Payoneer Reports First Quarter 2024 Financial Results
Record quarterly revenue, up 19% year-over-year, driven by strong growth across the entire platform
21% volume growth, including 33% B2B volume growth
First Quarter 2024 Financial Highlights
($ in mm) |
1Q 2023 |
2Q 2023 |
3Q 2023 |
4Q 2023 |
1Q 2024 |
YoY
Change |
||||||
Revenue ex. interest income |
|
|
|
|
|
|
|
|
|
|
15% |
|
Interest income |
50.1 |
|
55.3 |
|
60.4 |
|
64.9 |
|
65.3 |
|
30% |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
19% |
|
Transaction costs as a % of revenue |
14.1% |
|
13.8% |
|
14.6% |
|
16.2% |
|
14.9% |
|
80 bps |
|
Net income |
|
|
|
|
|
|
|
|
|
|
265% |
|
Adjusted EBITDA |
38.8 |
|
56.0 |
|
58.2 |
|
52.2 |
|
65.2 |
|
68% |
|
|
|
|
|
|
|
|
|
|
|
|
||
Operational Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
Volume ($bn) |
|
|
|
|
|
|
|
|
|
|
21% |
|
Active Ideal Customer Profiles (ICPs) ('000s)1 |
491 |
|
495 |
|
502 |
|
516 |
|
530 |
|
8% |
|
Revenue as a % of volume ("Take Rate") |
125 bps |
|
135 bps |
|
127 bps |
|
118 bps |
|
124 bps |
|
-1 bps |
|
SMB customer take rate2 |
104 bps |
|
110 bps |
|
107 bps |
|
100 bps |
|
108 bps |
|
4 bps |
1. |
|
Active ICPs are defined as customers with a Payoneer Account that have on average over |
2. |
|
SMB customer take rate represents revenue from SMBs who sell on marketplaces, B2B SMBs, and Merchant Services, divided by the associated volume from each respective channel. |
“Payoneer delivered record quarterly revenue and strong profitability in the first quarter, driven by growth across all channels, including faster growth in our higher take rate B2B and Merchant Services businesses,” said
First Quarter 2024 Business Highlights
-
8% active ICP growth, including 13% growth in larger ICPs who have on average over
$10,000 per month in volume -
21% volume growth year-over-year reflects:
-
B2B volume of
$2.2 billion increased 33% year-over-year, driven by strong acquisition, improved ability to support more industries, and continued enhancements to our product features and functionality -
Merchant Services (Checkout) volume of
$92 million increased 217% year-over-year driven by strong acquisition of $10K+ customers -
Marketplace volume of
$11.0 billion increased 13% year-over-year led by continued strength from large ecommerce platforms -
Enterprise payouts volume of
$5.1 billion increased 34% year-over-year, led by the travel vertical where we increased the number of routes we serve compared to a year ago
-
B2B volume of
-
$1.1 billion of spend onPayoneer cards, up 34% year-over-year, as we continue to successfully cross-sell our card product to customers -
$5.9 billion of customer funds as ofMarch 31, 2024 , up 8% year-over-year -
$51 million of share repurchases at a weighted average price of$4.84
2024 Guidance
“Payoneer’s first quarter results reflect strong growth across our entire platform. We delivered 21% growth in revenue excluding interest income and normalizing for the
2024 guidance is as follows:
|
|
|
|
|
||
|
|
Revenue |
|
|
|
|
|
|
Transaction costs |
~17.5% of revenue |
|
|
|
|
|
Adjusted EBITDA (1) |
|
|
|
|
|
|
|
|
|
|
|
(1) Guidance for fiscal year, where adjusted, is provided on a non-GAAP basis, which |
Webcast
About
Forward-Looking Statements
This press release includes, and oral statements made from time to time by representatives of
Financial Information; Non-GAAP Financial Measures
Some of the financial information and data contained in this press release, such as adjusted EBITDA, have not been prepared in accordance with
Non-GAAP measures include the following item:
Adjusted EBITDA: We provide adjusted EBITDA, a non-GAAP financial measure that represents our net income (loss) adjusted to exclude, as applicable: M&A related expense (income), stock-based compensation expenses, restructuring charges, share in losses (gain) of associated company, loss (gain) from change in fair value of warrants, other financial expense (income), net, taxes on income, and depreciation and amortization.
Other companies may calculate the above measure differently, and therefore Payoneer’s measures may not be directly comparable to similarly titled measures of other companies.
In addition, in this earnings release, we reference volume, which is an operational metric. Volume refers to the total dollar value of transactions successfully completed or enabled by our platform, not including orchestration transactions. For a customer that both receives and later sends payments, we count the volume only once. Note: as disclosed in the Company’s Form 10-K filed with the
TABLE - 1 | |||||||||
|
|||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) | |||||||||
( |
|||||||||
Three months ended |
|||||||||
2024 |
2023 |
||||||||
Revenues | $ |
228,183 |
|
$ |
192,014 |
|
|||
Transaction costs (Exclusive of depreciation and amortization shown separately below and inclusive of |
33,966 |
|
27,081 |
|
|||||
Other operating expenses |
40,283 |
|
40,095 |
|
|||||
Research and development expenses |
32,051 |
|
29,280 |
|
|||||
Sales and marketing expenses |
49,890 |
|
47,826 |
|
|||||
General and administrative expenses |
24,209 |
|
26,681 |
|
|||||
Depreciation and amortization |
9,408 |
|
6,039 |
|
|||||
Total operating expenses |
189,807 |
|
177,002 |
|
|||||
Operating income |
38,376 |
|
15,012 |
|
|||||
Financial income (expense): | |||||||||
Gain (loss) from change in fair value of Warrants |
1,761 |
|
(252 |
) |
|||||
Other financial income, net |
2,747 |
|
2,350 |
|
|||||
Financial income, net |
4,508 |
|
2,098 |
|
|||||
Income before taxes on income |
42,884 |
|
17,110 |
|
|||||
Taxes on income |
13,910 |
|
9,172 |
|
|||||
Net income | $ |
28,974 |
|
$ |
7,938 |
|
|||
Other comprehensive income (loss) | |||||||||
Unrealized loss on available-for-sale debt securities, net |
(1 |
) |
— |
|
|||||
Unrealized gain on cash flow hedges, net |
34 |
|
— |
|
|||||
Tax expense on unrealized gains on cash flow hedges, net |
(6 |
) |
— |
|
|||||
Other comprehensive income, net of tax |
27 |
|
— |
|
|||||
Comprehensive income | $ |
29,001 |
|
$ |
7,938 |
|
|||
Per Share Data | |||||||||
Net income per share attributable to common stockholders — Basic earnings per share | $ |
0.08 |
|
$ |
0.02 |
|
|||
— Diluted earnings per share | $ |
0.08 |
|
$ |
0.02 |
|
|||
Weighted average common shares outstanding — Basic |
359,306,195 |
|
360,220,161 |
|
|||||
Weighted average common shares outstanding — Diluted |
378,715,301 |
|
388,308,279 |
|
Disaggregation of revenue
The following table presents revenue recognized from contracts with customers as well as revenue from other sources:
Three months ended |
||||||
2024 |
2023 |
|||||
Revenue recognized at a point in time | $ |
159,796 |
$ |
131,892 |
||
Revenue recognized over time |
662 |
7,844 |
||||
Revenue from contracts with customers | $ |
160,458 |
$ |
139,736 |
||
Interest income on customer balances | $ |
65,268 |
$ |
50,058 |
||
Capital advance income |
2,457 |
2,220 |
||||
Revenue from other sources | $ |
67,725 |
$ |
52,278 |
||
Total revenues | $ |
228,183 |
$ |
192,014 |
The following table presents the Company’s revenue disaggregated by primary regional market, with revenues being attributed to the country (in the region) in which the billing address of the transacting customer is located, with the exception of global bank transfer revenues, where revenues are disaggregated based on the billing address of the transaction funds source.
Three months ended |
||||||
2024 |
2023 |
|||||
Primary regional markets | ||||||
|
$ |
81,358 |
$ |
63,960 |
||
|
43,455 |
38,621 |
||||
|
33,365 |
25,381 |
||||
|
23,010 |
25,536 |
||||
|
23,925 |
19,945 |
||||
|
23,070 |
18,571 |
||||
Total revenues | $ |
228,183 |
$ |
192,014 |
1. |
|
|
2. |
|
No single country included in any of these regions generated more than 10% of total revenue |
3. |
|
|
TABLE - 2 | ||||||||||||||||||||
|
||||||||||||||||||||
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (UNAUDITED) | ||||||||||||||||||||
( |
||||||||||||||||||||
Three months ended | ||||||||||||||||||||
|
||||||||||||||||||||
2024 |
2023 |
|||||||||||||||||||
Net income | $ |
28,974 |
|
$ |
7,938 |
|
||||||||||||||
Depreciation and amortization |
9,408 |
|
6,039 |
|
||||||||||||||||
Taxes on income |
13,910 |
|
9,172 |
|
||||||||||||||||
Other financial income, net |
(2,747 |
) |
(2,350 |
) |
||||||||||||||||
EBITDA |
49,545 |
|
20,799 |
|
||||||||||||||||
Stock based compensation expenses(1) |
15,077 |
|
16,927 |
|
||||||||||||||||
M&A related expense(2) |
2,375 |
|
774 |
|
||||||||||||||||
Loss (gain) from change in fair value of Warrants(3) |
(1,761 |
) |
252 |
|
||||||||||||||||
Adjusted EBITDA | $ |
65,236 |
|
$ |
38,752 |
|
||||||||||||||
Three months ended, | ||||||||||||||||||||
|
|
|
|
|
||||||||||||||||
Net income (loss) | $ |
7,938 |
|
$ |
45,549 |
|
$ |
12,825 |
|
$ |
27,021 |
|
$ |
28,974 |
|
|||||
Depreciation and amortization |
6,039 |
|
5,909 |
|
7,116 |
|
8,750 |
|
9,408 |
|
||||||||||
Taxes on income |
9,172 |
|
5,747 |
|
10,012 |
|
14,272 |
|
13,910 |
|
||||||||||
Other financial income, net |
(2,350 |
) |
(4,318 |
) |
(1,137 |
) |
(3,763 |
) |
(2,747 |
) |
||||||||||
EBITDA |
20,799 |
|
52,887 |
|
28,816 |
|
46,280 |
|
49,545 |
|
||||||||||
Stock based compensation expenses(1) |
16,927 |
|
16,173 |
|
15,330 |
|
17,338 |
|
15,077 |
|
||||||||||
M&A related expense(2) |
774 |
|
498 |
|
1,745 |
|
451 |
|
2,375 |
|
||||||||||
Loss (gain) from change in fair value of Warrants(3) |
252 |
|
(13,586 |
) |
7,799 |
|
(11,824 |
) |
(1,761 |
) |
||||||||||
Restructuring charges(4) |
— |
|
— |
|
4,488 |
|
— |
|
— |
|
||||||||||
Adjusted EBITDA | $ |
38,752 |
|
$ |
55,972 |
|
$ |
58,178 |
|
$ |
52,245 |
|
$ |
65,236 |
|
1. |
|
Represents non-cash charges associated with stock-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense in our business and an important part of our compensation strategy. |
2. |
|
Amounts relate to M&A-related third-party fees, including related legal, consulting and other expenditures. |
3. |
|
Changes in the estimated fair value of the warrants are recognized as gain or loss on the condensed consolidated statements of comprehensive income. The impact is removed from EBITDA as it represents market conditions that are not in our control. |
4. |
|
We initiated a plan to reduce our workforce during the three months ended |
TABLE - 3 | ||||||
|
||||||
EARNINGS PER SHARE (UNAUDITED) | ||||||
( |
||||||
Three months ended |
||||||
2024 |
2023 |
|||||
Numerator: | ||||||
Net income | $ |
28,974 |
$ |
7,938 |
||
Denominator: | ||||||
Weighted average common shares outstanding — | ||||||
Basic |
359,306,195 |
360,220,161 |
||||
Add: | ||||||
Dilutive impact of RSUs, ESPP and options to purchase common stock |
18,725,608 |
27,332,566 |
||||
Dilutive impact of private Warrants |
683,498 |
755,552 |
||||
Weighted average common shares — diluted |
378,715,301 |
388,308,279 |
||||
Net income per share attributable to common stockholders — Basic earnings per share | $ |
0.08 |
$ |
0.02 |
||
Diluted earnings per share | $ |
0.08 |
$ |
0.02 |
||
TABLE - 4 | |||||||||
|
|||||||||
CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||||
( |
|||||||||
|
|
||||||||
2024 |
2023 |
||||||||
Assets: | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ |
587,180 |
|
$ |
617,022 |
|
|||
Restricted cash |
7,907 |
|
7,030 |
|
|||||
Customer funds |
5,920,924 |
|
6,390,526 |
|
|||||
Accounts receivable (net of allowance of |
7,224 |
|
7,980 |
|
|||||
Capital advance receivables (net of allowance of |
52,133 |
|
45,493 |
|
|||||
Other current assets |
40,780 |
|
40,672 |
|
|||||
Total current assets |
6,616,148 |
|
7,108,723 |
|
|||||
Non-current assets: | |||||||||
Property, equipment and software, net |
14,896 |
|
15,499 |
|
|||||
|
19,889 |
|
19,889 |
|
|||||
Intangible assets, net |
82,647 |
|
76,266 |
|
|||||
Restricted cash |
6,025 |
|
5,780 |
|
|||||
Deferred taxes |
16,688 |
|
15,291 |
|
|||||
Severance pay fund |
821 |
|
840 |
|
|||||
Operating lease right-of-use assets |
22,567 |
|
24,854 |
|
|||||
Other assets |
15,804 |
|
15,977 |
|
|||||
Total assets | $ |
6,795,485 |
|
$ |
7,283,119 |
|
|||
Liabilities and shareholders’ equity: | |||||||||
Current liabilities: | |||||||||
Trade payables | $ |
35,295 |
|
$ |
33,941 |
|
|||
Outstanding operating balances |
5,920,924 |
|
6,390,526 |
|
|||||
Other payables |
103,927 |
|
117,508 |
|
|||||
Total current liabilities |
6,060,146 |
|
6,541,975 |
|
|||||
Non-current liabilities: | |||||||||
Long-term debt from related party |
14,429 |
|
18,411 |
|
|||||
Warrant liability |
6,794 |
|
8,555 |
|
|||||
Other long-term liabilities |
52,574 |
|
49,905 |
|
|||||
Total liabilities |
6,133,943 |
|
6,618,846 |
|
|||||
Commitments and contingencies | |||||||||
Shareholders’ equity: | |||||||||
Preferred stock, |
— |
|
— |
|
|||||
Common stock, |
3,773 |
|
3,687 |
|
|||||
|
(108,096 |
) |
(56,936 |
) |
|||||
Additional paid-in capital |
752,236 |
|
732,894 |
|
|||||
Accumulated other comprehensive loss |
(149 |
) |
(176 |
) |
|||||
Retained earnings (accumulated deficit) |
13,778 |
|
(15,196 |
) |
|||||
Total shareholders’ equity |
661,542 |
|
664,273 |
|
|||||
Total liabilities and shareholders’ equity | $ |
6,795,485 |
|
$ |
7,283,119 |
|
TABLE - 5 | ||||||||
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||
( |
||||||||
Three months ended | ||||||||
|
||||||||
2024 |
2023 |
|||||||
Cash Flows from Operating Activities | ||||||||
Net income | $ |
28,974 |
|
$ |
7,938 |
|
||
Adjustment to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization |
9,408 |
|
6,039 |
|
||||
Deferred taxes |
(1,397 |
) |
1,806 |
|
||||
Stock-based compensation expenses |
15,077 |
|
16,927 |
|
||||
Loss (gain) from change in fair value of Warrants |
(1,761 |
) |
252 |
|
||||
Foreign currency re-measurement loss (gain) |
1,541 |
|
(416 |
) |
||||
Changes in operating assets and liabilities: | ||||||||
Other current assets |
(11 |
) |
(8,159 |
) |
||||
Trade payables |
1,465 |
|
(10,090 |
) |
||||
Deferred revenue |
(28 |
) |
323 |
|
||||
Accounts receivable, net |
756 |
|
2,047 |
|
||||
Capital advance extended to customers |
(80,173 |
) |
(71,184 |
) |
||||
Capital advance collected from customers |
73,533 |
|
66,266 |
|
||||
Other payables |
(12,528 |
) |
(10,414 |
) |
||||
Other long-term liabilities |
2,669 |
|
(635 |
) |
||||
Operating lease right-of-use assets |
2,287 |
|
2,335 |
|
||||
Interest and amortization of discount on investments |
(474 |
) |
— |
|
||||
Other assets |
172 |
|
867 |
|
||||
Net cash provided by operating activities |
39,510 |
|
3,902 |
|
||||
Cash Flows from Investing Activities | ||||||||
Purchase of property, equipment and software |
(1,616 |
) |
(1,764 |
) |
||||
Capitalization of internal use software |
(14,055 |
) |
(7,588 |
) |
||||
Severance pay fund distributions, net |
19 |
|
23 |
|
||||
Customer funds in transit, net |
154 |
|
(53,628 |
) |
||||
Purchases of investments in available-for-sale debt securities |
(118,649 |
) |
— |
|
||||
Maturities and sales of investments in available-for-sale debt securities |
20,000 |
|
— |
|
||||
Net cash inflow from acquisition of remaining interest in joint venture |
— |
|
5,953 |
|
||||
Net cash used in investing activities |
(114,147 |
) |
(57,004 |
) |
||||
Cash Flows from Financing Activities | ||||||||
Proceeds from issuance of common stock in connection with stock-based compensation plan, net of taxes paid related to settlement of equity awards |
3,432 |
|
5,865 |
|
||||
Outstanding operating balances, net |
(469,602 |
) |
(371,338 |
) |
||||
Borrowings under related party facility |
5,378 |
|
9,842 |
|
||||
Repayments under related party facility |
(9,360 |
) |
(8,859 |
) |
||||
Common stock repurchased |
(50,961 |
) |
— |
|
||||
Net cash used in financing activities |
(521,113 |
) |
(364,490 |
) |
||||
Effect of exchange rate changes on cash and cash equivalents |
(1,541 |
) |
515 |
|
||||
Net change in cash, cash equivalents, restricted cash and customer funds |
(597,291 |
) |
(417,077 |
) |
||||
Cash, cash equivalents, restricted cash and customer funds at beginning of period |
7,018,367 |
|
6,386,720 |
|
||||
Cash, cash equivalents, restricted cash and customer funds at end of period | $ |
6,421,076 |
|
$ |
5,969,643 |
|
||
Supplemental information of investing and financing activities not involving cash flows: | ||||||||
Property, equipment, and software acquired but not paid | $ |
700 |
|
$ |
400 |
|
||
Internal use software capitalized but not paid | $ |
5,216 |
|
$ |
2,609 |
|
||
Common stock repurchased but not paid | $ |
1,699 |
|
$ |
— |
|
||
Right of use assets obtained in exchange for new operating lease liabilities | $ |
— |
|
$ |
2,298 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240508150929/en/
Investors:
investor@payoneer.com
Media:
PR@payoneer.com
Source: