Payoneer Global Inc. · NASDAQ:PAYO
Payoneer Global — Q2 2023 Earnings Presentation
20 slides from Payoneer Global's earnings presentation, Aug 8, 2023
Slide 1: Q2'23 Earnings Supplement
Q2’23 Earnings Supplement Nasdaq: PAYO August 8, 2023
Slide 2: Disclaimers
Disclaimers This presentation does not constitute an offer to sell, a solicitation of be achieved or that any of the contemplated results of such forward- Adjusted EBITDA: We provide adjusted EBITDA, a non-GAAP an offer to buy, or a recommendation to purchase any security. You looking statements wil
Slide 3: Payoneer makes it easy for cross-border SMBs to manage their business
Payoneer makes it easy for cross-border SMBs to manage their Business process Remote software B2B goods Omnichannel outsourcing in developer in wholesaler in the home accessory the Philippines Argentina UAE seller in China Illustrative examples. SMBs stands for small and medium-sized businesses. 3
Slide 4: Payoneer helps SMBs in the fastest growing markets do business globally
Payoneer helps SMBs in the fastest growing markets do business globally Money In Money On Money Out Accounts Global multi- Accounts receivable currency account payable Delivering strong growth and increasing profitability Active Ideal Customer Profiles customer countries of LTM volume, highlighting
Slide 5: Payoneer's competitive advantages
Payoneer’s competitive advantages Strong trusted Broad Scaled 18 years of drives footprint with business model expertise in penetration with go-to- and end-to-end industry SMBs, particularly market approach suite of products relationships, and with in and presence drives customer regulatory loyalty
Slide 6: Positioned to win in the fastest growing economies around the world
Positioned to win in the fastest growing economies around the world 100% Vietnam 80% Netherlands Exports as a % of GDP Switzerland Malaysia 60% Thailand Korea Germany 40% Italy Mexico Spain Russia Canada Turkey Morocco France Philippines UK 20% Australia Brazil Japan Indonesia China India Bangladesh
Slide 7: Payoneer's ecosystem and infrastructure: a growing competitive advantage
Payoneer’s ecosystem and infrastructure: a growing competitive advantage Select partner examples ecommerce Freelance Content creation Travel Marketplaces We have relationships with many of the largest marketplaces globally that aggregate consumer demand for our SMB customers Ecosystem relationships
Slide 8: 2Q'23 financial results
2Q’23 financial results Revenue Volume Adjusted EBITDA Net Income Data as of 6/30/23. Please refer to the appendix of this presentation for the reconciliation from net income (loss) to adjusted EBITDA. 8
Slide 9: Strong revenue growth
Strong revenue growth Revenues ($M) Drivers of • increase in interest income driven Q2’23 by a $388M increase in customer funds $207 revenue and rising interest rates growth YoY • volume growth driven by recovery in travel and growth in ecommerce • revenue growth in every region $148 • increase in a
Slide 10: Continued geographic diversification
Continued geographic diversification Revenues by geography 0… 0 0.32… of revenues from of revenues from higher growth 0… higher growth and take rate and take rate regions regions 0… 0… 2018 2Q’23 LTM Greater China Europe North America Asia Pacific South Asia, Middle East & Africa Latin America Note:
Slide 11: Focusing on Ideal Customer Profiles
Focusing on Ideal Customer Profiles Active ICPs1 (‘000s) • Shifting acquisition and service model towards active 495 YoY growth in ICPs excluding Europe, where growth is impacted year-over-year by the ongoing war in Ukraine 467 • Strong ICP growth in higher-take rate regions: • LATAM: • APAC: • SAME
Slide 12: Customers trust Payoneer
Customers trust Payoneer Customer funds ($B) of customer funds are interest-bearing $5.5 of customer funds are held with U.S. domestic $5.1 financial institutions of customer funds are denominated in U.S. dollars of balances are currently held in cash deposits 2Q22 2Q23 Data as of 6/30/23. 12
Slide 13: Scaling new customer segments and products
Scaling new customer segments and products Money In Manage funds and liquidity Money Out seeing strong growth in stable even as we driving services-oriented markets lower risk tolerance due to macro strong, higher take rate, growth uncertainty $979 $7.1 $7.1 $345 $813 +29% YoY $5.2 growth in 2Q $251
Slide 14: Increasing profitability and focus on driving further operating efficiencies
Increasing profitability and focus on driving further operating efficiencies Transaction cost as a percentage of revenue Adjusted EBITDA ($M) $56 17.7% 17.6% 16.6% $39 14.1% 13.8% 27% $15 20% $13 10% $11 8% 6% 2Q22 3Q22 4Q22 1Q23 2Q23 2Q22 3Q22 4Q22 1Q23 2Q23 Adjusted EBITDA Margin Note: Please refe
Slide 15: Strong net capital position: Payoneer deploys capital to maximize long-term value
Strong net capital position: Payoneer deploys capital to maximize long-term value Strong capital position Prioritiesfor Priorities forcapital capitalallocation allocation of cash and cash equivalents approach to capital allocation and efficiency related to working capital solution for customers1 • A
Slide 16: 2023 full year guidance
2023 full year guidance 2023 Guidance as of August 8, 2023: 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 Company cannot
Slide 17: Long-term target business model
Long-term target business model Illustrative long-term targets Revenue growth Adjusted EBITDA margin 17
Slide 18: Appendix
Appendix 18
Slide 19: Reconciliation of net income (loss) to adjusted EBITDA
Reconciliation of net income (loss) to adjusted EBITDA Three months ended, June 30, 2022 Sept. 30, 2022 Dec. 31, 2022 Mar. 31, 2023 June 30, 2023 Net income (loss) $ 4,422 $ (26,452) $ (10,151) $ 7,938 $ 45,549 Depreciation & amortization 5,171 5,899 5,333 6,039 5,909 Taxes on income 1,374 2,635 7,6
Slide 20: Thank you.
Thank you. payoneer.com