What happened

Shares of Payoneer Global (PAYO 1.22%) were up 8% as of 11:22 a.m. ET on Tuesday after delivering better-than-expected earnings results for the second quarter. Record quarterly revenue and improving profitability boosted investor confidence in this beaten-down payment services stock. 

So what

Revenue came in at $206.7 million, up 40% year over year, beating the consensus analyst estimate that called for $197 million. Payoneer offers payment and financial services to small- and medium-sized businesses in emerging markets and is making progress in expanding its active ideal customer profiles (ICPs) -- a key performance metric for the company.

ICPs were up 6% year over year but grew 13% in certain international markets, including Latin America and the Asia-Pacific region. The company is also making a play for larger customer profiles with new products like scheduling payments and card spend limits.

Lower transaction costs also helped push the company's net profit up to $45.5 million, or earnings per share of $0.12, beating the consensus estimate of $0.03. Coming out of a difficult macroeconomic backdrop that has weighed on the results of PayPal and other financial services stocks, investors appear to be more confident that business conditions are turning more favorable, which could lead to more upside for the stock price.

Now what

The stock is trading 56% off its previous peak and trades at a price-to-sales ratio (P/S) of 2.94, which is below its five-year-average P/S multiple of 3.84. The rollout of new products and recent acquisitions could spell more momentum ahead.

Just last week, Payoneer announced the acquisition of real-time data platform Spott, based in Israel. The deal brings important new artificial intelligence (AI) capabilities in evaluating data for faster business decisions. This is an innovative technology that Payoneer can now offer to small businesses worldwide to drive more demand for its services.