The stock of fintech Nuvei fell by more than 10% on the Toronto Stock Exchange while the payment solutions provider’s forecasts disappointed investors.
“We took a cautious approach [dans nos prévisions] and we are excited about how the year has started,” said President and CEO Philip Fayer during a conference call Wednesday to discuss quarterly results.
“We took into account the key elements that we see in our business, what we see from consumers. [Nous voyons] a strong pipeline of activities, but we are cautious about the timing of activation, which provides better visibility for our shareholders. »
Mr Fayer said the year had started on a good note. “The months of January, February and the first days of March are very good,” he assures. The commitment is constant in all our markets. […] So far, I would say market conditions are stable. »
Analyst Kevin Krishnaratne of Scotiabank believes that the deceleration in royalties is greater than expected. “But there are several factors that could be at play, including channel mix, recent acquisitions and the acquisition of larger customers. »
Nuvei said it expects growth rates in its core revenues and adjusted margins before interest, taxes, depreciation and amortization (EBITDA) to improve over the course of the year.
For 2024, management anticipates adjusted EBITDA of between 480 million and 510 million.
During the conference, Mr. Fayer reiterated that the company’s priority was not to make acquisitions, but to pay down debt. “We will pay much more attention to debt repayment, but we remain opportunistic. »
The company completed the acquisition of Till Payments on January 5 for 36.9 million. The transaction was announced in November.
In the fourth quarter, the Montreal company posted net profit up 51% to 14.1 million. Revenues, for their part, climbed 46% to 321.5 million.
Adjusted diluted earnings per share were 47 cents. Before the results were released, analysts had expected a profit of 45 cents, according to financial data firm Refinitiv.
Nuvei shares fell $3.55, or 10.3%, to $30.78 on the Toronto Stock Exchange in late trading. The stock is almost 80% below its August 2021 high.