Nuvei (NVEI) 10 May 222022 Q1 Earnings call transcript

Good morning, ladies and gentlemen, and thank you for standing by, welcome to Nuvei Corporation's First Quarter 2022 Earnings Call.

As a reminder, this conference call is being recorded. I'll now turn the conference over to Anthony Gerstein Vice President and Head of Investor Relations for Nuvei. Please go ahead, sir.

Thank you, operator and good morning everyone, and thank you for joining us. Philip and are Schwartz, and today CFO. me Fayer, CEO, Chair David With

section this being issued of call and a prohibited. without conference As reminder, Nuvei of is whole in property is an Nuvei. ended of the written The release XXXX. press consent financial in morning for is of results XX, Nuvei.com recorded in website Any release company's available information rebroadcast the well the March accompanying Nuvei this as under announcing This or part a Investor Presentations. is Relations three month period and presentation copyrighted as Events webcast and

developments unknown During from cause business of this securities could statements or or laws. the such and anticipated the differ results, implied certain forward-looking Information we filings and other differ on performance industry results materially anticipated actual make could materially forward-looking performance results, the the uncertainties Securities statements. website. can these to from that factors by Canadian statements risks, within in Authority results Regulatory forward-looking actual performance, achievements and may applicable factors with Nuvei's developments found cause may company's and or the of that achievements expressed Such Nuvei's meaning known in call be or the involve about

measures a measures. and non-IFRS be adjusted Our understanding or not our is and discussion believes today not useful in to considered income are isolation Reconciliation to substitute supplement per MD&A. net EBITDA, available income, our and measures will IFRS including as share release cash to of net on for measures, performance, are enhance they include IFRS Management earnings financial results a of these but from should non-IFRS in adjusted ongoing free flow. adjusted our order

up like to I call the prepared will With now after We our to over Phil. questions to would remarks. your the turn open that call

to March, we once of person. It's again joining following you to Capital in many progress opportunity Thanks with you the our inaugural be everyone our where thank call our had for in back Anthony, sharing good you today. meet and Day Markets

to in start ahead outlook, successful our are XXXX execution growth We delivering of strong strategies. of our the by off results driven financial a

total excludes rates to $XX.X $XX.X billion and the million revenue approximately For adjusted include acquisitions trailing results in of It's to period headwind a increased to increased increased Organic changes is completed XX-month to from volume XX%. these $XXX.X quarter from $X Increased XX% important the year-over-year. revenue revenue revenue foreign XX% exchange EBITDA which growth, and XX% unfavorable million. million note in excellent

under growing in getting our pace growth. a focused verticals global As in our so well are in company, as and are and as for North whites significant we large TAMs opportunities each and LATAM America, of with has geographies, just our started, current geographies APAC much penetrated future

APAC, North We the is and than e-commerce quarter-over-quarter by channels and LATAM X% worth revenue APAC America. in America, at increased America, XX% EMEA, you America. growth EMEA, X% largest North mind experienced in and is global channel while scale sequential in LATAM your our XXX% remains that of more and some in It perspective, it XX% XX%. by the revenue XX%, first the of quarter, North respectively. a respectively. region North APAC X% and APAC growth and Looking From represented XX%, XX%, EMEA, LATAM

As underway. well America transformation in you there is and North we a are investments know, making

and year's first XX% perspective, quarter quarter from direct For now increased year's the North million a revenue e-commerce $XX third this of approximately represents American last in revenue. total America first North to

and for customer North growth wins with to which we in sustainable upcoming prospects and Overall, see positioned opportunity recent enormous are highlight America growth. business in As well our quarters. in the strong remains profitable will the I we will expansions, a for and minute, converging contribute our

to increasing with share new and customer new for wins notable number was of achieved first the existing gains quarter customers. wallet the customers, Turning

boarding As growth you and them customers scale our recall, on in-year future new as doors the as to globally. contributes open we businesses going growing with gives us our relationships growth existing further customers of majority those of pipeline drives for their the visibility forward opportunities over robust the while year. time grow to help our Meanwhile, good

North at America we're to Hard Rock signing customers high FanDuel Diamond. executing including market plan continues and our strategy a gaming focused verticals, and in evolve, new as NorthStar The growth Desert Looking flagship on with gaming, the this, Score, for

added market also in North of newest America. the Ontario, the open to We province

Entain, We capabilities further are Wplay. with like support BetMGM, geographic gaming also expanding Kaizen DraftKings, LeoVegas, Gaming, XXX, and adding and wallet Betsson, existing customers share,

with XX travel wholesale in Dunn, leading international including vast see in the RFP create number travel Despegar, integrated the is a online won can essentially really operators company in in tour Colombia and operators leading In who state Luxury really quarter, which state, capabilities. Nuvei the first Didatravel, out supporting which largest LatAm opportunity in the Scott EMEA, each had new we North local to to state globally. our to an using who's operators meaningful solution with travel industry industry we now operations online them grow. of LatAm, product payments has you an Selina, and travel, As and country and customers, and with the quarter, first of as product in globally gaming America is of wholesaler that America ample as Nuvei, and in supporting additional well remember It's the progress countries all started made solution company an helping country Asia. customers hotel to important and North to implementation more in a product than go

lastminute.com globally. leisure Travel Al, with including UATP BFC we from travel partnership El to the of Aircash, our Chile, we services wallet and and company. goods customers, services, expanded the in our Fintech Israel, money We started leading digital existing first also retail paying by a a In National Croatian and Israeli support ride contract in online expanded America digital Plan, payment company support Universal also digital hailing expanded intelligence Carrier and Nuvei for North added Cabify offering to Air Cellbrite, with transfers, a LATAM, processing, which which enabling and global using

WIX, launched digital We had as with fast customer we Group. also Colombia. Ledger, more marketplace collection growing and the increase to new payment crypto and had an vast crypto.com with Net-a-Porte, providing delivery and Pionex distributor largest through leader the time, and financial banks marketplace Wargaming wallet LATAM Colombia, of NFT and [indiscernible] powered a X,XXX announcing our in in on-demand more options offering as we course currencies expanded for agreements online share Process which The rails. retail of region. gaming, with SHEIN a the And, solution the wallet we and video to Services, Rappi, and we expanded ramps partnered our leading Yoox, allowing In supports in currency accelerated Ledger assets crypto wallet Nuvei of video Davivienda digital including hardware [indiscernible]. of platform by a customer customers Nuvei customers, payments And in than and at supported an retailer same Eneba Canadian with Hut new relationships global wins enable Valentino, one VALVe. games online purchase In online we've in game existing to funding had leading social share video In the exchange direct their exchanges on users provider several including with well marketplaces also several with We've fiat Hatley.

agreement orchestration one signed In of payment Mexico. addition, we processors also in the largest with a

As momentum in accelerating. you can client see focused wins is across the verticals new all

prudently the verticals We're I things company's into to spend our geographies. marketing dynamic and marking the history, launched largest There brand corporate call, of for highlighted our in are As you flavor. impact is planned the leveraging rebrand, our designed a we across track refresh. global all those on to to to many the generation come. who The and encourage we by environment, last to discussed campaign, the strengthen new awareness make some our and brand our on of we lead get by deferred seen channels haven't website QX earnings and an campaign Because distinctive recently a QX. now support visit macro exciting company's

leading to You I year. will the outlets about excited see you over on to start really coming of forward results we've look with I'm scale, some first is the media and a the this of weeks, program. campaign sharing the undertaken the This of marketing campaign bigger throughout time overall the advertising elements the

innovation turning Now to product highlights.

stack. drive a order company more in continuously invest As we scalable modern feature in and product solution to functionality with our technology

our to real fund with deposits so. with time United recently the the customers. capabilities wallet merchant. and proving last RTP we to merchant. product creates are announced TAM innovative trust it expand using reduces Furthermore, withdraws, always real experience do real Our were credibility again the first and customer in risk to share and fraud opportunities wasn't which in time market our between year, first we and enhancing game-changers, deposits and there expands offer the sufficient the industry States network, the Like time Most

sporting are play While customers gaming new real events instantly in real all betting to United in and relevant to players fund immediately States, occurs time advantageous live deposits safely. as during our accounts verticals online in our and into time

x bank regionally to their using and and and RTP in our XX and over pay-ins simply quarter, accepted new to capabilities to we account-based as methods is to believe payment respect increasing of real-time first allowing a is card familiar for and payment payments, payment receive X preferred alternative alternative customers increasing purchase and digital expanding instantly popular payments to both into multiple method respect payouts there methods an growth with methods. adding before added With and stated bank we XXX. this as allowing to significant customers more XXX, As credit of forms portfolio access accept we as your accounts opportunity the our x payment

scoring in Nigeria, local Africa, money, solutions and and in APMs e-wallet Korea Uganda we and as mobile several and e-wallets own risk significantly Zambia. enabled back higher in in North In launched card several conversion resulting America Romania, we digital our bank management, about providing banking under functionality solutions we APMs payment direct industry offering our solutions Brazil, assets technology just And acceptance globally zero Greece, net Europe, transfers, list Specifically In South license. began voucher payments added excited capabilities. vouchers, the And of acquiring digital localized believe solutions third rates as for with we're essential using a and in Paytm, parties as we own LATAM methods as customers, growing for in and in liquidity, we RuPay, at AF the Italy. seat integrations assets risk and and guarantee our customers UnionPay Rwanda, continues We're added including other positioned Tanzania, happening In we charge local Asia, KYC, Boleto such finally with India. implemented cryptocurrency well Cyprus online-offline we in with really in well than evolve. Phonepe several customers. the with and payment to rather implemented Kenya, Ghana, for what's our industry Pick table payments, card

IATA of which our facilitate As and designed billing company to BSP plan, the credited support like and we system information agents flow and settlement to airlines and you having currencies. procedures expanded and passenger BSP, connectivity you through which reporting for XXX rather BSP's each relationships XX, individual and adding selling, coins between point the than through enhance with remitting funds footprint simplify or data a agents process all In of March XX agents. travel consolidated a BSP a networks travel, fiat and accept stands payment central to airline, UATP. and

will financial types that about Although our recovers. us a flexibility especially as Nuvei incredible help category capital grow having unique exceptional vertical shift and I'd profile. revenue shareholder flow like cash with travel gears low to From these value. smallest when remains it's to respect create of a yields talk now financial consistent allocation our and balance combined growth, sheet strong gives CapEx our with generation, opportunity us to ample and perspective, profitability, capabilities

opportunities When people geography to $XX on alternatives the and in it capital. For of comes focusing to marketing This have have million. organic drive towards products, includes cash we that our growth growth. stewardship the discussed growth and multiple of disposal capital shareholder organic and quarter, and our we business focusing respect our investment of growth, pillars our With for disciplined allocation and growth, continued the scale. key nearly we investing inorganic generated capital Previously at to This growth, on you includes invest we in outlining managing capabilities, for recent governance continue remains our value. approach to pursuing our free campaign. recall future in one M&A inorganic structure

a we simply don't to buy maintain and flow affords revenue tremendous that our have to believe our cash do We words, In never us we with strengthening generation other approach balance engineering profitability opportunities However, disciplined growth. to short-term subscribed model. and position, do our pursue acquisitions. sheet financial however

transformational to date, While and to companies, private environment, ready smaller a on have really for future. and focused compression tuck-ins. potential and of we're making interesting backdrop market in deals both current on evaluations mostly we is and The the for the execute public looking

for share shares as XX, XXXX. we March X.X approximately announced Finally, capital consideration with $XX April buyback as the respect part plan to purchased of in have previously total communicated million of we structure, million

to our at geographic globally, areas look continue which capabilities, card-issuing as in of our as we and footprint building our commercial a global are APAC, banking certain reporting, in gaming believe accelerating we launching marketplace platform single our XXXX, monetizing our focus growing and leader, and our to simplify capabilities, priorities in the API, tokenization product expanding EMEA, markets offering enhancing our continuously, we capabilities expanding Looking EMEA. omnichannel operations are solutions service for footprint, out multi-channel industry our teams LATAM and

grow the globally. evolving see, customers needs never and As to they still to as you continue we we're can our of sit support constantly

the our current and to over maintaining environment. the Before medium macro will and Dave, XXXX and targets I financials, who previously reiterating FX details the we full on year more provide outlook are for provided headwinds call long-term despite turn our

the join Nuvei I totaled from Finally have the first welcome around mates excited to in you world, March of the all team, wanted XXX to we're approximately team us XXXX new at part who XX. which quarter

to keeping an with the of of outlook, our to recently also days contribute want and As beat all employees our X.X recognize all policy each receive and vacation. we the fabulous additional each in usual, that time employees success who Nuvei I our day hard work the our every connected

stars the turn now contribution to progress that, and I'll rock are I for guys and discuss In company. grateful with mutual With and the You we're to our I'm closing making financials. results dedication to how reiterate pleased success. Dave across entire am over your the I'll our it

of rates XX% compared revenue. of certain the have exchange divested to excludes months approximately gross quarter quarter acquired increased increased change revenue the above billion. XX% and XX% associated million XXXX. of good and solid quarter EBITDA. was Gross and We Bill first a margin by in a volume, and quarter with the XX%. morning adjusted to XX excluding attributable revenue, of and a total of XX% of of inclusion in for in our businesses our $XXX to businesses result the period Thanks, as the Revenue volume ahead year-over-year quarter first $XX.X last attributable which of the revenue million everyone. million. unfavorably our top our by for $XXX.X impacted pleased in cost foreign The metrics, in to revenue Revenue which year had end of range first $XXX higher high is outlook Total outlook acquisitions, compared by the all primarily are range acquisition Organic a of key performance. We grew changes the to between were by following to $X our of million. in margin three was

of approach. in through and and gross our incremental the customers past, on meeting land we've our focus is the dollars expand driving profit As needs our stated

last year-over-year in we year. sales four other quarter the Employee than the In quarter million, based both more share payments, Selling, gross higher $XX to period. acquisition than for million a of contributor terms general year part the to in profit the increased increase $XX increase we administrative late and reflects last to million of acquisitions of $XX due direct fourth and The quarter, generated $XXX organic primarily expenses the more as those compensation in which and execute increased account by The growth, compared million headcount, represents by prior employee million. future SG&A largest as on result other based us and first year's to and completed to mainly our as this joined $XX strategy. share by who in and drive year from grants including management inorganic payments, growth employees of is which increase awards growth. and a increased organic

resulted in provided and EBITDA $XX compensation, to employee acquisition-related XX% by previously compensation. Our million also range the as in million $XX outlook $XX.X compared we acquisitions and quarter count, between head increased of the increase to an Adjusted in million.

certain quarter fair the recognition the March. was out share in quarter in spend we it to in interest due year as automatic the of than the prior million. value purchase effective purchase recognized due finance being into liability tax was to XXXX of $X.X our into This as to of in more $X payments was performance compared million the tax implemented over QX that which in Some in of plan, based to Adjusted million second share Canadian as QX Income in the the spend change relating the first margin quarter share for the in XX% are expense outlook the rate rate which from mainly above XX% deferred non-deductible from first some jurisdictions. million cost pf XX.X%, period. relative to cost the purposes of $XX compared in results tax an mainly Net quarter. well tax translates parents related last statutory the increased $X.X year's to $X.X EBITDA quarter, well marketing million to

expense, first Excluding approximately was diluted would $XX.X rate $X.XX per past share or Adjusted or million in or $XX earlier, which have per compared million of million its million disclosures. impact included XX% been share-based first million share the $X.X the per $XX quarter effective QX share. to represented and $X.XX in diluted $XX diluted the quarter based approximately mentioned diluted was first expense, for share I of per Net own unfavorable increase XXXX. this $X.XX compared XXXX. of tax net with income for $X.XX our $X.XX share quarter the income year's non-deductible per in on to consistent or quarter share

the flow, million to our for conversion which sheet just and quarter, for liquidity at of increased Looking Cash generation operating cash prior as capital the EBITDA million our activities to period the was strong. $XX over flow for expenditures balance Free the remain three-month adjusted for three-month period position cash free period. $XX compared comparable XX%. cash cash million and $XX representing define flow we of from

Phil profile, capital started, have we allocation. respect gives As us a to flexibility which financial unique with

in through capital we continue both managing remaining structure invest appropriately. business the and our to in such, M&A disciplined As organically

capital Up $XX approximately April, our the back us end approach up allocation million. March an also total buy per of at in of we we to have shares shares. part million As of $XX.XX purchased issuer average normal to implemented million price consideration for of authorized $X.X a $X.X share which to bid course

of we had cash March XX, million. nearly XXXX, of $XXX As

cash of had with to available million position we our an debt addition, $XXX a revolving in $XXX million facility. of $XXX access additional resulting In net under term credit million

low. addition, leverage remains our In

year and and release forward-looking quarter to financial in the Turning outlook you press XXXX, disclosure to our MD&A. refer our second I'll information now full and for our

of million billion, million second between between million. expect of billion $XX $XXX million we adjusted $XX between the $XX For $XX revenue $XXX and and and of and volume EBITDA quarter, total

$XXX million For more million. announced continue an between the of in and full previously outlook recently to in our technology, million $XXX XXXX marketing. strategy EBITDA we such and $XXX our and and total $XXX outlook, of year $XXX invest EBITDA adjusted adjusted The and distribution, of our in are volume specifically between of $XXX million maintaining revenue billion business to between the reflects as billion,

consideration pleased answer rates We're our Our and new movements outlook QX into customer we're please to approach a foreign takes for also to open very questions. your exchange with now unfavorable happy activations. Q&A. that, the recent in Operator, results, cautious and lines takes

KBW. comes with first line Our Instructions] Sakhrani proceed [Operator your with the question. from Sanjay of question Please

little talk might Phil, Thanks, spend? just you you have Could the good a couple the the bit or here. times some morning a and downside results. and few or of mentioned good risk of just discretionary growth times macro given verticals your to about choppy being you

and client current thanks. boards. what current and really at accelerating our wins Good been Yeah, look When it's client quarter-to-date, with we timing new we across at great Sanjay. pretty pleased morning. we've on on momentum, been about question. of and our A seeing we're new customer client look new boards we've base

there conflict So from we to going where globally seeing it Canada. clients in the We momentum. wallet we're the clients has looking have perspective our overall, as versus always lock momentum we we're from that feel some from with in pleased the smaller in But really had there's quarter core to an business naturally, we launch. when first upside the expansion on impact current small did America, verticals impact portfolio us. which kind Omicron with impacted unpack Europe of dependent North when business share But minimal at a the in certain Canada overall we're in be downs in it's our the macro were

year? there. was of rest growth for what and on follow-up that my the is and quarter look expectations I mentioned your at higher could this XX% drove you you But was last much And is slowed think just price strong e-com, revenue on I was to, it quarter. XX% deceleration When which growth that touch maybe it know Thanks. I North about America. the

transformation the no, business. Yeah, North what I mean, North is America of American witnessing our all that we're

across North digital our client our So in wins the verticals specifically America. augmented with key business we growth see of

the happening North of half today. We really business again omni and and that America, XX% actually as business North capabilities and SMB in impacted of second around lot from predominantly a TAM a small will year to XX% Canada, exciting expand portfolio comparison America is in see launch in impact the will what's our and we present our of card then So in that January. and our lock small portfolio, exposure to of downs quarter-over-quarter in year-over-year, was have we the to weeks we some because some both first for have our Canada, did three high

Okay, lock so to as you of that subside? don't expect persist the down sort

No, Nuvei we is our you're Sanjay but for digital certainly not seeing e-commerce is vectors what business. support, our our but our businesses business, we global focused of global growth on don't, dramatically SMB the

you. Thank

question next question. line your Please from proceed with Cowen. Mihalos George Our of the comes with

beyond? you're strong little to XQ think about would on maybe again thinking guys, quarter course in of that throughout the the we're of not revenue first kind talk the the mistaken the crypto, for be can and bit how about right going throughout help my of about And comp the question, I then and just that in should be I'm marketing be comparison the going elevated toughest add me congrats in how spend then to if a I in the year? may the it's year, that's the through third you of XQ the think results to believe, clarification, year now. of the coming about course course we two especially guess I just points the Let environment growth, David, acceleration obviously cadence second-quarter us thinking of the the be

Yeah. Hey, George. Good and you. morning thank

a the spend for outlined for marketing is the in million marketing year, spend year. we're of making investment it's the the about we what terms that In past, $XX

of As defer I campaign that there to excited by our a team, did is the been about terms spend QX but the earlier program more little QX. Overall, out really rebranding, remarks, that's in in we and we're into put together you've prepared in mentioned George of seen comment. of bit it my the and some of

seen. will you think what are really I be we from we've so pleased far

we're So excited it. about

kind will play QX of and the year. into So rest of into that out

planning, is, EBITDA. a that consideration, XX% our into then in will I outlook. reiterating take what mean, our are think in what you look, that's, of QX that of or XXXX revenue layer and that. but we're That's And it QX We From maintain on reflective that growth, the see did in year some to see obviously perspective, and I organic terms with perspective, we the that's comfortable something to respect see the for we headwinds again very that spend the are full out still we've plan an and our did we FX. considered that's of QX outlook, you'll revenue with outlook QX from for in rest so, XX% year growth, we revenue in both is there relates into and the certainly part

just a quick then follow-up And Okay. Phil.

about, you for looking I were when think, M&A. talking

I'm you're Can what anything acquisitions, used through for the just us of through I Nuvei different the curious, functionality, larger help sort transformational. term pipeline? be on that? you. or think you thinking you working we scale on the that Thank just is lookout omnichannel M&A think should more like

Yes, great question George.

because and from size our as better so perspective, perspective, and some so multi and well, converting from size to their go far amazing own But Nuvei their we and You customers we business. better, their know our we solution own, capabilities terms each we've looking own the of and we beyond a our have interesting many stacks, of modules connecting multiple what's opportunities to products their customers, flexibility. about at net running wide really been acquiring across in really we geographies are go is those real different help is go at have modules across in

this think we plays Nuvei strength. this, So into

value be public accelerate be sheet rush backdrop We companies. provide leverage balance and that of look are opportunities can high-growth companies plenty real their to customers. If our greater those continued and think that Nuvei shouldn't to to you growth at plenty companies public George, of Nuvei's the companies is that there's there for to

typically are just endpoint is opportunities we opportunities, really to scale that in time. the or which interesting be compelling opportunities, across engaged geographical Nuvei's really it's conversations the these capability we think happen with So the larger,

you. Thank

question line the question. of proceed comes with America. next Our from your Bank Jason Kupferberg with Please of

And I it, lot confirm, for just is if This Cathy Jason. wanted did I headwinds. a missed to the incremental you about guys on talked but FX apologies

there much that's baked to XQ maintaining much is out in your how adding figure figure just I'm in $X is the FX incremental growth Thank two trying actually you're but FX to XXXX and into it? relative absorbed to So you. is guidance, a trying point how so maybe or XQ, to maybe being there. exactly out, headwinds, just million more

hi, good Yeah, morning. Yes.

say March then from specifically year as step did kind FX versus into we of the basically beginning the we both relates into from we a down an And let's So for end we of of to March. the dollar of we course step step of first the quarter QX step it a You and starting recently another US the looked again downs of at for really at saw down May. end year, the downs. is rest there saw what had for perspective, Right?

recently. at outlook an with we're and from where perspective, rates basically those So like look what step we downs current considered

are for it's both course, for consideration but year. course, current and rates those the rates to the of hard we use of the in the, the and exactly Of QX know basically hard outlook for took go to where rest our to going

we to quarter-over-quarter know of, implies due acceleration kind aware and XQ. FX seasonality should I guide ramp what any that the maybe wanted XQ to line? relative or to is like first of or relative of like half And of minimal other, be more of in are the the Thank in you. year like loaded, just terms up to top bigger the drivers back-end some on the,

Yeah, great question.

the you think I that look taken impact FX for, biggest we've at consideration. into QX as if is

the of take XXXs. at a headwind of you If that back a right? low So $X brings $XXX.X QX FX into million revenue million with look us

in performance exceptional So QX.

straight we multiple to remaining lined down As have the We and throughout that conservative of rate Dave of and step lowest one the lowest did took we the be throughout took mentioned, then the quarters. the year. FX

quarter. is guys significant that second in headwind could you pretty So a the appreciate

So buildup. pretty the excited about

and the it So clients, to business and of activation, performance it's clients our really all what really throughout just engagement making with America. the business key different the the the regions. accelerate who's of the North excited our investments were for excited TAMs the QX two the Asian we're footprint. really in last been the year across in appropriate across we're if These verticals, we're strong, really, you acceleration and have meaningful We're really new in new really that on about seeing come normalize LATAM, the of FX is new acceleration who we're terms seeing transformation pace board continues about

is everyone element been terms QX is momentum really seeing the That biggest move continuing. it, does business but why the impressive of came first it than that a and around. and compelling. for for it has little the quarter-to-date normalize think that's I So we've in highlight lower also to Street, the in appreciate FX if And momentum our bit of it's very been the quarter you

Thank you.

line of proceed Nance Please Goldman Sachs. from Will comes the question with with your next Our question.

you you focused I adding the acquiring. a transformational other the to back talk kind in wanted acquisitions geographies that about did e-com guys up that acquisition, scale. bit harder to little a I looking you When past, and think strategy on one follow North American Phil, focused new and been of taking acquisition have really the transformational clear the SafeCharge SMB business at with guys on capabilities, global guys you on question on

look talk three that of feel you kind transformational like you about kind you think of the M&A, the to more reasons is guys drive that acquisition? solved through And of transformational acquisition? what do business you missing could would a could today different So the be when you what look at do

question. Great

and the for primary three ones, scale. geography, So are reasons a always us capability

modules certain our example, risk you think a current If is payment orchestration, Will. the certain to in base We really that card-issuing, think at think monetize you to for there service, with it's customer the is business be accelerate us. like to would transformational with regions and opportunities capabilities additive or of as true we payout or same all as offer our if opportunity in M&A, look for a answer card-issuing. us significant but We

and a in you some the and that's we're I currently So would pipeline capabilities is The taking the have expansion for sphere. that we geographic the keen scaling across look tell of really or solution big two stack launch. to us

So a pretty unique web and in wide it's quite I a that think position. puts us

guys the solid and obviously on of had companies. details. help with the guys the a maybe reiterating follow-up that then apart you kind here announcements adding from a and seeing guys just macro apart perspective a from clients. pretty us piece part the and adding capabilities of are you crypto seeing you've crypto on help of guidance you string question, us new are partners appreciate momentum And what from I Could new pull kind are the of you business, then

I relatively that remain been It's are year, this in for specifically a new fascinating flattish think years, fast think our the the Digital or us think we for current industry opportunities fast us. is with continues to right? outlook we've growth. Will you the crypto is did do the merchant for example is what in in and was we been we and industry how these and crypto for capabilities on geographies our if about Yeah in there changed how has are multiple What see two vertical clear as we considered our which business and payout current our revenue portfolio, that it alive slowdown critical levers fully three mean, is executing and as is, so there's we enhance allowing changed, we companies always cross-selling opportunities strategy for this actually continued to and for expand really What's that payment evolving.

excited really America North then expanding we're we're well. cross-selling with then launching LATAM actually on So partners about Off just stack our and and capabilities, the for execution On capabilities signing both with solution Simplex as our coin we've boarding, geographies been adding more and thereafter in in the pipeline

capabilities, like there custodial within to separate we digital crypto payment the things growth utilizing that And are to of I on. lot from Blockchain really just vectors speculative ground capabilities, but as buying we we the asset a more executing From help it the we think is we're going transform and we a perspective, the do. that we think on for think is floor. from digital thing the know think to biggest there's is asset is continue product and to map, we're the So sit a there a where industry, there infrastructure road lot

really happening things So exciting within vertical. that

you. Thank

comes Our Tien-Tsin next Please proceed line question Huang with question. of from the your with JPMorgan.

the core a these on wanted call. so for on Thanks ask much. of how you you to be It's on versus talked and logo comment about. modules, other Can I are good additions to define looks the like acquiring many how these I'm at also of just in share up maybe your competitors, it wallet could lot logos what curious if taking show Thanks. bit little and you're a more you areas?

flexible from the appropriate method, with is vase our We orchestration one payment stack merchant if on-boarding. to a want share whatever that's really customers, what aside, it unique the that's it share, our a take at I or is to it's from allows particular and alternative allows really think time payment of you it's and single new one market, local in logo but pull relationship uniqueness more our And four wallet perspective to it's kidding highlight of enter for seeing acquiring us really is us attributes. a if for grow for the all to have

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to now Great, helpful that's hear.

sounds consumer in to others I did the follow-up, capturing George like that a Just you and of cautious thinking about my asked your spend a down. broke quick think, and mention discretionary the but and I Will, for activations, crypto, what it customer I you're think but and Sanjay it's approach lot year,

backlog just understood So slow, does that's new addition you're could the sure conversion make mean that maybe little that potentially thinking a to I bit Thanks. there.

just it's in. getting really No,

payments people office utilize of for actually example, very certain many So to and their a execute and we to was right, their Ukraine people of caused it of, with out that lot really have integration delay us found interesting is Nuvei. how a see was for European folks and software interesting back teams development on

we what that's mean by So activation.

second it into in third, If but quarter first impact. has you're the live that an scheduled to and go the flips

only doing them on hands not signing on great getting live and focused that our quickly possible getting live logos, as with really customers. all and as current we're So but the these we're

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you. Thank

from comes line question. Please proceed Our Coupland with next with your CIBC. question of the Todd

thank and you good Great, morning.

following Just last question, up on Phil. that

quarters you've see off elevated boarding. many playing You've business moving you the most a history. out company's How signed talked bit on little do meaning the about the over, activations, that in out

Thanks walk that. Just the of through rhythm a us lot.

our Todd, our that distribution in we've it's done about expansion channels.

expanding feel we So still FTE, to multiple. where right? we're connected, floor by all really objective the sales XXX they're about is So is continue our on force a that ground our

sale the and to XX This investing capabilities marketing, that. we're augment we're heavily to with both a plus into going attending conferences system. still associated, we're different year digital So

and core are because our solution a doing I and verticals that extremely we're we sustain stack large our being this with we is the So think of can ton vast. relevant in investments

excited we're pretty lot our the and in do. some surface there's ahead So of about just us. scratching markets, to of we see We're more a

it up and Okay year, building on gaming, your update gaming talked Thanks you've more and just of approval see lot results? as just state U.S. a following regulate customer material lot. us to the in a and when becoming your then this you thoughts had you've about and in a gaming

and and building with of down, proud in a be a came and the of working with to here good, on on the in heads other has our so connected parts of world We integrated we're we the leadership. super, meaningful just integrations, platform who's proud really really been integrations, we across Today going we I'm board, Todd. I who. we're relationships team. guys, opted think the as working take approach players my really, super are execution am Thanks conservative saying, hey, to

particular we're may with them need can suits but other time, highlight just particular and that now. it a operator seeing their other opportunities whatever that particular we do for something with you conversations that stores at and get things product that that want open other and for a is And to we

solution alternate So into and we with payment offer platforms integrating to meaningful. to operators acquiring methods, all cross the from both using card gaming stack platform it's the North Province sell Ontario and launching America, that pretty the that

of where success. breed naturally, testament are who It's we success making and like I progress the with today, the So industry. progress, who's a we we're sit making

gain can be customers. share accelerating we and with expansion our as we more the wallet think more So gain momentum, we and

but running, mean, forms of payouts open now down, heads Todd. clearly just real we're all still are operating, We I we're driving banking we're live, we're that seeing acquiring we So the doing processing, opportunities, capability. capabilities, we're we're gateway think not

it's us. So very good for very, looking

Thank you.

Our from Securities. with SMDC comes your question. next Please question of Bauch proceed with Andrew the line Nikko

question. the taking for Thanks

however, volume dynamics in take FX rate revenue model. second mean, line, to much pretty Just the with appreciate wanted in in I I fully upon impact came looks line quarter, the touch the the on the our it like

we in rates is comp an year-over-year through, something and position So considering there maybe appreciated. would output, but any understanding that color be should are take that help be us think the

it's Andrew, David.

basis we're take color What said sequentially give points we we is rate would past, you QX in from on by gross some around like output, increase and to just really a the say are XX essentially dollars. of think maybe I about though, it, driving QX, an QX focused profit yeah, So kind it's about sequential XX.

number effectively a is fixed in increase we size, transaction it, have, charges QX really and the which it some fee So that talked you an over government seasonality has higher recall of QX about around QX that but transactions. for basically has at those many

of we're swing gross rate again And we to seasonality much terms happens. it's where also as look so you capability QX impacts profit, the driving some around. of on kind QX of see that the But add and take kind move what profit of the in very dollars. gross product And and that's will from focused the

and profit gross dollars gross dollars. that year-over-year, That's about X% about had us for increase really driving the dollars a sequentially XX% gross it's So we incremental about profit really a and increase on profit focus. in

clients. to card-issuing, Definitely time, Thinking platform a point. it products the be a could Nuvei that what seems added over offer fair to about like extension into natural can

an a platform in when term us you update way rolling potentially card you maybe could So meaningful and could think kind Nuvei's longer out of issuing reach just scale? start provide on

I. question. great on working Andrew, I it. diligently mean Yeah, we're

I we're customers Europe. in handful of implementing an now extra think

that's We road when priorities from we have think will ratios our really we to is business the look with at opportunity you XXX% opportunities it. scaling meaningful, something very customers around current But a loyalty as our to look XXXX drives to want them offering and create on we're to their they're to it. with to allowing M&A expansion we an and an driving pay-out card-issuing but across, customers, real that is and on. this approval continue be meaningful accelerate going It that it priorities all meaningful, accelerate enhancing and have that, be and our customers they lot with a will we avenue overall all our year what think

you. Thank

next line Our of Please Genuity. from your proceed Joseph with with question comes Vafi Canaccord question. the

also is congrats results license is globally? you network my quite may single add I mean that what wondering global your me here, for know UnionPay, business on mentioned card for important Phil, here, solid Let that I was the

think critical. I and question, payment mediums Great all Joe. Yeah. are

added also the of world certain from an core four critical. are acquiring as others parts have the So standpoint, and in JCB we've we UnionPay,

our platform. have continue So card acquiring we're is is something customers that to form that objective forward. to and opportunity UnionPay through of our capability to with driving is going expansion our wallet every current share

with to lead modules time of real and let's real you your Great. I use it? And capability. your or then any have I time you modules, know or solutions strategically? And rolled you've can you do with almost know you do out Can how you that say, lead need Thanks. to other attached

Joe. with our lead any of one modules. we Great can Actually question,

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in flexibility then of with every in the So every region them for time but engaging market expand every and the we there. What gives and us America it is right customers different. at appetite the what's from found, is North

you. Thank

comes with with Please line the your Our Napoli question Robert of next proceed question. from William Blair.

the morning. you. quarter. job Nice Thank Good on

to rates, of guys and on way that you've relative change Betting but that to when we any this really in to guess the stood any added win? wanted you your obviously quarter, there historical been I broadly, look, out, win follow the, Just up, had is there wins levels, amount kind if ARR quantify of you the just Sports is

of all, love First your I hearing voice.

So I'm you're happy that on call. this

that across really all but most we've we're terms really talking the good been because our If you profitability of you support boarding give we're excited momentum and customer, it's about board. wins. per about distribution seeing what In of about seeing the our across I can't regional we've on for verticals. Yes, core think our is successful It building been right? on we've and focused normal had expanding that it, quarter channel the vertical.

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at service the that's and why just So there a internally getting that started. just the really really scratching and Day we're is Markets deep Nuvei Capital is ultimately feeling pool we're

year, running guess end, crawl it the where the on by gaming the to yeah? seems of we run So running I by we're walk be end the side, should

not we're now running each we're all vertical, operating in. just and We the that in running we're regions again, are and but in gaming right? the running

those Phil, that to a strategy, so banking it Thank companies guess hundreds banking fraud be would of as solution and smaller markets be you build those businesses. fraud. many It want you. there, helpful? which ways Any and there of a are on those a open any And on after banking, banking open how a on then areas, highlighted, areas thoughts just seems many service like to to must fraud around I attack opportunities go and your follow-up open couple fraud you've just interesting of so

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provided they'll and Nuvei, be access them bank can it, settlements gives other that and account to opportunities have in that that Europe would beneficial. So weekend board provide we then when a with Nuvei on merchants

finding on and have we how fraud done came rates standpoint, lot value augment of where a the with how our that process internally to improve we data with that. and board we where drive own and and ways architects, that we over analyzing On we orchestrate work Simplex our on between amazing authorization payments,

So, and better. it growth just continued really these business are gets as all vectors of better

Thank you.

with Our your line next question Suisse. question. Credit Chiodo comes Timothy the Please proceed with of from

Great, thank you, good morning.

also FTE the the new the mentioned, On on coming component really of your Slide the growth that provide outlook? wins a the XXX but backdrop and new number seems XX% algorithm. could medium new and all should given think you the marketing within you all up, very supportive X bit brand customer that we just about term around, impressive context little of how customer Maybe component of

outlook. Great embedded question all into Tim. It's the

by build So, merchants. outlook forecast, do it the rolling we when we in our that

fraction is that a and pretty there specific. see year outer and years. what up is blocks build you We of So the vertical driven from signed you in seeing year in right? we FTE look and know, and it's at you we're region it what Tim building So, end always always the in by, we what in

with this going year XXXX. excited creates building, that but for live, we're certainly these So springboard is it customers

year more continued in mean us us, and gives accounts XXXX. share in a I we every revenue accounts get the in platform it as accounts great year fast for faster and the for expanded on-boarded approved, gardening, really we growth is developing see those So, wallet

Thank you.

your from Our next Davis question. James. with the proceed line John Please question of Raymond with comes

wanted just Good but it. Phil morning the guide, guys. finer lot's point on on been A a really talks to put about

go to lives, if in seeing the fair line expectations slowdown FX you're other with guys say words, XQ the So maybe in that guide initial in excluding and some business? your rep no

and achievement at But of clear. normalized in the Exactly sure if approach saw momentum momentum to you and updated seeing outstanding we've that continuing taking The beginning QX the that rate biggest look May. is we're lowest in good in conservative and QX is impact in business. the we from FX FX just otherwise, in for that really make try we the that FX was a

Okay.

is just in So is FX? portion really in and business it offsetting go live, the other actually words any momentum so

Correct.

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I question, think that's a great John.

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at sheet us. for our and I balance today think that and world profile think window all seeing cost changed has out opens is I opportunity the and think up that of in the profitable, health the without right? I being and thing second is think we're revenue the our Growth the we backdrop

in and see great we businesses them. we hungry, capability, are are line some now execute out on We there we have to

thing think items. So John we big do us. those great really, anything. I are to is the The don't for have

expansion such opportunity for that present though think Nuvei a them. looking opportunity verticals, have great core themselves and but intend we our across We do powerful we on for

Thank you.

Please the Citi. question your next from Our line Ashwin with proceed comes with of Shirvaikar question.

is David. that the into XQ kind the have lot what maybe down guys about half embedded. look you a that client do that that does Hi, Phil. talk Right? conversations because organically you of I you question based or the have assumption more reacceleration Hi is visibility is in first the I you client, macro I Phil, mentioned. outlook but the 'XXs. coming about the So a guess into half? XXs by and the I of re-acceleration it low is Could at guess you on imply back bit the visibility talked the little client that guess and second from that modeling, brings

client activations business, FX, QX expectations, our we are the seeing in the certainly, are seen terms which deceleration having, based visibility, within we of that on of bit the and momentum a are timing we we've look, think, now but Yeah, of client May. that only just in with April ahead I

So we're pretty confident.

significantly FX would the headwind have at pace QX the excluding of been ahead So current consensus.

towards of will that We are upon business pretty the pleased being with QX what is continue amount new up and building QX. in QX in the shaping naturally

I is highlight there's think Cup right. one should know, year, also I guys thing you maybe this may that have we for that. the because as missed World everyone here There

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Yes exactly that.

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exactly that's yes, correct. So,

Thank you.

the RBC from comes with Paul of question Capital proceed Markets. your with next Treiber line Our question. Please

thanks for squeezing and me morning in. Good

just mentioned crypto, to revenue flattish quick that would clarify the crypto a in you comments on question, follow-up remain Just your vertical. the

I also more those you industry is think that's XX%, you comments it or is just help be then what down please? previously two you that but XX% could the that XXXX to bridge said, said of

down. Yeah, just prices crypto seeing we're

Nuvei vertical expansions our have will for the from be new vertical believe what objectives towards a working flattish we and with We revenue and actually we're perspective.

with we're wallet new in share our but is We this the towards in down, with are what our space standpoint, executing prices Nuvei seeing the and shifts the naturally crypto current customers strategy exactly regions. from a expanding

keeping We year. we're with successfully vertical have done we're that for remaining that the and of the keeping the flattish crypto

you. Thank

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macro. well. Thanks me like one of squeezing as in kind the I just for on

and financial If that benefited you your verticals within services, argue crypto, about you they your place. think shelter could gaming, guys in clients from

of you So when think decent about year like guidance, amount there? your just bake I'm thinking a do how you full conservatism in

question. Great

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we've and So Mainland we're verticals in expansion LATAM important, important is by core always also the TAM, America. gone highlighted really North doubled from share into is geographies coming all the really, into from well. the TAM Europe, to we stack base product our Nuvei wallet of that, in growth we're our our significant as we've to why we've very on our executing and expansion expanded again it for of capabilities, existing that We've solution as comes and as and cross it add we our as of customers geographies add our current adds and adds amount opportunities selling within

item So expanded general mix important. our also you vacuum blush dramatically, product which has a Nuvei one is is can't really take and in a create also for

expanded as regional Our expanded solution and is our region offering footprint actually also well. has for

all with combined, in of in comfortable see we them. all those verticals So that growth core of our pretty the

Thank you.

Capital. Hummel of from question. your Andrew with this final question WestPark line the Our morning comes proceed Please with

Thanks as for squeezing me well. in

meaningful to figures a Thanks. to about this in you just and factored since the to recognized in side, we're on line, direct talk if what expense feel expectations and have new inflation but, on the for seeing have you on like what have incrementally number based you year. on follow-up the built-in just employees guys particularly absorb bringing initial you quick I and a you year increase as the the you are in guys of a comp Just employee sales

provide David. for fears Yeah. and consideration, there we are That few our ago. year, see its we into of that took certainly to outlook months the starting Andrew stir when inflation, full the factors kind

certainly into again now. it took full we we again, reiterate that as account our at looked year So

a with thing and other I'd The have shareholders how seen our employees make over aligned part share-based so are compensation, do of compensate see of that up we that and you that is we employees in We tick our too sure you'd and to plan just out to that's and too and our like the all point is share-based do this from an it quarters. all across grant of It sure that's continue well them all helps make our the incentive course perspective and we we long-term have from of aligned that will part compensation. of board. as a compensation inflation so are

have the you affect compensation share-based of at we year, but that don't is one our EBITDA that's the that and even part look of and approach overall necessarily though doesn't rest component, just it consider up, have adjusted that the well we tick as for seen of factored You compensation course

turn our back to concludes comments. final I and floor any Thank gentlemen, Gerstein you, question-and-answer Mr. that session. will for ladies the

participating. Thanks everyone for

up always As follow questions. here you if to you know, we're have any

we feel free to future. please a in great So, and the speaking look Have with reach you to day, Thanks. out. forward

Thank conference. you, this concludes today's

may you your at lines You your disconnect time. participation. Thank for this