What happened
For the week, shares of Payoneer Global (PAYO -0.60%) had jumped nearly 20% as of 1:13 p.m. ET on Thursday after the company reported earnings earlier this week and received some bullish sentiment from Wall Street.
So what
In the fourth quarter of 2022, Payoneer reported a loss of $0.03 per share on revenue of more than $183.5 million, with both numbers beating analyst estimates.
And the company provided an upbeat outlook for 2023, guiding for $810 million in revenue and $130 million of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) at the high end of its range. That compares favorably to full-year revenue of nearly $628 million and adjusted EBITDA of $48.5 million in 2022.
The financial services company provides online money transfers and digital payment services. "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," CEO John Caplan said in an earnings statement.
The company has built a lot of scale and now serves small and medium-size businesses across a number of industries and in more than 190 countries. Wall Street seems to like Payoneer's trajectory as well.
Earlier this week, Jefferies analyst Trevor Williams initiated coverage of the company with a buy rating and a $7 price target, which implies minimal upside from current levels. But the stock has rallied a lot this week.
Williams called Payoneer a leading digital wallet for multiple currencies and said that he liked Payoneer's "entrenched" position and its scale "amid a fragmented competitive landscape." Williams said that the company will also benefit from higher interest rates.
Now what
As a payments firm, it's difficult to build up scale. But once you do, it creates a wide moat that can be difficult for competitors to breach. The company has provided great guidance for 2023 and looks to be well positioned for the future.
