Payoneer Global Inc. · NASDAQ:PAYO
Payoneer Global — SPAC Merger (May 2021)
47 slides from Payoneer Global's SPAC merger presentation, May 6, 2021
Slide 1: Connecting Today's Borderless World
Connecting Today’s Borderless World I N V E S T O R P R E S E N TAT I O N U p d a t e d M a y 6 , 2 0 21 Please see our SEC filings under “New Starship Parent, Inc.” for the most up to date information. 1
Slide 2: Disclaimers
Disclaimers Information Subject to Change The information, including financial information, contained herein has not been finalized and is subject to change. This confidential presentation was prepared exclusively for the benefit and internal use of the party to whom it is directly addressed and del
Slide 3: Disclaimers (cont.)
Disclaimers (cont.) Payoneer uses these non-GAAP measures to compare Payoneer’s performance to that of prior periods for budgeting and planning purposes. FTOC and Payoneer believe these non-GAAP measures of financial results provide useful information to management and investors regarding certain fi
Slide 4: Today's Presenters
Today’s Presenters FTAC Olympus Acquisition Corp. Betsy Z. Cohen Scott Galit Chairman of the Board Chief Executive Officer • Chairman of FinTech Acquisition Corp IV • Joined Nov 2010 and V • Scott previously served as SVP at • Previously Chairman of FinTech MasterCard, SVP/GM at First Data, EVP Acqu
Slide 5: Overview of FTAC Olympus Acquisition Corp.
Overview of FTAC Olympus Acquisition Corp. • Sponsor team brings deep expertise in FinTech and financial services sectors Strong Strategic Partner • A pioneer in the evolution of the SPAC structure since 2015 to unlock significant value in partnership with attractive companies seeking to Leader in t
Slide 6: Transaction Summary
Transaction Summary Key Highlights Implied Sources & Uses ($ in mm) Sources Valuation • Pro forma enterprise value of $3.27bn, which equates to 7.6x 2021E revenue of $432mm Existing Payoneer Shareholder Equity(5) $2,661 Cash Held in Trust $755 Proceeds from PIPE $300 Capital Structure • $563mm of ca
Slide 7: Who We Are: Our Mission
Who We Are: Global payment and commerce-enabling platform powering growth for millions of digital businesses Our Mission: Democratize access to financial services and drive growth for digital businesses of all sizes from around the world 7
Slide 8: Payoneer At a Glance
Payoneer At a Glance 5M+ 190+ Marketplaces, Countries & Territories(2) Enterprises and SMBs(1)(2) $44B $345M+ 2020F Volume(3) 2020F Revenue(3) Payoneer Team Locations New Planned Locations “Payoneer has been our passport for global growth.” Tophatter 1. Customer count includes all customers since la
Slide 9: Our Business is Well Positioned in the Large, Fast-Growing Global Digital Commerce Market
Our Business is Well Positioned in the Large, Fast-Growing Global Digital Commerce Market 9
Slide 10: Technology is Transforming Commerce Globally Creating a Need for a New Global Financial Platform
Technology is Transforming Commerce Globally Creating a Need for a New Global Financial Platform Acceleration of Digitalization Developed & Emerging Markets Now Interconnected, Driving X-Border Growth Unprecedented Access to Global Markets Creates Opportunity for Billions of People Marketplaces & Pl
Slide 11: Our Market Opportunity is Large and Rapidly Expanding
Our Market Opportunity is Large and Rapidly Expanding A Large Growing Global Market(1)… …Driven by Strong Trends ~$26 Trillion Projected B2B cross-border Global E-Commerce Volume 30% payment volume growth to 2022(2) ~$18 Trillion E-Commerce Volume ~400M SMBs worldwide(3) in Top 7 Countries 70% 4.9B
Slide 12: The Power of Our Platform
The Power of Our Platform We connect and monetize two-sided networks We provide global connectivity with localized capabilities We have a robust and scalable compliance, risk & regulatory infrastructure We combine modern technology and global service to drive growth for our customers We have a trust
Slide 13: We Connect and Monetize Two-Sided Networks
We Connect and Monetize Two-Sided Networks Marketplaces SMBs Access Attract New Markets New Customers Ensure Global Access Data Risk Management Growth Capital Compliance Omni-Channel Act Local Commerce Globally Security Flexible Technology Streamline B2B In-Network Payments Instant Payments Drive Gl
Slide 14: We Make Global Business Local
We Make Global Business Local REACH Europe Russia 190+ UK Countries & Territories(1) North & Asia Central America China SCALE Middle East 7,000+ SE Asia Trade Corridors(1) South Africa America Australia HARD TO REPLICATE 15+ Years to Build “What I love about Payoneer is the freedom I have to use it
Slide 15: Our Foundation: Robust Technology, Risk & Compliance Infrastructure
Our Foundation: Robust Technology, Risk & Compliance Infrastructure Global Banking Infrastructure Global Operations • Smart Routing platform • Localized global account management • Redundancy in over 100 countries(1) • Dozens of languages supported • 100+ countries local clearing(1) • Scaled regiona
Slide 16: Comprehensive Product Suite
Comprehensive Product Suite Global Payments Multi-Currency Account Physical & Virtual Cards B2B AP / AR Working Capital Merchant Services Compliance & Risk Services Tax Solutions Green Channel 16
Slide 17: Simple Global Payments for Marketplace Ecosystems
Simple Global Payments for Marketplace Ecosystems Payoneer works with 9 of the top 20 most valuable companies in the world (1) PAYONEER ACCOUNT Global Collections Streamlined Global Mass for Marketplace SMBs Payments MOBILE WALLET LOCAL BANK TRANSFER API Integration for BANK WIRE Onboarding and Paym
Slide 18: Global Multi-Currency Account for SMBs
Global Multi-Currency Account for SMBs We make it easier for SMBs to expand globally by making cross-border transactions seamless Marketplace Payments B2B AP / AR Global Multi-Currency Account Working Capital Pay Suppliers Physical & Virtual Cards ERP Integrations D Tax Solutions “Payoneer I believe
Slide 19: B2B AP / AR Momentum Demonstrates Ability to Extend the Platform
B2B AP / AR Momentum Demonstrates Ability to Extend the Platform B2B AP / AR Volume Localizing Global Payments for $1,000 140%+ YoY Volume Growth in 2020(1) Exporters and Importers Invoice $800 ($ in mm) $600 Seller Buyer $400 $200 - Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19
Slide 20: Innovation to Meet Customer Needs Opens Large Market Opportunities
Innovation to Meet Customer Needs Opens Large Market Opportunities Working Capital Merchant Services Providing SMBs the Capital They Need to Grow New Technology Enables Merchants to Optimize Their Payments and Expand Globally Merchant Merchant Machine-Learning Underwriting Next Generation Payments P
Slide 21: Payoneer – Beyond Payments
Payoneer – Beyond Payments US Marketplace SMB in Hong Kong Customer Profile Payoneer Value Customer Profile Payoneer Value $1bn+ annual volume(1), • Mass Payouts $100mm+ annual volume(1), • Global Payments 60%+ CAGR(2) • Tax Solutions 50%+ CAGR(3) • B2B AP / AR • Compliance • Global Multi-Currency A
Slide 22: Why We Win
Why We Win ADVANTAGES LANDSCAPE ⚫ Global brand with presence across 190+ countries(1) Global Digital Payment Providers ⚫ Broad ecosystem of SMBs, marketplaces and partners with powerful network effects Local Niche Players ⚫ Leading infrastructure and product platform built over 15+ years ⚫ Deep risk
Slide 23: Diversified Distribution Strategy with Attractive Unit Economics
Diversified Distribution Strategy with Attractive Unit Economics 23
Slide 24: We Go To Market Globally with a Trusted, Empowering Global Brand
We Go To Market Globally with a Trusted, Empowering Global Brand The Payoneer Brand Global & Local Teams Connecting Marketplaces & SMBs Network Effects Connect marketplaces, partners Strong network effect across and SMBs at events all over the marketplaces, partners, customers and world to engage, l
Slide 25: We Scale Our Business with an Integrated Global Partner Ecosystem
We Scale Our Business with an Integrated Global Partner Ecosystem Broad Partner Ecosystem Adds Value to Our Comprehensive Platform Selected Partner: Partnered with the #1 mobile finance Marketplaces ERP Systems app(1) in the Philippines enabling SMBs to get paid globally & access funds in real- time
Slide 26: Driving Powerful Network Effects...
Driving Powerful Network Effects... Strong Network Effects Powering Our Customer Acquisition Proven Out by Our Rapid Acceleration of New Customer Additions(1) Increase in size of new cohorts(2) Platform 2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018A 2019A 2020F 1. Ending Q4-2020. 2. Over the period
Slide 27: ...And Resulting in Strong Volume Cohort Performance and Highly Attractive Unit Economics
...And Resulting in Strong Volume Cohort Performance and Highly Attractive Unit Economics 2020 Volume(1) ~426x Volume(1) Growth from 2009-2020 >100% 2020F Cohort 2019 Cohort Net Volume Retention(2) 2018 Cohort 2017 Cohort 2016 Cohort <12 months 2015 Cohort 2014 Cohort Payback Period(3) Pre 2014 Coho
Slide 28: Sustainable Growth Opportunities
Sustainable Growth Opportunities 28
Slide 29: A Multi-Pronged Strategy to Deliver Sustained Growth
A Multi-Pronged Strategy to Deliver Sustained Growth Inorganic Growth Product Extension Expand Ecosystem Leverage Market Pursue Targeted, Momentum & Scale Ramp Merchant Services, Strategic M&A Accelerate Strategic and Working Capital & Card Channel Partnerships Growth Platforms optile Extend Leaders
Slide 30: Compelling Financial Model
Compelling Financial Model 30
Slide 31: Highlights of the Financial Model
Highlights of the Financial Model Our Strengths We Earn Fees When… Highly Efficient Customer Acquisition 1 SMBs collect funds / Marketplaces pay Cross-Sell New Products Increases Value per Customer Strong Cohort Performance 2 SMBs use funds Attractive Network Effects 3 For value-added services to SM
Slide 32: Secular Tailwinds & Innovative Product Offering Drive Top-Line Growth
Secular Tailwinds & Innovative Product Offering Drive Top-Line Growth Volume ($ in bn) Revenue ($ in mm) 38% 25% CAGR CAGR $85 $540 $432 $64 $346 $318 $44 $260 $215 $29 $22 $14 2017A 2018A 2019A 2020F 2021P 2022P 2017A 2018A 2019A 2020F 2021P 2022P % YoY Growth % YoY Growth 57% 35% 53% 44% 33% 21% 2
Slide 33: How We Generate Revenue
How We Generate Revenue Volume Take Rate Revenue $64bn x 68bps = $432mm 2021P Volume 2021P Blended Yield 2021P Revenue(1) Volume Drivers Take Rate Drivers ↑ Organic Growth from Existing ↑ Volume from New Services with Customers Higher Take-Rates ↑ New Customers ↑ Return of Cross-border Travel ↑ Up-S
Slide 34: Resilient Performance During Pandemic
Resilient Performance During Pandemic Adjusted Volume ($ in bn)(1) Total Take Rate(2) Adjusted Revenue ($ in mm)(3) 67% 31% $ 42 1.10% $ 319 0.78% $ 244 $ 25 2019A 2020F Take Rate Considerations • COVID Impact on international travel • Interest income • Vertical mix shift and growing domestic paymen
Slide 35: Long Term Target Business Model
Long Term Target Business Model Illustrative Long Term Targets 20%+ 20%+ Revenue Growth EBITDA Margin 35
Slide 36: Key Investment Highlights
Key Investment Highlights Massive Addressable Market with Strong Tailwinds Robust Global Platform, Brand, Product Suite and Network Effects Create Sustainable Competitive Advantage Compelling Unit Economics and Business Model Multi-Pronged Growth Strategy Builds on Accelerating Momentum Proven Team
Slide 37: Appendix
Appendix PaYoneer:
Slide 38: Compelling Relative Valuation
Compelling Relative Valuation High-Growth Payments e-Commerce Global Processors Selected Peers FTAC Olympus 2022 Revenue Growth Rate 25% 29% 27% 8% EV / Revenue Multiple(1) 2021E 7.6 x 36.5 x 49.3 x 7.2 x 2022E 6.1 x 27.7 x 38.5 x 6.7 x Growth Adjusted EV / Revenue Multiple(1)(2) 2021E 0.3 x 1.2 x 1
Slide 39: Income Statement
Income Statement Year ended December 31 ($ in mm) 2017A 2018A 2019A 2020F 2021P 2022P Revenues $215 $260 $318 $346 $432 $540 Transaction Costs $74 $81 $95 Other Operation Expenses 50 69 82 Research and Development Expenses 20 29 35 Sales and Marketing Expenses 48 50 61 General and Administrative Exp
Slide 40: Reconciliation to Adjusted Revenue
Reconciliation to Adjusted Revenue Year ended December 31 ($ in mm) 2017A 2018A 2019A 2020F Revenue $215 $260 $318 $346 (-) Revenue Attributable to Two Travel Marketplaces and Interest Income (27) (49) (74) (27) Adjusted Revenue $188 $211 $244 $319 40
Slide 41: Appendix: Risk Factors
Appendix: Risk Factors PaYoneer:
Slide 42: Risk Factors (1/6)
Risk Factors (1/6) Certain factors may have a material adverse effect on our business, financial condition, and results of operations. The risks and uncertainties described below are not the only ones we face. Additional risks and uncertainties that we are unaware of, or that we currently believe ar
Slide 43: Risk Factors (2/6)
Risk Factors (2/6) 6. Unauthorized disclosure, destruction or modification of data, through cybersecurity breaches, computer viruses or otherwise, or disruption of our services, could expose us to liability and/or damage our reputation 7. Failure to protect, enforce and defend our intellectual prope
Slide 44: Risk Factors (3/6)
Risk Factors (3/6) 13. The failure to attract and retain key personnel could have a material adverse effect on our business 14. Acquisitions, joint ventures or other strategic transactions create certain risks and may adversely affect our business, financial condition or results of operations 15. We
Slide 45: Risk Factors (4/6)
Risk Factors (4/6) 21. If we fail to comply with the applicable requirements of our counterparty financial institutions and banking partners, they could seek to suspend or terminate our accounts, which could adversely affect our business 22. We depend on counterparty financial institutions and payme
Slide 46: Risk Factors (5/6)
Risk Factors (5/6) 28. Our business may be adversely affected by geopolitical and other risks associated with global operations. As we continue to expand internationally, including within emerging markets, we may become more susceptible to these risks. A significant number of our employees, includin
Slide 47: Risk Factors (6/6)
Risk Factors (6/6) 33. As our revenue has increased, our growth rate has slowed at times in the past and may slow or decline in the future. Future revenue growth depends on our ability to retain existing customers, attract new customers, and increase sales to both new and existing customers 34. Foll