Payoneer Global Inc.

As a reminder, this conference call is being recorded. I would now like to turn the call over to Michelle Wang, Payoneer's VP of Investor Relations.

Thank you, Operator. With me on today's call are Payoneer's Chief Executive Officer, John Kaplan, and Payoneer's Chief Financial Officer, Bea Ordonez. Before we begin, I'd like to remind you that today's call may contain forward-looking statements which are subject to risks and uncertainties. For more information, please refer to our filings with the SEC, which are available in the Investor Relations section of Payoneer.com. 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 include non-GAAP measures. These measures should be considered in addition to and not instead of GAAP financial measures. Reconciliation to the nearest GAAP measure can be found in today's earnings press release, which is available on our website. Additionally, please note we have posted an earnings presentation supplement alongside our earnings press release on investor.payoneer.com. All comparisons made on today's call are on a year-over-year basis unless otherwise noted. With that, I'd like to turn the call over to John to begin.

Good morning. Thank you for joining us today. In 2023, we delivered 32% revenue growth and 25% adjusted EBITDA margins. Our strong performance is the direct result of our focus on our ideal customers, interest we earn on the funds our customers hold in their Payoneer accounts, and our disciplined approach to unlocking increased efficiency. As we exit 2023, the key performance indicators of our business are all pointing in the right direction. We have approximately 2 million active customers and 516,000 who meet our ideal customer profile or ICPs. We grew our ICPs by 6% in 2023. We increased ARPU for our 2 million active customers by 36% and by 9% when you exclude interest income. We generated $66 billion of annual volume, up 11%. We grew total take rate by 21 basis points in 2023. We are trusted by our customers, evidenced by over $6 billion of customer funds held in Payoneer accounts. Customer funds were up 9% year over year. 2023 adjusted EBITDA of $205 million, more than quadrupled versus 2022. I'd like to put our results in context. We've discussed before that we primarily serve SMBs directly, although we also have direct relationships with certain enterprise clients. Our SMB customer business represents 75% of our volume and approximately 90% of revenue. SMB customer volume enters the Payoneer account from marketplaces B2B transactions, direct to consumer sales from a customer's web store, and when a customer loads funds from their local bank account. SMB customers use our Payoneer account to hold multi-currency funds and manage their accounts receivable and accounts payable with overseas customers, suppliers, vendors, and partners. Our SMB customers are valuable because we have a branded relationship with them, and are able to cross sell to them more of the Payoneer financial stack over time. We also operate an enterprise business in which large marketplaces use our payment rails to make payouts directly to a payee's local bank account. This is a scaled, lower risk offering and our enterprise clients benefit from our extensive breadth and geographic reach. And because we send payments directly to the recipient's bank account, We don't own the end SMB relationship and have therefore limited opportunity to drive greater monetization or product adoption over time. To grow our business, we are increasing the number of ICPs on our platform, which in turn can drive more volume into paying your accounts. We are also enhancing our AP tools and adding to our financial stack to increase our utility to customers. I became the sole CEO of Payoneer almost exactly one year ago today. Reflecting upon the progress we have made in 2023, some highlights. We bolstered the experience and skills among our executive team and our board of directors. We've become an even more SMB-centric company, and our focus on ICPs, ARPU, and cost to serve is resulting in greater organizational clarity and focus, which we believe will drive long-term profitable growth. We delivered 6% ICP growth in 2023, including faster growth of 13% in our higher take rate regions of APEC, SMEA, and LATAM. We also delivered 15% growth in our larger, higher value ICPs that do more than $10,000 a month in volume. We aligned the market organization to our most valuable customers and biggest opportunity markets. We recruited new leadership to drive the modernization of the Payoneer platform. We are increasing the velocity of which we release new tools and features and are focused on driving improved monetization, faster activation, and increased customer engagement. We announced two acquisitions in 2023, closing a small acquisition in the data space to support our working capital business, and we continue to work towards closing our acquisition of a licensed PSP in China, which is subject to local regulatory approvals and customary closing conditions. We drove our account self-funding to nearly $500 million in 2023 through the strength of our AP solutions. This represents a new source of volume entering Payoneer accounts. We meaningfully reduced the operating losses on non-ICP customers. In 2022, non-ICPs resulted in approximately $25 million of operating losses. We've cut that by a third in 2023 as we increased our monetization of this segment via our pricing initiatives. We lowered the average cost of a customer inquiry by over 40% as of the fourth quarter versus a year ago. We reduced our total employee headcount by 8% year over year. And we initiated Payoneer's first share repurchase program in May of 2023, and in December increased the authorization to up to $250 million. We are proud of the hard work by our team to deliver these strong results. To accelerate our progress, we're working to drive ICP acquisition, increase retention, and improve customer monetization. In our B2B and merchant services businesses, we believe we have a $6 trillion opportunity and are seeing product market fit and strong customer demand, specifically in B2B. Our B2B business drove over $7 billion of volume into Payoneer accounts in 2023, and we expect volumes to grow by 25% in 2024. B2B growth accelerated in the second half of 2023 as we saw improved acquisition in the service-oriented markets we are focused upon. We delivered 28% volume growth in APAC, CMEA, and LATAM in 2023, and these fast-growing, higher take rate regions now make up 42% of B2B volume, up from 35% in 2022. In 2024, we plan to continue focusing our B2B sales efforts on large ICPs in service-oriented markets and further differentiate our service level based on customer size. We also plan to introduce more customer segment specific pricing within the B2B business to drive greater stickiness and expand on product functionality to better cater to the needs of our larger ICPs. We're confident that successful execution of these initiatives will drive accelerating growth in our B2B business. Our merchant services business ended its first full year with volume growth of over 400%. Fourth quarter volume of over $100 million was up 61% sequentially and included record sales during the Black Friday and Cyber Monday weekend. Our customers that sell direct to consumers want to receive this portion of their international AR into their Payoneer account. We believe the $150 billion DTC payments market is a natural extension for Payoneer, given our strong branded relationships with good sellers in these emerging markets. Today, we have over 600 customers in our merchant services business using our checkout product, approximately half of which are net new to Payoneer. As of December, merchant services customers on average receive over $60,000 of monthly volume, significantly larger than our ideal customer profile. As we introduce this product to the market, we anticipate our momentum to continue. We have strong momentum coming into 2024. We are making progress at pace to capture our multi-year opportunity and to more reliably and securely connect the world's 80 million SMBs to the digital global economy. I'll now hand it over to Bea to discuss financial results and our 2024 guidance in more detail.