Payoneer Global Inc.

Good morning. Thank you for standing by. Welcome to Payoneer's third 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 Wong, Payoneer's VP of Investor Relations.

Please go ahead. 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, everyone, and thank you for joining us today. Payoneer once again delivered a record-breaking quarter in both volume and revenues. We are systematically building a full-service financial platform for the cross-border needs of small and medium-sized businesses around the globe. We are committed and making significant progress. In 2024, Payoneer has entered a meaningful second curve of profitable growth, as evidenced by our financial performance over the past three quarters. Our momentum is no accident. It's the result of a strong management team, effective strategic capital allocation, and the disciplined execution of our global team, who are all aligned on driving sustainable and profitable growth. In Q3, we delivered exceptional results. ICP growth increased for the fourth consecutive quarter, up 11%, with strength in APAC, LATAM, and China. ARPU, excluding interest income, increased by 20%, marking the fifth straight quarter of accelerating growth. We're onboarding larger customers, cross-selling products like cards, and optimizing our pricing strategy. Total volume growth accelerated for a seventh consecutive quarter to 25%. We drove strong performance across our business, including with our SMBs that sell on marketplaces, B2B, merchant services, and enterprise payouts. Total revenue grew by 19%, and when excluding interest income, revenue rose by 24%, highlighting accelerating momentum versus the first half of the year. Adjusted EBITDA reached $69 million, with a 28% margin, underscoring our operational discipline. Payoneer, is a profitable high growth company. Since the beginning of 2023 and excluding interest income, we have accelerated revenue growth from low single digits to 24% in Q3. We have also turned adjusted EBITDA net of interest income positive for the first three quarters of this year. Our B2B business is the growth engine driving Payoneer forward. as we serve and capture the multi-trillion-dollar cross-border B2B market. In Q3, B2B volume grew by 57%. We have generated 44% B2B growth for the first three quarters of 2024, compared to single-digit growth in 2023. B2B represents nearly a quarter of our Q3 revenue, excluding interest income, and contributed to over 40% of the year-over-year growth in revenue, excluding interest income. Within our B2B business, we're acquiring larger customers and expanding average transaction sizes. B2B volume growth came from our successful acquisition of larger SMBs as we realigned our go-to-market strategy, focused on high-potential clients, and amplified our affiliate and partner network. Let's look at a few examples of how our B2B customers are using Payoneer. A travel management company in Asia operating across multiple countries and currencies relies on Payoneer to streamline treasury functions. This is simplifying their accounts receivable processes, improving efficiency, and reducing costs. A virtual assistant business process outsourcer serving U.S. clients with contractors in the Philippines. They centralized millions of dollars in monthly payments into their Payoneer account, consolidating collections and payouts without the need for local bank accounts. These are just two of the millions of SMBs worldwide that have crossed border financial needs, but traditional and local banks have underserved. Payoneer is stepping in to fill this gap faster, more efficiently, and with greater focus than traditional legacy institutions. we are empowering businesses to manage their global multi-currency payments seamlessly and to scale worldwide. Our customer portfolio continues to evolve, with ICPs now comprising 28% of our overall base, up from 25% at the start of 2023. And within our ICPs, we continue to sharpen our focus on larger customers and those with more complex needs, 10K plus ICPs represent approximately 85% of our SMB volume, and we have grown both volume and revenue from 10K plus ICPs by over 25% in Q3 of this year. We're focused on a critical and underserved part of the payments ecosystem, SMBs, cross-border trade, B2B transactions, and emerging markets. We are positioned to capture this multi-trillion dollar opportunity with our regulatory infrastructure, banking partnerships, brand strength, and strategic alliances, all of which is supported by a strong culture of collaboration, execution, and service. Our success hinges on our relentless daily execution, expansion of our financial stack, modernization of our platform, and focus on our compliance and regulatory moat. We will also work to build, partner with, or acquire the products and services we need to drive acquisition, grow ARPU, and improve stickiness and retention. As we do so, we will continuously review our products and programs to ensure they align with our long-term goals. We expect this will enable us to allocate capital in the most effective way to generate value over the long term for our shareholders. We believe the road ahead holds even greater value creation. Small businesses drive the global economy, creating jobs and enabling innovation. For these businesses, exports are a growth engine. Payoneers helping SMBs, especially in emerging markets, tap into the global economy by simplifying cross-border financial management. We empower these SMBs to reach new markets, reach new customers, engage new suppliers and enable them to expand, thrive and contribute to a growing global economy. At Payoneer, trade is more than just flows of money. It's a catalyst for growth, collaboration, opportunity and prosperity. Payoneer is proud to support SMBs and foster economic growth worldwide. All of this is possible, all of our momentum, is because of our team's relentless energy, disciplined execution, and dedication to our customers. They are the driving force behind our pursuit of the profitable growth opportunities that lie ahead. With that, I'll pass it over to Bea to dive deeper into our specific financial results and increase guidance for 2024. Thank you.