, are and who t
Slide 9: Serving diverse customer types and use cases
…and serve diverse customer types and use cases Contractors and Consumer goods Service Goods traders freelancers sellers providers and manufacturers Contractors and freelancers paid B2C sellers selling on Service SMBs in IT, business SMB exporters of electronics, auto- by marketplaces (Upwork, Fiver
Slide 10: Payoneer helps SMBs in the fastest growing markets do business globally
Payoneer helps SMBs in the fastest growing markets do business globally Business process Software Producer and seller of outsourcing in the development 3D printers in China Philippines contractor in Brazil 10
Slide 11: Our efficient, effective acquisition and growth engine
Our efficient, effective acquisition and growth engine Brand reputation Global marketplaces and organic traffic and platforms Organic Global and local Customer-driven Partnerships partnerships growth and referrals Sales & Marketing Local and regional sales teams Global and local marketing activities
Slide 12: We are pursuing a $6 trillion opportunity
We are pursuing a $6 trillion opportunity Audiences Manufacturers Services SMBs Goods merchants Contractors / freelancers Marketplace SMB Consumers SMB SMB Businesses Cross-border payment needs Source: McKinsey. Industry data and Payoneer volume market share as of 2022. 12
Slide 13: 3Q 2023 business and financial highlights
3Q 2023 business and financial highlights 13
Slide 14: 3Q 2023: Continued execution driving results
3Q 2023: Continued execution driving results Active ICPs (‘000s) Revenue ($M) Transaction cost as a Adjusted EBITDA ($M) percentage of revenue 31% (300) $208 17.6% 357% bps $58 5% 502 14.6% 479 $159 $13 3Q22 3Q23 3Q22 3Q23 3Q22 3Q23 3Q22 3Q23 Note: Data as of 9/30/23. Please refer to the appendix of
Slide 15: Steadily growing ICPs
Steadily growing ICPs Active ICPs by region (‘000s) Active ICPs by size (‘000s) 495 502 495 502 479 488 491 479 488 491 +17% 62 63 48 50 52 53 57 60 62 46 YoY 88 93 93 94 98 +12% YoY 100 103 106 109 114 440 441 443 449 +4% 433 90 YoY 92 93 95 97 -2% 116 113 108 106 102 YoY 28 28 29 29 29 3Q22 4Q22 1
Slide 16: Accelerating penetration into new TAMs and cross-selling more products
Accelerating penetration into new TAMs and effectively cross-selling more products B2B volume ($B): ~1.5% effective take rate Checkout volume ($M): ~4% effective take rate Seasonality $1.8 $1.9 $1.8 $1.8 $1.7 +23% $63 0.6 0.7 0.8 0.8 YoY +473% 0.7 $41 YoY 1.2 -11% $29 1.1 1.0 1.0 1.0 $20 YoY $11 3Q2
Slide 17: Customers trust Payoneer
Customers trust Payoneer Customer funds ($B) • 80%+ of customer funds are interest-bearing 7% $5.4 • ~75% of customer funds are held with U.S. domestic financial institutions $5.0 • ~76% of customer funds are denominated in U.S. dollars • 100% of balances are currently held in cash deposits 3Q22 3Q2
Slide 18: Strong cash flow generation and significant cash on hand
Strong cash flow generation and significant cash on hand are a strategic advantage Operating cash flows ($M) $591M $100M+ + $101 Cash and cash Operating cash $84 equivalents flows1 $20 $10 2020 2021 2022 3Q23 YTD Note: data as of 9/30/23. 1. For the period 1/1/23-9/30/23. 18
Slide 19: 2023 full year guidance as of November 8, 2023
2023 full year guidance as of November 8, 2023 $820-830M ~14.5% $195-205M Revenue Transaction costs as a % Adjusted EBITDA1 of revenue Guidance for fiscal year, where adjusted, is provided on a non-GAAP basis, which Payoneer will continue to identify as it reports its future financial results. The C
Slide 20: Our roadmap to profitable growth
Our roadmap to profitable growth Medium-term Long-term (1-3 years) (3+ years) Mid-teens 20%+ revenue growth revenue growth 25% 25%+ Adjusted EBITDA margin Adjusted EBITDA margin 20
Slide 21: Appendix
Appendix ©Payoneer
Slide 22: ICP and revenue historical trends
ICP and revenue historical trends 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 YoY QoQ Active ICPs ('000s) By size: $500-$10K/month 410 423 433 440 441 443 449 4% 1% $10K+/month 43 44 46 48 50 52 53 17% 4% Total 453 467 479 488 491 495 502 5% 2% By primary regional market: APAC 92 97 100 103 106 109 114 13% 4
Slide 23: Reconciliation of net income (loss) to adjusted EBITDA
Reconciliation of net income (loss) to adjusted EBITDA Twelve months ended, Three months ended, ($ in thousands) Sept. 30, 2022 Sept. 30, 2023 Sept. 30, 2022 Sept. 30, 2023 Net income (loss) $ (20,721) $ 56,161 $ (26,452) $ 12,825 Depreciation & amortization 20,059 24,397 5,899 7,116 Taxes on income
Slide 24: Thank you.
Thank you. payoneer.com