Payoneer (NASDAQ: PAYO) recently Reported its second quarter 2024 financial results and also raised 2024 guidance.
Payoneer is reporting 22% volume growth accelerates “for a sixth consecutive quarter, reflecting consistent execution.”
Payoneer also reported 40% B2B volume growth “driving continued SMB take rate expansion.”
The firm further revealed that it is expanding into global workforce management services for SMBs with the acquisition of Skuad.
Payoneer Global Inc., the financial technology company empowering the world’s small and medium-sized businesses to transact, do business and grow globally, announced financial results for its second quarter ended June 30, 2024.
As noted in the update:
“Payoneer is driving accelerating growth across our entire SMB customer business. We delivered a second consecutive quarter of 21% growth in revenue excluding interest income and $7.5 million of certain non-volume fees earned in the prior year period. ”
As stated in the announcement:
“Payoneer delivered another consecutive quarter of record revenue, accelerating volume and ICP growth, and significant profitability. We are steadily executing to capture a massive opportunity and our results are a validation that our strategy is working: we grew ICPs by 10%, increased ARPU by 27%, and continued to expand our SMB take rate while driving more leverage across the business.”
The firm’s management and Chief Executive Officer John Caplan also shared:
“More and more cross-border SMBs with global operations are using Payoneer’s financial stack. To accelerate our evolution and B2B momentum, we are excited to announce the acquisition of Skuad and welcome to Payoneer the talented entrepreneurs who share our vision of supporting global SMBs. We are combining the strength and reach of Payoneer with Skuad’s comprehensive global workforce and payroll solutions to create a powerful platform that will enhance our customers’ ability to expand their teams worldwide and grow globally.”
Transaction Details:
On August 5, Payoneer acquired Skuad, “a global workforce and payroll management company headquartered in Singapore.”
The acquisition accelerates Payoneer’s strategy to deliver “a comprehensive and integrated financial stack for SMBs that operate internationally.”
Payoneer acquired Skuad for $61 million cash, “subject to adjustments and funded with cash on hand, and up to an additional $20 million of future payments in cash and equity that are contingent upon reaching certain performance and tenure milestones.”
Second Quarter 2024 Business Highlights
- 10% active ICP growth, including 7% growth in larger ICPs who have on average over $10,000 per month in volume. Both volume and revenue from $10K+ ICPs increased more than 20% year-over-year as we acquire larger customers
- 22% volume growth year-over-year reflects:
- B2B volume of $2.5 billion increased 40% year-over-year, driven by strong growth of new cohorts added in the past year and continued strong customer acquisition
- Marketplace volume of $11.4 billion increased 15% year-over-year led by acquisition of large customers in China and continued strength from large ecommerce platforms
- Merchant Services (Checkout) volume of $119 million increased 192% year-over-year as we doubled the number of $10K+ customers using Checkout from a year ago
- Enterprise payouts volume of $4.7 billion increased 31% year-over-year, led by the travel vertical where we increased the number of countries we serve compared to a year ago
$1.2 billion of spend on Payoneer cards, up 33% year-over-year, as we continue to improve our card capabilities. - They launched additional integrations with accounting ERP platforms, which enables customers to more easily track their spend on Payoneer cards directly within their preferred accounting solution
As noted in the update, Payoneer continues to “expand its ecosystem to enable more interoperability for customers.”
As mentioned in a release:
“Payoneer is driving accelerating growth across our entire SMB customer business. We delivered a second consecutive quarter of 21% growth in revenue excluding interest income and $7.5 million of certain non-volume fees earned in the prior year period. We are raising our 2024 guidance to reflect our significant outperformance in the second quarter and our momentum heading into the second half of 2024. We continue to innovate our product offerings, are accelerating the evolution of our financial stack with our acquisition of Skuad and continue to strengthen our position as the dedicated partner of choice for SMBs with global, cross-border operations.”