PAYO - Earnings call 3 2023 | Payoneer Global Inc.

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Operator

Good morning. Thank you for standing by. Welcome to Payoneer's Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Following the speakers' remarks, we'll open the lines for your questions.As a reminder, this conference call is being recorded.I'd now like to turn this call over to Michelle Wang, Payoneerâ€™s VP of Investor Relations.

Michelle Wang

Thank you, operator. call Ordonez. Officer, today's Financial Caplan; on Bea Officer, me areÂ Payoneerâ€™sÂ Chief John Executive andÂ Payoneerâ€™sÂ Chief With

begin, like statements we forth available contain risks Before in I'd does uncertainties, inÂ our differ forward-looking call that statements not and statements we Relations and SEC, statements. may filings These today's the with forward-looking These which speak those Investor of forward-looking intend including as them forward-looking are the any the to to to subject set payoneer.com. remind are you make except by assume any company Actual obligation or as materially from results law. today, only may of update today. section required

not non-GAAP These earnings measures. may addition, financial on be GAAP instead Reconciliations call to In the and which can release, measures our today's of measures. in today's website. be found nearest GAAP considered include available should is measures press to in addition

earnings please note on begin. have earnings I'd posted investor.payoneer.com.With John an Additionally, supplementÂ alongside we to the to call press that, to over release like turn our presentation

John Caplan

today. Good us you and thank for joining morning, everybody,

Before the we Israel heartbreaking. attacks want begin, loss and month deeply say lives The been of last war. the violence terrorist and ongoing in are all innocent I saddened we and how has just about to shocking

thoughts out who to are all suffering. Our go

our has the immensely proud a XX%Â adjusted I didn't determination displayed support during Payoneer to if in in our business region. and Foundation turning We've how on delivered the We margin. continue year-over-year million her a I relief to colleagues and our current growth would quarter the to more monitor circumstances.Now remarks, and the of the be will situation provide Payoneer and third earnings. community update our and donated XX%Â revenue are deeply I focused efforts. operations remiss EBITDA but on the light detailed am supporting of team via Bea Payoneer resilience $X humanitarian express

confident about efforts. the strategy and making executing progress are our pace are We our of

We enhancing towards take geographies, higher acquiring ICPs, ideal rate financial and more our diversifying high-value or are stack. customer profiles

Investor makes tools September, economy to in to Payoneer As shared compete them easy they financial the the and access at small our Inaugural markets medium-sized we win do business for Day businesses with the to global by and in providing it in. want

are capture laying and $X durable, foundation growth. to We positioned this trillion are opportunity profitable the for

scale, on focusing cross-sell ICPs, are more operate into million more X even to data our to of efficiently. We our our products technology, building customers, and base and leveraging

opportunity for financial the Our comprehensive the ahead core penetrating and our Payoneer.We cross-selling BXB of and are checkout stack driver markets is a cards.

As we and of market. to BXB Day, Investor at business potential about continue we confident long-term our in prioritized our traction highlighted gain service-oriented remain the

total year-over-year strong year-over-year year-over-year impact X% to XX% priority and delivered APAC, X%.InÂ SAMEA, BXB trends volume BXB the most made and terminations volume the third XX% and growth year we a volume quarter second quarter customer growth excluding versus growth Third throughout or recently, increased X% the in We accelerated quarter generated ago. volume of delivered improving quarter of of greater over Latin volume have SAMEA, October. year. BXB in service-oriented or XX% market, this each region, overall approximately our of rate America see grew BXB continue By take growth an blended we year-over-year traction. we've the

in region. We the programming, support, consulting are large industries penetrating and tech

scale. grow our grew XX% opportunity. Checkout, full value the in customers example, a ICPs, with entrepreneur, brand enable of to In India can emerging to For X,XXX proposition decade our quarter-over-quarter. customers a export Checkout growth recently hosted our events as we next looking this to to volume a and discuss part capture over ARPU, we attendees build an how as is by series of increase and of

was generating Checkout daily volume. As September, the end of $X in of over million

Checkout's enhance to continue we as momentum capabilities. features and further expect We

also For capabilities launched consumer our product to providing native experience.We conversion a more example, are payment improve seamless our rates shopping base. by existing Checkout, we customer should which cross-selling for customers' Shopify stack our

accounts total quarter. manage XX% using year-over-year. payable. is believe that usage Card in who our This third significant rate ICPs. the are We segment cards a the third Payoneer in take overall do by quarter, regions, their X% XX% America. we we up now billion XX% ICPs total $XX,XXX X% By was in double-digit of customers in Our $X in AndÂ it room turn there year-over-year approximately to This nearly over ICPs. represents ICPs of month and in and for contributes of growth Payoneer to our total represented to Payoneer to further.Let's region, usage, grow grew than revenues. saw on growth average by volume more XX% those SAMEA, in APAC, XX% our our Latin higher ICP grew XX% year-over-year. largest XX% active

that We add with we recently emerging continue partnered excited announce marketplace in our sellers service Etsy to to I'm new to to markets. ICPs. relationships grow

we full key relationships marketplace a the value behind significant ICPs. banking significant marketplaces to underscoring in financial Our scale differentiator stack, infrastructure.The Payoneer and from our frequently for acquire on customers built to expand contribute we've the are our use focus our

To tools are our meet we experience like trust, I'd our invest and features integrating our launched AP of large operations few platform to continue AI our are We collection greater in BXB customers. receive will feed collection of This growth, needs doing highlight efficiency. of helps and and of and We better customers. our we've a into accounts we AR drive efforts New local and accelerate remove bank the convenience generative borders to enable in globally.We processes product will XX complexities with integrations offer launched usage. now improve for volume, to our of Zealand. drive integrations our funds AP for of We locally to expanded the We stack ease, manual improve our reduce which customers, recently, financial new QuickBooks. retention, which just business customers and capabilities and the greater enhancing to increase believe our the to customers' customers. for service all ecosystem

bank now growth funds to a believe important add their our This positions flow. for needs. an account. significant enhancement from and can expenses to global customer's this Payoneer of is in independent customers proposition AR value Our tools customers payroll accounts We drive business payable us have their who

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to Investor tap the pricing priorities against customer that Day. into limiting entrepreneur For eligibility service of long-term economy. example, beginning can a This frequently local every for we withdrawing strategy we've those towards profitably our at the full closing, stack, of marketplace those to funds we our who and useÂ PayoneerÂ only phased for our ambition is about.In we spoken receiving global serving implementing the at their a our year recent seeking strategic the account. and cost serve work funds to By to and our articulated bank our reduce from executing and of business that segment-specific approach part their and are

while We in investing significant are proposition, delivering value strategic enhancing strong long-term our customers' growth profitability, initiatives. and

it guidance dedication our hand me our excited team and They financial mission. day, Payoneer results what's global a ahead.I'll their over to and has Bea to efforts testament proud are in about tireless to customers strong forward now and this our of every achieved and and detail. so Our I'm discuss far what and inspire year more results to

Bea Ordonez

you, and for joining Thank to thank John, everyone you us.

First, to want echo remarks. I John's opening

the of and life. deeply the are by loss conflict We by and tremendous in saddened all Israel ongoing Gaza

results. with a in this Israel unless noted. basis All turn to time.I'd affected everyone our are discussion like colleagues third thoughts now Our comparisons our on are otherwise with the and year-over-year challenging to extraordinarily during quarter

We continue grew a growth, XX% delivered on We EBITDA our to margin. execute and adjusted generated by XX% revenue ICPs X%, strategy.

onboarding announced and by of impact a provision BXB of provided QX to we we we businesses, and monetization improved to usage, Third $X.X customer our in approach began about ongoing XXXX customer-centric an revenues we are this XX%, initiatives up year. card checkout more decline included million quarter the changes funds, the the enterprise $XXX growth higher bundling growth Investor earned rollout implement of when our expanding client, monetization that the million continue at in something testing income our with initiatives. other earned to guidance. services pricing and revenue was strategies.We also accelerating on product pricing from of driven we In talked revenue earlier line from interest Day, to and

for we example, transaction fees recently For small additional sizes. introduced

bonds. cross-border registration fees account monetize We our our are strategies significant well expanding of payment to our potential testing also as as in-network

far, better that with believe volumes in customer billion, there changes have opportunity driven volume prior up model, as BXB retention accelerated pricing, unexpected versus to service trends throughout We was period. our bundling, or the XX% to diversified to John that of about in is behavior our volume gains seen where remained and year-over-year. third XXXX well and approach retention. Growth not from aligned growth and wallet quarter improved travel share significant we also a growth e-commerce as the September marketplaces, strength stable to spoke acquisition So drive customer continued of economy volume with services-oriented nuanced large volumes. in more $XX.X year-over-year to any base.Volume our unintended has the reflecting BXB strong by or customer our one is X% X% spend, earlier, per year increased

positive verticals year. seen launched momentum with have this industry We earlier new

ability financial we points income we the from AP our driven points. single rate and $XX our utility the various from income quarter.Our by in by hold increased X% and was pricing take balances to Customer these funds utility balances real to levels the held and basis earned QX million higher in expansion stack AR in cross-border to of trust benefits and $X.X us customers, to account. the billion, us. their currencies initiatives. balances multiple third basis interest Our deliver with increased hold delivers have The customers needs interest manage The XX Payoneer a our customers XXX in and the of of our demonstrate

as as customer volumes We that grow grow. platform, our growth Over balances the seen we add into the platform see customer several features and and to past we we more should funds. years, utility robust have believe in

expect our line our investments We compliance platform macro used XX% continue and be infrastructure. fund growth to we to earned with short-term influence long-term balance seasonality and performance.For XXXX, in of be approximately in volumes, in will including while balance expect can broadly income to infrastructure, interest factors

stock repurchase to expenses income XX% of the decrease which interest offset which our bank usage operating up represented costs. to transaction to all balance We also capital was markets. stock-based costs, Total This transaction driven were partially increase. X%. from expenses our costs half compensation XX.X% Transaction Higher improvement and shareholders is impacting approximately of BXB basis our XXX designed represented with higher of prior towards businesses, expect higher and driving savings a million. and marketing plan, or and by point the our checkout increase of relatively from X% Transaction and by G&A, interest growth and $XXX increased million dilution higher $XX utilize in equity revenues the other $XX lower-cost expenses generated cost via offset increasing was period.The return processesÂ fees, to substantially from revenue, and operating income, card the program. of million costs sales mixÂ shift of year drive was approximately

expect card higher some than grow on certain to and paid faster Sales marketing checkout we transaction increased forward. upward volumes and would enterprise our million, aggregate reflecting BXB, expense funds. costs As pressure $X going commissions business,

primarily partner modestly million and flat operating efforts with increase M&A expenses. consulting driven designed to those efforts expenses streamline serve. our reductions primarily previously were and sequentially, by allowed X% $X a our regulatory regionalize, capabilities. our initiatives continued up ongoing Other of of by increased operations earlier declined and was offset sales broadly result and our third-party marketing by Excluding to expense our in driven $X spend streamline, operations drive in line function. to expenses commissions, million announced were increases and down an workforce expense legal to to organization.G&A year-over-year our aspects this us to reduce impact enhance compliance our expenses various These year-over-year outsource labor-related These year partially by cost have meaningfully and related the to and go-to-market of

optimizing increase XX% in by AI-based hiring towards interaction, result generative service have tools.R&D and XXXX a automating by platform, by due For our of partially example, workflow our of more $X end we cost in tickets by the of ticket so platform we reduced a since in million a investments processes, as resolve offset implementing organization. resources by an capitalization expense single in average the to customer declined the of shifting certain additional can

$X.XX.We We and our million roughly to continue EBITDA $XX operating million sustainable to business in $X.XX to and net Adjusted was diluted represents long-term up compared take year-over-year. the quarter in million XX% cash EBITDA the $XX of $XX or equivalents a we million was efficiency a adjusted ended second This $XXX compared disciplined loss earnings year. while quarter share this and and $XX basic year. drive third was $XX million third of quarter approach of to last greater cash drive invest was per year growth. to QX with a earnings of to in ensuring of revenue income the XX% $XX share million the margin. last quarter Net per in order million,

Our well XXX% above business cash year-to-date. and free positive flow, to our free rate cash continues conversion flow is generate

have the program buyback shareholders to share been inception our We in May. of returning capital since actively

We $XX third $XX shares, have million including repurchased approximately in of Payoneer's million quarter. the

repurchase for outlook. our shares expect approximately the to We million full-year.Turning of to $XX

our adjusted revenue XXXX XXXX We and are reiterating raising EBITDA guidance our guidance.

million have XX.X%, $XXX our For be $XXX to be or our the operations both is full-year, that be current as to to million.Before to and to ongoing we testament platform our drivers material impacted on on been of and infrastructure costs revenues war the into and of And a This the teams situation, like don't guidance, the anticipate of note between operations not I the adjusted business. or our business the by in $XXX transaction million, and dive revenue any Israel. $XXX disruption we to impact updated our incredible I'd EBITDA based expect approximately percentage resilience between million critical a and to ground.

safety, and our prioritize health, employees well-being serve continue we to the that customers. to ensuring of We continue our while

XX% relocation includes $X to are our ongoing quarter based guidance the XX% fourth assistance, impacted physical approximately Today, in one-time into there. to Israel, and teams our financial latest called research employees reserve while and in costs, in response of have our in place based approximately Israeli contingencies our million related support and we majority, to the expenses duty, roles including military been development Our a of employees are in less and well-being.Approximately mental conflict and than Israel, of have cover to programs XX% responsibilities.

our geographic outsourced and to broad us business and operations operating model continue footprint Our serving customers. enable our

guidance noted, revenue have we reiterating As at this our we time. are

and continue key in We long-term conviction to strategy have opportunities. growth our

October, XX% see guidance we usage and growth current the growth strong $XXX We where balanced ongoing interest improving We interest commercial $XX are our generating increased of adoption strategy.We business million, now trends forecasts and and in volume our We our customer-focused was full-year. products. consensus business, card to BXB by for in Checkout and rate driving in our of our income see million are expect monetization increasing reflecting for to income the be benefit performance. expect

quarter. increase increasing offset business fourth as and the by to We from uncertainty macroeconomic geopolitical expect we be begin in near-term this interest impacting our income headwinds

assumes our customers represent we customers guide will softer we from revenue. X% in are Revenues ex-interest impacted approximately result, million. income where activity a revenues As anticipate term. in by Israel, in total reducing our near economic revenue of Israel the $XX our our be This from

the scheduled instead.And early conflict, inflation for launched November consumer around spending but monetization certain early the rates. in long-term environment, business interest immediate in broader initiatives the borrowing in longer in delayed were macro we elevated for aftermath and implementation the see October that of we higher and Additionally, lastly, proactively of increasing from uncertainty

our Cash adjusted guidance We $XXX less OpEx expect million. less EBITDA. represents transaction OpEx XXXX cost to approximately be for revenue cash

efficiency areas for of business maximize to competitive to We order continue our and in deepen resources on available for to operating high-growth moat. focus opportunities our

our track ending year of to on commitment on deliver headcount started. the where with We lower we than are

conflict we XXXX, September, We higher in our third the plan R&D our well where to Israel.We in to Since mentioned to adjusted between to for fourfold XXXX the the of This previously spend EBITDA high-growth related we've and the high product as XX% be the opportunity community. for margin reflects $XXX reintroduce to are the the hosted Day, adjusted higher quarter quarter, to and of be a marketing platform. and going continue regions, to in a Investor as in on response seasonal financial than delivered we our operating expense spend raising versus EBITDA increase reflecting expect offering, investor In spend, had guidance XXXX number first expenses, including seasonally fourth adjusted ICPs in impact public $XXX higher EBITDA our million XXXX. Payoneer million. performance, we guidance rate increasing growing our exceptional take expanding and and primarily

Our priorities unique efficiency higher on focus adjusted execution for driving against margins. consistent and our to lower our pleased these third see is costs our underscore EBITDA strategic and quarter value operating that results customers.We're proposition

share may are value to We long-term line. for shareholders.We have. to open to and the questions additional now are capture our well-positioned you generate Operator, answer happy market please any

Operator

question [Operator from Instructions] comes Sanjay KBW. Sakhrani Our of first

Sanjay Sakhrani

just there different about segments different I'm trying the that us that the those quarter. you highlighted. what think you've segments? to walk through were Could the across acceleration Good just happened across trends

Bea Ordonez

to our the and of noted, driving we're saw you in that sequentially look, we've strong seeing highlighted month-to-date, well adoption we've seeing We're seeing We've QX. been highlighted that really within we've like line saw actually as seen volume. acceleration business. seen, we're our some of card, versus reversed trend acquisition, XX% we strategy But of that those X% in as Yes, business some saw as in we're deceleration October, you QX ICP in know, remain we where QX both within fundamentals BXB acceleration the seen which volumes. stats. John executing. we've in the we QX, we that growth. as And And in

BXB nice we've strong in excluding growth. volumes. So trends. those and And We're pickup see seeing in China, trends of to really that continuing been some those disaggregating BXB we're growth

business, I say, even line.Â E-commÂ volumes look, as thought, to We've than single with volumes. lower much being nice double-digit.Travel but performance. the So we're reached accelerating fundamentals, to important continues in better about to really day volume outperform. we slightly in milestone performing high million our where overall, line we we maybe transaction that are are we've in yield that and Checkout pretty business talked seeing digit about a $X BXB, hit talked really low

and So into we're I the throughout as fourth trends strong volume seeing the a quarter perspective, quarter. really from said,

Sanjay Sakhrani

And that on basis? quarter-over-quarter. Those a then like how think just go-forward take rate? that on a declined of take year-over-year ex float. a And What basis the on both follow-up should were drivers rates about a we and

Bea Ordonez

of we that as but in Yes, card obviously interest top-line of take to absolutely. lower BXB That's that float, volume we've grew Look, in offset basis acceleration inclusive partially also buckets shifts about driven those by some and rate larger yield. with e-commerce mix checkout noted points. come income and by XX

that a about are of to So of X year-over-year that services about Day transfers that rate it our platform.So our enterprises very that have revenues XX% account meaningfully, take expanded interest about look business volume income, that at of at that provide has do yield using that platform the much talked point. our outperformed of XX%, for on if into on who facilitate at customers to of look, And but right? And Investor account grown rails. speaking, enterprises to to those by we balance active we've highlighted are business volume we're interest basis, understandably fees but an that not The kind account out attributable I payees roughly includes basis much, that customers, on talked and fractionally, platform. thoseÂ payees. inactive our an on it that and As interest the to Day, it's expanded cross-selling generally -- lower, XX% Investor who disaggregate apples-to-apples lot we there, revenue travel not some we payment on rate that sorry, on mostly have our that where an is relates that payment use rails that we being

travel yes, that impact sort And customer-led here the volume we're driving think had negative business, impacting part we're out take disproportionate of us, our that is I the so smaller the that revenue, rate there, main of disproportionate other is growth, growth is the message a really sort overall. to which take a rate in of overall But in aggregate core but expanding. business has That our is aggregate. important seeing a

Operator

Co. question comes next of Tandon from Our & Mayank Needham

Sam Salvas

Nice soft on is which This what's rest Could pretty here? about quarter. results than Sam in a you're seeing? this what the off that on to more forÂ MayankÂ today. talk bit markets the seeing guys came And start America, North just in you're you of this revenue I different wanted quarter.

Bea Ordonez

in we from Yes. Look, fees. coming main headwind third we full-year is beginning non-volume what impact XXXX into had in the our there that But quarter, guide. the highlighted

historically from certain million services. those effective earned onboarding And in we for that out fees in came were QX, the $X.X an client enterprise fees, these QX. So quarter, about those

So just booked. where that performance North were it's America they disproportionately really skewing

Sam Salvas

on And since that. acquisition recent then new kind Spott there just update for any developments a you any announced if quick the see wanted and was follow-up, to of I of guys

Bea Ordonez

No, sort be we call. look, happy of We're as it, said the integrating closed on to team. really we that great last

going think that's just handle and capabilities really into our to we it's enhance insights sort grow real-time that to help because announced on to the As sort data business. And better manage framework. more part a that's underwriting and enhance said to we business. strategy manage originate have us real-time us of risk our and But data really going bring and data we they of broader overall allow how that deal, underwriting we'll of integrate of better I real to sort expertise when to book the of the

Operator

Our from Trevor next Williams question Jefferies. of comes

Trevor Williams

go BXB to second. for I back want a to

if the If that's this you prepared think I unpack could of of you buckets growth you helpful, seeing on into the could that some both across and mix geographies within how kind remarks. your But ultimately pieces us laid the and some in it's of the volume Slide for X some the on guys chart, hit potential that medium-term walk there, moving through expectations of growth of the diverging of XX, BXB? you've feeds out and volume rates you're take trajectory rate have

Bea Ordonez

now X% from And acquisition talking level to and and Overall, at set a see we've different saw John aggregate, trajectories. by those sort as saw in again, we growth, customer the quarter, we're in seeing the impact in your the it through talked China a from really look spend in seeing to dynamics BXB the strong volume that focusing QX deemphasizing we've about the our year, Yes, XX%.To heading of sort talked perspective, that we service-oriented -- which about and we in now ex-China in very quarter the sort up again, X% in really of seeing quarter volume, volume. talked John do XXXX. acquisition growth about efforts this of we think, on long-term from strong that in view about take of deemphasizing look, make that contraction and this Trevor, the growth. volume. acceleration third an if but close ex-terminations XX%. of our in accelerated strong and highlighted economies about. volume that we're October, throughout opportunity a saw by and They calls. efforts -- the In past, really quarter performance very grew China. half of about the strong stable we've we makes we to that point, disaggregation book QX, perspective up from really as market, And of terminations economies rate we've -- as BXB as up our there, is total year. favorable. we've there talked metrics really overall XX% lapping China volume been less noted, look, than highlighted, that from of in other the service-oriented been volume with seeing there, we've we're the that the per in those really I We XX%.And back as of But half the of and the that acceleration into We're something compared been we're we've business, business, the pleased are current about total It's

around blended the book a or basis than business SAMEA, take of LATAM, XX rate in higher those APAC, points. in in markets, So X% versus China

as be it's take So in certainly, we good going in to BXB to to a a significant not that your question, be and term, 'XX, long going positive it's see growth driver. opportunity. to those as China, Short-term, say, accelerate revenue. tailwinds drag growth I revenue. in of rate dynamics other And terms regions, a not we're to to going

ICP really set, on and great good market acquisition, dynamics. So service-oriented driving rate economies take we product demonstrated and those remain super focused

of to book grow volume year So Investor Day, can XX% grow continue we're to or said business. this excited as be And good able at this we more. next that to by we feel we

Trevor Williams

of give how sounds to seeing versus can month date? any growth trying ex-interest just kind the And QX throughout more has it to what in mean, income you're QX, taking implied QX BXB, down and you're I on it October detail I'm in seeing like square. -- acceleration then QX trended volume then nice you're you how but revenue.

weakness in any cautious you're kind that's the more fourth for pockets sequential of of curious quarter-to-date seeing I'm driving So if at quarter. volumes, the outlook least

Bea Ordonez

October. noted, throughout into saw No. We trends. the we're Look, and seeing as you've third quarter accelerating that

the quarter in So XX%. those from October. accelerating were And about October up saw in volumes That's are We've in X% QX. aggregate volume sequentially growth we again, volumes third XX%. the up highlighted BXB numbers

performance strong continued from as main nice seeing So have travel drivers growth. we're the as the sector to really a largeÂ e-commÂ performance. well Again, be

that QX of factors about, talking in exogenous sort we're remarks. about our So talking we really softness that that of highlighted we're kind prepared

And monetization Israel. from frankly, Israel. part situation. we paused of immediate got while pushed our expect releases this some aftermath It's very the of So from the we revenue softness a of further in in in proactively those of we're factoring a of that revenues again, big we, some code not in from the out delays. in measure factored that the customers near sort do crisis some the softness revenues future. all in term, the And But did QX.We into We pie. in

So in And we geopolitical than with the of the see factored had economy we head common in. our we consumer landscape and QX factored sort many broader a in look, more we peers softness continue emerging pressures just of into little outlook macro as we and around spending. business in to our as that perhaps in

Operator

Kennedy Our William Blair. next from Chris question of comes

Cristopher Kennedy

talk some Just you expectation XXXX. macro revenue for -- Day, just of Can targeting going talked the mid-teens for back to you the believe the about that about Investor talked given you I growth about uncertainties?

Bea Ordonez

mid-teens calls that XX%. and quarter, 'XX in said is it's and on with consistent guidance Russia, So it. working have income our exit you great QX guidance non-volume a give at growth of of roughly right? we non-volume take worth at we'll be we've say, the 'XX fees, million fees, from ex-interest medium-term years. what adjusted noting, which our quarter revenue year.We fully on lap apples, into the apples end lapped XX% and those look, that this EBITDA impact revenue medium-term would implied prior I'll the conviction for seen will October. it our obviously exit we in of of which Day Yes, with at guidance, September, the latest through excluding based noted, that targets strategy sure. you organic, executing our $X.X growth targets in of would again the Russia half around 'XX. guidance those line when significant first Look, And for end Investor the is at to third at We excluding margin in February, acceleration, But we we're as formal for Look, our and per

So acceleration term the very confident lapping headwinds in to volumes accelerating business, those our the that highlighted, going with growth revenue that that we've targets. QX, that all in those we're significant over hit BXB Checkout of through and our QX medium into we're of mind, and

Cristopher Kennedy

And then Payoneer potential on about the any prepared remarks, the frame account. John the with you way yield product? talked can that associated Is Lite there

John Caplan

in stage go-to-market rollout Sure. thrilled our analytics the TheÂ PayoneerÂ LiteÂ is our its earliest have product in put I'm teams, our with teams, R&D and teams, teams our place. business of work

that are cross-border, of have stages, smallest ICP take that we a reducing take sized is growth, and planet for folks customers -- into our it's -- rate you yet rate those. in reduction could smallest use a haven't year-to-date, our business seen enjoy a because -- portfolio is higher our the product rate around driving that in in entrepreneur to doing in and its our efficiently the we it ARPU higher but of for rate we've very increased serve.Every that customers. us capture step to theÂ PayoneerÂ account. is them take cost be X geographies higher cost and reducing has want that geographies which towards enables the our customers take formula we focused And cross-sell for serve, product We AndÂ PayoneerÂ Lite million today, and per and to on to benefit cost XX% love earliest it's higher on a broadly expect ticket highlighted our

and I a have we useÂ Payoneer. the past, applications people in of you X to want As who get year talked about million

ourselves that we the such to so. path make do them on And we're serve to profitably. it organizing can are We

Operator

Mike of Our Securities. Northland from comes Grondahl next question

Mike Grondahl

future Does pricing contributed And to that expect quarters? initiatives increases kind any way ask wanted is out you been about of you've doing. that third what and I a represent do sort the further full can increases? price that quarter And you of and to benefit in those the say break quarter of there revenue?

Bea Ordonez

the that sort much not of of as and potentially John viewing they has adoption really while of of third kind costs really of has our nuanced products But don't customer-centric in-quarter we've kind driving and driving has fourth which approach we serve of around and strategy as gains sizing towards wallet pricing. view those taking not. that was multiphase that a have Certainly, talked bundling needs, serve quarter benefit bundling better approach, it's And about of also prongs. sort adoption higher-value to a right? of because impact our getting progress just One, need cost that of to too. and products it more sort of offering the sort share more quarter by rollout a around or Look, segmented of reducing some associated number our it as of customers higher we're them.It's a we're at, a particular of not impacted pricing kind potentially products with the

customers. we talked at this We already. many or really said, about FX in that churn looking remarks, I as monetizing of fees as QX pricing. view QX, rollout, fees meaningful been noted certain in account small volume success, as our We're over frankly, been tremendous overall, seen And levels, there. those long-tail very multi-phase we successful also launched have very which at in his We've some we So smaller we We've transactions, prepared John a waived seen as effective. for launched haven't we quarters. they've think in and

unintended don't models test approach. friction behavior. a say, to doing we're out of multi-step example, it's an bundling roll kind As I that talked what ensure customer account makes of for of pricing customer-specific part, to the see that Lite we And any a different business and to about or impact to sort little and that sense we continue offering.So going kind bit models we're as

testing. that that and fees, in fees the intranetwork So see that. platform. that close don't at we of we includes is of that volumes we've our that the registration monetize today, That through billion cross-border about we in-network flow our see half coming which includes for $XX platform almost to Day been We Investor talked

at looking we're So we and all segment needs sorts the customer that do of with aspects their mind. ensuring and that in really

Operator

from Our Joshua final of question Siegler Fitzgerald. Cantor comes

Joshua Siegler

into if First there's capital and flow wondering increased allocation you're with free the moving the forward. how to about update I cash foremost, any was business, thinking flowing

Bea Ordonez

very mean, we to a SMBs as of capture I see operate. and tremendous serves a us Look, Day we opportunity we significant in front grow Investor which that in Sure. opportunity the market outlined in at markets in

that and drive say us our more opportunity. organically, given look, balanced our cash see is more this business. part foremost, overall, given overall. excited. being plan. we're and returning our over best continue This brand, tremendous capture income We would So position to to and generating close certainly buyback allocated comp assets, that long and plan in both well. million long-term XX% to revenue or drive in the drive strong go-to-market M&A, leverage, investors. the that's $XX we minimum, to and and I to we've our talked that apparatus overall organic think given opportunity But trajectory. more this look, to distribution, capture course, ARPU, flow about more dilution returning efficiency, into products going first stock-based positioning platform opportunity grow our then invest think offset we a interest to of to these a our that as there really capital we're our target year.And services in unique opportunity, our for fair look at in term, while to We million that We to of using stack to that integrate share And to, our local more financial markets to from by drive to year can are our $XX That's it's investors capital of

Joshua Siegler

I wondering continue expectations. live. collaboration with mentioned e-commerce this given especially if volumes Etsy might think Bea, going And that that then, XQ, you I performed into tailwind was better than

Bea Ordonez

So just of That's ramp From these good overall. and from we're seeing so a for outperformance material is I And to revenue bucket. deal we're came sort agree an relationships e-comm no There's and to think onboarding as this event. have we or perspective, a specific outperformed single looking to while this. year with thinking think takes We anticipated 'XX look, excited to overall was signed digits very would seeÂ e-comm,Â I Etsy, that e-comm far, Etsy. up in 'XX. number. well, line volume a of October high sort into that in you that we're It that,

I see at continue. reason wouldn't any don't So point, to this that expect that,

becoming about into shift those Q&A their of consumers mix larger sellers. their Amazon that that some seeing I more larger moving to remarks and though talked those It's are think of price-conscious in sellers. We something preferences buying kind around or

well. seeing shift are as we So mix that

strong but the volume into that as the we're overall, So platform. as performance the pull-through to isn't revenue volume come see to excited

Joshua Siegler

Congratulations quarter. this on execution the

Operator

for With I'll hand John Chief Caplan, to that, Executive closing back remarks. Officer,

John Caplan

this Thank our you, And for everybody, to appreciate morning. with about look of you. joining support. opportunity, continued for forward your Payoneer's confident all and quarter. questions We next I'm thank you us that, again with and shareholders' we speaking

Operator

gentlemen, Thank you call. this and joining. concludes Ladies for today's

You now your disconnect may lines.

Payoneer Global (PAYO) 8 Nov 232023 Q3 Earnings call transcript