NEW YORK--(BUSINESS WIRE)--Payoneer Global Inc. (“Payoneer” or the “Company”) (NASDAQ: PAYO), the financial technology company empowering the world’s small and medium-sized businesses to transact, do business and grow globally, today reported financial results for its fourth quarter and full year ended December 31, 2023.
Fourth Quarter and Full Year 2023 Financial Highlights
| ($ in mm) | 4Q 2022 |
1Q 2023 |
2Q 2023 |
3Q 2023 |
4Q 2023 |
YoY Change |
2022 |
2023 |
YoY Change |
|||
| Revenue | $183.6 |
$192.0 |
$206.7 |
$208.0 |
$224.3 |
22% |
$627.6 |
$831.1 |
32% |
|||
| Transaction costs as a % of revenue | 16.6% |
14.1% |
13.8% |
14.6% |
16.2% |
(40 bps) | 17.6% |
14.7% |
(290 bps) | |||
| Revenue less transaction costs | $153.2 |
$164.9 |
$178.2 |
$177.6 |
$188.0 |
23% |
$517.5 |
$708.8 |
37% |
|||
| Net income (loss) | (10.2) |
7.9 |
45.5 |
12.8 |
27.0 |
n.m. | (12.0) |
93.3 |
n.m. | |||
| Adjusted EBITDA | 10.6 |
38.8 |
56.0 |
58.2 |
52.2 |
393% |
48.5 |
205.1 |
323% |
|||
| Operational Metrics | ||||||||||||
| Active Ideal Customer Profiles (ICPs) ('000s)1 | 488 |
491 |
495 |
502 |
516 |
6% |
488 |
516 |
6% |
|||
| Volume ($bn)2 | $16.5 |
$15.3 |
$15.3 |
$16.3 |
$19.0 |
16% |
$59.7 |
$66.0 |
11% |
|||
| Revenue as a % of volume ("Take Rate") | 112 bps | 125 bps | 135 bps | 127 bps | 118 bps | 6 bps | 105 bps | 126 bps | 21 bps |
1. |
Active ICPs are defined as customers with a Payoneer Account that have on average over $500 a month in volume and were active over the trailing twelve-month period. |
2. |
For a customer that both receives and later sends payments, we count the volume only once. We have updated our methodology to adjust for previously disclosed limited exceptions where both received and sent payments were counted in volumes, such that we count volume only once for a customer that both receives and later sends payments. The updated methodology has no impact on revenue and had, for all periods presented, less than a 3% impact on volume. The update has been applied to all periods reflected in the table above and we have updated the definition of volume accordingly (please see “Financial Information; Non-GAAP Financial Measures” below). |
“We made meaningful progress in 2023 to expand access for small and medium-sized businesses (SMBs) to the digital, global economy. Payoneer is helping SMBs in over 190 countries and territories sell globally across multiple channels and consolidate their accounts receivable (AR) into their Payoneer Accounts. Our customers are also increasingly using Payoneer’s financial stack to optimize their accounts payable (AP). By capturing their cross-border AR and AP, we become an indispensable, trusted partner to their growth,” said John Caplan, Chief Executive Officer. “Our strategy is working, and we drove 6% year-over-year growth in our ideal customer profiles (ICPs) and 36% ARPU expansion. As we continue to execute our strategy and build on our fourth quarter momentum, I am confident we can deliver more value for our customers, employees, and shareholders in 2024 and beyond.”
Full Year 2023 Business Highlights
- 6% active ICP growth and 36% ARPU expansion. 15% growth in our larger ICPs, or those who have on average over $10,000 per month in volume
- Strengthened executive team with the addition of Chief People Officer Elana Brickner, Chief Transformation Officer John Davis, Chief Technology Officer Sarit Frumkes, and Chief Product Officer Oren Ryngler
- Deepened ecosystem of marketplace relationships, including renewing our contract with Airbnb and announcing a new collaboration with Etsy to support its expansion of Etsy Payments into emerging markets
- Announced an agreement to acquire a licensed China-based payment service provider, which will support Payoneer’s fast-growing China business upon close, and is subject to customary closing conditions and regulatory approvals
- Acquired Spott, a real-time data platform that will help us drive faster underwriting decisions in our working capital business
- $57 million of share repurchases in 2023 and on December 7, 2023, the Board authorized an amendment to the share repurchase program to increase the authorized amount of repurchases to $250 million
- $6.4 billion of customer funds as of December 31, 2023, up 9% year-over-year
Fourth Quarter 2023 Business Highlights
- Total B2B volume increased 13% year-over-year, including 27% growth in APAC, SAMEA, and Latin America, where we predominantly serve outsourcing and services businesses who use Payoneer to invoice their customers and make payments to their vendors and suppliers
- Merchant Services (Checkout) volume increased more than 400% year-over-year and 61% sequentially. Over 600 merchants are using Checkout on their webstores to collect payments from customers around the world, and on average receive more than $60,000 of monthly volume
- Record $1.1 billion of quarterly usage on Payoneer cards, up 32% year-over-year, reflecting increased customer adoption of our AP solutions to manage their expenses
- $1.5 million charitable contribution to the Payoneer Foundation to support small business development, female entrepreneurs, young people in business, financial education and entrepreneurship, and humanitarian aid
2024 Guidance
“Payoneer began 2023 with a focus on profitable growth, and we have delivered. In 2023, we generated 32% revenue growth, over $90 million of net income, and quadrupled adjusted EBITDA to over $200 million,” said Bea Ordonez, Chief Financial Officer. “Our 2024 guidance reflects accelerating business momentum over the course of the year as we focus on acquiring and retaining active ICPs, increasing customer adoption of multiple products and services, and driving our two growth engines: B2B and Merchant Services. We intend to continue innovating, improving our customer experience, and strengthening our infrastructure to deliver long-term profitable growth.”
2024 guidance is as follows:
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Revenue |
$875 million - $885 million |
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Transaction costs |
~17.5% of revenue |
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Adjusted EBITDA (1) |
$185 million to $195 million |
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(1) Guidance for fiscal year, where adjusted, is provided on a non-GAAP basis, which Payoneer will continue to identify as it reports its future financial results. The Company cannot reconcile its expected adjusted EBITDA to expected net income under “2024 Guidance” without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company's control and/or cannot be reasonably predicted at this time, which unavailable information could have a significant impact on the Company’s GAAP financial results. Please refer to “Financial Information; Non-GAAP Financial Measures” below for a description of the calculation of adjusted EBITDA. |
Webcast
Payoneer will host a live webcast of its earnings on a conference call with the investment community beginning at 8:30 a.m. ET today, February 28, 2024. To access the webcast, go to the investor relations section of the Company’s website at https://investor.payoneer.com. A replay will be available on the investor relations website following the call.
About Payoneer
Payoneer is the financial technology company empowering the world’s small and medium-sized businesses to transact, do business, and grow globally. Payoneer was founded in 2005 with the belief that talent is equally distributed, but opportunity is not. It is our mission to enable any entrepreneur and business anywhere to participate and succeed in an increasingly digital global economy. Since our founding, we have built a global financial stack that removes barriers and simplifies cross-border commerce. We make it easier for millions of SMBs, particularly in emerging markets, to connect to the global economy, pay and get paid, manage their funds across multiple currencies, and grow their businesses.
Forward-Looking Statements
This press release includes, and oral statements made from time to time by representatives of Payoneer, may be considered “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Payoneer’s future financial or operating performance. For example, projections of future revenue, transaction cost and adjusted EBITDA are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “expect,” “intend,” “plan,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “potential” or “continue,” or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Payoneer and its management, as the case may be, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (1) changes in applicable laws or regulations; (2) the possibility that Payoneer may be adversely affected by geopolitical events and conflicts, such as the current conflict between Israel and Hamas, and other economic, business and/or competitive factors; (3) Payoneer’s estimates of its financial performance; (4) the outcome of any known and/or unknown legal or regulatory proceedings; and (5) other risks and uncertainties set forth in Payoneer’s Annual Report on Form 10-K for the period ended December 31, 2023 and future reports that Payoneer may file with the SEC from time to time. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Payoneer does not undertake any duty to update these forward-looking statements.
Financial Information; Non-GAAP Financial Measures
Some of the financial information and data contained in this press release, such as adjusted EBITDA, have not been prepared in accordance with United States generally accepted accounting principles (“GAAP”). Payoneer uses these non-GAAP measures to compare Payoneer’s performance to that of prior periods for budgeting and planning purposes. Payoneer believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Payoneer’s results of operations. Payoneer's method of determining these non-GAAP measures may be different from other companies' methods and, therefore, may not be comparable to those used by other companies and Payoneer does not recommend the sole use of these non-GAAP measures to assess its financial performance. Payoneer management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in Payoneer’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. You should review Payoneer’s financial statements, which are included in Payoneer’s Annual Report on Form 10-K for the year ended December 31, 2023 and its subsequent Quarterly Reports on Form 10-Q, and not rely on any single financial measure to evaluate Payoneer’s business.
Non-GAAP measures include the following item:
Adjusted EBITDA: We provide adjusted EBITDA, a non-GAAP financial measure that represents our net income (loss) adjusted to exclude: M&A related expense (income), stock-based compensation expenses, restructuring expenses, share in losses (gain) of associated company, gain from change in fair value of warrants, other financial expense (income), net, taxes on income, and depreciation and amortization.
Other companies may calculate the above measure differently, and therefore Payoneer’s measures may not be directly comparable to similarly titled measures of other companies.
In addition, in this earnings release, we reference volume, which is an operational metric. Volume refers to the total dollar value of transactions successfully completed or enabled by our platform, not including orchestration transactions. For a customer that both receives and later sends payments, we count the volume only once. Note: we have updated our methodology to adjust for previously disclosed limited exceptions where both received and sent payments were counted in volumes, such that we count volume only once for a customer that both receives and later sends payments. The updated methodology has no impact on revenue and had for all periods presented, less than a 3% impact on volume. The update has been applied to all periods reflected in the volume table in this press release and we have updated the definition of volume accordingly.
In this earnings release, we also reference ARPU. ARPU (Average Revenue Per User) is defined as the Revenue from Active Customers divided by the number of Active Customers over the period in which the Revenue was earned. Active Customers for these purposes are defined as Payoneer accountholders with at least 1 financial transaction over the period. Revenue from Active Customers represents revenue attributed to Active Customers based on their use of the Payoneer platform, including interest income earned from their balances, and excluding revenues unrelated to their activities.
| TABLE - 1 | ||||||||||||
| PAYONEER GLOBAL INC. | ||||||||||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||
| (U.S. dollars in thousands, except share and per share data) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three months ended December 31, |
Year ended December 31, |
|||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||
| Revenues | $ | 224,320 |
$ | 183,558 |
$ | 831,103 |
$ | 627,623 |
||||
| Transaction costs (Exclusive of depreciation and amortization shown separately below and inclusive of $1,781, $1,491, and $220 interest expense and fees associated with related party transaction in 2023, 2022, and 2021 respectively) | 36,320 |
30,392 |
122,291 |
110,165 |
||||||||
| Other operating expenses | 39,686 |
41,304 |
160,609 |
149,199 |
||||||||
| Research and development expenses | 34,972 |
32,902 |
119,197 |
115,041 |
||||||||
| Sales and marketing expenses | 51,762 |
52,194 |
196,654 |
164,564 |
||||||||
| General and administrative expenses | 27,124 |
29,997 |
100,929 |
90,010 |
||||||||
| Depreciation and amortization | 8,750 |
5,333 |
27,814 |
20,858 |
||||||||
| Total operating expenses | 198,614 |
192,122 |
727,494 |
649,837 |
||||||||
| Operating income (loss) | 25,706 |
(8,564) |
103,609 |
(22,214) |
||||||||
| Financial income (expense): | ||||||||||||
| Gain from change in fair value of Warrants | 11,824 |
5,031 |
17,359 |
33,963 |
||||||||
| Other financial income (expense), net | 3,763 |
1,005 |
11,568 |
(10,131) |
||||||||
| Financial income, net | 15,587 |
6,036 |
28,927 |
23,832 |
||||||||
| Income (loss) before taxes on income and share in losses of associated company | 41,293 |
(2,528) |
132,536 |
1,618 |
||||||||
| Taxes on income | 14,272 |
7,610 |
39,203 |
13,586 |
||||||||
| Share in losses of associated company | — |
13 |
— |
2 |
||||||||
| Net income (loss) | $ | 27,021 |
$ | (10,151) |
$ | 93,333 |
$ | (11,970) |
||||
| Other comprehensive income (loss), net of tax | ||||||||||||
| Foreign currency translation adjustments | — |
2,087 |
— |
(2,429) |
||||||||
| Other comprehensive income (loss), net of tax | — |
2,087 |
— |
(2,429) |
||||||||
| Comprehensive income (loss) | $ | 27,021 |
$ | (8,064) |
$ | 93,333 |
$ | (14,399) |
||||
| Per Share Data | ||||||||||||
| Net income (loss) per share attributable to common stockholders — Basic earnings (loss) per share | $ | 0.08 |
$ | (0.03) |
$ | 0.26 |
$ | (0.03) |
||||
| — Diluted earnings (loss) per share | $ | 0.07 |
$ | (0.03) |
$ | 0.24 |
$ | (0.03) |
||||
| Weighted average common shares outstanding — Basic | 354,697,812 |
352,756,697 |
361,678,893 |
348,044,831 |
||||||||
| Weighted average common shares outstanding — Diluted | 379,881,231 |
352,756,697 |
392,665,718 |
348,044,831 |
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Disaggregation of revenue
The following table presents revenue recognized from contracts with customers as well as revenue from other sources:
| Three months ended December 31, |
Year ended December 31, |
|||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||
| Revenue recognized at a point in time | $ | 156,114 |
$ | 137,813 |
$ | 573,902 |
$ | 533,213 |
||||
| Revenue recognized over time | 660 |
7,723 |
16,925 |
30,354 |
||||||||
| Revenue from contracts with customers | $ | 156,774 |
$ | 145,536 |
$ | 590,827 |
$ | 563,567 |
||||
| Interest income on customer balances | $ | 64,867 |
$ | 35,894 |
$ | 230,634 |
$ | 55,292 |
||||
| Capital advance income | 2,679 |
2,128 |
9,642 |
8,764 |
||||||||
| Revenue from other sources | $ | 67,546 |
$ | 38,022 |
$ | 240,276 |
$ | 64,056 |
||||
| Total revenues | $ | 224,320 |
$ | 183,558 |
$ | 831,103 |
$ | 627,623 |
||||
The following table presents the Company’s revenue disaggregated by primary regional market, with revenues being attributed to the country (in the region) in which the billing address of the transacting customer is located, with the exception of global bank transfer revenues, where revenues are disaggregated based on the billing address of the transaction funds source.
| Three months ended December 31, |
Year ended December 31, |
|||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||
| Primary regional markets | ||||||||||||
| Greater China(1) | $ | 80,244 |
$ | 55,675 |
$ | 287,944 |
$ | 195,663 |
||||
| Europe(2) | 44,170 |
38,334 |
166,868 |
130,850 |
||||||||
| Asia-Pacific(2) | 32,424 |
24,060 |
114,335 |
84,817 |
||||||||
| North America(3) | 23,499 |
29,408 |
97,434 |
92,045 |
||||||||
| South Asia, Middle East and North Africa(2) | 23,400 |
19,167 |
87,237 |
69,239 |
||||||||
| Latin America(2) | 20,583 |
16,914 |
77,285 |
55,009 |
||||||||
| Total revenues | $ | 224,320 |
$ | 183,558 |
$ | 831,103 |
$ | 627,623 |
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1. |
Greater China is inclusive of mainland China, Hong Kong, Macao and Taiwan |
2. |
No single country included in any of these regions generated more than 10% of total revenue |
3. |
The United States is the Company’s country of domicile. Of North America revenues, the US represents $22,452 and $28,453 for the three months ended December 31, 2023 and 2022, and $93,371 and $87,438 during the years ended December 31, 2023 and 2022. |
| TABLE - 2 | |||||||||||||||
| PAYONEER GLOBAL INC. | |||||||||||||||
| RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (UNAUDITED) | |||||||||||||||
| (U.S. dollars in thousands) | |||||||||||||||
| Three months ended | Year ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
2023 |
2022 |
2023 |
2022 |
||||||||||||
| Net income (loss) | $ | 27,021 |
$ | (10,151) |
$ | 93,333 |
$ | (11,970) |
|||||||
| Depreciation and amortization | 8,750 |
5,333 |
27,814 |
20,858 |
|||||||||||
| Taxes on income | 14,272 |
7,610 |
39,203 |
13,586 |
|||||||||||
| Other financial (income) expense, net | (3,763) |
(1,005) |
(11,568) |
10,131 |
|||||||||||
| EBITDA | 46,280 |
1,787 |
148,782 |
32,605 |
|||||||||||
| Stock based compensation expenses(1) | 17,338 |
13,827 |
65,767 |
52,150 |
|||||||||||
| Share in loss of associated company | — |
13 |
— |
2 |
|||||||||||
| M&A related expense (income)(2) | 451 |
— |
3,468 |
(2,323) |
|||||||||||
| Gain from change in fair value of Warrants(3) | (11,824) |
(5,031) |
(17,359) |
(33,963) |
|||||||||||
| Restructuring charges(4) | — |
— |
4,488 |
— |
|||||||||||
| Adjusted EBITDA | $ | 52,245 |
$ | 10,596 |
$ | 205,146 |
$ | 48,471 |
|||||||
| Three months ended, | |||||||||||||||
| Dec. 31, 2022 | Mar. 31, 2023 | June 30, 2023 | Sept. 30, 2023 | Dec. 31, 2023 | |||||||||||
| Net income (loss) | $ | (10,151) |
$ | 7,938 |
$ | 45,549 |
$ | 12,825 |
$ | 27,021 |
|||||
| Depreciation and amortization | 5,333 |
6,039 |
5,909 |
7,116 |
8,750 |
||||||||||
| Taxes on income | 7,610 |
9,172 |
5,747 |
10,012 |
14,272 |
||||||||||
| Other financial income, net | (1,005) |
(2,350) |
(4,318) |
(1,137) |
(3,763) |
||||||||||
| EBITDA | 1,787 |
20,799 |
52,887 |
28,816 |
46,280 |
||||||||||
| Stock based compensation expenses(1) | 13,827 |
16,927 |
16,173 |
15,330 |
17,338 |
||||||||||
| Share in losses of associated company | 13 |
— |
— |
— |
— |
||||||||||
| M&A related expense(2) | — |
774 |
498 |
1,745 |
451 |
||||||||||
| Loss (gain) from change in fair value of Warrants(3) | (5,031) |
252 |
(13,586) |
7,799 |
(11,824) |
||||||||||
| Restructuring charges(4) | — |
— |
— |
4,488 |
— |
||||||||||
| Adjusted EBITDA | $ | 10,596 |
$ | 38,752 |
$ | 55,972 |
$ | 58,178 |
$ | 52,245 |
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| 1. | Represents non-cash charges associated with stock-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense in our business and an important part of our compensation strategy. |
| 2. | Amounts for 2023 relate to M&A-related third-party fees, including related legal, consulting and other expenditures. Amounts for the year ended December 31, 2022 relate to a non-recurring fair value adjustment of a liability related to our 2020 acquisition of optile. |
| 3. | Changes in the estimated fair value of the warrants are recognized as gain or loss on the statements of comprehensive income (loss). The impact is removed from EBITDA as it represents market conditions that are not in our control. |
| 4. | We initiated a plan to reduce our workforce during the year ended December 31, 2023, and had non-recurring costs related to severance and other employee termination benefits. |
| TABLE - 3 | ||||||||||||
| PAYONEER GLOBAL INC. | ||||||||||||
| EARNINGS (LOSS) PER SHARE | ||||||||||||
| (U.S. dollars in thousands, except share and per share data) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three months ended December 31, | Year ended December 31, | |||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||
| Numerator: | ||||||||||||
| Net income (loss) | $ | 27,021 |
$ | (10,151) |
$ | 93,333 |
$ | (11,970) |
||||
| Denominator: | ||||||||||||
| Weighted average common shares outstanding — | ||||||||||||
| Basic | 354,697,812 |
352,756,697 |
361,678,893 |
348,044,831 |
||||||||
| Add: | ||||||||||||
| Dilutive impact of RSUs, ESPP and options to purchase common stock | 24,453,273 |
— |
30,256,559 |
— |
||||||||
| Dilutive impact of private Warrants | 730,146 |
— |
730,266 |
— |
||||||||
| Weighted average common shares — diluted | 379,881,231 |
352,756,697 |
392,665,718 |
348,044,831 |
||||||||
| Net income (loss) per share attributable to common stockholders — Basic earnings (loss) per share | $ | 0.08 |
$ | (0.03) |
$ | 0.26 |
$ | (0.03) |
||||
| Diluted earnings (loss) per share | $ | 0.07 |
$ | (0.03) |
$ | 0.24 |
$ | (0.03) |
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| TABLE - 4 | |||||||
| PAYONEER GLOBAL INC. | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| (U.S. dollars in thousands, except share and per share data) | |||||||
| December 31, | |||||||
2023 |
2022 |
||||||
| Assets: | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 617,022 |
$ | 543,299 |
|||
| Restricted cash | 7,030 |
2,882 |
|||||
| Customer funds | 6,390,526 |
5,838,612 |
|||||
| Accounts receivable (net of allowance of $385 in 2023 and $246 in 2022) | 7,980 |
12,878 |
|||||
| Capital advance receivables (net of allowance of $5,059 in 2023 and $5,311 in 2022) | 45,493 |
37,155 |
|||||
| Other current assets | 40,672 |
36,278 |
|||||
| Total current assets | 7,108,723 |
6,471,104 |
|||||
| Non-current assets: | |||||||
| Property, equipment and software, net | 15,499 |
14,392 |
|||||
| Goodwill | 19,889 |
19,889 |
|||||
| Intangible assets, net | 76,266 |
45,444 |
|||||
| Restricted cash | 5,780 |
4,848 |
|||||
| Deferred taxes | 15,291 |
4,169 |
|||||
| Investment in associated company | — |
6,429 |
|||||
| Severance pay fund | 840 |
1,095 |
|||||
| Operating lease right-of-use assets | 24,854 |
15,260 |
|||||
| Other assets | 15,977 |
12,021 |
|||||
| Total assets | $ | 7,283,119 |
$ | 6,594,651 |
|||
| Liabilities and shareholders’ equity: | |||||||
| Current liabilities: | |||||||
| Trade payables | $ | 33,941 |
$ | 41,566 |
|||
| Outstanding operating balances | 6,390,526 |
5,838,612 |
|||||
| Other payables | 117,508 |
97,334 |
|||||
| Total current liabilities | 6,541,975 |
5,977,512 |
|||||
| Non-current liabilities: | |||||||
| Long-term debt from related party | 18,411 |
16,138 |
|||||
| Warrant liability | 8,555 |
25,914 |
|||||
| Other long-term liabilities | 49,905 |
29,831 |
|||||
| Total liabilities | 6,618,846 |
6,049,395 |
|||||
| Commitments and contingencies | |||||||
| Shareholders’ equity: | |||||||
| Preferred stock, $0.01 par value, 380,000,000 shares authorized; no shares were issued and outstanding at December 31, 2023 and December 31, 2022. | — |
— |
|||||
| Common stock, $0.01 par value, 3,800,000,000 and 3,800,000,000 shares authorized; 368,655,185 and 352,842,025 shares issued and 357,590,493 and 352,842,025 shares outstanding at December 31, 2023 and December 31, 2022, respectively. | 3,687 |
3,528 |
|||||
| Treasury stock at cost, 11,064,692 and 0 shares at December 31, 2023 and December 31, 2022. | (56,936) |
— |
|||||
| Additional paid-in capital | 732,894 |
650,433 |
|||||
| Accumulated other comprehensive loss | (176) |
(176) |
|||||
| Accumulated deficit | (15,196) |
(108,529) |
|||||
| Total shareholders’ equity | 664,273 |
545,256 |
|||||
| Total liabilities and shareholders’ equity | $ | 7,283,119 |
$ | 6,594,651 |
|||
| TABLE - 5 | ||||||
| PAYONEER GLOBAL INC. | ||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
| (U.S. dollars in thousands) | ||||||
| Year ended December 31 | ||||||
2023 |
2022 |
|||||
| Cash Flows from Operating Activities | ||||||
| Net income (loss) | $ | 93,333 |
$ | (11,970) |
||
| Adjustment to reconcile net loss to net cash provided by operating activities: | ||||||
| Depreciation and amortization | 27,814 |
20,858 |
||||
| Deferred taxes | (11,122) |
731 |
||||
| Stock-based compensation expenses | 65,767 |
52,149 |
||||
| Share in losses of associated company | — |
2 |
||||
| Gain from change in fair value of Warrants | (17,359) |
(33,963) |
||||
| Transaction costs allocated to Warrants | — |
— |
||||
| Foreign currency re-measurement (income) loss | (4,359) |
2,752 |
||||
| Changes in operating assets and liabilities, net of the effects of business combinations: | ||||||
| Other current assets | (4,310) |
(11,421) |
||||
| Trade payables | (8,326) |
24,284 |
||||
| Deferred revenue | 1,348 |
224 |
||||
| Accounts receivable, net | 4,898 |
964 |
||||
| Capital advance extended to customers | (299,139) |
(223,819) |
||||
| Capital advance collected from customers | 290,801 |
237,834 |
||||
| Other payables | 13,619 |
16,608 |
||||
| Other long-term liabilities | 232 |
(3,480) |
||||
| Operating lease right-of-use assets | 10,248 |
10,686 |
||||
| Other assets | (3,956) |
1,521 |
||||
| Net cash provided by operating activities | $ | 159,489 |
$ | 83,960 |
||
| Cash Flows from Investing Activities | ||||||
| Purchase of property, equipment and software | (8,459) |
(10,504) |
||||
| Capitalization of internal use software | (39,333) |
(18,329) |
||||
| Related party asset acquisition | (3,600) |
— |
||||
| Severance pay fund distributions, net | 255 |
628 |
||||
| Customer funds in transit, net | 930 |
33,939 |
||||
| Net cash inflow from acquisition of remaining interest in joint venture | 5,953 |
— |
||||
| Net cash provided by (used in) investing activities | $ | (44,254) |
$ | 5,734 |
||
| Cash Flows from Financing Activities | ||||||
| Proceeds from issuance of common stock in connection with stock based compensation plan, net of taxes paid related to settlement of equity awards | 13,203 |
21,346 |
||||
| Outstanding operating balances, net | 551,914 |
1,437,358 |
||||
| Borrowings under related party facility | 26,855 |
29,363 |
||||
| Repayments under related party facility | (24,582) |
(26,755) |
||||
| Common stock repurchased | (55,436) |
— |
||||
| Net cash provided by financing activities | $ | 511,954 |
$ | 1,461,312 |
||
| Effect of exchange rate changes on cash and cash equivalents | $ | 4,458 |
$ | (2,719) |
||
| Net change in cash, cash equivalents, restricted cash and customer funds | 631,647 |
1,548,287 |
||||
| Cash, cash equivalents, restricted cash and customer funds at beginning of year | 6,386,720 |
4,838,433 |
||||
| Cash, cash equivalents, restricted cash and customer funds at end of year | $ | 7,018,367 |
$ | 6,386,720 |
||
| Supplemental disclosure of cash flow information: | ||||||
| Cash paid for taxes, net of refunds | $ | 40,910 |
$ | 9,425 |
||
| Cash interest paid | $ | 1,767 |
$ | 1,466 |
||
| Supplemental information of investing and financing activities not involving cash flows: | ||||||
| Property, equipment, and software acquired but not paid | $ | 810 |
$ | 109 |
||
| Internal use software capitalized but not paid | $ | 10,159 |
$ | 4,392 |
||
| Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 19,842 |
$ | 13,003 |
||
| Common stock repurchased but not paid | $ | 1,500 |
$ | — |
||
