Payoneer's Notable Business-to-Business Earnings in Q1 2024: CEO John Caplan Discusses Financial Performance
Payoneer, the global payments and financial services company, has announced impressive results for Q1 2024, marking a significant milestone in its growth journey. The company's revenue increased by 19% year-over-year, reaching a record high of $228.2 million.
The growth in Payoneer's B2B business was attributed to increased market share and strong customer acquisition, with B2B revenue growing 37% year-over-year, reaching $58 million. Meanwhile, Merchant Services (Checkout) saw rapid 86% year-over-year growth, growing from a smaller base to $9 million. These robust growth figures in B2B and Merchant Services businesses were key drivers of Payoneer's Q1 2024 results.
The company's focus on expanding in the APAC, SAMEA, and LatAm regions, where ICP growth was higher in Q1 2024, also contributed to its success. Larger, higher volume ICPs in these regions grew by 13% year-over-year. Over half (53%) of active customers now use three or more Payoneer accounts payable (AP) products, up from 40% in 2022, evidence of successful cross-selling and deeper client engagement.
Payoneer's geographic expansion and diversification also played a role in its strong performance. The strong performance seen in "rest of world" segments offset slower growth in China for B2B. The company's average revenue per user (ARPU) also increased by 21% year-over-year, reaching $425, reflecting greater value per active customer through cross-selling multiple products and higher take rates.
The adjusted EBITDA margin for Q1 2024 was 28.6%, and adjusted EBITDA increased by 68% to $65.2 million. Payoneer increased its FY 2024 revenue projection to $895m-905m, up from its previous projection of $875m-885m. The company also increased its FY 2024 adjusted EBITDA projection to $200m-210m, up from $185m-195m.
Payoneer's Q1 2024 results demonstrate its ability to deliver strong financial performance across all channels. The growth in Q1 2024 was driven by increases across all channels, with faster growth in B2B and Merchant Services businesses being a key driver. The company's Q1 2024 results show its commitment to delivering value to shareholders through consistent growth and profitability.
In addition to organic growth, Payoneer is exploring M&A opportunities to further accelerate its growth. The company's Q1 2024 results highlight its position as a leading player in the cross-border payments industry. With its strong financial performance and strategic growth initiatives, Payoneer is well-positioned for continued success in the future.
Business growth in Q1 2024 for Payoneer, a global payments and financial services company, was primarily driven by increases in its B2B and Merchant Services businesses, with a 37% and 86% year-over-year growth, respectively. This robust growth in investing in these businesses was a key factor in Payoneer's impressive financial performance, underscoring its commitment to delivering value to shareholders through consistent growth and profitability.
