John Caplan : Sure. I’ll start and then Bea and I will sort of answer this one together. I think the first thing is we have ample capital, and we’re generating capital. So the business is a healthy one. We have lots of opportunities in front of us in M&A pursuing tack-ons to drive our cross-sell and upsell of AP products and tools and services for over 2 million active customers and 0.5 million ICP customers. So we see real opportunity for tuck-in M&A to extend our financial stack as one area. And as the Board approved the $250 million stock buyback program, we’ve executed $51 million of that in Q1 and that will continue at pace but Bea, I’ll pass it to you if you want to add.
Bea Ordonez: Yes, you covered it and Mark in your question you noted a balanced approach. So we’re going to deploy that balanced approach. We obviously, accelerated our buyback activity coming out of last year, as we saw opportunities from a relative price perspective we bought back in the first quarter as John noted $51 million. We would expect to more than offset the dilution this year from our stock based plan and other share events occurring in the year. So what we expect roughly, if I were to ballpark it to be buying back roughly double what we would have bought back last year. But we’ll be opportunistic in the market as we see that opportunity. As John noted, look our business benefits from a really strong free cash flow generating engine. We expect that to continue throughout the year. We’ll be opportunistic and disciplined in terms of how we look at M&A opportunities and expand our financial stack and we’ll be able to return cash to shareholders as well.
Operator: Thank you, Mark. Our next question comes from the line of Cris Kennedy with William Blair. Your line is now open.
Cris Kennedy: Good morning. Thank you for taking the question. Can you talk about some of the pricing initiatives and where you are in that journey? Thank you.
Bea Ordonez: Thanks for the question Cris. Sure I’ll take that. Look as we noted in 2023, we really spent 2023 executing on what I would call low-hanging fruit in our business, largely to improved monetization around non-ICPs by introducing certain account fees that we waived at minimum thresholds and certain minimum transactional fees. But we also much more strategically began to define a more segment based pricing strategy. And we’ve been making active investments and are making investments this year in our products and out of our product team in a sophisticated pricing engine and data and testing capabilities that really allow us to deploy that much more I’ll call it customer persona based pricing strategy. So at the end of 2023 we launched Phase 1 of that segment based pricing strategy.
We called it our Lite account, which is targeted to freelancers and gig workers that received from marketplaces and broadly use only withdraw the bank capabilities and we were able to much more effectively monetize, given the competitive environment, monetize that flow. In 2024, we’re continuing to roll out that segment based model in the back half of the year. We’ve talked about and we are launching very shortly significant testing of fees on Internet workflows. So that flows between Payoneer account holders on our platform many billions of flow. So we are launching a significant pilot to test those. We’ve spent the last several months understanding the use cases and really developing a nuanced and used case based approach to how we should monetize that flow.
And look to frame, we’ve talked in terms of the strategy to train with more specific numbers. In 2023, we generated roughly $25 million of incremental revenue from those various pricing initiatives that we’ve discussed, what we’ve called that low-hanging fruit. In 2024, we expect to generate an incremental $20 million also in uplift from additional changes from corridor and segment-specific pricing from much more sophisticated FX monetization and product offerings. And from those into network feeds. So again we’ve highlighted that this is a multiyear strategy that there’s real ROI here and we’re investing to capture that. And that we’re really looking at that customer persona based sort of offering strategy, of which pricing and monetization is such a key part.
Cris Kennedy: Great. Very clear. Thank you very much.
Operator: Thank you, Cris. Our next question comes from the line of Trevor Williams with Jefferies. Your line is now open.
Unidentified Analyst: Hi. This is Spencer James on for Trevor Williams. Good morning and thank you for taking the question.
John Caplan: Good morning.
Unidentified Analyst: I was wondering, if you could maybe share some updated thoughts on expectations for B2B volume growth for the remainder of 2024? I know you’ve previously shared around 25% that’s looking more conservative given the strong performance in 1Q. I was wondering, if you could comment on anything to be mindful of in the back half.
John Caplan: Happy to take it. It’s a super exciting part of our business and we’re thrilled with the progress we’re making the product market fit. We have the response from our customers and the network dynamics that are in the B2B business. We’ve had three consecutive quarters of accelerating volume growth in B2B. Yes, third quarter of 2023 was up 1%. Fourth quarter of 2023 was up 13%. And as we just noted first quarter of 2024 up 33% positive across all of our global regions including in China. The accelerating momentum that we see reflects the result of hard work on behalf of our entire organization cross-functionally. We improved our acquisition of ICP customers, expanded into new verticals, accelerated the onboarding time of B2B customers and have had a series of continuous improvements in the customer experience.
