Payoneer Global has made a significant upward revision to its full-year financial forecast, following a strong performance in the second quarter that exceeded analyst expectations, resulting in a meteoric rise in the company's stock price. In a strategic update shared on Wednesday, Payoneer now expects its 2024 revenue to range between $920 million and $930 million, a noteworthy improvement from its previous estimate of $895 million to $905 million.
Analysts surveyed by Capital IQ, however, anticipate a slightly lower figure at $908.2 million. In terms of profitability, the company has revised its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) forecast to between $225 million and $235 million, an increase from the earlier guidance of $200 million to $210 million.
This positive adjustment reflects what Chief Financial Officer Bea Ordonez has termed as Payoneer's 'significant' outperformance in the second quarter, alongside a robust business momentum as they approach the latter half of the year. Despite a decline in earnings per share to $0.09 from $0.12 in the same quarter last year, Payoneer reported a remarkable 16% increase in revenue, reaching $239.5 million.
This figure not only surpassed Wall Street's expectations, which projected earnings of $0.05 and revenues of $223.1 million, but it also underscored the company’s resurgence in the market. In trading on Wednesday afternoon, Payoneer's shares surged by 22%, reflecting strong investor confidence in the company's growth trajectory.
The company's transaction volume experienced a staggering 22% increase year-over-year, totaling around $18.7 billion in the second quarter. This growth was primarily driven by a spectacular 192% surge in merchant services and a substantial 40% rise in business-to-business transactions. Moreover, Payoneer saw its active ideal customer profiles (ICPs) increase by 10%, reaching 547,000.
The company characterizes active ICPs as customers maintaining a company account with an average monthly volume exceeding $500 and who have remained active over the past 12 months. Notably, the second quarter's results included a 7% increase in larger ICPs, those averaging more than $10,000 monthly, with both volume and revenue from these key customers expanding by over 20%. 'Payoneer delivered another consecutive quarter of record revenue, accelerating volume and ICP growth, and significant profitability,' stated Chief Executive John Caplan, underscoring the company's successful strategy and operational effectiveness.
Furthermore, spending on Payoneer cards escalated by 33%, amounting to $1.2 billion, indicating a growing reliance on the company’s financial products. In a strategic maneuver to bolster its service offerings, Payoneer announced on Monday that it had acquired Skuad, a workforce and payroll management company based in Singapore, for $61 million in cash, along with the potential for up to an additional $20 million in future payments, contingent upon achieving specific milestones.
This acquisition is expected to enable Payoneer to provide a comprehensive and integrated financial suite for small- and medium-sized businesses conducting operations on a global scale..