Nuvei Q4 Revenue Rises 83%, Profit Shrinks

Nuvei Corp (TSE: NVEI) (N ASDAQ: NVEI) reported higher revenues but lower profits in the fourth quarter of 2021.

Revenue & Earnings

Total volume increased 127%, from $13.9 billion to $31.5 billion. E-commerce accounted for 88% of the total volume.

Revenue for Q4 2021 came in at $211.9 million, an increase of 83% from a revenue of $115.9 million reported in Q3 2020.

The company reported a profit of $12.3 million ($0.07 per diluted share) in the quarter ended December 31, down from a profit of $22.6 million ($0.16 per diluted share) a year ago. Adjusted EBITDA increased 78% from $51.3 million to $91.5 million.

On an adjusted basis, Nuvei earned $70.6 million ($0.47 per diluted share) for its most recent quarter compared with an adjusted profit of $46.5 million ($0.33 per diluted share) in the prior-year period.

CEO Commentary

Nuvei chair and CEO Philip Fayer said, “Our team delivered an excellent quarter in which we exceeded our financial outlook, capping off an exceptional year. Our revenue increased 83% for the fourth quarter and 93% for the full year 2021. Total volume increased 127% to $31.5 billion for the quarter, and 121% to $95.6 billion for the year. We have made tremendous progress while investing in our flexible, scalable, modular technology platform to address the rapidly evolving global and local needs of our customers. As our addressable market increases, four pillars underpin our trajectory and remain central to our strategic priorities in driving the future of commerce: product innovation, growth with existing customers, attracting new customers, and acquisitions. These lay the foundation for us to build on our momentum which is reflected in the financial outlook we are providing today of revenue between $940 million and $980 million, representing year-over-year growth of 30% to 35%.”

Wall Street’s Take

On January 31, SMBC Nikko Securities analyst Andrew Bauch kept a Hold rating on NVEI and lowered its price target to C$80 (from C$90). This implies 29.7% upside potential.

Overall, NVEI scores a Strong Buy consensus rating among analysts based on eight Buys and one Hold. The average Nuvei price target of C$151.19 implies 145.2% upside potential to current levels.

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