Payoneer Inc. ((PAYO)) has held its Q3 earnings call. Read on for the main highlights of the call.
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During Payoneer’s latest earnings call, the sentiment was largely positive, underscored by strong revenue growth and strategic expansions. The company showcased its success in the B2B sector and highlighted increased Average Revenue Per User (ARPU), although it acknowledged some macroeconomic challenges and interest income sensitivity that could impact future performance.
Record Quarterly Revenue and Growth
Payoneer reported a record quarterly revenue of $271 million, marking a 9% increase year-over-year. Excluding interest income, revenue reached $211 million, up 15% from the previous year. The company’s adjusted EBITDA also surpassed medium-term targets, reflecting robust financial health.
B2B Segment Expansion
The B2B segment experienced significant growth, with revenue increasing by 27% in Q3. This segment now accounts for roughly 30% of revenue excluding interest, with over half of this revenue coming from high-volume customers processing more than $250,000 monthly.
Increased ARPU
Payoneer saw a remarkable 65% increase in ARPU since Q1 2023, rising from $286 to over $470. This growth was driven by a strategic focus on high-value customers and the cross-selling of higher-yielding accounts payable products.
Growth in Customer Funds
Customer trust in Payoneer’s platform was evident as funds held by customers exceeded $7 billion, a 17% year-over-year increase for the second consecutive quarter, indicating strong future revenue potential.
Strategic Partnerships and Innovation
Payoneer announced new partnerships with a third-party lender and Citi to enhance liquidity management through on-chain money movement capabilities. Additionally, the company plans to introduce stablecoin wallet functionality by 2026.
Macro Challenges and Tariff Impacts
The company noted some softening in volumes due to macroeconomic volatility and tariff impacts, particularly affecting marketplace volumes from China, which could pose challenges moving forward.
Interest Income Sensitivity
Interest income faced pressure from lower interest rates, although this was partially offset by growth in customer balances, highlighting the company’s sensitivity to interest rate fluctuations.
October Volume Softness
In October, Payoneer experienced a modest softening in volumes, which the company cautioned is not a reliable indicator for the upcoming e-commerce heavy season, suggesting potential volatility ahead.
Forward-Looking Guidance
Looking ahead, Payoneer has increased its full-year 2025 guidance, projecting total revenue between $1,050 million and $1,070 million. This optimistic outlook is supported by strong growth in customer funds and strategic initiatives aimed at enhancing the platform’s value through multiproduct adoption and partnerships.
In summary, Payoneer’s earnings call conveyed a positive outlook with strong revenue growth and strategic advancements in the B2B sector. Despite some macroeconomic challenges and interest income sensitivity, the company’s forward-looking guidance remains optimistic, driven by robust growth in customer funds and strategic partnerships.