Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon. Thank you for standing by. Welcome to Payoneer’s Fourth Quarter and Full Year 2022 Earnings Conference Call. At this time, all lines have been placed on mute to prevent any background noise.

Following the speakers' remarks, we will open the line for your questions.

conference being this reminder, a call recorded. is As

turn over Investor to would Please, now Wang, call to like of I Michelle the Payoneer's ahead. go Relations. VP

Michelle Wang

Co-Chief on Thank With as Officer. Ordonez, Michael Financial Scott today's Payoneer's Executive Chief well Officers, Payoneer's and call Galit; you, as John me are Officer; operator. Levine, Deputy and Caplan Financial Payoneer's Bea Chief

today. risks are contain like uncertainties, numerous Before you may available are These remind Relations from Actual set website. I'd those the in and of may Investor section call to filings forward-looking we subject any differ forward-looking forth statements begin, make today's that statements. materially in with statements the forward-looking results our to which including our SEC, we

only today by required does statements or of obligation any forward-looking the assume to and update except These intent not speak them, company law. as as

addition, In a which measures. is measures can GAAP release, measure GAAP as should in the may today's considered for the substitute nearest financial be and a earnings non-GAAP today's be website. available call found as to company's Reconciliation measures. to These supplement contain on not

With that, to to over the I'd turn to call begin. Scott like

Scott Galit

our for strategy and for Thank and XXXX and I'll Payoneer joining financial to to our Michael fourth which and today XXXX was discuss XXXX quarter results; talk transition, CEO about everyone you discussing our Payoneer's John guidance. today. full cover will discuss earnings. XXXX Bea results year us be XXXX announced will will earlier beyond.

of $XX growth. XX% XX% revenue $XXX representing EBITDA growth XXXX year-over-year and year-over-year record including adjusted representing Payoneer of results, delivered million, million,

SMBs trillion to to our business a are and to globally. opportunity build $X help addressable because market, of a strategy We capturing in diversified innovate compete growing

in challenging of business, trust the in our our and the our team. the value network, environment the diversity of customers, of the we our their to Payoneer capabilities macroeconomic resilience highlights bring power relative Our

and continued the of customer XXXX. high-value acquisition, eBay full in revenue adoption services benefit onboarding of growth Payoneer's reflected XXXX year

is partially a and to year-over-year offset funds We monetization was our customer of marketplaces. increased model of also be some part of forward. continue core Payoneer at which so This e-commerce going by moderate our platform, declines volume business on the will

increased diversity, revenue our have from share also our our America, rates. and to approximately of the and XX% growing regions revenues SAMENA four These XX% We ago. geographic in nearly of years up have APAC Latin overall from faster-growing average higher take XXXX

We to we represents growing working now services, we will these are Commercial continue building in XXXX, and expect AP/AR, X% BXB And focused drive XXXX. including in XX% AP/AR from checkout, and in high-value growth our total the it on volumes, and up Mastercard, and volumes capital future. by of year-over-year BXB XX% grew

and Commercial year-over-year exited how are We our in with drove $X of on is use run innovating spend increase virtual more Mastercard rate offer a XXXX Payoneer account. to for example their our over of we ways customers to This a billion. threefold an

capital our the checkout businesses. remain optimistic long-term growth also about working for We potential and

an adjusted Checkout capital launch and with appetite there adoption with environment. they market capital, access seeing ago. believe term, to Long growth risk grow. to SMEs we months emerging the our In opportunity albeit need we initial continue rates meaningful to the working intend to given In provide grow, positive nine our are to we current is business, following

in including of announced WooCommerce. were with and already from a XXXX and $XX platforms recovery X% Shoplazza travel. year-over-year partnerships Shopify, benefited also billion We up have volumes

year-over-year. of and geographically to take services diversify to and of monetization also strategy rate basis grow long-term high-value expansion XX deliver customer us balances increased points Our enabled

and to in just employees. supporting as we important an market Ukrainian is and we our Ukraine A reported was committed for customers Payoneer, Ukraine earnings year the remain ago, war our beginning. extraordinary

partners work down of send business XX, into XXXX Russia. no we in Russia. wind with longer Additionally, XXXX, payments throughout we as our December our And to

year strong we track adjusted incredibly as an was and for growth. continued delivering Payoneer XXXX EBITDA our consistent record revenue of

for I future. strong next am leg foundation We about have Payoneer’s excited and growth, of incredibly our a

CEO staying XX, and X, the appointed to my of February and on of role a focus strategic to more plan as with I'm will projects. serve On Board involved Payoneer looking member. transition John I Senior effective forward as March the Advisor to and while continue time Board to actively

to transition to felt now was the transition. the XXXX very The didn't I we last together we'd And to of When was over employees, CEO past the rush customers you and Payoneer, nine by thank my all like past after John John for is progressed call, joining look has working Board, XX over As time and months, we the all to our ensure of we the this their first move shareholders support say announced our that to earnings transition our closely John years. forward. the to I'd for smoothly. said end right

enthusiastic have value years that confidence shareholders deliver about strong for to come. for Payoneer I full we will and team opportunities customers, I'm our has, and the many John the have and that employees

it now John XXXX discuss hand I'll to strategy. to our

John Caplan

excited potential. market for Scott, to long-term capture years to recognize leading of guidance ahead. $XXX share forward globally greater multibillions Payoneer looking million for over friendship next in from growth work I'm growing through and about our a revenue as the the Payoneer and leg to strong of Thanks, of transition. we its a incredibly your I'm position

for global traditional that banking grow have they financial and business, need underserved SMBs yet they cross-border capital to and cost-effective operations by the their to expenses system. the and accessing globally their manage. a are need operations, transact financial They solution and currencies holistic managing

to payment businesses. they XX% need growth strong expects Payoneer the approximately revenue greater provides BXB long-term Payoneer than efficiency. In driving and growth of payment services while with methods. in profitability. double generate more SMBs In grow relies plan adjusted on fact, volume EBITDA, future tools to investing their We operational to XXXX, while and legacy these

our on number and number discuss growth; priorities and three, two, going next-generation forward: building continued revenue our now number customers; will service three focusing profitable delivering core technology acquisition platform. our one, I model

committed We long-term delivering to XX%-plus growth. revenue remain

network have and that with a a scale registrations infrastructure customer benefit We annually. from and millions brand drives trusted created and reach of

focus acquisition our We and take on strength our rate higher on high-value will customer scaling services. leverage regions and and growing

Payoneer global for financial a delivering is operating SMBs. solution

deliver existing relationships. accounts maturity that product Our core accounts their share operating at can comprehensive intend are set of greater different increase a of and our receivable, products, customer development. payable account capabilities and and to monetization We wallet stages drive

payment their addressable trade partners provides our with receive remaining the of and proposition. from are tools our opportunity. significant business, AP/AR BXB new customers able globe. market where our our increase Payoneer, value customers payments are make expansion two-thirds for customers, Our example, we to to and a to one-third around existing were The net of billing Approximately represent invoicing, and BXB

to and underscores tend including to in spend big BXB BXB front complex of business overall. us, monetization which opportunity faster expect customers more grow over we functionality, time. and operating have than needs, This account their the management potential our continue to increased AP/AR

accelerate are up-sell growth. and such customers APAC. product role help to revenue remain revenue also a higher meaningful opportunities. diversifying to ability road rate as plan regions faster-growing, acquiring scale in revenue our our We mix inorganic To evaluating in map we focused Latin our M&A play geographically. We more EMEA and cross-sell, America, us We take and on continue our growth also will believe and

number to business. ability of our Our to a our large strength of is SMBs network attract diverse a core

different size, geography, differences deepening by profiles. our customers' and of of portfolios inform have better to industry growth customers our strategy, understanding different are our our We utilization product and profitability focus

number forward, we active will and At focus on adding product the invest go-to-market prospects that same so over of our and come serve even customers time, an we a Going our we of can in greater our every will retaining the to capabilities that and profitable profitably day. time, customers. Payoneer proportion platform greater

our economics. a segment approximately the volume, the of drive this retention and our customers, customers average, of tens of most they attractive unit profitability. revenue potential On Within Today, to quarter growth tend of are majority rates, have and highest active thousands our larger and who these do local our efforts to life made to leadership changes acquiring of annually. go-to-market are and efforts. than recently $XXX,XXX accelerate and And focusing our fully align we We of organization strategy on SMBs. go-to-market more partnership volume

$XX small in The who a make balance a approximately portion million volume of operating aggregate, customers our in in of and operating of losses group today's significant it serve revenue, carry of In and this customers, our those to resulted onboard XXXX. environment. cost

of we growth significant have in applications we every seen Additionally, the a month. number receive

Our powerful of customers of every hundreds attracts thousands brand month.

become and business year a At did effectively more million $XX received XXX,XXX represents to to prospect serve to highlights onboard our XX% is demand we time, a in not brand market SMBs, a spent core meaningful cost active smaller a up significant nearly leveraging same a over of XXXX, average, Payoneer and month intend the however, that opportunity, significantly strength our and On in ago. customers. on This we while continue we the the acquire account. the for cost customers. XXXX processing reducing applications This versus registrations

some mission long-term on-ramp Payoneer pricing In to the trusted built including strong platform set a meaningful to many And to experimenting and begun models. have in implementing on for new more the these has technology fees our profitably this global in do focused economy investments of is the Payoneer address earnings we of we are and of so. SMBs, by term, with SMBs. drag The markets, serve for efforts, are making near a our and brand. we to

In generation to the XXXX, technology of we $XX platform. build invest our approximately plan to next million

global which significant It operating We and faster efficiency value also so and expect and this that strengthen will will investment our business needs cross-selling with a as and automation, through better unlock costs to upselling. platform, rise the time meet particularly we enable global product services global over greater financial delivery, will our associated complex increasingly operating our partners, customers financial can continue ecosystem. across of compliance the

focus will and onboarding ever AI Building to includes in are and our enhancing XXXX infrastructure. of a target reduce, economics be the our our unlikely and first This profitability the our multiyear achieve journey, better predictive applying customer that generation identify the in tools and phase of next our platform to prospects will thresholds. number unit on fact,

investments end towards of begin seeing platform. we We transitioning as the the begin XXXX, our our of expect to new benefits to

capitalized. an will our million increasing incremental we our of to compliance is in function regulatory reflected that and we growth We shortly, which while our services plan high-value our investment which At this in $XX detail more in industry. time, ongoing discuss expensed, also the guidance, XXXX be support will of to will our of in spend half complexity expect XXXX remainder in be the

our is to for of competitive to build increasingly necessary across we to expensive or add significant We will personnel to serve the fintech industries invest facilitate licenses current serves support and It the in infrastructure, in framework importantly we growth. bank any competitor, This also traditional to it a future but to which required and global is moat. plan breadth operate the and our challenging as customers. infrastructure business markets operate,

We recognize is the extraordinary. Payoneer opportunity have we at

continue innovate we customers, deliver suite can we will needs. services our financial For so a to and SMBs of offerings, to with comprehensive global to evolve our

and that Foundation charitable our that aligned for supporting values, organizations of We with efforts. XXXX, I'm Payoneer’s entrepreneurship. our including announce support to the development deeply we at communities, For to Payoneer global of the established plan are small proud end business all

to dedicated are we and remains retaining place Payoneer best ensuring to employees, work. our great and individuals recruiting a the For

and forward results talented who our the are growth. of shareholders, passionate and XXXX employees sustained around our on momentum we and long-term Our mission are are for result world our focused committed direct delivering to and a our leaders experienced profitable

the announce to and fourth I'd leadership I Bea Board Bea financial forward I detail, of guidance our want and it friendship our as for to Before discuss Directors March to XX Michael past over in over years. Michael effective his that quarter hand CFO results more to have X. appointed and thank like

over to that, Michael. With you,

Michael Levine

year-over-year Payoneer and transaction us. costs another in exceeded percentage thank revenue year adjusted Thank revenue, quarter We growth to of joining as XX% a our delivered and guidance saw EBITDA. full each you, strong everyone a of John, greater for revenue and XXXX. or you quarter for

revenue interest QX customer increased accelerating growing services, driven benefited seasonality. rising interest increased million, across also Sequentially, of geographies year-over-year and acquisition to high-value and growth customer revenue $XXX by typical diverse our from funds which continued QX from income XX% XX%, rates.

seasonal. increased Customers get multicurrency world. and drives payments were paid, growth take nearly volume as QX fourth Customer also value QX rate BXB driven this year quarter e-commerce of of with to in by points, million and the lower mix in Sequentially, quarter BXB the rate basis Note, while by XXX $XX.X large saw which points expansion year-over-year X% held QX funds slightly continued basis the XX offset terminations customers XX% sequentially manage growth interest year-over-year compared year-over-year compared to full some was volumes take and quarter. increased XXXX. $XXX volume funds of the growth billion. in income, $X.X billion. by e-commerce AP/AR, and billion their lower the have up was quarter QX. sequentially for to a higher made impact over and around seasonality, we Volume points of third ability is last year-over-year in by into travel rates. make basis holiday $X.X partially we customer recovery shift QX AP/AR Payoneer growth to was to XX% was XXX fourth of take the driven

We customer fund were the a to monetization greater get working Further, been with greater to and scale optimize have secure balances increase. customer of by we share to accounts. to our interest driving of able leveraging funds approvals, subsequent rate interest-bearing economics regulators each from appropriate allocation by better our

funds Now ago. earning XX% versus a of year customer are over XX% over interest

million. earned customer up increased year from of We in from the Sequentially, million than period. $XX less $X interest in million the balances quarter interest $XX prior income fourth income

XX.X% from fourth of interest income the quarter of QX versus revenue, represented than and a transaction QX. at XX.X% improvement grew million. This to an costs last Transaction year lower in costs due XX.X% rate revenue were $XX primarily revenue. higher

costs. year-over-year representing year-over-year, transaction higher increased Bank in and volume processor transaction revenue costs $XXX fees, driven of BXB of QX million relatively component to the higher XX% has costs X% well which revenue. less transaction largest AP/AR, as growth as by XX.X% strong increased

were transaction QX total of year-over-year up million, $XXX operating expenses, sequentially. excluding $XXX XX% year-over-year, XX% million expenses costs, operating increased including XX% transaction and costs,

going million quarter On the earnings were we of to our third make quarter. noted fourth in call, we discretionary investments $XX

and expenses expect continue these consulting We of the $X year full services. linked ongoing third-party for mostly to to million XXXX

of excluding higher by increased primarily in was in $XX discretionary increase costs business. The approximately year-over-year, and sales strategic costs. marketing and of America China year-over-year and It sales increase QX to QX costs million Latin expenses. operating hiring total marketing in million represented including to $X linked expenses, transaction XX% expenses, support our growth AP/AR driven the labor and our BXB

$X campaigns brand and mentioned we call, and on image. million we We India, Brazil, our in As invested in of Philippines. terms from targeted Payoneer awareness, positive positive campaigns results marketing marketing in our of consideration saw third UAE quarter the impact

from year-over-year, marketing Given labor we but higher continue to invest $X to the capabilities. our XX% do focus to sales not operating continue data this on plan XXXX, platform our campaign as our mostly and or efficiency, future to million increased from in we'll R&D spend in strategies. expenses we use QX inform expenses

continue enhance technology R&D we will more We which we our in expect shortly. investing detail as in platform, discuss to

period, expenses prior $XX versus operating higher Other to the growth and reflecting million XXXX increased ongoing the primarily contractor QX in expenses of employee support year business.

supporting relief increased to as travel Ukraine. included efforts also million for of well third-party charitable $X discretionary as G&A organizations investment, $XX which and expenses and consultants contributions million was in year-over-year

Payoneer in expenses Foundation, discretionary our which Additionally, to outlook. was $X.X G&A investment launch original included included million the not

of year. million million loss quarter. included was XXXX $XX compared last value from was million fourth of million and the in of last for million net to $XX QX change compared the the to quarter in warrants. QX gain year $XX QX Net Our in quarter a net adjusted loss in EBITDA $XX $X the third fourth of million $XX loss fair

negative diluted basic QX was $X.XX. and net share loss per

We million. and of and $XXX flow, with $XX continue million, cash the generate to equivalents we quarter cash increase positive cash ended sequential a of

our and call, ability CFO of you and with pleasure plan. results I guidance will John of June I to our growth. the Payoneer the execute earnings my public for and our X, March all to had shareholders also the say seven of I weeks XXXX, interest Payoneer remain EBITDA since is to Bea support consistently working Payoneer. adjusted of strong this over confident in as continued in I has exceeded going in quarters have the past its few phase past like As Ordonez, revenue over on last have confidence next our and who become and Bea their to into delivered would and utmost lead thank

to like turn Bea discuss guidance. over I'd to XXXX now to it

Bea Ordonez

drive during support the your term in and I for infrastructure. of investments years the acquisition working transition in coming together and in our business, through long-term on many focusing revenue forward to client look our term, Michael, to operating our near long and significant capabilities driving growth high-value continue both you meeting in this investment see ahead. We while platform prudent you, Thank through leverage growth to in opportunities to our process. service efforts, weeks also offerings, in and

In more adjusted performance expected EBITDA growth. including measures, benefit the operating XXXX is from and expense expense from near-term, income revenue interest to strong drive measured which rationalization growth,

ahead. short, and investing also business are deliver to adjusted strengthen XXXX, meaningful growth in grow positioned In for further while we EBITDA our the to years

EBITDA percentage and million, be year revenues XXXX, to be $XXX to XX% between we million million. be full For approximately revenue transaction between $XXX adjusted costs million expect to as $XXX a and of $XXX and

EBITDA a latest of to our and adjusted year-over-year. midpoint increase The guidance doubling of XX% revenue represents margins a

in and higher be larger, growth acquisition take profitable customer particular, rate in by We expect revenue continued driven regions. customers more to in growth

interest million be in from revenues approximately for high-value into offset balances. our at growth We business decline by $XX BXB in faced XXXX earn This known from headwinds of certain Russia the customer and and partially also for and onboarding the services, on of of closure continued from enterprise the client we XXXX. other full the our and we payments services, in expect of impact year an end will

$XXX funds XXXX, anticipated We expect changes. based line for and rate million balances, fourth customer interest approximately balanced with quarter in moderate income be Fed to exit current volumes, growth our funds interest on

of Our to is core customer business balances ability part model. a monetize our

to platform, our grown As drive of share have and have greater customer we balances on volume our scale a have we grow seen the economics. leveraged

expect costs of revenue revenue. be leverage approximately trend We while we to higher percentage continued XXXX year-over-year, to Transaction as to also scale costs XX% from better benefiting income revenue. a our for of pricing transaction downward as drive interest

expect moderating relative and two past We AP/AR with and rates higher APAC take the such higher over continue into saw by years. these to Latin driven shift what SAMENA This America, is regions mix to BXB, also costs. transaction and improvements we into relatively as

transaction less client. Based million between annual our midpoint. at we for on $XX to OpEx an an include XX% $XXX expect XXXX, incentive an representing expenses recurring guidance, related to be incremental million million cost operating the enterprise stated approximately payments $XXX adjusted increase of and XXXX year-over-year

As our beginning in John in discussed, of XXXX, we next generation investing the platform. technology are

included guidance, better approximately In EBITDA journey complex our $XX million this while the $XX growing multi-year expensed a adjusted platform which and We of spending to remainder strengthen the in to of needs business. be will fit our be expect anticipate we capitalized. be our is will to million, XXXX, and enhance and

increased These time, customer our the to customer we and drive acquisition which launch experience, retention investments, also serve. and costs expect As products cost progress acquisition, monetization. our down enhance which and to automation features to new will, ability on across will business we increased operations, to make accelerate over and drive investments our deliver ongoing these our will

ongoing including expenses. operating customer As to onboarding costs cost growth our to in the compliance serve we have meaningfully noted, and have contributed costs, our

in are XXXX We beyond. of the to expect rate, exit the expected occur our while of to and see benefits our XXXX from some full these investments platform in capture benefits run

a with significant environment. can Payoneer the financial drives benefits applications, brand the existing customer the growing, customer significant other costs been onboarding associated and operating for based have effect from strong that portion network of line our exceeds with In a cost local and on institutions, potential inbound traffic. inbound we revenue regulated earn

cohorts our the managing evolution will relationships the serve capabilities long-term, the the a will us of well streamline enhancements of reducing as acquisition our proportion associated costs platform pricing our of as as efforts we customer to through onboarding be through our related In profitably customers. In strategies existing greater better near-term, as well certain that allow focused customers. the will process, on to

broadly We areas focused across greater are driving actively evaluating spending. more other also and of business efficiency on our are

versus guidance Our is EBITDA of guidance adjusted reflects $XXX XXXX. for million and XXXX adjusted million. and approximately increase X.X-fold a an in $XXX EBITDA adjusted This between EBITDA doubling margin

XXXX once Payoneer's financial again strong to conclusion, ability team's results. demonstrated In results deliver our

We large have and market for a we business, positive diversified, profitable exciting growing and a trends see and built in products. our

We while ability have investing our our financial profitable for of growth. many to Payoneer position XXXX to targets more confidence in years meet

you now may any questions answer We happy are have. to

Operator, please open line. the

Operator

Instructions] first of Will on you Sachs. ahead, from go Will. Goldman Thank line Please the [Operator question The Nance comes

open. is line Your

Will Nance

you Hey, guys. had have maybe bit of I customer could some serving customer to guys the appreciate I that the have you that follow found was you I wondering the up guys about. you question. double-click just the guys that are little profitably. on cohort of on that a the review currently not talking you base learnings if from wanted taking you're

or that, of of serve threads size, that in the And on I these common run that across I kind kind we to cohort? is to going guess of enable acquire And profitably or basis? you these some to but them there go-forward continue of product? the platform goal guys that that kind almost forward, think investments correlates not Are of like either kind service just base the within any a goal is to the customer vertical of clients through guess clients

John Caplan

lot of Hey, Will, great John a There's there. a questions in here. question. That's

sort sort our to you to go-to-market broadly the and about going of acquisition, I'm strategy answer customer give portfolios. try of an So

our in amounts of with monthly customer customers acquiring been at have quickly serve. profitable a portfolio very We successful on customers, what profile. the And most customers volume we are the our of desired basis see higher we dollar

those look broadly, my term prepared our remarks, is at of month. entirely goal business our for serve of of attract incentive said about teams structure business, applicants, profitable go-to-market And XXX,XXX to prospect aligned we them our And customers. possibly applicants And and And our our they thousands, as long hundreds you focus ultimately in if can acquiring we them is every as profitably. or all many are geographically diverse. I

So size specific industry we of operate it's about hard geography, XXX any and in or to dynamic how generalize customer over or the business given our countries. nature

of what our us drives But important we and think that of platform brand will XXX% is attract. that the to given serve population that more number our is in would think making the customers size the we of power and profitable, of long-term. never our onboarding be in profitably. our globally the generally, I It just we're investments enable economics. believe, people be, will And I

a about, important is and have You for talked like ours low-cost, customers the right? it in such attract past I for a how to platform

acquisition profitability very powerful is core can that as efforts we in a the the offer, the of as that's And and so Payoneer view the our tuning we that past. to an believe dynamics we of people entrepreneur Payoneer strengths global pricing, the the an our service improve strength. We're products today economy. levels One on-ramp,

Will Nance

enhancements, helpful. top about That's the that. of that to I of you priorities a just if the the appreciate look improve should of efficiencies kind going what Got of Thanks. product spending more hoping talk And very into you top bit just the of as you're the out little maybe organization. year areas on detail some it. the could are

John Caplan

Right.

account our easy from AR an at look We a we my end-to-end we So payable. SMB our financial and look that, customers. accounts think as on for -- direct partner of that's perspective, payment business really right? when And at and and one services

That's our growth which threefold -- AP/AR in we BXB that of our seen product is a the shared is commercial release volume our in platform, in $X the very bundling We exciting. MasterCard, we've our powering product, with broke increase there. that billion over frankly, we feel and

Longer and needs movement that credit to the suite on term, product of faster use. our seller and I extension seller more products, adding describe opportunities of as products lending would we're focused a money what suite,

around effort needs. doing our more is to phase operating functionality of make AP/AR on really BXB serve their financial around we're XXXX for our technology And work first to and easier of the of the customers core onboarding for BXB them in it more work the

Will Nance

hearing guys forward you it. having Appreciate Look Understood. the question. to more about

John Caplan

Thanks Will.

Operator

The next of question from Please on the line ahead. Needham. go comes Mayank Tandon

Mayank Tandon

evening wanted on congrats the you. Good start Thank you. and with John, I quarter. to

some maybe of If high-value give us you today? stands rates could aggregate just the sense attach for the all it products, where

we the going implication but everything what do in took AP/AR, expect forward? today? aggregate. is What take rate the BXB longer the for are you if Where out break did you You term? And

John Caplan

Yeah.

positive our say, bundling continue strong We're of the shared products. activities. cross-selling examples and So I efforts. progress up-selling we we very to past of in the seeing attach haven't specific can rates our on see

I million an Walmart two marketplace to Israel, access feeders use bird to customer ago offering. in and with filter entrepreneur Payoneer capital the working on here access weeks Amazon. Israeli they a dollars Amazon. the use They in fact, sales They get our was platform sells on just of couple that of bird

candidly, asking working with there the and And from more capital This account is products us, customer mapping potential and and a was we offerings. was sat that with AR together. for financial on comfortable service our the pleased out

that offers about bundled good the best So solution customers. Payoneer our feel I very

Mayank Tandon

terms in you think some about framework good about Got it. just seasonality to I provided should ask but you for And then we how maybe and Bea, the of outlook, the also the the an then year, for the flow terms expect on EBITDA trajectory in are that whole and XXXX? the we over should revenue, basis, what wanted the both of of course

Bea Ordonez

the Thanks for Sure. question.

as high throughout of the our prepared benefits beginning So driven half back and services, indicated, noted revenues million value would decrease acquisition, spending expect of increase will in $XX has in XXXX, in we sequentially of course grossing other over consumer is the know, QX. remarks, revenue year, we by our as impact, see the continued the the from seasonal, you we if that that even business John look, revenue, year, non-volume our in as customer strong

expect peak would as see we QX. the which that of season, well see generally as to impact we in So travel

speaking, distributed But the little be evenly loaded. we'll revenue our ramp revenue be From taking to increase that perspective, over the also see of throughout from is outlook, the overall, sequential EBITDA course adjusted a of expected the while year, account that year. up, into to investments it look, back will expect impact roughly perspective, because more a revenue an we'll

that yield we've platform, compliance here discussed they'll EBITDA more loaded infrastructure our quarters. investments tech and in performance through be flat back that the in of that will today those So our kind relatively

Mayank Tandon

you helpful. That's Thank much. so

Operator

The Williams next question the Please on of Trevor Jefferies. from comes line go ahead.

Trevor Williams

million. Thanks. just I ex you income of that got the can Just revenue $XXX second. level interest the we number assuming? share Thanks. embedded assumption? Great. else think I on growth interest how for income impacting the volume rate? underlying And should mix there of back wanted Anything a to guidance go the just you're take the of core volume then within to

Bea Ordonez

Sure. that. I'll take

seeing products so different strong take some we SAMEN services. going that high-value levers, growth and kind and of high business an and thanks other to reflects of or growth, for terms and to guidance online macro America, the we're of regions our has continued Look, [ph] in indicated, key Latin So environment or the the and the APAC across see as expect given look, those see we're margin our BXB underpenetrated obviously John in expectations ongoing in question. results our

expect certain although tough do marketplaces, versus to roughly better marketplaces. large from compared of because prior in to we're seeing see in e-commerce XXXX, volume volumes were normalization We our comps that's mid-single-digit rate growth is lapping actually XXXX, part a we from year. slightly large of a the e-commerce when those This growth in

macro But, the in are considerable, talked of uncertain volume volume, So all and exit marketplaces look, it's macro inherent known you to of and from from terms excluding the income non-volume know, headwinds interest environment embedded in those uncertainty assumption again, fees that and those Russia. channels the of impact that's related the as obviously related other look, terms our in about overall we that.

a gross roughly profit revenue implies XXXX. guidance Our for mid-teens

Trevor Williams

it. Got

on And there BXB customers roughly I then the of to new attach sense most traction of give piece. just the low. then said rate is you for with still Can a implied I better date? Okay. the APAR customers implied two-thirds seen guys you've to know on And and customers us very you've existing types the geographies net think are Payoneer.

or Just aggressively not thinking base? to more customer about Thanks. BXB how you're potential into the cross-sell product existing the the

John Caplan

wires is of business, long-term very and region, and in about We in legacy solutions by we're growth in America outpace our dominated APAR the banks opportunity our accelerate different payouts it our and bringing the fastest Latin year. week growth terrific marketplace BXB is revenue next be the to total our really than that's broadly. APRR the we BXB fastest-growing checks to XXXX. optimistic is And seeing and market are opportunity Sure. the penetrating space remain growth America. our I'll The because into Argentina excited and which and expect for -- Latin throughout trillion $X we innovative us

analog So well year that think we would I industry every this global solutions, serving customers are about positioned legacy ahead. broad feel of what coverage competing against as opportunity for product business providers in grow that broad with is global could coverage, just the global industry and we a describe to all well a

Trevor Williams

Okay. Thanks again. Great.

Operator

from question next Chris Kennedy Blair. William of The comes

Your is now open. line

Chris Kennedy

all active you a Yeah. that? the how on for on color on customers. provide your thanks little details bit any the for Good Can more platform the taking and many details or customers have afternoon John, more guys questions. thanks you on

John Caplan

Hey, from the to question. Chris, and hear you, for thanks good

specific are count We customer not number today. a sharing

and products Ukraine their aspires planning the all And marketplaces we customer the we communicate of freelancer that's in be the are than merchant are to important, globe. or selling engineers the that's to team do the goods We equal, who comes in serve, so all through Philippines the active or the biggest one working future. ways different is breadth think the the small day working to drastically customers, on to the that's e-commerce best BPO Payoneer, a the Not I number right? are created who the customers around very of customers of in

teams to customer acquisition, tooled focus, profitable are the Our do that.

We on the are through team the total and eager greater next platform the to work enable working us of is for with of greater an levels, applicants to will that an portion pricing, through service we with serve fees, at looking the the global of even account make doing are generation the even customer total have. percentage profitable experiments our tiered book

Bea Ordonez

all to I that our the really questions for whole that on do just to been going unit we that's and is cobalt look that and of us great very really a and Chris economics really those enhanced already priorities are me fulsome and know more insights done to key and these data the finance question disclosure build and out work you and the continuing for. organization market the of building allow and at answer that looking look generally analysis that are provide one

how more sort we to for an on of focused team So and that business unit thoughtful very want that very it we're me and is it be the our for not disclosure. understanding is our of scale economics very, and across just in area of But we out deepening broadly. definitely priority that

Chris Kennedy

from margin assume just talking expansion, guys taking helpful. could think different talk about margin modest Great, quickly the significant I what you quarter you just float it's were very revenue, call, the on talking then last the that's questions. about were I about for but Thanks kind all you if real guidance, expansion that? of on about And

Bea Ordonez

the our No, our looking business, were there we're evaluation time in based still obviously, how course, with the comments benefit flag budget take results expectations, really underway, our today Look, questions. more of reflects XXXX guidance we're the and, of very started little a our ongoing the expansion macro much we the of I'll sort showing the ongoing time. on environment. at it at elapsing is our of that. to With today, appreciate price November we modest where

proactive and greater management made have I the Board John uplift And proportion to of that reflects income a interest and also look, decisions in return coordination it team that shareholders. with to

felt platform support growth and growth. that, and the we're continue well-positioned business appropriate was we important invest We in that and and that need initiatives this to even future doing to rescale to that in

really for that that's arrived we've the main where that. of So, drivers

Chris Kennedy

you Thank

Operator

comes from line ahead, go your Josh Fitzgerald. open. Siegler Cantor question next the The on from Please is line

Josh Siegler

for how Thanks looking I and you wondering hi. Yes, taking some is was partners pipeline more color congratulations now? for on questions if these SMB quarter. like my on new larger right merchant the the could provide

John Caplan

Sure.

Cohen customers. We organization. have meeting in talking to last us on go-to-market was Adam China an the there, joined ground actually about and extraordinary just teams week with who talking our

So, of with I we hundreds They is think value have work we're them. of about small that we we to thousands dollars on businesses potential for the opportunity year, serve to can solutions there's focused them. think way are globally volume and do and the of million to very XXX to think well-positioned the a of going provide

about like critical our also to partners marketplaces, of minute ours. are a the good largest for with and which world's relationships partners talk I'd

will customer partnership don't continue them, into good our enhance accounts. relationships but are our announce focus focused those progress, and our We with progress and of excellent new to volumes continued We team. those marketplaces to existing add make good effort SMB bring solid of all marketplaces that

Josh Siegler

Appreciate you M&A. do in remarks, now? future acquisitions might Are your that. market valuations attractive you then the think you take? right seeing Understood. mentioned in form And what prepared more And

John Caplan

Yes.

coming think, rationalizing. private market they So, but public comps, fact, valuations I think are we benefit are, I down. do the in from the market company They lagged,

evaluating the potential opportunities board. across We sort M&A of are

Our more working account, their looking we and may our revenue customers. And the to stages of core cross-sell the AR, for per gaps us our through at create at customer, product can to capital, are upsell, opportunities which all And in and thinking development. acquisitions AP, are for consider. capability products, geographically, us different then also we help value are create more have

and effort, lead closely us. month to leads staff product working and us our ago, front see A and the join our hired of we technology this is Ambrosini together leaders the in go plan execute to that leaders M&A he to we put regional Kevin with as we our our

Josh Siegler

Understood. Thank and again. congratulations you once

John Caplan

Thanks.

Operator

Please Northland go The of next question comes from ahead. Mike Securities. Grondahl

Mike Grondahl

be hold that customers, Thanks, don't are guys. goal would $XX into that Two spent quick eliminate? how you of don't or incentivizing real really of then days can to customers you Hi. anything questions. the turn One, Anything with doing to secondly, And that much million apps you know, guys balances. customer what those your incentivizes I you processing in balances business kind grow small small that businesses. XXX done last, those higher you've

Bea Ordonez

focused related kind our disclosure. more begun in Look, from b, acquisition EBITDA Mike. million, performance going Sure. felt about to to in we've that yes, margin Thanks. about We the time, provide useful appreciate terms to from question, efforts the talk new over the a, EBITDA of our onboarding $XX our adjusted benefit to that see And size that and platform. adjusted or we that strategy that talked we in we're of and it was

and area. you operations cost, see our we compliance our as know, the So within

But up to become zero SMB to that moment. exit capture million be as that of working onboarding that, in expect we onto kind of some in through don't to fully goes as a of technology benefit earnings XXXX like a that going opportunity, we analysis with capture, heading still to run do sort significant any of onboard if XXXX, clear, the some move on to saying or rate was dragged we're drag that said fully as we're we new $XX is -- costs our ultimately not begin that, line. begin in that opportunity impair that and volume of is time Any and right? But prospects That's we significant some over see that. meaningful analysis a we profitable to business cycling full

SMBs. to revenue deliver that terms us. our demonstrates demonstrates to the of as question, we It evaluating grow the as second we It interest they continue to place we functionality core that we've value revenue. we're noted, In your in how that proposition. really look, view And trust actively can income

successful been point we've monetization greater very of and balances. to that think those doing driving I this

could your the implies, that product balances. as Over of that to initiatives the question grow customer involve behavior certainly sort long term, development incent

and we term, our near monetization. our I the more the actively earnings will to think, in cycles. our interest continue consistency with to thinking through manage rate different strategies both increase have we're yield also scale that an through maximize And opportunity And

think that area long-term revenue carefully. stream. an it's we to again, to find near really strategies looking core And optimize sort that about So, and we're to We business. its our of think

Mike Grondahl

Thank you.

Operator

final go question Krebs Please, Daniel Research. from ahead. today comes Wolf of The

Your open. line is

Daniel Krebs

opportunity time, would Darren. I to explore This was wondering to there? if monetizing here? helpful. any any Daniel increases the Payoneer or you. over qualitative on the give efforts Hey. on is volume, or what's on changes which you for you be client volumes could Are platform Are these Thank Payoneer color activity to there the ultimate seeing any

John Caplan

have -- -- here. payments global built account There right? Payoneer holders, Payoneer It's businesses of a increasingly it's economy great of between question. We dollars of recognizing. trust small Daniel. has are that a Hey, is area focus internally billions between see an We

globally. your If and your positive you're business account, business with doing grow Payoneer a one paying another way have customer a is to

real the to looking question exactly announce second strategy at developed, of those each of optimize we're There's Your working following comments monetizing customers from exploring quarterly at nothing of in future so call. gets my looking to last that new yes, on how our that we do behavior methods product are time. and those up the through about today, different flows, to and

Daniel Krebs

Thanks, Great. John.

John Caplan

bet You

Operator

I'll We for further have closing to hand management remarks. the team any back so questions, no

John Caplan

about organization, an and and the team grateful your excited we Payoneer John. is we strength conclude, Global to friendship it's a company, To entire for special as on have volume to Michael have, deeply to say to So, of think Scott. I'm the partnership. going this I'm the you important from and we organization, strength, the thank I are momentum behalf and

Operator

conference all This Thank concludes joining. call. for you today's

now may disconnect You your lines.

Payoneer Global (PAYO) 28 Feb 232022 Q4 Earnings call transcript