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Payoneer Reports Fourth Quarter and Full Year 2024 Financial Results

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Payoneer (NASDAQ: PAYO) reported strong financial results for Q4 and full year 2024, achieving record annual volume of $80 billion, representing 21% year-over-year growth. The company demonstrated robust performance with 18% annual revenue growth, driven by significant B2B volume expansion of 42% year-over-year.

Key highlights include $7.0 billion in customer funds (up 9% YoY), record card spending of $1.5 billion in Q4 (up 36% YoY), and strategic acquisition of Skuad to enhance SMB financial services. The company completed $137 million in share repurchases at $5.50 average price and redeemed all public warrants for $21 million.

Notable growth metrics include B2B volume reaching $3.0 billion (37% YoY increase), marketplace SMB volume of $13.4 billion (14% YoY increase), and Merchant Services volume of $218 million (114% YoY increase). The company also received regulatory approvals for its China-based payment service provider acquisition, expected to close in H1 2025.

Payoneer (NASDAQ: PAYO) ha riportato risultati finanziari solidi per il Q4 e l'intero anno 2024, raggiungendo un volume annuale record di 80 miliardi di dollari, con una crescita del 21% rispetto all'anno precedente. L'azienda ha dimostrato prestazioni robuste con una crescita annuale del fatturato del 18%, trainata da un'espansione significativa del volume B2B del 42% anno su anno.

I punti salienti includono 7,0 miliardi di dollari in fondi dei clienti (in aumento del 9% rispetto all'anno precedente), spese con carta record di 1,5 miliardi di dollari nel Q4 (in aumento del 36% rispetto all'anno precedente), e l'acquisizione strategica di Skuad per migliorare i servizi finanziari per le PMI. L'azienda ha completato riacquisti di azioni per 137 milioni di dollari a un prezzo medio di 5,50 dollari e ha riscattato tutti i warrant pubblici per 21 milioni di dollari.

I metriche di crescita notevoli includono un volume B2B che ha raggiunto 3,0 miliardi di dollari (aumento del 37% rispetto all'anno precedente), volume delle PMI nel marketplace di 13,4 miliardi di dollari (aumento del 14% rispetto all'anno precedente) e volume dei Servizi Merchant di 218 milioni di dollari (aumento del 114% rispetto all'anno precedente). L'azienda ha anche ricevuto approvazioni normative per l'acquisizione del fornitore di servizi di pagamento con sede in Cina, prevista per chiudere nel primo semestre del 2025.

Payoneer (NASDAQ: PAYO) reportó resultados financieros sólidos para el cuarto trimestre y el año completo 2024, alcanzando un volumen anual récord de 80 mil millones de dólares, lo que representa un crecimiento del 21% interanual. La compañía demostró un rendimiento robusto con un crecimiento de ingresos anuales del 18%, impulsado por una expansión significativa del volumen B2B del 42% interanual.

Los puntos destacados incluyen 7.0 mil millones de dólares en fondos de clientes (un aumento del 9% interanual), un gasto récord con tarjetas de 1.5 mil millones de dólares en el cuarto trimestre (un aumento del 36% interanual) y la adquisición estratégica de Skuad para mejorar los servicios financieros para las pymes. La compañía completó recompra de acciones por 137 millones de dólares a un precio promedio de 5.50 dólares y redimió todos los warrants públicos por 21 millones de dólares.

Las métricas de crecimiento notables incluyen un volumen B2B que alcanzó 3.0 mil millones de dólares (un aumento del 37% interanual), un volumen de pymes en el marketplace de 13.4 mil millones de dólares (un aumento del 14% interanual) y un volumen de Servicios Comerciales de 218 millones de dólares (un aumento del 114% interanual). La compañía también recibió aprobaciones regulatorias para su adquisición de un proveedor de servicios de pago con sede en China, que se espera cierre en el primer semestre de 2025.

Payoneer (NASDAQ: PAYO)는 2024년 4분기 및 전체 연도에 대한 강력한 재무 결과를 보고하며 800억 달러의 연간 기록 거래량을 달성했습니다. 이는 전년 대비 21% 성장한 수치입니다. 이 회사는 연간 수익 18% 성장을 기록하며, B2B 거래량이 전년 대비 42% 증가한 것이 주요 요인입니다.

주요 하이라이트로는 고객 자금 70억 달러(전년 대비 9% 증가), 4분기 카드 지출 기록 15억 달러(전년 대비 36% 증가), 중소기업 금융 서비스를 강화하기 위한 Skuad의 전략적 인수가 포함됩니다. 이 회사는 평균 가격 5.50달러에 1억 3,700만 달러의 자사주 매입을 완료하고, 2,100만 달러의 모든 공공 워런트를 상환했습니다.

주목할 만한 성장 지표로는 B2B 거래량이 30억 달러에 도달(전년 대비 37% 증가), 마켓플레이스 중소기업 거래량이 134억 달러(전년 대비 14% 증가), 상인 서비스 거래량이 2억 1,800만 달러(전년 대비 114% 증가)입니다. 이 회사는 또한 중국에 본사를 둔 결제 서비스 제공업체 인수에 대한 규제 승인을 받았으며, 이는 2025년 상반기 중에 마무리될 예정입니다.

Payoneer (NASDAQ: PAYO) a annoncé des résultats financiers solides pour le quatrième trimestre et l'année complète 2024, atteignant un volume annuel record de 80 milliards de dollars, représentant une croissance de 21 % par rapport à l'année précédente. L'entreprise a démontré une performance robuste avec une croissance des revenus annuels de 18 %, soutenue par une expansion significative du volume B2B de 42 % d'une année sur l'autre.

Les points saillants incluent 7,0 milliards de dollars en fonds clients (en hausse de 9 % par rapport à l'année précédente), des dépenses record sur carte de 1,5 milliard de dollars au quatrième trimestre (en hausse de 36 % par rapport à l'année précédente) et l'acquisition stratégique de Skuad pour améliorer les services financiers des PME. L'entreprise a réalisé des rachats d'actions pour un montant de 137 millions de dollars à un prix moyen de 5,50 dollars et a racheté tous les bons de souscription publics pour 21 millions de dollars.

Les indicateurs de croissance notables incluent un volume B2B atteignant 3,0 milliards de dollars (augmentation de 37 % par rapport à l'année précédente), un volume de marché pour les PME de 13,4 milliards de dollars (augmentation de 14 % par rapport à l'année précédente) et un volume de Services Marchands de 218 millions de dollars (augmentation de 114 % par rapport à l'année précédente). L'entreprise a également reçu des approbations réglementaires pour son acquisition d'un fournisseur de services de paiement basé en Chine, prévue pour se clôturer au premier semestre 2025.

Payoneer (NASDAQ: PAYO) hat starke Finanzergebnisse für das vierte Quartal und das vollständige Jahr 2024 gemeldet und einen Jahresrekord von 80 Milliarden Dollar erreicht, was einem Wachstum von 21 % im Jahresvergleich entspricht. Das Unternehmen zeigte eine robuste Leistung mit einem Jahresumsatzwachstum von 18 %, das durch eine signifikante B2B-Volumenausweitung von 42 % im Jahresvergleich angetrieben wurde.

Zu den wichtigsten Highlights gehören 7,0 Milliarden Dollar an Kundenfonds (ein Anstieg von 9 % im Jahresvergleich), Rekordkartenausgaben von 1,5 Milliarden Dollar im vierten Quartal (ein Anstieg von 36 % im Jahresvergleich) und die strategische Übernahme von Skuad zur Verbesserung der Finanzdienstleistungen für KMU. Das Unternehmen hat Aktienrückkäufe im Wert von 137 Millionen Dollar zu einem durchschnittlichen Preis von 5,50 Dollar abgeschlossen und alle öffentlichen Warrants im Wert von 21 Millionen Dollar eingelöst.

Bemerkenswerte Wachstumskennzahlen sind ein B2B-Volumen von 3,0 Milliarden Dollar (37 % Anstieg im Jahresvergleich), ein Marktvolumen für KMU von 13,4 Milliarden Dollar (14 % Anstieg im Jahresvergleich) und ein Volumen von Merchant Services von 218 Millionen Dollar (114 % Anstieg im Jahresvergleich). Das Unternehmen erhielt auch regulatorische Genehmigungen für die Übernahme eines in China ansässigen Zahlungsdienstleisters, die voraussichtlich im ersten Halbjahr 2025 abgeschlossen wird.

Positive
  • Record annual volume of $80B (+21% YoY)
  • B2B volume growth of 42% YoY
  • Record card spending of $1.5B in Q4 (+36% YoY)
  • Merchant Services volume up 114% YoY
  • Customer funds increased 9% to $7.0B
  • Strategic acquisition of Skuad enhancing SMB services
  • Received China regulatory approvals for payment service provider acquisition
Negative
  • Increased exposure to interest rate fluctuations requiring hedging strategies
  • Geopolitical risks from Israel conflicts noted in forward-looking statements
  • Potential impact from trade policies and tariffs mentioned as business risk

Insights

Payoneer's Q4 and full-year 2024 results reveal a company firing on all cylinders, with record $80 billion transaction volume (21% YoY growth) and 18% revenue growth translating to record profitability. The standout performer was B2B volume, surging 42% year-over-year, signaling Payoneer's successful penetration into the higher-margin business payments market.

The company's strategic focus on high-value customers is paying dividends, with both volume and revenue from $10K+ ICPs growing over 20%. This customer segment typically generates higher margins and exhibits stronger retention, creating a more stable revenue foundation. Meanwhile, the 18% ARPU growth (21% excluding interest income) demonstrates Payoneer's ability to extract more value from existing relationships through cross-selling and upselling premium services.

Particularly noteworthy is Payoneer's proactive approach to interest rate risk management. By investing $1.8 billion in fixed-income securities and implementing derivative hedges on $1.9 billion with a 3% floor, management has wisely insulated a significant portion of interest income from potential rate cuts. This prudent financial engineering provides earnings stability during a period of uncertain monetary policy.

The regulatory approval for Payoneer's China acquisition represents a significant strategic win. China remains one of the world's largest e-commerce and manufacturing hubs, but has historically presented regulatory challenges for foreign payment providers. This acquisition potentially unlocks a massive growth vector that competitors may struggle to replicate.

The 36% growth in card spending (reaching $5.2 billion annually) highlights Payoneer's successful expansion beyond its core payment processing business into higher-margin financial services. This diversification reduces reliance on marketplace-driven volume while capturing more of the transaction value chain.

With substantial capital returns to shareholders through share repurchases and warrant redemptions, management is demonstrating confidence in Payoneer's intrinsic value while simultaneously simplifying its capital structure and reducing potential dilution. The company appears well-positioned for continued strong performance in 2025, with multiple growth levers to pull across geographical and product dimensions.

Payoneer's 2024 results reflect a company successfully executing a sophisticated multi-dimensional growth strategy in the global payments space. The 21% volume growth to $80 billion is impressive, but the composition of that growth reveals a company transforming from a marketplace payment facilitator into a comprehensive global financial infrastructure provider.

The 42% surge in B2B payment volume significantly outpaces the broader B2B payments market growth rate (typically 10-15%), indicating substantial market share gains in this higher-margin segment. Payoneer is effectively capitalizing on the ongoing digitization of B2B payments, which remains at relatively low penetration levels compared to consumer payments.

Equally telling is the 114% year-over-year growth in Merchant Services (Checkout) volume, signaling Payoneer's successful expansion into direct merchant acquiring - a substantially larger addressable market than their traditional marketplace focus. This positions them as an emerging competitor to established players like Stripe and Adyen, but with the advantage of an existing global SMB customer base.

The company's card spending growth of 36% (reaching $5.2 billion annually) represents a strategic masterstroke, effectively creating a closed-loop payment ecosystem that increases customer stickiness while capturing additional revenue from both sides of transactions. By enabling customers to both receive and spend funds within the Payoneer ecosystem, the company reduces attrition while decreasing reliance on external banking partners.

The regulatory approval for Payoneer's China acquisition is particularly significant given the country's notoriously complex regulatory environment for foreign payment providers. This potentially grants Payoneer a substantial competitive advantage in facilitating payments into and out of one of the world's largest e-commerce markets - a capability many competitors lack.

With $7 billion in customer funds now on platform (up 9% YoY), Payoneer has effectively built a secondary business model through float management. Their prudent interest rate hedging strategy demonstrates sophisticated treasury management, protecting a significant portion of this income stream from potential rate volatility while maintaining capital efficiency.

Achieved record annual volume of $80 billion, 18% annual revenue growth and record profitability

2025 guidance reflects business momentum and confidence in further strong performance

NEW YORK--(BUSINESS WIRE)-- Payoneer Global Inc. (“Payoneer” or the “Company”) (NASDAQ: PAYO), the financial technology company empowering the world’s small and medium-sized businesses to transact, do business and grow globally, today reported financial results for its fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 Financial Highlights

($ in mm)

4Q 2023

 

1Q 2024

 

2Q 2024

 

3Q 2024

 

4Q 2024

YoY
Change

2023

 

2024

  YoY
Change
Revenue ex. interest income

$159.4

 

$162.9

 

$173.7

 

$183.1

 

$201.1

26%

$600.5

 

$720.9

 

20%

Interest income

64.9

 

65.3

 

65.8

 

65.2

 

60.6

-7%

230.6

 

256.8

 

11%

Revenue

$224.3

 

$228.2

 

$239.5

 

$248.3

 

$261.7

17%

$831.1

 

$977.7

 

18%

Transaction costs as a % of revenue

16.2%

 

14.9%

 

15.4%

 

15.3%

 

16.5%

30 bps

14.7%

 

15.6%

 

90 bps

Net income

$27.0

 

$29.0

 

$32.4

 

$41.6

 

$18.2

-33%

$93.3

 

$121.2

 

30%

Adjusted EBITDA

52.2

 

65.2

 

72.8

 

69.3

 

63.3

21%

205.1

 

270.6

 

32%

           

 

Operational Metrics            

 

Volume ($bn)

$19.0

 

$18.5

 

$18.7

 

$20.4

 

$22.5

18%

$66.0

 

$80.1

 

21%

Active Ideal Customer Profiles (ICPs) ('000s)1

516

 

530

 

547

 

557

 

560

8%

516

 

560

 

8%

Revenue as a % of volume ("Take Rate")

118 bps

 

124 bps

 

128 bps

 

122 bps

 

116 bps

 

-2 bps

 

126 bps

 

122 bps

 

-4 bps

SMB customer take rate2

100 bps

 

108 bps

 

111 bps

 

109 bps

 

109 bps

 

9 bps

 

105 bps

 

109 bps

 

4 bps

  1. Active ICPs are defined as customers with a Payoneer Account that have on average over $500 per month in volume and were active over the trailing twelve-month period.
  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.

“2024 was a defining year for Payoneer. We achieved new records for annual volume, revenue and profitability, saw exceptional volume and revenue growth with B2B SMBs, drove increased adoption of our high value products and expanded our financial stack. These achievements are proof of our scalable, increasingly profitable business model, the size of our opportunity and the strength of our execution.

 

Looking ahead to 2025, we will focus on expanding our regulatory moat, modernizing our technology infrastructure and further enhancing our financial stack, while seeking to deliver continued strong growth and profitability.”

 

John Caplan, Chief Executive Officer

Full Year 2024 Business Highlights

  • Total volume grew 21% year-over-year to $80 billion dollars. B2B volume growth was particularly strong, growing 42% year-over-year.
  • 8% ICP growth year-over-year. Volume and revenue from $10K+ ICPs both increased by over 20% for the full year.
  • 18% year-over-year growth in ARPU driven by business mix, increased adoption of our high value products, in particular our card product, our various pricing and offering initiatives and higher interest income. ARPU excluding interest income increased 21% year over year.
  • $7.0 billion of customer funds (including both short-term and long-term funds) as of December 31, 2024, up 9% year-over-year.
  • Implemented actions to reduce future sensitivity to interest rate fluctuations with $1.8 billion of funds underlying customer balances invested in US treasury securities and term-based deposits as of December 31, 2024, and long-term interest rate derivative instruments purchased with respect to $1.9 billion in funds to provide a floor against interest rate declines below 3%.
  • Acquired Skuad, a global workforce and payroll management company. The acquisition accelerates our strategy to deliver a comprehensive and integrated financial stack for SMBs that operate internationally.
  • $137 million of share repurchases at a weighted average price of $5.50 and repurchased and redeemed all 25 million outstanding public warrants for $21 million.
  • In February 2025, announced that we had received the regulatory approvals in China required to complete our previously announced acquisition of a licensed China-based payment service provider. The transaction is expected to close in the first half of 2025, subject to customary closing conditions.

Fourth Quarter 2024 Business Highlights

  • 18% volume growth year-over-year reflects:
    • B2B volume of $3.0 billion increased 37% year-over-year, driven by continued strong customer acquisition and increased average transaction sizes.
    • SMBs that sell on marketplaces volume of $13.4 billion increased 14% year-over-year led by strong performance with large ecommerce sellers.
    • Merchant Services (Checkout) volume of $218 million increased 114% year-over-year.
    • Enterprise payouts volume of $5.9 billion increased 17% year-over-year.
  • Record $1.5 billion of spend on Payoneer cards, up 36% year-over-year, as customers increasingly use our card product for their global accounts payable needs and as we continue to drive adoption across all regions. Full year card usage of $5.2 billion increased 36% year-over-year.

2025 Guidance

“Payoneer delivered record revenue and profitability in 2024. We achieved 20% growth in revenue excluding interest income and delivered three consecutive quarters of positive adjusted EBITDA excluding interest income.

 

Our 2025 guidance is consistent with our medium-term financial targets and reflects our confidence in our strategy and in our ability to continue to build upon the strong momentum of 2024.”

 

Bea Ordonez, Chief Financial Officer

2025 guidance is as follows:

 

 

 

 

 

 

 

Revenue

$1,040 million - $1,050 million

 

 

 

 

Transaction costs

~18.0% of revenue

 

 

 

 

Adjusted EBITDA (1)

$255 million to $265 million

 

 

 

 

 

 

 

 

(1) The Company cannot reconcile its expected adjusted EBITDA to expected net income under “2025 Guidance” without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company's control and/or cannot be reasonably predicted at this time, including income taxes, other financial (income) expense, net. Such unavailable information could have a significant impact on the Company’s GAAP financial results. Please refer to “Financial Information; Non-GAAP Financial Measures” below for a description of the calculation of adjusted EBITDA.

Webcast

Payoneer will host a live webcast of its earnings on a conference call with the investment community beginning at 8:30 a.m. ET today, February 27, 2025. To access the webcast, go to the investor relations section of the Company’s website at https://investor.payoneer.com. A replay will be available on the investor relations website following the call.

About Payoneer

Payoneer is the financial technology company empowering the world’s small and medium-sized businesses to transact, do business, and grow globally. Payoneer was founded in 2005 with the belief that talent is equally distributed, but opportunity is not. It is our mission to enable any entrepreneur and business anywhere to participate and succeed in an increasingly digital global economy. Since our founding, we have built a global financial stack that removes barriers and simplifies cross-border commerce. We make it easier for millions of SMBs, particularly in emerging markets, to connect to the global economy, pay and get paid, manage their funds across multiple currencies, and grow their businesses.

Forward-Looking Statements

This press release includes, and oral statements made from time to time by representatives of Payoneer, may be considered “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Payoneer’s future financial or operating performance. For example, projections of future revenue, transaction cost and adjusted EBITDA are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “expect,” “intend,” “plan,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “potential” or “continue,” or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Payoneer and its management, as the case may be, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (1) changes in applicable laws or regulations; (2) the possibility that Payoneer may be adversely affected by geopolitical events and conflicts, such as Israel’s ongoing conflicts in the Middle East, and other economic, business and/or competitive factors, such as trade policies (including tariffs); (3) changes in the assumptions underlying our financial estimates; (4) the outcome of any known and/or unknown legal or regulatory proceedings; and (5) other risks and uncertainties set forth in Payoneer’s Annual Report on Form 10-K for the period ended December 31, 2024 and future reports that Payoneer may file with the SEC from time to time. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Payoneer does not undertake any duty to update these forward-looking statements.

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 United States generally accepted accounting principles (“GAAP”). Payoneer uses these non-GAAP measures to compare Payoneer’s performance to that of prior periods for budgeting and planning purposes. Payoneer believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Payoneer’s results of operations. Payoneer's method of determining these non-GAAP measures may be different from other companies' methods and, therefore, may not be comparable to those used by other companies and Payoneer does not recommend the sole use of these non-GAAP measures to assess its financial performance. Payoneer management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in Payoneer’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. You should review Payoneer’s financial statements, which are included in Payoneer’s Annual Report on Form 10-K for the year ended December 31, 2024 and its subsequent Quarterly Reports on Form 10-Q, and not rely on any single financial measure to evaluate Payoneer’s business.

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 and warrant repurchase/redemption, other financial expense (income), net, income taxes, 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. We also reference ARPU (Average Revenue Per User), which is defined as the Revenue from Active Customers divided by the number of Active Customers over the period in which the Revenue was earned. Active Customers for these purposes are defined as Payoneer accountholders with at least 1 financial transaction over the period. Revenue from Active Customers represents revenue attributed to Active Customers based on their use of the Payoneer platform, including interest income earned from their balances, and excluding revenues unrelated to their activities.

TABLE - 1
PAYONEER GLOBAL INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(U.S. dollars in thousands, except share and per share data)
 
(Unaudited)
Three months ended
December 31,
Year ended
December 31,

2024

 

2023

 

2024

 

2023

 
Revenues $

261,739

 

$

224,320

$

977,716

 

$

831,103

 
Transaction costs (Excluding depreciation and amortization shown separately below and including $1,399, $1,781, and $1,491 interest expense and fees associated with related party transactions in 2024, 2023, and 2022 respectively.)

43,121

 

36,320

152,106

 

122,291

Other operating expenses

43,133

 

39,686

169,550

 

160,609

Research and development expenses

40,384

 

34,972

134,631

 

119,197

Sales and marketing expenses

59,024

 

51,762

211,839

 

196,654

General and administrative expenses

33,227

 

27,124

113,263

 

100,929

Depreciation and amortization

13,666

 

8,750

47,296

 

27,814

Total operating expenses

232,555

 

198,614

828,685

 

727,494

 
Operating income

29,184

 

25,706

149,031

 

103,609

 
 
Financial income (expense):
Gain from change in fair value of Warrants

 

11,824

2,767

 

17,359

Loss on Warrant repurchase/redemption

 

(14,746

)

Other financial income (expense), net

(2,978

)

3,763

2,419

 

11,568

Financial income (expense), net

(2,978

)

15,587

(9,560

)

28,927

 
Income before income taxes

26,206

 

41,293

139,471

 

132,536

 
Income taxes

8,016

 

14,272

18,308

 

39,203

 
Net income $

18,190

 

$

27,021

$

121,163

 

$

93,333

 
Other comprehensive loss
Unrealized loss on available-for-sale debt securities, net

(13,539

)

(412

)

Tax benefit on unrealized loss on available-for-sale debt securities, net

2,906

 

90

 

Unrealized loss on cash flow hedges, net

(15,976

)

(15,473

)

Tax benefit on unrealized loss on cash flow hedges, net

3,519

 

3,428

 

Foreign currency translation adjustments

(66

)

(66

)

Other comprehensive loss

(23,156

)

(12,433

)

 
Comprehensive income (loss) $

(4,966

)

$

27,021

$

108,730

 

$

93,333

 
Per Share Data
Net income per share attributable to common stockholders — Basic earnings per share $

0.05

 

$

0.08

$

0.34

 

$

0.26

— Diluted earnings per share $

0.05

 

$

0.07

$

0.31

 

$

0.24

 
Weighted average common shares outstanding — Basic

360,292,619

 

354,697,812

358,345,945

 

361,678,893

Weighted average common shares outstanding — Diluted

385,074,151

 

379,881,231

386,237,179

 

392,665,718

Disaggregation of revenue

The following table presents revenue recognized from contracts with customers as well as revenue from other sources:

(Unaudited)
Three months ended
December 31,
Year ended
December 31,

2024

 

2023

 

2024

 

2023

 
Revenue recognized at a point in time $

197,456

$

156,114

$

707,644

$

573,902

Revenue recognized over time

777

660

2,650

16,925

Revenue from contracts with customers $

198,233

$

156,774

$

710,294

$

590,827

Interest income on customer balances $

60,595

$

64,867

$

256,846

$

230,634

Capital advance income

2,911

2,679

10,576

9,642

Revenue from other sources $

63,506

$

67,546

$

267,422

$

240,276

Total revenues $

261,739

$

224,320

$

977,716

$

831,103

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.

Note that the Company has updated the definition of its primary regional markets to align with the view used by Management. This update eliminates South Asia, Middle East and North Africa as a separate region and instead includes revenues from South Asia in the Asia-Pacific region and Middle East and North Africa in the Europe, Middle East, and Africa region. The update has been applied to all periods reflected in the table below.

(Unaudited)
Three months ended
December 31,
Year ended
December 31,

2024

 

2023

 

2024

 

2023

Primary regional markets
Greater China(1) $

89,938

$

80,244

$

340,846

$

287,944

Europe, Middle East, and Africa(2)

65,312

59,878

253,096

225,703

Asia-Pacific(2)

52,628

40,116

186,582

142,737

North America(3)

25,898

23,499

96,868

97,434

Latin America(2)

27,963

20,583

100,324

77,285

Total revenues $

261,739

$

224,320

$

977,716

$

831,103

  1. Greater China is inclusive of mainland China, Hong Kong, Macao and Taiwan.
  2. No single country included in any of these regions generated more than 10% of total revenue.
  3. The United States is the Company’s country of domicile. Of North America revenues, the U.S. represents $28,194 and $22,452 during the three months ended December 31, 2024 and 2023, and $95,794 and $93,371 during the years ended December 31, 2024 and 2023, respectively.
TABLE - 2
PAYONEER GLOBAL INC.
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (UNAUDITED)
(U.S. dollars in thousands)
 
Three months ended Year ended
December 31, December 31,

2024

 

2023

 

2024

 

2023

Net income $

18,190

 

$

27,021

 

$

121,163

 

$

93,333

 

Depreciation and amortization

13,666

 

8,750

 

47,296

 

27,814

 

Income taxes

8,016

 

14,272

 

18,308

 

39,203

 

Other financial (income) expense, net

2,978

 

(3,763

)

(2,419

)

(11,568

)

EBITDA

42,850

 

46,280

 

184,348

 

148,782

 

Stock based compensation expenses(1)

18,614

 

17,338

 

64,787

 

65,767

 

M&A related expense(2)

1,807

 

451

 

9,439

 

3,468

 

Gain from change in fair value of Warrants(3)

 

(11,824

)

(2,767

)

(17,359

)

Loss on Warrant repurchase/redemption(4)

 

 

14,746

 

 

Restructuring charges(5)

 

 

 

4,488

 

Adjusted EBITDA $

63,271

 

$

52,245

 

$

270,553

 

$

205,146

 

 
Three months ended,
Dec. 31, 2023 Mar. 31, 2024 June 30, 2024 Sept. 30, 2024 Dec. 31, 2024
 
Net income $

27,021

 

$

28,974

 

$

32,425

 

$

41,574

 

$

18,190

Depreciation and amortization

8,750

 

9,408

 

10,712

 

13,510

 

13,666

Income tax expense (benefit)

14,272

 

13,910

 

15,866

 

(19,484

)

8,016

Other financial (income) expense, net

(3,763

)

(2,747

)

(976

)

(1,674

)

2,978

EBITDA

46,280

 

49,545

 

58,027

 

33,926

 

42,850

Stock based compensation expenses(1)

17,338

 

15,077

 

13,666

 

17,430

 

18,614

M&A related expense (2)

451

 

2,375

 

2,091

 

3,166

 

1,807

Gain from change in fair value of Warrants(3)

(11,824

)

(1,761

)

(1,006

)

 

Loss on Warrant repurchase/redemption(4)

 

 

 

14,746

 

Adjusted EBITDA $

52,245

 

$

65,236

 

$

72,778

 

$

69,268

 

$

63,271

  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. Additionally, amounts for 2024 include $1.8 million in non-recurring fair value adjustment of the Skuad contingent consideration liability.
  3. Changes in the estimated fair value of the warrants are recognized as gain or loss on the consolidated statements of comprehensive income. The impact is removed from EBITDA as it represents market conditions that are not in our control.
  4. Amounts relate to a non-recurring loss on the repurchase and redemption of outstanding public warrants.
  5. The Company initiated a plan to reduce its workforce during the year ended December 31, 2023 and had non-recurring costs related to severance and other employee termination benefits.
TABLE - 3
PAYONEER GLOBAL INC.
EARNINGS PER SHARE
(U.S. dollars in thousands, except share and per share data)
 
(Unaudited)
Three months ended December 31, Year ended December 31,

2024

 

2023

 

2024

 

2023

Numerator:
Net income $

18,190

$

27,021

$

121,163

$

93,333

Denominator:
Weighted average common shares outstanding —
Basic

360,292,619

354,697,812

358,345,945

361,678,893

Add:
Dilutive impact of RSUs, ESPP and options to purchase common stock

23,903,275

24,453,273

27,104,075

30,256,559

Dilutive impact of private Warrants

878,257

730,146

787,159

730,266

Weighted average common shares — diluted

385,074,151

379,881,231

386,237,179

392,665,718

Net income per share attributable to common stockholders — Basic earnings per share $

0.05

$

0.08

$

0.34

$

0.26

Diluted earnings per share $

0.05

$

0.07

$

0.31

$

0.24

TABLE - 4
PAYONEER GLOBAL INC.
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands, except share and per share data)
December 31,

2024

2023

Assets:
Current assets:
Cash and cash equivalents $

497,467

 

$

617,022

 

Restricted cash

6,633

 

7,030

 

Customer funds

6,439,153

 

6,390,526

 

Accounts receivable (net of allowance of $382 in 2024 and $385 in 2023)

11,937

 

7,980

 

Capital advance receivables (net of allowance of $4,955 in 2024 and $5,059 in 2023)

56,242

 

45,493

 

Other current assets

88,210

 

40,672

 

Total current assets

7,099,642

 

7,108,723

 

Non-current assets:
Property, equipment and software, net

16,053

 

15,499

 

Goodwill

77,785

 

19,889

 

Intangible assets, net

102,390

 

76,266

 

Customer funds

525,000

 

 

Restricted cash

17,653

 

5,780

 

Deferred taxes

41,523

 

15,291

 

Severance pay fund

757

 

840

 

Operating lease right-of-use assets

19,403

 

24,854

 

Other assets

30,174

 

15,977

 

Total assets $

7,930,380

 

$

7,283,119

 

Liabilities and shareholders’ equity:
Current liabilities:
Trade payables $

37,302

 

$

33,941

 

Outstanding operating balances

6,964,153

 

6,390,526

 

Other payables

129,621

 

117,508

 

Total current liabilities

7,131,076

 

6,541,975

 

Non-current liabilities:
Long-term debt from related party

 

18,411

 

Warrant liability

 

8,555

 

Deferred taxes

1,471

 

 

Other long-term liabilities

73,043

 

49,905

 

Total liabilities

7,205,590

 

6,618,846

 

Commitments and contingencies
Shareholders’ equity:
Preferred stock, $0.01 par value, 380,000,000 shares authorized; no shares were issued and outstanding at December 31, 2024 and December 31, 2023.

 

 

Common stock, $0.01 par value, 3,800,000,000 and 3,800,000,000 shares authorized; 395,965,588 and 368,655,185 shares issued and 360,093,249 and 357,590,493 shares outstanding at December 31, 2024 and December 31, 2023, respectively.

3,960

 

3,687

 

Treasury stock at cost, 35,872,339 and 11,064,692 shares at December 31, 2024 and December 31, 2023, respectively.

(193,724

)

(56,936

)

Additional paid-in capital

821,196

 

732,894

 

Accumulated other comprehensive loss

(12,609

)

(176

)

Retained earnings (accumulated deficit)

105,967

 

(15,196

)

Total shareholders’ equity

724,790

 

664,273

 

Total liabilities and shareholders’ equity $

7,930,380

 

$

7,283,119

 

TABLE - 5
PAYONEER GLOBAL INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
 
Year ended December 31,

2024

2023

Cash Flows from Operating Activities
Net income $

121,163

 

$

93,333

 

Adjustment to reconcile net income to net cash provided by operating activities:
Depreciation and amortization

47,296

 

27,814

 

Deferred taxes

(22,616

)

(11,122

)

Stock-based compensation expenses

64,787

 

65,767

 

Gain from change in fair value of Warrants

(2,767

)

(17,359

)

Loss on Warrant repurchase/redemption

14,746

 

 

Interest and amortization of discount on investments

(8,577

)

 

Foreign currency re-measurement (gain) loss

3,522

 

(4,359

)

Changes in operating assets and liabilities, net of the effects of business combinations:
Other current assets

(44,821

)

(4,310

)

Trade payables

1,127

 

(8,326

)

Deferred revenue

2,039

 

1,348

 

Accounts receivable, net

337

 

4,898

 

Capital advance extended to customers

(329,512

)

(299,139

)

Capital advance collected from customers

318,763

 

290,801

 

Other payables

3,967

 

13,619

 

Other long-term liabilities

6,358

 

232

 

Operating lease right-of-use assets

14,068

 

10,248

 

Other assets

(12,955

)

(3,956

)

Net cash provided by operating activities $

176,925

 

$

159,489

 

 
Cash Flows from Investing Activities
Purchase of property, equipment and software

(8,189

)

(8,459

)

Capitalization of internal use software

(52,203

)

(39,333

)

Related party asset acquisition

 

(3,600

)

Severance pay fund distributions, net

83

 

255

 

Customer funds in transit, net

(50,768

)

930

 

Investments in interest rate derivatives

(35,200

)

 

Purchases of investments in available-for-sale debt securities

(1,443,772

)

 

Maturities of investments in available-for-sale debt securities

277,000

 

 

Purchases of investments in term deposits

(600,000

)

 

Cash paid in connection with acquisition, net of cash and customer funds acquired

(48,218

)

 

Net cash inflow from acquisition of remaining interest in joint venture

 

5,953

 

Net cash used in investing activities $

(1,961,267

)

$

(44,254

)

 
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 and proceeds from employee equity transactions to be remitted to employees

21,119

 

13,203

 

Outstanding operating balances, net

563,622

 

551,914

 

Borrowings under related party facility

15,120

 

26,855

 

Repayments under related party facility

(33,531

)

(24,582

)

Receipts of collateral on interest rate derivatives

37,890

 

 

Payments of collateral on interest rate derivatives

(19,100

)

 

Warrant repurchase/redemption

(19,834

)

 

Common stock repurchased

(137,513

)

(55,436

)

Net cash provided by financing activities $

427,773

 

$

511,954

 

 
Effect of exchange rate changes on cash and cash equivalents $

(3,588

)

$

4,458

 

 
Net change in cash, cash equivalents, restricted cash and customer funds

(1,360,157

)

631,647

 

Cash, cash equivalents, restricted cash and customer funds at beginning of year

7,018,367

 

6,386,720

 

Cash, cash equivalents, restricted cash and customer funds at end of year $

5,658,210

 

$

7,018,367

 

Supplemental disclosure of cash flow information:
Cash paid for taxes, net of refunds $

52,320

 

$

40,910

 

Cash interest paid $

1,399

 

$

1,767

 

Supplemental information of investing and financing activities not involving cash flows:
Property, equipment, and software acquired but not paid $

1,530

 

$

810

 

Internal use software capitalized but not paid $

7,108

 

$

10,159

 

Right-of-use assets obtained in exchange for new operating lease liabilities $

8,617

 

$

19,842

 

Common stock repurchased but not paid $

775

 

$

1,500

 

 

Investor Contact:

Caius Slater

investor@payoneer.com



Media Contact:

Alison Dahlman

PR@payoneer.com

Source: Payoneer

FAQ

What was Payoneer's (PAYO) total transaction volume for 2024?

Payoneer achieved a record annual volume of $80 billion in 2024, representing a 21% increase year-over-year.

How much did Payoneer's B2B volume grow in 2024?

Payoneer's B2B volume demonstrated strong growth of 42% year-over-year in 2024.

What was the value of Payoneer's share repurchases in 2024?

Payoneer executed $137 million in share repurchases at an average price of $5.50 per share.

How much did Payoneer's card spending grow in Q4 2024?

Card spending reached a record $1.5 billion in Q4 2024, up 36% year-over-year.

What was Payoneer's customer funds balance at the end of 2024?

Customer funds totaled $7.0 billion as of December 31, 2024, showing a 9% increase year-over-year.
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