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MONTREAL, Nov. 03, 2022 (GLOBE NEWSWIRE) -- Nuvei Corporation (“Nuvei” or the “Company”) (Nasdaq: NVEI) (TSX: NVEI), the Canadian fintech company, today reported its financial results for the three and nine months ended September 30, 2022.
“We are pleased with our results for the quarter, which exceeded the financial outlook previously provided. Results were driven by higher volumes and wallet share expansion as reflected in our constant currency volume growth of 38%, new client wins, our continued investment in technology and product offerings, and our geographic expansion,” said Philip Fayer, Nuvei’s Chair and CEO.
“We’re executing on our strategic initiatives and with the momentum we’re experiencing in the business year-to-date through October, we are increasing certain metrics as well as reaffirming the outlook for the full year 2022. We are also reiterating our medium and long-term targets.”
Financial Highlights for the Three Months Ended September 30, 2022
Financial Highlights for the Nine Months Ended September 30, 2022
(1) Total volume and Total volume at constant currency do not represent revenue earned by the Company, but rather the total dollar value of transactions processed by merchants under contractual agreement with the Company. See “Non-IFRS and Other Financial Measures”.
(2) Adjusted EBITDA, Revenue at constant currency, Revenue growth at constant currency, Adjusted net income, Adjusted net income per diluted share and Adjusted EBITDA less capital expenditures are non-IFRS measures and non-IFRS ratios. These measures are not recognized measures under IFRS and do not have standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. See “Non-IFRS and Other Financial Measures”.
Operational Highlights
Financial Outlook(3)
For the three months ending December 31, 2022 and the fiscal year ending December 31, 2022, Nuvei anticipates Total volume(1), Revenue, Revenue in constant currency and Adjusted EBITDA(2) to be in the ranges below.
The financial outlook, including the various underlying assumptions, constitute forward-looking information within the meaning of applicable securities laws and is fully qualified and based on a number of assumptions and subject to a number of risks described under the headings “Forward-Looking Information” and “Financial Outlook and Growth Targets Assumptions” of this press release.
| Three months ending December 31, | Year ending December 31, | ||
| 2022 | 2022 | ||
| Forward-looking | Forward-looking | Forward-looking | |
| Previous | Revised | ||
| (In U.S. dollars) | $ | $ | $ |
| Total volume(1) (in billions) | 33 - 35 | 117 - 121 | 120 - 122 |
| Revenue (in millions) | 197 - 227 | 820 - 850 | 820 - 850 |
| Revenue at constant currency(2) (in millions) | 210 - 234 | 855 - 885 | 861 - 885 |
| Adjusted EBITDA(2) (in millions) | 75 - 84 | 335 - 350 | 341 - 350 |
Growth Targets
Nuvei’s medium-term(4) annual growth targets for Total volume(1) and revenue, as well as its long-term target for Adjusted EBITDA margin(2), are shown in the table below. These medium(4) and long-term(4) targets should not be considered as projections, forecasts or expected results but rather goals that we seek to achieve from the execution of our strategy over time, and at a further stage of business maturity, through geographic expansion, product innovation, growing wallet share with existing customers and new customer wins, as more fully described under the heading “Summary of Factors Affecting our Performance” of our most recent Management’s Discussion and Analysis of Financial Condition and Results of Operations. These growth targets, including the various underlying assumptions, constitute forward-looking information within the meaning of applicable securities laws and are fully qualified and based on a number of assumptions and subject to a number of risks described under the headings “Forward-Looking Information” and “Financial Outlook and Growth Targets Assumptions” of this press release. We will review and revise these growth targets as economic, market and regulatory environments change.
| Growth Targets | |
| Total volume(1) | 30%+ annual year-over-year growth in the medium-term(4) |
| Revenue | 30%+ annual year-over-year growth in the medium-term(4) |
| Adjusted EBITDA margin(2) | 50%+ over the long-term(4) |
(1) Total volume do not represent revenue earned by the Company, but rather the total dollar value of transactions processed by merchants under contractual agreement with the Company. See “Non-IFRS and Other Financial Measures” below.
(2) Revenue at constant currency, Revenue growth at constant currency, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Adjusted net income per diluted share and Adjusted EBITDA less capital expenditures are non-IFRS measures. See “Non-IFRS and Other Financial Measures”.
(3) Other than with respect to revenue, the Company only provides guidance on a non-IFRS basis. The Company does not provide a reconciliation of forward-looking revenue at constant currency (non-IFRS), Adjusted EBITDA (non-IFRS) to net income (loss) due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. In periods where significant acquisitions or divestitures are not expected, the Company believes it might have a basis for forecasting the IFRS equivalent for certain costs, such as employee benefits, commissions and depreciation and amortization. However, because other deductions such as share-based payments, net finance costs, gain (loss) on financial instruments carried at fair market value and current and deferred income taxes used to calculate projected net income (loss) can vary significantly based on actual events, the Company is not able to forecast on an IFRS basis with reasonable certainty all deductions needed in order to provide an IFRS calculation of projected net income (loss). The amount of these deductions may be material and, therefore, could result in projected IFRS net income (loss) being materially less than projected Adjusted EBITDA (non-IFRS). These statements represent forward-looking information and may represent a financial outlook, and actual results may vary. See the risk and assumptions described under the headings “Forward-looking information” and “Financial Outlook and Growth Targets Assumptions” of this press release.
(4) The Company defines “Medium-term” as between three and five years and “long-term” as five to seven years.
Conference Call Information
Nuvei will host a conference call to discuss its third quarter 2022 financial results today, Thursday, November 3, 2022 at 8:30 am ET. Hosting the call will be Philip Fayer, Chair and CEO, and David Schwartz, CFO.
The conference call can also be accessed live over the phone by dialing 844-826-3033 (US/Canada toll-free), or 412-317-5185 (international). A replay will be available one hour after the call and can be accessed by dialing 844-512-2921 (US/Canada toll-free), or 412-317-6671 (international); the conference ID is 10171461. The replay will be available through Tuesday, November 17, 2022.
About Nuvei
Nuvei (Nasdaq: NVEI) (TSX: NVEI) is the Canadian fintech company accelerating the business of clients around the world. Nuvei’s modular, flexible and scalable technology allows leading companies to accept next-gen payments, offer all payout options and benefit from card issuing, banking, risk and fraud management services. Connecting businesses to their customers in more than 200 markets, with local acquiring in 47 markets, 150 currencies and 586 alternative payment methods, Nuvei provides the technology and insights for customers and partners to succeed locally and globally with one integration.
For more information, visit: www.nuvei.com
Non-IFRS and Other Financial Measures
Nuvei’s unaudited condensed interim consolidated financial statements have been prepared in accordance with IFRS applicable to the preparation of interim financial statements, including International Accounting Standard (“IAS”) 34, Interim Financial Reporting, as issued by the International Accounting Standards Board. The information presented in this press release includes non-IFRS financial measures, non-IFRS financial ratios and supplementary financial measures, namely Adjusted EBITDA, Adjusted EBITDA margin, Revenue at constant currency, Revenue growth at constant currency, Organic Revenue at constant currency, Organic revenue growth at constant currency, Adjusted net income, Adjusted net income per basic share, Adjusted net income per diluted share, Adjusted EBITDA less capital expenditures, Total volume, Total volume at constant currency, Total organic volume at constant currency and eCommerce volume. These measures are not recognized measures under IFRS and do not have standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement IFRS measures by providing further understanding of our results of operations from our perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company’s financial statements reported under IFRS. These measures are used to provide investors with additional insight of our operating performance and thus highlight trends in Nuvei’s core business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors and other interested parties frequently use these non-IFRS and other financial measures in the evaluation of issuers. We also use these measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation. We believe these measures are important additional measures of our performance, primarily because they and similar measures are used widely among others in the payment technology industry as a means of evaluating a company’s underlying operating performance.
Non-IFRS Financial Measures
Revenue at constant currency: Revenue at constant currency means revenue adjusted for the impact of foreign currency exchange fluctuations. This measure helps provide insight on comparable revenue growth by removing the effect of changes in foreign currency exchange rates year-over-year. Foreign currency exchange impact in the current period is calculated using prior period quarterly average exchange rates applied to the current period foreign currency amounts.
Organic revenue at constant currency: Organic revenue at constant currency means revenue excluding the revenue attributable to acquired businesses for a period of 12 months following their acquisition and excluding revenue attributable to divested businesses, adjusted for the impact of foreign currency exchange fluctuations. Foreign currency exchange impact in the current period is calculated using prior period quarterly average exchange rates applied to the current period foreign currency amounts. This measure helps provide insight on organic and acquisition-related growth and presents useful information about comparable revenue growth.
Adjusted EBITDA: We use Adjusted EBITDA as a means to evaluate operating performance, by eliminating the impact of non-operational or non-cash items. Adjusted EBITDA is defined as net income (loss) before finance costs (recovery), finance income, depreciation and amortization, income tax expense, acquisition, integration and severance costs, share-based payments and related payroll taxes, loss (gain) on foreign currency exchange, and legal settlement and other.
Adjusted net income: We use Adjusted net income as an indicator of business performance and profitability with our current tax and capital structure. Adjusted net income is defined as net income (loss) before acquisition, integration and severance costs, share-based payments and related payroll taxes, loss (gain) on foreign currency exchange, amortization of acquisition-related intangible assets, and the related income tax expense or recovery for these items. Adjusted net income also excludes change in redemption value of liability-classified common and preferred shares, change in fair value of share repurchase liability and accelerated amortization of deferred transaction costs and legal settlement and other.
Adjusted EBITDA less capital expenditures: We use Adjusted EBITDA less capital expenditures (acquisition of intangible assets and property and equipment) as a supplementary indicator of our operating performance. In the third quarter of 2022, we retrospectively modified the label of this measure from "Free cash flow" in order to clearly reflect its composition.
Non-IFRS Financial Ratios
Revenue growth at constant currency: Revenue growth at constant currency means the year-over-year change in Revenue at constant currency divided by reported revenue in the prior period. We use Revenue growth at constant currency to provide better comparability of revenue trends year-over-year, without the impact of fluctuations in foreign currency exchange rates.
Organic revenue growth at constant currency: Organic revenue growth at constant currency means the year-over-year change in Organic revenue at constant currency divided by comparable Organic revenue in the prior period. We use Organic revenue growth at constant currency to provide better comparability of revenue trends year-over-year, without the impact of acquisitions, divestitures and fluctuations in foreign currency exchanges rates.
Adjusted EBITDA margin: Adjusted EBITDA margin means Adjusted EBITDA divided by revenue.
Adjusted net income per basic share and per diluted share: We use Adjusted net income per basic share and per diluted share as an indicator of performance and profitability of our business on a per share basis. Adjusted net income per basic share and per diluted share means Adjusted net income less net income attributable to non-controlling interest divided by the basic and diluted weighted average number of common shares outstanding for the period. The number of share-based awards used in the diluted weighted average number of common shares outstanding in the Adjusted net income per diluted share calculation is determined using the treasury stock method as permitted under IFRS.
Supplementary Financial Measures
We monitor the following key performance indicators to help us evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. Our key performance indicators may be calculated in a manner that differs from similar key performance indicators used by other companies.
Total volume and eCommerce volume: We believe Total volume and eCommerce volume are indicators of performance of our business. Total volume and similar measures are used widely among others in the payments industry as a means of evaluating a company’s performance. We define Total volume as the total dollar value of transactions processed in the period by customers under contractual agreement with us. eCommerce volume is the portion of Total volume for which the transaction did not occur at a physical location. Total volume and eCommerce volume do not represent revenue earned by us. Total volume includes acquiring volume, where we are in the flow of funds in the settlement transaction cycle, gateway/technology volume, where we provide our gateway/technology services but are not in the flow of funds in the settlement transaction cycle, as well as the total dollar value of transactions processed relating to APMs and payouts. Since our revenue is primarily sales volume and transaction-based, generated from merchants’ daily sales and through various fees for value-added services provided to our customers, fluctuations in Total volume will generally impact our revenue.
Total volume at constant currency: Total volume at constant currency is used as an indicator of performance of our business on a more comparable foreign currency exchange basis. Total volume at constant currency means Total volume adjusted for the impact of foreign currency exchange fluctuations. This measure helps provide better comparability of business trends year-over-year, without the impact of fluctuations in foreign currency exchange rates. Foreign currency exchange impact in the current period is calculated using prior period quarterly average exchange rates applied to the current period foreign currency amounts.
Total organic volume at constant currency: Total organic volume at constant currency is used as an indicator of performance of our business on a more comparable basis. This measure helps provide insight on organic and acquisition-related growth and presents useful information about comparable Total volume growth. Total organic volume at constant currency means Total volume excluding Total volume attributable to acquired businesses for a period of 12 months following their acquisition and excluding Total volume attributable to divested businesses, adjusted for the impact of foreign currency exchange fluctuations. Foreign currency exchange impact in the current period is calculated using prior period quarterly average exchange rates applied to the current period foreign currency amounts.
Forward-Looking Information
This press release contains “forward-looking information” within the meaning of applicable securities laws, including Nuvei's outlook on Total volume, Revenue, Revenue at constant currency and Adjusted EBITDA for the three months ending December 31, 2022 and the year ending December 31, 2022 as well as medium and long-term targets on Total volume, Revenue and Adjusted EBITDA margin. Forward-looking information is identified by the use of terms and phrases such as “may”, “would”, “should”, “could”, “expect”, “intend”, “estimate”, “anticipate”, “plan”, “foresee”, “believe”, or “continue”, the negative of these terms and similar terminology, including references to assumptions, although not all forward-looking information contains these terms and phrases. Particularly, information regarding our expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate, expectations regarding industry trends and the size and growth rates of addressable markets, our business plans and growth strategies, addressable market opportunity for our solutions, expectations regarding growth and cross-selling opportunities and intention to capture an increasing share of addressable markets, the costs and success of our sales and marketing efforts, intentions to expand existing relationships, further penetrate verticals, enter new geographical markets, expand into and further increase penetration of international markets, intentions to selectively pursue and successfully integrate acquisitions, and expected acquisition outcomes and benefits, future investments in our business and anticipated capital expenditures, our intention to continuously innovate, differentiate and enhance our platform and solutions, expected pace of ongoing legislation of regulated activities and industries, our competitive strengths and competitive position in our industry, expectations regarding our revenue, revenue mix and the revenue generation potential of our solutions, expectations regarding our margins and future profitability, our financial outlook and guidance as well as medium and long-term targets in various financial metrics, and the future impact of the COVID-19 pandemic is forward-looking information. The Russia and Ukraine conflict, including potential impacts of sanctions, may also heighten the impact of certain factors described herein.
In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding future events or circumstances. Forward-looking information is based on management's beliefs and assumptions and on information currently available to management, regarding, among other things, general economic conditions and the competitive environment within our industry. See also "Financial Outlook and Growth Targets Assumptions”.
Unless otherwise indicated, forward-looking information does not give effect to the potential impact of any mergers, acquisitions, divestitures or business combinations that may be announced or closed after the date hereof. Although the forward-looking information contained herein is based upon what we believe are reasonable assumptions, investors are cautioned against placing undue reliance on this information since actual results may vary from the forward-looking information. Nuvei’s financial outlook also constitutes financial outlook within meaning of applicable securities laws and is provided for the purposes of assisting the reader in understanding management's expectations regarding our financial performance and the reader is cautioned that it may not be appropriate for other purposes. Our medium and long-term growth targets serve as guideposts as we execute on our strategic priorities in the medium to long term and are provided for the purposes of assisting the reader in measuring progress toward management’s objectives, and the reader is cautioned that they may not be appropriate for other purposes.
Forward-looking information involves known and unknown risks and uncertainties, many of which are beyond our control, that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, the risk factors described in greater detail under “Risk Factors” of the Company’s annual information form filed on March 8, 2022 (the “AIF”). In particular, our financial outlook and medium and long-term targets are subject to risks and uncertainties related to:
Consequently, all of the forward-looking information contained herein is qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that we anticipate will be realized or, even if substantially realized, that they will have the expected consequences or effects on our business, financial condition or results of operation. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained herein represents our expectations as of the date hereof or as of the date it is otherwise stated to be made, as applicable, and is subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or amend such forward-looking information whether as a result of new information, future events or otherwise, except as may be required by applicable law.
Financial Outlook and Growth Targets Assumptions
The financial outlook for the remainder of 2022 assumes greater currency headwinds than previously expected from the stronger U.S. dollar; higher volatility and lower volume in digital assets and cryptocurrencies than previously anticipated; and the potential impact from higher inflation and rising interest rates which could increase pressure on consumer spending in the second half of the year. The updated financial outlook and specifically the Adjusted EBITDA, as well as the Adjusted EBITDA margin long-term growth target, reflect the Company’s strategy to accelerate its investment in distribution, marketing, innovation, and technology. When measured as a percentage of revenue, these expenses are expected to decrease as our investments in distribution, marketing, innovation, and technology normalize over time.
Our financial outlook and growth targets are based on a number of additional assumptions, including the following:
Contact:
Investors
Anthony Gerstein
Vice President, Head of Investor Relations
anthony.gerstein@nuvei.com
Statements of Profit or Loss and Comprehensive Income or Loss Data
(in thousands of U.S. dollars except for shares and per share amounts)
| Three months ended September 30 | Nine months ended September 30 | |||||||
| 2022 | 2021 | 2022 | 2021 | |||||
| $ | $ | $ | $ | |||||
| Revenue | 197,146 | 183,932 | 622,984 | 512,651 | ||||
| Cost of revenue | 38,363 | 38,332 | 121,259 | 98,640 | ||||
| Gross profit | 158,783 | 145,600 | 501,725 | 414,011 | ||||
| Selling, general and administrative expenses | 149,184 | 106,076 | 442,501 | 290,382 | ||||
| Operating profit | 9,599 | 39,524 | 59,224 | 123,629 | ||||
| Finance income | (4,131 | ) | (538 | ) | (6,427 | ) | (2,309 | ) |
| Finance cost | 7,859 | 5,131 | 13,627 | 11,878 | ||||
| Net finance cost | 3,728 | 4,593 | 7,200 | 9,569 | ||||
| Loss (gain) on foreign currency exchange | (12,528 | ) | 727 | (20,415 | ) | 1,973 | ||
| Income before income tax | 18,399 | 34,204 | 72,439 | 112,087 | ||||
| Income tax expense | 5,393 | 6,202 | 19,836 | 17,381 | ||||
| Net income | 13,006 | 28,002 | 52,603 | 94,706 | ||||
| Other comprehensive income (loss) | ||||||||
| Items that may be reclassified subsequently to profit and loss | ||||||||
| Foreign operations – foreign currency translation differences | (33,599 | ) | (9,572 | ) | (64,054 | ) | (20,111 | ) |
| Comprehensive income (loss) | (20,593 | ) | 18,430 | (11,451 | ) | 74,595 | ||
| Net income attributable to: | ||||||||
| Common shareholders of the Company | 11,710 | 26,841 | 48,692 | 91,485 | ||||
| Non-controlling interest | 1,296 | 1,161 | 3,911 | 3,221 | ||||
| 13,006 | 28,002 | 52,603 | 94,706 | |||||
| Comprehensive income (loss) attributable to: | ||||||||
| Common shareholders of the Company | (21,889 | ) | 17,269 | (15,362 | ) | 71,374 | ||
| Non-controlling interest | 1,296 | 1,161 | 3,911 | 3,221 | ||||
| (20,593 | ) | 18,430 | (11,451 | ) | 74,595 | |||
| Net income per share | ||||||||
| Net income per share attributable to common shareholders of the Company | ||||||||
| Basic | 0.08 | 0.19 | 0.34 | 0.66 | ||||
| Diluted | 0.08 | 0.19 | 0.34 | 0.64 | ||||
| Weighted average number of common shares outstanding | ||||||||
| Basic | 141,311,785 | 139,252,523 | 141,866,671 | 138,728,421 | ||||
| Diluted | 143,716,424 | 144,006,451 | 145,186,798 | 143,452,170 | ||||
Consolidated Statements of Financial Position Data
(in thousands of U.S. dollars)
| September 30, 2022 | December 31, 2021 | |||
| $ | $ | |||
| Assets | ||||
| Current assets | ||||
| Cash and cash equivalents | 753,612 | 748,576 | ||
| Trade and other receivables | 53,562 | 39,262 | ||
| Inventory | 1,239 | 1,277 | ||
| Prepaid expenses | 8,225 | 8,483 | ||
| Income taxes receivable | 2,757 | 3,702 | ||
| Current portion of advances to third parties | 924 | 3,104 | ||
| Current portion of contract assets | 1,359 | 1,354 | ||
| Total current assets before segregated funds | 821,678 | 805,758 | ||
| Segregated funds | 628,892 | 720,874 | ||
| Total current assets | 1,450,570 | 1,526,632 | ||
| Non-current assets | ||||
| Advances to third parties | 3,290 | 13,676 | ||
| Property and equipment | 28,066 | 18,856 | ||
| Intangible assets | 689,457 | 747,600 | ||
| Goodwill | 1,099,715 | 1,126,768 | ||
| Deferred tax assets | 13,221 | 13,036 | ||
| Contract assets | 980 | 1,091 | ||
| Processor deposits | 4,462 | 4,788 | ||
| Other non-current assets | 2,622 | 3,023 | ||
| Total Assets | 3,292,383 | 3,455,470 | ||
| Liabilities | ||||
| Current liabilities | ||||
| Trade and other payables | 110,772 | 101,848 | ||
| Income taxes payable | 15,796 | 13,478 | ||
| Current portion of loans and borrowings | 8,526 | 7,349 | ||
| Other current liabilities | 6,222 | 13,226 | ||
| Total current liabilities before due to merchants | 141,316 | 135,901 | ||
| Due to merchants | 628,892 | 720,874 | ||
| Total current liabilities | 770,208 | 856,775 | ||
| Non-current liabilities | ||||
| Loans and borrowings | 503,470 | 501,246 | ||
| Deferred tax liabilities | 58,634 | 71,100 | ||
| Other non-current liabilities | 2,664 | 4,509 | ||
| Total Liabilities | 1,334,976 | 1,433,630 | ||
| Equity | ||||
| Equity attributable to shareholders | ||||
| Share capital | 2,015,091 | 2,057,105 | ||
| Contributed surplus | 169,758 | 69,943 | ||
| Deficit | (164,274 | ) | (108,749 | ) |
| Accumulated other comprehensive loss | (72,615 | ) | (8,561 | ) |
| 1,947,960 | 2,009,738 | |||
| Non-controlling interest | 9,447 | 12,102 | ||
| Total Equity | 1,957,407 | 2,021,840 | ||
| Total Liabilities and Equity | 3,292,383 | 3,455,470 | ||
Consolidated Statements of Cash Flow Data
(in thousands of U.S. dollars)
| For the nine months ended September 30, | 2022 | 2021 | ||
| $ | $ | |||
| Cash flow from operating activities | ||||
| Net income | 52,603 | 94,706 | ||
| Adjustments for: | ||||
| Depreciation of property and equipment | 5,936 | 4,276 | ||
| Amortization of intangible assets | 73,822 | 60,614 | ||
| Amortization of contract assets | 1,425 | 1,585 | ||
| Share-based payments | 103,666 | 20,245 | ||
| Net finance cost | 7,200 | 9,569 | ||
| Loss (gain) on foreign currency exchange | (20,415 | ) | 1,973 | |
| Income tax expense | 19,836 | 17,381 | ||
| Changes in non-cash working capital items | (17,050 | ) | 15,269 | |
| Interest paid | (15,152 | ) | (9,559 | ) |
| Interest received | 4,577 | 117 | ||
| Income taxes paid (net) | (23,295 | ) | (14,291 | ) |
| 193,153 | 201,885 | |||
| Cash flow used in investing activities | ||||
| Business acquisitions, net of cash acquired | — | (387,654 | ) | |
| Payment of acquisition-related contingent consideration | (2,027 | ) | — | |
| Acquisition of property and equipment | (8,681 | ) | (3,564 | ) |
| Acquisition of intangible assets | (25,130 | ) | (13,963 | ) |
| Decrease in other non-current assets | 726 | 9,756 | ||
| Net decrease in advances to third parties | 1,884 | 7,924 | ||
| (33,228 | ) | (387,501 | ) | |
| Cash flow from (used in) financing activities | ||||
| Shares repurchased and cancelled | (109,158 | ) | — | |
| Transaction costs from issuance of shares | (903 | ) | (74 | ) |
| Proceeds from exercise of stock options | 1,474 | 6,499 | ||
| Repayment of loans and borrowings | (3,840 | ) | — | |
| Proceeds from loans and borrowings | — | 300,000 | ||
| Transaction costs related to loans and borrowings | — | (5,373 | ) | |
| Payment of lease liabilities | (2,674 | ) | (1,962 | ) |
| Purchase of non-controlling interest | (39,751 | ) | — | |
| Dividend paid by subsidiary to non-controlling interest | (260 | ) | (880 | ) |
| (155,112 | ) | 298,210 | ||
| Effect of movements in exchange rates on cash | 223 | (4,582 | ) | |
| Net increase in cash and cash equivalents | 5,036 | 108,012 | ||
| Cash and cash equivalents – Beginning of period | 748,576 | 180,722 | ||
| Cash and cash equivalents – End of period | 753,612 | 288,734 | ||
Reconciliation of Adjusted EBITDA and Adjusted EBITDA less capital expenditures to Net Income
(In thousands of U.S. dollars)
| Three months ended September 30 | Nine months ended September 30 | |||||||
| 2022 | 2021 | 2022 | 2021 | |||||
| $ | $ | $ | $ | |||||
| Net income | 13,006 | 28,002 | 52,603 | 94,706 | ||||
| Finance cost | 7,859 | 5,131 | 13,627 | 11,878 | ||||
| Finance income | (4,131 | ) | (538 | ) | (6,427 | ) | (2,309 | ) |
| Depreciation and amortization | 26,269 | 23,152 | 79,758 | 64,890 | ||||
| Income tax expense | 5,393 | 6,202 | 19,836 | 17,381 | ||||
| Acquisition, integration and severance costs(a) | 11,324 | 7,218 | 21,490 | 17,058 | ||||
| Share-based payments and related payroll taxes(b) | 33,819 | 11,187 | 103,763 | 20,245 | ||||
| Loss (gain) on foreign currency exchange | (12,528 | ) | 727 | (20,415 | ) | 1,973 | ||
| Legal settlement and other(c) | 190 | (138 | ) | 1,397 | (42 | ) | ||
| Adjusted EBITDA | 81,201 | 80,943 | 265,632 | 225,780 | ||||
| Acquisition of property and equipment, and intangible assets | (12,724 | ) | (6,402 | ) | (33,811 | ) | (17,527 | ) |
| Adjusted EBITDA less capital expenditures | 68,477 | 74,541 | 231,821 | 208,253 | ||||
Reconciliation of Adjusted net income and Adjusted net income per basic share and per diluted share to Net Income
(In thousands of U.S. dollars except for share and per share amounts)
| Three months ended September 30 | Nine months ended September 30 | |||||||
| 2022 | 2021 | 2022 | 2021 | |||||
| $ | $ | $ | $ | |||||
| Net income | 13,006 | 28,002 | 52,603 | 94,706 | ||||
| Change in fair value of share repurchase liability | — | — | (5,710 | ) | — | |||
| Amortization of acquisition-related intangible assets(a) | 22,427 | 20,042 | 68,904 | 56,151 | ||||
| Acquisition, integration and severance costs(b) | 11,324 | 7,218 | 21,490 | 17,058 | ||||
| Share-based payments and related payroll taxes(c) | 33,819 | 11,187 | 103,763 | 20,245 | ||||
| Loss (gain) on foreign currency exchange | (12,528 | ) | 727 | (20,415 | ) | 1,973 | ||
| Legal settlement and other(d) | 190 | (138 | ) | 1,397 | (42 | ) | ||
| Adjustments | 55,232 | 39,036 | 169,429 | 95,385 | ||||
| Income tax expense related to adjustments(e) | (5,803 | ) | (4,697 | ) | (15,882 | ) | (12,083 | ) |
| Adjusted net income | 62,435 | 62,341 | 206,150 | 178,008 | ||||
| Net income attributable to non-controlling interest | (1,296 | ) | (1,161 | ) | (3,911 | ) | (3,221 | ) |
| Adjusted net income attributable to the common shareholders of the Company | 61,139 | 61,180 | 202,239 | 174,787 | ||||
| Weighted average number of common shares outstanding | ||||||||
| Basic | 141,311,785 | 139,252,523 | 141,866,671 | 138,728,421 | ||||
| Diluted | 143,716,424 | 144,006,451 | 145,186,798 | 143,452,170 | ||||
| Adjusted net income per share attributable to common shareholders of the Company(f) | ||||||||
| Basic | 0.43 | 0.44 | 1.43 | 1.26 | ||||
| Diluted | 0.43 | 0.42 | 1.39 | 1.22 | ||||
Revenue by geography
The following table summarizes our revenue by geography based on the billing location of the merchant:
| Three months ended September 30 | Change | Nine months ended September 30 | Change | ||||||||||
| (In thousands of U.S. dollars, except for percentages) | 2022 | 2021 | 2022 | 2021 | |||||||||
| $ | $ | $ | % | $ | $ | $ | % | ||||||
| Revenue | |||||||||||||
| Europe, Middle East and Africa | 105,520 | 101,335 | 4,185 | 4 | % | 350,039 | 266,902 | 83,137 | 31 | % | |||
| North America | 83,087 | 76,020 | 7,067 | 9 | % | 247,170 | 225,028 | 22,142 | 10 | % | |||
| Latin America | 7,588 | 5,929 | 1,659 | 28 | % | 20,924 | 16,437 | 4,487 | 27 | % | |||
| Asia Pacific | 951 | 648 | 303 | 47 | % | 4,851 | 4,284 | 567 | 13 | % | |||
| 197,146 | 183,932 | 13,214 | 7 | % | 622,984 | 512,651 | 110,333 | 22 | % | ||||
Reconciliation of Revenue at Constant Currency and Revenue Growth at Constant Currency to Revenue
The following table reconciles Revenue to Revenue at constant currency and Revenue growth at constant currency for the period indicated:
| (In thousands of U.S. dollars except for percentages) | Three months ended September 30, 2022 | Three months ended September 30, 2021 | |||||||
| Revenue as reported | Foreign currency exchange impact on revenue | Revenue at constant currency | Revenue as reported | Revenue growth | Revenue growth at constant currency | ||||
| $ | $ | $ | $ | ||||||
| Revenue | 197,146 | 11,490 | 208,636 | 183,932 | 7 | % | 13 | % | |
| (In thousands of U.S. dollars except for percentages) | Nine months ended September 30, 2022 | Nine months ended September 30, 2021 | |||||||
| Revenue as reported | Foreign currency exchange impact on revenue | Revenue at constant currency | Revenue as reported | Revenue growth | Revenue growth at constant currency | ||||
| $ | $ | $ | $ | ||||||
| Revenue | 622,984 | 28,332 | 651,316 | 512,651 | 22 | % | 27 | % | |
Reconciliation of Organic revenue at constant currency and Organic revenue growth at constant currency to Revenue
The following table reconciles Revenue to Organic revenue at constant currency and Organic revenue growth at constant currency for the period indicated:
| (In thousands of U.S. dollars except for percentages) | Three months ended September 30, 2022 | Three months ended September 30, 2021 | ||||||||||||
| Revenue as reported | Revenue from acquisitions (a) | Revenue from divestitures | Foreign currency exchange impact on organic revenue | Organic revenue at constant currency | Revenue as reported | Revenue from divestitures | Comparable organic revenue | Revenue growth | Organic revenue growth at constant currency | |||||
| $ | $ | $ | $ | $ | $ | $ | ||||||||
| Revenue | 197,146 | (7,345 | ) | — | 10,999 | 200,800 | 183,932 | — | 183,932 | 7 | % | 9 | % | |
| (In thousands of U.S. dollars except for percentages) | Nine months ended September 30, 2022 | Nine months ended September 30, 2021 | ||||||||||||
| Revenue as reported | Revenue from acquisitions (a) | Revenue from divestitures | Foreign currency exchange impact on organic revenue | Organic revenue at constant currency | Revenue as reported | Revenue from divestitures | Comparable organic revenue | Revenue growth | Organic revenue growth at constant currency | |||||
| $ | $ | $ | $ | $ | $ | $ | ||||||||
| Revenue | 622,984 | (37,608 | ) | — | 26,712 | 612,088 | 512,651 | — | 512,651 | 22 | % | 19 | % | |