Payoneer Global Inc. Q3 FY2025 earnings call

• Improved unit economics and higher quality customer portfolio: Moving to prioritize larger, more complex customers with scale, ambition, and global reach; exiting unprofitable customers; ARPU increased 65% since Q1 2023; long-tail segment now profitable.
• Diversified business mix and B2B expansion: B2B revenue grew 27% in Q3, representing ~30% of revenue ex-interest; focusing on larger B2B customers; over 50% of B2B revenue from ICPs doing over $250,000 per month in volume.
• Customer currency balance value: Customers value holding balances across currencies; interest earned on those balances is a core component of economics; ending Q3, customers held over $7 billion on the platform, up 17% year-over-year for the second straight quarter.
• Platform investment: Investing in platform to deliver more value; driving multiproduct adoption; over 50% of Payoneer account spend from customers using 3 or more AP products; partnering with third-party lender to expand access to capital for customers.
• Stablecoin and blockchain efforts: Evolving platform to capture stablecoin opportunity; using Citi's on-chain money movement capabilities; working on offering stablecoin wallet functionality in 2026.

Payoneer delivered revenue of $271 million in Q3, up 9% year-over-year, with the highest ever quarterly revenue. Revenue excluding interest income reached $211 million, a quarterly record and up 15% year-over-year. B2B revenue grew 27% in Q3 and now represents roughly 30% of revenue ex-interest, up from 20% in Q1 2023. ARPU increased 15% in the quarter, and excluding interest income, was up 22%. Since Q1 2023, total ARPU has increased by 65%. Customer funds held by Payoneer increased 17% year-over-year to $7.1 billion.

• Increased 2025 guidance: Total revenue expected between $1,050 million and $1,070 million, an increase of $10 million at the midpoint relative to prior guidance; interest income increased by $10 million; adjusted EBITDA expected between $270 million and $275 million, representing a 26% margin at the midpoint; transaction costs as a percentage of revenue expected to be approximately 16%, a 50 basis point reduction compared to prior guide.
• Fourth quarter expectations: Marketplace volumes flat to up mid-single digits; B2B volumes grow mid-teens.

• Macroeconomic volatility: Impact on marketplace volumes from tariffs, shipping, and stocking timing; October saw modest softening in volumes versus expectations, though e-com holiday spending season in November and December may be affected.

Q: Mayank Tandon asked about the sustainability of key metrics and seasonal impact for 2026.

A: Bea Ordonez said the business is performing well sustainably with resilient growth, and John Caplan noted the strength in the portfolio moving upmarket.

Q: Sanjay Sakhrani inquired about SMBs and stablecoins.

A: Bea Ordonez discussed tariff impacts on marketplace volumes and John Caplan talked about Payoneer's stablecoin efforts and role in turning stablecoin promise into reality.

Q: Trevor Williams' query on take rate sustainability and B2B volume.

A: Bea Ordonez said take rate expansion comes from B2B growth, product adoption, and pricing; B2B volume expected to increase mid-teens in 4Q.

Q: Christopher Svensson asked about customer funds growth and Checkout trends.

A: Bea Ordonez discussed factors behind customer funds growth and John Caplan talked about Checkout business transition and AP product adoption.

Q: Daniel Krebs questioned the focus on larger ICPs.

A: John Caplan said they are focused on high-value, multi-entity customers, with 10,000-plus ICP count continuing to decline as they scrub the portfolio.

Q: Peter Christiansen asked about Skuad acquisition and stablecoin infrastructure.

A: John Caplan spoke about Skuad acquisition scaling and Bea Ordonez discussed stablecoin innovation and regulatory clarity.