Payoneer Global Inc. · NASDAQ:PAYO
Payoneer Global — Q4 2024 Earnings Presentation
29 slides from Payoneer Global's earnings presentation, Feb 27, 2025
Slide 1: 4Q 2024 Investor Presentation
4Q 2024 Investor Presentation NASDAQ:PAYO | February 27, 2025
Slide 2: Disclaimers
Disclaimers This presentation does not constitute an offer to sell, a solicitation of an Some of the financial information and data contained in this presentation, similarly titled measures of other companies. offer to buy, or a recommendation to purchase any security. You should such as adjusted EB
Slide 3: Payoneer's mission
Payoneer’s mission: Connect the world’s underserved businesses to a rising, global economy 3
Slide 4: SMBs want to grow globally but transacting across borders is complex
SMBs want to grow globally but transacting across borders is complex, especially from emerging markets Can’t get paid Can’t pay Can’t get capital • My U.S. customers don’t want to send an • I want to match the currencies of my revenue • Why don't local lenders underwrite international money transfer
Slide 5: 80 million underserved SMBs
80 million underserved SMBs Need cross-border, B2B financial solutions designed for small businesses Global Banks Fintech Local banks Underserve small businesses Primarily for P2P, and Underserve cross-border needs with limited geographies Source: Third-party research. 5
Slide 6: Payoneer serves diverse customer types and helps SMBs do business globally
Payoneer serves diverse customer types and helps SMBs in the fastest growing markets do business globally Contractors and Consumer goods Service Goods traders freelancers sellers providers and manufacturers Pedro, Contractor Kevin, Elegoo Hannah, Accentline Serhii, Ukragroenergyinvest Brazil China P
Slide 7: We have unique assets and infrastructure
We have unique assets and infrastructure 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 • Nearly 100 banking providers and payment servi
Slide 8: We are pursuing a $6 trillion opportunity
We are pursuing a $6 trillion opportunity Audiences Manufacturers Services SMBs Goods merchants Contractors / freelancers Payoneer has ~20% share, Payoneer has <0.1% share, Payoneer has <1% share, 12% CAGR (2022-2024) 100%+ growth in 2024 22% CAGR (2022-2024) Marketplace SMB Consumers SMB SMB Busine
Slide 9: Payoneer is the multi-currency financial stack optimized for the global SMB
Payoneer is the multi-currency financial stack optimized for the global SMB Collect accounts receivable Access opportunity globally Manage accounts payable B2B invoice Payoneer card B2B load funds Financial stack Withdraw money for global SMBs to bank account Marketplace payout Manage and optimize f
Slide 10: ~2M customers use our cross-border AR, cash management, and AP solutions
~2M customers use our cross-border accounts receivable, cash management, and accounts payable solutions Accounts Receivable Cash Management Accounts Payable B2B invoice Treasury Payoneer card B2B load funds Currency management Withdraw to bank account Marketplace payout Intranetwork payments Pay ven
Slide 11: 18% volume growth in 4Q 2024 driven by diverse channels
18% volume growth in 4Q 2024 driven by the diverse channels our customers sell through Enterprise volume direct to SMB customer volume into Payoneer Accounts bank account Marketplace: B2B: Merchant services (Checkout): Enterprise payouts: Defend our market leading Accelerate growth in a massive Expa
Slide 12: Significant volume growth with B2B as key growth engine
Significant volume growth with B2B as key growth engine Total volume SMBs that sell on marketplaces volume B2B volume 25% 57% 21% 22% 18% 40% 16% 17% 33% 37% 15% 14% 12% 13% $3.0 11% $22.5 $2.8 9% 13% 7% 7% $13.4 $20.4 $2.5 $12.0 1% $2.2 $19.0 $11.8 (2%) $2.2 $18.5 $18.7 $11.4 $11.0 $10.3 $1.8 $1.8
Slide 13: Customer funds balances continue to grow, reduced sensitivity to interest rates
Customer funds balances continue to grow and we have reduced our sensitivity to interest rate fluctuations • $257M of interest income earned on customer Interest Income Earned on Customer Funds funds in FY 2024 Average Effective Federal Funds Rate: • 80%+ of customer funds are interest-bearing 2.2%
Slide 14: Proven track record of cross-selling our AP capabilities
Proven track record of cross-selling our accounts payable (AP) capabilities Usage by number of products used by a customer 36% 34% 33% 32% 32% 30% 31% 29% 28% 28% Larger SMBs have more 1 AP product 38% 38% complex AP needs. 21% 22% 20% 20% 20% 22% 22% 20% As we enhance our 22% 2 AP products 22% 22%
Slide 15: We are focused on our Ideal Customer Profiles (ICPs)
We are focused on our Ideal Customer Profiles (ICPs) because they represent the vast majority our revenue Customers % of total revenue 55K >50% $10K+/month ICPs 560K Active ICPs1 505K ~25% $500-$10K/month ICPs Active non-ICPs 1.4M <10% <$500/month non-ICPs 2M active customers ~90% + Enterprise payou
Slide 16: Acquiring and retaining more ICPs and optimizing ARPU
We are acquiring and retaining more ICPs and optimizing ARPU Acquire and retain more ICPs (‘000s) Optimize ARPU ($) Total active customers (M): 560 1.96 2.01 8% 516 18% $103 $94 $322 +22% $265 YoY 4Q23 4Q24 4Q23 4Q24 Interest income per active customer Active customer ARPU (excluding interest income
Slide 17: Our ICPs are diversified across regions and by size
Our ICPs are diversified across regions and by size Active ICPs by region (‘000s) Active ICPs by size (‘000s) 560 560 (1%) 516 78 516 55 YoY* 67 55 +13% 174 YoY in higher 156 take rate regions 98 109 505 +10% 461 YoY 166 165 29 33 4Q23 4Q24 4Q23 4Q24 N. America EMEA China APAC LATAM $500-$10K / mont
Slide 18: Revenue growth reflects strong momentum across our business
Revenue growth reflects strong momentum across our business Total Revenue ($M) Revenue excluding interest income ($M) 17% $262 $201 $248 $240 $183 $228 $174 $224 $159 $163 26% 24% 15% 15% 8% 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24 3Q24 4Q24 Year-over-year growth rate 18
Slide 19: Consistently expanding our SMB take rate
Consistently expanding our SMB take rate, driven by monetization initiatives and mix shift toward higher take rate products and regions 23 bps expansion of SMB customer take rate since 2021 1.10% 1.11% 1.09% 1.08% 1.09% 1.09% 1.06% 1.07% 1.03% 1.04% 1.00% 0.97% 0.96% 0.95% 0.90% 0.86% 1Q21 2Q21 3Q21
Slide 20: Managing transaction costs and delivering operating leverage
We are managing transaction costs and delivering operating leverage Transaction cost as a percentage of revenue Adj. EBITDA ($M) and adj. EBITDA margin (%) 16.2% 16.5% 14.9% 15.4% 15.3% $73 $69 $65 $63 30% $52 29% 28% 23% 24% 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24 3Q24 4Q24 Note: Please refer to th
Slide 21: Our strategy for profitable growth
Our strategy for profitable growth Efficient go-to-market Comprehensive financial Optimized operations and approach for ICP stack for ARPU growth capital allocation acquisition and retention and TAM capture Adj. EBITDA ($M) and adj. EBITDA margin (%) + + 28% Organic 25% Partnerships $271 $205 8% 6%
Slide 22: Strong cash flow generation enables returning capital to shareholders
Our strong cash flow generation enables us to return capital to shareholders and maintain strategic flexibility Operating cash flows ($M) $177M $137M $497M $177 $159 Operating Share Cash and cash cash flows1 repurchases1 equivalents $84 $20 2021 2022 2023 2024 Data as of December 31, 2024. 1. For th
Slide 23: 2025 full year guidance
2025 full year guidance as of February 27, 2025 $1,040-1,050M ~18.0% $255 - 265M Revenue Transaction costs as a % of Adjusted EBITDA1 revenue 1. Please refer to “Non-GAAP Financial Measures” in slide 2 of this presentation. Guidance for fiscal year, where adjusted, is provided on a non-GAAP basis, w
Slide 24: Our roadmap to profitable growth
Our roadmap to profitable growth . Medium-term Long-term (Through 2026) (Beyond 2026) Mid-teens 20%+ Revenue growth Revenue growth 25% 25% Adjusted EBITDA margin Adjusted EBITDA margin 24
Slide 25: Appendix
Appendix OPayoneer
Slide 26: Volume and revenue trends
Volume and revenue trends Volume ($M) 4Q23 1Q24 2Q24 3Q24 4Q24 YoY QoQ SMBs that sell on marketplaces $11,777 $11,002 $11,403 $11,983 $13,448 14% 12% B2B SMBs 2,156 2,232 2,467 2,802 2,952 37% 5% Merchant services 102 92 119 153 218 114% 43% Continued strong B2B volume growth SMB customer volume $14
Slide 27: ICP and revenue by region trends
ICP and revenue by region trends Active ICPs ('000s) 4Q23 1Q24 2Q24 3Q24 4Q24 YoY QoQ By size: $500-$10K/month 461 473 492 503 505 10% 0% $10K+/month 55 57 55 54 55 -1% 1% Total 516 530 547 557 560 8% 1% Year-over-year volume growth by customer size: $500-$10K/month 5% 8% 10% 11% 11% 600 bps 0 bps $
Slide 28: Reconciliation of net income (loss) to adjusted EBITDA
Reconciliation of net income (loss) to adjusted EBITDA Twelve months ended, ($ in thousands) Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2024 Net income (loss) $ (11,970) $ 93,333 $ 121,163 Depreciation & amortization 20,858 27,814 47,296 Income taxes 13,586 39,203 18,308 Other financial (income) expense,
Slide 29: Thank You
Thank You