Payoneer Global Inc. · NASDAQ:PAYO
Payoneer Global — Q1 2025 Earnings Presentation
27 slides from Payoneer Global's earnings presentation, May 7, 2025
Slide 1: 1Q 2025 Investor Presentation
1Q 2025 Investor Presentation NASDAQ:PAYO | May 7, 2025
Slide 2: Disclaimers
Disclaimers This presentation does not constitute an offer to sell, a solicitation of an Non-GAAP Financial Measures Other companies may calculate the above measure differently, and offer to buy, or a recommendation to purchase any security. You should therefore Payoneer’s measures may not be direct
Slide 3: Payoneer's mission
Payoneer’s mission: Take the complexity out of doing Connect the world’s business globally for SMBs cross-border Serve diverse customer types in over 190+ countries and territories businesses to a rising, global economy Compelling financial profile positioned to generate long term profitable growth
Slide 4: 3-act journey to be the comprehensive financial stack for global SMBs
3-act journey to be the comprehensive financial stack for global SMBs 2005-2017 1. Founded to simplify cross-border payments and became one of the leading payment providers for SMBs selling on marketplaces 2018-2024 Expanded into B2B payments, leveraging 2. existing scaled global infrastructure, and
Slide 5: Delivering strong, profitable growth since going public in 2021
Delivering strong, profitable growth since going public in 2021 Volume ($B) Customer funds ($B) Revenue ($M) Adjusted EBITDA1 ($M) 27% 113% CAGR $978 CAGR $271 17% 13% CAGR $7.0 CAGR $80 $55 $4.4 $473 $28 2021 2024 2021 2024 2021 2024 2021 2024 1. Please refer to the appendix of this presentation fo
Slide 6: Our strategy for growth
Our strategy for growth Description 2024 performance Prioritize the customers Targeted GTM strategy to acquire and retain our ideal ✓ +8% ICP growth we can have the customer profile (ICPs) ✓ Increasing focus on our largest customers with greatest ARPU potential greatest impact on Expand where custom
Slide 7: Our business is highly diversified
Our business is highly diversified $978M of 2024 Revenue Latin B2B Other1 America Invoicing 1% Other3 5% B2B SMBs2 10% 14% 19% North EMEA Interest America 26% income 10% 26% Send to bank account 31% Merchant By customer By customer Interest income By product Services type region 26% 2% APAC 19% Ente
Slide 8: We take the complexity out of cross-border payments
We take the complexity out of cross-border payments Customers can access a comprehensive financial stack through their Payoneer Account Accounts Receivable Cash Management Accounts Payable B2B invoice Checkout FX capabilities Payoneer card Marketplace payout Load funds Hold multi-currency balances P
Slide 9: We acquire and serve customers in 190+ countries and territories
We acquire and serve customers in 190+ 5 35+ countries and territories Reported Countries with regions on-the-ground presence North America EMEA Greater China 556K Ideal Customer Profiles (ICPs) 29% 20% 6% of total ICPs of total ICPs of total ICPs Customer success Latin APAC 100+ managers speaking 2
Slide 10: We serve 3 diverse customer segments
We serve 3 diverse customer segments B2B SMBs SMBs that sell on Enterprise payouts marketplaces “One of the reasons I really like working with “Amazon is unable to pay funds directly into a “We wanted to find a solution that would Payoneer is that as I grow my own business, Thai bank account, so we
Slide 11: We focus on our Ideal Customer Profiles (ICPs)
We focus on our Ideal Customer Profiles (ICPs) because they represent the vast majority our revenue Customers % of total revenue 53K >50% $10K+/month ICPs 556K Active ICPs1 503K ~25% $500-$10K/month ICPs Active non-ICPs 1.4M <10% <$500/month non-ICPs ~2M active customers ~90% + Enterprise payouts ~1
Slide 12: Driving growth in our highest take rate regions
Driving growth in our highest take rate regions Active ICPs by region (‘000s) Revenue growth by region 556 76 453 37% 52 +13% CAGR 173 in higher take rate regions 122 28% 25% 160 166 16% 112 86 27 35 1Q22 1Q25 5% N. America China EMEA APAC LATAM LATAM APAC China EMEA N. America ~1% take rate ~2.5% t
Slide 13: Strong momentum cross-selling our accounts payable capabilities
Strong momentum cross-selling our accounts payable (AP) capabilities Usage by number of products used by a customer 34% 33% 32% 32% 30% 31% 29% 28% 28% 28% Larger SMBs have more 1 AP product 38% 38% 36% complex AP needs. 21% 22% 20% 20% 20% 22% 22% 20% 21% As we enhance our 22% 2 AP products 22% 22%
Slide 14: Delivering significant ARPU expansion
Delivering significant ARPU expansion $425 $322 Strategy to $359 +21% $265 expand ARPU +9% Growth in ARPU ex. interest • GTM strategy targeting $265 Growth in ARPU larger ICPs $243 ex. interest • Drive faster growth in high value businesses and products such as B2B and card $103 • Execute pricing in
Slide 15: 16 bps expansion of SMB customer take rate since 2022
16 bps expansion of SMB customer take rate since 2022 +16 bps 1.19% 1.10% 1.11% 1.09% 1.09% 1.08% 1.09% 1.06% 1.07% 1.03% 1.04% 1.00% 0.97% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 4Q ecomm seasonality Note: SMB take rate represents volume from SMB customers (SMBs that sell o
Slide 16: We have $6.6B in customer funds earning high margin interest income
We have $6.6B in customer funds earning high margin interest income • $6.6B in customer funds, reflecting the trust of our Interest Income Earned on Customer Funds customers and the utility of our platform Average Effective Federal Funds Rate: • $257M of interest income earned on customer 2.2% 0.4%
Slide 17: Our strong balance sheet and cash flow generation enable us to invest for growth
Our strong balance sheet and cash flow generation enable us to invest for growth and return capital to shareholders Cash & equivalents and debt ($M) Operating cash flow ($M) Share repurchases and stock-based compensation ($M) $177 $159 $617 $543 $121 $137 $497 $93 $84 $66 $65 $52 $57 ($12) $16 $18 $
Slide 18: Investment opportunity based on 3 key pillars
Investment opportunity based on 3 key pillars Significant opportunity to be the partner for the world’s cross-border businesses A high growth, increasingly profitable SMB business that is supported by differentiated assets and infrastructure built over 20 years Robust balance sheet and strong cash f
Slide 19: 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 19
Slide 20: 1Q25 Financial Results
1025 Financial Results OPayoneer
Slide 21: We are delivering profitable growth
We are delivering profitable growth Total Revenue Total Adjusted EBITDA Strong SMB customer Stable profitability despite growth partially offset by $7M lower interest income lower interest income $73 $69 Adjusted $262 $65 $63 $65 EBITDA $240 $248 $247 29% 30% 28% 27% $228 24% Adjusted EBITDA margin
Slide 22: Volume and revenue trends
Volume and revenue trends Volume ($M) 1Q24 2Q24 3Q24 4Q24 1Q25 YoY QoQ SMBs that sell on marketplaces $11,002 $11,403 $11,983 $13,448 $11,373 3% -15% Growth impacted by timing of holiday payouts B2B SMBs 2,232 2,467 2,802 2,952 2,708 21% -8% Merchant services 92 119 153 218 173 88% -21% Faster growt
Slide 23: ICP and revenue by region trends
ICP and revenue by region trends Active ICPs ('000s) 1Q24 2Q24 3Q24 4Q24 1Q25 YoY QoQ By size: $500-$10K/month 473 492 503 505 503 6% -1% $10K+/month 57 55 54 55 53 -7% -3% Total 530 547 557 560 556 5% -1% Year-over-year volume growth by customer size: $500-$10K/month 8% 10% 11% 11% 3% -500 bps -800
Slide 24: 2025 Outlook
2025 Outlook • Given the current macroeconomic uncertainty, Payoneer is suspending its previously issued full-year 2025 guidance. • There are a broad range of potential outcomes and as a company supporting cross-border businesses that may be negatively impacted, we face substantial risks which could
Slide 25: Appendix
Appendix OPayoneer
Slide 26: Reconciliation of net income (loss) to adjusted EBITDA
Reconciliation of net income (loss) to adjusted EBITDA Twelve months ended, ($ in thousands) Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2024 1. Represents non-cash charges associated with stock-based compensation expense, which has been, and will continue to be for the foreseeable future, Ne
Slide 27: Thank You
Thank You