Payoneer Global Inc.

Good morning. Thank you for standing by. Welcome to Payoneer's first quarter 2024 earnings conference call. At this time, all lines have been placed on mute to prevent any background noise. Following the speaker's remarks, we will open the lines for your questions. 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 Ordonia. 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 of 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.pioneer.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, everyone, and thank you for joining us today. We begin 2024 with strong momentum. In Q1, we grew customers who fit our ideal customer profile, or ICPs, by 8%. We continue to drive even faster growth among larger ICPs and those in regions with higher take rates. Our volume increased by 21%, marking the highest growth rate in nearly three years. We generated strong growth across every channel. We grew in our higher take rate B2B and merchant services businesses, as well as in our marketplace and enterprise payout channels. Total revenue grew 19%. Excluding interest income and normalizing for $7.5 million of non-volume fees earned in Q1 of 2023, our revenue was up 21%. We delivered record adjusted EBITDA margin of 29%, fueled by strong revenues and sustained expense discipline. S&B is in 190 plus countries and territories. Payoneer is building the business-grade financial stack for all their cross-border AR and AP needs. Over the past year, we have focused on accelerating growth and increasing profitability. Our efforts are paying off. We are successfully capturing opportunity in the $6 trillion global cross-border B2B market. We achieved 33% volume growth in Q1, more than doubling the 13% growth of the previous quarter. Our momentum comes from a number of strategic initiatives well implemented over the past year. We have focused our B2B acquisition efforts on service-oriented markets where we have strong product market fit and higher take rate. As a result, we have grown B2B volume from service-oriented markets in APEC, LATAM, and CMEA at over 30% in Q1. We opened new verticals we now support, including agriculture in Ukraine, beauty products in Asia, and marketing services firms globally. New verticals launched over the past year have already contributed tens of millions of dollars of incremental B2B volume in Q1. We are deeply committed to building the best products for our customers. We have reduced friction in our onboarding process and delivered new features and functionality. One example, we made it easier for customers to load funds into their Payoneer accounts, an important feature for B2B customers who use our platform to pay their global suppliers and contractors. We've added features to increase convenience, such as the ability to automate large batches of payments or schedule recurring payments. We also recently increased the methods B2B customers can receive payments, including by adding direct-from-bank payments in Europe. These enhancements will help drive long-term retention of our B2B customers. We are expanding the take rate in our SMB customer business. We increased our SMB customer take rate by four basis points, driven by pricing initiatives we've launched over the past year, and faster growth in our higher take rate businesses and regions. We continue to drive ARPU expansion. ARPU increased 31% in Q1 and 13% excluding interest income. This 13% growth is an acceleration compared to the 9% year-over-year growth in Q4. We are increasing ARPU for our pricing initiatives and our focus on acquiring larger ICPs. We are pleased with our Q1 results. The accelerating underlying revenue growth we're driving gives us confidence that our strategy is working. We remain incredibly focused on delivering our plan and capturing the significant opportunity ahead of us. Cross-border trade is undergoing a transformative evolution shaped by technological advancements, which are disrupting traditional ways of working and shopping, demographic shifts, changing geopolitical landscapes, and increasing consumer purchasing power driven by the rise of the middle class around the globe. In this dynamic environment, the role of fast-growing emerging markets as both consumers and entrepreneurs cannot be overstated. Entrepreneurs, particularly in emerging markets where Payoneer is strongest, are driving innovation, creating new business models, and capitalizing on digital platforms to expand their reach beyond traditional borders. And it is these customers that are choosing Payoneer to make it easier for them to do business globally. In closing, we are delivering robust revenue growth across the entire platform and significant profitability. As we embark on Q2, we're enthusiastic about our momentum and remain laser-focused on our mission to connect global SMBs to the digital economy while delivering significant value for our shareholders. We're proud of our team. We're confident in our opportunity. Our efforts are paying off. I'll now turn it to Bea to discuss our financial results and our increased guidance in more detail.