Payoneer Global Posts Q2 Earnings Above Street View On Improving Revenue Growth Trends

Payoneer Global Inc PAYO reported second-quarter FY23 sales growth of 40% year-on-year to $206.73 million, beating the analyst consensus of $196.99 million.

Transaction costs as a percentage of revenue were 13.8% versus 17.7% a year ago.

Total operating expenses climbed 15.3% Y/Y to $173.3 million.

The operating income for the quarter was $33.4 million, with an operating margin of 16.2%.

Adjusted EBITDA jumped 280% to $56 million.

Payoneer held $590.8 million in cash and equivalents as of Jun 30, 2023. Net cash provided by operating activities for six months totaled $59.9 million.

EPS of $0.12 beat the analyst consensus of $0.04.

Recently, the company announced the asset acquisition of Israel-based Spott, a real-time data platform that uses AI to accurately surface, assess, and quantify data for more informed and faster business decision-making.

Outlook: Payoneer raised FY23 revenue guidance from $810 million - $820 million to $820 million - $830 million versus the consensus of $818.43 million.

It sees transaction costs of about 15.5% of revenue (unchanged) and adjusted EBITDA of $160 million-$170 million (prior view $140 million-$150 million).

Price Action: PAYO shares are trading higher by 7.79% at $5.47 on the last check Tuesday.