Payoneer's Q1 2025: Unpacking Key Contradictions in Pricing, Tariffs, and B2B Growth
Earnings DecryptWednesday, May 7, 2025 1:31 pm ET
2min read
Pricing strategy and pricing power, tariffs and impact on business, B2B growth and marketplace volumes, customer onboarding and retention trends, impact of tariffs on revenue are the key contradictions discussed in Payoneer's latest 2025Q1 earnings call.
Revenue and Profitability Growth:
- Payoneer's revenue grew 16% year-over-year in Q1 2025, excluding interest income, exceeding stated medium-term targets.
- Adjusted EBITDA was $65 million with a margin of 27%. This quarter was the highest adjusted EBITDA quarter in nearly three years.
- The growth was driven by the B2B business expanding significantly, particularly in APAC, EMEA, and Latin America, along with a focus on quality customers.
Marketplace Revenue and Take Rate Expansion:
- Volume from who sell on marketplaces was up 3% year-over-year, impacted by changes in payment timing.
- The Q1 take rate of 125 basis points increased by 1 basis point year-over-year and 9 basis points sequentially.
- This was due to expansion in SMB customer segments, increased adoption of high-value products like the card product, and strategic pricing initiatives.
Customer Funds and Interest Income:
- Customer funds held by Payoneer increased by 11% year-over-year to $6.6 billion.
- Interest income was $58 million, despite a decline in average interest rates year-over-year.
- The company reduced its exposure to short-term interest rate fluctuations with roughly $3.7 billion hedged, ensuring liquidity and security.
Tariff Impact and Uncertainty:
- Payoneer suspended full-year 2025 guidance due to uncertainties around tariffs and global trade policies.
- The company estimated a potential headwind to full-year 2025 revenue in the region of $50 million if existing tariff regimes remain in place.
- This is due to potential impacts on marketplace volumes, service businesses, and card usage, while diversification in customer base and markets provides some resilience.
Revenue and Profitability Growth:
- Payoneer's revenue grew 16% year-over-year in Q1 2025, excluding interest income, exceeding stated medium-term targets.
- Adjusted EBITDA was $65 million with a margin of 27%. This quarter was the highest adjusted EBITDA quarter in nearly three years.
- The growth was driven by the B2B business expanding significantly, particularly in APAC, EMEA, and Latin America, along with a focus on quality customers.
Marketplace Revenue and Take Rate Expansion:
- Volume from who sell on marketplaces was up 3% year-over-year, impacted by changes in payment timing.
- The Q1 take rate of 125 basis points increased by 1 basis point year-over-year and 9 basis points sequentially.
- This was due to expansion in SMB customer segments, increased adoption of high-value products like the card product, and strategic pricing initiatives.
Customer Funds and Interest Income:
- Customer funds held by Payoneer increased by 11% year-over-year to $6.6 billion.
- Interest income was $58 million, despite a decline in average interest rates year-over-year.
- The company reduced its exposure to short-term interest rate fluctuations with roughly $3.7 billion hedged, ensuring liquidity and security.
Tariff Impact and Uncertainty:
- Payoneer suspended full-year 2025 guidance due to uncertainties around tariffs and global trade policies.
- The company estimated a potential headwind to full-year 2025 revenue in the region of $50 million if existing tariff regimes remain in place.
- This is due to potential impacts on marketplace volumes, service businesses, and card usage, while diversification in customer base and markets provides some resilience.
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