Payoneer Global Inc. Q2 FY2025 earnings call

Key Points

• John Caplan highlighted strong Q2 results with record quarterly revenue ex interest income up 16% y-o-y, 13,000 net new ICPs, 21% ARPU expansion ex interest, $66 million adjusted EBITDA with 25% margin.
• B2B revenue grew 37% in Q2, led by large customer segments. China operations saw 1/3 of revenue from sellers to non-US markets, with initiatives like green channel product and virtual card support.
• Partnership with Stripe to expand global checkout footprint. Exploration of stable coin functionality for customers. Opened new technology hub in Gurgaon, India. Increased share repurchases and announced $300 million buyback authorization.
• Bea Ordonez discussed revenue, volume, take rate (126 basis points, down 2 basis points y-o-y), customer funds growth, operating expenses increase driven by labor and acquisition costs, adjusted EBITDA $66 million, and reinstated full year 2025 guidance. Mentioned blockchain initiatives for real-time treasury management and partnership with Mastercard.

Payoneer reported revenues of $261 million in Q2 2025, up 9% year-over-year. Revenue excluding interest income reached $202 million, a quarterly record and up 16% year-over-year. B2B revenue grew 37% in Q2. China revenue had approximately 1/3 from sellers selling to non-U.S. markets. Total volume was up 11% year-over-year. SMB volume grew 9% y-o-y, with marketplace SMB volume up 6%, B2B SMB volume up 19%, and checkout volumes up 83%. Customer funds held by Payoneer increased 17% year-over-year to $7 billion.

Guidance

• Reinstated full year 2025 guidance with total revenue between $1,040 and $1,060 million.
• Adjusted EBITDA expected between $260 million and $275 million, midpoint adjusted EBITDA ex interest $43 million (over 3x 2024's amount).
• Anticipates high single-digit volume growth in second half of 2025.
• Transaction costs as % of revenue expected to be ~16.5% for full year, significantly below initial expectations.
• Continues to invest in blockchain and treasury management capabilities, and deepens Mastercard partnership.

Risks

• Macro environment uncertainties impacting volume and customer behavior.
• Tariff uncertainties, including potential impact on marketplace volumes, though less severe than initially feared between China-U.S. corridor.
• Competitive landscape in China B2B, with more volatile dynamics due to larger sellers and complex market.
• Challenges in stable coin adoption, including solving last mile infrastructure and user complexity.

Q: Nate Svenson asked about tariffs, guidance, and slower volume at large e-com platforms.

A: Beatrice Ordonez responded that they have greater visibility into tariff environment, it's less severe, and embedded assumptions based on current environment.

Q: Trevor Williams inquired about China revenue and B2B volume.

A: John Caplan said 1/3 of China revenue is from non-US markets, and B2B rest of world is growing strongly while China B2B has more volatile dynamics.

Q: Will Nance asked about B2B volume growth and China B2B.

A: Beatrice Ordonez explained differences between China B2B (goods business) and Rest of World B2B (services business), with Rest of World growing strongly.

Q: Chris Kennedy asked about EBITDA margin and blockchain.

A: Beatrice Ordonez discussed continued core adjusted EBITDA expansion and blockchain's role in treasury management and liquidity.

Q: Sanjay Sakhrani asked about tariffs and de minimis.

A: John Caplan said de minimis has minimal impact, and customers are focused on global expansion.

Q: Mayank Tandon asked about churn and Gurgaon hub.

A: John Caplan talked about retention improvement and Beatrice Ordonez explained Gurgaon hub as talent recruitment for R&D.

Q: Daniel Greg asked about take rate and FX.

A: Beatrice Ordonez said take rate expansion is due to utility delivery, and FX is part of overall fees charged.