Payoneer Global shares tumbled intraday Thursday following the company's core earnings outlook for 2025, which suggests a year-over-year decline. The digital payments firm anticipates adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to be between $255 million and $265 million this year.
This marks a reduction from the $270.6 million reported for 2024. The projected total revenue for the year is estimated at $1.04 billion to $1.05 billion, contrasting with the $977.7 million reported in 2024. According to a FactSet poll, revenue expectations for this year stand at $1.04 billion. Chief Financial Officer Bea Ordonez addressed analysts during an earnings conference call, indicating that marketplace volume growth is projected to normalize to a high-single-digit percentage from the mid-teens experienced in 2024.
Furthermore, business-to-business (B2B) growth is forecasted at approximately 25%, signaling a step down from the record levels seen in 2024. Following the earnings outlook announcement, Payoneer shares experienced a steep decline, falling nearly 14% during late-afternoon trading on Thursday. The stock has already slid by 12% this year. Earlier this month, Payoneer achieved regulatory approvals in China for its intended acquisition of a licensed payment service provider in the region.
The company expects this acquisition to be finalized in the first half of 2025. Ordonez reassured analysts that potential trade tariffs are not expected to materially impact the business in the short term. Instead, such tariffs are viewed as 'an opportunity' in the medium to long term. In the quarter ending December 31, earnings per share decreased to $0.05, down from $0.07 the previous year, which was slightly below analysts' projections of $0.06.
However, revenue surged by 17% to $261.7 million, exceeding the market expectations of $241.3 million. The fourth-quarter volume showed an impressive increase of 18% year over year, driven by a remarkable 37% surge in the B2B segment. For the entire year, Payoneer recorded a 21% rise in volume, with B2B sales soaring by 42%.
Chief Executive John Caplan stated that the company set new records in 2024 for volume, revenue, and profitability..