Strong Execution Drives 35% Revenue Growth
Full-Year 2021 Revenue and Adjusted EBITDA
Guidance Raised
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 third quarter
ended September 30, 2021.
Financial Highlights
Third Quarter 2021 versus Third Quarter 2020
- Revenue increased 35% to $122.7 million as compared to $90.5
million in 2020.
- Transaction costs improved to 20% of revenue compared to 27% of
revenue in 2020.
- Revenue less transaction costs increased 48% to $98.0 million
from $66.0 million in 2020.
- Net income of $0.8 million compared to a net income of $1.6
million in 2020.
- Adjusted EBITDA increased 138% to $6.1 million as compared to
$2.6 million in 2020.
- Operational Metrics
- Volume increased 16% to $13.6 billion as compared to $11.7
billion in 2020.
- Revenue as a percentage of volume (“Take Rate”) increased to 90
basis points from 77 basis points in 2020.
“Our global team executed really well this quarter as we
continue to focus on delivering unique high-value services to our
fast-growing and increasingly diverse customer base. We acquired a
record number of new customers and drove adoption of services like
B2B AP/AR, Bank Partnerships, our Commercial Card, Merchant
Services, and Working Capital. We also accelerated growth in key
regions like Latin America and Eastern Europe and forged new
partnerships highlighted by our recently announced relationship
with Coupang, a new eCommerce partner in South Korea, and Vimo, a
mobile wallet provider in Vietnam, while also executing well on our
rollout with eBay,“ said Scott Galit, Chief Executive Officer of
Payoneer.
“Our continued strong performance and momentum with customers
highlight our unique position in the market, offering the most
comprehensive solution set for small businesses from around the
world looking to engage in commerce anywhere. We continue to see
new and exciting opportunities globally across a range of markets
including goods exporters, service providers, social commerce and
more. We are also increasing our investments in R&D and Sales
to capitalize on our unique market position, brand, platform and
customer base, and the global secular shift to digital commerce.
While supply chain issues are temporarily slowing eCommerce growth
around the world, the increasing diversity of services, customers,
geographies and growth drivers in our business contributed to a
higher take rate and better than forecasted revenue and adjusted
EBITDA results. These results demonstrate our ability to achieve
strong outcomes, even in challenging environments. Our global
reach, rich product portfolio and broad network of customers,
partners and marketplaces create a unique and sustainable
competitive advantage that differentiates us in the market. Our
continued momentum gives us confidence to raise revenue and
adjusted EBITDA guidance for the full year,” concluded Galit.
2021 Guidance
“We are pleased with our third quarter and year-to-date
financial performance, which reflects our ability to deliver strong
top- and bottom-line results. In the first nine months of 2021,
volume and revenue each grew 33% over the same period last year.
With 35% year-over-year revenue growth in the third quarter, we
maintained our momentum going into the fourth quarter. Based on our
success to date and confidence in our business trajectory, we are
raising our guidance for full-year 2021 revenues to grow
approximately 33%-34% over 2020, up from prior guidance of 28%-30%
growth. Additionally, we expect transaction costs as a percent of
revenue will be approximately 22% for the full year 2021, which
will result in improved adjusted EBITDA,” said Michael Levine,
Chief Financial Officer of Payoneer.
2021 guidance as follows:
2021
Volume
$54.3 billion - $56.0 billion
Revenue
$458 million - $462 million
Transaction costs
~22% as % of revenue
Adjusted EBITDA (1)
$16 million - $18 million
(1) 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 5:30
p.m. ET Wednesday, November 10, 2021. 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. (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 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 prospectus filed on August 6, 2021, and in its
Quarterly Report on Form 10-Q for the quarterly period ended
September 30, 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
above prospectus and 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: 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, 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.
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 “2021 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.
TABLE - 1 PAYONEER GLOBAL INC. CONSOLIDATED
STATEMENTS OF INCOME (LOSS) (UNAUDITED) (U.S. dollars in
thousands, except share and per share data)
Three months ended
Nine months ended
September 30,
September 30,
2021
2020
2021
2020
Revenues
$
122,651
$
90,537
$
334,184
$
250,885
Transaction costs
24,670
24,516
73,346
73,091
Other operating expenses
34,402
18,247
93,026
57,742
Research and development expenses
20,104
13,211
55,298
34,935
Sales and marketing expenses
29,589
18,870
80,430
53,807
General and administrative expenses
15,957
10,486
44,637
26,619
Depreciation and amortization
4,435
4,266
13,463
12,562
Total operating expenses
129,157
89,596
360,200
258,756
Operating income (loss)
(6,506)
941
(26,016)
(7,871)
Financial income (expense): Gain from change in fair value
of Warrants
11,321
-
23,397
-
Other financial income (expense), net
(3,306)
2,602
(6,865)
2,180
Financial income, net
8,015
2,602
16,532
2,180
Income (loss) before taxes on income
1,509
3,543
(9,484)
(5,691)
Taxes on income
662
1,931
5,590
6,731
Share in losses of associated company
10
4
11
109
Net income (loss)
$
837
$
1,608
$
(15,085)
$
(12,531)
Per share data Net income (loss) per share
$
0.00
$
(0.05)
$
(0.31)
$
(0.50)
attributable to common stockholders — Basic earnings (loss) per
share Diluted earnings (loss) per share
$
0.00
$
(0.05)
$
(0.31)
$
(0.50)
Weighted average common
50,934,295
45,055,131
shares outstanding — Basic
339,715,405
156,915,380
Diluted
374,395,385
50,934,295
156,915,380
45,055,131
TABLE - 2 PAYONEER GLOBAL INC. RECONCILIATION OF
NET INCOME (LOSS) TO ADJUSTED EBITDA (UNAUDITED) (U.S. dollars
in thousands)
Three Months Ended Nine months
ended September 30, September 30,
2021
2020
2021
2020
Net income (loss)
$
837
$
1,608
$
(15,085)
$
(12,531)
Depreciation & amortization
4,435
4,266
13,463
12,562
Taxes on income
662
1,931
5,590
6,731
Other financial expenses (income), net
3,306
(2,602)
6,865
(2,180)
EBITDA
9,240
5,203
10,883
4,582
Stock based compensation expenses(1)
8,590
3,023
23,557
8,183
Reorganization related expenses(2)
-
-
5,087
-
Share in losses of associated company
10
4
11
109
M&A related expenses(3)
(390)
-
(1,464)
-
Gain from change in fair value of Warrants(4)
(11,321)
-
(23,397)
-
Other non-recurring items(5)
-
(5,654)
-
(5,654)
Adjusted EBITDA
$
6,129
$
2,576
$
14,627
$
7,220
(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) 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.
(5) Consists primarily of a non-recurring
allowance outside of normal course of business due to liquidation
of one of our providers.
TABLE - 3 PAYONEER GLOBAL INC. EARNINGS (LOSS) PER
SHARE (UNAUDITED) (U.S. dollars in thousands, except share and
per share data)
Three Months Ended Nine Months
Ended September 30, September 30,
2021
2020
2021
2020
Numerator: Net income (loss)
$
837
$
1,608
$
(15,085)
$
(12,531)
Less dividends and revaluation attributable to redeemable
andredeemable convertible preferred stock
-
3,972
33,632
9,909
Net income (loss) attributable to common stockholders
$
837
$
(2,364)
$
(48,717)
$
(22,440)
Denominator: Weighted average common shares outstanding — Basic
339,715,405
50,934,295
156,915,380
45,055,131
Add: Weighted average of additional sharesissuable upon exercise of
options
33,835,289
-
-
-
Weighted average of additional sharesissuable upon exercise of
warrants
844,691
-
-
-
Weighted average common shares – diluted
374,395,385
50,934,295
156,915,380
45,055,131
Net income (loss) per share attributable To common stockholders —
Basic earnings (loss) per share
$
0.00
$
(0.05)
$
(0.31)
$
(0.50)
Diluted earnings (loss) per share
$
0.00
$
(0.05)
$
(0.31)
$
(0.50)
TABLE - 4 PAYONEER GLOBAL INC. CONSOLIDATED
BALANCE SHEETS (UNAUDITED) (U.S. dollars in thousands,
except share and per share data) September 30,
December 31,
2021
2020
Assets: Current assets: Cash and cash equivalents
$448,955
$102,988
Restricted cash
2,840
26,394
Customer funds
3,706,937
3,346,722
Accounts receivable, net
12,541
17,843
CA receivables, net
47,298
66,095
Other current assets
27,908
10,417
Total current assets
4,246,479
3,570,459
Non-current assets: Property, equipment and software, net
11,086
12,694
Goodwill
21,523
22,541
Intangible assets, net
35,338
34,415
Restricted cash
4,955
5,199
Deferred taxes
3,859
3,684
Investment in associated company
6,941
6,858
Severance pay fund
2,069
1,624
ROU assets
14,960
-
Other assets
12,994
12,210
Total assets
$4,360,204
$3,669,684
Liabilities, redeemable preferred stock, redeemable convertible
preferred stock andshareholders’ equity: Current
liabilities: Trade payables
$16,919
$17,245
Outstanding operating balances
3,706,937
3,346,722
Current portion of long-term debt
-
13,500
Other payables
77,141
63,455
Total current liabilities
3,800,997
3,440,922
Non-current liabilities: Long-term debt
-
26,525
Warrant liability
48,304
-
Other long-term liabilities
18,979
12,403
Total liabilities
3,868,280
3,479,850
Commitments and contingencies (Note 11)
-
154,800
Redeemable convertible preferred stock, $0.01 par value,
209,529,798 shares authorized;209,529,798 shares issued and
outstanding; aggregate liquidation preference of $213,484at
December 31, 2020. Redeemable preferred stock, $0.01 par
value, 3,500 shares authorized; 3,500 shares issuedand outstanding;
aggregate liquidation preference 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
3,390
486
issued and outstanding at September 30, 2021. Common stock, $0.01
par value, 3,800,000,000 and 320,115,953 shares authorized;
339,007,751 and 48,608,176 shares issued and outstanding at
September 30, 2021 and December 31, 2020, respectively. Additional
paid-in capital
560,905
79,706
Accumulated other comprehensive income
2,781
4,174
Accumulated deficit
(75,152)
(60,067)
Total shareholders’ equity
491,924
24,299
Total liabilities redeemable convertible preferred stock,
redeemable
$4,360,204
$3,669,684
preferred stock and shareholders’ equity TABLE - 5
PAYONEER GLOBAL INC. CONSOLIDATED STATEMENTS OF CASH
FLOWS (UNAUDITED) (U.S. dollars in thousands)
Nine months ended September 30,
2021
2020
Cash Flows from Operating Activities Net loss
$
(15,085)
$
(12,531)
Adjustment to reconcile net loss to net cash provided by operating
activities: Depreciation and amortization
13,463
12,562
Deferred taxes
(175)
714
Stock-based compensation expenses
23,763
8,331
Share in losses of associated company
11
109
Gain from change in fair value of Warrants
(23,397)
-
Transaction costs allocated to Warrants
5,087
-
Foreign currency re-measurement gain
1,290
(322)
Changes in operating assets and liabilities, net of effects of
businesses combination: Other current assets
(17,386)
3,840
Trade payables
106
(2,541)
Deferred revenue
524
245
Accounts receivables
5,247
(1,645)
CA extended to customers
(252,505)
(166,493)
CA collected from customers
271,302
179,159
Other payables
(3,542)
(1,785)
Other long-term liabilities
(4,354)
1,077
Operating lease right-of-use assets
7,006
-
Other assets
(567)
(1,847)
Net cash provided by operating activities
10,788
18,873
Cash Flows from Investing Activities Purchase of
property, equipment and software
(3,820)
(3,937)
Capitalization of internal use software
(9,670)
(6,592)
Change in severance pay fund
(445)
135
Change in customer funds in transit
9,396
(20,004)
Acquisition of Optile, net of cash acquired
-
(15,482)
Net cash provided by (used in) investing activities
(4,539)
(45,880)
Cash Flows from Financing Activities Exercise of
options
17,670
573
Outstanding operating balances
360,212
927,368
Issuance of redeemable preferred stock and warrants, net
-
32,646
Redemption of redeemable preferred stock
(39,804)
Proceeds from Reverse Recapitalization, net
108,643
-
Proceeds from PIPE financing, net
280,185
-
Repayment of outstanding debt
(40,025)
-
Net cash provided by financing activities
686,881
960,587
Effect of exchange rate changes on cash and cash equivalents
(1,350)
468
Net change in cash, cash equivalents, restricted cash and
customer funds
691,780
934,048
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
$
4,105,069
$
2,730,565
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211110006246/en/
Investor Contact: Ignatius Njoku Investor Relations
investor@payoneer.com
Media Contact: Irina Marciano PR@payoneer.com
Payoneer Global (NASDAQ:PAYO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Payoneer Global (NASDAQ:PAYO)
Historical Stock Chart
From Apr 2023 to Apr 2024