Canadian fintech Nuvei has credited a large part of its Q2 45% revenue growth to the separation of three key categories; core global commerce, B2B payments and Small-and-Medium Businesses (SMB) initiatives.
Nuvei posted a revenue increase of $307m for Q2, a 45% increase year-over-year (YoY). Organic growth rose by 20% from $176m to $211m. Overall, the company’s revenue for the first half of the year has increased by 32% and organic growth 23% from the same period last year.
Total volume also increased significantly by 68% for Q2 from $30bn to $51bn with e-commerce attributing to much of this growth by 88%. This had led Nuvei to post strong volume figures for H1 of $93bn, a 57% increase YoY.
The publicly traded company – which saw investor Ryan Reynolds come on board this year – has attributed much of this year’s success to its global commerce channel growing 16% YoY to $172m.
A key focus for the group was tapping into growing marketplaces with it benefiting from a multitude of new collaborations, as it sought to bolster its global commerce channel. Nuvei specifically highlighted partnerships with Cart.com, RentCars and InDrive as it looked to emerge in ‘the fastest-growing global online marketplaces’.
Nuvei also highlighted its emerging B2B payment and SMB channels as key drivers of growth, with both posting 18% and 26% revenue growth for the quarter.
Philip Fayer, Nuvei Chair and CEO, shared that the scale-up of the business, alongside its channels and expansion efforts, has helped deliver the company solid quarter results.
He said: “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.
The quarter was notable for the number of new customer wins and growing pipeline across all regions, as well as wallet share expansion opportunities with existing customers, underscoring momentum in the business and laying the foundation for sustainable long-term growth.”
Nuvei’s expansion and consolidation into key markets were also highlighted as key to the company’s Q2 results.
The fintech’s North America revenue jumped 108% to $174m in Q2, with its European operations remaining ‘stable’ at $119m. The EMEA region also saw considerable growth, increasing its revenue by 77% to $12.3m as well as the APAC region, which increased 67% to $1.7m.
Other notable contributors to the quarter was the acquisition of Paya as Nuvei believes its estimated $21m cost synergies in the 24 month post-closing is progressing “according to plan”.
“While we see continued momentum in the business, we have updated our outlook for the remainder of the year,” added Fayer.
“Our strong cash generation profile provides us with ample flexibility. As a result, we intend to prioritise debt repayment and remain committed to returning excess capital to shareholders with the introduction of a quarterly cash dividend.”
Despite posting successful figures for H1, Nuvei has forecasted for the rest of the fiscal year for total revenue and total volume to be in the ranges below.
This is due to two key main factors. The first being the anticipated lag times in new business, with the second factor cited as the company’s recent decision to exit its relationship with a ‘large customer’.
Nuvei estimates it has approximately $100m in annualised revenue in various stages for H2, and expects organic revenue growth excluding digital assets and cryptocurrencies at constant currency to be between 16% and 20% for the rest of the fiscal year.
