Nuvei Corporation
3Q23 revenue in line, adj. EBITDA beats; FY23 guidance increased
NASDAQ: NVEI | USD 15.75 | Outperform | Price Target USD 29.00
Sentiment: Neutral
Our view. 3Q23 results showed results generally in line with RBCe, with revenue below our estimates by ~$2M, but adj. EBITDA above by ~$5M, which resulted in a slight increase in FY23 guidance. We note that Global commerce revenue increased 25% y/y on a pro forma basis, accelerating 890bps sequentially, and represented 56% of total revenue in the quarter.
Quick takeaways. NVEI reported $305M/$111M in revenue/adj. EBITDA compared to RBCe of $307M/$106M and the Street at $303M/$107M on total volume of $48.2B, +72% y/y, vs. RBCe of $48.6B, the Street at $48.5B and 68% y/y growth last quarter. Organic revenue growth at constant currency increased 13% to $223.3M
FY23 guidance increased; 4Q23 revenue and adj. EBITDA in line with expectations. FY23 guidance calls for volume of $198B– $200B, revenue of $1.175B–$1.195B and adj. EBITDA of $427M–$435M, compared to prior guidance of $193B–$197B, $1.17B– $1.195B and $417M–$432M, respectively. 4Q23 guidance is for revenue of $307M–$327M and adj. EBITDA of $111M–$119M, compared to prior RBCe of $314M/$111M and the Street at $315M/$111M, on volume of $57B–$59B, versus prior RBCe of $53.6B and the Street at $53.7B.
Conference call at 8:00 am ET tomorrow.