How did PAYO's revenue and expenses trend in Q4 2024?

Payoneer Global Inc (PAYO) experienced notable growth in revenue and volume during Q4 2024, but faced increased operating expenses.

1. **Revenue Trend**: Payoneer's revenue for Q4 2024 was higher than the previous quarter, with a 19% increase in total revenue reaching $248.27 million. This growth was driven by a 24% increase in revenue excluding interest income, reaching $183.1 million. The company's B2B segment contributed significantly to this growth, with a 57% increase in volume and a 25% overall volume growth.
2. **Expense Trend**: In contrast, operating expenses for Payoneer increased by 19%, primarily due to higher transaction costs, R&D, depreciation, amortization, and M&A-related expenses. The company's take rate, which is the percentage of revenue retained after transaction costs, decreased by 5 basis points, likely due to the impact of slowing interest income growth.
3. **Profitability**: Despite the increase in operating expenses, Payoneer maintained profitability, with an adjusted EBITDA of $69 million and a 28% margin. The company's net income increased to $42 million, reflecting strong financial performance.
4. **Strategic Implications**: The rise in operating expenses highlights Payoneer's strategic expansion efforts, including targeted acquisitions and entry into new verticals, which have contributed to the company's growth. The increase in transaction costs may be a result of this expansion and the associated increase in transaction volume.

In conclusion, Payoneer Global Inc saw a significant uptick in revenue, primarily driven by robust growth in its B2B segment and strategic initiatives. However, this growth was accompanied by higher operating expenses, which the company managed to keep in check through strong operational discipline and profitability.