Ex-Alibaba.com President Named Payoneer Co-CEO

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John Caplan, former president of Alibaba.com,
Cross-Border Payments is joining as co-CEO and director of Payoneer almost a year after the company went public.

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Caplan will lead Payoneer (ticker: PAYO) with current CEO Scott Gallitt, effective immediately, said in a statement, Gallit and Caplan will oversee Payoneer as co-CEOs until the end of 2023. Then, Caplan will remain as CEO while Gallit moves to a strategic role.

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Galit plans to stay at Payoneer. “The role I play in the end depends on what is most useful to the company at the time,” said Gallitt. baron’s,

Shares of Payoneer rose more than 3% to $4.80 in afternoon trading on Wednesday.

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Caplan is the ex-CEO of OpenSky, which was acquired by Alibaba Group (BABA) in 2017.

Caplan said he has spent his entire career creating opportunities for small businesses. Payoneer has built “Pipe” to help small businesses transact, he said. “For me, the partnership with Payoneer and Scott is the best way to help the world’s small businesses thrive,” Caplan said.

Founded in 2005, Payoneer provides cross-border payments for small businesses, online sellers and freelancers in over 190 countries. It has five lakh customers. This can include “micro-entrepreneurs,” such as freelancers who offer their coding services to digital marketers, to manufacturers selling goods internationally promoting their products online, Gallit said.

Payoneer went public in June 2021 by merging with FTAC Olympus Acquisition Corp, a renowned fintech pioneer and Betsy Cohen’s fourth special purpose acquisition company. Founder of The Bancorpo (Ticker: TBBK).

SPACs typically list their shares at $10 per share. They usually have the risk of “de-spacing” or merging with a company or giving their money back. D-Spaces trading above $10 are viewed as solid performers, while those trading below are considered not.

Payoneer’s stock was last trading above $10 in September, when it hit a high of $10.76 that month. Shares are down about 57% as of Tuesday. Asked about Payoneer’s falling stock price, Gallit said: “The general market has collapsed and been challenged.”

Payoneer was profitable during its first quarter. Earlier this month, the company Reported Q1 net income of $20.2 million, or 6 cents a diluted share. Analysts polled by FactSet expected Payoneer to lose 5 cents per share in Q1. Payoneer generated approximately $137 million in revenue, beating expectations for $122.1 million in revenue. It also raised its 2022 guidance and now expects revenue of $550 million to $560 million. That’s up from the $530 million it had previously planned.

Payoneer’s first-quarter results were strong, said Sanjay Sakhrani, a senior analyst at Keefe, Bruyette & Woods, who has an $8 target for the stock. However, sentiment in the broader market has turned against unprofitable, revenue-raising companies “to show me free cash flow”, he said.

Sakhrani said that Pioneer is suffering from a confluence of issues. First, the company went public as investors soured on SPAC. Payoneer is stuck in e-commerce slowdown; People are buying more online as the pandemic recovers, and supply-chain issues are leading to weaker e-commerce sales, he said. Payoneer has a war risk in Europe; Russia, Ukraine and Belarus account for about 10% of Payoneer’s revenue, Sakhrani said. Payoneer also has a concentration risk. He said China and Amazon.com (AMZN) each account for more than 30% of revenue.

Investors underestimate Payoneer”Chasm“And let’s say all they do is disbursements, which is not the case,” Sakhrani said. Payoneer helps small businesses receive and send money in different currencies inside their wallets at competitive rates, connect to the marketplace, help with tax resolution and other value-added services, he said.

“It’s a Good Ditch. Choose Small Businesses [Payoneer] because they can [everything] One place,” he said.

Write to Louisa Beltran at [email protected]

Credit: www.marketwatch.com /

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