Shares of Nuvei Corporation (NVEI 0.12%) jumped 19.8% on Wednesday after the Canada-based payment processor announced mixed quarterly results but also raised its full-year outlook.
On the former, Nuvei's third-quarter revenue grew 55% year over year to $304.9 million, translating to adjusted (non-GAAP) net income of $56.8 million, or $0.39 per share. Analysts, on average, were looking for slightly higher earnings of $0.41 per share, but on lower revenue of $303.7 million.
On Nuvei's soaring volume, solid organic growth
Delving deeper into Nuvei's results, total payment volume increased 72% to $48.2 billion, including a 20% increase in organic total volume at constant currency. Trending toward the bottom line, adjusted earnings before interest, taxes. depreciation, and amortization (EBITDA) grew 36% to $110.7 million, or 35.9% of revenue.
In the quarterly letter to shareholders, management credited its momentum to Nuvei's "modern and purpose-built technology" as well as its focus on partnering and growing with its customers by tailoring solutions to their needs.
What's next for Nuvei stock?
Looking ahead of the rest of the year, Nuvei also raised its outlook to call for full-year 2023 volume of $198 billion to $200 billion (up from $193 billion to $197 billion previously), revenue of $1.175 billion to $1.195 billion (up from $1.170 billion to $1.195 billion), and adjusted EBITDA of $427 million to $435 million (increased from $417 million to $432 million). According to management in its shareholder letter, these ranges assume "consistent execution into year end in driving margin expansion."
In the end, it seems the forward-looking market was more than willing to forgive Nuvei's slight revenue shortfall in the third quarter, and instead to focus on its freshly raised guidance. Nuvei stock simply responded in kind today, and I won't be the least bit surprised if it continues rallying from here.
