Nuvei Sees TPV Up 68% in Q2 But Stock Drops a Third After Earning Report

Nuvei Corp. stock dropped 36% Wednesday (Aug. 9) after the Canadian FinTech released its second-quarter earnings showing a net income drop.

As of late afternoon, Nuvei was trading at $19.07 a share, down $10.85 from the previous day’s close.

The payments firm released its financial results Wednesday (Aug. 9) for the three and six months ended June 30, 2023. Total payments volume increased 68% to $50.6 billion from $30.1 billion, and revenue increased 45% to $307.0 million from $211.3 million.

Philip Fayer, Nuvei Chair and CEO, stated: “Nuvei delivered solid second quarter results with total volume and revenue increasing 68% and 45%, respectively, as we continued to advance our strategic initiatives and scale our platform.”

However, Nuvei reported an adjusted net income of $58 billion and an adjusted net income per share of 0.41. This quarterly report represents an earnings surprise of -13.33%, and a quarter ago, it was expected that earnings would be $0.45 per share when it actually produced earnings of $0.44, delivering a surprise of -2.22%, according to Zaks Equity Research.

During the earnings call with analysts, Chief Financial Officer David Schwartz said, “Results were driven by our focused investments and execution within our global commerce channel, and the inclusion of Playa for the fourth quarter. Ecommerce volume represented 88 percent of total volume in the period.”

Fayer highlighted Nuvei’s work during the second quarter ending June 30 in integrated payments:

“To support the varying business models of our integrated partners, we launched this quarter our fully managed PayFac as a Service offering, which includes onboarding, reporting fraud management, and configurable funding options with a comprehensive roadmap of additional functionality under development,” he said. “This quarter alone, we onboarded 2 very large ISVs, both processing over 1 billion in annual volume and servicing over 20,000 unique locations across North America. Based on our current capabilities, coupled with our investment roadmap, we believe we have the potential to be the partner of choice for mid-market integrated partners globally.”

Payment options for merchants have become more important since the pandemic, as consumers expect choices when it comes to checkout, and offering alternative payment methods could boost conversions, said  Nuvei Chief Revenue Officer Laura Miller in an interview with PYMNTS.