Payoneer Global Inc. · NASDAQ:PAYO
Payoneer Global — Investor Day (September 2023)
92 slides from Payoneer Global's investor day presentation, Sep 21, 2023
Slide 1: The financial stack to grow global businesses
The financial stack to grow global businesses September 21, 2023
Slide 2: Today's presenters
Today’s presenters John Caplan Assaf Ronen Adam Cohen Bea Ordonez Chief Executive Chief Platform Chief Growth Chief Financial Officer Officer Officer Officer 2
Slide 3: Agenda
Agenda 1:00 – 1:05 pm Welcome Michelle Wang, VP Investor Relations 1:05 – 1:25 pm Our business and opportunity John Caplan, Chief Executive Officer 1:25 – 1:45 pm Building the global SMB financial stack Assaf Ronen, Chief Platform Officer 1:45 – 2:00 pm Break 2:00 – 2:20 pm Accelerating ICP and ARPU
Slide 4: Disclaimers
Disclaimers This presentation does not constitute an offer to sell, a solicitation of an forward-looking statements. expense (income), net, taxes on income, and depreciation and offer to buy, or a recommendation to purchase any security. You should amortization. not construe the contents of this pre
Slide 5: Our business and opportunity
Our business and opportunity John Caplan Chief Executive Officer September 21, 2023
Slide 6: Connect the world's underserved businesses to a rising, global economy
Payoneer’s mission: Connect the world’s underserved businesses to a rising, global economy Investor Day September 2023 John Caplan, CEO | 6
Slide 7: Cross-border trade is critical to the global economy
Cross-border trade is critical to the global economy Global trade volume $32T $38T of global trade in 2022 $32T $23T +47% growth in emerging economies1 over the past decade 2012 2022 2030 Source: UNCTAD for historical global trade data. BCG estimates for 2030. 1. Emerging economies as defined by UNC
Slide 8: Global expansion is essential for today's SMBs
Global expansion is essential for today’s SMBs 72% 69% of Small- and Medium-sized The amount by which SMBs expect Businesses (SMBs) see cross-border their revenues to be export-driven by expansion as a way to grow their the end of 2023 – up from 52% in 2021 customer base and revenues and 61% in 2022
Slide 9: But transacting across borders is complex, especially for SMBs in emerging markets
But transacting across borders is complex, especially for SMBs in emerging markets Can’t Can’t Can’t get paid pay get capital John Caplan, CEO | 9
Slide 10: 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. John Caplan, CEO | 10
Slide 11: Payoneer is the multi-currency financial stack for global SMBs
Payoneer is the multi-currency financial stack for global SMBs Collect and pay Currency agnostic AP/AR and payment methods Access opportunity Virtual local business accounts, global business network Grow smarter Full capability suite (working capital, optimized FX, faster, cheaper, more reliable rou
Slide 12: Our assets and differentiators
Our assets and differentiators Investor Day September 2023 John Caplan, CEO | 12
Slide 13: We're global…
We’re global… Scaled platform • Financial services institution regulated across key markets, including US, Europe, Hong Kong, Japan, Australia, Singapore, UK • Ability to onboard customers from 190+ countries and territories • 100+ banking providers and payment service providers (PSPs) • Partnership
Slide 14: …and hyperlocal
…and hyperlocal Localized experience • Virtual account so customers are always local, no matter where they are and who they do business with • Smart routing system that enables global payments in the most economical way possible • Same day & real time settlement with highest reliability in 150+ coun
Slide 15: We are trusted anywhere
We are trusted anywhere Strong brand • ~2M active customers, including 495K active Ideal Customer Profiles (ICPs)1 • $5.5B in customer balances • Global awareness level among digital payment providers second only to PayPal2 Note: Data as of 6/30/23. 1. Active ICPs are defined as customers with a Pay
Slide 16: Creating connections everywhere
Creating connections everywhere 4.2 ~20% 11M in-network year-over-year monthly global connections growth of total transactions per ICP in-network transaction volume1 Note: Data as of 6/30/23. 1. Year-over-year growth represents 7/1/22-6/30/23 vs. 7/1/21-6/30/22. John Caplan, CEO | 16
Slide 17: Our customers are entrepreneurs like Kevin
Our customers are entrepreneurs like Kevin COMPANY Elegoo China Producer and seller of 3D printers ~200 employees Payoneer customer since 2017 USES PAYONEER FOR: B2B + B2C transactions Getting paid globally from marketplaces Getting paid directly from consumers Paying expenses like advertising, ship
Slide 18: Service businesses like Hannah's
Service businesses like Hannah’s COMPANY Accentline Inc Philippines Business process outsourcing (BPO) ~100 employees Payoneer customer since 2019 USES PAYONEER FOR: Global AR and payments Getting paid by international clients Paying expenses and payroll Accessing working capital Investor Day Septem
Slide 19: And contractors like Pedro
And contractors like Pedro COMPANY Self-employed Brazil Software developer Payoneer customer since 2020 USES PAYONEER FOR: Global business management Getting paid by clients directly Paying expenses via card Withdrawing his money to local bank accounts Investor Day September 2023 John Caplan, CEO |
Slide 20: They represent our Ideal Customer Profiles (ICPs)
They represent our Ideal Customer Profiles (ICPs): the focus of our future growth Customer # % of revenue1 Customer growth YoY ~50K ~50% $10K+/month ICPs +18% 495K +6% Active ICPs2 ~450K ~25% $500-$10K/month ICPs +5% Active non- ~1.5M <10% +11% ICPs 1. % of revenue based on $741M of revenue for the
Slide 21: Today: 495K ICPs across six regions
Today: 495K ICPs across six regions Europe North 106K ICPs America Greater 29K ICPs China 95K ICPs SAMEA 94K ICPs APAC 109K ICPs Latin America 62K ICPs Note: Data as of 6/30/23. Active ICPs are defined as customers with a Payoneer Account that have on average over $500 a month in volume and were act
Slide 22: We have a $6 trillion opportunity
We have 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 volume data as of 2022. John Caplan, CEO | 22
Slide 23: We are winning our "wedge"
We are winning our “wedge” Audiences Goods merchants Contractors / freelancers ~20% share Marketplace SMB Cross-border payment needs Source: McKinsey. Industry data and Payoneer volume market share as of 2022. John Caplan, CEO | 23
Slide 24: We are accelerating penetration into new TAMs
We are accelerating penetration into new TAMs Audiences Payoneer B2B China, US, Europe: Manufacturers +50% 3-year volume CAGR Payoneer B2B APAC, Latin America, SAMEA: Services +72% 3-year volume CAGR SMBs Payoneer’s Checkout product: Goods 900%+ year-over-year volume growth merchants Payoneer’s mark
Slide 25: Our strategy for profitable growth
Our strategy for profitable growth Comprehensive financial Efficient go-to-market Optimized operations and stack for ARPU growth and approach for ICP capital allocation TAM capture acquisition and retention + + Organic Partnerships Sales & Marketing Note: Please refer to the appendix of this present
Slide 26: Payoneer is a diversified, growing business with compelling valuation dynamics
Payoneer is a diversified, growing business with compelling valuation dynamics and significant potential upside. With a mission to connect 80M underserved SMBs to a rising, global economy, we captured 20% share in a $300B market and intend to win in a $6T market. John Caplan, CEO | 26
Slide 27: Building the global SMB financial stack
Building the global SMB financial stack Assaf Ronen Chief Platform Officer September 21, 2023
Slide 28: The cross-border financial system is broken for SMBs
The cross-border financial system is broken for SMBs Why can’t I get paid? Why is the international credit card rejection rate high (>40%)? Why does international money transfer How do I manage inflation? take 3-4 business days? Why can't I track my money like I track Why am I paying 5% - 8% in "ban
Slide 29: So we built a financial stack optimized for the global SMB
So we built a financial stack that is optimized for the global SMB Checkout Pay Invoice Payoneer card Financial stack Load funds for global SMBs Move money Manage and optimize financial operations, including: Marketplace payout • Treasury Pay global vendors, suppliers, • Currency conversions and bus
Slide 30: One secure portal optimized for engagement
One secure portal optimized for engagement ~550K Applications completed monthly 31 log-ins Per month among $10K+/month ICPs Note: Data as of 6/30/23. Assaf Ronen, Chief Platform Officer | 30
Slide 31: Our offerings are differentiated
Our offerings are differentiated Tailored for SMBs All-in-one Essential – operating convenience high engagement internationally • One account. Multiple currencies • Transact, access insights, manage • Daily log-ins amongst our ICPs operations, and grow your business • • Designed for cross-border Net
Slide 32: Data: our platform's most powerful asset
Data: our platform’s most powerful asset Data-driven insights around… … creating opportunity through AI Hyper-personalized experiences (e.g., Millions of SMBs (who they sell to, who they pay, communications, offerings) financial health, networks, and relationships) Generative AI-powered and enabled
Slide 33: Our offerings: designed to delight customers, capture new TAMs and grow ARPU
Our offerings: Designed to delight customers, capture new TAMs and grow ARPU Assaf Ronen, Chief Platform Officer | 33
Slide 34: Capturing new TAM: B2B services and goods
Capturing new TAM: B2B services and goods Receive payments via local virtual accounts 2024 growth accelerators Payoneer customer Their client IT outsourcing Law firm • Focused GTM: ICP acquisition in key emerging markets 1 Send invoice with virtual account details • Expanded industries: e.g. agricul
Slide 35: Capturing new TAM: Checkout (DTC)
Capturing new TAM: “Checkout” (DTC) 900%+ Significant opportunity ahead YoY growth in Checkout volume1 • Improved international acceptance $100M • • More payment methods Continued integration with store of volume platforms processed since launch in 2022 • Product and go-to-market synergies with othe
Slide 36: Growing ARPU: Payoneer card
Growing ARPU: Payoneer card Commercial card • $1.0B of LTM spend, $3.3B Significant opportunity ahead +80% growth YoY1 LTM card spend • 47K customers (5.4% of overall usage of funds, up • Increase penetration via cross-sell from 4.7% in the and offering expansion Debit card prior year period) • Offe
Slide 37: Strengthening our wedge: working capital
Strengthening our wedge: working capital 70% Significant opportunity ahead customer return rate1 • Expansion to more credit solutions 49% • Fully automated, personalized originations CAGR2 cross-sell • Superior data / AI for underwriting 65% • With $64B of LTM total volume, of originations from work
Slide 38: But we're not stopping there
But we're not stopping there Assaf Ronen, Chief Platform Officer | 38
Slide 39: Increasing velocity of our product development
Increasing velocity of our Advanced invoicing capabilities product development More local payment collection accounts More payment methods for B2B Customer risk predictors Buyer & trade finance FX hedging Load funds onto your own account AR / AP automation Expanded billing service Expanded Checkout
Slide 40: Expanding our financial stack with our customer at the center
Expanding our financial stack with our customer at the center Ease Trust Payoneer is easy and efficient Payoneer has our customers’ with a cutting-edge customer back. They are always informed, in experience that prioritizes speed control, and operate with peace of and convenience mind: from onboardi
Slide 41: Improving ease: better customer experience enhances cross-sell
Improving ease: better customer experience enhances cross-sell capabilities Better account experiences More effective communication • SMB-grade features (e.g., role • More localized communication management) channels • Hyper-personalization and product • Gen AI-enabled chat recommendations (e.g., pe
Slide 42: Expanding our all-in-one stack: build, buy, partner
Expanding our all-in-one stack: build, buy, partner Serving more customers and more payment needs Checkout product • Checkout product for DTC sales via webstores • New geographies and verticals • Ability to load funds directly • More card types Catering to SMBs’ holistic cross-border needs • More wo
Slide 43: Strengthening trust: drives loyalty and retention
Strengthening trust: drives loyalty and retention Greater visibility and control • Basic payment tracker • AI-powered payment tracker • Notifications (including on potential fraud) Better insights for business success • Store closure predictor • Predictive models for better planning and to reduce po
Slide 44: Capturing the full potential of our reliable interconnected network
Capturing the full potential of our reliable interconnected network Reliable and efficient in-network transactions Basic in-network payment • In-network payments • Customer, vendor, and peer referrals Accessing supply and demand via the Payoneer community • Directory of trusted businesses within the
Slide 45: How we win with the Payoneer financial stack
How we win with the Payoneer financial stack Customer-obsessed Comprehensive Connected • Purpose-built for global • All-in-one platform, • Ability to onboard customers SMBs unparalleled functionality at scale • Easy-to-use product, • Increasing product adoption • Trusted, global infrastructure delig
Slide 46: Accelerating ICP and ARPU growth
Accelerating ICP and ARPU growth Adam Cohen Chief Growth Officer September 21, 2023
Slide 47: We operate in a massive $6 trillion global market
We operate in a massive $6 trillion global market Audiences Ukragroenergyinvest (Serhii), Ukraine Manufacturers (10s employees) Agricultural trading company Services SMBs Accentline (Hannah), Philippines (>100 employees) Goods BPO merchants Elegoo (Kevin), China Contractors / (~200 employees) freela
Slide 48: We serve diverse customer types and use cases
We 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, Fiverr)
Slide 49: We are expanding into the $150 billion DTC market via Checkout
We are expanding into the $150 billion DTC market via Checkout Payoneer’s opportunity and share in the DTC market 0.3% Payoneer’s market share 0.2% 0.1% 0.1% China APAC Rest of World Total Market opportunity: $70B $30B $50B $150B Source: McKinsey. TAM and market share information as of 2022. Adam Co
Slide 50: Supporting goods sellers like Elegoo
Supporting goods sellers like Elegoo Local transfer Local Bank account Elegoo, China China entity account In-network ~40% of Payoneer’s consumer goods seller Marketplaces Cards Advertising customers’ funds are used (e.g. Amazon, eBay) via Payoneer’s AP products Global Wires Global Shipping DTC Platf
Slide 51: Early stages of penetrating the $850 billion B2B service provider market
We are in early stages of penetrating the $850 billion B2B service provider market Payoneer’s opportunity and share in the B2B service provider market Key markets and verticals E. Europe Software Digital IT Development Marketing Support Market opportunity Services $40B $25B $55B $160B $150B $430B $8
Slide 52: Supporting service providers like Accentline
Supporting service providers like Accentline Local transfer Local Bank account APAC Client Payroll Employees Accentline, Philippines Philippines entity account ~70% of Payoneer’s service provider In-network customers’ funds are used via Payoneer’s AP products US Client Local transfer Contractors EU
Slide 53: We are increasing geographic diversity of revenue
We are increasing geographic diversity of revenue Payoneer’s revenue distribution by region China +30% CAGR 33% 24% APAC, SAMEA, and Latin America +45% CAGR $326M $741M of revenue of revenue North America and Europe +23% CAGR 2Q20 LTM 2Q23 LTM Note: 2Q20 LTM represents 7/1/19-6/30/20 and 2Q23 LTM re
Slide 54: Go-to-market flywheel
How we grow: Go-to-market flywheel Adam Cohen, Chief Growth Officer | 54
Slide 55: Efficient, effective acquisition and growth engine
Efficient, effective acquisition and growth engine Brand reputation Global marketplaces and organic traffic and platforms Organic Global and local Customer-driven partnerships growth and referrals Partnerships Sales & Marketing Local and regional sales teams Global and local marketing activities Ada
Slide 56: Partnerships: acquisition at scale
Partnerships: acquisition at scale Marketplace partnerships to Integrated partnerships with Acquisition via enable B2B2C AR flows and local service providers such as drive ICP acquisition global marketplace and Logistic companies, software tools, advertising agencies, etc. local partnerships Amazon,
Slide 57: Sales and marketing: localized relationships
Sales and marketing: localized relationships Adam Cohen, Chief Growth Officer | 57
Slide 58: Organic: network effect
Organic: network effect Google Search Ranking, 20231 Organic acquisition Among our peer set that includes global, well-funded neo banks via Payoneer website, app, and leading fintechs, we consistently rank 1-2, sometimes 3 in existing customers Google Search: Ukraine Israel Vietnam Philippines Argen
Slide 59: Our Ideal Customer Profiles (ICPs)
Who we serve: Our Ideal Customer Profiles (ICPs) Adam Cohen, Chief Growth Officer | 59
Slide 60: Learnings from 2 million active customers
Learnings from 2 million active customers Active customer growth, 2Q20 – 2Q23 +63% growth ~ 2.0M 1.2M 2Q20 2Q23 Note: Active customers represent those who have had activity over the trailing 12-month period (excl. payer only). Adam Cohen, Chief Growth Officer | 60
Slide 61: ICPs are more valuable customers
ICPs are more valuable customers ICPs use more products …stay with us longer… …generate higher ARPU Average number of products by customer size1 Average lifetime by customer size2 LTM ARPU by customer size3 4.4X 197X 1.8X 1.4X 2.6X 12X <$500 $500 – 10K $10K+ <$500 $500 – 10K $10K+ <$500 $500 – 10K $
Slide 62: We drive strong global retention…
We drive strong global retention… 120% Revenue retention rate by region revenue retention for ICPs 134% (June 2022 cohort) 129% 124% 114% 112% 101% LATAM China N. America Europe APAC SAMEA Note: data as of 6/30/23. Adam Cohen, Chief Growth Officer | 62
Slide 63: …and effectively cross-sell
…and effectively cross-sell YoY growth in card adoption with YoY growth in working capital adoption $10K+/month ICPs with $10K+/month ICPs +52% YoY +46% YoY 1H22 1H23 1H22 1H23 Note: data as of 6/30/23. Card adoption represents $10K+/month ICPs who transacted using a Payoneer card product in the res
Slide 64: Compelling customer acquisition cost (CAC) payback on ICPs
We have compelling customer acquisition cost (CAC) payback on ICPs CAC payback duration in months by ICP customer size, June 2022 cohort <12 months 0.6X $500 – 10K $10K+ Note: data as of 6/30/23. Customer size segment refers to the average volume they receive per month. Adam Cohen, Chief Growth Offi
Slide 65: But we're not stopping there
But we’re not stopping there Adam Cohen, Chief Growth Officer | 65
Slide 66: We are introducing greater efficiency to our GTM organization…
We are introducing greater efficiency to our GTM organization… -18% 2023 average Sales & Marketing FTE headcount by quarter Q1 Act Q2 Act Q3 Est Q4 Est Adam Cohen, Chief Growth Officer | 66
Slide 67: …while accelerating acquisition of B2B ICPs…
…while accelerating acquisition of B2B ICPs… B2B $10K+/month ICP acquisition B2B $100K+/month ICP acquisition +19% YoY +17% YoY 1H22 1H23 1H22 1H23 Note: data as of 6/30/23. B2B customer size segment represents monthly volume. Customer size segments refers to the average volume they receive per mont
Slide 68: …and Checkout ICPs
…and Checkout ICPs Number of Checkout ICPs ($10K+/month) 1,000%+ YoY 155 133 121 108 84 67 71 52 33 24 14 19 11 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Adam Cohen, Chief Growth Officer | 68
Slide 69: How we win with our go-to-market approach
How we win with our go-to-market approach Assets Acceleration Ambition • An efficient and effective growth • Focused strategy on ICP, B2B • We serve diverse audience flywheel that consists of global Services, and Checkout to segments, use cases, and and local partnerships, localized accelerate growt
Slide 70: Delivering long-term profitable growth
Delivering long-term profitable growth Bea Ordonez Chief Financial Officer September 21, 2023
Slide 71: We went public in 2021…
We went public in 2021… Bea Ordonez, CFO | 71
Slide 72: …and have delivered strong financial performance
…and have delivered strong financial performance Volume ($B) Revenue ($M) Adjusted EBITDA ($M) 17% CAGR 35% CAGR $628 $95 $61 $57 $473 $44 $399 $346 175% CAGR $48 $32 $28 $6 2020 2021 2022 1H23 2020 2021 2022 1H23 2020 2021 2022 1H23 Note: Please refer to the appendix of this presentation for the re
Slide 73: We have unique assets and infrastructure…
We have unique assets and infrastructure… Scaled platform Localized experience Strong brand • Financial services institution regulated • Virtual account so customers are • ~2M active customers, including across key markets, including US, always local, no matter where they 495K active Ideal Customer
Slide 74: …and operate at global scale
…and operate at global scale Customers in 190+ countries and territories and payments across 7,000+ corridors 11M transactions a month driving $64B of volume over the last 12 months Note: Data as of 6/30/23. Last 12 months represents 7/1/22-6/30/23. Bea Ordonez, CFO | 74
Slide 75: We intend to accelerate growth in B2B and Checkout while protecting marketplace share
We intend to accelerate growth in B2B and Checkout while protecting our marketplace share Audiences Manufacturers ACCELERATION Anticipate ~25% growth in total B2B volume in 2024 Services SMBs B2B yield ~1.5x FAST-GROWING marketplace Goods Anticipate 50%+ growth in merchants Checkout volume in 2024 M
Slide 76: We are successfully capturing additional TAM
We are successfully capturing additional TAM 58% Volume ($B) $64B 3-year CAGR in B2B volume 22% CAGR <1% penetrated in $6T TAM1 11% 11% $35B $0 to $100M 5% 12% of Checkout volume since 2022 launch 78% <1% penetrated in $150B TAM1 84% 2Q20 LTM 2Q23 LTM Marketplace Other B2B Checkout New TAM 1. Source
Slide 77: Our customers entrust us with $5.5 billion
Our customers entrust us with $5.5 billion, which generates significant and recurring revenue Customer funds grew at 2.5X the rate Customer funds ($B) volume since 1Q20 $5.8 $5.5 $5.5 $5.1 $5.0 $4.6 Duration of customer funds has more $4.4 than doubled since 2020 $3.6 $3.7 $3.3 $3.3 $2.6 We would an
Slide 78: Focusing on ICPs and optimizing ARPU to drive revenue growth
We are focusing on ICPs and optimizing ARPU to drive revenue growth Acquire Improve Optimize more ICPs ICP retention ARPU • Prioritize GTM motions on key • Optimize pricing and bundling • Focus on $10K+/month ICPs markets and countries models to drive retention • Leverage data to provide greater • L
Slide 79: Targeting largest ICPs and highest take rate regions
Targeting largest ICPs growth by size (ICPs in thousands) +18% ICPs and highest 44 46 48 50 52 43 YoY take rate regions 423 433 440 441 443 +5% 410 YoY 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 $500-$10K/month ICPs $10K+/month ICPs ICPs growth by region (ICPs in thousands) +13% 222 235 246 256 261 265 YoY +9% 8
Slide 80: Diversified sources of revenue
Diversified sources of revenue Revenue by primary regional market: Revenue from contracts with customers and from other sources: North America Asia-Pacific 14% 13% Revenue recognized at a point in time 74% South Asia, Middle East and North Africa Europe 11% Revenue recognized 11% over time 5% Latin
Slide 81: Optimizing revenue growth via cross-sell and upsell
Optimizing revenue growth via cross-sell and upsell ~2.5% yield on card usage Revenue ($M) $741M 117 bps take rate + ~50 bps yield on B2B volume-in, which also gets 97 monetized when funds leave the account 156 9 Monetization + Significant monetization of customer funds $326M 63 of volume into the p
Slide 82: Our customer-specific monetization strategy
Our customer-specific monetization strategy Increasing adoption of multiple $10K+/month active ICP LTM ARPU products and high value services $6,084 $6,221 $6,555 $7,009 $5,818 $5,949 • Commercial card I M P A C T • Working capital • Checkout 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 $500-$10K/month active ICP L
Slide 83: Driving operating efficiencies and increased profitability
We are driving operating efficiencies and increased profitability Transaction cost as a percentage of revenue Adj. EBITDA ($M) and adj. EBITDA margin (%) 28.1% $95 21.4% 17.6% 13.9% 24% $48 $28 2% 6% 8% $6 2020 2021 2022 1H23 2020 2021 2022 1H23 Note: Please refer to the appendix of this presentatio
Slide 84: Significant additional upside to unlock further operational efficiencies
Significant additional upside to unlock further operational efficiencies As a % of LTM total operating expenses Variable Opportunity to leverage Transaction costs 16% expenses scale to drive greater Partner commissions 4% (20%) economics over time 40% Employee compensation Opportunity for further Co
Slide 85: Strong cash flow generation and significant cash on hand
Our strong cash flow generation and significant cash on hand are a strategic advantage Operating cash flows ($M) $581M >100% + $84 Cash and cash Free cash flow equivalents conversion1 $60 $19 $10 2020 2021 2022 1H 2023 Note: data as of 6/30/23. 1. For the period 1/1/23-6/30/23. Bea Ordonez, CFO | 85
Slide 86: Priorities for use of cash
Priorities for use of cash Accelerating our M&A Capital product roadmap management • Enhanced B2B capabilities (e.g., • Product acceleration • Target ~$50M of share repurchases accounting ERP integrations, role • Software and services to manage in 2023 to offset dilution from stock- management) cash
Slide 87: Our roadmap to profitable growth
Our roadmap to profitable growth 20231 Medium-term Long-term (1-3 years) (3+ years) 31% Mid-teens 20%+ revenue growth revenue growth revenue growth 20% 25% 25%+ Adjusted EBITDA margin Adjusted EBITDA margin Adjusted EBITDA margin 1. Represents the mid-point of the guidance provided on August 8, 2023
Slide 88: Payoneer is positioned to win
Significant opportunity with 80M SMBs and a $6T market Unique assets and infrastructure built over 18 years: Payoneer scaled platform, localized experience, strong brand is positioned Robust balance sheet and strong cash flow generation to win Experienced management team of industry leaders Compelli
Slide 89: Appendix
OPayoneer INVESTOR DAY 2023 September 21, 2023
Slide 90: Reconciliation of net income (loss) to adjusted EBITDA
Reconciliation of net income (loss) to adjusted EBITDA Twelve months ended, Six months ended, Dec. 31, 2020 Dec. 31, 2021 Dec. 31, 2022 June 30, 2023 Net income (loss) $ (23,746) $ (33,987) $ (11,970) $ 53,487 Depreciation & amortization 17,095 17,997 20,858 11,948 Taxes on income 8,320 8,711 13,586
Slide 91: Our team here today
Our team here today: John Caplan Assaf Ronen Adam Cohen Bea Ordonez Chief Executive Chief Platform Chief Growth Chief Financial Officer Officer Officer Officer Kevin Ambrosini Elana Brickner Erica Chan Tsafi Goldman Arnon Kraft Jody Perla Micheal Sheehy Michelle Wang SVP, Corporate Chief People SVP,
Slide 92: Thank you Q&A
Thank you + Q&A September 21, 2023