Nuvei Corporation

Nuvei reported Q4 2023 total volume growth of 53% year over year, revenue growth of 46%, and adjusted EBITDA growth of 40%. On a pro forma basis, Q4 revenue growth was 11%. Adjusted EBITDA margin was 37.3% in the quarter, up 100 basis points sequentially. For the full year, management said results were near the high end of the company’s range for revenue and above the range provided for total volume, revenue on a constant-currency basis, and adjusted EBITDA. For 2024, management guided to first-quarter revenue growth of 26% to 29% and said full-year adjusted EBITDA margin should be in the 36% to 37% range, with organic growth building through the year and exiting Q4 at 15% to 20% growth. Management also said global commerce should grow 20% to 24% in 2024.

Phil Fayer struck an upbeat but disciplined tone, emphasizing strong execution across channels and a deliberate approach to guidance. He said the company is investing in global commerce, B2B, government, and ISV, and sees the business as still in early innings as it broadens from a single-vertical focus to multiple verticals and geographies. He also framed Till as a small but strategically important capability acquisition that should help accelerate ISV engagement globally.

David Schwartz focused on margin mechanics, guidance conservatism, and the path to efficiency gains. He noted gross margin has been relatively stable over the last eight quarters, ranging from about 77% to 83%, and said the last two quarters were at 81.7%, with no expectation for significant variability going forward. On EBITDA, he said 2024 margin is expected to be 36% to 37%, with pressure from Till and the customer grow-over, partially offset by scale and upside from backend insourcing, Paya synergies, AI-driven efficiency work, and vendor consolidation; he also said Till should be breakeven by the end of 2024.

Analysts pressed on the cadence of growth through 2024, the role of the roughly $100 million pipeline, and how much of the new wins are already baked into guidance. Management said new customer implementations often take six months to a year to fully ramp, so much of the benefit lands in the following year, and that the guide assumes conservative activation timing. Questions also focused on gross margin, Till’s financial contribution, and whether margin expansion in 2024 would be organic; management said Till is the main drag on year-over-year margin but that organic margins should still expand, and they declined to quantify Till revenue contribution. Analysts also asked about Brazil gaming and acquisition strategy; management said gaming is a broader LatAm opportunity and that future M&A is not a priority versus debt repayment, though it will remain opportunistic.