- Nuvei Corp. (TSXV:NVEI) surged to its eight-month high this week
- The payment services provider led gains on the TSX on Thursday with its 8.1 per cent surge after Credit Suisse upgraded the stock from “neutral” to “outperform”, along with National Bank.
- This stock has climbed nearly 25 per cent this week, 45 per cent over the last three months, and is up 57 per cent year-to-date
- For the year ended December 31, 2022, revenue increased 16 per cent to $843.3 million from $724.5 million
Nuvei Corp. (TSXV:NVEI) surged to its eight-month high this week.
The payment services provider led gains on the TSX on Thursday with its 8.1 per cent surge after Credit Suisse upgraded the stock from “neutral” to “outperform,” along with National Bank.
This stock has climbed nearly 25 per cent this week, 45 per cent over the last three months, and is up 57 per cent year-to-date.
The tech sector, which houses the stock, gained 2.1 per cent on Thursday.
This comes as the company reported a drop in profit for Q4 2022 but revenue that beat analyst expectations. Q4 revenue increased 17 per cent to $89.4 million in North America, decreased by 9 per cent to $115.9 million in Europe, the Middle East and Africa, increased 90 per cent to $12.2 million in Latin America and increased 107 per cent to $2.9 million in Asia Pacific.
Highlights for the three months ended December 31, 2022:
- Total volume increased 28 per cent to $40.3 billion from $31.5 billion
- eCommerce represented 91 per cent of total volume
- Revenue increased 4 per cent to $220.3 million from $211.9 million
- Revenue was impacted unfavourably by changes in foreign currency exchange rates year-over-year and volatility from digital assets and cryptocurrencies
- Net income decreased by 24 per cent to $9.4 million from $12.3 million
- Adjusted EBITDA decreased by 6 per cent to $85.7 million from $91.5 million
Financial highlights for the year ended December 31, 2022:
- Total volume increased 34 per cent to $127.7 billion from $95.6 billion
- eCommerce represented 89 per cent of total volume
- Total volume growth at constant currency was 39 per cent, with Total volume at constant currency increasing to $132.7 billion from $95.6 billion
- Revenue increased 16 per cent to $843.3 million from $724.5 million
- Revenue was impacted unfavourably by changes in foreign currency exchange rates year-over-year by $40.5 million
- Revenue growth at constant currency was 22 per cent, with revenue at constant currency increasing to $883.9 million from $724.5 million
- Net income decreased by 42 per cent to $62.0 million from net income of $107.0 million, primarily due to an $85.9 million increase in share-based payments
- Adjusted EBITDA increased by 11 per cent to $351.3 million from $317.2 million
Nuvei Chair and CEO Philip Payer said 2022 was another strong year for the firm, highlighted by total volume growth of 39 per cent on a constant currency basis.
“We’ve worked diligently to further scale our platform organically and inorganically, diversify the business across high-growth discretionary and non-discretionary verticals, increase our use cases, target more end markets, and increase our distribution, all of which combined substantially expands our TAM to now include global e-commerce, integrated payments and B2B.”
The company expects organic revenue growth excluding digital assets and cryptocurrencies at constant currency, to be between 23 per cent and 28 per cent for the fiscal year ending December 31, 2023.
Nuvei’s payments platform enables businesses to optimize operating costs and boost conversion rates by maximizing payment acceptance, minimizing risk, and enhancing the consumer payment experience.
Nuvei (NVEI) is a Canadian fintech company whose technology allows companies to accept next-gen payments, offer all payout options and benefit from card issuing, banking, risk, and fraud management services. Nuvei connects businesses to their customers in more than 200 markets, with local acquiring in more than 45 markets, 150 currencies, and more than 600 alternative payment methods.