Shares of fintech company Nuvei Corp. (NASDAQ:NVEI) are cliff diving today after its second-quarter numbers and financial outlook failed to impress investors. Revenue rose 45.3% year-over-year to $307 million and was largely in line with estimates. EPS at $0.39, on the other hand, missed the cut by $0.05.
During the quarter, total volume rose by 68% to $50.6 billion with eCommerce making up nearly 88% of the total volume. At the same time, its adjusted net income dropped by 22% to $58.1 million.
Further, revenue from the Core global commerce segment, which is Nuvei’s mainstay, rose by 16% to $172 million. While revenue from the Emerging B2B, government & integrated payments segment rose by 13%, the contribution from its Legacy small and medium-sized businesses vertical dropped by 5%.
Amid longer lag times in new business and a recent relationship exit with a large customer, Nuvei now sees revenue for the full year 2023 landing between $1,170 million and $1,195 million (prior outlook between $1,225 million to $1,264 million). Adjusted EBITDA for the year is anticipated between $417 million and $432 million (prior outlook between $456 million and $477 million).
Overall, the Street has a $50.12 consensus price target on Nuvei alongside a Strong Buy consensus rating. This points to a massive 151% potential upside in the stock after today’s price erosion.
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