Nuvei’s B2B, ISV Revenues Jump 19%

Nuvei’s fourth-quarter results showed that the company is seeing double-digit growth in demand and momentum from enterprise clients, and in the B2B and ISV-related businesses.

The company’s shareholder letter detailed that total volumes were up 59% to $203 billion for 2023, and up 53% in the fourth quarter to $61.8 billion.

Nuvei also noted that its pro-forma revenue growth in the fourth quarter for its B2B, government and ISV channels were up 19% year on year, to $59 million, representing 18% of the consolidated top line recorded during the quarter.

Global Commerce-related revenues, tied to mid-market to large enterprises, saw pro-forma revenues grow by 12%. Small and medium-sized business (SMB)-related revenues increased 2% year on year to $82 million.

In looking ahead to the full year 2024 results, management has guided to total volume growth of 21% to 24%, and revenue growth of between 13% to 16%.

Nuvei shares were down 3% at the beginning of trading on Wednesday (March 6).

Momentum in the ISV Business

CEO Philip Fayer said on the conference call with analysts that, with a nod to questions about ISV and SMB momentum that “we’re investing in all of our channels … global commerce grew volume by 30+%.” He added that the recent acquisition of Till Payments will give Nuvei “a killer business with exciting capabilities with respect to engaging with ISVs and ISV partners around the world” with tools for instant merchant onboarding and APIs.  ISVs he said, are realizing that there are significant revenue opportunities to be gained from payments integrations as their models have transitioned from referral-based and commission-based setups.

The Till acquisition, he said, will be “growth accretive” for B2B, government and the ISV channel.

Asked on the call whether the guided growth rates as mentioned above are conservative in nature, the CEO noted that in signing new customer, “it takes six months to a year to see the full volume, just depending on how many countries and how long they have from an implementation standpoint.” Recent wins and partnerships with companies like Adobe and Microsoft are establishing footholds and broader presence in verticals as far-flung as retail and travel.

“We also have wallet share opportunities within our existing customers that are fairly significant,” Fayer said during the call. Elsewhere, the company has what Fayer said represents “size” on debit and routing capabilities. And in speaking about the roughly eight core verticals in which the company operates, and growth opportunities therein, “we’re still in the very early innings.”