Q1 2022 Payoneer Global Inc Earnings Call

[music].

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to Payoneer's first quarter 2022 earnings conference call. At this time, all lines have been placed on mute to prevent any background noise. Following the speaker's remarks, you will open the lines for your questions. As a reminder, this conference call is being recorded. Before we begin, I'd like to remind you that today's call may contain forward-looking statements.

Good afternoon, ladies and gentlemen, thank you for standing by welcome to pay <unk> first quarter 2022 earnings conference call. At this time all lines have been placed on mute to prevent any background noise.

The speaker's remarks, we will open the lines for your questions. As a reminder, this conference call is being recorded.

Before we begin I'd like to remind you that today's call may contain forward looking statements. These forward looking statements are subject to numerous risks and uncertainties, including those set forth in our filings with the SEC and available in the Investor Relations section of our website.

forward-looking statements are subject to numerous risks and uncertainties, including those set forth in our filings with the FCC and available in the investor relations section of our website. All results may differ materially from any forward-looking statements we make today.

Actual results may differ materially from any forward looking statements we make today.

forward-looking statements speak only as of today, and the company does not assume any obligation or intent to update them except as required by law. In addition, today's call may include non-GAAP measures. These measures should be considered as a supplement to and not as a substitute for GAAP financial measures.

Forward looking statements speak only as of today and the company does not assume any obligation or intent to update them, except as required by law. In addition, todays call may include non-GAAP measures. These measures should be considered as a supplement to and not as a substitute for GAAP financial measures.

reconciliation to the nearest gap measure can be found in today's earnings press release, which is available on the company's website.

Reconciliation to the nearest GAAP measure can be found in today's earnings press release, which is available on the company's website.

Posting today's call are Scott Bullitt, Pioneer Chief Executive Officer.

Hosting todays call are Scott Pruitt Peony, our Chief Executive Officer.

and Michael Levine, Payoneer's chief financial officer. With that, I'd like to turn the call over to Scott to begin.

And Michael Levine pioneers Chief Financial Officer.

I'd like to turn the call over to Scott to begin.

Good afternoon and thank you all for joining us today to discuss our first quarter 2022 results.

Good afternoon, and thank you all for joining us today to discuss our first quarter 2022 results.

Pioneer had a very strong first quarter. We delivered revenues and adjusted EBITDA well ahead of our expectations as we continued to drive strong new customer acquisition and increasing adoption of higher value services, especially in faster growing markets around the world.

<unk> had a very strong first quarter, we delivered revenues and adjusted EBITDA well ahead of our expectations as we continued to drive strong new customer acquisition, and increasing adoption of higher value services, especially in faster growing markets around the world.

The pioneer brand continues to be an important and growing asset as we see increasing demand among small businesses, marketplaces and partners around the world, eager to participate in the digital economy across a diverse range of vertical markets including e-commerce, freelancing, content creators, social platforms, digital marketing, remote work, travel and distance learning.

The <unk> brand continues to be an important and growing asset as we see increasing demand among small businesses marketplaces and partners around the world eager to participate in the digital economy across a diverse range of vertical markets, including E Commerce freelancing content creators.

Social platforms digital marketing remote work travel and distance learning.

Pioneer has emerged as a leading on-ramp to the global digital economy for small businesses worldwide, reinforcing our growing role as the world's go-to partner for digital commerce everywhere.

<unk> has emerged as a leading on ramp to the global digital economy for small businesses worldwide reinforcing our growing role as the worlds go to partner for digital Commerce everywhere.

and our growth is truly global and increasingly diversified.

Our growth is truly global and increasingly diversified we had year over year revenue growth of over 50% for our fastest growing markets, which include regions like Latin America, Southeast Asia, and South Asia, The Middle East and North Africa, and excludes the developed markets of North America, Europe and great.

We had year-over-year revenue growth of over 50% for our fastest-growing markets, which include regions like Latin America, Southeast Asia, and South Asia, the Middle East, and North Africa, and excludes the developed markets of North America, Europe , and greater China.

For China, we see tremendous untapped potential in developing markets globally and our go to market investments are delivering strong results as we continue to have a new customer feedback period globally of less than 12 months.

We see tremendous untapped potential in developing markets globally and our go to market investments are delivering strong results as we continue to have a new customer payback period globally of less than 12 months.

Our partnerships are increasingly important contributors to this growth, and we are excited about the potential to accelerate our momentum with a growing range of partners, including SaaS platforms, banks, and mobile wallets, which help us efficiently acquire new customers, and also to offer our joint customers a unique, integrated experience. We were excited to launch a new partnership this quarter with Bcash, the largest mobile wallet in Bangladesh.

Partnerships are increasingly important contributors to this growth and we are excited about the potential to accelerate our momentum with a growing range of partners, including SaaS platforms banks, and mobile wallets, which help us efficiently acquire new customers and also to offer our joint customers a unique integrated.

Experience, we were excited to launch a new partnership this quarter with D cash the largest mobile wallet and Bangladesh.

and we are particularly excited by the progress we're making executing on our strategy to broaden Payoneer's portfolio of higher value services and to increase the number of Payoneer customers using those services.

And we are particularly excited by the progress, we're making executing on our strategy to broaden <unk> portfolio of higher value services and to increase the number of <unk> customers using those services. These higher value services are key to our effort to become the financial partner of choice for our customers.

These higher value services are key to our effort to become the financial partner of choice for our customers and to generate higher cake rates from our customer relationships. Broadly speaking, there are two types.

And to generate higher take rates from our customer relationships broadly speaking there are two types of higher value services. The first is higher value accounts receivable services for Smbs getting paid is the lifeblood of our business and our primary focus is improving the way smbs get.

The first is higher value accounts receivable services for SMD.

Getting paid is the lifeblood of a business, and our primary focus is improving the way SMBs get paid by providing differentiated tools to improve their global sales. The second type of fire value service.

Need by providing differentiated tools to improve their global sales.

The second type of higher value service is higher value accounts services through which we provide smbs the financial services they need to manage their global business. After they have gotten paid.

through which we provide SMDs, the financial services they need, to manage their global business after they have gotten paid.

Our global B2B APAR offering is a higher value accounts receivable service for SMBs, providing small businesses with better ways to get paid from their B2B trading partner.

Our global <unk> offering is a higher value accounts receivable service for Smbs, providing small businesses with better ways to get paid from their BW trading partners. Once again this quarter <unk> was a key contributor to our growth.

Once again, this quarter, B2B APAR was a key contributor to our growth.

B2B APAR volumes grew approximately 57% year over year with a two-year cagger of over 90%.

<unk> volumes grew approximately 57% year over year with a two year CAGR of over 90%.

B2B APAR represented 11% of our volume, up from 8% a year ago. We are still in the very early stages of this multi-trillion dollar addressable market opportunity.

<unk> represented 11% of our volume up from 8% a year ago.

We are still in the very early stages of this multi trillion dollar addressable market opportunity.

We have been increasing our investment in B2B APAR, hiring more sales resources, and working with our global teams to acquire new customers, and to upsell B2B APAR to existing Payoneer customers.

We have been increasing our investment in <unk>.

Our hiring more sales resources and working with our global teams to acquire new customers and to up sell <unk> to existing paying your customers. The majority of our <unk> customers are new to pannier, which demonstrates the strength of the <unk> brand and our ability to acquire and grew.

The majority of our B2B APAR customers are new to Pioneer, which demonstrates the strength of the Pioneer brand and our ability to acquire and grow a new complementary business at scale, all while pointing to the significant incremental addressable market opportunity we have in B2B APAR.

ROE a new complementary business at scale.

All while pointing to the significant incremental addressable market opportunity we have in <unk>.

And Merchant Services is another higher value accounts receivable service and one of the largest market opportunities in digital commerce as we work to enable businesses around the world to simplify the complexity of getting paid by consumers globally. We are especially excited about Payoneer Checkout, our offering for small business

Merchant services is another higher value accounts receivable service and one of the largest market opportunities in digital commerce as we work to enable businesses around the world to simplify the complexity of getting paid by consumers globally, we are especially excited about paying your checkout our.

<unk> for small businesses, while it is still in the very beginning of our gradual rollout of pay in your checkout, we're getting very positive customer feedback and we are building momentum with a growing pipeline of new customers and with new partners for what we expect will be an important growth driver for many years to come.

While it is still in the very beginning of our gradual rollout of paying your checkout, we are getting very positive customer feedback and we are building momentum with a growing pipeline of new customers and with new partners for what we expect will be an important growth driver for many years to come.

Our Payoneer Commercial MasterCard is a good example of a higher value account.

Our pay in your commercial Mastercard is a good example of a higher value accounts service generating higher value from the P&L account after our customers have gotten paid.

generating higher value from the pay-in-your-account after our customers have gotten paid.

The commercial card enables our small business customers to better manage their business and drive their growth and also saves our customers money while generating a higher than average take rate for Payoneer. This is a compelling tool for businesses that aren't based in the U.S. but are selling globally.

The commercial card enables our small business customers to better manage their business and drive their growth and also saves our customers money, while generating a higher than average take rate for <unk>. This is a compelling tool for businesses that arent based in the U S, but are selling globally.

During the first quarter we continue to increase our penetration of customers for our commercial card and introduce more customers to our cash back rewards programs. We are still in the relatively early stages of growth for our commercial card and we continue to be optimistic about the long runway ahead for this exciting opportunity.

During the first quarter, we continued to increase our penetration of customers for our commercial card and introduce more customers to our cashback rewards programs. We are still in the relatively early stages of growth for our commercial card and we continue to be optimistic about the long runway ahead for this exciting opportunity.

Overall, these higher value services are core to our strategy to drive an important evolution in our business as Payoneer customers are increasingly using our platform for a broader set of more sophisticated needs.

Overall these higher value services are core to our strategy to drive an important evolution in our business as pay and your customers are increasingly using our platform for a broader set of more sophisticated needs. Many small businesses are using paying your more as their primary global financial partner.

Many small businesses are using Payoneer more as their primary global financial partner than as a payment processor. In aggregate, as of March 31, 2022, our customers maintained more than $4 billion of balances on the Payoneer platform, pending their use of one or more of our services.

And then as a payment processor in aggregate as of March 31, 2022, our customers maintained more than $4 billion of balances on the Pn your platform pending their use of one or more of our services.

To help illustrate this, I'm going to share the stories of a few of our inspiring customers and partners that highlight the exciting opportunity for entrepreneurs around the world and help demonstrate how Payoneer is an important partner supporting their growth.

Illustrate this I'm going to share the stories of a few of our inspiring customers and partners that highlight the exciting opportunity for entrepreneurs around the world and help demonstrate how pan here is an important partner supporting their growth.

Tata Electronics is a pioneer customer from Southeast Asia that sells electronic parts to consumers worldwide.

<unk> electronics is attaining your customer from southeast Asia that sells electronic parts to consumers worldwide.

Tata is one of our Payoneer checkout customers and has integrated Payoneer checkout into its web store to process payments from its customers who are largely based in the United States, Europe , and Australia.

Data is one of our pannier checkout customers and is integrated painter checkout Intuit's web store to process payments from its customers who are largely based in the United States Europe and Australia.

Once we settle the funds to their Payoneer account, KEDA is then using their Payoneer global account to manage and distribute their funds across multiple entities, countries, and banks around the world.

Once we settled the funds to their pannier account data is then using their painter global account to manage and distribute their funds across multiple entities countries and banks around the world.

Bcash, a leading mobile wallet in Bangladesh with over 50 million registered customers, launched in Q1 as a Payoneer for banks partner. Bcash has integrated Payoneer into their mobile wallet to enable freelancers that use Payoneer for their cross-border sales to get real-time settlement from their Payoneer accounts into their Bcash account.

The cash a leading mobile wallet in Bangladesh with over 50 million registered customers launched in Q1 as a painter for banks partner.

<unk> cash is integrated pioneer into their mobile wallet to enable freelancers that use pioneer for their cross border sales to get real time settlement from their payer accounts into their be cash accounts.

We are excited to collaborate with Bcash to drive cost-effective new customer acquisition for Payoneer, to improve customer experience for our shared customers, and to support the continued development of the services exports ecosystem in Bangladesh.

We are excited to collaborate with be cash to drive cost effective new customer acquisition for pioneer to improve customer experience for our shared customers and to support the continued development of the services exports ecosystem in Bangladesh.

And Xi'an is a leader in offering fast fashion for digitally savvy consumers and one of the fastest growing e-commerce businesses in the world. Xi'an has partnered with Payoneer to support and facilitate Xi'an's global expansion and to open up new Xi'an marketplaces.

And Sheehan is a leader in offering fast fashion for digitally savvy consumers and one of the fastest growing e-commerce businesses in the world.

<unk> has partnered with <unk> to support and facilitate <unk> global expansion and to open up new Sheehan marketplaces, our first launch together as in Brazil, with Sheehan using pannier to pay marketplace sellers.

Our first launch together is in Brazil with Shein using Payoneer to pay marketplace sellers.

In these examples, we have entrepreneurs tapping into the digital economy to grow globally and Pioneer is helping them achieve their potential.

These examples we are entrepreneurs tapping into the digital economy to grow globally, and pannier is helping them achieve their potential.

That's why we are continuing to make significant investments in R&D to broaden our product offering and sales, as we have demonstrated that our go-to-market investments have a very positive ROI.

That's why we are continuing to make significant investments in R&D to broaden our product offering and sales as we have demonstrated that our go to market investments have a very positive ROI.

These investments together enable us to deliver more value to our customers, to further strengthen our competitive edge, and to improve our ability to monetize the volume on the Payoneer platform, while also increasing the level of engagement with our customers.

These investments together enable us to deliver more value to our customers to further strengthen our competitive edge and to improve our ability to monetize the volume on the pay in your platform, while also increasing the level of engagement with our customers.

We also executed very well on our investment plan in the first quarter with hiring generally in line with our expectations.

We also executed very well on our investment plan in the first quarter with hiring generally in line with our expectations.

All of this momentum translated into strong financial results for our first quarter. We generated revenues of $137 million, an increase of over 36% compared to prior year results.

All of this momentum translated into strong financial results for our first quarter, we generated revenues of $137 million, an increase of over 36% compared to prior year results.

Adjusted EBITDA was $10 million, which highlights the operating leverage in our business model even while we continue to ramp up investment in the

Adjusted EBITDA was $10 million, which highlights the operating leverage in our business model, even while we continue to ramp up investment in the business.

As a result of our positive momentum in an increasingly diverse set of geographies and vertical markets and the growth of higher value services, our cake rate increased meaningfully to 94 basis points from 75 basis points in the prior year's first quarter.

As a result of our positive momentum and an increasingly diverse set of geographies and vertical markets and the growth of higher value services, our take rate increased meaningfully to 94 basis points from 75 basis points in the prior year's first quarter, we continued to execute well on our multi year strategy and <unk>.

We continue to execute well on our multi-year strategy and our continued solid financial performance reaffirms our ability to create strong value and monetization. And we remain very excited about the long-term market opportunity for digital commerce globally and very confident in our strategy to be the world's go-to partner for digital commerce everywhere.

Our continued solid financial performance reaffirms, our ability to create strong value and monetization and we remain very excited about the long term market opportunity for digital commerce globally, and very confident in our strategy to be the worlds go to partner for digital Commerce everywhere.

We also continue to be focused on the safety and well-being of our employees and customers in Ukraine.

We also continue to be focused on the safety and wellbeing of our employees and customers in Ukraine.

People are at the heart of everything we do, and our thoughts are with them in what continues to be a very challenging time. In our last call, the war in Ukraine was in its early stages.

People are at the heart of everything we do and our thoughts are with them and what continues to be a very challenging time.

On our last call the war in Ukraine was in its early stages.

Since then, we have been proactively reducing our activity in Russia and Belarus, relocating or terminating all of our contractors in those regions, turning off new customer signups at painter.com, and working collaboratively with partners to reduce their activity all while implementing the sanctions requirements in the region. In addition, we have made donations to humanitarian causes in Ukraine and are working to support Ukrainian refugees.

Then we have been proactively reducing our activity in Russia and Belarus.

Locating or terminating all of our contractors in those regions turning off new customer sign ups at painter Dot com and working collaboratively with partners to reduce their activity all while implementing the sanctions requirements in the region.

In addition, we have made donations to humanitarian causes in Ukraine and are working to support Ukrainian refugees. The war is impacting our 2020 to business results, though so far only moderately.

The war is impacting our 2022 business results, though so far only moderately.

Russia and Belarus together were expected to represent less than 3% of our revenues and combined with Ukraine, less than 10% of our revenues.

Russia, and Belarus, together were expected to represent less than 3% of our revenues and combined with Ukraine less than 10% of our revenues in the first quarter. There was less revenue impact than we initially expected as our partners are gradually curtailing their activity in Russia, and Fortunately because most.

In the first quarter, there was a less revenue impact than we initially expected as our partners are gradually curtailing their activity in Russia. And fortunately, because most of our employees and a number of our Ukrainian customers have found their way to safety and have continued to find ways to work, albeit at reduced levels.

Of our employees and a number of our Ukrainian customers have found their way to safety and have continued to find ways to work, albeit at reduced levels.

This situation continues to be unpredictable and evolving, and we remain concerned for our colleagues and customers in Ukraine.

The situation continues to be unpredictable and evolving and we remain concerned for our colleagues and customers in Ukraine.

Given our strong financial position, our strong financial performance, our brand, momentum, and large market opportunities, I remain very optimistic about our brand.

Given our strong financial position, our strong financial performance, our brand momentum and large market opportunities I remain very optimistic about our future. We are building on our solid foundation and just beginning to explore our potential as a global platform, enabling businesses to succeed across all.

We are building on a solid foundation and just beginning to explore our potential as a global platform enabling businesses to succeed across all digital sales channels and with a broad range of services that they need.

All digital sales channels and with the broad range of services that they need we have a highly resilient business model with a differentiated competitive advantage. We went in the market because of our global brand our strength in developing markets, our strong ecosystem of partners and marketplaces.

We have a highly resilient business model with a differentiated competitive advantage. We win in the market because of our global brand, our strength in developing markets, our strong ecosystem of partners and marketplaces, the breadth of our offering for small businesses, deep risk management and compliance expertise, our amazing team, and our scalable business model.

<unk> of our offering for small businesses deep risk management and compliance expertise, our amazing team and our scalable business model and now with pay in your checkout joining <unk>.

And now with Payoneer Checkout joining B2B APAR as promising higher value accounts receivable services and strong growth in developing markets, our future is bright indeed.

As promising higher value accounts receivable services and strong growth in developing markets our future is bright indeed.

I would like to thank the Payoneer team for their great efforts to deliver real value for our customers, to deliver positive financial results, and to set us up for sustainable long-term success. I'll now hand it over to Michael to discuss financial results and forward guidance in more detail.

I would like to thank the <unk> team for their great efforts to deliver real value for our customers to deliver positive financial results and to set us up for sustainable long term success I will now hand, it over to Michael to discuss financial results and forward guidance in more detail.

Thank you Scott. Indeed it was a very strong quarter.

Thank you Scott.

It was a very strong quarter.

Q1 revenue increased 36% year of the year to $137 million.

Q1 revenue increased 36% year over year to $137 million.

As Scott mentioned, we attracted many new customers, especially from fast-growing regions such as Latin America, Southeast Asia, and the Middle East, which in general have higher than average takers.

As Scott mentioned, we attracted many new customers, especially from fast growing regions, such as Latin America, Southeast Asia, and the Middle East, which in general have higher than average take rates.

We also benefited from strong customer adoption of our higher value services such as B2B AP, AR, and commercial card. The Q1 take rate was $1,000.

We also benefited from strong customer adoption of our higher value services such as BBB.

Dr and commercial card.

Q1 take rate was 94 basis points, a significant increase from 75 basis points in Q1, 2021, and 86 basis points from Q4 of 2021, primarily driven by continued adoption of higher value services.

a significant increase from 75 basis points in Q1 2021 and 86 basis points in Q4 of 2021. Primarily driven by continued adoption of higher value services and an increased mix in high growth developing markets with higher take rates along with non-volume based services.

Increased mix in high growth developing markets with higher take rates along with non volume based services.

Q1 volume increased 10% year of the year to $14.6 billion.

Q1 volume increased 10% year over year to $14 6 billion.

Solid volume growth across a wide range of verticals and geographies is partially offset by softness and e-commerce, which continues to phase headwinds caused by changes in consumer purchasing behavior, inflation, and supply chain disruption.

Solid volume growth across a wide range of verticals and geographies and was partially offset by softness in ecommerce, which continues to face headwinds caused by changes in consumer purchasing behavior inflation and supply chain disruptions.

Q1 B2B APAR volume through 58% year of the year.

Q1, <unk> volume grew 58% year over year.

Q1 transaction costs were $25.6 million, representing 18.7% of revenues, and improvement from 20% in Q1 2021.

Q1 transaction costs were $25 6 million.

The 18, 7% of revenues.

<unk> grew 20% in Q1 2021.

The improvement in transaction costs as percent of revenues is driven by operating leverage derived on our scale, which is reflected in improved pricing from our bank and processor costs.

The improvement in transaction costs as a percent of revenues was driven by operating leverage derived from our scale.

As reflected in improved pricing from our bank and processing costs.

Q1 total operating expenses, including transaction costs, were $143.3 million, up 40.8% from Q1, 2020.

Q1, total operating expenses, including transaction costs were $143 3 million up 48% from Q1 2021.

Excluding stock base compensation, Q1 total operating expenses increased 34% over Q1 2021.

Excluding stock based compensation Q1, total operating expenses increased 34% over Q1 2021.

The biggest component of our operating expense is our labor cost.

The biggest component of our operating expense is our labor cost.

In Q1, we met our hiring expectations and continue to make significant investments, particularly in R&D and sales, while also investing in our global technology infrastructure to support onboarding of additional customers, enhancing our regulatory compliance capabilities, and expanding our transactional capacity.

In Q1, we met our hiring expectations.

We continue to make significant investments, particularly in R&D and sales while also investing in our global technology infrastructure to support Onboarding of additional customers.

Hansen, our regulatory compliance capabilities and expanding our transactional capacity.

Q1 adjusted EBITDA was $10.4 million compared to $7.8 million in the first quarter of last year, an increase of 33 percent.

Q1, adjusted EBITDA was $10 4 million.

Appeared to $7 8 million.

In the first quarter of last year, an increase of 33% Q.

G1 net income was $20.2 million, compared to a net loss of $3.5 million in the first quarter of last year.

Q1, net income was $20 2 million.

Compared to a net loss of $3 5 million in the first quarter of last year.

The main driver of the increase in net income was a $31 million gain from change in fear value of war.

The main driver of the increase in net income was a $31 million gain from change in fair value of warrants.

Q1 basic earnings per share was 6 cents based on 342 million weighted average basic shares outstanding and Q1 diluted earnings per share was 6 cents based on 366 million weighted average diluted shares.

Q1 basic earnings per share was success based on 342 million weighted average basic shares outstanding.

In Q1 diluted earnings per share.

<unk> based on 366 million weighted average diluted shares outstanding.

We ended the quarter with cash and cash equivalents of $466 million, relatively flat with the end of 2021.

We ended the quarter with cash and cash equivalents of $466 million relatively flat with the end of 2021.

Customer funds grew in Q1 by over $200 million to $4.6 billion.

Customer funds grew in Q1 by over $200 million.

$246 billion.

We continue to work on increasing the interest-earning potential of our cash balances without changing our risk profile.

We continue to work on increasing the interest earning potential of our cash balances without changing our risk profile.

Turning to our outlook for full year 2022, we're happy to share that we are raising our prior guidance provided in March. Based on our strong first quarter results and our review into April , together with our current assessment of how our business is trending in light of the broader macroeconomic geopolitical environment, we are raising our revenue guidance to $550 million to $560 million.

Turning to our outlook for full year 2022, we're happy to share that we are raising our prior guidance provided in March based on our strong first quarter results.

Into April together with our current assessment of how our business is trending in light of the broader macroeconomic and geopolitical environment, we are raising our revenue guidance to $550 million to $560 million.

Reducing transaction cost as a percent of revenue to 21.5 percent.

<unk> transaction costs as a percent of revenue to 21, 5%.

and increasing our adjusted user guide guidance to be between negative $10 million to negative $20 million.

And increasing our adjusted EBITDA guidance to be between negative $10 million to.

The negative $20 million.

We believe our go-to-market investments in higher-value services, such as B2B, APAR, and Commercial Court, will continue to generate above-average revenue growth, and we expect to benefit from continued strong growth in developing markets.

We believe our go to market investments in higher value services, such as <unk> and commercial court, we will continue to generate above average revenue growth.

Expect to benefit from continued strong growth in developing markets.

Although we expect softness and e-commerce trends to continue for some period of time due to pressures in the broader global economy, we believe that growing international travel

Although we expect softness in e-commerce trends to continue for some period of time due to pressures in the broader global economy.

We believe that growing international travel and increased interest income due to the recent and anticipated federal reserve rate hikes will.

and increased interest income due to the recent anticipated Federal Reserve rate hikes will help grow overall revenue.

Help grow overall revenues.

Regarding the situation in Ukraine, we had previously shared that we were yearning at the remaining 10 months of revenues for Ukraine, Russia, and Belarus, which equated to approximately $46 million.

Regarding the situation in Ukraine.

Previously shared that we were zeroing out the remaining 10 months of revenues.

<unk>, Russia, and Belarus, which equated to approximately $46 million.

As Scott mentioned earlier, while the situation in the region remains fluid, you now believe it is more likely we will retain some of our existing business in Ukraine, while the business in Russia and Belarus will continue to decline.

As Scott mentioned earlier, while the situation in the region remains fluid. We now believe it is more likely we will retain some of our existing business in Ukraine.

And Russia, and Belarus will continue to decline we have now increased our forecast to assume approximately 50% of the original forecasted revenue collectively for all three countries for the remaining three quarters of the year.

We have now increased our forecast to assume approximately 50% of the original forecasted revenue collectively for all three countries for the remaining three quarters of the year.

However, there is still tremendous volatility in a wide range of possible

However, there is still tremendous volatility in a wide range of possible outcomes.

Based on our assumptions and the timing of events, we expect total Q2 revenue will be below Q1 revenue as a result of the impact from Ukraine, Russia, and Belarus.

On our assumptions and the timing of events. We expect total Q2 revenue will be below Q1 revenue as a result of the impact from Ukraine, Russia and builders.

We expect continued strong take-rate performance in 2022 as our fast-growing developing markets and higher-value services increase in mix compared to the lower take-rate e-commerce vertical, which is growing more slowly.

We expect continued strong performance in 2022.

Fast growing developing markets and higher value services increase mix compared to the lower take rate e-commerce vertical which is growing more slowly.

We expect transaction costs over 2022 to be approximately 21.5% of revenues and improvement from our previous guidance.

We expect transaction costs over 2020 to be approximately 21, 5% of revenues and.

An improvement from our previous guidance of 22%.

This improvement comes from reducing our banking costs, slightly offset by higher borrowing costs for our working capital products, as well as new costs related to our growing merchant surface.

This improvement comes from reducing our banking costs slightly offset by higher borrowing costs for working capital products as well as new costs related to our growing merchant services business.

As previously mentioned, we're also revising our 2022 adjusted EBITDA guidance to be between negative $10 million to negative $20 million.

As previously mentioned.

Also revising our 2022 adjusted EBITDA guidance to be between negative $10 million to negative $20 million.

This improved guidance is the result of our revenue growth and lower transaction cost as per cent revenue.

This improved guidance is the result of our revenue growth and lower transaction costs as a percent of revenue.

we will continue to pursue our investment strategy, which we believe will not deviate much from our initial

We will continue to pursue our investment strategy, which we believe will not deviate much from our initial plan.

In conclusion, our Q1 success once again demonstrated our ability to deliver strong results even as we faced the challenging macro environment with the war in Ukraine and e-commerce headwinds. We have built a resilient business model that benefits from a diverse set of revenue drivers and we see positive trends such as growth in B2B APAR and strong customer adoption of our commercial corridor.

In conclusion, our Q1 success once again demonstrated our ability to deliver strong results, even as we face the challenging macro environment with the war in Ukraine and ecommerce headwinds.

Our resilient business model that benefits from a diverse set of revenue drivers and we see positive trends such as growth in <unk> and strong customer adoption of our commercial card offering.

We will continue to benefit from increased cross-border travel, interest income and go to market investments in high growth developing regions.

We will continue to benefit from increased cross border travel interest income go to market investments in high growth developing regions.

As we increase our investment in these developing markets and launching products, we believe there are additional short-term and long-term growth opportunities that can add upside to our growth.

As we increase our investment in these developing markets and launch new products. We believe there are additional short term and long term growth opportunities that can add upside to our guidance.

On behalf of Scott and myself and the rest of the Painter Management Team, we thank you all for the continued interest and support. We are now happy to answer any questions you may have.

On behalf of Scott and myself and the rest of the pain of our management team. We thank you all for the continued interest and support we are now happy to answer any questions you may have.

Operator, please open the line.

Absolutely. If you'd like to ask a question, please press star followed by one on your telephone keypad. If for any reason you'd like to remove that question, please press star followed by two.

Absolutely.

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The first question comes from Bob Napoli with William Blair.

The first question comes from Bob Napoli with William Blair. Please proceed.

Thank you. Thank you for the question and solid results.

Alright. Thank you. Thank you for the question Ken solid solid results.

good to see. The growth in B2B APAR and the take rate, I guess, linked together. B2B APAR, I guess, I think you said, now 11%.

Good to see the growth in.

<unk> and the take rate I guess.

Link together.

<unk> I guess I think you said now 11% up from five 8% a year ago, 57% year over year growth.

up to 5%, 8% a year ago, 57% year-to-year growth. Where are we, what, I mean, is the take-weight, the growth you've seen?

Hi.

I mean is the take rate.

<unk> seen some.

Sustainable, as we should see, continued increase in the take rate and that B2B APAR.

Stable, how should we should see continued increase in the take rate in <unk>.

Sure.

Uh, sounds like it's, you know, very profitable given the take away.

It sounds like very profitable given the take rate.

You know, where can B2B, A-P-A-R go as a percentage of the total business over the next five years?

Where it can be <unk>.

<unk> as a percentage of the total business over the next five years.

Hey, Bob. Thanks for the question. So we're really, really excited about the overall large addressable opportunity that we have with the APAR. You know, we're

Great Hey, Bob.

Thanks for the question.

So we're really really excited about the overall large addressable opportunity that we have with <unk>.

We're.

focusing our efforts on what is a multi-trillion dollar part of the market of cross border flows between businesses that are trading partners. And we have something that we really think is it's quite unique and differentiated in the value we're able to provide to small businesses. So we still think we're in the relatively early stages there of what is a very large market opportunity.

Focusing on our efforts on what is a multi trillion dollar.

Part of the market cross border flows between businesses.

Our trading partners.

And we have something that we really think is quite unique and differentiated.

And the value, we're able to provide to small businesses. So we still think we're in the relatively early stages. There of what is a very large market opportunity.

So over the next several years you know not putting any timeline on it. You know we think it's possible that B2B APR could even be bigger than our marketplace business for example. We think it has that kind of potential and we think we have that kind of focus and momentum and opportunity ahead. We are continuing to actively invest.

So over the next several years.

Not putting any timeline on it we think it's possible that <unk> could even be bigger than our marketplace business. For example, we think it has that kind of potential and we think we have that kind of.

<unk> focus and momentum and opportunity ahead.

We are continuing to actively invest.

both in product and in sales. And so we, again, are focused on this being an important driver of growth, not just for the rest of 2022, but for years to come. So this is really one of the core drivers for Payamere. From a TAPRE perspective, I'll let Michael talk a little bit about B2B APR from a TAPRE perspective and how that actually impacts the business. Sure, Yvonne. Sorry.

Both in product and in sales.

And so we again are focused on this being an important driver of growth.

Not just for the rest of 2022, but for years to come.

So this is really one of the core drivers for pay in your.

From a takeaway perspective, I'll, let Michael talk a little bit about <unk>.

<unk> from a take rate perspective, and how that actually impacted us.

Alright.

The.

It could be to be the AR business as effectively keep low. We make revenue inbound as well as on outbound. So it has a higher take rate. And we had shared it, I believe it was. We did the last earnings call that in general, we can dimension normal this by thinking about it as one and a half times our normal take rate.

The b to B business.

Yeah.

We make revenue.

On an inbound as well.

Outbound so it has a.

Higher take rate.

Sure.

Yes.

Moving to the last earnings call General.

By thinking about it.

Five times.

Our normal bakery.

thinking about it from a revenue perspective. So when we talk about volume being 11 percent, obviously, it's a larger percent than revenue. But it is one of the drivers that is helping take great. So obviously with 94 basis points in the quarter, very strong. We talked about combination of a number of higher value services. DBAKR is one of those components along with

You bet.

As expected.

When we talk about volume.

Being pursued.

Percent obviously.

It's a larger percent of revenue.

It is one of the drivers that is helping take rate. So obviously with 94 basis points in the quarter very strong we've talked with the combination of a number of higher value services.

<unk> is one of those components along with.

the commercial product offering and other services.

The commercial card offering.

Other services.

mix of country customers coming from

Country customers coming from high growth high take rate countries. Those are all supporting the.

high growth, high-takerate countries, so those are all supporting the overall strength and take rate, and I would say that we look at that take rate as relatively, you know, stable, and so if you were kind of in that ballpark of 90 basis points,

Overall strength.

And take rate I would say that.

We look at that take rate is relatively.

Stable.

If you are kind of in the ballpark of 90 basis points or so I think we would see as we go out realm.

or so, I think we would see as we go out, relatively stable too.

Relatively stable too.

Thank you. And then just a follow-up on the, I mean, it seems like the take rate, the increase in interest rates rebound and travel that

Thank you and then just a follow up on the.

It seems like with the take rate the increase in interest rates.

Rebound in travel.

<unk>.

you could drive some pretty good profitability in the business on the EBITDA level sooner rather than later. But I know you have a great balance sheet. You certainly don't need.

You can drive some pretty good profitability.

In the business on the EBITDA level.

Sooner rather than later, but I know you have a great balance sheet.

You certainly don't need capital. So you have plenty of firepower to invest but what are your thoughts on.

capital. So you have plenty of firepower to invest. But what are your thoughts on your confidence in the long term?

And your confidence in the long term margins why not drive some more profitability.

margins, you know, why not drive some more profitability?

in the near term given the things like some of the momentum you have behind the business, understanding the uncertainty especially in portions of your business.

In the near term.

Given the it seems like some of the momentum you have behind the business understanding the uncertainty, especially in portions of your business.

Yeah, so maybe I'll continue. I'll fake it and then hand it off to Scott.

Yes, so maybe I'll continue I'll take it and hand, it off to Scott on that but.

You know, I think the results of the first quarter speak to themselves in terms of our ability.

I think the results of the first quarter speak for themselves in terms of our ability to generate.

to generate a strong need to dot our business while I should add investing heavily in our platform for future expansion and future growth.

Strong EBITDA in our business, while I should add investing heavily.

In our platform.

For future expansion and future growth.

I think this is a validation point that what we're doing is working in terms of our business model.

I think this is a validation point that what we're doing is working in terms of our business model.

And our approach is always to think long term and not, you know, be swayed by the short term, you know,

And our our approach is always to think long term and not.

You swayed by the short term.

Yes.

market whims and so I think what we believe that the approach that we should take is accelerated investment. We think we see that the opportunity to onboard customers beneath the ability to cross out is a strong, strong driver in our commitment to expand the platform, invest in the technology, build that additional product.

Market wins, and so I think.

We believe that the approach that we should take this accelerated investment we think we see.

That the opportunity to onboard customers needs the ability to cross sell.

It is.

A strong strong driver and our commitment to expand the platform invest in the technology build out additional product.

Bring on more customers that we can sell more to and get a larger share of the wallet to drive a lifetime down.

Bring on more customers that we can sell more to and get a larger share of wallet.

Lifetime value.

and ultimately drive profitability in the long term. But we're in the investment, you know, it's a multi-year investment stage. I think we've proven ourselves out and, you know,

And ultimately drive profitability in the long term, but we're going to invest.

It's a multi year investment stage I think we've proven ourselves out.

And.

The market will understand as we show variable profitability continuing to increase, increasing margins.

That the market will understand.

As we show variable profitability, continuing to increase and increase in margins.

as we see our transaction costs coming down as a percent of revenues.

Our transaction costs coming down as a percent of revenues.

to take advantage of that market leadership position and to, you know, invest, you know, to take advantage of those opportunities that we see now.

Two.

Take advantage of that market leadership position and to.

Yes.

To take advantage of those opportunities that we see net.

to build those products that will allow us to have a very strong leadership position in the future in many, many large stands, I should say. So, we're building out in a number of incredibly large addressable markets. We obviously have our, you know, traditional marketplace business, but off-market place in terms of the BAKAR, where, you know, we just recently announced

To really build those products that will allow us to.

Have a very strong leadership position in the future.

Many.

Large stands I should say so we're building out the number.

Incredibly large addressable markets.

Yes.

Our traditional marketplace business, but off marketplace in terms of BPA KAR.

We are.

Just recently announced.

our checkout initiatives for merchant services. We continue to build out our capital business. So there are a number of very large tams that we're addressing, and we're at the early, early stages.

Our checkout.

<unk> merchant services, we continue to build out our capital business. So there are a number of early large tam that we're addressing an early early stages.

and we believe that the best outcome for our shareholders is that commitment to the long-term strategy.

And we believe that.

Yes.

The best.

The outcome for our shareholders.

So the long term strength.

Very clear thank you.

Thanks, Bob.

Thank you. The next question comes from Ashwin Sherbicur. With City, please proceed. Thank you.

Thank you. The next question comes from Ashwin sure Victor with Citi. Please proceed.

Thank you.

Great quarter folks.

I just want to take you up on, there was a comment at the very end of the prepared remarks about factors that can lead to upside beyond the updated outlook.

I just wanted to take you up on there was a comment at the very end of your prepared remarks about factors that can lead to upside beyond the.

Beyond the updated outlook.

Look.

Did you break that down if you don't mind what are these factors and are you able to

You break that down.

If you don't mind what are these factors in the EU.

Yes.

Two.

know, perhaps, you know, try to quantify directionally the upside.

Perhaps.

Quantify directionally via Skype.

Sure, Sir Hatch was Michael again. I'll take it again, I'll let Scott add to it, but in general, I think we think of ourselves as conservatives. We generally take approaches.

Sure.

So ashwin, it's Michael again, they can again ill, let Scott add to it but.

In General I think we think of ourselves as conservative.

We generally take the approach of putting out guidance that we feel we can deliver on.

putting out guidance that we feel we can deliver on and we work hard to try to deliver and exceed.

And we work hard to try to deliver and exceed.

Our approach is really evaluating all the risks, and obviously we can see from a number of e-commerce companies and other companies that are reporting that there are those

Our our approach is really evaluating all of the risks and obviously, we can see from our number.

E Commerce companies and other companies that are reporting that they are.

challenges in the market in terms of inflation, consumer behavior, supply chain challenges.

Challenges in the market in terms of <unk>.

Inflation.

Changes to consumer behavior.

Fly chain challenges.

And we're evaluating what that might mean and taking that into account in our numbers. And hopefully, we, you know, we see better results than that. But we also, you know, take a, you know,

And and were evaluating.

<unk>, what that might mean and taking that into account in our numbers and hopefully we.

We see better results than that but we also.

Take a.

I think the approach in terms of all the different variables, one thing to note, you know, travel is something that was mentioned earlier. I think travel is, you know, a lot of things.

I think.

Approach in terms of all the different variables one thing to note.

Travel is something that we've mentioned earlier.

I think travel is.

you know it's less than 5% of our revenue so it's not going to be the major driver of overall growth but it's one of many contributors and so we've worked to diversify our revenue streams to make sure that we're less dependent on any one particular vertical but in general I think travel as an example is that each team growth.

It's less than 5% of our revenue so it's not going to be the major driver of overall growth, but it's one of many contributors.

To diversify.

Our revenue streams to make sure that.

We're not less dependent on any one particular.

Vertical.

But in general I think travel as an example is that we've seen growth.

We are seeing international growth now. We expect to continue to see growth in international travel.

We are seeing international growth now, we expect to continue to see growth in international travel.

But probably I would say we kind of look at the range of possible outcomes and take something more in the middle than assuming a best case scenario. So there are a number of different things, whether we think about interest income or travel or e-commerce in terms of growth and how we forecast

But probably I would say, we kind of look at the range of possible outcomes and take something more in the Middle then assuming the best case scenario.

There are a number of different things, whether we think about interest income or travel or E. Commerce in terms of growth and how we forecast.

in terms of, you know, looking at possible scenarios. And what we would think is that we would hope we would hope things come better out that we want to make sure we're in a position that we can deliver on our own.

In terms of.

Looking at possible scenarios.

We would think is that we would hope we would.

We don't think that around because we want to make sure. We're in a position that we can deliver on our numbers.

Okay, okay, got it. Now you for sure you guys have beaten revenue expectation of each quarter. If you could in that in that in that rain, if you could break down the upside that you delivered.

Okay, Okay got it.

For sure you guys have.

Beaten revenue expectation this quarter.

If you could.

In that in that.

In that vein, if you could break down.

Upside that you delivered.

this quarter in more granular fashion. How much of it came specifically from your assumptions regarding Ukraine and Russia, which, you know, were bested versus doing better?

This quarter and more and more granular fashion, how much of it came specifically from your assumptions.

Regarding Ukraine and Russia.

Bested.

Where she is doing better.

with specific products, like B2B, things like that, other factors, she could sort of, you know, maybe could help from the perspective of forward modeling to lay that out.

Got it.

Things like that other factors, if you could sort of.

Maybe you could help.

From the perspective of forward modeling.

Okay.

Yeah. Hey, Ashwin Scott. The BBAR was certainly one of the positive contributors as we touched on also the country mix.

Yeah, Hey, Ashwin Scott.

The <unk> was certainly one of the positive contributors.

As we've touched on also the country mix as we continue to make sales investments and some of the high growth higher take rate regions of the world.

as we continue to make sales investments in some of these high-growth

higher k-grade regions of the world. The overall mix of our volume is positive.

The overall mix of our volume is positive.

in those higher taker parts of the world, and then continued growth of services

And those higher take rate parts of the world.

And then continued growth of services.

like our commercial card that also have a higher take rate, create a lot of value for customers.

Like our commercial card.

I also have a higher take rate, creating a lot of value for customers.

and generate more value for us. So the Ukraine war, it was a smaller part of the impact. We did do better.

And generate more value for us so.

The Ukraine.

Sure.

A smaller part of the impact we did do better.

than what we had actually talked about last time we were together, but that was a smaller part of the beat overall, so it really was.

Then what we had actually talked about last time, we were together, but that was.

Smaller part of the beat overall, so it really was.

uh execution really across the board on those

Execution really across the board on those same themes, we've been talking about for a while the higher value.

The same things we've been talking about for a while, the higher value services and particular B2B APAR and commercial card and the strong performance in these faster growing parts of the world that we think again has tremendous opportunity ahead and we're still relatively early did.

Services in particular in <unk> and commercial card.

And the strong performance in these faster growing parts of the world.

But we think again, we have tremendous opportunity ahead, and we're still relatively early days.

And so those remain the key drivers of the performance.

And so those remain the key drivers of the performance.

Understood. Thank.

Thank you.

Yeah.

Thanks Catherine.

Thank you. The next question comes from Sanjay Bekarani with KBW.

Thank you. The next question comes from Sanjay <unk> with <unk>. Please proceed.

Thanks. Good afternoon. We can have a follow-up, actually, on the same point that Ashwin did. Michael, would you think about some of these macro forces that you mentioned, China, up the inflation as well?

Good afternoon.

I can follow up actually on the same point that ashwin.

Michael when you think about some of these macro forces that you mentioned China.

<unk> as well.

You know, what sort of a baseline you're using in your base case as far as how severe those are going to be? Because I know some technologies, companies have come out and sort of quantified a significant impact, but it's going to happen sort of later this year, so maybe you just give us some sense of sort of what the baseline is.

What's sort of the baseline youre using in your base case as.

As far as how severe those are going to be because I know some technologies companies have come out and sort of quantified a significant impact, but it is going to happen sort of later this year. So maybe you can just give us some sense of sort of what the baseline is.

Yeah, so, you know, if we look at e-commerce as an example, we noted that we did see softness in...

Yes.

If we if we look at ecommerce as an example.

We did see softness.

In E Commerce.

If you look at the disaggregation of revenues in the queue where it breaks out, you know, regional,

If you look at the disaggregation of revenue into Q breakout regional.

you know, revenue by region, and you look at, let's say, China as a proxy for e-commerce.

<unk> revenues by region, and if you look at let's say China.

As a proxy for e-commerce, and you can see that in the quarter.

Year over year.

We had lower growth in China, and he had rest of the world to the rest of the world growth was much more significant.

And so when we look we obviously are in touch with our customers we hear about.

You know, when we look, we obviously are in touch with our customers. We hear about the challenges that they face as well as the opportunities.

The challenges that they face with royalty opportunities.

We look at ourselves as an enabler to help drive additional growth.

We look at ourselves as an enabler to help drive additional growth.

Customers and trying to help them either manage through the frictions that they are having or at least think about the long term relationships and how to build deeper into those relationships. So as those.

You know, some of those customers might have, you know, talking about from a macro standpoint,

Some of those customers might have talked about from a macro standpoint.

You know, need additional capital or to continue investing in their growth or needs or looking for other opportunities to go off market place and open up their web source, we're providing those solutions to help increase their growth.

Need additional capital or.

To continue investing in their growth.

Or need or looking for other opportunities off marketplace and open up their web stores, we're providing those solutions.

<unk> increased their growth.

And so, I think there are, you know, a number of challenges. So, we talked about supply chain. Obviously, there could be some production issues in China. There are different COVID shutdowns that, you know, kind of rolls in different regions.

So I think there are.

A number of challenges so we talked about supply chain, obviously, there can be some production issues in China there are different so the.

Shutdown.

On a roll regions.

inflation. And so, you know, for us, inflation has, you know, a few different, you know, impacts. One, since the majority of our revenues are at the norm, you know, if volumes swell, the cost of inflation were beneficiary. And if people have less to spend on certain goods, because they're spending more on gas and food, that might lower the amount that they're spending on life. So, over time, we'll have to see what that tradeoff is.

Inflation and so for us inflation has.

A few different impacts one since the majority of our revenues are ad valorem.

If volumes, while the cost of inflation, we're a beneficiary and if people have less to spend on certain goods because they are spending more on gas.

In food that might lower the amount that they're spending offline. So we'll over time, we'll have to see what that trade off.

But overall, you know, we, you know, we, there's incredible resilience.

But overall.

We.

There is incredible resilience both in our customer base, but also the design of our business model.

both in our customer base, but also the design of our business model where, you know, we're not dependent just solely on e-commerce, and so when we look across...

Where we're not dependent just totally uncommon and so when we look across.

at businesses that continue to look at freelance labor to try to bring down their costs.

Net.

Businesses that continue to.

Look at.

Freelance labor trying to bring down their cost.

We're beneficiary of that as well, and a number of other verticals that tend to have

We're a beneficiary of that as well.

A number of other vertical.

Tend to have a <unk>.

an ability to balance themselves out, and so that's

And the ability to balance themselves out so thats one of the things I think people should walk away with is as we highlight the fact that there is growth in e-commerce.

One of the things I think people should walk away with is we highlight the fact that, you know, there's growth in e-commerce, but...

you know, some challenges in that growth.

Some.

Some challenges in that growth we.

We see other parts of the business that continue to grow very strongly that help support them. You know, the comment I made on the last question.

We see other parts of the business that continues to grow.

Very strongly that helps support then the comment I made nonetheless.

And the last question.

about travel again it's a number of different drivers and so some things will step up and so we look at you know again inflationary challenges having a negative as interest rates go up that actually becomes a net positive for us.

About travel again.

A number of different drivers and so some things will step up.

So when we look at.

Again inflationary challenges, having a negative.

As interest rates go up that actually becomes a net positive for us.

And so there's a number of things on a net basis will continue to be positive overall for us.

So theres a number of things on a net net basis, we'll continue to be positive.

We're all for us.

Got it and I guess.

And then we just sort of cycle that through to the revenue guidance range. On the surface it seems like the addition of some of what you thought you might lose is driving.

And then we just sort of cycle that through to the revenue guidance range on the surface. It seems like the addition of some of what you thought you might lose its driving.

the upside to the revenue guidance, but it might be tempered by some of the macro headwinds that you're expecting. Is that right? And then, you know, if we think about these revenues that you now expect to get from that region, the Russia-Ukraine region, like what's the risk to that if the war just continues to happen on a drill forefaces? Thanks.

The upside to the revenue guidance, but it might be tempered by some of the macro headwinds that you're expecting is that right and then.

Think about these revenues that you now expect to get from that region, the Russia, Ukraine region like what's the risk.

That is the award just continues.

To happen on a go forward basis.

Yeah, so, you know, again, I was saying Ukraine, it's fluid, obviously, and we're all praying for things to get better as quickly as possible, for many reasons.

Yes so.

Again, I would say in Ukraine.

Fluid, obviously and we're all praying.

For things to get better as quickly as possible.

For many reasons.

But from a business standpoint, we actually saw, again, based on data,

But from a business standpoint, we actually saw again based on data.

We saw things starting when we had our last conference call, which was when things were just heating up. We took a conservative approach by zeroing out the remaining revenues. What we witnessed in March and April was that the results were impacted, but not at the level

We saw things starting when we had our last conference call.

When things were just heating up.

We took a conservative approach by zeroing out the remaining revenues what we witnessed in March.

In April was that the results were impacted but not at the levels.

that we had had fear and so it's hard to tell longer term just based on effectively two months or more or less two months.

That we had had sphere.

And so it's hard to tell longer term just based on effectively two months or more or less two months.

of data because you could have just as example situations where people are ending contracts and might not reduce because they're afraid of, you know, the country risk of investing in Ukraine. And like, you know, the other direction is we've seen an incredible amount of support for people in Ukraine and people looking to give business to Ukrainians in support of their livelihood.

Of data because you could have just as an example situations where people are ending contracts and might not reduce because they are afraid of.

If the country risk.

Thus in Ukraine, and unlike the other direction as we've seen an incredible amount of support for people in Ukraine and people looking to give business Ukrainians and support.

Their livelihoods and so from a net net basis.

And so from a net basis, we haven't seen as big of an impact as we might have expected, but in our 50% forecast going forward for the remaining nine months, we hope that it's a conservative approach and we hope that it turns up even better than that. But we think that we have discounted appropriately to still be conservative based on what we've seen in the last

We haven't seen.

A big of an impact as we might have expected, but in our 50% forecast going forward for the remaining nine months.

We hope that it's a conservative approach when we hope that it turns out to be even better than that.

But we think that we have discounted appropriately to still be conservative based on what we've seen in the last two months.

And Sanjay, more broadly, the way you talked about, kind of the way you characterized

And Sanjay more broadly the way you talked about kind of the way you characterized.

Our guidance, I think it's a good way to think about it, there are a number of factors that work.

Our guidance update.

I think it's a good way to think about it there are a number of factors at work.

And we have taken a conservative approach.

And we are.

<unk> taken a conservative approach.

So, we're happy to have the strong first quarter, to have a lot of positive trends. There also are, again, a number of crosswinds out there and we're baking that all into an updated guidance that is higher, which we're excited about, but also we've woven some conservatism into the numbers as well. Okay.

We're happy to have.

Strong first quarter to have a lot of positive trends. There also are.

Again, a number of cross wins out there.

We're baking metal into.

Our updated guidance that is higher which we're excited about.

Also.

We build in some conservatism some conservatism into the numbers as well.

Okay, great. Thank you.

Yeah.

<unk>.

Thank you. The next question comes from Josh Siegler with the Cancer Fits Bureau.

Thank you. The next question comes from Josh <unk> with Cantor Fitzgerald. Please proceed.

Yes, hi, thanks for taking my question and congratulations on the strong results this quarter. I'd like to dive a little deeper on the travel volume for a bit. Are you seeing a return to pre-COVID levels or is there still more room for recovery? Additionally, is there still significant volume rise in two travel marketplaces or is the travel vertical become more diversified?

Yes, hi, Thanks for taking my question and congratulations on the strong results this quarter I'd like to dive a little bigger long that snowball volumes are a bit are you seeing a return to pre COVID-19 level or is there still more room for recovery. Additionally, as there is still significant volume to travel marketplaces are the travel vertical will become more.

<unk>.

Yeah. Hey Josh, it's Scott. Good to talk with you. So first in terms of travel and what we have seen and we've touched on this in the past in passing but our exposure in the travel space tends to be a bit more geographically far-flung, tends to be a bit more emerging markets,

Yeah.

Hey, Josh its Scott.

The conferences so.

So first in terms of travel and what we've seen.

And we touched on this in the past.

In passing Brad.

Our our exposure in the travel space tends to be a bit more geographically far flung tends to be a bit more emerging markets.

And those have been slower to come back. We are seeing improvement. We are seeing positive trends.

And.

Those have been slower to come back we are seeing improvement we are seeing positive trends.

And we are actually generally upbeat about how those trends will continue to be positive But overall There has not been a return kind of across the board to where we were in the past From that perspective

And we are actually generally upbeat.

About how those trends will continue to be positive.

Overall.

There has not been a return kind of across the board to where we were in the path.

From that perspective, so still.

still, again, some room to go and overall some positive trends there.

Again, some room to go in overall some positive trends there.

In terms of the travel business overall, as Michael touched on, it's less than 5% of our revenues. We have increased our investment in other vertical markets and other aspects of the business, certainly more significantly than travel.

In terms of the travel business overall.

As Michael touched on it it's less than 5% of our revenues we have increased our investment in other vertical markets and other aspects of the business certainly more significantly than travel.

And so more of the breadth and diversity in our business is coming from those other areas.

And so more of the breadth and diversity in our business is coming from those other areas.

And not within the travel space so much so it's much more of

And not within the travel space. So much so it's much more of.

a play for us outside of the travel vertical, then within the travel

A play for us outside of the travel vertical.

Within the travel vertical.

Understood. Appreciate the color there. And if you touched on this earlier, but given timing, economic forecasts, and higher global inflation, can you provide investors with some more shoulder on the different levers in your control to maintain growth and profitability in a period of macro surveillance?

Understood I appreciate the color there and then you touched on this earlier, but given timing economic forecast when higher global inflation can you provide investors with some more color on the different levers you can pull maintain growth and profitability in a period of macro if everyone.

Yes sure.

<unk>.

And again, I'll start, Michael, feel free to chime in after. So, again, the exciting part of our business really is that the continued momentum towards participation in the digital economy remains very strong, and that digital economy is a very broad and diverse economy with a lot of different vertical markets.

And again I'll start Michael feel free to chime in after so.

So again the exciting part.

Our business really is that.

The continued momentum towards participation in the digital economy remained very strong.

Digital economy is a very broad and diverse economy with a lot of different vertical markets and it's really very global so for us what's exciting is we continue to see.

and it's really very global. So for us what's exciting is we continue to see many opportunities around the world. We are continuing to lean in in these faster growing regions of the world where we're really just scratching the surface of the opportunity.

Many opportunities around the world.

We are continuing to lean in in.

In these faster growing regions of the world, where we're really just scratching the surface of the opportunity.

We're continuing to see lots and lots of momentum across really all of the major areas of our business and we had very strong customer acquisition. This quarter which continues a really positive trend towards, again, increasing participation in the digital economy and Payoneer being an on ramp.

We're continuing to see lots and lots of momentum.

Across really all of the major areas of our business and we have very strong customer acquisition.

This quarter, which continues a really positive trend towards again, increasing participation in the digital economy and pioneer being an on ramp.

So looking across all of that, B2B APAR is a lever now with paying your checkout, while it's still very early days. That becomes a lever. If we see continued softness within e-commerce, we actually have tools with things like our commercial card that our teams are actually upselling to our existing customers, which actually drives increasing value for them and for us.

So looking across all of that <unk> is a lever now with paying your checkout, while it's still very early days.

That becomes a lever if we if we see continued.

Softness within ecommerce, we actually have tools with things like our commercial card that our teams are actually up selling to our existing customers, which actually drive increasing value for them and for us out of the theme flows so even if they actually end up.

out of the scene close, so even if they actually end up

being stagnant, we can actually save them some money and actually increase our growth.

Being stagnant, we can actually save them, some money and actually increase our growth.

Uh, by actually selling in services like that. So we have a lot of tools in our toolbox.

I actually selling and services like that so we have a lot of tools in our toolbox.

And in general, we're executing well on many, it's not most of those.

And in general we are executing well on many if not most.

Most of those.

And, you know, we're looking forward to kind of a return to a more normal macro environment where we can actually get some tailwinds.

And we're looking forward to.

Kind of a return to a more normal macro environment, where we can actually get some tailwind.

from some of these parts of the world that are some of these vertical markets that right now are not actually driving the same kind of growth they were in the past. So we have a lot of tools in our toolbox, lots of vectors of growth, and we're executing quite well across

Some of these parts of the world that are some of these vertical markets that right now.

Or are not actually driving the same kind of growth. They were in the past. So so we have a lot of tools in our toolbox lots of vectors of growth.

And we are executing quite well across the board.

That's very helpful. Thank you, Scott. And congratulations on the crash again.

That's very helpful. Thank you Scott and congratulations again.

Yes, Thank you Josh.

Thank you. The next question to come to me and Pandan would be them.

Thank you. The next question comes from Nathan <unk> with Needham. Please proceed.

Hey, good evening. It's actually a copy or something for Mike. Appreciate you guys taking the questions. Great to see the results here. Just kind of want to think it seems like a lot of the revision of the guidance is better revenue than expected in Russia, Ukraine, Belarus. Are there any other complications? Like is the guide a little more conservative on e-commerce volumes?

Hey, good evening sexually Kyle Peterson on for Mike I. Appreciate you guys taking the questions.

Great to see the results here.

Just kind of wanted to think it seems like a lot of the revision of the guidance is.

Better revenue than expected in income, Russia, Ukraine Belarus.

Okay.

Are there any other kind of puts and takes like is the guide a little more conservative on <unk>.

E Commerce volumes.

And that's being partially offset by stronger take rates and adoption new products or what are the moving pieces kind of outside of the big Eastern Europe coming in better?

And that's being partially offset by stronger take rate and adoption of new products or what are the moving pieces kind of outside of the.

Thank you Sir in Europe .

Kind of a matter.

Sure I'll take it it's Mike speaking.

So I think the answer is yes, we decided that we didn't want to be a little bit more conservative given some of the headwinds related to e-commerce.

So I think the answer is yes, we decided that we didn't want to be a little bit more conservative.

Some of the headwinds related to e-commerce.

So, we did take a more constructive view.

So we did take a more conservative view going forward.

going forward. And again, there are puts and tapes. So at the same time, you know, travel form extremely well against small piece will benefit from interest income as well. So, you know, there's a number of different

And again, there are puts and takes the same time.

Travel performed extremely well against a small piece.

We will benefit from interest income as.

As well so.

There's a number of different.

Drivers, as I mentioned, and again, there tends to be a balancing, and one thing might look a little bit weaker. We took a conservative view on it. Something else continues to grow at a stronger pace than initially thought. Our customer acquisition abilities to focus on certain markets, so Scott mentioned a few of those.

Drivers as I mentioned and again, there tends to be a balancing is.

One thing might look a little bit weaker we take a conservative view on it something else.

Needs to grow at a stronger pace than initially thought.

Our customer acquisition.

Abilities to.

Focus on certain markets.

<unk> mentioned a few of those.

where we're doing really well in high growth markets.

Where we're we're.

We're doing really well.

High growth markets.

And, you know, that includes Latin America and Southeast Asia, Middle East.

And that's.

That includes Latin America, and Southeast Asia Middle East.

where we're continuing to make adjustments with people on the ground.

We're continuing to make investments for people on the ground.

And we're excited about those opportunities in those markets. So, you know, in that overall, we're happy to raise guidance and, you know, across the board, both in terms of revenues as well as margins, which will drive more profitability. But we're seeing more option value in the future based on these investments.

And we're excited about those opportunities.

In those markets.

Net net overall, we're happy to raise guidance.

Across the board.

Terms of revenues as well as margins.

Which will drive more profitability.

We're seeing more options option value in the future based on these investments.

because we're excited about the regions that we're in. We're excited about products that we're offering.

We're excited about.

The regions that we're in we're excited about products that we're offering.

and we're super excited about the value of the opinion brand globally and what that means to our customers and our ability to leverage that brand in the future.

We're super excited about that.

The value of the <unk> brand globally and.

And what that means to our customers and our ability to leverage that brand in the future.

So, all in all, we look at Q1 as a great validation of the business model. We have built in, you know, caution for the rest of the year with a hope that things are better than that, but we feel comfortable raising the guidance to the levels that we've raised.

So all in all we're.

We looked at Q1 is a great validation of the business model, we have built in.

Caution for the rest of the year with a coke.

The things are better than that.

But we feel comfortable.

Raising the guidance to the levels that we bring to them.

got it. That's helpful. And then I guess just a quick follow-up. Looking at the revenue in the U.S. part of the business, it's been growing and scaling really nicely. What's driving some of that strength right now? Is a lot of it just travel coming back, or what are some of the moving pieces that are driving the U.S. upside right now?

Got it.

Helpful and then.

I guess, just a quick follow up.

Looking at the revenue in the U S part of the business.

In growing and scaling really nicely.

What's driving some of that strength right now is a lot of it just travel coming back or kind of what are some of.

The moving pieces that are driving the U S upside right now.

Yeah, there's a number of different factors, you know, travel being one of them. We also have some non-volume services that we've added for enterprises as well, and in overall, continue to make a push globally across many markets. But the work that we're doing with large marketplaces has been continuing to grow as it has on the SMD side as well. you

Yes.

There's a number of different factors.

Yes travel being one of them.

We also have some down volume services.

We've added for enterprises as well.

And overall continued to make a push globally across many markets.

The work that we're doing with large large marketplaces has been continuing to grow as it has on the F&B side as well.

Got it that's helpful nice quarter guys.

Thank you.

Thank you.

Thank you. The next question comes from Mike Orondale with North Land Security.

Thank you. The next question comes from Mike Grondahl with Northland Securities. Please proceed.

Yes.

Hi guys, this is actually Owen Allen from mic. I saw a couple quick ones. In terms of the new pay and year checkout offering, could you describe some of our color in terms of the timeline of launch into additional regions? And then are there any comments on performance on the initial launch in Asia?

Hi, guys. This is actually <unk> on for Mike.

Couple of quick ones in terms of the Naver pay and near checkout offering could.

Could you provide some more color in terms of the timeline of launch into additional regions and then are there any comments about athletic departments on the initial launch in Asia.

Yeah.

Yeah, Hi.

So.

As of now, we are continuing to focus on Asia and that will remain our core focus for the rest of 2022.

As of now we are continuing to focus on Asia and that will remain our core focus for the rest of 2022.

We are laying the groundwork for expanding into other regions and consistent with our approach to

We will we are laying the groundwork for expanding into other regions and consistent with our approach to cover the entire world.

cover the entire world. That will be our focus over the next couple of years as we continue to broaden and expand that offering.

That will be.

Our focus over the next couple of years as we continue to broaden and expand that offering.

We're still really early days. I mean, this is a huge market opportunity. It's something we're very excited about. The performance so far is actually really good, and we have a lot of

Bill really early days and then this is a huge market opportunity, but something we're very excited about.

Performance, so far is actually really good.

And we have a lot of momentum.

momentum building our pipeline and actually both of customers as well as partners.

Momentum building, our pipeline and actually both the customers as well as partners.

And so there will be more to come as we work our way through the year. But in the grand scheme of our overall financial.

And so there will be more to come.

Work, our way through the year, but in the Grand scheme of our overall financial results.

Results, the impact in Q1 is really immaterial, and so it'll take a little bit of time for that to end.

The impact in Q1 is really immaterial.

So it'll take a little bit of time for that to.

really start to contribute. But it's something that we believe will be a material contributor as we actually look into future years. So

Really start to contribute but it's something that we believe will be a material contributor as we actually look into future years. So.

It's again big opportunity. It really plays to our strengths and simplifying global commerce.

Again big opportunity it really plays to our strengths and simplifying global Commerce and.

And in particular for SMDs and in particular SMDs coming from developing markets where we really bring a unique combination of both technology and as well as the service and support to help connect them to the growth opportunities around the world that they can pursue. So it's a great fit and we're getting really positive feedback, but in the grand scheme of things, it's still very, very small. And so but something we're excited to talk more about and expecting to talk more about as we go through the rest of it.

And in particular for Smbs and in particular SMB is coming from developing markets, where we really bring a unique combination of both technology and well as well as the service and support to help connect them to the growth opportunities around the world that they can pursue so it's a great fit and we're getting really positive feedback.

In the Grand scheme of things, it's still very very small.

And so but.

Something we're excited to talk more about and.

Expecting to talk more about as we go through the rest of the year.

Great. Thanks guys and congratulations on the quarter.

Great Thanks, guys and congratulations on the quarter.

Thanks, Adam.

Thank you. The next question comes from Andrew Hummel with West Park Capital. Please proceed.

Thank you. The next question comes from Andrew Hummel with West Park Capital. Please proceed.

Hey, guys. Thanks for taking my question I just wanted to follow up.

I just wanted to follow up on the guide for the year, and I know last quarter when you excluded the Russia-Ukraine impact, you kind of talked about 22 to 24%.

On the guide for the year.

I know last quarter.

When you exclude the Russia Ukraine.

In fact, as you kind of talked about 2020.

24%.

kind of growth, including those tidal ends, and I understand there's a number of, I guess, puts and takes that would become maybe a touch lighter and some of the other pieces that might be a little better, but can you talk to that 22 to 24% range and include that still kind of what you're seeing, is there, you know, uptime for that, you know, for that for the year?

Growth.

Excluding those headwinds.

I understand there are a number of.

Puts and takes that would become.

Later.

Sure.

But can you can you talk to that.

4% range.

Is that still kind of what youre screening.

The upside to that.

For the year.

So I would say we are on track and there are puts and takes.

I would say we're on track and there are puts and takes and so.

As I mentioned before, you know, we might be building in a little bit more conservatism.

And as I mentioned before.

We might be building in a little bit more conservatism.

e-commerce but have some other parts of business that are accelerating.

Commerce, but at some some other parts of our business that are accelerating.

at the same time. And so, next, I would say we're on target and get to the question about upside. You know, as I mentioned in my comments, yes, I think there are opportunities for upside depending on those execution as well as, you know, broader markets.

At the same time.

No.

Net net I would say we are on target.

Question of that upside.

As I mentioned in my in my comments, Yes, I think there are opportunities.

For upside depending on so I would say <unk> as well as broader market.

So, whether or not, you know, we see better than 50% in Ukraine, whether or not e-commerce is formed better than what we're assuming based on current trending and some of the more macro related issues.

Issue, so whether or not we see better than 50% in Ukraine, whether or not he can.

Yes.

Better than what we are.

Assuming based on current trending in someone's more macro related issues.

and our, you know, the ability to, you know, cross-sell and get the message out and our ability to, you know, execute on our investment strategies, are we at a market strategy on sales fires and putting those people into the markets to drive incremental sales, as we've seen has worked well so far. We, you know, expect to continue to work well.

And our continued ability to.

Cross sell and get the message out.

Our ability to.

Execute on our investment strategy, our go to market strategy on sales hires.

Those people into the market to drive incremental.

Incremental sales, which you've seen us has worked well so far.

We will continue to work well.

So, yeah, I think that, obviously, we're all in the world where there are a number of risks, but we think we're trying to mitigate those and create as many different revenue streams as possible so that we create a natural diversification of our business. I think that the results have demonstrated that, you know, we're all in the world.

So I think that obviously, we're all in the world where there are a number of risks, but we think we worked hard to try to mitigate those and create as many different.

Revenue streams as possible so that we create a natural diversification of our business.

I think that the results and demonstrated.

We have been very successful from managing that, whether it be trying and successfully reducing concentrations to expanding into new businesses.

We have been very successful from managing that whether it be the frame and successfully reducing concentration to expanding into new businesses.

We're having a larger share of customer wallet. All of these have been successful and I think, you know,

We're having a larger share of customer wallet. All these have been.

Festival in.

Uh huh.

you know, provide opportunities that we could execute well to, you know, meet and exceed.

Provide.

Opportunities, which did execute well too.

Beat and exceed.

OK, great, thanks for that. And then just one follow-up on the FX style. Just curious if you guys see any FX pressure within your revenue or within some other player across the broader landscape within the national exposure. I've talked about that back in the US dollar strength. And I just wanted to see how that fit for you guys

Okay, great. Thanks for that.

One follow up.

On the FX filings.

Curious if you guys.

See any FX pressure within your revenue or engineering.

A mother.

Players across the broader landscape with internationally.

So U S dollar strengthened.

Just wanted to see how that fit.

You got it and what Youre seeing on that front.

And I could talk on the cost side, I would say that we've been the beneficiary of movements between where we have the majority of our employees and the peering of the dollar, which has helped a bit, we'll see where we show for the rest of the year. But we have been the beneficiaries today from a cost perspective point of view.

And Matt can talk on the on the cost side I would say that.

<unk> been the beneficiary of movements between where we happen to majority of our employees.

And the pairing of the dollar which.

It has helped a bit.

We'll see where we so for the rest of the year, but we have been a beneficiary to date from a cost perspective, some quite salaries.

Yeah, and in terms of the top line, there is a really, you know, we don't have the same kind of impact that a number of other businesses would have in terms of where they have rather than recognition. And you put that.

Yeah and in terms of the top line.

Really.

We don't have the same kind of impact that a number of other businesses would have in terms of the way.

They have revenue recognition.

Thank you.

This has an impact.

Yes.

Okay, great. Thanks appreciate it.

Thank you.

Thank you. We have a follow-up question from Bob Napoli.

Thank you we have a follow up question from Bob Napoli. Please proceed.

Thank you. Just on geographic, and you guys have called out Latin America and growth in high growth regions a number of times, can you maybe give a little more color on those regions, the size of those regions, and what you think can be delivered in some of these higher growth regions like Latin America over the next couple of years?

Thank you just add geographic and you guys have called out Latin America and growth in high growth regions.

Number of times can you maybe give a little more color on that.

Those regions the size of those regions.

What do you think can be delivered.

Some of these higher growth regions like Latin America over the next couple of years.

Yeah, sure. So, you know, some of the regions that we are particularly excited about, and again, there are a number of them broadly, is pretty extraordinary, just the leapfrogging that's happening there, and the kind of dramatic digitalization of commercial

Yeah sure. So some of the regions that we are particularly excited about and again there are a number of them.

Broadly.

Is pretty extraordinary.

Leapfrogging, that's happening there and the kind of dramatic digitalization of.

Correct.

So, these are parts of the world that are large populations that have lots of commercial activity that are rapidly digitalizing, and they are kind of leapfrogging into more modern tools and more modern providers are growing quickly, but we're seeing a lot more of that

Okay.

So these are parts of the world that are large populations that have lots of commercial activity.

That are rapidly digitalization.

And they are kind of leapfrogging into more modern tool.

Tools and more modern providers are growing quickly.

still really, really small. So we are really a very large, highly

Still really really small.

Really.

These very large highly.

Populated regions that actually.

government encouragement towards exports, in particular small businesses.

Government encouragement towards exports.

In particular small businesses.

Lots of kind of technology, learning and innovation that's coming from these areas.

Lots of kind of technology.

Learning and innovation, that's coming from these areas.

And so if you look at kind of just generally the digitalization of commerce in those parts of the world Those are the parts of the world that are actually growing faster and we're seeing the same thing But just on the kind of exporter and supply side of that. So we're still really small for us

And so if you look at kind of just generally the visualization of commerce in those parts of the world and those are the parts of the world that are actually growing faster and we're seeing the same thing, but just on the kind of ex quarter and supply side of that so we're still really small for us.

in the grand scheme of things and the growth rates we think are sustainable for quite some time. And we're making investments to actually drive the market and we see it across a range of verticals and a range of services. So B2B APAR in some of these parts of the world is actually a lead for us.

In the Grand scheme of things and the growth rates, we think are sustainable for quite some time.

And we're making investments to actually drive the market and we see it across a range of verticals and a range of services or BTB APR in some of these parts of the world is actually a lead for us.

not kind of an add-on or a new entry point, we see a lot of service providers and digital agencies and things like that that are in these parts of the world.

Not kind of.

Add on or a new a new entry point.

We see a lot of service providers.

And digital agencies and things like that that are in these parts of the world.

as well. So again, quite a bit of diversity in terms of the vertical markets and in terms of the services that are being used. And so we're really excited. Again, we think we have as Michael touched on a few.

So as well so again quite a bit of diversity in terms of the vertical markets in terms of the services that are being used.

And so we're really excited again, we think we.

As Michael touched on it.

Ketan's a great brand and we put terrific teams in these markets with great leaders and we've got a long runway ahead with sales opportunities, product opportunities.

Two times of great brands and recruit terrific teams in these markets with great leaders.

And we've got a long runway ahead.

With.

On our sales opportunities product opportunities.

partnership opportunities. So we're really kind of laying the groundwork and putting the investments into the infrastructure to support this as a multi-year effort to penetrate what we think is a much larger opportunity.

Partnership opportunities. So, we're really kind of laying the groundwork and putting the investments into the infrastructure to support that.

Multi year.

To penetrate what we think is a much larger opportunity.

Thank you. And just quickly, with your strong balance sheet, is there, are you more focused on M&A today? We are continuing to explore M&A opportunities and it's something that we are a part of our

Thank you and just quickly just.

Our strong balance sheet and I mean is there are you more focused on M&A.

<unk> to explore M&A opportunities and it's something that we are.

A part of our.

Strategy to expand.

and brought in the platform and the services that we're able to offer to small and medium-sized businesses around the world.

And broaden the platform and the services that we're able to offer to small and medium sized businesses around the world.

Hi.

And our team is really focusing on some areas. And we're really looking forward to adding to that.

These.

And our team is really focusing on on some areas and where we were.

Two two.

And to add.

and more capabilities to our platform and supplement our organic investments with acquisition.

And more capabilities to our platform and supplement our organic investments with acquisition.

Okay.

Thank you.

Thanks, Bob.

Thank you.

session. I would like to turn the conference back over to Scott Gallant.

Session I would like to turn the conference back over to Scott.

Paul.

Great. Thank you, everybody, for for the

Great. Thank you everybody for.

Okay.

the support and the great questions. We're really, again, thrilled with our quarter and the pioneer team globally. It's really executed well in the face of.

For the support and the great questions, we're really again thrilled with our quarter and the pioneer team globally has really executed well in the face of <unk>.

Obviously some really challenging market conditions and so we're really thrilled with their work and really happy to be able to support our customers and employees in Ukraine and really looking forward to better and brighter days ahead. So thank you for the questions for the support and we'll look forward to talking again soon. So thanks.

Obviously, some really.

Challenging market conditions and so.

We're really thrilled with.

Their work in.

Really happy to be able to support our customers employees and Ukraine.

Looking forward to better and brighter days ahead. So thank.

Thank you for that.

Question for the storage and.

We will refer to talking against them. So thanks.

That concludes today's Pioneer's first quarter 2022 Earnings Conference call. Thank you for your participation. You may now disconnect your lights.

That concludes today's <unk> first quarter 2020 earnings conference call. Thank you for your participation you may now disconnect your lines.

I.

Okay.

[music].

Okay.

Yeah.