PAYO - Earnings call 4 2023 | Payoneer Global Inc.

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Operator

Good morning. Thank you for standing by. Welcome to Payoneer's Fourth Quarter and Full Year 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded.I would now like to turn the call over to Michelle Wang, Payoneer's VP of Investor Relations.

Michelle Wang

Thank you, operator. that call Chief Chief we subject Financial like remind today's Caplan; Officer, begin, to on contain to Payoneer's may and Officer, you risks me and are which Executive Payoneer's John I'd forward-looking uncertainties. With statements, call are today's Bea Ordonez.Before

These of the we materially Relations assume to except statements to more the payoneer.com. section financial company forward-looking For GAAP them, with Actual should please our make from today's available These which of measures. measure are law.In results addition, nearest the measures in on intent found to refer which available can release, call website. information, instead may differ any any of be press statements forward-looking considered update in today. filings may as to today's GAAP and required non-GAAP is addition earnings measures. only our SEC, as the or Reconciliations include speak in be by obligation not Investor today, not does and

like unless call we noted.With please begin. are presentation earnings our on alongside today's investor.payoneer.com. an year-over-year made release posted over on a to basis Additionally, John supplement press All I'd call the earnings that, comparisons have to note turn on otherwise to

John Caplan

margin. Good morning. today. EBITDA joining growth adjusted for In us XXXX, Thank revenue you XX% we delivered and XX%

pointing key interest right we accounts, the performance the approach business the performance direction. Payoneer is efficiency.As unlocking disciplined we on direct result ideal the of all earn our strong of to exit customers, on our Our in our are focus customers our funds indicators in and their hold XXXX, increased our

basis ARPU points by or take our income. up and in X volume, Customer generated for million XX and grew our meet We rate billion million XX%. increased in active total ICPs We X% interest grew We ICPs. who XXXX. Ideal XXX,XXX when We X% exclude have X We approximately customers you of by active by XX% customers our $XX annual by XXXX. Profiles

trusted customer funds held adjusted evidenced quadrupled year-over-year. by over $XXX up results We Customer in $X to X% our our by XXXX XXXX.I'd put are versus customers than more like in million, accounts. were funds EBITDA context. Payoneer billion of of

We serve we have we discussed have that certain directly, relationships primarily although enterprise before with also SMBs direct clients.

SMB uses transactions, SMB to a customer customer accounts accounts revenue. when XX% and loads customer's SMB and account. customers vendors volume suppliers, Payoneer and XX% volume bank from account store a hold the represents our enters BXB our multicurrency overseas Payoneer of manage funds their payable of partners. Our funds direct-to-consumer business from web customer account from and approximately sales local their and with customers, receivable marketplaces,

of our are we product with Payoneer account. and our enterprise from and able an Our limited therefore, recipients ICPs business and directly branded to lower-risk we a we And geographic drive platform, in account, business, greater extensive cross-sell can bank are Payoneer opportunity our payments our increasing because a clients which of have them drive don't into over are make in a relationship have, the because customers the relationship and marketplaces payee's To offering them on This large reach. more SMB to monetization to directly to our payouts payment more also the send breadth volume enterprise operate turn, benefit SMB use over is own accounts. to rails which stack local to bank we or time. grow the adoption number scaled, financial valuable time.We

have Directors. today, utility to Board and our CEO of ago XXXX, skills X of progress reflecting sole adding our customers.I some exactly team and Payoneer financial and the We experience the we among enhancing our also our increase bolstered our almost stack are highlights. in to We to executive made upon year tools the became AP

more our our customers [ We XX% recruited of new APAC, biggest long-term which also resulting believe that even delivered leadership delivered clarity We in opportunity our and in ] volume. company, our modernization greater growth markets. have a drive profitable take aligned ARPU the SAMEA do and and become to in drive cost we to XXXX, more Payoneer ICPs platform. an LATAM.We our and faster regions of and month organizational most growth. in will growth ICP valuable of larger, $XX,XXX ICPs, XX% than SMB-centric go-to-market focus, focus We including higher X% We to serve the higher-value growth organization is on in rate

we we new in in non-ICPs Payoneer's our up are XXXX, continue on driving our release And customer program to focused which in of the losses. our business, support and million. in acquisition $XXX December by the resulted XXXX to via X/X AP in a X% which of on increasing is to announced cut inquiry operating increased We and accounts.We the to source velocity new of working meaningfully data to customers. are authorization and segment we X versus activation a regulatory the PSP losses we our XXXX, fourth drove average of approximately We've In the pricing of increased year reduced XX% operating monetization reduced features initiated customer represents headcount in initiative. approvals by conditions. improved and by that $XX solutions. acquisition lowered due in a this customary to of million Payoneer and over tools closing self-funding This small capital in repurchase XXXX of of May entering the employee monetization, of engagement.We cost share We XXXX, as ago. volume local $XXX non-ICP faster China, quarter as the work first a year-over-year. nearly total increased a space to acquisitions We our strength million closing licensed account and We towards closing subject our our

of ICP and retention to proud To Services by and we specifically working improve our our customer strong we our team customer trillion strong results. a demand, monetization.In hard accelerate Merchant increase the to and are fit opportunity progress, in seeing are acquisition, businesses, these work BXB believe have product BXB. are and we deliver market We $X drive

Our XXXX, volume in saw BXB focused we the half in business as drove second in over $X XXXX, service-oriented volumes accelerated by grow and volume expect markets acquisition XX% XX% growth billion and of we Payoneer XXXX of XX% the now up growth delivered BXB XX% XXXX.In upon. in in of on we improved fast-growing on accounts We to and are SAMEA continue these XXXX. LATAM ICPs BXB up XXXX, into level from and our volume, regions APAC, BXB in take differentiate plan service our customer in in to markets further based higher efforts we size. service-oriented large sales rate make focusing

Black Cyber sequentially full business and XXX%. over growth growth segment-specific our to business accelerating initiatives the million in We up confident customer of pricing the more the ICPs. larger and ended Merchant functionality XX% that record drive expand also included better quarter within and cater of successful to needs introduce greater to Fourth stickiness Monday drive will plan execution during year its volume with weekend. Friday product $XXX sales BXB these We're volume of our BXB over was to first business.Our Services on of

checkout with this of account. given sellers that emerging international approximately larger billion markets. their $XX,XXX on into volume, in to good Our We to [ in our are product, we want sell payments our our customers significantly relationships net half $XXX DTC believe direct customers using portion Merchant of their Customer which extension Today, strong AR than branded Profile. new Ideal ] receive a Payoneer.As over December, to our Services Services Payoneer, is customers, consumers of have business natural of receive the over Payoneer these monthly XXX average, market for Merchant

to we As anticipate our this the we momentum market, continue. to product introduce

We into have momentum strong XXXX. coming

Bea We financial making to more multiyear our our discuss digital detail. and pace in capture the guidance and at it world's over to securely reliably now connect to are million progress economy.I'll XX and results opportunity global more SMBs hand the to XXXX to

Bea Ordonez

$XXX EBITDA looking sustainable, SMBs These you, announce attention delivering company's XX% Investor on EBITDA, and We September. first to $X focused transformative for laid available growth joining supplement common ICPs, a the your Payoneer and investors to our the of optimizing Thank million in opportunities earnings and offer I revenue end to to briefly is and an and trillion market a XXXX, hold the to purchase in our serve we to company increasingly proposition of like in on first global better alongside to you margin. up are year us. our XXXX XXXX. $XXX were operating efficiency. authorization and December share Day to of reintroduced earnings we our to We of release. growth, a the refreshed representing Payoneer's progress delivered and our to acquire Payoneer. capture in for improved for We strategy and website through delivered. results, fourth XX% company million pleased ARPU our testament stock quarter the turn increasingly customers, unique digital to John, everyone out meaningful we're thank adjusted capturing economy.Before initiated value repurchase program, shifted presentation, direct our I'd generated to to excited opportunity.We a focus which the our made adjusted was a results profitable We

investors. turning up fourth some improving disclosures execution breaks helpful results. accelerating Merchant usage $XXX additional believe to delivers our investors BXB of We committed card disclosure appreciative believe by greater interest growth, will driven volume to in and are We our funds, is and and income dynamics. from revenue. ICP our we've additional steady our Services this customer Revenue XX receive model take drives showing enable information going into Page network XX%, record We the strategy supplement, and volume and growth forward.Now feedback million continuously was how in to to our our on enhancing continued the quarterly of this rate business. of business that included the of we out better our continue quarter On

an our of the year prior the period impacted by in for client. rate revenue onboarding services million reminder, $X.X revenue from earned of provision a As QX growth enterprise is

the marketplaces, for at growth sell would impact that fourth marketplaces particularly of reflected with trends our growth businesses. Excluding as BXB that revenue growth sell have larger this, Merchant accelerating volume SMB XX% customers XX%.Volume been strong on Services our and as e-commerce quarter year-over-year customers in well the on

continued volume, which volumes. saw also growth in enterprise includes travel-related We our payout

volume delivered in volumes of decline and over in growth X% third business, up in XXX% second fourth generated the more in business ago, Services volume X% year quarter XX% BXB the quarter, in up from X% million in versus XX% quarter a Merchant growth $XXX first versus of Our the quarter. the than our growth third the XXXX.We and a

interest seasonal including balances the points. ability of rate expansion especially basis Sequentially, in higher AP and expenses in balances to X income $X.X initiatives. and driven we up by points, of the e-commerce operating $XXX funds held utility basis and in our record account. their single increased take our value decreases platform. increased cross-border a increased take This higher G&A to quarter X% interest volumes, The customers $XX points by quarter.Total AR larger of driven X%, from Payoneer costs currencies fourth related Our operating X transaction sellers.Our of the offset a to million these pricing from higher was mix other quarterly and XXX towards was hold and expense. multiple shift levels investment fourth earned Payoneer the continued provides, that rates card e-commerce and and usage depreciation basis billion, partially Customer income, in by needs various million the by spend driven to from towards amortization manage benefits by in and strong were declined account R&D

with Israel XXXX X% to our operating continued the year. ended XXXX our with million driving in commitment to Payoneer to less a began expenses to Foundation.In the headcount related efforts leverage, we as support line we as operating $X.X employees million well contribution included than Before $X

million efficiency lower costs with capital operational fees represented increasing and Transaction We XX.X% our continue bank of them the expense highest income, by higher operate costs of processing as and a business chargebacks $XX a cost higher spend. card and partner commissions period. XX to increased and as in marketing driven network from quarter, the current roughly pricing the organization, XX%, structure customers growth some record prior marketing The of point partners advance higher with opportunities.Transaction by with focus by aligning revenue, lower with value well improvement losses, was onetime decrease driven on year offset and and our the improved higher from contributed.Sales while streamlining basis costs interest primarily also flat was usage.

driven quarter As to included driven while usage campaign, a year-over-year, brand certain other onetime million to and programs our driven earlier XXXX payroll use higher XX%, organizational operations by primarily higher onetime and drive expense the activities.G&A costs, marketing partially prior Sequentially, was IT was reminder, from in in in-country third-party or the costs costs period. Other down as increased by flat of and a card from to $X $X and million reflecting expense expense organization.R&D million, lower initiatives operating lower XXXX streamline seasonal of year fourth largely expense was and incentive headcount. of as X%, $X localize undertaken or labor X%, to consulting due capitalization internal primarily related sales offset expense higher expense up well expense as elements compensation decreased software. marketing by headcount

the R&D million average million Net $XX a a up $XX was $XXX $XX earnings year. margin with earnings $XX We net in period. share and diluted year-over-year.Adjusted equivalents in the headcount prior million the was compared organization up QX $XX loss million and quarter to and EBITDA of of share cash quarter. year compared the invest in to $X.XX of continued represents was was EBITDA year-over-year. was to We XX% This or cash last adjusted XX% $X.XX. XX% million, income million per ended per basic in fourth quarter our

and shares, and in of including is in in fourth inception to returning quarter. conversion program have repurchase May, Our our actively $XX the our million business the flows repurchased continues cash XXX% free $XX to XXXX above flow for million full capital Payoneer generate well cash positive been free we since year.We share shareholders of the

have repurchases in have our million following XXXX over the quarter the pace of of we guidance. now Payoneer authorization mid-December. first XX, shares.Moving We accelerated $XXX through repurchased our Friday, last million in our And $XX to February

revenues This revenue, be million $XXX between for full million. we excluding interest million the year interest to XXXX, million For year $XXX expect million and the income of $XXX includes and of $XXX $XXX income. to

excluding and to interest X% XX% $XX representing income to at of interest non-volume throughout in the our first of the enterprise midpoint line exit the revenue guidance, mid-teens of XXXX.We the impact medium-term excluding half targets. with revenue, the income million revenues expect We grow year XXXX our expect growth in to when in of excluding growth, accelerate

expect high and continued the single-digit marketplace markets that growth BXB We by volume large driven as direct-to-consumer volumes. be will related of penetration as well in acceleration

is than product our of in We take working. expect higher and that to LATAM, rates our given volumes year-to-date strong BXB focus are in XX% sellers as drive versus ] We business by and Take are in like performance rate take as basis to improved grow rates believe decrease approximately markets intend to improvement XXXX, take this rebound, monetization take and to to expect points. threefold using BXB strategy in as performance customers our seeing the among our to service-oriented is overall, on we align well of opportunity product we new to Services BXB FX. year implementing non-BXB better deliver XXXX, in the based pricing will Merchant regions. XX corridor these merchants in strong our also basis Vietnam. this monetize serve pricing to adoption demand on our have up to significantly continue take and share and and [ expect business.We higher existing XXXX.We wallet rate X% see to volume rates, We critical from SAMEA with in In We point to growth our while China of grow take impressive remain strong we in our customer of a higher year we markets road rate which rates to more will efforts APAC strategy changes improved our refine XX%.Our which BXB north we capture. further to China some than over volume better segments acquisition map China XXX% take expect number BXB rate pricing to X% drive XX continue volume grew Checkout saw

related expect models significant modeled rate continued $XXX broadly with balances, year, pricing million various is the market and for in based test in customer to line and opportunity.We weighted interest volumes growth of this meaningful our in-network continue generate which believe a interest payment represents to to We expectations. on income volume probability

different be We are duration small rate longer-dated funds further to portfolio higher transaction Services adjusted products recently costs U.S. business but duration optimize discussed, impact course has less classes program.We taking the margin EBITDA.We of anticipated portion the at XX.X%, portfolio expected our midpoint. XXXX and cycles treasuries. as adjusted $XXX expect by our over over potentially been launched to transaction this to further like representing we a an short transaction the of expect $XXX stream the assets.As less for and which rate previously A to Cash X% business OpEx grow adjusted XXXX. and of cost be $XXX we million steps percentage through and extend cost prudently approximately million, in program growth our and as take mature represents EBITDA revenue to shifting approximately XX% to today, a higher funds EBITDA the towards our the very is begin between manage this revenue also to other revenue investing a Merchant BXB, extending interest we as of be in expect customer of of mix million, portion year of customer invested lines reflects investing cash approximately asset guidance represents card. which but of to and OpEx

Our us ARPU monetization value our to position strategy questions offerings growing our optimizing now market, ecosystem is and deliver create customers, unique optimizing We continue for demonstrate value our expanding XXXX leverage our answer ICPs, enhancing results please our working. improving that retention. may of to are share focus our improved shareholders.We delivering addressable for product to driving plan and our the and on assets, lasting happy breadth believe to We and relationships line. market our the further Operator, and expand have. you scale any open and

Operator

question Our Peller line with comes first Darrin from Instructions] [Operator of Research. the Wolfe

Darrin Peller

-- Could the growth we the Day have at but levels, as X% it's back I on a now the today start bit some [ and ], to from the timing expectations maybe in changed you ]. mentioned I know then through just lower. Bea bit [ getting just level of about September little for progression cadence we going really year year rates maybe think know revenue the those is margin on what a the for from also might I And and mid-teens of some of your 'XX growth of Investor what, progressed, nuances expected a maybe higher talk terms the

Bea Ordonez

and XX% growth that saying an middle midpoint, normalized today ex guidance with as interest again, the reflects on Yes. guidance December, rate Look, a at in and our from reiterating perspective, income as we're said of basis. a revenue we the

and you lapped with we're to X fees. accelerate strong headwinds for the in sector.So revenues, as the our come we all if lapping termination look sort so sort we in lapping growth impact you mid-teens the in of take We're termination we of in travel we've So much line accelerating broad the think, a accelerating to as discussed and increase impact our XX% know, those a the income trends, rate exiting non-volume as interest our importantly, some we ex XXXX, that to non-volume highlighted but I at from the more And the when from medium-term very and much XXXX, as and targets BXB our of related lap we that of things half X guidance see again, year. BXB exit BXB exit of of Services, back business, off as mid-teens at for momentum accounting of be in very those of table, Russia. growth customers. question, we And the rate apples-to-apples of Merchant the through calls year that the fees. We've especially expect We're to XXXX. your you related volume those as like, throughout said, those when impact lapping

in the is the BXB very seeing into really momentum business. So large very we what December. We're said consistent our with encouraged and our 'XX market, are take with that that And guidance for We're increased overall, dynamics BXB of from penetration overall stable rate strong and business. momentum. marketplace indicators look really that showing in stable growth, we strong growth improving economics the of for overall many

Darrin Peller

just be was for underlying my guess your I and maybe story follow-up, big a of part also. around ARPU, expectations Okay. growth which

just pricing. still [Technical know quite levers have on I maybe Difficulty] few So a you

just the help fees drive year? similar intra-network take So you quick cross-border to monetizing volumes guys some in or fees some the lower of the instituting of or rate volume a where maybe on update account expansion maybe

Bea Ordonez

capital, as strategy that even pricing. and We know, XXXX grew grew interest in from our excluding if Yes, is strong much you and that by stool, Investor absolutely. driving leg like, more ARPU. overall we really of you improved from BXB, X% XX%. really the ICPs, income And card pricing Day, acceleration that, sort optimizing signs there's We focused as signs. as in second by at ARPU really early ARPU and on strategy working Look, the is optimizing growing ARPU segment-based noted working of

product by 'XX.As year, many, drive us bundle, about corridor-based really much then monetize look, very highlighted So which Day, finally, we focused, cost strategy, as segment significant manage to that fees, and noted, to allows half that you additional to that better able improved talked in see more differentiated more pricing around made meaningful we're much our into launching FX on really Investor segments doing able additional to drove bundling intra-network better and initiatives. segment. half to opportunity were look serve launched there intra-network designed or last is to different And a been of and see XX% those some progress intra-network our 'XX, monetization in we ICPs close and yes, significant for account we pilot that and billions our many on cross-border. more across focused 'XX.And pricing broader important to opportunity and we've through our of We QX million Light which late is We annually, which ARPU And bundle of more X.X And offers within to at we fees specifically increase flow test 'XX. for we're gig portfolio. that routes in introduced year-over-year. and Account than workers We've ] pricing development last significant in freelancers more you [ mentioned pricing, the fees. uplift uplift almost our nuanced a we year, flow see

in overall, success and to value significant more here. meaningful saw there's 'XX, but think So unlock we progress I

Operator

Sachs. comes from Will the Nance question next Our Goldman of with line

William Nance

relative exit long-term gap the X benefits in investors of expecting or your in sustainable, the of get targets that if guess, grow between some should X basis. part ask guess, you those do what of that in growth how consistent the framework? first things are year in you're the a about on that I that the particularly mid-teens, to the the pricing more could target? on see are ending long-term business? And to telegraphing rate I you're confidence long-term just where you rate kind to maybe minds, that recognizing there's And the I in that, underperforming mid-teens guess, to I then how year talk XX% growth bridge just numbers, is wanted

Bea Ordonez

coming have growth most that does second are trajectories basis are headwind headwinds 'XX, the $XX non-volume those are early look, that momentum, We in we've saw a of of year-over-year notably impacted off a those strong as the that in on that only and we've terms terms both the come said, million volume XXXX.In imply off. highlighted, year from normalized a XX% headwinds take there's we that after quarter, do a about significant and Look, rate Sure. as throughout fees perspective acceleration. fees us we assuming and in certain that

performance our strong there, portfolio volume expect very that take defending And lapping as we've again, in look course growth by we XX% that high Our and 'XX in rate at account guidance look revenue and our year. over some of a overall, from those But economics the to for for bit conviction marketplace, really we of expecting single-digit trajectory -- SMB over improving modest stable.From that the trajectory and on of geopolitical there, stable some if total grew around near-term 'XX, the double-click guide now really little and a successful underpinned potential components headwinds a take the from are into e-comm into We've at business rate. the volume we're selling terminations. volume really have certainly headwinds in consumer within 'XX, January, XX%. and been degree for account and holding seen over we from and BXB 'XX to look perspective, course uncertainty. seeing does we as volumes the muted macro of for But by just spending more we at

expand by from able take on us segment for to working. the strategy and our rate Our service-oriented additional BXB basis points organization focus and large in We we perspective is ICPs 'XX. there were a in markets. that important volume, We're driving XX

William Nance

pieces that to in tried guidance, Got volumes. was get December. lower the get it. guys this appreciate out a felt that in came maybe last this volumes point on the there's lot And then in guess a you of BXB on in Look, color. moving all that I quarter. piece message I BXB just on and bit I one I the

in the press seems more like intra-quarter. release kind seeing high-teens I'm So the were XX%. number of of a you messaging number It is

at are XX%, guess, guys looking in you or the same I quarter. the so XX% number And you same does can't the first the And that for true the for hold quoting? I we are quarter-to-date what number said remember

Bea Ordonez

day Yes. months, depending at at but the prior get the adjusted lot looking in QX weeds, basis came a day between of Look, to a comp versus XX% into month, the the when sort on XX% on and sort you're too not of matters growth comp rates.

XX%. overall [ and the course So quarter of from those up the ] at that's where down landed flux sort It months. of an we over

disclosure the the improving and targeting and excellent signs into markets impact positive that business part expect that might BXB from might emphasize we overall, flow a is seasonally trajectory be X% disaggregate are we the the up just is the You up in and perspective.So dynamics, take term. to X% a weaker. is from to strong this we drive QX, the there want in put momentum is QX again, But product to which important, is a bit little QX, perspective think we that over that XX% supplement really seeing long what mix is business December to large service-oriented that strong we're in really volume accelerating really to XX% in from additional driving year-to-date that, demonstrate X% has markets rate shift that, QX, down that volume in numbers a really

Operator

Our next Williams of Jefferies. from comes line question Trevor with the

Trevor Williams

you'd hear kind you built outlook business of it the like bit have but in in on with conservatism of the helpful. at that that calling cushion the wanted worth here terms helpful revenue a would sit as of the the least back in conservatism. a the float just hear to visibility there's that's sounds level maybe else be the at higher all you [ But you'd I'd the components, to all 'XX how curious And outlook ran well. how ex out be go macro, it today there's to outlook, on Great. underlying in on through frame overall the as the just detail ] frame level, Bea, maybe to you if quarter-to-date super anything I little on of trends,

Bea Ordonez

of read what No, we amount to right? headwinds in. factored you've are look, I near-term Some said, modest think through

As the of strong uncertainty, right? us expect to of part significant of despite economies. be there's the There's lingering health other some concern the some in for about and e-comm of sort a you us December, numbers to And in still consumer U.S. guiding perspective still from very developed the beginning would geopolitical prudence the year.

market high single near-term muted assumes supported some more strong accelerating look, our a towards spending.Overall, potential from consumer e-comm by half perspective, on for from business marketplaces the the back So volumes digits, from that selling SMB and grow macro headwinds both guide to year, interest with that with I and seasonally line general. that, sort could have you the in all of overall. ex rates consumer in of And expectations spending but interest, the rates, impact know interest said potential of

Trevor Williams

helpful. I into incremental all is or where customer this disclosure for out more I for to maybe part you Services. That's expected the the more helpful. Okay. that expectation is 'XX. types there's year? for to you particular, if then, But Customer is Merchant on The just if seen in kind geographies underlying that opportunity John, and Profile 'XX to really laid Checkout all service, in the just what of know base of to refresh broadly. that terms the And expectation want Maybe back some guys go customer or you've kind could just good of date tapping expansion if Ideal traction for of revisit

John Caplan

bet. You

primarily for from of saw the sell checkout. wanted we Payoneer direct-to-consumer what all their our is account this they our have able that And so of X% billion than power customers leverage significant very their goods to a Payoneer because this international AP enter -- be tools. use is capabilities their less could to currently think our of wanted opportunity they we share market. marketplaces, And AR are marketplace those our to strength market us with $XXX we large to So they extend sellers.We on and

competing is than strong we we've Xx and year-over-year. said, China acquisition, note merchants, than leadership volume way. the $XX,XXX, prepared Checkout market Payoneer. markets remarks, we're group, And XXX-plus up I a are in of new in like take more strong net strong Vietnam, held to And right, of as monthly that in significant, We product for fit, because XX% our where customers have my rate this great greater active

Payoneer adding new joining to AP we leverage we're just customers and Payoneer and customers as tools. are the new bringing new net services our for using market.So gain Now payouts and we're also Checkout, we lock retain add look AR not the marketplace joining those customers, business, and in products share in to customers our to our new into existing

So one. this a all in see opportunity, as all, big a we significant

WooCommerce. Shopify, drive will business has big and and with growth. done small It's This we'll and us. but I'm have today, proud for the to its of continue We team is what grow partnerships a Shoplazza

Operator

next of Cantor Siegler question the with Josh from Fitzgerald. comes Our line

Joshua Siegler

So returning that as real door, you're a XXXX, cash I interest with that time. thinking the we've cash inorganic increase look, you're over pretty looking business opportunities? in there obviously, the to which at about balance between cash was in was and it tailwind is associated shareholders, wondering significant how and seen throughout reinvesting income, allocating XXXX,

Bea Ordonez

repurchases Look, cash the program million our really a back puts right? prepared confidence long-term $XXX frankly, business rate that noted QX. We in free and the in December year-to-date. flow 'XX 'XX our reflects obviously million. beyond, that $XX know, opportunity strong repurchase significant do in to to in in announced and the we accelerated as It including capital we to said, as us outlooks be the our a a interest investors, continues of $XX One, remarks, all share in position it May. off things kicked the coming to you've significant to years for return to really authorization We refresh you and through last given strategy, we year, few million next repurchased in over in

$XX through year-to-date more Friday, last million. than So

actively So cash investors. we return to will

than We product investments and from that you've infrastructure going that moat, capture more opportunity. continue of more from press the as then to than to it and talked stock-based our be we 'XX that, in our made road into compliance and going more our significant business, platform grade to BXB because hires dilution really our company our 'XX in press about rollouts in from map 'XX investment in doing opportunity. in in or made We in to Merchant to to infrastructure, expect in greater And enable 'XX. comp.And we're unlock data more very our in infrastructure more drive our of towards aggressive They're opportunity. extend to our we an in we've terms We making, We're investments John. were release velocity on offsetting ] in to Services perspective, look, heard we're just [ to in going drive that features our generally make organization. we're to large help capture addressable announced noted significant do some bullish that continue release market, that value in what us

investments So we're long excited over we term. the growth drive to to really make position that those think us

Joshua Siegler

about you travel -- volume. I think XXXX? update on Got volume it. Can give then I us for an And travel you're outlook on you earlier, thinking the touched appreciate the how color there. you

Bea Ordonez

in moderating some travel that expect volume. would We Sure.

disclosure supplement volume volume the sits XX, within that on Page customers. that perspective enterprise within travel a from from So

a highlighted we've a facilitate serve rate, take profile as perspective. cost from payment different enterprise but through couple over large past calls, risk very rails volume customers to that that also we the a for our So and is this lower of has proportionately

off there. highlighted, you rate pressure saw helpful that to take line It at that customer pace volume modestly overall, out our component expect but take travel, rate think business, disaggregate look saw enterprise on a in why put 'XX. which where as on overall, in that There's when lower we largely growth see in not of 'XX, that in travel-driven overall rate. that and take all So accelerated is bucket, volume take that but is our such on payout to we growth travel, we in would business, in an it's leveling is downward grew it's there. saw I as we significant that large We payouts did, rate 'XX we super travel business not It's XXXX. some compression.As that we some

market in lower segment but important different I the sort to very serve and rate an cost think more as generally, of us, of take risk but dynamics. I trends say, still for

that volume. very comfortable we're So with

Operator

William Blair. question will last go to with Cris Kennedy the Our line of

Cristopher Kennedy

competitive today can for your updated And Thanks what's the question ago? Payoneer years for disclosure. moat a for couple on that? new the and the taking versus about John, thinking you talk of

John Caplan

relationships customers, am with SMB moat And starts excited X our XX,XXX-plus think I sit we we XXX,XXX-plus our the with active where ICPs, them, our have really customers. I with about million with it relationship is Payoneer high-value These multi-currencies and their are are powerful. manage Payoneer really using their that ICPs. and AR, account That customers to the customers international international hold capture with in those relationship AP.

to in and And APAC, new the and of think room the customers China people Bea understand, an we with have an components: into of helps and the just our BXB that dynamics, very think economy. that to for I SAMEA business that's therefore, global SMB ICPs ARPU power shareholders the component, over are our see rate take As enterprise I has we our relationship, the share a the them, articulately talking momentum providing rate important right?Our X,XXX customers who in volume an an which take and Payoneer about disclosure event Latin relationship account. [ there; business, volume the I customer we ] and as ago and and is X America, in ally economy. global did to think in the And about participating weeks gateway the are in them couple dynamics

opportunity the the It's of day, is strong with with go-to-market engine. moat regulators, it's And It's we from customers. with funds. one. our strong for the our an at CEO balances is tell thing team the customer a I me end is So greater. the strong just the with strong last the Payoneer the extraordinary hold about our you, year can I've been is organization And surprised in most that here, our year.

capture momentum the Our is capability it. and has to stronger, our team

opportunity global and capture million the in sit, right right front are very aiming where we're strong of in customers a And serve. to XX there so position we're to from us, I

Operator

this Thank additional are no time. you. at There waiting questions

the remarks. for CEO, pass Caplan, conference closing I'll over So John to back

John Caplan

is Payoneer's in and out. Thank we We're believe in team, laid our appreciate strategy opportunity your through and XX growth our happening you are as the you business best our the that support fast-growing and disclosing, on that beyond, is support. within XXXX platform will we've everybody, We're the beyond. businesses we exciting go of Slide positioned the opportunity. there capture. $X about and brand year we excited and that trillion XXXX disclosure opportunity growth power for see within so And We did much. built to your our referenced, by Thanks, a in and questions. our your Payoneer confident Bea This can

thank thank joining for us, for your and So you support. you

Operator

you That for concludes your have of your hope conference today's a call. you day. rest participation. I wonderful Thank

Payoneer Global (PAYO) 28 Feb 242023 Q4 Earnings call transcript