What happened
Shares of Payoneer Global (PAYO -4.06%) were trading more than 10% lower as of 12:30 p.m. ET Tuesday after the company reported its results for the first quarter.
So what
Payoneer reported diluted earnings per share of $0.02 on revenue of more than $192 million. It slightly missed analysts' consensus earnings estimate, but beat expectations on revenue.
"We are in the very early innings of unlocking our full potential to be the global financial operating partner for emerging market SMBs (small- and medium-sized businesses)," CEO John Caplan said in the earnings release. "At the beginning of 2023, we committed to operating with a greater focus on customer segments and to growing the number of customers who meet our Ideal Customer Profiles. Active ICPs generate the vast majority of our volume and revenue, and in the first quarter we delivered 9% year-over-year growth in the number of active ICPs on our platform."
The company also raised its full-year guidance and now expects to generate $820 million of revenue and $150 million of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) at the top end of its range.
Now what
It's hard to see exactly what investors are so disappointed about. Earnings only missed by a penny a share and the company raised guidance. But perhaps the market was hoping for a bigger guidance boost, and fears of a potential recession could also be a factor.
The stock does trade at close to 28 times forward earnings, so it will naturally face more scrutiny from the market in an environment like this. Ultimately, though, I thought the quarter was pretty good and am not overly concerned about the sell-off.
