Payoneer Reports 19% Revenue Growth, 54% Operating Income Growth in Q3 2024

Payoneer Global Inc. reported significant financial growth for the third quarter and the first nine months of 2024, driven by increased transaction volumes and higher interest income. For the three months ended September 30, 2024, the company generated revenues of $248.3 million, a 19% increase from $208.0 million in the same period of 2023. Year-to-date revenues reached $716.0 million, up 18% from $606.8 million in the prior year. The increase in revenue was attributed to a rise in processed volume, which reached $20.4 billion in Q3 2024, compared to $16.3 billion in Q3 2023, and $57.6 billion for the nine months ended September 30, 2024, versus $47.0 billion in the same period of 2023.

Operating income for Q3 2024 was $35.2 million, reflecting a 19% increase from $29.5 million in Q3 2023. Year-to-date operating income surged 54% to $119.8 million from $77.9 million. Net income for the third quarter was $41.6 million, a substantial increase from $12.8 million in Q3 2023, while year-to-date net income rose to $103.0 million from $66.3 million. The company’s earnings per share also improved, with basic earnings per share of $0.12 for Q3 2024 compared to $0.04 in Q3 2023.

Payoneer’s cash and cash equivalents decreased to $534.2 million as of September 30, 2024, down from $617.0 million at the end of 2023. Customer funds also declined to $5.6 billion from $6.4 billion during the same period. The company’s total assets decreased to $7.1 billion from $7.3 billion, while total shareholders’ equity increased to $727.9 million from $664.3 million.

Strategically, Payoneer completed the acquisition of Skuad Pte. Ltd. on August 5, 2024, enhancing its service offerings for small and medium-sized businesses (SMBs) globally. The acquisition was funded with cash on hand and included a contingent consideration of $9.7 million based on performance criteria. The company also continued its stock repurchase program, repurchasing approximately 22.99 million shares for $119.1 million during the nine months ended September 30, 2024.

In terms of expenses, transaction costs for Q3 2024 rose to $38.1 million, a 25% increase year-over-year, while other operating expenses increased by 11% to $44.9 million. Research and development expenses also saw a significant rise, reflecting the company's commitment to innovation and growth. The effective tax rate for the nine months ended September 30, 2024, was 9.1%, a decrease from 27.3% in the prior year, primarily due to benefits under U.S. tax law for income earned from foreign customers.

Overall, Payoneer’s performance in 2024 reflects strong growth in revenue and profitability, supported by strategic acquisitions and a focus on expanding its service offerings.