PAYO - Earnings call transcript Q2 2024

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Operator

Good morning. Thank you for standing by. Welcome to Payoneer's Second Quarter 2024 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference call is being recorded. to President call of like Wang, to now Vice Payoneer's Investor would turn over the Michelle I Relations. Please go ahead.

Michelle Wang

Thank call are Kaplan; me on Executive With Financial John Ordonez. Chief and you, Officer, Payoneer's Bea Payoneer's operator. Chief Officer, today's

to begin, to today's subject call you we uncertainties. and forward-looking Before remind which contain statements, that like I'd are risks may

may any Relations with intend as required are except available which statements more please by section payoneer.com. today. These speak For of SEC, forward-looking information, from obligation company them, refer today, only the to not differ Actual make we as or law. results the assume update any forward-looking and our Investor materially does filings statements to in the of

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

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

John Caplan

and joining for committed to build long-term at outlined today. our profitability. global SMB. plan We Good the proud for expanding cross-border is discipline and I'm that thank our strategy business-grade Investor durable Day, morning, everyone, growth, you In XXXX to first to September us working. our we financial say expense stack revenue

with EMEA achieve to Latin XX%, business XX%, key China. right ambitious momentum driven validate notable APAC, growth that excluding strong right and rate take both for and by acceleration goals. In growth record income. execution regions results XXXX interest QX, ARPU first a ARPU our team America double-digit such increased as strategy a in the in our half the opportunity, pursuing of have significant to our accelerated higher are and the across drove growth and IDP We we our financial metrics.

ARPU volume for year-over-year of ex X% consecutive quarter from year fourth to our quarter in services. The to grew is Over multicurrency payroll more. payments accept as to such XXXX. Volume X% goods are are QX operate. Approximately QX in XX%. QX and of insights customers countries on and more management time in and growth revenue At for now for X in climbed income X for to entity normalizing to interest million and accelerated this SMBs real-time growth the countries fees financial quarters, past XXXX currency XX%. to have the XX% of to ability X their interest solve XX%, income effect BXB pay a capabilities of growth earned don't Total accelerated sixth consecutive for Financial that $X.X non-volume and excluding operating XX% in XX% markets banking emerging the steadfast is expensive vendors and margin, X own pay these emerging X/X for QX more [indiscernible] X/X and multiple nonlocal like to cross-border or consuming. Unlike cross-border allied well. Payoneer, our or sustained least survey in we Payoneer at consistent million, on developing from challenges cards complex, in our deeply QX payments, and need purpose-built and XXXX, because SMBs target of $XX results. SMBs up solutions their operate businesses record QX ambition We delivering out cross-border to of SMB the share and SMBs local Payoneer global a their not understand was fueled as to market into local designed they have of with have countries XX% of generated and across I'd conversion, of these strong some XX% revenue recent modern opportunities. by our revenue geographies. market multiple XX%, adjusted website, or EBITDA capability X or are challenges. particularly employees and customers discipline. XXXX expense in cross-border the have and

We have a business-grade SMBs the regulatory infrastructure us payment, the upon what powering built and and localized and and is partner a is enables to succeed trusted brand. be momentum. for them compliance strong and our help scale global experience This financial

We are not done.

more who month. to compared ICPs $XXX,XXX in cost-effective more than to month and innovating customers a with product whose than those continuously larger $XX,XXX per to adoption twice We way. Within in the smaller a at are we received ICP see products more scale volume AR serve our from SMBs today, AR is

global examples in one Improving FX our recent their multi-entity and ERPs, manage of integrations cards launching place. track SMBs our with Some on include capabilities, this easier paying solution. enhancements business their spend it to this to their within their product enables customers role Advancing preferred capabilities. for directly accounting accounting our makes management multi-user

For launched customers This exchange out via features automate makes onboarded into our XXXX. fluctuations. Rolling our better marketplace. and account costs for get Lite end that account set. a for Lite withdrawals increase customers at the these they our manage anticipate new segment. align diverse rate example, reduce will most it specific to who customers our can We freelance marketplaces model currency we This from will monetization, customer and easier by paid service risk of recently so their them to be

We are speed. improving our activation

reduced we transaction account our days the from to For time X approval ago year have days a now. from X ICPs, to

strength. a is ecosystem Our

of Xolo and SMBs. We accounting for are the largest now QuickBooks, Zero, global platforms some integrated with

see solution for to a reconciliation transaction. We customers. our our customers' process for deliver multicurrency Our opportunities the integrations seamless one-stop enable

for to surveyed financial we our managing When of our the must payroll for our and AP, nearly management. than for payments and of BXB helps that challenge existing The hiring, their need. This are to important company AP workforce sustained acquisition with result is We timely, We it the Squad adjusted into and a steps SMB. as more customers. capabilities customer dedication long-term We shareholders. ARPU to XX% global accurate people their Squad intend our our base. process existing to address local capabilities our momentum. They stack, accelerating capabilities the contractors. extending value and core are accelerating primary talent mission-driven deliver tireless to announced many morning, is international have we SMBs payroll nothing unlock of cross-border communicated. In a our will customers, Squad, growth global employees onboarding, with and EBITDA paying manage driver Within already our be significant and automate cross-border wanted the comply taxes we targets regulations. this customers cross-sell and We're serve The SMBs their we platform they increase configuring believe are will and efforts the well-planned enable our momentum across so, us for borders. better margin of direct of record our revenue team believe profitability we doing of proud acquisition,

ahead We our hand beginning us, oriented. capturing and is the and disciplined team to forward. this to financial guidance opportunity are the and results of at discuss Bea increased now it going of long-term over I'll

Bea Ordonez

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

revenue results. We drove our of in income strong normalized growth, XX%. record grew volume excluding delivered momentum continued XX%, by interest and We financial QX which

Record reflected of worth continue expense return to million by and revenue earned interest faster of repurchasing Growth ongoing XX% increase income strength record XX% the XX%. million pricing broad-based of was quarter. benefit our rate during and accounts. Volume take higher delivered cash platform. Our a XX% adjusted $XX regions, ICPs, to shares quarterly in initiatives higher the and up held services a Payoneer was discipline funds growth on our EBITDA in we in driven $XXX shareholders, continued of across margin, the growth customer

XX% from in XX% volume accelerating QX, growth delivered in growth QX. business BXB Our

XXXX added we continue a acquisition sell delivering is in Our e-commerce cohorts SMBs drove and of since strength and to from strong Robust the our on of in of volume disciplined see of XX marketplaces. large The customers over platforms strategic BXB significant increase that continued the and focus past the XX% BXB beginning customer months. China momentum execution large growth, in result are we acquisition customers. strong from

We on accounts. are U.S.-based sellers are volume into with and consolidating channels the from also our e-com seeing existing demand platforms sales marketplaces who their Payoneer volume newer growth these emerging strong these accessing from China and

While today, it's small marketplaces sell up portion strategic area an partnerships a from SMBs makes of on quickly, is this that our and with marketplaces. growing overall exploring that volume deeper these are we

enterprise volume also Services generated payout. and volume We in in growth XXX% nearly XX% growth Merchant

points QX continued and year in nonvolume take basis points our payouts business. fees earned rate to enterprise due of decreased X XXX Our last growth basis

of billion. in rate ongoing by our Payoneer to expand, increasing by BXB increased customer and basis initiative. Customer the business to benefit take faster $X continues held SMB significantly funds point, take X% higher growth by Our rate pricing driven X

ability $XX million XX% steadily while and by to drove funds increase for our up X% grow income rates QX, contributed to just average were Our customer modestly. interest a interest in

duration to term-based the and of We have U.S. deposits. prudently continue on into XX, $X nearly our customer billion of as invested June portfolio. extend we treasuries And funds

and We chargebacks intend interest and believe offset coming of into reduce year the $X banking months. portfolio the card invest this programs. consistency basis and partially scale. Transaction by marketing increased benefits are to shift structure We as will increase interest begin platform in income still to X%, rates rate ramping in the decline. Total related optimization million increased costs greater increased and our depreciation period. XX%, this card product drive sensitivity merchant and This services Sales costs of higher incentive Transaction program XXX internal in driven and primarily and to up improved higher expenses from or commercial as higher of up were fast-growing XX.X% to growth of point marketing costs sustained IT-related a BXB due $XX increase $XXX operational losses. spend spend. by volume terms an from strong increased XX%, marketing to revenue, growth, primarily and expense million represented mix transaction with cost driven well operating prior our cost was continued million as amortization, and providers, by our businesses, XX%

quarters have consecutive XX% XX% in of more XXXX. QX X including growth of than in driven Our card usage, growth year-over-year initiatives

$X operating M&A-related to and was drive ICP we higher our greater even with adjusted continue we IT-related and costs expense higher expense consulting organization growth. X%. increased expenses, primarily offset offset roughly were We costs, up by lower flat by sales Higher expense G&A capitalization. due labor-related expense. year-over-year million our $X to accelerated costs and as partially was have have labor volume which Other from efficiency revenue EBITDA. or exclude million, R&D flat within labor kept higher

or million XX% current million average was was benefited long-term the per Net to to year, compared in of million teams This adjusted We basic the the $X.XX. a engineering R&D increased adjusted million from primarily and of margin product was our quarter. up diluted to share intend year-over-year and our $XX income EBITDA EBITDA nonoperating of support of strengthening in $XX headcount which public $XX by Record revaluation continue our $XX XX%. and have our to related strategy. second represents XX% record quarter warrants. Due gains last earnings million $XX to

in to represent note the quarter. Squad and actively a continue that We for return repurchased of $XXX will ended million third cash quarter the shareholders We of cash second the cash acquisition equivalents million and to of $XX shares capital and with worth use quarter. our of

our to XXXX guidance. Moving

and to revenue third reflect raising are adjusted million and momentum guidance our for heading continued guidance by into million by the quarter. $XX EBITDA We our results $XX strong for

Squad, includes we to we guidance material XXXX partial and do closed expect of financial on August which year our which results. X be to Our impact the not

$XXX year, million full and between $XXX the revenues million. we For to expect be

now of approximately normalizing of fees earned million in set non-volume revenue driven 'XX double is target interest the we for entirely and $XXX rate That of XXXX to million excess mid-teens the guidance at interest growth, interest year. We the our of while for $XX the continue by of half to Day. $XXX and growth first we XXXX Investor revenue, XX%. in be income is income million income excluding increased Our million, $XXX expect higher excluding to of expect nearly

our low for previous reflect expectation excluding our strong single-digit interest growth. mid-teens performance raising to be high expectations We increased third quarter are million We expectations for income quarter. excluding by now interest in our up revenue, expect of the $XX second to year-over-year versus the to and revenues third quarter

to relative We February. have for expectations to our quarter no changes made fourth our in expectations the

ex We expect continue revenue to quarter interest grow to income the mid-teens. fourth

in-year market We views duration for funds. at to impact our are income and of holding latest extend the interest reflects for $XXX our on expectations year. rates revenue our million the the growth, interest our balanced This of customer expectations program

prior to costs of be a percentage expect versus our revenue of XX.X%. expectation approximately XX.X% as We transaction

to continue but percentage like expect transaction higher second business towards take services half of We products card. mix the rate, and we this as shift ramp to XXXX lines and BXB, higher merchant in cost also

We for be million, at are to increasing the million full between $XXX of EBITDA representing approximately an our adjusted adjusted $XXX EUR EBITDA the midpoint XX million by XX% to margin year. guidance

Our remains unchanged OpEx transaction guidance anticipated Cash adjusted for represents at cost $XXX less for our EBITDA. OpEx, less cash guidance approximately revenue million.

second term. our Our for adoption leverage optimizing quarter value of dedicated over remain strategy stack, demonstrate financial is innovation ARPU retaining working. delivering on long customers, increasing delivering We and and growing and employees the results improving to that focus and shareholders our ICPs, and operating driving

please the any happy to Operator, open We are questions up have. you may line. now answer

Operator

[Operator Instructions].

the today Peller first comes from of Research. with Our Wolfe Darrin line question

Darrin Peller

the hear makes performance just in-network in what versus from more Nice sense your to you're in Obviously, curious overview revenues on of monetizing your coming we in or side types how traction the off seeing just on I'd volume what business. it's yield, numbers. network in raising monetizing much and you're job just of be on coming have terms inter control a able the around with expected and it's the of volume pricing sticky. that on start whether is better way to volume, And of quarter. especially than had is different our users on you're that Maybe initiatives over

can us give So on more if be color been would great. trending, that's how just you

Bea Ordonez

for prior approach. talked calls, we're seeing is we've to segment-based the perspective Yes, Look, We sure. a Darrin, define from about in right? much question. mean, you, with Thank I everything that pricing started very what in line

improved remarks, from our the That for to strategy. journey our gig said throughout FX freelancers Lite year. our revenue monetization more will initiatives. uplift pricing is seeing continue nuance As in termed augment we're account. drives us his we John multi-quarter for prepared really make workers. launched continuing we've what We're and And launch That nice and a pricing and

so will there, on the think fees, So verticals, SaaS perhaps usage our which a component we've and we offering we're drive, called goods and monetization fees services on. include improved maybe working pro into could subscription again, what market and upgrade

we referenced $XX in add initiatives, in we highlighted, the year how uplift number sort part terms as really to those and continue guide million we've a to time, that's strategy think nothing of feel overall, optimistic that, performing network of uplift test. we're Specific We as the meaningful drive flows, So exactly as our of pricing last we said about XXXX strategy. years. can expected to and to to out from that and the in inter continued we again, opportunity, broader that last good pricing we continue to

Darrin Peller

hear. to great That's

for figure if those and out a needs, couple And pricing outlook. already talked I last time. excited follow-up just it's the of just different on relatively far. but margin, just one incremental been assuming like in sounds what I maybe the to really been terms categories how then quarters? so days, your the question, you know quick where the on John, about strategy of of of a guess, so that business in it of expense not products, about right terms investments So be embedded to still as having would the that products, in you have part just good I early traction the couple all, guess, you market has cross-sell. we investing guess I of progress of in to much align first you've the just that staffing come trying last are

John Caplan

the a Yes. The of great the AP first full and number stack. in And job supplement, we team year, has half using an customers our financial through of on the are X increasing done the X products. focused shared

team. driven So our our by And focus it's working. CSM is cross-sell

and a serving excited that ICP cross-selling at XX% capability. we our will but only the cross-selling growth our card, increase have now grow can for itself. product. challenge BXB introducing to China, and the to about in into cross-border them North we stack what APAC, fees new products very America, you financial in normalizing America, the both what Squad We not they and extend look our focused is we're growth solution, stickiness introducing employees reach team ARPU contractor stack, And focuses are contractors We've with from growth; do XX% the global by financial when on say will our non-volume on the of -- top The services have and XX% those talked of customers, we adding have EMEA and ICP is Latin AP customers, that in they payroll. high-value their we our the #X customers,

SMB So easier organization, ecosystem, the accelerating and of inside with when product in we pay multiple from the in for geographies account prepared features, is with it make remarks into as multi-entity expenses entities multiple our activity. referenced a which their the with in look at my all I international their road our your financial increasing integrations the map of in geographies, multiple customers geographies, hub go-to and for

if to Let like add well. it anything there's to me over as pass you'd Bea,

Bea Ordonez

the ability on just last Darrin. guess to and several Look, improve quarters. I over we've the I Yes. question, unlock margin think demonstrated the margins leverage

in us adding out, OpEx, adding, we where to is that that's the shifted to continue as same greater us lines. At this as That's to biggest allowing we've first what's complex adjusted of team. the expenses meaningfully R&D efficiency. allow are unlock to company. I even the help us going mix And John's to for features business stack. we we our rollout which in as year, scale of time, The even opportunities flat labor think that half shifted to slug point, deliver mix called to noteworthy and the velocity our it's area we've costs, really significant our the see are and without of more unlock, cost sort to really are financial into

Operator

Our Benchmark next Mark question Company. the from comes Palmer with

Mark Palmer

Pac, congrats the during performance the what you are great the in And this quarter. we from perspective if could would on Lat macro seeing comment serve. And strength It across Yes. particular, in China, regions on you Asia strong Am various be a quarter. saw you

You various you of undertaken. the the that seeing And are rest regard? expectations that that just in what for attributed initiatives are in the in macro? is company that has But to part what the your How reflected the in guidance? year

John Caplan

Yes.

the impact The -- Latin very start at the -- I'll well Philippines, referenced performance the America, and why and growth, then initiatives, So had in I growth XX% XX% and just India, growth and APAC, is our China, card board, South you Brazil we've the executing in BXB driving Japan, really strong grab Pakistan, EMEA of when across the Bea, pricing Argentina strong growth plus Korea. don't we really organization growth. in the

think how second versus QX in guidance I'll BXB. QX a the the it the about of of and strategy to trends half look the in future, we out stable Bea both view and pass marketplace supportive year and broadly the bit the the place. When for environment into in I little to was macro talk we put we've

Bea Ordonez

QX, back to in assumptions. of to in consistent year in expect we how the some model We half said business. we our impact year. half to primarily softness we're would view back specific that the what macro And the after the marketplace see continuing in our macro Look, embed of with

original guide growth single those XX% growth the a growth So year, target. midpoint, business the high of our in in saw to to deliver half business, implies roughly full versus BXB softening at compares back our year-over-year our continues in our there to mid-teens front BXB year the the that volumes of digits, half outperformance implies the that which year. In we our in guide of the marketplace

in expecting that year-over-year So guidance versus XX% February. we're XX% we when growth issued

the HX overall, So record we roughly and again, XX% targets. normalized in growth, and half in of to would those with of imply medium-term year, the that back revenue saw much that the a very in from decel line in mid-teens again,

So We month. that really in a especially overall, far. if macro BXB would some look, room we call really There's in the bids. I outperform been because out robust And the was model strong, remains softness certainly as think thus as prudent. strong our to July that's fundamentals it's are

Mark Palmer

John, previously to about you area you would potentially bolt-on that regard had talked M&A. focus an as with payroll on

on of product addition Now Squad, with list wish the remains else of suite? the building terms in out what your

John Caplan

drive excited Squad and first cross-border. doing we to a which philosophy, we existing stack are is primary completely will, over acquisition approach SMBs on culturally took product sort We've and cross-sell management are yet and and with the [indiscernible] Yes, an and when to aligned close since look the focused I ARPU our and we're financial where X leverage and customer we EOR That's of the who base to M&A very objective. capabilities at serving all, Squad, can about and the -- we solutions team, China, CEO of our growth. spot, announced extensions payroll in and mission-driven our acquisitions acquisitions reach business

have deepen markets we footprint the Secondarily, regional high-growth in a our where priority.

the we Singapore in and our buyer will as extending lots and headquartered There is Singapore we in as a our through teams disciplined opportunities, to framework. diligence into in of Squad tuck-in M&A. continue are and of the with license well prudent that opportunities India, to in note deep and and add are capabilities You'll licensing the market, and

Operator

Williams The with next Trevor question Jefferies. comes from

Trevor Williams

pilot a Great. for to guys flows. if an intra think pricing. wanted network about of update know program you I I talked quarter, you the us give being I could ask last Yes, on -- some don't on in

or XXXX on this just rollout? if second us how pilot an any impact could broader think timing, could you a program update update maybe be then a And more you that on half give Thanks. If progressed? this if potential is

Bea Ordonez

of those product offering with what personas, the to general on strategy pricing the those rollout QX in defining line our that of personas complexity more our bundling drive of end really wallet, in we and monetization a broadway we sort and our that reduce in by and sort about talked crucially of thinking aligning how improve at the needs and we've segment-based as it engagement, continue work well strategy and to product to more look, bundling and the with cost and capture of plans is that we pricing Look, around outlined. very serve and customer. in line holistic Yes, aligning share really customer to

it. in So this be through initiatives, meaningful our is customer or a strategy. still it's driver, to We we continue from We pilot, those continue as multi-quarter pricing results. not it's in to journey It's XXXX and as meaningful in revenue to in part there We broader we've and meaningful expect going sort called more a we that terms launch a a $XX of rigorous strategy. Specific with We're can uplift being again to not to we understanding out. line be. to think launched it reaction 'XX, opportunity somewhat guidance and see 'XX. the come really it of roughly well. We're as more more of uplift very the think where much want million and in lot in in

Trevor Williams

for what's second And the on just then -- half. a That's Okay. is implied great. which follow-up

within there's were how could quarter to conservatism embedded XX that's the this saying you're ex-interest us parse low up a before of kind relative in up QX, of that much Maybe that single Thanks. on where macro? in if for think growth that. percentage, you you QX? I XX% been compare that still just pieces high And a digits. that if you low around trended QX. the If income could How the had moving give just to mid-teens to out of pretty for embedded deceleration in good core sense we the July kind is now

Bea Ordonez

Yes, it QX. in how terms happy that. seeing we're Look, right do of to you've got

we've So expectations outperformance million QX low versus and for single that digits. called year in guidance. you noted, as the from in as total, we mid-teens QX, raised to prior out, our Two, captures we growth increased $XX high

We haven't changed QX.

We're that imply XX% all income to expectations. various How in from of front we've the does components into that business to our growth high as some does softening expect half the where from we guided in of softened, business? right? saw out of at some that, between of growth very indeed growth macro consistent, a ex-interest year-over-year So that high growth right? in modeling year. And into gets macro QX QX question, midpoint, Again, been that us sort go as that record we and saw XX% in your teens. that in to where sort we So actually break see softness QX, those is single-digit would the initially we of the mostly we marketplace it's and marketplaces. In volumes to QX the

moderating perhaps single because of the we're front high simply rate digits year, half robust half outperformance really the BXB back are the to not to the growth of the expect run in continuing going We out in year. in

macro as modeling half but especially there's BXB, still looks say. July, the and the a I said, room strong acquisition, the So deceleration. like softness, so the in your is lot in fundamentals I business, implied very to a of strong confident as very, remains ICP Again, that some far. stable. outperformance, month of We're we're was the given the question, the to front year

expectations. good, the our feeling in you're same are, that some and again, to softness macro we we're, into the seeing So but it's we model think prudent indicators in

Operator

with next Will Goldman Nance Sachs. from The comes question

William Nance

wanted the ask morning. to side. this strong on really marketplace results performance the Nice volume on I

of a have that closely most I marketplaces, with for in seeing traded. in which them could out. There outperformance. and opportunity you to kind comments new that hear more kind just about trends the like of are like marketplaces this Just, of to And some emerging think most in the were where quarter, acquisition across kind seems you're of kind of it really markets. of hope tracked volumes the if been comment I've And pretty broader wonder you, the of following gap -- on I about the I China. time e-commerce customer are publicly lot

John Caplan

proud the talked have You ground that marketplace and I the have Thanks have on U.S. on in team we around the folks right? and bet, the for results relationships the We're folks China you of on And as Will. in So done. the in and question. ground the team world. the that the is global, focuses past,

both really around China benefit of involves the that performance that strategy to performance. strong regions inside consumer SMBs that Payoneer team. a from results and strong and saw the ICPs it's on on marketplaces are the that ground obviously, world, other the by And work e-com the So exporters, the sell we spend acquiring and happens

continue are, of marketplaces the that think, and and relationship the others. with the can we which to TikToks extend I the our those extend our be the And opportunity next to in landscape, are continue franchise We think, arena, several [indiscernible] new quarters marketplace be. relationships will to as consumer to at entering to it develop the strong our work I beginning as innovative over

journey, aggressively. at about. to it about the and which it We is think of excited interesting are beginning We're that pursuing

William Nance

Great.

exciting. a then follow-up just maybe And Sounds for Bea.

about how been have core of equation. stripping to guess, over part incremental position the if Obviously, so, macro or that? about I thinking incremental levers the sort characterize year the the maybe float, But bit would out the some rate you next have are a you think including of of of And the the volatile on year, margins the over how margins manage recently. [indiscernible] impacts margins next expectations maybe incremental we some from largely, interest float? how the would excluding income, Just in the headwinds you business, just of potential you

Bea Ordonez

as we back our million. the called costs in continue growth, step-up question, $XX.X Will. in half certainly drive the the actually our really out, of core called our from of a financial from revenue or and proactive cost expectations From our for for half $XX.X extending cash it's able percentage tick platform, We our seeing we we're as year, we've transaction spend the a We've year. and front out the we good and constrain pure a about Sure. intentional And the investment data Look, lowered there. up ability back to the accordingly, to the feel margin look, a of to outperformed adjusted half million Thanks in in year. guidance OpEx been capabilities transaction stack. proactively where OpEx in the spending of perspective, in in revenue to

So up, in more expect optimizing step capabilities, a routing business business, initiatives, while from from pricing perspective driving platform seeing and we our really from scale a globally. from in particularly our strong we're performance and MRS our

year. less revenues to to see from this far to sustainable And we're ability additional to our thus transaction as there we that growth do in demonstrating already continued I again, I So opportunity that an margin results is the costs. and continue with noted, drive EBITDA opportunity perspective, think drive adjusted our leverage

Operator

The comes William Chris Blair. next with question from Kennedy

Cristopher Kennedy

rates I know forward? going you extending little talked can and a customer about about how should it, sensitivity duration you but the deposits give more interest on we to think bit of details

Bea Ordonez

Yes, the a obviously the as the duration. We perhaps of that program Chris. little started or question, extending Yes. year. XX%, region months. We Thanks XX% we've We're balancing the this anticipate somewhere the extending course liquidity, portfolio been called several that more. but over next perhaps in versus out, of of for more we've

at had end out treasury extended the through and build. $X.X We've roughly done already of that -- we billion. called As July, we've

The through liquid under just that duration weighted again, right deposits. The and term instruments is or So of average average highly give weighted is take X now yield portfolio X%. years.

that, to instruments of will come of also earnings provide looking cycle, this can flows to can the prudently, point, sensitivity consistency. reduce as we of greater down interest ability to and side as to rate and similar your interest tightening as prioritizing rate to that that other So sensitivity looking hedge reduce We're look, sort not to always, continuing so speak, benefits, to time additional provide overall can. we and perfectly course, the that the derivative obviously do market much at safety, deliver just begin to our

feel and in it. drive can of properly good about coming We that we it and we're balancing So handling sustainable the that, continue really think float to right years. the way we sort income

Cristopher Kennedy

stack investment kind the made as journey? platform. lot your And you've a you that talk are of just follow-up, then in in Great. you in a Can where about of tech

John Caplan

add done materially are and on ICPs more product they of focused doing in more some talent you'll what tech have the proud organization platform maybe increased serve businesses. The releases. tools of their need have on and Bea, focused and the of impact high-value accelerating and and We've that as organization been velocity color. organization. the that the we their our start we and we're need that I'll to Yes, we they're has What and the operate or better support in upgraded in and added the the delivered to organization, order ICPs terrific, global services results have

Bea Ordonez

on thing is that's with we've only outlined. add a John, map what I'd The road continue that, consistent very we Yes. to

goes a roughly platform third growth-driving So of our to investment initiatives.

our to that offering call, improving BXB elements and this online on. So going improving we is kind talk road UX, of about X/X [indiscernible] engagement, strategy our so and the capabilities. capabilities enable pricing things right, of map, on Roughly other the platform product and

is driving AI-based in you focus data tools imagine, insights, to really improve would the us to a portfolio. data important, super allow to going on really that's allow utilize retention us customer So improved that our data, to as

are. friction of improve So final investment sort element of areas stack company I'll financial the and any capabilities. And operating that in a complex way to that's we platform what payment of self-serve the the the is diverse part needed experience call customer is which sort a then modernization, from

the So you we've kind like. about investment of that's how road various if laid and really we map pillars, think the out

Operator

back John further turn call I no the have closing Kaplan now to questions. remarks. We for

John Caplan

at to customers. initiatives morning. the of Thank you. participation you and continued our for look shareholders. organization Thank appreciate to Speak our momentum quarter. of next your work the everybody. you, to and this Thank and questions global We're your incredible Thank to Payoneer you you excited dedication for hard the your about all our our underway end We next support the soon. and and forward discussion we traction,

Operator

joining This may your today. Thank us you, everyone, now and call, concludes disconnect our you for lines.

Payoneer Global (PAYO) 7 Aug 242024 Q2 Earnings call transcript