In This Article:
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Revenue: $247 million, up 8% year over year.
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Revenue Excluding Interest Income: Grew 16% year over year.
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B2B Revenue Growth: Increased 37%.
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Adjusted EBITDA: $65 million, with a 27% margin.
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Net Income: $21 million, compared to $29 million in the prior year period.
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Volume Growth: Up 7% overall; B2B SMBs volume up 21%, merchant services volume up 88%.
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Take Rate: 125 basis points, increased 1 basis point year over year.
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Customer Funds Held: Increased 11% year over year to $6.6 billion.
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Interest Income: $58 million in Q1.
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Operating Expenses: $217 million, increased 14% year over year.
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Transaction Costs: $39 million, representing 16% of revenue.
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Cash and Cash Equivalents: $524 million at the end of the quarter.
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Share Repurchase: Approximately $17 million of shares repurchased during the quarter.
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Payoneer Global Inc (NASDAQ:PAYO) reported a 16% year-over-year revenue growth, excluding interest income, surpassing their medium-term targets.
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The company's B2B revenue increased by 37%, driven by strong growth in APAC, EMEA, and Latin America regions.
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Adjusted EBITDA reached $65 million with a 27% margin, marking the fourth consecutive quarter of profitability net of interest.
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Payoneer Global Inc (NASDAQ:PAYO) successfully cross-sold more products, leading to an 18% revenue increase from $10,000-plus ICPs.
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The company has expanded its global regulatory footprint, including acquiring a licensed China-based payment provider, enhancing its position in key markets.
Negative Points
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Payoneer Global Inc (NASDAQ:PAYO) suspended its full-year 2025 guidance due to uncertainty in the global macroeconomic and trade policy environment.
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The company anticipates a potential $50 million revenue headwind for the full year 2025 if the current global tariff regime remains in place.
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Transaction costs increased by 16%, driven by growth in higher transaction cost products and business lines.
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Net income decreased to $21 million from $29 million in the first quarter of the previous year.
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The company faces challenges from marketplace-driven changes in the timing of large holiday volume payouts, impacting volume growth from SMBs selling on marketplaces.
Q & A Highlights
Q: Can you discuss the customer reception to recent price increases and your confidence in pricing power? A: Beatrice Ordonez, CFO: Our pricing strategy remains customer segment-focused, aligning value with pricing. We haven't changed our approach despite macro uncertainties. The $30 million pricing uplift guidance was pre-tariff, but our strategy remains unchanged.