Nuvei (US:NVEI)2021-08-10 17:50Financial Data and Key Metrics Changes - Total volume increased by 146% to $21.9 billion, with revenue growing by 114% to $178.2 million and adjusted EBITDA rising by 112% to $79.4 million [11][31][35] - Gross margin decreased to 81.4% from 83.7% due to acquisitions with higher costs [34] - Net income for the quarter was $38.9 million or $0.26 per diluted share, compared to $14 million or $0.15 per diluted share in Q2 2020 [36] Business Line Data and Key Metrics Changes - E-commerce volume constituted approximately 84% of total volume, slightly down from 87% in Q1 2021 due to seasonality [32] - Small business customer volume grew 24% sequentially over Q1 2021 [32] Market Data and Key Metrics Changes - North America total volume was $10.2 billion, up 160%; EMEA was $10.9 billion, up 135%; APAC and LATAM were each $0.4 billion, up 110% and 105% respectively [11] Company Strategy and Development Direction - The company focuses on geographic expansion, product innovation, and increasing wallet share with existing customers [12][20] - Strategic partnerships, such as with Plaid, enhance connectivity to financial institutions and improve customer payment experiences [17] - The company is preparing to expand North American payout capabilities with Visa Direct and Mastercard Send [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth momentum and raised the financial outlook for 2021, expecting total volume between $88 billion and $91 billion [26][41] - The company is in an investment phase, expecting adjusted EBITDA margins to expand to over 50% in the long term [45] Other Important Information - The company completed the acquisition of Mazooma and is preparing for the acquisition of Simplex, which is expected to enhance capabilities and customer wallet share [27][43] - The company has filed an application with NASDAQ for a dual listing to increase brand awareness and market liquidity [27][28] Q&A Session Summary Question: Medium-term growth perspective - Management clarified that the 30% growth target is annualized and reflects internal targets [50][51] Question: M&A pipeline and outperformance - Management noted a selective approach to M&A and highlighted strong performance driven by new product adoption and customer engagement [52][56] Question: Medium-term revenue outlook - Management confirmed that the medium-term revenue outlook is fully organic [63] Question: EBITDA margins long-term outlook - Management expects EBITDA margins in the low 40s in the near term, with potential expansion beyond 50% in the long term [66] Question: Trends across geographies and verticals - Management indicated that travel is a vertical with potential growth, but overall momentum remains strong [85] Question: Overall financial leverage - Management reported a strong cash position and low leverage, with expectations of approximately one time post-acquisitions [39][128]