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On Thursday, Northland Securities maintained a positive stance on Payoneer (NASDAQ:PAYO), reiterating its Outperform rating and setting a $14.00 price target for the company’s shares. The financial technology firm, which has delivered an impressive 83% return over the past year and maintains a market capitalization of $3.15 billion, saw its fourth-quarter performance exceed Northland’s expectations, with reported revenue of $261.7 million and adjusted EBITDA of $63.3 million. These figures surpassed Northland’s consensus estimates, which were $239.1 million for revenue and $52.7 million for adjusted EBITDA. According to InvestingPro analysis, the stock is currently trading slightly above its Fair Value.
Payoneer’s transaction volume showed a year-over-year increase of 18%, reaching $22.5 billion. The company, which maintains a strong financial health score of "GOOD" according to InvestingPro metrics, experienced a slight decrease in its take rate, which is the revenue as a percentage of volume, dipping 2 basis points to 116 bps compared to 118 bps in the previous year. Additionally, transaction costs rose to 16.5% of revenue from 16.2% year-over-year.
The company’s core revenue and volume growth were notably strong. Payoneer’s normalized core revenue growth accelerated throughout the year, with a 6% increase in the fourth quarter of 2023, followed by gains of 23% in the first quarter of 2024, 14% in the second quarter, 24% in the third quarter, and culminating with a 26% surge in the fourth quarter on a year-over-year basis.
Northland’s analysis highlights Payoneer’s consistent growth trajectory over the past year, underscoring the company’s ability to expand its core revenue and manage transaction volumes effectively. The firm’s performance in the fourth quarter indicates a robust end to the year 2024, with momentum that could potentially carry into future financial periods.
In other recent news, Payoneer Global Inc. reported its fourth-quarter earnings for 2024, revealing a slight miss in both earnings per share (EPS) and revenue compared to forecasts. The company posted an EPS of $0.05, falling short of the expected $0.06, while revenue was reported at $224.3 million, missing the consensus estimate of $242.24 million. Despite these misses, Payoneer demonstrated a 17% year-over-year growth in Q4 revenue, with full-year revenue reaching $1.04 billion. The company’s B2B volume growth was particularly notable, increasing by 42% in 2024. Looking ahead, Payoneer anticipates 2025 revenues between $1.04 billion and $1.05 billion, with continued B2B volume growth of 25%. The company also emphasized strategic moves, including the acquisition of Skuad and a pending acquisition of a China-based payment service provider. These developments reflect Payoneer’s ongoing efforts to expand its global presence and enhance its service offerings.
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