Slide 1: Q1'23 Earnings Supplement
Q1’23 Earnings Supplement Nasdaq: PAYO May 9, 2023
Slide 2: Disclaimers
Disclaimers This presentation does not constitute an offer to sell, a solicitation of by any person that the forward-looking statements set forth herein will Payoneer’s business. an offer to buy, or a recommendation to purchase any security. You be achieved or that any of the contemplated results of
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 highest growth emerging markets do business globally
Payoneer helps SMBs in the highest growth emerging markets do business globally Money In Money On Money Out Accounts Global multi- Accounts receivable currency wallet payable Delivering strong growth and increasing profitability Active Ideal Customer Profiles customer countries of LTM volume, highli
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 High Value industry SMBs, particularly market approach Services drives relationships, and with in and presence customer loyalty regulatory and netwo
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 Spain Mexico 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 New in 1Q23 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 re
Slide 8: 1Q'23 financial results
1Q’23 financial results Revenue Volume Adjusted Net Income EBITDA (loss) Data as of 3/31/23. 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 Q1’23 by an $837M increase in customer funds revenue and rising interest rates $192 growth YoY • increase in active ICPs1 • volume growth driven by recovery in travel and stability in ecommerce $137 • revenue growth
Slide 10: Continued geographic diversification
Continued geographic diversification Revenues by geography 5… 0… 6 9… 0 0.31… of revenues from of revenues from higher growth 0… higher growth 2… and take rate and take rate regions regions 0… 0… 2018 1Q’23 LTM Greater China Europe North America Asia Pacific South Asia, Middle East & Africa Latin Am
Slide 11: Focusing on Ideal Customer Profiles
Focusing on Ideal Customer Profiles Active ICPs1 (‘000s) • Announced in February 2023 shifting acquisition and service model towards active 491 • Growing & fastest growth in active ICPs in Latin America and SAMEA 453 • Growing larger ICPs faster than overall active ICPs y/y growth in $120,000+ annua
Slide 12: Scaling High Value Services
Scaling High Value Services Money In Manage funds and liquidity Money Out is bringing more volume and stable even as we driving strong, new customers lower risk tolerance due to macro higher take rate, growth uncertainty $7.1 $7.2 $903 $345 $813 $5.2 $251 $242 12% 12% 9% 2.9% 3.5% 3.5% $259 2.2% 2.7
Slide 13: Customers trust Payoneer
Customers trust Payoneer Customer funds ($B) of customer funds are interest-bearing $5.5 of customer funds are concentrated with U.S. domestic financial institutions $4.6 of customer funds are denominated in U.S. dollars of balances are currently held in cash deposits 1Q22 1Q23 Data as of 3/31/23. 1
Slide 14: Increasing profitability and focus on driving further operating efficiencies
Increasing profitability and focus on driving further operating efficiencies Transaction cost as a percentage of revenue Adjusted EBITDA ($M) 18.7% $39 17.7% 17.6% 16.6% 14.1% $15 $13 $10 $11 20% 8% 10% 8% 6% 1Q22 2Q22 3Q22 4Q22 1Q23 1Q22 2Q22 3Q22 4Q22 1Q23 Adjusted EBITDA Margin Note: Please refer
Slide 15: Investing to build next generation technology platform
Investing to build next generation technology platform 2023: Focusing on new customer onboarding platform Launch new Multi-year investment to in development onboarding platform in build initial markets Q1’23 End of 2024 and 2023 beyond Expected timeline 15
Slide 16: 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 17: 2023 full year guidance
2023 full year guidance 2023 Guidance as of May 9, 2023: Revenue Transaction costs as a Adjusted EBITDA 1 % 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 re
Slide 18: Long-term target business model
Long-term target business model Illustrative long-term targets Revenue growth Adjusted EBITDA margin 18
Slide 19: Appendix
Appendix 19
Slide 20: Reconciliation of net income (loss) to adjusted EBITDA
Reconciliation of net income (loss) to adjusted EBITDA Three months ended, Mar. 31, 2022 June 30, 2022 Sept. 30, 2022 Dec. 31, 2022 Mar. 31, 2023 Net income (loss) $ 20,211 $ 4,422 $ (26,452) $ (10,151) $ 7,938 Depreciation & amortization 4,455 5,171 5,899 5,333 6,039 Taxes on income 1,967 1,374 2,6
Slide 21: Thank you.
Thank you. payoneer.com