Q4 Revenue Growth of 47% Driven by Continued
Progress of our Strategy to Grow Higher Value Services, Including
B2B AP/AR Volume Growth of Over 75%
Payoneer Global Inc. (“Payoneer”) (NASDAQ: PAYO), the commerce
technology company powering payments and growth for the new global
economy, today reported financial results for its fourth quarter
and full year ended December 31, 2021.
Financial Highlights
Fourth Quarter 2021 versus Fourth Quarter 2020
- Revenue increased 47% to $139.2 million as compared to $94.7
million in 2020.
- Transaction costs as a percentage of revenue decreased to 20%
from 25% in 2020.
- Revenue less transaction costs increased 57% to $111.1 million
from $70.8 million in 2020.
- Net loss of $18.9 million compared to a net loss of $11.2
million in 2020.
- Adjusted EBITDA of $13.5 million compared to Adjusted EBITDA of
$(0.8) million in 2020.
- Operational Metrics
- Volume increased 16% to $16.2 billion as compared to $13.9
billion in 2020.
- Revenue as a percentage of volume (“Take Rate”) increased to 86
basis points from 68 bps in 2020.
Full Year 2021 versus Full Year 2020
- Revenue increased 37% to $473.4 million as compared to $345.6
million in 2020.
- Transaction costs improved to 21% of revenue compared to 28% of
revenue in 2020.
- Revenue less transaction costs increased 50% to $371.9 million
from $248.6 million in 2020.
- Net loss of $34.0 million compared to a net loss of $23.7
million in 2020.
- Adjusted EBITDA of $28.2 million compared to Adjusted EBITDA of
$6.4 million in 2020.
- Operational Metrics
- Volume increased 28% to $56.7 billion as compared to $44.4
billion in 2020.
- Take Rate increased to 84 basis points from 78 basis points in
2020.
“Payoneer had a very strong fourth quarter, delivering revenue
and Adjusted EBITDA well ahead of our expectations as we continued
to drive operating leverage, strong new customer acquisition and
increased adoption of higher value services such as B2B AP/AR,
especially in high growth markets around the world,” said Scott
Galit, Chief Executive Officer of Payoneer. “Given our strong
position and momentum, I am incredibly optimistic about our future.
We are building on strength and just beginning to leverage our
unique position in this massive market. We are excited about the
growth potential for our platform and the positive returns we are
generating from our investments as we continue to expand our broad
range of services which enable businesses around the world to be
successful across all digital sales channels.”
Fourth Quarter 2021 Business
Highlights
The Company had a number of important accomplishments in the
quarter that reinforce the strength of the platform, the positive
ROI generated from investments and the large market opportunity
ahead.
- Year over year growth of over 50% in regions like Latin
America, Southeast Asia and South Asia, the Middle East and North
Africa;
- New customer payback period of less than 12 months;
- Triple digit growth with bank partnerships;
- Exciting progress in the strategy to broaden Payoneer’s
portfolio of higher value services
- B2B AP/AR volumes grew over 75% year over year, accelerating
sequentially from Q321. B2B AP/AR represented 11% of our volume, up
from 7% in Q421;
- Payoneer Commercial Card volume more than doubled from
Q321;
- Launched working capital partnership with Walmart,
collaborating to provide Walmart sellers with easier access to the
funds they need to grow their businesses
2022 Guidance
Michael Levine, Chief Financial Officer of Payoneer, said “Our
strong 2021 financial results demonstrated our ability to execute
our growth strategy, and our plan for 2022 is to continue building
the go-to platform for global commerce. We see the huge potential
of the markets we serve and will continue to invest significantly
to expand global sales teams and marketing capacity in high growth
markets; differentiate our platform by increasing our R&D and
Product teams to build, enhance and deliver new products and
services; and launch initiatives and campaigns to accelerate growth
of our higher value services such as B2B AP/AR, Payoneer Commercial
Card, Merchant Services, and expand more aggressively into high
growth geographic markets.”
“Our guidance also reflects the potential impact from the
conflict in Ukraine. While the situation remains fluid, we have
constructed our guidance to assume zero contribution from Ukraine,
Russia, and Belarus for the rest of the year. Excluding the impact
from the conflict in Ukraine, our revenue guidance would have been
$576 million to $586 million, or 22% to 24% year over year, our
transaction costs guidance would have been approximately 22% of
revenue, and our Adjusted EBITDA guidance would have been breakeven
to slightly positive,” Levine continued.
“However, Russia and Belarus combined represent approximately 3%
of our revenues, and together with Ukraine were slightly less than
10% of revenue in 2021. For the remaining ten months of the year,
we had projected these countries would generate approximately $46
million of revenue, which we are now excluding from our guidance.
We expect the rest of our global business to grow 22%-24% and in
line with the great progress we’re making on our strategy. As the
situation in Ukraine is quite new and evolving very quickly, our
guidance for Adjusted EBITDA is intended to reflect a downside
outcome based on the full impact to our current unrevised
investment plans,” concluded Levine.
2022 guidance is as follows:
Revenue(1)
$530 million - $540 million
Transaction costs
~22% of revenue
Adjusted EBITDA (2)
$(25) million to $(35)
million
(1)
Assumes approximately equal contribution from volume growth and
higher take rates
(2)
Please refer to “Financial Information; Non-GAAP Financial
Measures” below
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 Thursday, March 3, 2022. 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 (NASDAQ: PAYO) is the world’s go-to partner for digital
commerce, everywhere. From borderless payments to boundless growth,
Payoneer promises any business, in any market, the technology,
connections and confidence to participate and flourish in the new
global economy.
Since 2005, Payoneer has been imagining and engineering a truly
global ecosystem so the entire world can realize its potential.
Powering growth for customers ranging from aspiring entrepreneurs
in emerging markets to the world’s leading digital brands like
Airbnb, Amazon, Google, Upwork and Walmart, Payoneer offers a
universe of opportunities, open to you.
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,” “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) the risk that the business
combination with FTAC Olympus Acquisition Corp. completed on June
25, 2021 (the “Reorganization”) disrupts current plans and
operations of Payoneer; (2) the ability to recognize the
anticipated benefits of the Reorganization, which may be affected
by, among other things, competition, the ability of Payoneer to
grow and manage growth profitably, maintain relationships with
customers and suppliers and retain its management and key
employees; (3) costs related to the Reorganization; (4) the outcome
of any legal proceedings; (5) changes in applicable laws or
regulations; (6) the possibility that Payoneer may be adversely
affected by geopolitical and other economic, business and/or
competitive factors; (7) Payoneer’s estimates of its financial
performance; and (8) other risks and uncertainties set forth in
Payoneer’s Annual Report on Form 10-K for the period ended December
31, 2021. 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 were included in the
10-K, 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: Reorganization related
expenses, M&A related expenses, stock-based compensation
expenses, share in losses (gain) of associated company, gain from
change in fair value of warrants, other non-recurring items, other
financial expense (income), net, taxes on income, depreciation,
amortization, and other non-recurring items.
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.
In addition, 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 “2022 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.
In this earnings release, we reference volume, which is an
operational metric. Volume refers to the total dollar value of
transactions successfully completed or enabled by our platform, not
including orchestration transactions. For a customer that both
receives and later sends payments, we count the volume only once,
with certain limited exceptions where both received and sent
payment are counted. Note: we have updated our definition of volume
to clarify that while we count volume only once for customers
receiving payments and subsequently using those funds, there are
certain limited exceptions, where both received and sent payments
are counted. These exceptions have been consistently applied and
are less than 3% of volume. The clarified definition has no impact
on revenue, and applies to volume for all periods presented in this
earnings release.
TABLE - 1 PAYONEER GLOBAL INC. CONSOLIDATED
STATEMENTS OF LOSS (U.S. dollars in thousands, except share and
per share data)
(Unaudited) (Audited) Three months
ended December 31 Year ended December 31
2021
2020
2021
2020
Revenues $
139,219
$
$94,707
$
473,403
$
345,592
Transaction costs
28,130
23,949
101,476
97,040
Other operating expenses
31,623
24,234
124,649
81,976
Research and development expenses
25,462
17,366
80,760
52,301
Sales and marketing expenses
33,901
23,039
114,331
76,846
General and administrative expenses
19,762
11,010
64,399
37,629
Depreciation and amortization
4,534
4,533
17,997
17,095
Total operating expenses
143,412
104,131
503,612
362,887
Operating income (loss)
(4,193
)
(9,424
)
(30,209
)
(17,295
)
Financial income (expense): Gain (loss) from change
in fair value of Warrants
(11,573
)
-
11,824
—
Other financial income (expense), net
11
(168
)
(6,854
)
2,012
Financial income (expense), net
(11,562
)
(168
)
4,970
2,012
Income (loss) before taxes on income
(15,755
)
(9,592
)
(25,239
)
(15,283
)
Taxes on income
3,121
1,589
8,711
8,320
Share in losses of associated company
26
34
37
143
Net loss $
(18,902
)
$
(11,215
)
$
(33,987
)
$
(23,746
)
Per Share Data Net loss per share attributable to common
stockholders — Basic and Diluted loss per share $
(0.06
)
$
(0.29
)
$
(0.33
)
$
(0.80
)
Weighted average common shares outstanding — Basic and
Diluted
340,580,941
52,076,541
202,881,911
47,007,695
TABLE - 2 PAYONEER GLOBAL INC. RECONCILIATION OF
NET INCOME (LOSS) TO ADJUSTED EBITDA (UNAUDITED) (U.S. dollars
in thousands)
Three months ended December 31
Year ended December 31,
2021
2020
2021
2020
Net loss $
(18,902
)
$
(11,215
)
$
(33,987
)
$
(23,746
)
Depreciation & amortization
4,534
4,533
17,997
17,095
Taxes on income
3,121
1,589
8,711
8,320
Other financial income, net
(11
)
168
6,854
(2,012
)
EBITDA
(11,258
)
(4,925
)
(425
)
(343
)
Stock based compensation expenses(1)
13,455
2,709
37,012
10,892
Reorganization related expenses(2)
—
—
5,087
—
Share in losses of associated company
26
34
37
143
Other non-recurring items(3)
—
1,350
—
(4,304
)
M&A related expenses(4)
(257
)
—
(1,721
)
—
Gain from change in fair value of Warrants(5)
11,573
—
(11,824
)
—
Adjusted EBITDA $
13,539
$
(832
)
$
28,166
$
6,388
(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
the Reorganization.
(3) Consists primarily of a non-recurring allowance outside of
normal course of business due to recovery of previously written off
amount relating to one of our bank providers and non-recurring
provision in connection with executive separation.
(4) Represents non-recurring fair value adjustment of a
liability related to our 2020 acquisition of optile. The year ended
December 31, 2019 represents M&A activity related costs, which
include legal and professional services.
(5) 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 - 3
PAYONEER GLOBAL INC. EARNINGS (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,
2021
2020
2021
2020
Numerator: Net loss $
(18,902
)
$
(11,215
)
$
(33,987
)
$
(23,746
)
Less dividends and revaluation attributable to redeemable preferred
stock and redeemable convertible preferred stock
—
3,727
33,632
13,636
Net loss attributable to common stockholders $
(18,902
)
$
(14,942
)
$
(67,619
)
$
(37,382
)
Denominator: Weighted average common shares outstanding — basic and
diluted
340,580,941
52,076,541
202,881,911
47,007,695
Net loss per share attributable to common stockholders — basic and
diluted $
(0.06
)
$
(0.29
)
$
(0.33
)
$
(0.80
)
TABLE - 4 PAYONEER GLOBAL INC. CONSOLIDATED
BALANCE SHEETS (U.S. dollars in thousands, except share and
per share data) December 31,
2021
2020
Assets: Current assets: Cash and cash equivalents $
465,926
$
102,988
Restricted cash
3,000
26,394
Customer funds
4,401,254
3,346,722
Accounts receivable, net
13,844
17,843
CA receivables, net
53,675
66,095
Other current assets
25,024
10,417
Total current assets
4,962,723
3,570,459
Non-current assets: Property, equipment and software, net
12,140
12,694
Goodwill
21,127
22,541
Intangible assets, net
37,529
34,415
Restricted cash
5,113
5,199
Deferred taxes
4,900
3,684
Investment in associated company
7,013
6,858
Severance pay fund
1,723
1,624
Operating lease right of use assets
12,943
Other assets
13,541
12,210
Total assets $
5,078,752
$
3,669,684
Liabilities, redeemable preferred stock, redeemable
convertible preferred stock and shareholders’ equity:
Current liabilities: Trade payables $
17,200
$
17,245
Outstanding operating balances
4,401,254
3,346,722
Current portion of long-term debt
—
13,500
Other payables
79,374
63,455
Total current liabilities
4,497,828
3,440,922
Non-current liabilities: Long-term debt from related party
13,665
26,525
Warrants liability
59,877
—
Other long-term liabilities
20,309
12,403
Total liabilities
4,591,679
3,479,850
Commitments and contingencies Redeemable
convertible preferred stock, $0.01 par value, 209,529,798 shares
authorized; 209,529,798 shares issued and outstanding;aggregate
liquidation preference of $213,484 at December 31, 2020.
—
154,800
Redeemable preferred stock, $0.01 par value, 3,500 shares
authorized; 3,500 shares issued and outstanding; aggregate
liquidationpreference of $36,520 at December 31, 2020.
—
10,735
Shareholders’ equity: Preferred stock, $0.01 par
value, 380,000,000 shares authorized; no shares were issued and
outstanding at December 31, 2021. Common stock, $0.01 par value,
3,800,000,000 and 320,115,953 shares authorized; 340,384,157 and
48,608,176 shares issued and outstanding atDecember 31, 2021 and
December 31, 2020, respectively.
3,404
486
Additional paid-in capital
575,470
79,706
Accumulated other comprehensive income
2,253
4,174
Accumulated deficit
(94,054
)
(60,067
)
Total shareholders’ equity
487,073
24,299
Total liabilities redeemable preferred stock, redeemable
convertible preferred stock and shareholders’ equity $
5,078,752
$
3,669,684
TABLE - 5 PAYONEER GLOBAL INC. CONSOLIDATED
STATEMENTS OF CASH FLOWS (U.S. dollars in thousands)
Year ended December 31
2021
2020
Cash Flows from Operating Activities Net loss $
(33,987
)
$
(23,746
)
Adjustment to reconcile net loss to net cash provided by (used in)
operating activities: Depreciation and amortization
17,997
17,095
Deferred taxes
(1,216
)
(721
)
Stock-based compensation expenses
36,574
11,074
Share in losses of associated company
37
143
Gain from change in fair value of Warrants
(11,824
)
—
Transaction costs allocated to Warrants
5,087
—
Foreign currency re-measurement (gain) loss
1,103
(576
)
Changes in operating assets and liabilities, net of the effects of
business combinations: Other current assets
(14,694
)
3,627
Trade payables
469
2,865
Deferred revenue
(432
)
417
Accounts receivables
3,933
(3,869
)
CA extended to customers
(330,510
)
(266,149
)
CA collected from customers
342,930
259,790
Other payables
691
15,416
Other long-term liabilities
(4,775
)
(2,572
)
Operating lease right-of-use assets
9,525
—
Other assets
(1,331
)
(3,268
)
Net cash provided by (used in) operating activities
19,577
9,526
Cash Flows from Investing Activities Purchase of
property, equipment and software
(6,891
)
(4,992
)
Capitalization of internal use software
(14,008
)
(9,045
)
Change in severance pay fund contribution
(99
)
378
Change in customer funds in transit
31,154
(37,713
)
Investments in associated company
—
—
Acquisition of Optile, net of cash acquired
—
(15,482
)
Net cash provided by (used in) investing activities
10,156
(66,854
)
Cash Flows from Financing Activities Exercise of
options
19,438
849
Outstanding operating balances, net
1,054,530
1,659,944
Proceeds of long-term debt from related party
17,431
—
Repayment of long-term debt ($3,766 associated with related party
transaction in 2021)
(43,791
)
(19,975
)
Issuance of redeemable preferred stock and warrants, net
—
32,646
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
1,396,633
1,673,464
Effect of exchange rate changes on cash and cash equivalents
(1,222
)
636
Net change in cash, cash equivalents, restricted cash and
customer funds
1,425,144
1,616,772
Cash, cash equivalents, restricted cash and customer funds at
beginning of the period
3,413,289
1,796,517
Cash, cash equivalents, restricted cash and customer funds at
end of the period $
4,838,433
$
3,413,289
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220303005824/en/
Investor Contact: Investor Relations
investor@payoneer.com Media Contact: Irina Marciano
PR@payoneer.com
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