By Sam Boughedda
Payoneer Global Inc. (NASDAQ:PAYO) reported earnings for its latest quarter after the close on Tuesday, beating consensus earnings and revenue expectations.
The financial technology firm's shares have rallied more than 14% following the report, currently trading around the $6.63 per share mark, adding to its rise this year, which is now at +18.5%.
Payoneer reported a loss per share of $0.03 on revenue of $183.56 million, above analyst expectations of a $0.04 loss per share on revenue of $171.55M.
The company's revenue in the fourth quarter grew 32% year-over-year and was a record for the period.
"Payoneer is at a pivotal point in our evolution, and we are operating the business with a focus on long-term growth and operating efficiency," said new Payoneer co-CEO John Caplan. "We are becoming the partner of choice for emerging market SMBs who need to manage their global financial activities in an increasingly digital world."
Looking ahead, Payoneer sees full-year 2023 revenue between $800M and $810M, with adjusted EBITDA for the period seen from $120M to $130M.
Following the report, Goldman Sachs analysts said PAYO's interest income continues to drive reinvestment and positive estimate revisions.
"We believe PAYO 4Q results and 2023 guidance should be supportive for shares as PAYO guided significantly ahead of the street on the bottom line and is still expecting mid-teens revenue growth despite a flattish e-commerce environment," wrote the analysts.
"Our initial upgrade of PAYO to Buy was catalyzed by the significant tailwind to the top and bottom line as a result of higher interest rates and the monetization of customer funds," they added. "This thesis has continued to play out to an even greater extent than we had originally anticipated, and is providing PAYO the flexibility to invest in its business at a time when many fintechs are having to curtail investments and optimize for profitability."