- Nuvei (NVEI) is bracing for continued growth over the rest of this year and into 2021 following the release of its strong third-quarter results
- The company posted a 62 per cent jump in the volume of transactions, from US$7.1 billion (C$9.27 billion) in the same period last year to US$11.5 billion (C$15.02 billion) this year
- This resulted in a 32 per cent climb in revenue, from US$70.8 million (C$92.47 million) to US$93.6 million (C$122.25 million)
- However, net loss increased from US$65.7 million (C$85.81 million) to US$77.9 million (C$101.74 million) due largely to costs associated with its recent IPO
- Nuvei is currently up 4.64 per cent to C$53.19 per share
Nuvei (NVEI) is bracing for continued growth well into 2021, following the release of its strong third-quarter results.
For the three months ending September 30, 2020, the payment technology provider posted a 62 per cent jump in transaction volumes – the total dollar value of transactions processed – from US$7.1 billion (C$9.27 billion) in the same period of 2019 to US$11.5 billion (C$15.02 billion) this year.
Likewise, Nuvei reported a 32 per cent climb in revenue to US$93.6 million (C$122.25 million) from US$70.8 million (C$92.47 million) last year, driven in part by contributions associated with the acquisition of SafeCharge that occurred in August 2019.
However, net loss for the period increased from US$65.7 million (C$85.81 million) to US$77.9 million (C$101.74 million), which the company said reflects a non-cash finance cost of US$83.4 million (C$108.93 million) associated with its initial public offering on September 22.
The IPO made history as the largest tech-based listing to occur on the Toronto Stock Exchange, netting the company a total of US$758 million (roughly C$990 million), some of which was used for the repayment of debt.
More recently, Nuvei has placed a greater focus on its global growth strategy with the execution of several key acquisitions – deals that are likely to have a greater impact on the company’s performance over the course of the coming quarter.
“We earned regulatory approval in the states of Indiana and Colorado for sports betting, and launched local acquiring in Hong Kong, Singapore, Russia, Brazil, and Columbia, meaningfully expanding our total addressable market,” said Philip Fayer, Chairman and CEO of Nuvei.
“Lastly, we were thrilled last week to announce the closing of the Smart2Pay acquisition, which not only strengthens our global presence in high-growth markets including digital gaming, but allows us to offer a more complete, robust alternative payment solution,” he added.
Now well into the fourth quarter of 2020, Nuvei says its transaction volumes are continuing to grow, with year-over-year growth more or less in line with that seen in the third quarter.
Nuvei is currently up 4.64 per cent to C$53.19 per share at 9:59am EST.