Nuvei (NVEI) 9 Aug 222022 Q2 Earnings call transcript

Good morning, ladies and gentlemen, and thank you for standing by, welcome to Nuvei Corporation's Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions].

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

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

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

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

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

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

call share quarter for making all investments, growth, progress operationally enhance our Thanks, driven it combined Anthony. We we we growth, the revenue which cash thank with financial driven strong for tremendous our you generation flow. the joining with quarter company. to enviable by stress the disciplined cash free I second Today, few by morning, attractive an Fintechs this sustainable as growth topics. when had an across we already And unlevered solid provides financial and the continued highlight are to the want optionality. which to results and four are one sheet, such balance comes exceptional I'm that of going to high especially profile, us review profile

the for second quarter. results our First,

recent our go-to-market Second technology strategy. related operational and highlights to

rest forward for and year, our fourth view the the of and details of expectations current looking Third, trends the business. on the

Adjusted now billion to $XX.X a to billion Turning in our total in XX% the customers increased with free scale quarter. we results second million XX% $XX.X flow net initiatives. as at volume our our solid through grow XX% total a grew to adjusted the with a and impressively, per continue income EBITDA on cash Adjusted XX% basis, organically same $X.XX. share on strong a $XX margin increased and constant to detail, More outlook will had go increased but a at our or basis. level on currency XX% with increase execute Dave of we quarter increased exceeding strategic our grew adjusted net XX% and total $XX as We EBITDA XX% financial results. XX% volume volume more to to high continue million platform. currency XX% last Revenue currency a constant and for and income diluted was the basis on to year. period constant

by anticipated exchange as $X in strengthened Dollar negatively digital the between revenue exceeded $XXX and of approximately outlook and for million. million previously rates, mentioned, was million, in negatively cryptocurrencies, below anticipated foreign more currency volume volatility As which than higher provided mainly approximately $XXX and we our assets million. revenue range both volume while EBITDA million a of changes $XXX revenue we and U.S. impacted impacted $X outlook adjusted as was result which than lower by we our This

for total, flow these important impact XXXX to the expected to the organic have strong of of As in we In volume in revenue million. assets to headwinds last net EBITDA a which we very cash unforeseen, range million which of presented a approximately largely the which fees, been $X alternative basis or gross $XXX digital to of end outlook million, and payment also were impacted half these share. our on which as revenue revenue cryptocurrencies is well and per second presented in in at Outside quarter. adjusted earnings from $XX mix network negatively year. is contributed this approximately Naturally, the recognize is the of many methods change second year’s by revenue It free that growth payment credit top of and these second of factors activity our of would combined revenue in headwind factors, impact temporarily provide. headwinds interchange lap are as half these

and support rebound. impact this payment our to relevant alternate increase payment preferred payment the positioned just over strategy alternative an to our we greater our customers well very credit In ramp revenue of methods, our we to always I continue customers. with does and adjusted quarter, our With as has on explained, has trusted an with which it for a options are been EBITDA. usage provide in that are methods, and year’s all saw We off infrastructure respect industry than to robust customers on their second on

and our I we're our progress a including operational driving basis, sales verticals. to what of with some meaningful strategic our our we continue alone, initiatives, even geographies, XX%. now innovation. is executing increased it revenue growth Turning seeing make growing increased the XXX% store quarter, technological our highlight expanding highlights for to what's in and same In travel that more interesting will on customers,

represents revenue, overall and than existing be driven a as as [ph] X% in of will it second WestJet including traveling along which by advanced has new clearly customers, less transit, and well lot momentum, quarter, deep While wins, air pipeline. the with a customer

expanded to had future. retail this our to beginning in With - Recent retail is which for revenue greater region, [Indiscernible] an year. the our confident showed at online of efforts, are we as is investments online last just net of for to had driven play new you Looking and in amazing happy, will omni which quarter, training year our gaming, revenue channel from second growth especially quarter, business. or vertical, year’s progress regions grow schedule an global helping over as our mix XXX% versus continue region recent last new we predominantly by they excellent utilizing we even really solution also the across and go-to-market one solution success, such consider is multiple when role

the and the into the second gaming pandemic, the This month sales Online more As European one less pushed difficult Football to previously in was comparison schedule due makes same May. increased XXXX summer even you in in it this quarter, League headwinds with year-over-year for year, ended but whereas X%. highlighted. recall, this store year effectively may revenue

quarter an in XXXX. to second gaming business compared New online drive by quarter, progressing XX% of also and the well second gaming the online is helped increase revenue in in

country $XX of million terms America, to In online our run run digital we in and qualification. to deliver Overall, we're will now of usual depending XX% and seen the of to November on a to pace of XX. third revenue this annual related progress recognize target on and XXXX to $XXX verticals, the gaming later due our and many the year, to make With through assets in vertical continue progress World run gaming respect in December course our season Historically, revenue is XX North momentum approximately our started of year's focus the European and our saw earlier and rate XX% lift medium Cup, Football revenue rate excluding this in that we've remainder important Cup it quarter of the week, World term. this League from finish XXXX, to which strength cryptocurrencies. year's online on is million than

in to new update and business now Turning strategy, reflected in continue extremely teams sales to invest an on we commercial growth. our our as well are performing go-to-market globally, direct

additional confidence our with and crypto bond more customer activations to first both the revenue second related FX we approximately the deeper business new channel quarter, from headwinds. are global on us had XXXX. in in is providing ecommerce with direct our quarter coupled than double Specifically, pace in and This of the

markets second quarter, office China. and We more in to year’s now have first a we expanded our our opened visible penetrated gone teams in from LATAM also sales much having being in this presence. APAC under In meaningful

of sales on objective reflected global to sales world given are conference yielding are quarter of second force investments the I'll headwinds, specifically. direct as within we constant that we the business, our outcome quarter expanding sure channel all Our XX% coverage. focus revenue in make channel customers an almost this exceptional the be globally continually in to in remains our impressive remain currency every around increase results highlight local and our our the in to in region impact our that direct have the at experiencing

we excellent quarter innovation delivery. of other product on had also highlights, operational Moving and an terms to in

stack our scalable peers. our continue when compared most We that technology to of unique offers believe modern, and is to business clear our

enhance product include XXX focused our expanded expanding respect In initiatives. quarter-after-quarter. by ability by innovation, few. highlight like standing solution I'd and European our is own execute a and to Our more forefront solution of advancements offering relentlessly remain payouts, their instance on the now driven at of business all capabilities, FIFA on to talented they never countries. we still in modules than stack as to customers supporting innovate our and We specific for to team our constantly engineers payouts With

in Canada, a launched Colombia, Chile, in Malaysia, Romania. and add Brazil, Canada, also We local options Mexico, payment and Visa Peru, Direct

more roadmap solutions our to more Our offers our pay solutions choices customers. offer, with And more the customers and remember, the their continuous become. relevant efficiency more options greater in pay drive and we out connectivity

which our easiest developing focus options, platform. our customized customers flexibility. ahead technology penetrate will of Simple that global expanding more our and is a With for integration card offers tier three full to emerging Connect peers, believe Nuvei integration, payment as we're to to tier it's SDK, TAM on integrate, two globally. customers launched and a of we We solution simpler our array dramatically than partnerships our just Next, capabilities SDK allows simplifies the and

creates meaningful is our for and about product Another excited opportunities us launch solution. we're that omni channel ahead

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capabilities expands also XX% and the In round applications own of XX acquiring on our towards including scheme we actively [Indiscernible] and and capabilities. car high our to JCB capabilities remain our now XX% customers, of as execute perspective, wallet share. pushing enabled working out over actively can International, priority we solutions TAM growth see in vast To our and product them platform our summary, greater to offers each on to the a solution brands with better our acquiring local of customers we're us terms to geographies, We've our with to more licenses on In customers helping the provide of markets. enabling we expand average typically relentlessly share capture so initiatives. focused their put wallet into position our

next to related in lap we trends, few crypto and market going we the the excluding see to continue the believe business, momentum are FX headwinds, we to which now quarters. over Turning

consumer see change constant growth in there the global As XX%, you from of the performance can visible no quarter, in second just our volume has been spending. of and e-commerce currency our channel,

how, the predict decided have However, XXXX. change, macro is challenging on considering the to to of we it with and side respect second half when, environment, and caution if the of trends will here

for FX, our are heads down crypto have the our and emphasize we outlook our we an initiatives to the to take I'll quarter about amending direction into such, we're second maintaining a cautious, executing from billion continued on we As prolonged additional and our buffer. year a strategic be headwinds to focus that included results, consideration we're targets, laser of headed. achieve first and and and very term long in are medium We're annual which confident revenue. aspire winter

a us heard making we people, long for the the geographies disciplined in today, you technology are in manner right As and to positioning continue invest term. and investment

have business We built durable resilient a model. and

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for M&A, like board Both a members many of we has directors are maximize governance value, welcome dislocation. Meta see number and are recently Lau, advance XXXX. the and Tim our Latin Dent, well geographies. served to new very and diversity Financial of represent But our board extensive Tim highly knowledge, disciplined do who growing and independent Vice America DraftKings. by Compliance the additions board. of former of experience targets market Maren of further outstanding two fast verticals As to with Chief past. to bring I'd the our our Officer which Regional our opportunities in President Chief appointed shareholder skills They us where proven and to increasing Maren end relevant the They women corporate are strengthened by XX% and which leaders remain

for I finally, want from relentless of to hard them. look to your chair I with And forward you working our and As employees, Nuvei, to work. learning thank

joined are the guys new to and turn XXX the team You XXXX. I to in who the for going also more to over than to excited that. With We're members quarter. Dave discuss you. outlook second want call our amazing. welcome have to the company financials the I'm

was And good then are I our and operational the second start QX quarter turn with and for results to quarter the everyone. Overall, Thanks, total EBITDA of pleased Phil we third adjusted morning, results. rest range will Phil. our We as for due the elaborate I our below to exceeded end outlook our financial and mentioned and headwinds outlook and top will both year. outlook of volume while revenue on. the with

from represents In cash addition, operating we during million, history. company's quarter, of level activities the highest $XX the the generated which in

cryptocurrency to Our by increased that XX% Total strong, successfully Revenue $XX.X which billion. by $XX.X currency executing the are basis, our we to $XXX demonstrating by very balance combined approximately was billion, and outlook XX% on us which mentioned quarter, compared throughout as provided our negatively revenue on $XX factors; unfavorable million we basis, range quarter. $XX mix, of impacted the outlook by of Adjusting fluctuations, end volume currency top exchange impact, rate for impact three a the million would volatility range for achieved our to be gives to scaling remained constant increased volume volume XX% million total a $XXX continues year-over-year previously have plan. consumer strong that of and Phil million. flexibility. spending an as and the sheet and increased On to

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from geographic comes our reach, regions. revenue terms In four of

The America, XX% XX%, region total increased EMEA largest million. our saw In quarter, X% is region at our increase revenue of second second XX% the North representing to million. which revenue, revenue, $XXX $XX largest we revenue, of to

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recent rate consistent take level this with However, was quarters.

approach our resulting the we they customers take irrespective rate. provide mentioned solutions need to have As of is previously, with our

able with to our customers expanding with As maximize profit our payment dollars, wallet technology as we and we support them our provide solutions, them. share are through such gross

This $XXX as half was Share and we to is a as well other growth prior of second profit to organic which margin represents Paymentez compared joined The in acquisitions result increase increase $XX the administrative grants. XX% of by increased quarter, to us than $XX increase favorable mix. as to payments than in of $XX who In margin as year. the a as this have non employees SG&A share lower revenue we was to XX% adjustments result and which approximately Gross primarily million terms the or XX% million, quarter conditions. price of million, million Simplex, general or an year. we which we performance expenses quarter last XX.X% the payments, in for nearly the to Mazooma $XX excess $XX awards the a due as which increased $XXX in largest was year, compared million XX share a to latter the completed result of market of pertaining of acquisitions well due to last of growth more base million year. invest based quarter the more gross exercise a or generated business, based last part completed XX%, incentive continue in gross as second price first grow share the contributor and year million quarter, in to of in or $XXX. as Selling, awards, to of approximately awards downward million condition of with of related to Furthermore, performance the the sequentially expense in

a that of the not relate share an exercise outstanding $XXX were as high outstanding price high performance the representing a a the condition of day. units total are proportion price have to performance Approximately incentive condition units money. X.X and XX% of reporting As of in or price price threshold, units excess million the result of achieved exercise non-market share significantly the of performance or out

are other in to represents compensation these change sales as diluted indirect EBITDA share and $XX outlook of our plan million, considered cost purchased repurchase impacted XX.X% resulted share $X.XX This impact fair X.X in of as units those market income in This execute increased diluted remained $XX rate experienced last per management a offset completed headcount, reflects increase was jurisdictions higher the Income as which of XX.X%, year. million the that of specific the items, the of or compared would the the value in result, to million was due rates the acquisition purchase $X.XX share by also the result range diluted fair Net favorable $X also higher was to pertaining XX.X%, the terms our This the tax note at not $XX finance being partially in million, strategy interest this increase both in the the second than as relating repurchase prior Employee was payments in $XX to plan gain quarter a shares Net in between automatic of gain mainly I strong liability. was prices of last non-taxable finance as quarter approximately share, share and to in account The mainly at year. to established automatic date liability margin the higher interest quarter, quarter below compensation due established. employee effective in operate, quarter period. XX.X% second acquisitions the which shares favorable tax EBITDA. and price last as million, based such more below certain earlier share well share a than primarily costs. purchase the in compared or also to would outstanding. income across diluted costs $XX subsequently $XX our million. for expense organic As we million tax the was quarter increased Canadian favorable This regions. compared million. on from to was lower from year-over-year in headcount the the million per quarter change the which corresponding on tax by billion. future of and million, debt, of rate of environment. an rate Adjusted all value quarter growth well increased in provided statutory which $X EBITDA net drive an including growth, of approximately approximately $X have above and adjusted again previously Adjusted year year headwinds was during this $X we year

its quarter in income second increase to which compared this net a diluted $X.XX approximately share. on included of or XXXX. Adjusted year’s share or per earlier, share, represented own in of based million $X.XX diluted $XX per share mentioned per million, second $X.XX the quarter $XX payments, I diluted million As $XX

Looking three and period. liquidity months XX, at June year XXXX generation cash our for position million, strong. the activities and Cash cash from This from activities level for the $XX the conversion in of was operating compared company's ended adjusted of represents capital defined cash cash $XX flow XX%. representing sheet our history. prior million level quarter, flow, as is EBITDA for comparable operating generated plus highest flow balance for to remained the which million the cash Free the quarter, expenditures free was $XX

Our flexibility and us respect profile generation balance allocation. capital financial high cash from our strong to gives unique sheet with resulting

million June such, normal disciplined X.X of second capital in the total and implemented purchased the In we we course XXXX. respect approximately for allocation XXX,XXX total consideration purchased issuer a of continue our for the interest As quarter, Also, for through million we second a the subsidiary while strategic in With in total, the we XX% shares, minority $XXX shares in $XX million approximately XX to business invest consideration bid, have which quarter. $XX remaining approach. million. in to we March, in purchased

As almost we had the cash $XXX at the quarter, end of million. of

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

full remains to quarter outlook. will XXXX leverage I year our low. now turn third our addition, In and

second and volatility fluctuations, macro certain our cryptocurrencies to and amending of view trends we and the we environment the outlook. performance currency unpredictable a more result conservative have strong half in date, of the of cryptocurrencies a XXXX, As are and taking observed

is I'll third press the in as you to year MD&A. our for information outlook quarter refer and forward and disclosure And financial XXXX our Our follows. full looking release

million constant revenue For million of at million total the and $XX $XXX $XX and million. $XX billion of volume $XXX third billion, $XX between currency of $XX under adjusted and of $XXX million. and between between quarter, million between EBITDA we and expect Revenue

of of our adjusted year between constant our specifically between revenue strategy full as of million, XXXX, such outlook and Outlook are million currency adjusting our The and of the distribution, million in reflects EBITDA continue to business adjusted of million billion, and $XXX EBITDA $XXX announced the billion between to $XXX For total technology we invest million $XXX $XXX at and in to and marketing. between key previously revenue areas million. $XXX and $XXX $XXX volume

opportunities current the advantage well Our as takes relates to outlook well With questions. our will mentioned current factors into macro not to only very balance considering the environment. and also a unpredictable uncontrollable we take cautious unique previously, cash I are position consideration as sheet and generation, high the environment, capital through and the but manage organic With take that, positioned also allocation. it we of as open to your acquisitions, growth, line now exceptional

Sakhrani Sanjay We ahead. Instructions] go have of from Please question you line much first with the [Operator KBW. very Thank a

morning. Good Thanks.

So you points as each severity revenues David for those in you down Could the first a outlined. did my sort second a number of of maybe big break the for David. Obviously the for guys of for swing the is maybe variables quarter? half question of just dimensionalize Phil and that second

for Thanks Sanjay. morning, the good question. Hey,

is flat three earlier terms so the of outlook, FX, which we also the of our yes, forecast course. did So breakdown, in rates the rate have have of now, time. factors, on last in that of year, consistent, is course, month to changed FX or when original the in we of in of What impacted terms say hard a so, rates What this impacted kind of terms reaffirmed it's and and course, that FX I'd QX based year. assume meaningfully point since the of pretty then kind half those second of

forward it's impact year. look you we impact. second talked larger We much If in the $X as did into a million have the look bigger of being a the drop, you impact, it QX, half about, at

We haven't see quantified can can constant kind but of leave from you basis run it that. of externally. And of a math, kind But currency some I'll the you kind it constant on at year, basis. full kind we full of and year full between basis $XX impact, on year reported the gave million see reported the about a currency differential you on can a

crypto a taken again, significant pretty as it and over something cautious and also and perspective, digital down that's then of use HX approach. a data that versus terms we year-over-year In from And pretty the APM on materially QX point reduction. and component, then HX, a assets, taking from and year both we've a for significant also that's

kind you how is say buckets, of about the described of So caution overall, currency. think cryptocurrencies of how how it a the I was And, three is think into outlook. three the for it outlook, the, rest I'd kind when when I I say and currency, I Sanju, falls is the about three, C's

great. how us expectations? winter up Okay, sets assumptions, itself, I a affect were maybe If bit But qualify some Thanks. that your medium you they that you to apply sustains little I know assume fiscal the especially medium any term up, XXXX this target to matter. don't commentary, question. necessarily like could to given in guess, XXXX, does And just or help year term crypto how we of that as of other sort growth, follow these for crypto.

a it's question. good Yes,

one, There's, year quarter have crypto today. from investment and you haven't more we'll obviously, will to that an We the specifically, caution investing we're certainly at perspective, future provide this a our business XXXX those, And gave hard our verticals. so, on And that, tried is XXXX we the look, we disclosures approach. some other the right. saw it's volatility, cautious there's market the in capital at certainly until in, we've than in to And get given get later wait obviously a outlook but

do good other business we momentum, growth verticals. and and see, fact, And new in so good those

that's another know I I I to you still say think don't it point? not forward us what to you about XXXX think specific I know way but so add I'd if there's that wanted say. kind on So go I anything of what that's

first of hi, happy all, Yes, to sir. I'm Sanjay.

over the the next going is when of second activity thing unlocking quarters. be I at think look activity, saw, we year's are the that was of half few it the XXXX, to interesting last we majority you crypto

the I our as business in customers second, businesses expand into APAC. I in is in performing point. North really our we're find think And investments as making consideration. And our that's And which with momentum we well and continues. taken really first has, our momentum interesting new we've that been LATAM America fact, in has new both well. and as And continuous current

we're So bullish business. quite of the

we think that we something have to overnight. meltdown built to Certainly vertical, going we the months. as not market are don't excellent These expect of XX making. and unprecedented but are right? technology highlight, we long businesses to next we recovers, unlap, the Great term I investments to investments are digital recover the help think asset this are XX to over it

you. Thank

Sanjay. Thanks,

Thank you.

Bob question William line go next of We from have ahead. the Please Napoli with Blair.

morning, Good Phil, Anthony. David, you. Thank

Sanjay's C's for economy guidance on up part have color follow relative the give the how it were on is July question I meltdown a the caution don't any maybe the you Just And if three where Cs? can third on to a much mean, you today? quarter? to into numbers? on of your I the month get in macro mean, the And performed the from caution essentially what you built economy? be of how the steady,

not change. to But we that's our come. spending to in From if it's a really, the impact the and mean it that that be environment doesn't verticals. hero. with, spending consumer think executing, now biggest discretionary time And we obviously it's cautious, own will the going perspective, I very Bob, like be when really business. have see seen the I be to change with what to business. leave not won't you we But difficult heads want can a thing predict, a how like we down to our macro We throughout

uptick an will my footprint. regions. obviously, travel, next seen have in to predict other And travel our We But be. in in as we difficult are few quarters expanding what What is will the and mentioned happen Europe I extremely it remarks. prepared

have perspective, July gaming within seen resume earlier in this our So we're naturally, not very have the From we activity we line, cautionary a July, well business, was gaming, active in taken week. tale.

perspective, is our we from So as the business expect. performing

would of there. goals -- more are your up what break Okay. you the And think what in-store, on comments and the opportunity on long the made over any color you mix omni omni you you omni what give is business if your today How then your the, importance is can and some of term.

to think going unique basis. our think to on going omni is bit, little And per we the across a be is omni offerings omni country we board. And substantial. that Yes, quite be substantial to unpack naturally a

we're operate on that initially, at be U.K. U.S., and we and looking Europe to going other focused then and are Mainland markets Canada, we in. So

drive are we journey that RFPs most nice far That's today. point. excited through, see these think it coming predominantly, will win we're than business first very verticals see pretty the a us that and to across of there. on we we in really through more because help Bob, So But the most requirements something

omni together, to I part retail think expand an that online, just and the have but the merging not appreciate we of that into second retail thing is appetite well verticals is to nose. are

the about In U.K., is of example, If still majority gaming on for you right? vast think gaming, site. the

it them? at they own modules, So is portfolio. And to do our look will country their operations? own look when and of all we help their think lot fascinating to on our relevance comes we from that multichannel look execute simplify in growth what a because get third a is, I helping and the our And journey, it's aspects initiatives. country customers that topic and help And How we and thing of their omni of materiality to how our grow part strategy. has at strategies own them a our we at their do in customers, own from a and certainly our modules own lead as we'll big of

looking capabilities, And we're upside but the So pretty own our of not at excited base. set about vast our can meaningful. opportunities pretty only within do we customer what

of end expand our of So that think seeing us modules our pretty share thinking will all other chair, an or wallet we impressive. combined allow and about us that's with you XX% XXX customers omni when meaningfully wallet driving up opportunity to

you. Thank

Thanks, Bob.

Thank you.

of from We have Please Credit next with line question Tim Chiodo ahead. go Suisse. the

in to little even I side, upon doing bit? you a little comments will store just if a bit you you be made around you then changed the that thanks expand allow that RFP particularly ominchannel want to with competitive store just so basically that more bit, on point Great, whatever's double the could in capability you It what's Nuvei were without down the processes. a around dig a well. Maybe little omni seems into changed what's quite in could on certain maybe of like the these RFPs. And lot.

look just in for especially that hotel been Yes, morning, Great even capabilities. win their question. And to have a Europe, retail, and omni for enabling requirement on good respect What Tim. for we in could specifically with you others example, Radisson most and omni. is we had online, at much found us RFPs, a bigger won, but if

wallet started we rate always at a looking certainly a as both our on win So expansion roadmap. experience, was omni part opportunities, and and a merchant opportunity of

it's blocks, changed, the building has right. what really just of terms In

diversifying the And really, omni, which just point roadmap. scaling changed important. we really platform. just So haven't for And really we've well Tim, it's now think executed we is and our the we're at on

in the has utilizing that our world been right, you the we some clients demanding right mission into of technology now. expand how verticals. support other and guys If we're remember, to And know on most that executing

now accelerating for us. expansion of channel capabilities retail retail, global and our and marketplaces, with expansion with accelerating global with the exciting So operators and really additional modules,

thank you. Excellent,

my campaign. is marketing on brief up So the follow

given investor outlook. the So campaign. that's or if July at progress a you on day, plan, and launching the on guys that, in you about to the talk timeframe talked somewhere brand marketing Could about or still the if May changed, anything's

we launched We've also awareness and partnership some brand in conferences both development and uptick have from meaningful it, we QX sales. a XX perspective, perspective. From a roughly seen attended, have

is So on throttle see we're the backdrop. pace, marketing thing able well to based as great about we a it naturally, on that we're what

any first that at are interested in make the is time and that we we're seeing That's to optional few when having quarters, How And we are have are message the we're So the we them. our around we point leave we changes the biggest businesses now. sure it made QX. delivering with want do we what respect customers willing open and with receiving those that we're whole a absorb to our discussions have a to messaging, thing make sure backdrop table. QX, as do the not, in here not in

a in Thanks those Appreciate marketing. Excellent. of both on the the lot. and store

Tim. Thanks

Thank you.

from ahead. question with the next of Tien-Tsin have JPMorgan. Please We line Huang go

Is we're from which that like was that issue, I and interpretation Hi, curious morning. a seeing switch thank this kind curious, credit. any, to cyclical you. chargebacks, on thing higher If in… anything, Good I'm of APM there?

even Hi, any any to good morning. great No, have seen refund chargeback or insight. not ratios, ratios. question. we No, really seen not dispute We've or change ratios,

As we spending a perspective, perspective. consumer kind of mentioned engagement from and like

for them their our those And most as our to is medium customers us, appropriate payment payment connect vast which we customers. If with customers capabilities they for you customers. our to help choose allow with engage recall, want

that perspective it not leaning towards seen choice. APM. choice new from the by has And customer -- than an is by more credit is necessarily flexibility we've that driven customer overall portal So driven that been

don't Phil, of points at you've you you, different seen the I mind And lot know you've before. had that. And cycles ask seen before in for to a consolidation the in cycle. if Thanks I sector

the here your given comments a when days Does on change your Thanks. lot makes all M&A talked, So caution, of sense. I it we to and that ago, now, do guess relative just love to there. XX thoughts appetite

a discussions. open market. is dislocation are for there in obviously, And the we think I

just high good the flow. a our news new balance is perspective think other stress peers cash strength really bay sheet and from I growth to versus a

itself the that for amazing will off. as I an of they own remains is. that's may they to as cautious around customers financial stay world. our I The think transform important strong And think may think a that we're think, And execute help to their There's able really it pay us help help business customers, may business I quarter. with as we'd the or their accelerate change that building things things our that utilizing enabling optionality. opportunity drive locomotive things no guys it's rather of profile, and I the than because in enormous we're discipline is fix may engineering, journey be And our not transform is, highlight to or just gives strategies a reality terms narrative us. opportunities customers our on rush, we're financial not

goodies that's see we've So right we transactions that to one and you'll the And have do message must shareholders it's we a you lots all shareholders our to absolutely disciplined. us few consider will seen the see and think be of past opportunity. I is us, the other weeks, But won't our options. us not three for the the in over

strategy to we're a is certainly Our top lot capital allocation going a of And concern. of have discipline.

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you. Thank

Thank you.

of have from Nance ahead. the question Please with line We Will Goldman Sachs. next go

of C's softness I your potential of the in going just is in account to wondering the question. of Hey, potential to kind could year, be for of some down out of you materialized? guess, you taking the macro I in of headwinds. revised that are like are two further guys looking of we've observe the morning. half on I guess, guys, the if verticals, seeing order Appreciate some drill or guess and into in clear are the absorb quarter the sign to yet how guess, baking all we're specific guidance feel the well, the enough environment, whether coming to business, broadly hasn't that for of of different Phil, sorry, parts weakness that headwinds, one an absorbed good I you I questions of you key the take is David, investors these this terms some of kind conservative And of back the from crypto specifically, maybe around and kind in the the of three much caution

that helpful. any be in would share, could you color, So

being great we unknown. hero first Will, enough think think three so to a months. we're at there's that this much I point And bake So when six is out Right? it's all, back what months and we that's to in And caution, of There here. a wanted I want not in question. no do there

its to certainly So brought about you when point. we've it think lowest cryptocurrencies, down

steady think a happened from looking up I have across just currencies, assets market, We've in think digital a the about market trillion, foreseeable that $X you end what's has to right, other. shrunk you we for And trillion, the fairly the a the just what's decline, happening lowest around that's taken future. you at from and perspective. point believe and remain about NFTs if $X going that's

highlight to is we I to second think thing the unlocking. are going be

So growth the QX, bulk digital of year. our in QX last asset came

with is that. going we we historical tried good looked we've at is at we we looked at to cautious. current part what want from is we trends, important So really trends, terms that what really public out And a of And we want vertical, gives we our extremely by far. pretty to I went what disclosures buffer most unlocking drive put be in high can we What tomorrow. a flexibility discipline, at when can be customers. that, But look to happen. so current are us good even XXXX. looked the think by we us the happens and for that we do comfort merchant, what to view of predict We're from outlook nobody perspective. Obviously, add there And cautionary went

it. Got

EBITDA on margin. And that. second Appreciate question Okay. then a

to forward? headwinds I to for EBITDA like that obviously, probably on I'm somewhere I a little starting driving do the investments run spending? go-to-market of elements But obviously, wanted to that. the and the I think macro bit implied you the investments would going from probably just kind of XXs. of between versus about gave, brand the of the year how low on you before in in our guessing pull back guess be your conservatism And the of are thinking math, there. the the go just from And half timing some was response willing rate understand, it some how you are guess, high But I margins there's back seems the

it’s Will morning, Dave. Good

bit seen cash we're. really little half, the margins first the we've strong sheet, half a the implied generation. Phil lower it be a right, have we that's and are But mentioned that to So balance second amazing than before,

so from and And growth potential potential, perspective. so much a

we're we about comes to and omni in the all you and If capital business channel, that all invest, the about combine allocation the regions to and want in think really it think then whitespace, back and, to.

reinvesting one in is business. number Our priority back the

to we're down, it it from if a are too and touched that, balance question to touched but kind in generation, come we'll certainly that marketing, and you of we'll down $X think back reinvesting your we the driving right portion margins. in And, that a disciplined, earlier, we're, you find about upon cash and right. those to return think EBITDA. that then it's will that, so hire. makes about, be QX Will, to the expertise certainly you thing getting we But makes that sure we on just regional yes, the measure impact we think it of a in do margin, can vertical have And We're, make had when impact that And and, and at lot expected lot in kind margins Phil do be selective the And year-over-year so growth. have again, look degree in have that between who business something want disciplined your being on million same headwinds growth FX, with And you some and fell of we to an we're distribution. in there's upon They and sense. measure we And investment. outlook, expertise, of and margins. of impact could do potential

end disclosures the our side. financials, on XX% roughly U.S. of you at year our expense look is If revenues XX% dollar and from

that the that, kind million impact you do that on see with the quarter EBITDA. of $X ratio, you If or on so in prior math, can was

impactful. And high in headwinds, we're the despite it's XX, still And low still so the yet, XX%. margins are

So I that find we're, continue disciplined said, to we're balance. really pleased right and we'll like the of be and kind

all taking it the Got questions. you understood. Appreciate

Thank you.

Thank you.

CIBC. with question of Please next go from ahead. the Todd Coupland line have We

give on? you the of talk just base, I Phil, in comments obviously financial the Can to morning, could. crypto risk to high to that's trading there's been Nuvei, I this some Hi. from market. drill everyone. going us base on of if customer sales been maybe wanted Good in And into any space? nature your the some any the just profile customer

Todd. Yes, great question,

resilient So fairly side. the have, we on we obviously, are Fiat

exposure evaluating no So financial well lending base, with through we or do not underwriting to conservative From you tokens there. risks. very customer comes that schemes, respect we our that have with largest capitalized. respect the to fancy and have exchanges are We're

we strong, an not capitalized. she's of feel are it's our enormous So group well And customers customers. fairly that

So one, in feel industry. fairly the that really insulated because it's with this we to tier respect time the backdrop we're the overall

about do And given do risk a management that when think this about or should think you view, customers? you something you of keep review in you it, you Is market? point not your from volatility the whether all

that. done have we and Certainly,

only I of all that are, at looked they sell. of are they and to showing them, not want what what but have support we what we could what So also

have on. hands we is So our very team

we we regulatory customers adhere So with And framework, do we them now. have it’s a that feel pretty right licensing, are anyways, we to but And have that it clearly that evaluated licensed. make just because have many not of we from they really their business. to sure the with good own

me for on gaming. question Last

You a your the opinion reasons online so on for the inflation gaming market slowdown. Thanks talked the about impact What's the lot. on far? and

at basis. not own to mind, seen what predominately our from right? in I XX%, Todd. really we've there's new debate things been portfolio But look have grown it's we We gaming Yes, a there, historical, business. keep historical two have a When we in from seen think changes

we're also that's entirely activity of lot in on with we respect are a to be what an up. what's can and in America. North happening. really, TAM pleased coming with other in And really markets early, We gaming new opening that Brazil still have although we're And see

on offset dramatically demand. is I But coming that's potential with new slowdown a inflation. markets there think up think pent with for board from I So

you. Thank

Todd. Thanks,

Thank you.

have Please next of of Kupferberg line question the Jason with from America. We go ahead. Bank

you. Good year risk. I about would soon it know start it's in some year it obviously But into next directionally de encourage versus detail second now thinking about that's expectations. could that. second growth talk forecasted to try Because to bleed of like the seem get half of Thanks, to revenue like headwinds year guys. your this investors too is just for to mid-teens XXXX, perhaps you does on to of largely so half year, next morning. seems take this Thank the being how manage XXXX the wanted

No, you, so. don't Thank think actually great question. Jason. We

at We over that from outgrown. have the looking biggest year-over-year quarters next something the it a assets. is that Certainly will perspective. And headwind is digital be few

doing the The part second both is is performance customers. new and in current with our ultimately what we're business

really were are much So a has certainly there. assets, present grown the unknowns, some will we would biggest and FX all will capital has be is be an very certainly most the ones. as impact quarters, FX blocks those over Obviously, the markets business those but quarters. digital next over those digital delta And the on assets few the be building we think next few outgrown. they The

it. had assumption flat revenue that I year. like And now? assuming look been asset know crypto/digital What's got you Okay, this for

transparency, publicized. in in mean, assets, has the activity, meaningfully have also fell volume went it no down when appreciate well trading. it's market the rapid digital I I decline don't we apart. Jason. it'll to way been all window out It and Yes, the

really the that guys I really volume portfolio, and still unpack for even is within what's that strong. amazing see volatility, we is, growth So think to you own with

unlocking is midterm XXXX, targets. pleased, we'll and think, back really into changed our we somewhat the but unprecedented. certainly, line. be coming So will part we in That's have And, long be haven't outgrow to we're painful, term why that something It's it. we'll

Okay, I missed thanks. that [ph],

Thank you.

Thank you.

question with go of Markets. Paul We next Capital Please RBC ahead. from have Treiber the line

Good Thanks very morning. much.

that in or customers, regards in volumes your outlook, your it end a lot [Indiscernible]. to outlook transactions of is effectively seems related change Just in the your to it your

and characterization? of fair speak outlook to related of is has that changed, if And first, those expansion either macro customers your environment? just then And So to for you in a new the customers for within wins? just light your that expectations can existing

questions. great Paul,

big capital and it growth Our as company, the there's business reach our remember vectors market two is continued for forward. driving a But there's geographic state. innovation

the with year growing represented last about our is new XX% first which The customers, existing customer and of growth, then wins.

why customers, innovation, for adding our that which by so wallet customer our is so two board business input the across expanding and we is to And share. continue remain is current driven as continue new important expand highly feature functionality as with the those relevant and we capabilities

some We also highlighted XD the processors on were risk to secure a one launch I've service So of But first launched Apple in we've Pay as Mexico. call. transactions. verification for the

that. of we to really development are e-commerce share double to prepared think customer center us And to be our new continuous year our and customers. our us bit so from When to and with our investments. mentioned I continue we've perspective. been important roughly from new allows And our this last for is But it growing involvement a for performance, little is business front global with And comes And back that pace wallet in we them. well we're remarks. where customers a making on their aligned

And executing very our interesting feel years It the teams in the to out two confident these takes who we on we the conversations team, abilities so to we're that. teams execute obviously, there, become dramatically have building the and expanded verticals, for a our But are we're who's active. out. between really of to year really

customer base? from expansion XXX% Yes. of we we're building current their performance? current customers? our of existing what own Are we own satisfied too, and customers the we'd two seen like combined our obviously, in seeing new So from we Have relying on the Absolutely. blocks we think those changes same. we're with Are But from a well Certainly. remain terms some their positioned. and or

That's really Thanks. helpful.

double wins the Just on clicking new in there. customer activity

please. inclination roll seen on any so. know, you light transformation you the or theme digital years of or transformation any initiatives in in that, have movement last conversions? there customers the as been if you the in digital for two a has macro change for of to you out sales been cycles Has come Yes, terms Your

the mentioned I little quarter. bit in a and first Yes,

So capabilities, our we've all really we hard connect, simple with have code accelerated remarks, our integrations. now offering on And as I one right integration also mentioned my in our of drive worked line prepared to customization capabilities.

the we first activations perspective. a in a new client client from from slowness of a quarter, in new saw So terms

yes, very that. unlock and especially still big client is all But momentum of first. XXXX. for coming quarter. we a ourselves Omni saw that our of There's that's accelerate from in We we verticals have pipeline and be seen still a now second that of more standpoint, timing the happening. will this in play obviously a From still integration year feel into digital perspective most relevant are a as comfortable

So that, are insulated roll verticals continue because of our as fairly and on to still it's the out. digital still investments digital they making and first

I'll you. on. pass Thank

Thank you.

Over have question-and-answer you, I'd Anthony the closing turn like to for you, of remarks. over call Goldstein, we sir. and session. gentlemen, And the the end Thank to back reached to ladies

very operator. Thanks everyone, joining. for much, thanks, And

a and me know, for As time. out we're we'll of And rest your follow always schedule day. available. again Enjoy your reach feel to obviously thanks the up. you to free Please

and very you Ladies much. this conference. Thank gentlemen, today's concludes

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