Payoneer Global Inc. (PAYO) shares surged 7.08% in pre-market trading on Wednesday following the company's impressive third-quarter results and increased guidance for 2025. The financial technology firm, which provides cross-border payment solutions, demonstrated robust growth and financial performance, surpassing analyst expectations.
In its Q3 report, Payoneer posted revenue of $270.9 million, beating the consensus estimate of $263.37 million from 10 analysts. The company's revenue excluding interest income grew by 15% year-over-year, driven by a 9% increase in volume and significant take rate expansion with SMB customers. Notably, Payoneer achieved record quarterly revenue, marking three consecutive quarters of mid-teens growth. The average revenue per user (ARPU) excluding interest income also saw a substantial 22% year-over-year increase, attributed to larger customers and strategic pricing initiatives.
Looking ahead, Payoneer has raised its financial guidance for 2025, projecting total revenue between $1,050 million and $1,070 million, up from its previous forecast. The company also increased its 2025 adjusted EBITDA guidance to $270 million - $275 million. This optimistic outlook is based on continued growth, optimized transaction costs, and strong year-over-year increases in customer funds, resulting in higher interest income expectations. The positive sentiment surrounding Payoneer's performance and future prospects appears to be driving the stock's pre-market rally, as investors respond favorably to the company's strong execution and growth trajectory.
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