Record 2022 results
Revenue growth of more than 30% year-over-year
for both Q4 and FY 2022
Payoneer Global Inc. (“Payoneer” or the “Company”) (NASDAQ:
PAYO), the financial technology company empowering the world’s
small businesses to transact, do business and grow globally, today
reported financial results for its fourth quarter and full year
ended December 31, 2022.
Fourth Quarter and Full Year 2022
Financial Highlights
($ in mm)
4Q
2021
1Q
2022
2Q
2022
3Q
2022
4Q
2022
YoYChange
2021
2022
YoYChange Revenue
$139.2
$137.0
$148.2
$158.9
$183.6
32%
$473.4
$627.6
33%
Transaction costs as a % of revenue
20.2%
18.7%
17.7%
17.6%
16.6%
(360 bps)
21.4%
17.6%
(380 bps) Revenue less transaction costs
$111.1
$111.4
$122.0
$130.9
$153.2
38%
$371.9
$517.5
39%
Net income (loss)
(18.9)
20.2
4.4
(26.5)
(10.2)
N.M.
(34.0)
(12.0)
N.M. Adjusted EBITDA
13.5
10.4
14.7
12.7
10.6
(22%)
28.2
48.5
72%
Operational Metrics Volume
($bn)
$16.2
$14.6
$14.6
$15.1
$16.9
5%
$56.7
$61.3
8%
Revenue as a % of volume ("Take Rate") 86 bps 94 bps 101 bps 105
bps 109 bps 23 bps 84 bps 102 bps 18 bps
“Payoneer reported record fourth quarter and full year revenue,
generating more than 30% year-over-year growth for both periods,”
said Scott Galit, Co-Chief Executive Officer of Payoneer. “The
strength of our diversified, scaled business model, global
infrastructure, and trusted brand is apparent in our results.
Payoneer is serving SMBs of all sizes, across a diverse range of
industries, from more than 190 countries and territories.”
“Looking ahead, we expect to generate 28% revenue growth and
significantly increase adjusted EBITDA based on the midpoint of our
2023 guidance,” said John Caplan, Co-Chief Executive Officer of
Payoneer. “Payoneer is at a pivotal point in our evolution, and we
are operating the business with a focus on long-term growth and
operating efficiency. We are becoming the partner of choice for
emerging market SMBs who need to manage their global financial
activities in an increasingly digital world. I have every
confidence in our team and in our ability to continue to execute
and innovate in the quarters and years ahead.”
Full Year 2022 Business
Highlights
- 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
- Take rate of 102 basis points, up 18 basis points
year-over-year driven by B2B AP/AR and Commercial Mastercard
growth, as well as continued geographic diversification and higher
interest income revenue
- Transaction costs as a percentage of revenue decreased 380
basis points-over-year, highlighting our ability to leverage the
benefits of scale
- Strengthened executive team to drive profitable growth and
deliver long-term value. This includes Co-CEO and incoming CEO John
Caplan, Deputy and incoming CFO Bea Ordonez, Chief Growth Officer
Adam Cohen, and Chief Platform Officer Assaf Ronen
Fourth Quarter 2022 Business
Highlights
- $5.8 billion of customer funds as of December 31, 2022, up
nearly $800 million sequentially
- Received approval in principle for a Major Payment Institution
license in Singapore. Additionally, in January 2023 Payoneer
received its e-Money license in the UK
- Established the Payoneer Foundation with initial Company
support of $2.5 million. Giving will focus on international
organizations that support small business development, female
entrepreneurs, young people in business, financial education and
entrepreneurship
2023 Guidance
“Payoneer’s 2022 results demonstrated our ability to deliver
strong revenue growth while significantly expanding adjusted
EBITDA,” said Michael Levine, Chief Financial Officer. “We intend
to continue our balanced capital allocation approach for 2023 and
remain focused on delivering long-term value for our customers,
employees, and shareholders.”
“In 2023, we will focus our customer acquisition strategy on
larger, more profitable SMBs. We will also invest in our technology
platform to accelerate our product delivery and serve more of
customers’ needs while driving increased operating efficiency,”
said Bea Ordonez, Deputy Chief Financial Officer and incoming CFO.
“We expect our high value services, including B2B AP/AR, Commercial
Mastercard, Working Capital, and Checkout, to continue growing
faster than the overall business. And we intend to continue
diversifying our geographic revenue mix to focus on high growth,
high margin geographies.
“Our 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, as well as the 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, and $15
million of incentive payments related to a large enterprise
client.”
2023 guidance is as follows:
Revenue
$800 million - $810 million
Transaction costs
~16.0% of revenue
Adjusted EBITDA (1)
$120 million to $130 million
- Please refer to “Financial Information; Non-GAAP Financial
Measures” below.
Guidance for fiscal year, where adjusted, is provided on a
non-GAAP basis, which Payoneer will continue to identify as it
reports its future financial results. The 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.
Webcast
Payoneer will host a live webcast of its earnings on a
conference call with the investment community beginning at 4:30
p.m. ET today, February 28, 2023. To access the webcast, go to the
investor relations section of the Company’s website at
https://investor.payoneer.com. A replay will be available on the
investor relations website following the call.
About Payoneer
Payoneer is the financial technology company empowering the
world’s small businesses to transact, do business and grow
globally. Payoneer was founded in 2005 with the belief that talent
is equally distributed, but opportunity is not. It is our mission
to enable anyone anywhere to participate and succeed in the global
digital economy. Since our founding, we have built a global
financial platform that has already made it easier for millions of
SMBs, particularly in emerging markets, to pay and get paid, manage
their funds, and grow their business.
Forward-Looking Statements
This press release includes, and oral statements made from time
to time by representatives of Payoneer, may be considered
“forward-looking statements” within the meaning of the “safe
harbor” provisions of the United States Private Securities
Litigation Reform Act of 1995. Forward-looking statements generally
relate to future events or Payoneer’s future financial or operating
performance. For example, projections of future volume, revenue,
transaction cost and adjusted EBITDA are forward-looking
statements. In some cases, you can identify forward-looking
statements by terminology such as “may,” “should,” “expect,”
“intend,” “plan,” “will,” “estimate,” “anticipate,” “believe,”
“predict,” “potential” or “continue,” or the negatives of these
terms or variations of them or similar terminology. Such
forward-looking statements are subject to risks, uncertainties, and
other factors which could cause actual results to differ materially
from those expressed or implied by such forward looking statements.
These forward-looking statements are based upon estimates and
assumptions that, while considered reasonable by Payoneer and its
management, as the case may be, are inherently uncertain. Factors
that may cause actual results to differ materially from current
expectations include, but are not limited to: (1) changes in
applicable laws or regulations; (2) the possibility that Payoneer
may be adversely affected by geopolitical and other economic,
business and/or competitive factors; (3) Payoneer’s estimates of
its financial performance; (4) the outcome of any legal
proceedings; and (5) other risks and uncertainties set forth in
Payoneer’s Annual Report on Form 10-K for the period ended December
31, 2022 and future reports that Payoneer may file with the SEC
from time to time. Nothing in this press release should be regarded
as a representation by any person that the forward-looking
statements set forth herein will be achieved or that any of the
contemplated results of such forward-looking statements will be
achieved. You should not place undue reliance on forward-looking
statements, which speak only as of the date they are made. Payoneer
does not undertake any duty to update these forward-looking
statements.
Financial Information; Non-GAAP Financial Measures
Some of the financial information and data contained in this
press release, such as adjusted EBITDA, have not been prepared in
accordance with United States generally accepted accounting
principles (“GAAP”). Payoneer uses these non-GAAP measures to
compare Payoneer’s performance to that of prior periods for
budgeting and planning purposes. Payoneer believes these non-GAAP
measures of financial results provide useful information to
management and investors regarding certain financial and business
trends relating to Payoneer’s results of operations. Payoneer's
method of determining these non-GAAP measures may be different from
other companies' methods and, therefore, may not be comparable to
those used by other companies and Payoneer does not recommend the
sole use of these non-GAAP measures to assess its financial
performance. Payoneer management does not consider these non-GAAP
measures in isolation or as an alternative to financial measures
determined in accordance with GAAP. The principal limitation of
these non-GAAP financial measures is that they exclude significant
expenses and income that are required by GAAP to be recorded in
Payoneer’s financial statements. In addition, they are subject to
inherent limitations as they reflect the exercise of judgments by
management about which expense and income are excluded or included
in determining these non-GAAP financial measures. In order to
compensate for these limitations, management presents non-GAAP
financial measures in connection with GAAP results. You should
review Payoneer’s financial statements, which are included in
Payoneer’s Annual Report on Form 10-K for the year ended December
31, 2022 and its subsequent Quarterly Reports on Form 10-Q, and not
rely on any single financial measure to evaluate Payoneer’s
business.
Non-GAAP measures include the following item:
Adjusted EBITDA: We provide
adjusted EBITDA, a non-GAAP financial measure that represents our
net income (loss) adjusted to exclude: M&A related income,
stock-based compensation expenses, reorganization related expenses,
share in losses (gain) of associated company, gain from change in
fair value of warrants, other financial expense (income), net,
taxes on income, and depreciation and amortization.
Other companies may calculate the above measure differently, and
therefore Payoneer’s measures may not be directly comparable to
similarly titled measures of other companies.
TABLE - 1PAYONEER GLOBAL INC.CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS(U.S. dollars in thousands,
except share and per share data)
(Unaudited)
(Audited) Three months ended Year ended
December 31, December 31,
2022
2021
2022
2021
Revenues $
183,558
$
139,219
$
627,623
$
473,403
Transaction costs ($1,491 and $220 interest expense and fees
associated with related party transaction in 2022 and 2021
respectively)
30,392
28,130
110,165
101,476
Other operating expenses
41,304
31,623
149,199
124,649
Research and development expenses
32,902
25,462
115,041
80,760
Sales and marketing expenses
52,194
33,901
164,564
114,331
General and administrative expenses
29,997
19,762
90,010
64,399
Depreciation and amortization
5,333
4,534
20,858
17,997
Total operating expenses
192,122
143,412
649,837
503,612
Operating loss
(8,564)
(4,193)
(22,214)
(30,209)
Financial income (expense): Gain (loss) from change
in fair value of Warrants
5,031
(11,573)
33,963
11,824
Other financial income (expense), net
1,005
11
(10,131)
(6,854)
Financial income, net
6,036
(11,562)
23,832
4,970
Income (loss) before taxes on income and share in losses
of associated company
(2,528)
(15,755)
1,618
(25,239)
Taxes on income
7,610
3,121
13,586
8,711
Share in losses of associated company
13
26
2
37
Net loss $
(10,151)
$
(18,902)
$
(11,970)
$
(33,987)
Per Share Data Net loss per share attributable to
common stockholders — Basic and Diluted loss per share $
(0.03)
$
(0.06)
$
(0.03)
$
(0.33)
Weighted average common shares outstanding — Basic and
Diluted
352,756,697
340,580,941
348,044,831
202,881,911
Other comprehensive income (loss), before tax Foreign
currency translation adjustments
2,087
(529)
(2,429)
(1,921)
Other comprehensive income (loss), before tax
2,087
(529)
(2,429)
(1,921)
Income tax expense related to items of other comprehensive
income (loss)
—
—
—
—
Other comprehensive income (loss), net of tax
2,087
(529)
(2,429)
(1,921)
Comprehensive loss $
(8,064)
$
(19,431)
$
(14,399)
$
(35,908)
Disaggregation of revenue The
following table presents revenue recognized from contracts with
customers as well as revenue from other sources, consisting of
interest income:
Three months ended Year ended December 31,
December 31,
2022
2021
2022
2021
Revenue recognized at a point in time $
137,813
$
128,383
$
533,213
$
440,582
Revenue recognized over time
9,851
9,948
39,118
30,119
Revenue from contracts with customers
147,664
138,331
572,331
470,701
Revenue from other sources
35,894
888
55,292
2,702
Total revenues $
183,558
$
139,219
$
627,623
$
473,403
TABLE - 2PAYONEER GLOBAL INC.
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
(UNAUDITED)(U.S. dollars in thousands)
Three months
ended Year ended December 31, December 31,
2022
2021
2022
2021
Net loss $
(10,151)
$
(18,902)
$
(11,970)
$
(33,987)
Depreciation and amortization
5,333
4,534
20,858
17,997
Taxes on income
7,610
3,121
13,586
8,711
Other financial income (expense), net
(1,005)
(11)
10,131
6,854
EBITDA
1,787
(11,258)
32,605
(425)
Stock based compensation expenses(1)
13,827
13,455
52,150
37,012
Reorganization related expenses(2)
—
—
—
5,087
Share in losses of associated company
13
26
2
37
M&A related expenses(3)
—
(257)
(2,323)
(1,721)
Gain from change in fair value of Warrants(4)
(5,031)
11,573
(33,963)
(11,824)
Adjusted EBITDA $
10,596
$
13,539
$
48,471
$
28,166
Three months ended, Dec. 31, 2021 Mar. 31,
2022 June 30, 2022
Sept. 30,
2022
Dec. 31, 2022 Net income (loss) $
(18,902)
$
20,211
$
4,422
$
(26,452)
$
(10,151)
Depreciation & amortization
4,534
4,455
5,171
5,899
5,333
Taxes on income
3,121
1,967
1,374
2,635
7,610
Other financial expenses (income), net
(11)
2,695
4,824
3,617
(1,005)
EBITDA
(11,258)
29,328
15,791
(14,301)
1,787
Stock based compensation expenses(1)
13,455
12,908
11,890
13,525
13,827
Reorganization related expenses(2)
—
—
—
—
—
Share in losses (gain) of associated company
26
(20)
7
2
13
M&A related income(3)
(257)
(619)
(116)
(1,588)
—
Gain from change in fair value of Warrants(4)
11,573
(31,196)
(12,831)
15,095
(5,031)
Adjusted EBITDA $
13,539
$
10,401
$
14,741
$
12,733
$
10,596
(1) Represents non-cash charges associated with stock-based
compensation expense, which has been, and will continue to be for
the foreseeable future, a significant recurring expense in our
business and an important part of our compensation strategy.
(2) Represents the non-recurring reorganizational costs that
were not recorded as a reduction of additional paid in capital. The
amounts relate to legal and professional services associated with
our 2021 Reorganization with FTAC Olympus Acquisition Corp.
(3) Represents non-recurring fair value adjustment of a
liability related to our 2020 acquisition of optile.
(4) Changes in the estimated fair value of the warrants are
recognized as gain or loss on the statements of operations. The
impact is removed from EBITDA as it represents market conditions
that are not in control of the Company.
TABLE - 3PAYONEER GLOBAL INC. LOSS PER
SHARE(U.S. dollars in thousands, except share and per share
data)
(Unaudited) (Audited)
Three months ended
December 31,
Year Ended
December 31,
2022
2021
2022
2021
Numerator: Net loss $
(10,151)
$
(18,902)
$
(11,970)
$
(33,987)
Less dividends and revaluation attributable to redeemable and
redeemable convertible preferred stock
—
—
33,632
Net loss attributable to common stockholders $
(10,151)
$
(18,902)
$
(11,970)
$
(67,619)
Denominator: Weighted average common shares outstanding — basic and
diluted
352,756,697
340,580,941
348,044,831
202,881,911
Net loss per share attributable to common stockholders — basic and
diluted $
(0.03)
$
(0.06)
$
(0.03)
$
(0.33)
TABLE - 4PAYONEER GLOBAL INC. CONSOLIDATED
BALANCE SHEETS(U.S. dollars in thousands, except share and
per share data) December 31,
2022
2021
Assets: Current assets: Cash and cash equivalents $
543,299
$
465,926
Restricted cash
2,882
3,000
Customer funds
5,838,612
4,401,254
Accounts receivable (net of allowance of $246 in 2022 and $119 in
2021)
12,878
13,844
Capital advance receivables (net of allowance of $5,311 in 2022 and
$2,426 in 2021)
37,155
53,675
Other current assets
36,278
25,024
Total current assets
6,471,104
4,962,723
Non-current assets: Property, equipment and software, net
14,392
12,140
Goodwill
19,889
21,127
Intangible assets, net
45,444
37,529
Restricted cash
4,848
5,113
Deferred taxes
4,169
4,900
Investment in associated company
6,429
7,013
Severance pay fund
1,095
1,723
Operating lease right of use assets
15,260
12,943
Other assets
12,021
13,541
Total assets $
6,594,651
$
5,078,752
Liabilities and shareholders’ equity: Current
liabilities: Trade payables $
41,566
$
17,200
Outstanding operating balances
5,838,612
4,401,254
Other payables
97,334
79,374
Total current liabilities
5,977,512
4,497,828
Non-current liabilities: Long-term debt from related party
16,138
13,665
Warrant liability
25,914
59,877
Other long-term liabilities
29,831
20,309
Total liabilities
6,049,395
4,591,679
Commitments and contingencies Shareholders’
equity: Preferred stock, $0.01 par value, 380,000,000 shares
authorized; no shares were issued and outstanding at December 31,
2022 and December 31, 2021, respectively.
—
—
Common stock, $0.01 par value, 3,800,000,000 and 3,800,000,000
shares authorized; 352,842,025 and 340,384,157 shares issued and
outstanding at December 31, 2022 and December 31, 2021,
respectively.
3,528
3,404
Additional paid-in capital
650,433
575,470
Accumulated other comprehensive income (loss)
(176)
2,253
Accumulated deficit
(108,529)
(94,054)
Total shareholders’ equity
545,256
487,073
Total liabilities and shareholders’ equity $
6,594,651
$
5,078,752
TABLE - 5PAYONEER GLOBAL INC. CONSOLIDATED
STATEMENTS OF CASH FLOWS(U.S. dollars in thousands)
Year ended December 31
2022
2021
Cash Flows from Operating Activities Net loss $
(11,970)
$
(33,987)
Adjustment to reconcile net loss to net cash provided by
operating activities: Depreciation and amortization
20,858
17,997
Deferred taxes
731
(1,216)
Stock-based compensation expenses
52,149
37,012
Share in losses of associated company
2
37
Gain from change in fair value of Warrants
(33,963)
(11,824)
Transaction costs allocated to Warrants
—
5,087
Foreign currency re-measurement (gain) loss
2,752
1,103
Changes in operating assets and liabilities, net of the effects
of business combinations: Other current assets
(11,421)
(14,694)
Trade payables
24,284
469
Deferred revenue
224
(432)
Accounts receivable, net
964
3,933
Capital advance extended to customers
(223,819)
(330,510)
Capital advance collected from customers
237,834
342,930
Other payables
16,608
691
Other long-term liabilities
(3,480)
(4,775)
Operating lease right-of-use assets
10,686
9,525
Other assets
1,521
(1,331)
Net cash provided by operating activities $
83,960
$
20,015
Cash Flows from Investing Activities Purchase of
property, equipment and software
(10,504)
(6,891)
Capitalization of internal use software
(18,329)
(14,008)
Severance pay fund (contributions) distributions, net
628
(99)
Customer funds in transit, net
33,939
31,154
Acquisition of Optile, net of cash acquired
—
—
Net cash provided by (used in) investing activities $
5,734
$
10,156
Cash Flows from Financing Activities Proceeds from
issuance of shares in connect with stock based compensation plan
21,346
19,000
Outstanding operating balances, net
1,437,358
1,054,530
Borrowings under related party facility
29,363
17,431
Repayments under related party facility
(26,755)
(3,766)
Repayments under loan and security agreement
—
(40,025)
Issuance of redeemable preferred stock and warrants, net
—
—
Redemption of redeemable preferred stock
—
(39,803)
Proceeds from Reverse Recapitalization, net
—
108,643
Proceeds from PIPE financing, net
—
280,185
Net cash provided by financing activities $
1,461,312
$
1,396,195
Effect of exchange rate changes on cash and cash
equivalents $
(2,719)
$
(1,222)
Net change in cash, cash equivalents, restricted cash and
customer funds
1,548,287
1,425,144
Cash, cash equivalents, restricted cash and customer funds at
beginning of the year
4,838,433
3,413,289
Cash, cash equivalents, restricted cash and customer funds at
end of the year $
6,386,720
$
4,838,433
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230228006030/en/
Investor: Michelle Wang investor@payoneer.com
Media: PR@payoneer.com
Payoneer Global (NASDAQ:PAYO)
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