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Dec 31, 2022
Payoneer Q4 2022 Earnings Report
Payoneer reported record revenue with year-over-year growth, driven by its diversified business model and global infrastructure.
Key Takeaways
Payoneer reported record fourth quarter and full year revenue, generating more than 30% year-over-year growth for both periods. The company is focused on long-term growth and operating efficiency, becoming the partner of choice for emerging market SMBs.
Payoneer reported record fourth quarter and full year revenue, with growth of more than 30% year-over-year.
Strategic focus on diversifying geographically resulted in nearly 35% of 2022 revenue coming from Latin America, Asia-Pacific, and South Asia, Middle East and North Africa, compared to approximately 20% in 2018.
B2B AP/AR volumes increased 39% year-over-year, representing 12% of total volume in 2022, up from 9% in 2021.
Commercial Mastercard usage up 3-fold year-over-year and is at a run-rate of more than $1 billion in annual spend.
Payoneer
Payoneer
Forward Guidance
Payoneer expects to generate 28% revenue growth and significantly increase adjusted EBITDA based on the midpoint of its 2023 guidance. The company will focus its customer acquisition strategy on larger, more profitable SMBs and invest in its technology platform to accelerate product delivery and serve more of customers’ needs while driving increased operating efficiency.
Positive Outlook
- Focus customer acquisition strategy on larger, more profitable SMBs.
- Invest in technology platform to accelerate product delivery.
- Serve more of customers’ needs.
- Drive increased operating efficiency.
- High value services, including B2B AP/AR, Commercial Mastercard, Working Capital, and Checkout, to continue growing faster than the overall business.
Challenges Ahead
- 2023 revenue guidance includes a $22 million impact in the second half of 2023 from lower revenues related to onboarding services provided to a large enterprise client
- Full year impact of the closure of payments into Russia.
- Adjusted EBITDA guidance also includes approximately $15 million of strategic investment linked to enhancing our technology platform.
- $15 million of incentive payments related to a large enterprise client.
- Company cannot reconcile its expected adjusted EBITDA to expected net income under “2023 Guidance” without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company's control and/or cannot be reasonably predicted at this time, which unavailable information could have a significant impact on the Company’s GAAP financial results.