Payoneer Global Inc.

Deputy Chief Financial Officer. Before we begin, I'd like to remind you that today's call may contain forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including those set forth in our filing with the SEC, which are available in the investor relations section of our website. Actual results may differ materially from any forward-looking statements we make today. These forward-looking statements speak only as of today. and the company does not assume any obligation or intent to update them except as required by law. In addition, today's call may contain non-GAAP measures. These measures should be considered as a supplement to and not as a substitute for GAAP financial measures. Reconciliation to the nearest GAAP measure can be found in today's earnings release, which is available on the company's website. With that, I'd like to turn it all over to Scott to begin.

Thank you to everyone for joining us today to discuss Payoneer's fourth quarter and full year 2022 earnings. I'll be discussing our 2022 results and CEO transition, which was announced earlier today. John will cover Payoneer strategy for 2023 and beyond. Michael will discuss our 2022 financial results, and Bea will talk about our 2023 guidance. Payoneer delivered record 2022 results, including revenue of $628 million, representing 33% year-over-year growth, and adjusted EBITDA of $48 million, representing 72% year-over-year growth. We are capturing opportunity in a growing $5 trillion addressable market because of our strategy to build a diversified business and to innovate to help SMVs compete globally. Our relative resilience in a challenging macroeconomic environment highlights the power of our network, the diversity of our business, the value we bring to our customers, their trust in Payoneer, and the capabilities of our team. Payoneer's 2022 revenue growth reflected continued customer acquisition, adoption of high-value services, and the full-year benefit of onboarding eBay in 2021. We also increased monetization of customer funds on the Payoneer platform, which is a core part of our business model and will continue to be so going forward. This was partially offset by moderate year-over-year volume declines at some of our e-commerce marketplaces. We have increased our geographic diversity Growing the share of our revenue from Latin America, APAC, and Samina to nearly 35% of our overall revenues in 2022, up from approximately 20% four years ago. These faster-growing regions also have higher average take rates. We are focused on building and growing high-value services, including B2B APAR, Commercial MasterCard, Working Capital, and Checkout, and we expect these will continue to drive growth in the future. We grew B2B APAR volumes by 39% year-over-year in 2022, and it now represents 12% of our total volumes, up from 9% in 2021. We drove a threefold increase in spend on our virtual commercial MasterCard year over year and exited 2022 with a run rate of over $1 billion. This is an example of how we are innovating to offer more ways for our customers to use their Payoneer account. We also remain optimistic about the long-term growth potential for our working capital and checkout businesses. In working capital, we intend to continue to grow, albeit with an adjusted risk appetite given the current environment. Long term, we believe there is meaningful opportunity to provide emerging market SMBs with access to the capital they need to grow. In our checkout business, we are seeing positive initial adoption and growth rates following our launch nine months ago. We have already announced partnerships with platforms including Shopify, ShopLaza, and WooCommerce. 2022 volumes of $61 billion were up 8 percent year-over-year and benefited also from a recovery in travel. Our long-term strategy to diversify geographically and grow high-value services and also increase monetization of customer balances enabled us to deliver 18 basis points of take rate expansion year-over-year. A year ago, we reported our earnings just as the war in Ukraine was beginning. Ukraine is an important market for Payoneer, and we remain committed to supporting our extraordinary Ukrainian customers and employees. Additionally, we work with our partners throughout 2022 to wind down our business in Russia, and as of December 31, 2022, we no longer send payments into Russia. 2022 was an incredibly strong year for Payoneer as we continued our track record of delivering consistent revenue and adjusted EBITDA growth. We have a strong foundation for our next leg of growth, and I am incredibly excited about Payoneer's future. On February 27th, the board appointed John as CEO, effective March 1st, while I will transition to the role of senior advisor and continue to serve as a board member. I'm looking forward to staying actively involved with Payoneer and plan to focus more of my time on strategic projects. As this is my last earnings call, I'd like to say thank you to all of our employees, our customers, and our shareholders for their support over the past 12 years. When we first announced John was joining Payoneer, we said that we'd look for John to transition to CEO by the end of 2023 to ensure we didn't rush the transition. The transition has progressed very smoothly, and after working closely together over the past nine months, The board, John, and I all felt now was the right time to move forward. I'm enthusiastic about the opportunities Payoneer has, and I have full confidence that John and the strong team that we have will deliver value for our customers, employees, and shareholders for many years to come. I'll now hand it to John to discuss our 2023 strategy.

Thanks, Scott, for your guidance and friendship as we work through the transition. I'm incredibly excited about Payoneer's strong position to capture a greater share of a growing market globally and recognize our long-term potential. I'm looking forward to leading Payoneer for its next leg of growth, from over $600 million of revenue to multi-billions in the years ahead. SMBs that transact globally have cross-border operations, expenses, and currencies to manage. They need a holistic and cost-effective solution for managing their global financial operations and accessing the capital they need to grow their business. Yet they are underserved by the traditional banking and financial system. In fact, approximately 90% of B2B payment volume relies on legacy payment methods. Payoneer provides these SMBs with the tools and services they need to grow their businesses. We plan to generate strong long-term revenue growth while driving greater operational efficiency. In 2023, Payoneer expects to more than double adjusted EBITDA while investing in future growth and profitability. I will now discuss our three core priorities going forward. Number one, delivering continued revenue growth. Number two, focusing our acquisition and service model on profitable customers. And number three, building our next generation technology platform. We remain committed to delivering long-term 20% plus revenue growth. We have created a network and infrastructure with scale and reach and benefit from a trusted brand that drives millions of customer registrations annually. We will leverage our strengths and focus our customer acquisition on higher take rate regions and on growing and scaling high value services. Payoneer is delivering a global financial operating solution for SMBs. Our core products, accounts receivable, accounts payable, and operating account capabilities are at different stages of their maturity and development. We intend to deliver a comprehensive product set that can increase our wallet share and drive greater monetization of existing customer relationships. Our B2B APAR business, for example, provides our customers with invoicing, billing, and payments tools to make and receive payments from their trade partners around the globe. Approximately one-third of our B2B customers are existing customers, where we were able to increase our value proposition. The remaining two-thirds are net new to Payoneer and represent a significant expansion of our addressable market opportunity. B2B customers tend to have more complex needs, including spend management and operating account functionalities, which increase their monetization potential over time. This underscores the big opportunity in front of us, and we expect B2B APAR to continue to grow faster than our business overall. We plan to also continue diversifying our revenue mix geographically. We remain focused on acquiring more customers in faster-growing, higher take-rate regions such as Latin America, Samia, and APAC. To accelerate our revenue growth and our ability to upsell and cross-sell, we are also evaluating inorganic opportunities. We believe M&A will play a meaningful role in our product roadmap and help us scale revenue growth. Our ability to attract a large number of diverse SMBs to our network is a core strength of our business. We are deepening our understanding of our customers' differences by size, geography, industry, and product utilization to better inform and focus our growth strategy. Different portfolios of our customers have different profitability profiles. Going forward, we will focus a greater proportion of our go-to-market on adding and retaining profitable active customers. At the same time, we will invest in our platform and product capabilities so that over time, we can profitably serve an even greater number of our customers and the prospects that come to Payoneer every day. Today, approximately a quarter of our active customers drive the majority of our volume, revenue, and profitability. On average, they tend to have the highest retention rates, growth potential, and most attractive unit economics. Within this segment are tens of thousands of customers who do more than $100,000 of volume annually. And we are focusing our go-to-market strategy and partnership efforts on acquiring lookalikes of these larger SMBs. We recently made changes to our go-to-market organization and leadership to fully align and accelerate our efforts. The balance of our customers, those who make a small portion of our volume and revenue, carry a significant cost to onboard and serve in today's operating environment. In aggregate, this group of customers resulted in approximately $25 million of operating losses in 2022. Additionally, we have seen a significant growth in the number of applications we receive every month. Our powerful brand attracts hundreds of thousands of customers every month. On average, we receive nearly 400,000 prospect registrations a month in 2022. up 25% versus a year ago. This is a core strength of our business and highlights the significant market demand for a Payoneer account. At the same time, however, we spent over $50 million in 2022 on processing applications that did not become active customers. This represents a meaningful opportunity, and we intend to continue leveraging our brand to cost-effectively acquire more SMBs while significantly reducing the cost to onboard and serve the smaller customers. In the near term, we have begun to address some of this drag on our earnings by implementing a set of focused efforts, including experimenting with new fees and pricing models. Payoneer has built a strong and trusted brand, and in many markets, we are on-ramp to the global economy for SMBs. The long-term mission for Payoneer is to profitably serve more of these SMBs, and we are making meaningful investments in our technology platform to do so. In 2023, we plan to invest approximately $30 million to build the next generation of our technology platform. We expect this investment will unlock significant value over time through greater automation and operating efficiency and faster product delivery, which will better enable our cross-selling and up-selling. It will also strengthen our platform so that we can meet the increasingly complex needs of our customers and global partners, particularly as compliance costs associated with operating a global financial services business continue to rise across the global financial ecosystem. Building the next generation of our platform will be a multi-year journey, and the first phase in 2023 will focus on our customer onboarding infrastructure. This includes enhancing our AI and predictive tools to better identify and reduce, in fact, the number of prospects applying that are unlikely to ever achieve our target unit economics and our profitability thresholds. We expect to begin seeing the benefits of our investments towards the end of 2023 as we begin transitioning to our new platform. At this time, we expect that half of our investment in 2023 will be expensed, which is reflected in our guidance, which Bea will discuss in more detail shortly, while the remainder will be capitalized. We plan to also spend an incremental $20 million in our compliance function in 2023 to support ongoing growth of our high-value services and the increasing regulatory complexity of our industry. We will invest in infrastructure, personnel, and plan to add to our global licenses framework to support our future growth. This is required to facilitate the current business we operate, but it importantly also serves as a significant competitive moat. It is increasingly challenging and expensive for any competitor, fintech or traditional bank, to build the infrastructure necessary to operate across the breadth of markets and industries in which we serve customers. We recognize the opportunity we have at Payoneer is extraordinary. For our customers, we will continue to innovate and to evolve our offerings so we can deliver a comprehensive suite of financial services to SMBs with global needs. For our communities, I am proud to announce that at the end of 2022, we established the Payoneer Foundation for all of our charitable efforts. We plan to support organizations that are deeply aligned with Payoneer's values, including small business development and supporting global entrepreneurship. For our employees, we are dedicated to recruiting and retaining the best individuals and ensuring Payoneer remains a great place to work. Our 2022 results and our forward momentum are a direct result of our experienced leaders and talented employees around the world who are passionate and focused on our mission. And for our shareholders, we are committed to delivering sustained long-term profitable growth. Before I hand it over to Michael and Bea to discuss fourth quarter financial results and forward guidance in more detail, I'd like to announce that our board of directors have appointed Bea as our CFO effective March 1st. I want to thank Michael for his leadership and friendship over the past 11 years. With that, over to you, Michael.